Annual report

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Content Contentpage Profile of Unipetrol Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Introduction by the Chairman of the Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Letter to Shareholders from the Chairman of the Board of Directors and Chief Executive Officer . . . . . . . 8 Expected development and strategy for 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Highlights of 2014 and 2015 up to the Annual Report approval date . . . . . . . . . . . . . . . . . . . . 11 Selected data of Unipetrol Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Corporate Social Responsibility (CSR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Unipetrol’s governing bodies and management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Managers (persons with management powers) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Statement of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Election rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Emoluments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Management report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Key financial and non-financial data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Downstream segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Retail segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Financial standing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Capital resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Key environmental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Structure of the Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Orlen Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Structure of the Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Ownership interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Changes in ownership interests of Unipetrol Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Main subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 UNIPETROL, a.s. Annual report 2014

UNIPETROL, a.s. Annual report 2014 Content Complementary information as required by the Act on business activities on the capital market . . . . . . 75 Legal regulations governing the issuer’s business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Major agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Information about the persons responsible for the Annual Report . . . . . . . . . . . . . . . . . . . . . . . . 79 Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Acquisition of own shares and share warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Final information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Information about the issuer’s registered capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Memorandum and Articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Objects of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Explanatory report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Appendix 1 – Articles of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Separate financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Separate statement of profit or loss and other comprehensive income . . . . . . . . . . . . . . . . . . . . . . 106 Separate statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Separate statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Separate statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Notes to the separate financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Consolidated financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 Consolidated statement of profit or loss and other comprehensive income . . . . . . . . . . . . . . . . . . . . . 165 Consolidated statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Consolidated statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Notes to the consolidated financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Significant post financial statements events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Report on relations between the controlling person and the controlled person and between the controlled person and other persons controlled by the same controlling person in 2014 . . . . . . . . 255 Glossary, financial terms and abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 Financial terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 Identification and contact information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280

UNIPETROL, a.s. Annual report 2014 4  Profile of Unipetrol Group Profile Unipetrol is the most significant refining and petrochemical group in the Czech Republic and one of the major players in Central Europe. Unipetrol Group employs more than 3,600 people and has been a part of the Orlen Group, the biggest Central European refining and petrochemical group, since 2005. UNIPETROL, a.s. is the parent company of Unipetrol Group. Mission We process natural resources to fuel the future. Values Values of Unipetrol Group support strict ethical principles. Their goal is to ensure long-term and permanent growth for the shareholders, to provide the best possible products and services to customers and to exercise best solutions for management and motivation. The values also support responsibility towards the environment. Responsibility: We respect our customers, shareholders, employees, the natural environment and the local communities. Progress: We are going forward with motivated and competent people in generating innovative ideas. People: We strive for leadership and openness, respecting people´s values in generating value for the company. Energy: Our energy powers success and necessary change. Dependability: We safely create valuable products and reliable services. Orlen Group. Fuelling the future. Unipetrol Group operates • 2 refineries with an annual conversion capacity of 5.9 million tons of crude oil, • 3 polyolefin units with an annual capacity of 595,000 tons, • steam cracker with an annual capacity of 544,000 tons, • 339 fuel filling stations, • broad range of transport services. Two core business segments • downstream (combining refining and petrochemicals), • retail distribution of fuels. Profile of Unipetrol Group

UNIPETROL, a .s . Annual report 2014 5 Profile of Unipetrol Group Main subsidiaries of Unipetrol Group As of 24 March 2015: UNIPETROL RPA, s.r.o. – production and sales refining and petrochemical products BENZINA, s.r.o. – operator of the largest network of filling stations in the Czech Republic PARAMO, a.s. – manufacturer of bitumen, lubricants and other refining products ČESKÁ RAFINÉRSKÁ, a.s. – the company operates refineries in Litvínov and Kralupy, currently the only two running refineries in the Czech Republic, with a total conversion capacity of 8.7 million tons of crude oil per year; the company is a joint venture (JV) of two shareholders: UNIPETROL, a .s . 67 .555% and ENI International B .V . 32 .445% . It was established in 1995 and started operating in the processing mode with no sales activities as a cost-plus entity in 2003. Code of Ethics The members of Unipetrol Group are aware of their responsibility to all their stakeholders – their employees, customers, shareholders, business and social partners, and the society . By means of this Code of Ethics they undertake to comply with clear principles forming a basic framework for the business and social conduct, and for the creation of the corporate culture in the companies of Unipetrol Group . In all spheres of activity Unipetrol Group abides by the applicable law, legal decrees, internal regulations and ethical values . The Group respects international, national and local regulations which are directly binding as well as those to which it commits voluntarily, such as the principles of corporate governance . These are primarily provisions that set out safety and environmental standards for facilities and their operation, describe the requirements for the quality of products and services, define conduct in markets, and regulate conduct and practices . Unipetrol Group regards respecting these standards and operating exclusively within their limits as its priority . Unipetrol employees’ conduct is always, and under all circumstances, legal, ethical, transparent, and compliant with the laws and Unipetrol’s corporate values . All procedures and activities are based on the best practices of corporate governance and operational excellence with emphasis on safety and environmental protection . All customers (external and internal) of Unipetrol Group have the right to receive the best quality products and services respecting ethical principles . The Code of Ethics is linked to the applicable laws of the Czech Republic and the company’s internal policies, and defines the basic rules of conduct for employees of Unipetrol Group . Application of corporate governance rules Unipetrol Group continuously strives to maintain long-term and transparent relationships with its shareholders and investors as part of its strategic objectives . Unipetrol Group management follows the Corporate Governance Code . The Corporate Governance Code is based on the OECD Principles, the provisions of which the Company satisfies in all material respects: http://www.oecd.org/daf/corporateaffairs/corporategovernanceprinciples/31557724.pdf An extraordinary general meeting of 10 December 2009 approved the modifications to the Articles of Association, which arose from the new Act on Auditors . The Articles were amended by the addition of a new mandatory body within the company – the Audit Committee with provisions on its remit and number of members, the Audit Committee members’ term of office, and the Audit Committee’s decision-making. The establishment of the Audit Committee entailed an extension of the competences of the company’s general meeting .

UNIPETROL, a.s. Annual report 2014 6 Profile of Unipetrol Group Historical milestones 1994 The formation of UNIPETROL, a.s. fulfilled one of the conceptual objectives of the privatization of the Czech petrochemical industry. Unipetrol was intended to combine selected Czech petrochemical firms in a group capable of competing with strong international groups. With 63% of the shares, the Czech State was the company’s majority shareholder, represented by the National Property Fund. Investment funds and minority shareholders owned the rest of the shares. Under the original concept, the State’s interest in the company was to be privatized. Unipetrol gradually integrated Kaučuk, Chemopetrol, Benzina, Paramo, Koramo, Česká rafinérská, Unipetrol Trade, Spolana and Unipetrol Rafinérie public companies. 2003 Česká rafinérská started to be operated as a processing refinery, or cost center of its processors. 2004 Agreement on the sale of 63% of Unipetrol shares was executed between PKN Orlen and the National Property Fund. 2005 Privatization process of Unipetrol was completed. The company consequently became a crucial part of one of the largest refinery and petrochemical groups in Central Europe, Orlen Group. 2012 Decision on the permanent shutdown of the urea production unit at Chempark Záluží in Litvínov as of 1 January 2013. The urea production unit was a part of the agro division of UNIPETROL RPA, s.r.o. subsidiary and its impact on the profitability of the whole Unipetrol Group was negative over the last couple of years while no reversion of this trend was expected. Decision on the permanent discontinuation of crude oil processing in Pardubice refinery Paramo. The decision was reached based on a comprehensive analysis of macroeconomic situation, including low refining margins compared with the period before the outbreak of financial and economic crisis in 2008, weak demand for diesel and refining overcapacity in Europe. Another key factor was very low conversion capacity below 1 million tons of crude oil and low complexity of Paramo refinery which had impacted the profitability of this Group’s asset negatively with no significant improvement expected in the various medium term scenarios analyzed. 2013 Unipetrol Group Strategy 2013-2017 was announced in June. This crucial document defined the key development directions for the next couple of years. Petrochemical segment is regarded as the key profit maker of the Group where the majority of planned capital investments will be directed. Unipetrol will overall focus on achieving significant efficiency improvements and Operational Excellence across all business segments. Execution of the Strategy should at the same time secure strong financial stability from both liquidity and financial leverage points of view. The agreement of crucial importance for Unipetrol was the 3-year contract for Russian crude oil (REBCO) deliveries with Rosneft, the first long-term contract which was signed on Unipetrol’s behalf by its majority shareholder PKN ORLEN in June. The agreement is valid from 1 July 2013 to 30 June 2016. Apart of the Strategy 2013-2017, the acquisition of 16.335% stake in Česká rafinérská from Shell Overseas Investments B.V. signed on 7 November 2013 and successfully completed on 31 January 2014 is worth mentioning. Unipetrol’s stake in Česká rafinérská has increased from 51.22% to 67.555% and Unipetrol has secured the Qualified Majority (QM) of votes with the 67.5% threshold. 2014 On 31 January 2014 the transaction of acquisition of 16.335% stake in Česká rafinérská from Shell Overseas Investments B.V. was successfully completed resulting in increase of Unipetrol’s stake in Česká rafinérská from 51.22% to 67.555%. Another key event was an execution of company’s pre-emptive right to purchase remaining 32.445% stake in Česká rafinérská from Eni International B.V. The acceptance of the offer was announced on 3 July 2014 and the acquisition was approved by the Czech Antimonopoly Office (ÚOHS) on 19 December 2014, however the decision is not yet effective. After the transaction closing Unipetrol will become the sole shareholder of Česká rafinérská with 100.00% stake. Last but not least, on 12 November 2014 strategic cooperation with the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická – VŠCHT) was signed, which further strengthened the long-term cooperation through the new Educational and Learning Centre VŠCHT – Unipetrol which represents a unique connection of the industrial sector and educational sector at the college level. Such intense cooperation will allow students to use the scientific and research facilities in the UniCRE research and education center in Chempark Záluží center with maximum possible interconnection between research and educational activities.

UNIPETROL, a .s . Annual report 2014 7 Introduction Ladies and Gentlemen, The year 2014 can be characterized as a very busy and quite successful period for Unipetrol Group. Recovery of the Czech economy, which began at the end of 2013, brought better market conditions which positively affected the company’s results. In addition to this Unipetrol managed to preserve a solid stable financial position with a safe level of financial gearing. The key event of 2014 was undoubtedly the completion of acquisition of additional 16.335% stake in Česká rafinérská from Shell Over- seas Investments B.V. in January followed by acceptation of the bona fide offer from Eni International B.V. announced in July based on which Unipetrol will acquire remaining 32.445% stake in Česká rafinérská. After completion of the transaction Unipetrol will become the sole shareholder. Gaining full control over Česká rafinérská fully in line with the Strategy announced in June 2013 and will further help Unipetrol to optimize the usage of the production assets of the Group, costs of products as well as energy consumption and fixed costs in the company. Looking at the retail segment, it also delivered targets set in the announced Strategy 2013-2017, with an increase of market share to the level of 15%. Unipetrol also achieved higher non-fuel sales thanks to shop and bistro concept development and well thought out and targeted marketing. And let me not forget all the Operational Excellence initiatives running through Unipetrol Group which helped to improve results over CZK 1 bn in 2014 compared to 2013. Looking at Unipetrol Group from the financial perspective, revenues reached CZK 124.2 bn in 2014. Operating profitability improved compared with 2013, and if not taken into account the one-off effect of gain on acquisition booked in the first quarter 2014 and impairment of refining assets booked in the second quarter 2014, EBITDA LIFO for 2014 amounted to CZK 6,637 m. This profound im- provement was due to better margins, both refining and petrochemical, higher sales volumes in both downstream and retail segments and, of course, thanks to internal improvements of operations and efficiency. It is worth mentioning that the petrochemical business, with EBITDA LIFO of CZK 5,402 m, accounted for the major part of the Group operating profit, which again proved that the integration of the refining and petrochemical business is the key competitive advantage of Unipetrol Group. All in all, despite overall challenging macro conditions especially in the refining sector, management preserved financial stability of the Group with the financial gearing ratio on the sound level of 9.7% at the end of 2014. Apart from fulfilling the Strategy and Operational Excellence initiatives, among the main achievements in 2014 I would like to point out the amendment to the contract with Transpetrol for crude oil transportation through Slovak branch of the Druzba Pipeline for the period 2015-2016 signed in June which strengthened the long-term cooperation and at the same time it maintained the transportation conditions of the year 2014. And, of course, I have to mention a conference on Czech-Polish relations which took place in Prague in January. Main findings of the ‘Poland-Czech Republic-Germany: Mutual Relations, Cooperation and Growth’ survey conducted by the Institute of Public Affairs in Warsaw were presented at the conference followed by panel discussion among representatives of Uni- petrol, PKN Orlen and other representatives from public life. The key message of this event which I strongly believe was that stronger business relations among our three countries could have a great effect on all of us, as well as on the EU’s economy in general. The Supervisory Board maintained its close cooperation and continuous support to the Board of Directors during the course of the whole year 2014, with a clear goal to secure further business development of Unipetrol Group, improve its competitive position in the Czech Republic and the whole Central European region, retain its sound financial profile and maintain strategic relations with our business partners and other stakeholders on the solid level. I would like to thank the Board of Directors for their immense efforts in the operational and strategic management of the company on a daily basis, constant execution of successful Operational Excellence Initiatives and preserving integrity among all stakeholders – shareholders, managers, employees, customers, suppliers, civic associations, inhabitants of the regions where the company has its operations, and governmental bodies. Sincerely, Dariusz Jacek Krawiec Chairman of the Supervisory Board UNIPETROL, a.s. Sincerely, Dariusz Jacek Krawiec Introduction by the Chairman of the Supervisory Board

UNIPETROL, a.s. Annual report 2014 8 Letter to Shareholders Ladies and Gentlemen, Dear Shareholders, The past year 2014 was again a period of several major events for Unipetrol Group. First and foremost, in January we successfully completed the acquisition of 16.335% stake in Česká rafinérská from Shell Overseas Investments B.V after which the Unipetrol’s stake on the Česká rafinérská’s share capital increased from 51.22% to 67.555%. This transaction, fully in line with Strategy announced in June 2013, affected the company’s performance for the rest of the year. In the middle of the year Unipetrol also accepted the bona fide offer from Eni to acquire the remaining stake in Česká rafinérská which still needs to be approved by the Czech Antimonopoly Office. After the completion of this transaction Unipetrol will become the sole shareholder. In 2014 Czech economy recovered from recession with annual GDP growth at 2.4% according to last available OECD statistical data, refining margins recovered in the second half of the year compared with 2013, petrochemical margins remained strong and the grey zone on the fuels market was significantly reduced due to legislative changes valid since October 2013. On the contrary, difficult macro conditions in refining sector especially during the first half of 2014, continuing surplus of refining production capacities and oversupply of refining products on the European market were the major indicators for recognizing an impairment allowance of CZK 4.7 bn. This one-off item caused the net loss of CZK 556 m for the full year 2014. Total capital investments (CAPEX) reached the level of CZK 2,007 m. With capital spent on the additional stake in Česká rafinérská, the investments reached the level of CZK 2,554 m. At the same time, despite challenging external macro environment especially in refining sector, we managed to maintain strong financial position with a financial gearing ratio of 9.7% at the end of 2014. Looking at our two business segments, i.e. downstream and retail, the downstream segment (combining refining and petrochemicals) was the key profit maker of the Group with the positive operating profit of CZK 2,422 m (after impairment) based on the EBITDA LIFO indicator. It was driven by better margins, both refining and petrochemical (with Unipetrol’s refining margin of 1.4 USD per barrel in 2014 compared to 1.0 USD per barrel in 2013 and combined petrochemical margin of 662 EUR per ton in 2014 versus 621 EUR per ton in 2013), better sales volumes in both businesses, and internal efficiency improvements within Operational Excellence initiatives. The retail segment recorded a significant improvement with a very good result in the fourth quarter of 2014 and overall achieved operating profit of 0.7 bn EBITDA LIFO. This result was mainly driven by better fuel margins due to reduction of the grey zone, higher fuel sales volumes and non-fuel sales thanks to the GDP growth and marketing activities of Benzina. From the operational performance point of view it was a very good year evidenced by refining utilization ratio at the level of 89% and steam cracker utilization ratio at the level of 90%. On the contrary, company faced a negative effect of two unplanned shutdowns which affected sales volumes. In May the steam cracker in Litvínov had to be shut down due to unexpected technical difficulties and in September the operations of the FCC unit at Kralupy refinery had to be stopped due to leakage on the FCC unit equipment. On the contrary the very challenging environment of the European refining industry remained in the first half of the year and Unipetrol was forced to face very tough competition from other regions. That is why many Operational Excellence initiatives were executed within Unipetrol Group and many others are still ongoing. Within the downstream segment, the refinery business mainly focused on wholesale optimization, production costs savings and feedstock purchases optimizations. Within the petrochemical business the optimizations focused on energy efficiency projects or polypropylene distribution, logistics and sale. Looking at the retail segment the main effort was directed into marketing activities and promotions to fight the tough competition on the Czech retail market, to gain new customers and also to increase non-fuel sales through Stop Cafe Bistro concept. Moreover Paramo subsidiary executed several initiatives to increase energy efficiency of production plants and marketing activities to fight the competition on the market. Thanks to these Operational Excellence initiatives across all our business the overall improvement was over CZK 1 bn compared to 2013. Letter to Shareholders from the Chairman of the Board of Directors and Chief Executive Officer

UNIPETROL, a .s . Annual report 2014 9 Additionally, Česká rafinérská signed an amendment to the contract with Transpetrol for crude oil transportation through Slovak branch of the Druzba Pipeline for the period 2015-2016 which strengthened the long-term cooperation and at the same time it maintained transportation conditions of the year 2014. Last but not least, I would like to mention that our long term strategic cooperation with the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická – VŠCHT) was significantly strengthened through the new Educational and Learning Centre VŠCHT – Unipetrol which represents a unique connection of the industrial sector and educational sector at the college level. Such intense cooperation will allow students to use the scientific and research facilities in the center with maximum possible interconnection between research and educational activities. As well as in previous year, I would like to thank our shareholders, business partners and other stakeholders for their trust in Unipetrol during 2014 which can be again characterized as a challenging period from the market environment perspective. Tremendous efforts across the whole Unipetrol Group on a daily basis were performed by all our employees, from ordinary workers at production units, through middle managers to the top management. A big thank you belongs also to them. And finally, I would like to thank the members of the Supervisory Board for their strong cooperation and support. I strongly believe that diligent work from all of us will further improve our financial performance in the following, undoubtedly challenging, but exciting period. Sincerely, Marek Świtajewski Chairman of the Board of Directors and Chief Executive Office UNIPETROL, a.s. Marek Świtajewski Letter to Shareholders

UNIPETROL, a.s. Annual report 2014 10 Expected development Unipetrol operations and results are heavily impacted by the global economic development. The recent trend of decreasing prices of crude oil visible since mid-2014 improves the situation of refineries to some extent by improving their margins and consumption of their products. The structural situation of the refinery business in Europe remains still challenging though. It still faces relatively weak demand and has to face increasing competition from other regions. Also the economic growth is not booming in Europe, which influences the demand for all of the Unipetrol Group products. Hence, taking into consideration the market situation, Unipetrol plans in general to follow directions defined as the key pillars of its Strategy published in 2013 with excellence in operations considered as the main guidepost for its work. Unipetrol’s main goal in the downstream segment is the completion of the consolidation of shares in Česká rafinérská under the ownership of Unipetrol Group by concluding the transaction with Eni, following the buy of stake from Shell early in 2014. The closure of such major development is the pivotal point for a number of other actions considered by the company. From the Unipetrol’s perspective the complete ownership of the refinery asset is the only solution to perform the full optimization of usage of the production assets of the Group and, as a consequence, to deliver cost optimized products to its clients in the Czech Republic and in the region. It will allow to decrease energy consumption and fixed costs in the company. Unipetrol will be also able to further improve the safety, technical and operational standards under which its production assets function. Company shall be close to having a consolidated, flexible production facility out of an integrated refinery and a petrochemical plant. Taking over the full responsibility for Česká rafinérská will also allow to perform further optimization of the Unipetrol Group structure. In terms of wholesale activities, potential additional volumes after closure of the transaction with Eni will naturally require further intensification of efforts in the sales area. Unipetrol Group will be strengthening its position on the domestic and export markets. Apart from that, the company will continue in the optimization of internal processes leading to the best possible product and service portfolio structure. Unipetrol’s management considers the logistics area and its optimization to have the key influence on value creation in the company’s value chain. The company pays close attention to the current market developments and reacts accordingly in order to assure the security of product delivery to its clients under any market scenario. The company’s operations are naturally influenced by the Czech and European legislative environment. Unipetrol supports the continuation of a positive trend in legislative changes that improve the quality of competition on the market, for example reducing the grey zone in fuel sales and decreasing of energy prices which however still remain a big burden for many industrial segments. In retail, Unipetrol’s Benzina remains the largest network in the Czech Republic, being a good basis for further growth aimed at the expanding domestic market share to 20% in 2017. The company is acting towards the increase of its market share by organic growth. Benzina is also a good platform to participate in further potential market consolidation. There are a number of improvement programs conducted in the company in terms of modern software solutions, operating model, and costs and sales effectiveness. The company expects to observe further positive effects of these actions in the coming periods. The company does also aim to remain the strongest fuel retail brand in the modern communication channels. The area of energy is considered to be of key interest for the operational and financial performance of the company in the coming years. It is an indispensable lever for company’s development and growth. Initiatives in this area will focus on ensuring of energy security for the company’s production plants with the lowest possible costs and energy efficiency in operations within the Group with careful monitoring and responding to situation on the energy market. Unipetrol is increasing its engagement in research and development activities which support its refining and petrochemical production. UniCRE, one of the most modern research centers in the country, connects research capacities with top educational activity and industrial application, focusing on research, development, innovation and education in the area of refining and petrochemical technologies, environmental technology and processes for efficient use of renewable sources. Unipetrol has signed a close cooperation agreement with the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická – VŠCHT). The cooperation includes an opening of UniCRE facilities for students enabling early practical contact with actual business challenges and environment, for example. Expected development and strategy for 2015

UNIPETROL, a.s. Annual report 2014 11 Highlights Highlights of 2014 15 January A conference on Czech – Polish relations took place in Prague, where the representatives of Unipetrol, PKN Orlen and other representatives of public life presented results of a study called “Poland – Czech Republic – Germany: Mutual Relations, Cooperation and Growth” which was compiled by the independent Institute of Public Affairs in Warsaw for PKN Orlen. 31 January The acquisition of 16.335% shareholding in Česká rafinérská from Shell Overseas Investments B.V. was completed. Based on the successful completion of the transaction Unipetrol’s stake in Česká rafinérská’s share capital has increased from 51.22% to 67.555%. Unipetrol RPA signed a product supply agreement with Shell Czech Republic a.s. based on which Unipetrol RPA will be supplying fuels to Shell Czech Republic a.s. for the period of up to five years. The Fulfilled Wishes Project which is traditionally organized before Christmas for Unipetrol Group employees raised CZK 109,070. While the employees donated half of this amount, the company matched their contribution. The raised money was donated to non- profit organizations in the Most region and in Pardubice and Prague. 14 February Anna Wydrzyńska was elected to the office of Chairman of the Board of Directors of Česká rafinérská. She also holds the position of Chief Executive Officer (CEO) from this date. 28 March Unipetrol RPA and PKN Orlen signed an annex to the crude oil supplies agreement, which provides a monthly increase of crude oil deliveries to Unipetrol by 50 thousand tons of REBCO crude oil. The annex is valid from 1 April 2014 to 30 June 2016 and secures additional Unipetrol’s needs for crude oil deliveries in relation with Unipetrol‘s ownership rights in Česká rafinérská. 28 April Artur Paździor resigned from his office of the Member of the Board of Directors of UNIPETROL, a.s. and also from his position of Chief Petrochemical Officer. 26 May Annual General Meeting of UNIPETROL, a.s. was held and approved financial statements of the company for 2013 and the Report of the Company’s Board of Directors on Business Activities of the Company and State of its Property for 2013. The Supervisory Board of UNIPETROL, a.s. elected Łukasz Piotrowski to office of Member of the Board of Directors of Unipetrol with effect as of 11 June 2014. He also holds the position of Chief Petrochemical Officer of UNIPETROL, a.s. from this date. 24 June Representatives of Unipetrol Group and the University of Chemistry and Technology in Prague (VŠCHT) signed a deed of gift for the year 2014. A mutual partnership in the field of chemistry popularization and promotion of education continues without interruption for thirteen years. In 2014, Unipetrol supported selected school projects with the amount of CZK 800,000. 25 June Česká rafinérská and Transpetrol signed a contract which represents an amendment to the contract for crude oil transportation through Slovak branch of the Druzba Pipeline for the period 2015-2016 and which strengthens the long-term cooperation and at the same time it maintains transportation conditions of year 2014. 3 July Unipetrol based on its pre-emptive right accepted the bona fide offer from Eni International B.V. based on which it will acquire 32.445% of Eni’s shares in Česká rafinérská with the acquisition price for the shares in the amount of EUR 30 million. 1 August The Board of Directors of UNIPETROL, a.s. approved a change in the competencies of the individual Board Members. Based on a signed resolution, wholesales and logistics of the refining and petrochemical products were shifted into the area of responsibilities of Piotr Wielowieyski. To the area supervised by Łukasz Piotrowski the responsibility for the entire production - both refining and petrochemical – was shifted. Martin Durčák became responsible for the development and energy area. The tasks pertaining to the areas of responsibilities of Mirosław Kastelik and Andrzej Kozłowski remained unchanged. Highlights of 2014 and 2015 up to the Annual Report approval date

UNIPETROL, a .s . Annual report 2014 12 Highlights 25 September Unipetrol again supported development of municipalities in the Ústí Region with financial gifts. A total of twelve municipalities and cities in the region shared CZK 1,140,000 . The money was in particular used for the renewal of the local infrastructure, cultural events and development of sporting activities for young people . 30 September Three companies of Unipetrol Group were given again a certificate of responsible approach to chemical business that is issued by the Association of Chemical Industry of the Czech Republic. The companies such as Unipetrol, Unipetrol Doprava and Unipetrol RPA can use the Responsible Care logo until October 2017. The company Unipetrol Services was given this certificate for the first time in 2014 and has been incorporated into the list of partners within the Responsible Care Partnership Program . 12 november Strategic cooperation with the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická – VŠCHT) was signed, which significantly strengthened the cooperation through the new Educational and Learning Centre VŠCHT – Unipetrol which represents a unique connection of the industrial sector and educational sector at the college level . Such intense cooperation will allow students to use the scientific and research facilities in the UniCRE research and education center in Chempark Záluží with maximum possible interconnection between research and educational activities . 19 December The Czech Antimonopoly Office (ÚOHS) approved the acquisition of 32.445% stake in Česká rafinérská from Eni International B.V., however the decision is not yet effective. After the transaction closing Unipetrol will become the sole shareholder of Česká rafinérská with 100 .00% stake . Highlights of 2015 up to Annual Report approval date 20 March 2015 UNIPETROL, a.s. repaid CZK 2 billion out of total CZK 4 billion mid-term loan received from its majority shareholder – PKN ORLEN S .A . (which holds 62 .99% of the Unipetrol shares) under a loan agreement entered into on 12 December 2013 .

UNIPETROL, a.s. Annual report 2014 13 Selected data 2009 2010 2011 2012 restated 2013 2014 Structure of assets and liabilities (in millions of CZK) Total assets 58,249 61,471 57,176 50,948 49,999 48,517 Non-current assets 38,061 36,351 31,918 26,171 25,665 22,173 Current assets 20,188 25,120 25,258 24,777 24,334 26,344 Equity 37,871 38,800 32,854 29,844 28,300 28,462 Liabilities 20,378 22,671 24,322 21,104 21,699 20,055 Structure of profit / loss (in millions of CZK)   Revenues 67,387 85,967 97,428 107,160 99,415 124,229 Gross profit 2,157 4,334 1,876 3,116 2,303 5,986 EBITDA 1) 2,778 5,174 (2,263) (1,012) 1,522 1,273 EBIT 2) (654) 1,678 (5,370) (3,819) (893) (997) Net finance costs (564) (492) (574) (553) (450) (365) Profit / loss before tax (1,218) 1,186 (5,944) (4,372) (1,343) (1,362) Net profit / loss (840) 937 (5,914) (3,098) (1,396) (556) Earnings / loss per share (CZK) (4.63) 5.17 (32,61) (17.08) (7.70) (3.07) Structure of cash flows (in millions of CZK) Operating cash flow 3,881 4,656 413 1,975 300 737 Investing cash flow (1,812) (937) (3,024) (921) (1,688) (1,918) Financing cash flow (1,836) (144) 327 (447) (583) 1,728 Total cash flow 234 3,575 (2,284) 607 (1,971) 547 Operating indicators (in thousand tons)   Crude oil throughput 3) 4,110 4,352 3,942 3,927 3,607 5,130 Sales of refining products, including retail distribution of fuels (Benzina filling stations network) 4) 3,409 3,548 3,438 3,283 3,151 4,268 Sales of petrochemical products 5) 1,825 1,805 1,668 1,771 1,578 1,773 1) EBITDA – Earnings before depreciation and amortization, financial result and taxes 2) EBIT – Earnings before financial result and taxes. 3) Crude oil throughput represents total volumes of crude oil processed in Unipetrol’s refineries. 4) Sales of refining products, including retail distribution of fuels (Benzina filling stations network), represent total external sales volumes of refining products outside Unipetrol Group. These are primarily motors fuels, gasoline and diesel. 5) Sales of petrochemical products represent total external sales volumes of refining products outside Unipetrol Group. Selected data of Unipetrol Group

Structure of the Group UNIPETROL, a .s . Annual report 2014 14 UNIPETROL, a .s . 14 Structure of the Group Annual report 2014 “We respect our customers, shareholders, employees, the natural environment and the local communities.” RESPOnSIBILIty RESPOnSIBILIty RESPOnSIBILIty RESPOnSIBILIty RESPOnSIBILIty

UNIPETROL, a.s. Annual report 2014 15 Corporate Social Responsibility Unipetrol is a company that bears responsibility for its conduct and supports activities that have a positive impact on the environment, the municipalities in its vicinity and other groups involved. This is why it carries out its corporate social responsibilities in the regions and municipalities where it operates its activities. With regard to its position as a leader in the chemical industry, it helps young talents and supports education in areas that help the development and evolution of the chemical sector in the Czech Republic. Unipetrol Group tirelessly works with and supports many projects and institutions in areas that belong to the four primary pillars of the social responsibility strategy: • Education • Volunteering • Donation • Environmental protection Education Unipetrol concentrates on development in the area of science and education particularly through a strategic partnership with the University of Chemistry and Technology in Prague (VŠCHT). This partnership in the field of popularizing chemistry and supporting education has thus existed without interruption for thirteen years. Last year, Unipetrol supported selected projects at the university with CZK 800,000. These were primarily traditional educational projects that met with a very favourable response from students and teachers in previous years. In particular, there is the Summer and Winter School for secondary and elementary school teachers, the Hour of Modern Chemistry project in the Ústí region, and rewards for the best diploma theses from VŠCHT students. Within cooperation, Unipetrol focuses on young talents, offering them the possibility of gaining experience through work and study programs, internships and research. Last year, Unipetrol also continued its partnership in the national “Golden Amos” project, which rewards the most popular teachers in the Czech Republic, elected by means of a vote among students. Cooperation with Unipetrol also includes the announcement of a new nation-wide category called “Chemistry Teacher of the Year.” Volunteering Unipetrol is a responsible neighbour who takes care of the environment and also cooperates intensively with social organizations in the regions where it operates. In accordance with this philosophy, the company involves its employees in Volunteer Days which are organized every year. These employees devote their normal working day to non-profit organizations, for which they perform work and projects which the organization cannot arrange itself due to a lack of resources. On the occasion of celebrating Earth Day last year, 71 volunteers from Unipetrol and Česká rafinérská went to clean up the mess around the Nechranice Dam and in the Krušné Mountains. In total, they worked more than 500 hours, managed to fill several hundred bags with garbage, and helped clear out broken trees or liquidate fallen branches and trees. The number of Unipetrol and Česká rafinérská employees who participate in volunteering increases every year. Donations The Fulfilled Dreams fundraiser organized by Unipetrol Group for its employees every year brought in more than CZK 236,000 in 2014. Half of this amount was donated by the employees and the company then matched the contribution. The collected money was shared by the children’s home in Most and the Early Care Centre in Pardubice. The children’s home cares for children who for various reasons cannot grow up in their own family environment. The contribution was used mainly to purchase a laptop to control the interactive board, but also to buy tables, chairs, gymnastic balls and yoga mats. The Early Care Centre in Pardubice aims to support the development of children with physical, mental or combined handicaps from birth until the age of 7, and also provides support to their families. Unipetrol also helps develop other minor charity projects that support regional non-profit organizations. Another pillar of the social responsibility strategy is regional sponsoring. In 2014, the subsidiary UNIPETROL RPA, s.r.o. contributed a total of CZK 1,140,000 to 12 cities and municipalities in the Ústí region. The money was used mainly to renew local infrastructure, for cultural events and the development of sporting activities for youths. Corporate Social Responsibility (CSR)

UNIPETROL, a .s . Annual report 2014 16 The City of Most used the total donation of CZK 300,000 to implement 10 projects, including the support of its efforts to win the title of “European City of Sport.” Litvínov used the donation of CZK 150,000 to support education, specifically the equipping of school and preschool yards with equipment for playing. Within the framework of support, the municipality of Meziboří obtained CZK 150,000 for the local children’s sports teams. Český Jiřetín used the donation to reconstruct its sports field, as did the municipality of Brandov . Lom used CZK 60,000 to repair the roof over the stands at the sports grounds . A significant part of the projects supported by Unipetrol consists of the building of local infrastructure and social projects. The town of Hora Svaté Kateřiny, for instance, contributed the donated CZK 60,000 to constructing public lighting. In 2014, Benzina took part in the Konto Bariéry (Barriers Account) campaign “Help with Humour”. From September 2014, drivers at Benzina filling stations were able to fill up, and also buy a clown nose to support handicapped individuals. A total of 37,501 clown noses were sold at filling station tills, which represents almost two third of all the noses sold during the campaign. Thanks to its customers, Benzina could send a sum of CZK 1,875,050 to handicapped people, by far the most of all the seven partners. Environment Within the framework of long-term association with the Czech Fishing Union, Unipetrol releases a new batch of fish into the Bílina River every year to support a clean environment along the riverbed . The annual contribution to this activity is CZK 50,000 . The program continued in 2014. During the spring and autumn fish planting of the river, 600 kilograms of fish were released into nature. Other environmental activities of Unipetrol in 2014 include the financing of a study, the aim of which was to map the occurrence of river otter near the Bílina watercourse. The study also included a proposal of measures to increase the population of this species near the river . Sport sponsorship The support of the hockey club in Litvínov by Unipetrol’s subsidiary BENZINA, s.r.o. as the main partner has an extensive tradition. As the owner of the club, Unipetrol has provided long-term support not only to the professional team, but also to the youth categories and the hockey development of children and teenagers in Litvínov and the area. The entire club is an important element of the regional sports infrastructure . In 2014, the club entered the 56th season of the domestic major league . Unipetrol also has a long tradition of partnership with automobile racing, in particular through its subsidiary PARAMO, a .s . – Pardubice Golden Helmet, Rallye Šumava Klatovy, Rallye Bohemia, Rallye Český Krumlov. Other sponsoring activities of PARAMO, a.s. include support of the HC ČSOB Pardubice hockey club and the TJ Sokol Pardubice floorball team. In 2014, the subsidiary BENZINA, s.r.o also became a partner to the traditional Barum Czech Rallye Zlín automobile race. Corporate Social Responsibility

UNIPETROL, a .s . Annual report 2014 17 MAREK ŚWItAJEWSKI Born on 16 November 1969; Member of the Board of Directors since 25 June 2012 (current term of  office will expire on 25 June 2015), Vice-Chairman of the Board of Directors since 12 Septem- ber 2012, Chairman of the Board since 8 April 2013; University education, 21 years of experience; He is currently the compa- ny’s Chief Executive Officer (CEO) as well. Career overview: Over the preceding years, he has wor- ked as a technical director of TP Emitel (12/2006 – 10/2010), CEO of Global Con- tact & Institute of Training and Market Re- searches (3/2006 – 10/2007) and Nortel Networks (12/2004 – 2/2006). Within Uni- petrol Group he worked as an Executive at Unipetrol RPA (2010 – 2011) and he was appointed as the Chairman of the Board of Directors and CEO of Česká rafinérská (2011 – 2012). He  does not hold any of these positions any longer . Education: Merchant Marine Academy in Gdynia, Master’s Degree in Radio Telecommunica- tion and Electronic . PIOtR JAn WIELOWIEySKI Born on 17 October 1954; Member of the Board of Directors sin- ce 28 March 2012 (current term of offi- ce will expire on 28 March 2015), Vice- Chairman of the Board of Directors since 28 March 2012; University education, 36 years of experi- ence; He is currently also responsible for the Wholesales and Logistics of the refining and petrochemical products . Career overview: Over the preceding years, he has worked as a member of the Board of Directors of Libella Sp. z o.o. (2008-2012), CFO and a member of Investment Committee of Profound Ventures Spółka z o.o. (2011), and a member of the Board of Directors of Foksal NFI S.A. (2004 – 2007). He does notholdanyofthesepositionsanylonger . Education: University of Warsaw, Master’s Degree in Economics . MIROSŁAW KAStELIK Born on 23 February 1968; Member of the Board of Directors since 6 February 2013 (current term of office will expire on 6 February 2016); University education, 22 years of experi- ence; He is currently the company’s Chief Finan- cial Officer (CFO) as well. Career overview: Over the preceding years, he worked as the Chief Financial Officer and Chief Ac- countant at Isuzu Motors Polska Sp. z o.o. (1998 – 2009), as the Chief Financial Officer and Vice-President at Tele-Fonika Kable Sp. z o.o. (2009 – 2010) and as the Chief Financial Officer at Boryszew S.A., Maflow Branch (2011 – 2013). He does not hold any of these positions any longer . Education: University of Illinois at Urbana-Cham- paign – Warsaw University, Executive MBA Katowice University of Economics, Post- Graduate Studies in Accounting . Cracow University of Economics, Master Degree in Economics of Real Estate and Investments . Unipetrol’s governing bodies The Board of Directors is the company’s governing body, managing its activity and representing it. Pursuant to the Articles of Asso- ciation as in force as of 1 January 2015, the Board of Directors has seven members and the members are elected for a three-year term of office. The Board of Directors elects from its ranks the Chairman and two Vice-Chairmen who each represent the Chairman severally and fully in the execution of his competences . the company’s Board of Directors as of 24 March 2015 Unipetrol’s governing bodies and management Board of Directors

UNIPETROL, a .s . Annual report 2014 18 Unipetrol’s governing bodies AnDRZEJ JERZy KOZŁOWSKI Born on 13 January 1975; Member of the Board of Directors since 9 April 2013 (current term of office will expire on 9 April 2016); University education, 18 years of experi- ence; He is currently assigned with responsibili- ties in the area of Strategy and M&A . Since February 2009, Mr. Kozlowski served as Executive Director for Strategy and Project Portfolio Management at PKN ORLEN. He is also a Chairman of the Su- pervisory Board of ORLEN Upstream Sp . z o.o. (since February 2010) and Member of the Board of Directors of TriOil Resou- rces Ltd . in Canada . Career overview: Prior to his current role, he worked as Di- rector for Strategy, Project Management and Regulatory Relations at TP Emitel, Di- rector at Prokom S .A ., Manager in charge of strategic projects for the Board of Di- rectors at Telekomunikacja Polska S .A ., and consultant and project manager for Avantis Consulting Group in Poland and American Management Systems in Por- tugal, Germany and USA . Between 2009 and 2010, he was a Mem- ber of the Supervisory Board of AB OR- LEN Lietuva . Education: A. J. Kozłowski graduated from the WSB National-Louis University (BA program) and from the Maastricht School of Man- agement (MBA program). MARtIn DURČÁK Born on 25 November 1966; Member of the Board of Directors since 6 October 2006 (reelected to office on 5 December 2012; current term of office will expire on 5 December 2015); University education, 23 years of experi- ence; He is currently responsible for the Ener- gy and Development area and also the Member of the Board of Directors of HC VERVA Litvínov, a.s. Career overview: Over the preceding years, he held the position of Member of the Board of Di- rectors and CEO at ARAL ČR a.s. (2004– 2006). He held the position of the exe- cutive of BENZINA, s .r .o . until 31 August 2011. He does not hold this position any longer . Before that, he worked as Project Man- ager at ARAL ČR and as Controlling Di- rector at ARAL ČR and Aral Poland. Education: Technical University in Ostrava, PhD stu- dy of Marketing/Controlling. ŁUKASZ PIOtROWSKI Born on 11 May 1978; Member of the Board of Directors since 11 June 2014 (current term of office will expire on 11 June 2017); University education, 11 years of experi- ence; He is currently responsible for the Refi- ning and Petrochemical Production and he is also a Chief Executive of UNIPETROL RPA, s .r .o . Career overview: Over the preceding years, he held the position of Chief Operation Officer and Member of the Board of Directors at Ax- tone Sp. z o.o. (2009-2011), General Af- fairs Director and Member of the Board of Directors at ČESKÁ RAFINÉRSKÁ, a.s. (2011-2012), Production and Mainte- nance Director and Vice-Chairman of the Board of Directors at ČESKÁ RAFINÉRSKÁ, a.s. (2013-2014), Vice-Chairman of the Board of Directors and Chief Operations Officer at ČESKÁ RAFINÉRSKÁ, a.s. (2014). He does not hold any of these positions any longer . Education: Poznan University of Management and Banking - Master’s Degree in Logistics, Materials, and Supply Chain Manage- ment and in Finance and Financial Man- agement Services . Program Management, ICMI – Harvard Business School . Warsaw Polytechnic – Chemical and Pro- cess Engineering .

UNIPETROL, a.s. Annual report 2014 19 Board of Directors – Changes in 2014 and in 2015 up to the Annual Report approval date As of 1 January 2014, members of the Board of Directors were Messrs. Marek Świtajewski – Chairman, Piotr Wielowieyski – Vice Chairman, Martin Durčák, Mirosław Kastelik, Andrzej Kozłowski, Artur Paździor – members. The Supervisory Board at its meeting on 29 April 2014 resolved the resignation of Mr. Artur Paździor from his office of a Member of the Board of Directors with the effect as of 30 April 2014. The Supervisory Board at its meeting on 26 May 2014 elected Mr. Łukasz Piotrowski to office of Member of the Board of Directors with the effect as of 11 June 2014. Thus, as of 31 December 2014, the Board of Directors included Messrs. Marek Świtajewski as the Chairman, Piotr Wielowieyski as the Vice-Chairman, Martin Durčák, Mirosław Kastelik, Andrzej Kozłowski and Łukasz Piotrowski as members. There were no changes in the composition of the Board of DIrectors in 2015 up to the date of approval of the Annual Report on 24 March 2015. The Supervisory Board supervises the activities of the Board of Directors and activities of the company. It supervises the performance of the Board of Directors’ competences and the running of the company’s business. In accordance with the Articles of Association as in force as of 1 January 2015, the Supervisory Board had 9 members elected for a three-year term of office. The Supervisory Board elects from its ranks its Chairman and two Vice-Chairmen, each representing the Chairman of the Supervisory Board severally and fully in the execution of his competences. Supervisory Board as of 24 March 2015 DARIUSZ JACEK KRAWIEC Born on 23 September 1967; Member of the Supervisory Board (since 26 June 2008, current term of office will expire on 1 July 2017); Chairman of the Supervisory Board (since 11 December 2008, reelected to office of Chairman of the Supervisory Board on 3 July 2014); University education, 23 years of professional experience; Outside Unipetrol Group he is currently a Member and the Chairman of the Board of Directors of PKN ORLEN S.A. From 2006 to 2008, he served as President of the Management Board of Action S.A. From 2003 to 2004, he was managing director for Sindicatum Ltd. London. In 2002, he became President of the Management Board of Elektrim S.A. From 1998 to 2002 he served as President of the Management Board and CEO of Impexmetal S.A. In 1997, he was with the UK branch of Japanese investment bank Nomura plc headquartered in London where he was responsible for the Polish market. In the years 1992 – 1997, he worked for Bank PEKAO S.A., Ernst & Young S.A. and PriceWaterhouse Sp. z o.o. He does not hold any of these positions any longer. He has chaired the supervisory boards of Huta Aluminium Konin S.A., Metalexfrance S.A. of Paris, S and I S.A. of Lausanne, cemarket. com S.A. He has been a member of the supervisory boards of Impexmetal S.A., Elektrim S.A., PTC Sp. z o.o., Elektrim Telekomunikacja Sp. z o.o., Elektrim Magadex S.A., Elektrim Volt S.A. and PTE AIG and Polkomtel S.A. Graduated from the Poznan University of Economics, specialization in Economics and Organization of the Foreign Trade. SŁAWOMIR ROBERT JĘDRZEJCZYK Born on 5 May 1969; Member of the Supervisory Board (since 26 June 2008, current term of office will expire on 1 July 2017); Vice-Chairman of the Supervisory Board (since 11 December 2008 till 30 June 2011, reelected to office of the vice-chairman of the supervisory board on 3 July 2014); University education, 21 years of professional experience; Outside Unipetrol Group he is currently a Member and Vice-Chairman of the Board of Directors at PKN Orlen S.A. and since 1 January 2014 he is a Member of the Board of Directors of TriOil Resources Ltd., Canada. Since 7 June 2008, he has been a Member of the Board of Directors of PKN ORLEN, and in September 2008 he was appointed a Vice-President of the Board of Directors of PKN ORLEN and Chief Financial Officer. From 2005 to June 2008, he served as a President of the Management Board and CEO of Telekomunikacja Polska S.A. From 2003 to 2005 he headed the Controlling Division at the Telekomunikacja Polska S.A., he was a Member of the Management Board and CFO at Impexmetal S.A and he also worked in the Audit and Business Advisory Department of PriceWaterhouse. Unipetrol’s governing bodies Supervisory Board

UNIPETROL, a.s. Annual report 2014 20 He graduated from the Łódź University of Technology, specialization in Telecommunications (1992). In 1997, he completed The Association of Chartered Certified Accountants in London from which he obtained the title of British Certified Auditor. IVAN KOČÁRNÍK Born on 29 November 1944; Member and Vice-Chairman of the Supervisory Board (since 22 June 2006, reelected to office on 25 June 2012, current term of office will expire on 25 June 2015); University education, 46 years of professional experience; He has been the Chairman of the Supervisory Board at Impronta, a.s. (until 13 June 2003), Chairman of the Supervisory Board at Česká pojišťovna Slovensko, a.s. (until April 2008), Chairman of the Board of Trustees of Nadace VŠE, Chairman of the Supervisory Board of Česká pojišťovna a.s. (until January 2007), and Chairman of the Supervisory Board of ČESKÉ AEROLINIE, a.s. (until September 2009). He does not hold any of these positions any longer. He held the office of the Deputy Prime Minister and the Minister of Finance (1992 – 1997), Deputy Minister of Finance of ČSFR (1990 – 1992). Before, he worked as Director of the research department of Federal Ministry of Finance (1985 – 1990), at the University of Economics, Prague (1975 – 1985) and in the Research institute of financial and loan system (1966 - 1974). Graduated from the University of Economics, Prague ZDENĚK ČERNÝ Born on 20 October 1953; Member of the Supervisory Board (since 29 January 1999, current term of office will expire on 30 June 2016); University education, 40 years of professional experience; Outside Unipetrol Group, he has been the Chairman of the Supervisory Board of Vykáň a.s. (until 30 June 2006) and a member of the Supervisory Board of Severomoravská energetika a.s., Ostrava (until 28 February 2007) over the preceding years. Currently, he holds the office of Chairman of the Trade Unions Association ECHO (Energy and Chemical industries). Before, he held the post of Chairman of the Czech Trade Unions in Chemical Industry (1997 – 2004) where he also worked in various other positions since 1990 (the head of the Chairman’s Office, executive secretary, head of legislative department). Between years 1975 and 1989 he worked in the railway transportation industry in various positions and departments. He graduated from Charles University in Prague, Faculty of Law. MBA studies finished in June 2011. BOGDAN DZUDZEWICZ Born on 9 February 1966; Substitute Member of the Supervisory Board (from 11 December 2008 till 23 June 2009); Member of the Supervisory Board (since 24 June 2009, reelected to office on 25 June 2012, current term of office will expire on 25 June 2015); University education, 24 years of professional experience; Currently, he is PKN ORLEN’s general counsel (since September 2008) and a Member of the Board of Directors of TriOil Resources Ltd., Canada. He previously worked as a senior lawyer at Linklaters (2003 – 2004) as well as running a private practice (2004 – 2008). Before that, he worked as a commercial lawyer in Elektrim S.A. (2002), a senior lawyer in Weil, Gotshal & Manges (1998 – 2002) and a lawyer in Sołtysiński Kawecki & Szlęzak (1995 – 1998). He studied at the faculty of Law of the Adam Mickiewicz University in Poznań and the Law Faculty, Central European University in Budapest. He is a member of the Regional chamber of commercial lawyers in Warsaw. PIOTR ROBERT KEARNEY Born on 4 October 1969; Member of the Supervisory Board (since 8 June 2005, current term of office will expire on 1 July 2017); University education, 20 years of professional experience; He currently works as Director of Mergers and Acquisitions Department in PKN ORLEN and he is also a member of Supervisory Board of ORLEN Lietuva and ORLEN Upstream. He has been working at PKN ORLEN since 2000, he began at the post of Deputy Director for Capital Investments and later became Strategy and Development Executive Director. Before joining PKN ORLEN he worked for Nafta Polska S.A., first as an Adviser in the Financial Policy Department, subsequently at the post of Deputy Director for Restructuring and Privatization Department. He started his career in Rafineria Gdanska S.A. as Development Finance Manager (1995 – 1996).  Unipetrol’s governing bodies

UNIPETROL, a.s. Annual report 2014 21 Over the preceding years, he was a Member of the Supervisory Board of ORLEN Deutschland GmBH (2003 – 2004), Rafineria Trzebinia S.A. (2003 − 2004), Inowrocławskie Kopalnie Soli Solino S.A. (2003 − 2004), Polkomtel S.A. (2008). He graduated from the University of Gdansk, Faculty of Economics. PIOTR CHEŁMIŃSKI Born on 17 October 1964; Member of the Supervisory Board (since 9 April 2013, current term of office will expire on 24 June 2016); University education, 23 years of experience; Currently, outside Unipetrol Group, he is a Member of the Board of Directors of PKN ORLEN S.A. responsible for Business Development and Power and Heat Generation. He also serves as a Chairman of the Supervisory Board of ANWIL S.A. and a Member of Supervisory Board of Basell Orlen Polyolefins Sp. z o.o. Prior to his current role, he served as a Vice-President for Sales and Marketing in Gamet S.A. in Torun and as a Member of the Board of Directors in Gamet Holdings S.A. in Luxembourg (2006 – October 2009). Between years 2001 – 2006 he served as a Member of the Board of Directors and as a Member of the Supervisory Board – direct operational supervision of Sales and Marketing, Kamis- Przyprawy S.A. From 2001 to 2002 he held the position of a Member of the Board of Directors and a Member of the Supervisory Board of Werner & Merz Polska Sp. z o.o. Between years 1999 – 2001 he was a Member of the Board of Directors in Browar Dojlidy Sp. z o.o. and prior to this he worked for Eckes Granini GmbH & Co. KG as a Regional Director for CEE region and as a President of its subsidiary in Aronia S.A. (1996 – 1999) and he served as a Vice-President for sales, marketing and export of Okocimskie Zaklady Piwowarskie S.A. (1995 – 1996). From December 2009 to April 2013 he held the post of Chairman of Board of Directors and CEO at Unipetrol, a.s. He does not hold any of these positions any longer. He is a graduate of the Warsaw University of Agriculture. He also completed postgraduate course in management at the University of Management and Marketing in Warsaw (Partner of the University of Denver in USA). KRYSTIAN PATER Born on 16 December 1964; Member of the Supervisory Board (since 28 June 2007, current term of office will expire on 30 June 2016); University education, 26 years of professional experience; Outside Unipetrol Group, he is a Member of the Board of Directors responsible for Production of PKN ORLEN S.A. (2007 – present). Additionally, he is a Member of the Management Board of AB ORLEN Lietuva. He also serves as a Vice-President of the Management Board of SITPNiG and a Member of Management Board of EUROPIA and CONCAWE and a Chairman of the Association of Oil Industry Workers in Płock. Prior to his current role, he worked in PKN ORLEN S.A. as an Executive Director responsible for Refining Production (2006 – 2007), chief engineer for technology (2003 – 2005) and supervisor of the production manager’s office (1998 – 2002). Between years 1993 and 1998 he held the post of technologist in Petrochemia Płock S.A. Additionally, he was a Chairman of the Supervisory Board of ORLEN Asfalt Sp. z o.o. (2005 – 2007), ORLEN Eko Sp. z o.o. (2005 – 2007) and a Member of the Supervisory Board of Polyolefins Sp. z o.o. (2007 – 2008). Mr. K. Pater graduated from the Nicolaus Copernicus University in Torun, Faculty of Chemistry, in 1987. Additionally he passed a post-graduate courses in “Chemical Engineering and Equipment” at the Warsaw University of Technology in 1989, “Management and Marketing” at the Pawel Wlodkowic University College in Płock in 1997, “Petroleum Sector Management” in 1998 and “Enterprise Value Management” between years 2001 – 2002 at the Warsaw School of Economics. RAFAŁ SEKUŁA Born on 27 September 1972; Substitute Member of the Supervisory Board (from 30 October 2009 to 9 December 2009); Member of the Supervisory Board (since 10 December 2009, current term of office expired on 24 June 2016); University education, 18 years of professional experience; He is currently the Executive Director of PKN ORLEN’s HR Department and a Member of the Supervisory Board of ORLEN Centrum Usług Korporacyjnych Sp. z o.o. (since 1 October 2011). Prior to his current role, he worked as the HR Director (from 2006), the head of the Employee Care Department (from 2002) and as a specialist in the Employee Care Department (from 2000) at TP EmiTel sp. z o.o. Between years 1997 and 2000 he worked for Telekomunikacja Polska in Organization and Management Department. He graduated from the Jagiellonian University in Cracow, the Faculty of Law (1997), and from the Polish Open University/The Oxford Brookes University in Warsaw, MBA program (2006). He is an coach ICC. Unipetrol’s governing bodies

UNIPETROL, a.s. Annual report 2014 22 Supervisory Board – Changes in 2014 and in 2015 up to the Annual Report approval date As of 1 January 2014, the Members of the Supervisory Board were Messrs. Dariusz Jacek Krawiec – Chairman, Sławomir Robert Jędrzejczyk – Vice-Chairman, Ivan Kočárník – Vice-Chairman, and Piotr Robert Kearney, Krystian Pater, Zdeněk Černý, Bogdan Dzudzewicz, Piotr Chełmiński and Rafał Sekuła – members. The General Meeting of UNIPETROL, a.s. on 26 May 2014 elected to the office of Members of the Supervisory Board for another term Messrs. Dariusz Jacek Krawiec, Sławomir Robert Jędrzejczyk and Piotr Robert Kearney with the effect as of 1 July 2014. As of 31 December 2014, the Members of the Supervisory Board were Messrs. Dariusz Jacek Krawiec as the Chairman, Sławomir Robert Jędrzejczyk as a Vice-Chairman, Ivan Kočárník as a Vice-Chairman, and Piotr Robert Kearney, Krystian Pater, Zdeněk Černý, Bogdan Dzudzewicz, Piotr Chełmiński and Rafał Sekuła as members. There were no changes in the composition of the Supervisory Board in 2015 up to the date of approval of the Annual Report on 24 March 2015. “Managers” mean persons in executive management positions who substantially influence the company’s actions. As  far  as UNIPETROL, a.s. is concerned, managers are the persons in the positions of Chief Executive Officer, Chief Financial Officer, Chief Strategy and M&A Officer, Chief Administrative Officer, Chief of Energy and Development Division, Chief of Production Division, and Chief of Sales Division. Managers as of 24 March 2015 Chief Executive Officer Marek Świtajewski since 9 April 2013 Chief Financial Officer Mirosław Kastelik since 6 February 2013 Chief Strategy and M&A Officer Andrzej Jerzy Kozłowski responsibilities within this area assigned since 9 May 2013 Chief Administrative Officer position vacant since 10 December 2009 Chief of Energy and Development Division Martin Durčák since 1 August 2014 Chief of Production Division Łukasz Piotrowski since 1 August 2014 Chief of Sales Division Piotr Wielowieyski since 1 August 2014 Unipetrol’s governing bodies Managers (persons with management powers)

UNIPETROL, a .s . Annual report 2014 23 The members of the Board of Directors, Supervisory Board, and management (the “Persons”) listed below: Marek Świtajewski, Piotr Wielowieyski, Martin Durčák, Mirosław Kastelik, Łukasz Piotrowski, Andrzej Jerzy Kozłowski, Dariusz Jacek Krawiec, Sławomir Robert Jędrzejczyk, Ivan Kočárník, Bogdan Dzudzewicz, Piotr Robert Kearney, Krystian Pater, Zdeněk Černý, Rafał Sekuła a Piotr Chełmiński have each submitted an individual “Statement of Compliance” to UNIPETROL, a .s ., wherein they have stated that they: (a) Have not been a member of any administrative, governing, or supervisory body or a member or partner of any other companyorgeneralorlimitedpartnershipotherthanUNIPETROL,a.s.orarelatedpartythereofoverthefiveprecedingyears, (b) Are not a member of any administrative, governing, or supervisory body or a member or partner of any other company or general or limited partnership other than UNIPETROL, a .s . or a related party thereof, (c) Have not been convicted of offences involving fraud over the five preceding years, (d) Have not been associated with any bankruptcy/receivership proceedings, administration or liquidation over the five preceding years, (e) Have not been disciplined in any manner whatsoever by any governing bodies or regulatory authorities (including designated professional bodies), (f) Have not been deprived of the capacity to hold the office of a member of any administrative, governing or supervisory body of any issuer, or a position in the management of, or execution of the activities, of any issuer by any court over the five preceding years, (g) Do not have any potential conflict of interest between their obligations related to their offices, their private interests, and/ or other obligations, and UNIPETROL, a.s.; and (h) Have not entered into any agreement on the holding of an office/position with UNIPETROL, a.s. or a related party thereof, granting them any benefit in connection with the end of their office/position.” They also noted, if applicable, exceptions from the items of the above Statement in cases where any of the above circumstances exist in respect of their own person. The exceptions from items (a) and (b) submitted by the Persons are specified in sub-chapters “Board of Directors”, “Supervisory Board”, and “Management”; in this chapter, these are specified separately for each Person in the wording submitted in that Person’s Statement. No exceptions were noted in respect of items (c) to (h). The Persons holding the offices of a CEO, CFO, Chief Strategy and M&A Officer, Chief Administrative Officer, Chief of Energy and Development Division, Chief of Production Division and Chief of Sales Division, at UNIPETROL, a.s. and the Persons exercising the office of an Executive in subsidiaries have agreement of exercise of the office in place with the respective companies, wherein benefits related to the end of their office are accorded to them in accordance with the rules of remuneration specified in the sub-chapter “Emoluments”. Unipetrol’s governing bodies Statement of Compliance

UNIPETROL, a.s. Annual report 2014 24 Audit Committee Based on the new Act No. 93/2009 on Auditors (the “the Act on Auditors”) the extraordinary general meeting of UNIPETROL, a.s. held on 10 December 2009 decided to amend the company’s Articles of Association to establish the Audit Committee and describe its remit, composition, and procedural rules. The Audit Committee is the company’s body that performs, in particular but without limitation, the activities listed below without prejudice to the responsibility of the members of the company’s Board of Directors or Supervisory Board: (a) Monitor the procedure of the preparation of financial statements and consolidated financial statements; (b) Evaluate the efficiency of the company’s internal controls, internal audit and, if applicable, risk management systems; (c) Monitor the process of the mandatory audit of financial statements and consolidated financial statements; (d) Assess the statutory auditor’s and audit company’s independence and especially the provision of complementary services to the company; (e) Recommend an auditor to audit the company’s financial statements and consolidated financial statements; (f) Comment on a proposal of change in the position of Director of Internal Audit. The company’s auditor shall inform the Audit Committee on an ongoing basis about significant circumstances arising from the mandatory audit, including, but not limited to, any fundamental shortcomings in internal controls in relation to the procedure of the preparation of financial statements or consolidated financial statements. The Audit Committee members participate in the company’s general meetings and are obligated to inform the general meeting about the results of their work. The Audit Committee has four members, appointed and dismissed by the general meeting from the ranks of the Supervisory Board members or third parties. Audit Committee members may not hold the positions of Members of the Board of Directors or Proxies of the company. At least one member of the Audit Committee must be independent of the company and possess at least three years practical experience in accounting or mandatory auditing. The term of office of each member of the Audit Committee is three years. Re-election of members of the Audit Committee is allowed. Audit Committee members shall refrain from voting on any issues that threaten or involve a conflict of interests on their part and shall notify the other members of the Audit Committee of such conflicts of interest without any undue delay. This does not prejudice the right of the Audit Committee member on whose part a conflict of interests threatens or exists to participate in the deliberations on the issue as per the preceding sentence. The Audit Committee shall make decisions at its meetings. The Audit Committee shall meet once every two months as a rule. The Audit Committee members IAIN HAGGIS Born on 9 December 1961; Independent Member of the Audit Committee (reelected to office on 24 June 2013) and Vice-Chairman of the Audit Committee (since 26 August 2013); University education, 29 years of experience; Outside Unipetrol Group, he is currently the CFO in charge of financial statements and annual audit at Innova Capital (since 2007). He worked as the corporate finance director at TP Group (2005 – 2007), and before that, as the COO and Executive Director at Radio Plus S.A. (2002-2005). Between years 1999 and 2002 he held the post of the Finance Director at De Lage Landen Leasing Polska (the leasing and vendor finance subsidiary of Rabobank), Finance and Administration Director responsible for the audit process of the National Investment Fund at PTP Kleinwort Benson (1994 – 1999), Financial Director at GVG GmbH, Germany (1991 – 1994), Regional Financial Controller at Halifax Property Services, UK (1989 – 1991), Management Accountant and Assistant Financial Manager at Reuters Ltd (1984 – 1989). Mr. Haggis graduated from the Plymouth Polytechnics (BA in business and finance) in Great Britain. Unipetrol’s governing bodies

UNIPETROL, a.s. Annual report 2014 25 RAFAŁ WARPECHOWSKI Born on 20 September 1971; Member of the Audit Committee (reelected to office on 24 June 2013) and Chairman of the Audit Committee (since 26 August 2013); University education, 19 years of experience; Rafał Warpechowski has been the Executive Director for Planning and Reporting in the PKN Orlen Group since 2008 and in 2009 he was entrusted with the position of company executive at UNIPETROL SERVICES, s.r.o. Between years 2003 – 2008 he held the post of the Accounting and Financial Reporting Division Director at Telekomunikacja Polska Group, between 1998 - 2003 he held the post of the Group Reporting Manager at Impexmetal Group and since 2001 he held the position of Financial Director – Group Planning and Reporting. In years 1996 – 1998 he worked at Pricewaterhouse and PricewaterhouseCoopers in Audit and Business Advisory Services. He graduated from the Warsaw University of Technology, Civil Engineering Department in 1995. In 1996 he completed MBA postgraduate program provided by the Warsaw University of Technology Business School and London Business School. He is a ACCA qualified since 2001. IVAN KOČÁRNÍK Member of the Audit Committee (since 10 December 2009; reelected to office on 24 June 2013); See the Supervisory Board. PIOTR KEARNEY Member of the Audit Committee (since 10 December 2009; reelected to office on 24 June 2013); See the Supervisory Board. The Board of Directors has 7 members. Under the company’s Articles of Association, Members of the Board of Directors are elected and dismissed by the company’s Supervisory Board. If a Member of the Board of Directors dies, resigns, is dismissed or his term of office ends otherwise, the Supervisory Board shall elect a new member of the Board of Directors within two months of the day when such a circumstance occurred. Any Member of the Supervisory Board is entitled to propose the election or dismissal of Members of the Board of Directors. The election/dismissal of Members of the Board of Directors shall take place by means of a secret ballot during a Supervisory Board meeting. Re-election of Members of the Board of Directors is allowed. The Supervisory Board has 9 members who are elected and recalled by the General Meeting. If the number of Supervisory Board members did not decrease under the half, the Supervisory Board may appoint substitute members until the next General Meeting. The re-election of Supervisory Board members is possible. Principles of remuneration of managers and members of the Board of Directors and Supervisory Board The setting of the emoluments for the Board of Directors and Supervisory Board members falls within the competencies of the general meeting. The general meeting decided on a fixed amount of emoluments for an indefinite period of time, differentiated for the Chairman, Vice-Chairman, and Members of both the Board of Directors and the Supervisory Board, in 2001. During the 2013 (on 24 June 2013) on the basis of general meeting there was a change in remuneration police of members of Supervisory Board and their amounts of emoluments were raised. Principles of remuneration of managers The managers’ remuneration consists of a fixed and a variable component related to each particular position and the management level. Remuneration is paid in the form of wages for work performed under management contracts. The level of wages is based on qualified benchmarking studies on managers’ remuneration in the Czech Republic, and reflects managerial and professional expertise. The variable component amounts to ca 60% of the base monthly wages and is paid in accordance with the MBO objectives. Unipetrol’s governing bodies Election rules Emoluments

UNIPETROL, a.s. Annual report 2014 26 The entitlements arising from contracts with managers upon the termination of employment contained both a competition and a stabilization clause as of 31 December 2014. The competition and stabilization clause ranges between three and six times average monthly earnings, monthly base salary respectively. In addition to financial income, managers are entitled to income in kind, which includes: • right to use a business car for private purposes; • meal vouchers; • accommodation costs, eventually costs associated with relocation; • air tickets expenditures according to contracts; • fuel consumption for private purposes; • health care; • cafeteria system - contributions to personal pension schemes, life assurance policies, or Flexi Passes. MBO system – Principles of remuneration of managers (N, N-1, N-2) This management by objective and remuneration system was implemented all the way to level N-2 in 2014, involving more than 150 employees. For the employees and managers evaluated under the MBO, the variable component of wages is set based on the tier of their position in the company. The variable component depends on the meeting of qualitative and quantitative targets and the achievement of the Group’s planned financial results. For setting of individual objectives, the so-called Cascading system applies. The quantitative targets include mainly operating profit (EBIT), free cash-flow, fixed costs and safety parameters. The qualitative targets mainly relate to the managerial efficiency, which belongs to mandatory targets of all managers. An MBO Committee was appointed by CEO for addressing specific cases or employees’ complaints related to the MBO system; its members are the company’s CFO and HR director. The specific qualitative and quantitative targets for the employees are set by their direct superiors. The direct superiors also evaluate the meeting of the targets for the relevant period. For employees who are members of the Board of Directors, targets are set and evaluations made by the Supervisory Board. The Staff and Corporate Governance Committee The agenda of the Staff and Corporate Governance Committee includes support for the implementation of the company’s strategic goals via the Committee’s opinions and recommendations furnished to the Supervisory Board on matters concerning the structure of management, including organizational arrangements, the remuneration system, and the selection of suitable persons capable of assisting the company to achieve success. The remit of the Committee includes, without limitation: • submission of recommendations concerning the appointment and dismissal of the Board of Directors members to the Supervisory Board; • regular assessment of, and submission of recommendations concerning, the principles and system of remuneration for the Board of Directors members and the Chief Executive Officer, including management contracts and a system of incentives, and submission of proposals concerning the creation of such systems with regard to the implementation of the company´s strategic goals; • submission of opinions to the Supervisory Board on the justification of the part of remuneration which depends on the results achieved, in connection with the evaluation of the degree to which the company’s tasks and objectives have been carried out; • assessment of HR management system in the company; • recommendation of candidates for the office of the company’s Chief Executive Officer; • informing the Supervisory Board about all circumstances pertaining to the Committee’s activities. • evaluation of implementation of the corporate governance principles, • submission of recommendations to the Supervisory Board concerning implementation of the corporate governance principles, • opinions concerning normative documents concerning corporate governance, • if required, evaluation of reports concerning the compliance of the corporate governance rules with the corporate governance rules established by the Prague Stock Exchange or the Czech National Bank, if such rules exist, Unipetrol’s governing bodies

UNIPETROL, a.s. Annual report 2014 27 • presentation of opinions concerning the proposed changes of the company’s corporate documents and preparation of proposals of amendments in case of the Supervisory Board documents, • monitoring of the corporate governance from the point of view of its compliance with legal requirements, including the valid corporate governance rules, • informing the Supervisory Board about any facts related to the activities of the Corporate Governance Committee. Committee Members Chairman Krystian Pater Member since 24 September 2010 Chairman since 2 December 2010 – until now Vice-Chairman Bogdan Dzudzewicz Member since 24 September 2010 Vice-chairman 2 December 2010 – until now Member Zdeněk Černý Member since 24 September 2010 – until now Member Rafał Sekuła Member since 24 September 2010 – until now Amount of payments provided by the issuer in the last accounting period from 1 January 2014 to 31 December 2014 Income in money Income in kind Total Board of Directors – income tied to membership in the company’s statutory body CZK 3,007 ths CZK 0 ths CZK 3,007 ths Board of Directors – income tied to management contract CZK 30,378 ths CZK 1,017 ths CZK 31,395 ths Supervisory Board – income tied to membership in the company’s statutory body CZK 7,422 ths CZK 0 ths CZK 7,422 ths Supervisory Board – income tied to management contract CZK 0 ths CZK 0 ths CZK 0 ths Audit Committee – income tied to membership in the company’s statutory body CZK 1,140 ths CZK 0 ths CZK 1,140 ths Audit Committee – income tied to management contract CZK 0 ths CZK 0 ths CZK 0 ths Amounts paid by persons controlled by the issuer for the last accounting period Income in money Income in kind Total Board of Directors – income tied to membership in the company’s statutory body CZK 689 ths CZK 0 ths CZK 689 ths Supervisory Board – income tied to membership in the company’s statutory body CZK 263 ths CZK 0 ths CZK 263 ths Members of the Board of Directors and Supervisory Board and Managers (persons with management powers) do not hold the issuer’s participation securities or options under Section 118 of Capital Market Business Act No. 256/2004 and Article 10 of Commission Regulation (EC) No 809/2004. The issuer has provided no credit, loans, or guarantees to governing bodies or members thereof, members of supervisory bodies, or managers (persons with management powers). The members of the issuer’s governing and supervisory bodies and managers (persons with management powers) were not involved in transactions outside of the issuer’s scope of business or in other transactions unusual for the issuer in terms of their form, nature, terms and conditions, or subject matter during the current and latest completed accounting periods or in the previous accounting periods. Unipetrol’s governing bodies

“We are going forward with motivated and competent people in generating innovative ideas.” PROGRESS PROGRESS PROGRESS PROGRESS

UNIPETROL, a.s. Annual report 2014 29 Management report Unipetrol Group achieved revenues of CZK 124.2 bn in 2014, a 25% increase compared with 2013, stemming from higher sales volumes of both refining and petrochemical products as well as from quite good margins in both refining and petrochemical businesses. Brent crude oil reached the average price level in 2014 of 99 USD/bbl with a steep decrease mainly in the fourth quarter 2014 which means a 9% decline compared with 109 USD/bbl in 2013. The operating profit increased to CZK 3,102 m in 2014 from CZK 1,589 m in 2013 according to the EBITDA LIFO indicator and if not taken into account the one-off effect of gain on acquisition of CZK 1,186 m booked in the first quarter and impairment of refining assets of CZK 4,721 m booked in the second quarter 2014, the operating profit increased to CZK 6,637 m. This profound improvement of the operating profit was driven by positive GDP dynamics in the Czech economy as well as in the Eurozone, an increase in both refining and petrochemical margins and a sales volumes increase in both segments. Unipetrol model refining margin slightly increased to 1.4 USD/bbl from 1.0 USD/bbl in 2013. Brent-Ural differential, at an average level of 1.7 USD/bbl, was also higher in comparison with 2013. Additionally, the fuels grey zone in the Czech Republic connected to tax frauds decreased thanks to legislative measures valid since October 2013. From the production point of view, the company had a quite good year evidenced by refining utilization ratio at the level of 89% and steam cracker utilization ratio at the level of 90%. On the contrary, company faced a negative effect of two unplanned shutdowns which affected sales volumes. In May the steam cracker in Litvínov had to be shut down due to unexpected technical difficulties and in September the operations of the FCC unit at the Kralupy refinery had to be stopped due to unexpected leakage on the FCC unit equipment. Looking at each segment, there was a significant improvement of results of the downstream segment (combining refining and petrochemicals) with EBITDA LIFO at the level of CZK 2 422 m. This improvement was mainly driven by better refining margins in the second half of the year, higher Brent-Ural differential and higher petrochemical margins, both olefin and polyolefin and also internal efficiency improvements. From the sales efficiency point of view, the Group managed to increase sales volumes of both petrochemical and refining products. This was mainly driven by the operation of higher refining capacity in Česká rafinérská. The retail segment recorded a significant improvement with a very good result in the fourth quarter 2014 and overall it achieved operating profit of CZK 705 m EBITDA LIFO. This result was mainly driven by better fuel margins, higher fuel sales volumes and non- fuel sales thanks to GDP growth and marketing activities of Benzina as well as legislative changes mitigating the grey zone on the fuels market. The net loss reached CZK 556 m in 2014, a better result compared to the loss of CZK 1,396 m in 2013, however if not taken into the account one-off gain on acquisition of CZK 1,186 m booked in the first quarter in relation to the completion of acquisition of additional stake in Česká rafinérská and impairment of refining assets of CZK 4,721 m booked in the second quarter, the company recorded full year net profit of CZK 2,979 m which was an improvement by almost CZK 4.4 bn, overall corresponding to the operating performance improvement last year. The operating cash flow reached CZK 737 m and the free cash flow reached a negative level of CZK 1,181 m, representing an improvement vis-à-vis 2013 due to the better operating performance. Total CAPEX achieved the level of CZK 2,007 m, with downstream segment CAPEX of 1,773 m (refining business CAPEX of CZK 480 m and petrochemical business CAPEX of CZK 1,293 m) and retail segment CAPEX of CZK 187 m, and the remaining part dedicated to corporate functions CAPEX of CZK 47 m. At the same time Unipetrol Group maintained its financial gearing ratio on the solid level of 9.7%, corresponding to net debt at the level of CZK 2,701 m CZK at the end of 2014. Unipetrol Group continued to fulfil the Strategy 2013-2017 announced in June 2013, which defined the key development directions for the next couple of years. The most important event which affected the company’s business the most was the successful completion of acquisition of additional 16.335% stake in Česká rafinérská from Shell at the end of January followed by two other contracts with Shell. The first one was for the purchase of Shell’s hydrocarbon inventories and the second one was a product supply agreement for supplying fuels to Shell Czech Republic. The acquisition, fully in line with the Strategy, brought the company higher refining capacity, which enabled to process more crude oil and thus increased security of feedstock for petrochemical business as well as it increased sales volumes of refining products. Management report Introduction

Individuální účetní uzávěrka UNIPETROL, a .s . PB Management report UNIPETROL, a .s . Annual report 2014 30 Additionally Unipetrol also accepted bona fide offer from Eni to acquire the remaining stake in Česká rafinérská at the beginning of July and after the completion of this transaction it will become the sole shareholder. This consolidation of shares in Česká rafinérská will allow the company to perform the full optimization of usage of the production assets of the Group and to deliver cost optimized products as well as to optimize energy consumption and fixed costs in the company. The very challenging environment of the European refining industry pertained in the first half of the year and Unipetrol was forced to face very tough competition from other regions . That is why many Operational Excellence initiatives were executed within Unipetrol Group and many of them are still ongoing. Within the downstream segment, the refinery business focused mainly on wholesale optimization, production costs savings and feedstock purchases optimizations. In the petrochemical business the optimization focused on energy efficiency projects or polypropylene distribution, logistics and sale. Looking at the retail segment, the main effort was directed to marketing and promotions to fight the tough competition on the Czech retail market, to gain new customers and also to increase non-fuel sales through the Stop Cafe Bistro concept. Last but not least, Paramo subsidiary executed several initiatives to increase energy efficiency of its production plants and marketing activities to fight the competition on the market. Thanks to these initiatives the overall improvement was over CZK 1 billion compared to 2013 . Apart from fulfilling the Strategy and Operational Excellence initiatives, among the main achievements in 2014 were the amendment to the contract with Transpetrol for crude oil transportation through Slovak branch of the Druzba Pipeline for the period 2015-2016 signed in June which strengthened the long-term cooperation and at the same time it maintained the transportation conditions of year 2014 and last but not least, Unipetrol significantly strengthened its strategic cooperation with the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická – VŠCHT), which was confirmed by signing of an agreement in November and resulted in Educational and Learning Centre VŠCHT – Unipetrol in Litvínov which represents a unique connection of the industrial sector and educational sector at the college level .

UNIPETROL, a.s. Annual report 2014 31 Management report Key financial data in CZK million 2013 2014 Revenues 99,415 124,229 Gross profit 2,303 5,986 EBITDA LIFO 1,589 3,102 EBITDA 1,521 1,273 EBIT LIFO (826) 831 EBIT (893) (997) Downstream segment EBITDA LIFO 1,143 2,422 EBITDA 1,070 653 EBIT LIFO (862) 558 EBIT (934) (1,210) of which Refining EBITDA LIFO (1,143) (2,980) EBITDA (1,270) (4,086) EBIT LIFO (1,614) (3,335) EBIT (1,741) (4,440) of which Petrochemicals EBITDA LIFO 2,285 5,402 EBITDA 2,340 4,739 EBIT LIFO 752 3,893 EBIT 807 3,230 Key financial and non-financial data

Management report UNIPETROL, a.s. Annual report 2014 32 in CZK million 2013 2014 Retail segment EBITDA LIFO 509 705 EBITDA 514 645 EBIT LIFO 180 382 EBIT 185 322 Corporate functions EBITDA (62) (25) EBIT (144) (109) Net finance costs (450) (365) Loss before tax (1,343) (1,362) Tax expense (53) 806 Net loss (1,396) (556) Earnings per share (CZK) (7.70) (3.07) Operating cash flow 300 737 Free cash flow (1,388) (1,181) CAPEX 2,404 2,007 Net working capital 5,785 9,244 Net debt 1,423 2,701 Net debt / (equity – hedging reserve) 5.0% 9.7% Net debt / EBITDA 0.9 0.6 • EBITDA LIFO – Earnings before depreciation and amortization, financial result and taxes; LIFO method used for inventories valuation (Last-In-First-Out) • EBITDA – Earnings before depreciation and amortization, financial result and taxes • EBIT LIFO – Earnings before financial result and taxes; LIFO method used for inventories valuation (Last-In-First-Out) • EBIT – Earnings before financial result and taxes • Free cash flow – Sum of operating and investing cash flow • Net working capital – Sum of inventories and trade and other receivables, less trade and other liabilities • Net debt includes cash pool liabilities • Net debt / EBITDA – EBITDA in 2014, adjusted for gain on acquisition of CZK 1,186 m and for impairment of the refining assets of CZK 4,721 m at CZK 4,808 m

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 33 Management report External environment 2013 2014 Brent crude price, USD/bbl 109 99 Brent-Ural differential, USD/bbl 1 .0 1 .7 Unipetrol model refining margin, USD/bbl 1) 1 .0 1 .4 Unipetrol model petrochemical olefin margin, EUR/t 2) 369 388 Unipetrol model petrochemical polyolefin margin, EUR/t 3) 252 275 Unipetrol model combined petrochemical margin, EUR/t 4) 621 662 1) Unipetrol model refining margin = revenues from products sold (96% Products = Gasoline 17%, Naphtha 20%, JET 2%, Diesel 40%, Sulfur Fuel Oils 9%, LPG 3%, Other feedstock 5%) minus costs (100% input = Brent Dated); products prices according to quotations. 2) Unipetrol model petrochemical olefin margin = revenues from products sold (100% Products = 40% Ethylene + 20% Propylene + 20% Benzene + 20% Naphtha) minus costs (100% Naphtha); products prices according to quotations. 3) Unipetrol model petrochemical polyolefin margin = revenues from products sold (100% Products = 60% HDPE + 40% Polypropylene) minus costs (100% input = 60% Ethylene + 40% Propylene); products prices according to quotations. 4) Unipetrol model combined petrochemical margin = Unipetrol model petrochemical olefin margin + Unipetrol model petrochemical polyolefin margin. Key operating data (in thousand tons) 2013 2014 Crude oil throughput 3,607 5,130 Refining utilization ratio 1) 80% 89% Refining segment sales volumes, including retail segment (Benzina network) 3,151 4,268 Petrochemical segment sales volumes 1,578 1,773 1) Conversion capacity till 2Q2012 was 5.1 mt/y (Česká rafinérská – Kralupy 1.642 mt/y, Česká rafinérská – Litvínov 2.813 mt/y, Paramo 0.675 mt/y). From 3Q2012 till 4Q2013 conversion capacity was 4.5 mt/y, i.e. only Česká rafinérská refineries conversion capacity, adjusted for 51.22% shareholding of Unipetrol, after discontinuation of crude oil processing in Paramo refinery (Česká rafinérská – Kralupy 1.642 mt/y, Česká rafinérská – Litvínov 2.813 mt/y). From 1Q2014 conversion capacity is 5.9 mt/y after completion of acquisition of Shell’s 16.335% stake in Česká rafinérská, corresponding to Unipetrol’s total stake of 67.555% (Česká rafinérská – Kralupy 2.166 mt/y, Česká rafinérská – Litvínov 3.710 mt/y).

Management report UNIPETROL, a.s. Annual report 2014 34 Financial result of the downstream segment in CZK million 2013 2014 EBITDA LIFO 1,142 2,422 EBITDA 1,070 653 EBIT LIFO (862) 558 EBIT (934) (1,210) Key highlights of 2014 • The acquisition of 16.335% shareholding in Česká rafinérská from Shell Overseas Investments B.V. was completed in January. Based on the successful completion of the transaction Unipetrol’s stake on the Česká rafinérská share capital increased from 51.22% to 67.555%. • Unipetrol based on its pre-emptive right accepted the bona fide offer from Eni International B.V. based on which will acquire 32.445% of Eni’s shares in Česká rafinérská with the acquisition price for the shares in the amount of EUR 30 million. • Česká rafinérská and Transpetrol signed a contract which represents an amendment to the contract for crude oil transportation through Slovak branch of the Druzba Pipeline for the period 2015-2016 and which strengthens the long-term cooperation and at the same time it maintains transportation conditions of year 2014. • A long-term agreement on ammonia supplies with a fertilizer producer was signed for the period 2015-2017. • Record high sales of high-density polyethylene (HDPE) at the level of 322 kt and polypropylene (PP) at the level of 270 kt thanks to higher sales of HDPE and p.p. in all key territories (the Czech Republic, the D-A-CH region, Slovakia), but as well in other, more distanced regions such as Spain and Italy. • Introduction of a new catalytic system for polyethylene copolymers production which fully complies with the new REACH regulation valid from February 2015. • Participation at the Fakuma Fair in Friedrichshafen in Germany - international trade fair for plastics processing focused mainly on the D-A-CH region, not only though (45,689 expert visitors from 117 countries and 1,772 exhibitors from 36 nations). • Strategic cooperation with the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická – VŠCHT) was signed which significantly strengthened the cooperation through the new Educational and Learning Centre VŠCHT – Unipetrol. • Paramo subsidiary’s Mogul brand was awarded the “Brand of the Year” title by the Czech Superbrands organization. Downstream segment

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 35 Management report External environment Refining business External environment of the refining business 2013 2014 Brent crude price, USD/bbl 109 99 Brent-Ural differential, USD/bbl 1 .0 1 .7 Unipetrol model refining margin, USD/bbl 1) 1 .0 1 .4 1) Unipetrol model refining margin = revenues from products sold (96% Products = Gasoline 17%, Naphtha 20%, JET 2%, Diesel 40%, Sulfur Fuel Oils 9%, LPG 3%, Other feedstock 5%) minus costs (100% input = Brent Dated); products prices according to quotations. Crude oil, gasoline and diesel prices The Brent oil price recorded a significant decrease in 2014. Till the end of July the Brent oil was moving within the range from 104 USD per barrel to 110 USD per barrel with the highest level of 115 USD per barrel in June. The price stability of crude oil during the first half of the year was due to lower market sensitivity to actual or potential impending oil supply disruptions. Closing of investors’ long positions, steep growth of shale oil production in the US, an increase in crude oil reserves in the US, geopolitical factors (such as improvement in the US-Iranian relations, averting a military strike in Syria), a decrease in crude oil consumption in the US, and also higher level of crude oil production in the United Arab Emirates were the main reasons for a steep decline of the crude oil price to the level of 55 USD per barrel at end of 2014. Crude oil prices were also negatively affected by slower growth of the global economy at the level of 2 .7% compared to growth of 3 .3% expected at the beginning of the year . The European quotations of automotive gasoline maintained from the end of March till the end of November at relatively high level compared with the crude oil price. The annual average of gasoline crack spread, i.e. the price quotation difference between gasoline and Brent crude oil, was at the level of 171 USD per ton. The diesel prices at world markets were at a significantly lower level compared to gasoline prices, with diesel crack spread to Brent at the level 107 USD per ton . The development and the level of gasoline crack spread were driven by the market situation in the US, supply-demand relation and timing of planned shutdowns of refineries. The relatively low level of diesel crack spread was due to the worldwide sufficient production capacities, the ongoing modernization program of Russian refineries producing diesel in the EURO 5 quality and an increase in export capacities on the Arabian Peninsula . Refining margins The performance of the European refining sector was slightly better compared to 2013. In the environment of zero economic growth and structural problems of several national economies, the refining sector was again in 2014 dealing with overcapacity of production capacities but it reached a slightly better utilization rate than the 78% reached in 2013. Unipetrol’s model refining margin reached the average level of 1.4 USD per barrel in 2014, which represents an increase by 0.4 USD from the level of 1.0 USD per barrel in 2013. The average price differential between Russian crude REBCO and Brent, the Brent-Ural differential, was equal to 1.7 USD per barrel.

Management report UNIPETROL, a.s. Annual report 2014 36 Petrochemical business External environment of the petrochemical business 2013 2014 Unipetrol model petrochemical olefin margin, EUR/t 1) 369 388 Unipetrol model petrochemical polyolefin margin, EUR/t 2) 252 275 Unipetrol model combined petrochemical margin, EUR/t 3) 621 662 1) Unipetrol model petrochemical olefin margin = revenues from products sold (100% Products = 40% Ethylene + 20% Propylene + 20% Benzene + 20% Naphtha) minus costs (100% Naphtha); products prices according to quotations. 2) Unipetrol model petrochemical polyolefin margin = revenues from products sold (100% Products = 60% HDPE + 40% Polypropylene) minus costs (100% input = 60% Ethylene + 40% Propylene); products prices according to quotations. 3) Unipetrol model combined petrochemical margin = Unipetrol model petrochemical olefin margin + Unipetrol model petrochemical polyolefin margin. Olefins and chemicals Among the events with a direct influence on the European petrochemical market, there was one which protruded over the others. It was the steep decline of the crude oil and virgin naphtha prices in the 4Q2014. At the end of 2014 Brent oil was sold for less than 55 USD/bbl, and the prices of virgin naphtha were close to 400 USD/t. The last time the prices were at a lower level was in 2Q2009. This situation allowed the steam crackers operators to produce with high margins since the monomers prices decline did not fully follow the feedstock prices decline. Petrochemical margins were at the lowest level since the 2Q2012. From the perspective of ethylene and propylene market situation, the year 2014 can be divided in two periods. The first five months when both monomers markets were developing differently and the rest of the year when the development of both markets was similar. The first period was characterized by an oversupply on the ethylene market on the one hand and by the tight propylene market on the other hand. The ethylene oversupply was reduced by exports to Asia, which also helped to maintain steam crackers utilization at a higher level. This was desirable because of the limited availability of propylene on the market which was due to a strong demand from the polypropylene producers, production issues, cracking of lighter feedstock and also because of high prices of propylene in the US which helped to improve the competitiveness of European derivatives of propylene on the global market. The spot prices of propylene during this period in many cases exceeded the values of the valid contract. An average difference between the contract price and the spot price was higher than 260 USD/t (22%) during the first five months of 2014. For many players this was a sign of a badly functioning market. The different situation on both markets led to the fact that both monomers contract prices were moving in different directions, for the first time since August 2011. While the propylene contract from April strengthened by 10 EUR/t, the ethylene contract lost 15 EUR/t. The same situation was spotted again in May. From June both monomers markets were behaving in the same way, and after two months of growth the contract prices began to decline and by the end of the year they lost more than 400 EUR/t. The December ethylene contract price was the lowest since the end of 2010, and the propylene contract price has been at a lower level for the last time in July 2012. The continuous decline of crude oil and virgin naphtha prices was the main reason for the weakening of prices in the second half of the year. The drop in prices continued during the autumn season when planned shutdowns of production units took place, and even the strengthening of the US dollar, which increased competitiveness of European products in the export markets and limited imports options into Europe, did not provide much support. Even the unplanned shutdown of the second biggest steam cracker in Europe in Moerdijk in the Netherlands did not bring any difference. As it was in the past years, the European benzene market was characterized by high prices volatility, the difference between the highest and lowest contract price was at the level of 313 EUR/t, and the difference between the spot prices was at the level of 895 USD/t. This difference was between the historically highest European spot price at which benzene was sold in January (1,560 USD/t, CIF ARA) and the price at which the benzene was sold before the end of the year (665 USD/t, CIF ARA). The European market was relatively balanced during the whole year, mainly due to the exchange of benzene and pyrolysis gasoline between the Europe and US and Asian markets. The mutual interconnection of these markets again influenced the pricing in these territories. A key factor for the development of the European market was the drop of the crude oil and virgin naphtha prices in the second half of the year, which consequently led to the lowest benzene contract price since December 2011. The lower availability of pyrolysis gasoline was one of the other reasons. The operators of flexible steam crackers preferred cracking of lighter feedstock and therefore limited its production. This move, however, had a logical explanation – margins coming from cracking lighter feedstock were higher than margins coming from cracking virgin naphtha during the whole year, on average by more than 110 EUR per ton of ethylene produced.

UNIPETROL, a.s. Annual report 2014 37 Management report The sufficient supply of ammonia and a weak demand from the USA were behind the relatively stable market at the beginning of the year and led to a slight decrease in prices. The beginning of the spring application season in the USA together with the lower production of ammonia in the North Africa because of the limited natural gas supplies and civil unrest led to the price growth. The growth continued and it was supported by the fights in the Crimea which led to an increase in the price of natural gas supplied from Russia to Ukraine by 80%, which led to a significant cost increase for Ukrainian producers. The positive effect was also due to an increase in demand from Europe and the USA. The decision of some producers to prioritize the sale of ammonia instead of its further processing to urea, the sale of which was at the time less profitable, increased the availability of ammonia on the market and led to the following price decrease. The sanctions imposed by the EU and the USA on Russia, planned and unplanned shutdowns of units, limited production in Trinidad further increased ammonia prices between August and October by more than 160 USD/t and shifted the level of the European prices to 660 USD/t, CFR NWE. During the last two month of 2014 because of a decrease in demand and better supply of ammonia in Yuzhny and the Baltics the price began to weaken and returned to the level of 500 USD/t, CFR NWE, which is the level where they were at the end of July. Unipetrol’s model olefin margin reached 388 EUR/t in 2014, which represents a 5% increase compared with 2013, when the margin reached 368 EUR/t. Polyolefins After previous not very successful years, the year 2014 was a really good one for polyolefins with respect to demand. The macro development was not as volatile as, for example, 2012, but for sure the development of crude oil prices in the second half of the year influenced the polymers market as well as other sectors of business. Overall, despite of the falling crude the demand for polymers remained good till November and just in December a downward tendency was registered. The overall demand and material balance in Europe was also positively influenced by limited imports to old continent as the result of the introduction of higher import duties on products imported by the GCC countries (Gulf Cooperation Council) in January 2014 (Middle Eastern suppliers saw their margins erode and found better netbacks elsewhere). On the other hand the exports out of Europe strengthen significantly within 2014 thanks to the strong dollar. Unipetrol’s model polyolefin margin reached 275 EUR/t in 2014, which represents a 9% increase compared with 2013, when the margin reached 252 EUR/t. Unipetrol’s model combined petrochemical margin (olefins plus polyolefins) reached a high level of 662 EUR/t in 2014, which represents ca. an 7% increase compared with 2013, when the combined margin reached 621 EUR/t. Crude oil purchases For Unipetrol, the year 2014 was characterized by continued strategic co-operation with Unipetrol´s majority shareholder, PKN Orlen, as part of which crude oil has been supplied through the Druzba and TAL-IKL oil pipelines under long-term contracts since 2006. In the course of 2014, supplies of Russian Export Blend Crude Oil (REBCO) via the Druzba pipeline under the 3-year contract signed between PKN Orlen and Rosneft in 2013 were stable without supply outages. On top of Druzba supplies, 310 kt of seaborne REBCO were delivered via the TAL and IKL pipelines. In regard to the supplies of low-sulphur crude oil grades via TAL and IKL pipelines, Unipetrol remained the majority importer of Azeri Light crude from Azerbaijan, which is the key feedstock for processing in the Kralupy refinery. Azeri Light crude was blended with CPC Blend crude from Kazakhstan at an optimum ratio. On some occasions, CPC Blend crude was also supplied to the Litvínov refinery to achieve a better yield of lighter products. Alternatively, Zarzaitine and Zueitina (both of Libyan) were delivered for processing in the Kralupy and Litvínov refineries and provided for an opportunistic improvement of refining margin compared to standard crude oil slate. Pipeline and rail supplies from various Moravian crude oil deposits to the Kralupy refinery continued in 2014 on the basis of long- term business relationships. These amounted to approx. 2.5% of the total crude processed by Unipetrol. Crude oil purchases in 2014 (in thousand tons) REBCO-Druzba & REBCO-IKL 2,908 56.0% Seaborne low-sulphur crude supplies for the Kralupy and Litvínov refineries 2,159 41.5% Moravian crude oil 129 2.5% Total 5,196 100.0%

Management report UNIPETROL, a.s. Annual report 2014 38 Production Crude oil throughput and refining utilization ratio 2013 2014 Crude oil throughput (in thousand tons) 3,607 5,130 Refining utilization ratio 1) 80% 89% 1) Conversion capacity till 2Q2012 was 5.1 mt/y (Česká rafinérská – Kralupy 1.642 mt/y, Česká rafinérská – Litvínov 2.813 mt/y, Paramo 0.675 mt/y). From 3Q2012 till 4Q2013 conversion capacity was 4.5 mt/y, i.e. only Česká rafinérská refineries conversion capacity, adjusted for 51.22% shareholding of Unipetrol, after discontinuation of crude oil processing in the Paramo refinery (Česká rafinérská – Kralupy 1.642 mt/y, Česká rafinérská – Litvínov 2.813 mt/y). From 1Q2014 conversion capacity is 5.9 mt/y after completion of acquisition of Shell’s 16.335% stake in Česká rafinérská, corresponding to Unipetrol’s total stake of 67.555% (Česká rafinérská – Kralupy 2.166 mt/y, Česká rafinérská – Litvínov 3.710 mt/y).. In 2014 5,130 thousand tons of crude oil were processed for Unipetrol in the production facilities of Česká rafinérská, which is significantly higher by 42% compared with 2013. Refining utilization ratio reached the level of 89%. The main reasons for the greater processed volume were an operation of higher refining capacities in Česká rafinérská due to the acquisition of the additional stake, a high demand for petrochemical products which resulted in the necessity to secure a sufficient volume of feedstock for the petrochemical business within the refinery production, and also good sales volumes of motor fuels especially during the second half of the year. High utilization of crude oil processing was also driven by a good reliability of the conversion units. There was no major planned turnaround such as the one of the Kralupy refinery in 2013. Nevertheless there was an unplanned shutdown in September of the FCC unit (Fluid Catalytic Cracking) at the Kralupy refinery which had to be stopped due to leakage on the FCC unit equipment which affected the sales volumes. In 2014 several optimization projects of refining production units took place to maximize the yield of valuable products and to utilize the existing units more economically. One of the investment projects modification of a propylene column which was implemented already in 2013 – allowed to use additives in the catalytic converter to obtain higher yields of propylene, thus a higher upgrade of refined raw materials. Due to this project the volume of propylene production increased in 2014 compared with the situation when no additives were used. Also the use of the synergy between the petrochemical business and refinery business continued by the means of using of aromatic fractions from the refinery for benzene production or processing petrochemical fractions for the production of motor fuels at the refinery, for example. Paramo subsidiary developed production of lubricant oils, and bitumen both on the Czech and European markets. The production of base oils and lubricant oils was based at the plant in Kolín. The production of oils is based on hydrogenates processing, blending and finalization of motor oils of all performance categories, gear, hydraulic and other industrial oils. Oil hydrogenates from Unipetrol RPA are the feedstock. The production of process oils for the rubber industry and production of special industry oils and liquids was concentrated at the Pardubice plant. Vacuum distillates from the PKN Orlen refinery in Płock are the feedstock material. Paramo subsidiary’s production of bitumen and bitumen products was located at the plant in Pardubice. Paramo produces a wide range of industrial bitumen products intended predominantly for building purposes and special hard bitumen products. The distributor of these is ORLEN Asfalt Česká republika. The feedstock is provided by Unipetrol RPA. Paramo was also providing storage and dispatch services for diesel and gasoline, for Unipetrol RPA and the Administration of State Material Reserves – Czech Republic (ASMR). Market position and sales Refining business Market development Based on the latest figures presented by the Czech Statistical Office, the Czech market showed a yearly consumption increase in gasoline of 0.4% and in diesel of 5%. The diesel market continued to grow representing already 75% on the overall motor fuels consumption and squeezing gasoline share down to 25%. A set of new legislative measures adopted in October 2013 lead to elimination of massive tax frauds in 2014. The grey zone influenced significantly the Czech motor fuels market in previous years. The size of the grey zone is now estimated to be below 5% of the total market. This significant improvement of the market environment helped to increase sales volumes on the domestic market and to achieve fair sales margins.

UNIPETROL, a.s. Annual report 2014 39 Management report Market position The most important events in the year 2014 were connected to acquisition of higher share in Česká rafinérská: • completion of an acquisition of Shell’s stake on 31 January 2014 which increased the refining capacity from 51.222% to 67.555%, • activities leading to takeover of the remaining Eni stake of 32.445% with expected completion in 2015. Sales volumes of refining products, including retail segment (Benzina network of filling stations) thousand tons 2013 2014 Total refining sales volumes, including retail segment 3,151 4,268 Diesel, including retail segment 1,701 2,293 Gasoline, including retail segment 782 1,052 JET 69 144 LPG 88 112 Fuel oils 124 152 Naphtha 5 9 Bitumen 222 308 Lubricants 33 36 Rest of refining products 128 161 Domestic motor fuels sales In 2014 Unipetrol sold 2,230 kt of motor fuels (gasoline and diesel) on the domestic market, which means a 29% increase compared to 2013. Together with the acquisition of the Shell’s stake in Česká rafinérská, Unipetrol signed a five-year contract for supplies of motor fuels to the Shell’s Czech retail network. During 2014 the company also enlarged its customer portfolio and closed contracts with a number of new customers in order to fully utilize its increased refining capacity. At the same time the company managed to win tenders and thus renew contracts with the Czech Railways, Tesco Stores and other key customers. Besides that the company continued in optimization projects mainly in the areas of bio-components and logistics. Export motor fuels sales The company continued to develop export activities in the neighboring markets, giving the highest priority to the intragroup cooperation. Unipetrol Slovakia continued its successful operation covering both Slovakian and Hungarian markets. In Germany, the company maximized deliveries for Orlen Deutschland reaching out a major supply of its Saxony petrol stations. The company also extended cooperation with Unipetrol Deutschland focusing on small/mid-sized partners located near its terminals. Seasonal trends or production difficulties with both a negative and a positive effect were promptly tackled with import, resp. export, of motor fuels from, resp. to PKN Orlen. The company was also able to further increase sales to Austria using the southern ČEPRO terminals for direct fuel supply. Other refining product sales In LPG sales the company significantly increased supplies for the domestic market by 43% compared to 2013, which was due to several factors: planned/unplanned shutdowns of production units taking place in 2013 which meant lower year production, acquisition of Shell’s stake in Česká rafinérská at the beginning of 2014, and LPG wholesale market situation in Europe. The European LPG recorded historical moments. The situation in Ukraine caused worse availability of a typical lower-value product coming from Russia, which led to the higher prices of this source. This enabled the company to place more products on the Czech market and to reach better prices at the same time.

Individuální účetní uzávěrka UNIPETROL, a .s . PB Management report UNIPETROL, a .s . Annual report 2014 40 Heavy fuel oil sales lowered because of a decrease in the industry usage due to environmental as well as economic reasons. Placing the product for bunkering business in northern markets remained the majority outlet for the heavy fuels, nevertheless using extensive market research the company managed to place the product also in various industry areas, heading directly towards primary consumption . Paramo subsidiary market position and sales Paramo’s market share in the Czech Republic exceeded 35% in oils sales to some retail chains and bitumen products sales. More than 60% of Paramo’s production was exported, mainly base and process oils . Marketing support was focused predominantly on finished oils. The MOGUL EXTREME motor oils are the flagship of the company. They meet the highest demands on performance of the most modern engines . Oils from the series MOGUL PROFESSIONAL are designed for car service stations. For two-stroke and four-stroke engines of modern motorcycles, the special product series MOGUL MOTO were developed . Motor oils for trucks are represented by the oil series MOGUL DIESEL which meets the strict emission limits EURO 4 and 5. They guarantee very long service intervals. Paramo offers also the comprehensive oils series MOGUL ALFA for garden equipment . Paramo supplemented its product portfolio by new generation industrial gear oils for the most demanding industrial applications . New series of the synthetic industrial gear oils MOGUL INTRANS SYNT is based on polyalfaolefins (PAO). This new series meets the requirements of the international specification DIN 51 517 part 3 class CLP. Produced bitumen (road, building-insulating) was delivered to the market through ORLEN Asfalt Česká republika which is the exclusive distributor of these products . Paramo maintained deliveries of the processed oils to the Continental Group with which the company also extended cooperation through 2014 . The cooperation continued with additives producers and also new foreign customers for sale of base oils were gained . Finished oils and greases were exported into 25 countries . The main export market was Slovakia where Paramo was represented by its subsidiary Mogul Slovakia. Hungary and states of the former Yugoslavia were other important territories. Paramo also managed to develop and increase sales on Eastern European markets . The company managed to keep its presence in retail chains and industry companies such as OKD, ArcelorMittal Ostrava and Třinecké železárny. The company was present in the Mountfield service network, also supplied oils and greases to the Czech Railways and hydraulic oils for the Army of Czech Republic. Paramo also supplied the AutoKelly network by the Starline brand and produced oils for the Czech company Zetor. Petrochemical business From the internal operations perspective, the company had to face a negative impact of an unplanned shutdown of the steam cracker in the Litvínov plant in May 2014 which occurred due to unexpected technical difficulties. Both polyolefins productions (polypropylene and polyethylene) were running without significant problems, which confirmed the production figures which are at the highest level for the whole history of Unipetrol RPA. The total volume produced was 596 kt (14% above the volume produced in 2013) .

UNIPETROL, a.s. Annual report 2014 41 Management report Sales volumes of petrochemical products thousand tons 2013 2014 Total petrochemical sales volumes 1,578 1,773 Ethylene 140 163 Benzene 189 228 Propylene 31 44 Urea 5 0 Ammonia 186 214 C4 fraction 79 86 Butadiene 58 64 Polyethylene 280 322 Polypropylene 231 270 Rest of petrochemical products 380 382 Olefins and chemicals In the area of olefins and chemicals, the sale of steam cracker products and ammonia is the core business of Unipetrol. The most important steam cracker products include ethylene, propylene, C4 fraction and benzene. There were no major changes in the structure of portfolio of clients, and the domestic share of sales remained similar as in the past years. The Czech Republic continued to be the key market for the steam cracker products. Monomers, C4 fraction and benzene were either processed captively at the Unipetrol RPA’s plants or carried to the strategic customers (Spolana, Butadien Kralupy and Synthos) through the existing product pipelines. By-products of steam cracker were supplied primarily to the Czech, Central European and Western European markets. As in previous years, the domestic market was the destination for most of the ammonia produced by Unipetrol RPA. The main reason for this was a long-term ammonia supply contract with the largest fertilizer producer in the country. The sales of the carbon black Chezacarb, used primarily for modifying electric conductivity of plastics and for producing thermoplastic mixtures and concentrates, geotextiles, and geomembranes, was in the forefront of interest in the past year. Compared to the past years, the sales of carbon black were significantly lower due to the decline in demand. Polyolefins Unipetrol RPA, which belongs to Unipetrol Group, is the exclusive producer of polyolefins in the Czech Republic and a major player in Central Europe. Its production capacity for high-density polyethylene (HDPE) and polypropylene (PP) accounts for more than 5% of Europe’s HDPE capacity and almost 3% of Europe’s p.p. production capacity. Unipetrol RPA’s high-density polyethylene (HDPE) capacity greatly exceeded the domestic market’s consumption, and therefore approximately two thirds of the HDPE produced were exported from the Czech Republic. Conversely, the polypropylene consumption on the domestic market exceeds the overall polypropylene production capacity, which is why the share for export was well below one half of the polypropylene produced. In addition, for certain applications, in particular in the automotive industry, carmakers themselves require certain specific materials or use compounds made abroad, and so the company cannot increase its share on the Czech market arbitrarily. The activities in logistically distant countries such as Italy and Spain slightly increased in 2014 thanks to higher availability of polymers compared to the plan due to higher production. The Czech Republic and Germany are the key markets for polyolefin sales. For Germany and the entire D-A-CH region, the company heavily relied on the services of its subsidiary Unipetrol Deutschland. The company continued in activities leading to customer portfolio optimization with the clear aim of margin potential improvement during 2014. And as it was already mentioned, the year 2014 was excellent for the polyolefins business from both sales volumes, which were record high, and margins.

Management report UNIPETROL, a.s. Annual report 2014 42 This result was combination of good demand for polyolefins in Europe, as described in the paragraphs above, and of course there were almost no troubles on the production side. Just one difficulty occurred in autumn 2014 when there was 1-hexene comonomer unavailability due to force majeure on the supplier’s side. This meant that the company had limited volumes available for sale of certain hexane based polyethylene copolymers in the period from September till middle of November 2014. Final sales volumes of polyolefins were on level of 322 kt of high-density polyethylene (HDPE) and 270 kt of polypropylene (PP). Compared to 2013 the company sold approximately 81 kt more (polyethylene +42.5 kt and polypropylene +38.5 kt). Expected development in 2015 Refining business As expected, the excess of supply over demand will keep the crude oil prices at low levels in 2015 – 2016. For 2015, the crude oil price is expected to move within the range of 50 – 60 USD per barrel. Due to the lower crude prices there will be less pressure on the European refining sector, however it will remain challenging due to an imbalance between the supply and demand of motor fuels (gasoline and diesel) on the market, a lower but remaining competitive advantage of the North American refineries, completion of export refineries in the Middle East and Far East and ongoing modernization program of the Russian refineries producing diesel in the EURO 5 quality. Under the current economic conditions of the Eurozone and economic changes implemented by the Czech government, the growth of the Czech GDP is expected in 2015 which will positively affect domestic demand for motor fuels. The company also expects an ongoing positive effect of the mitigated grey zone thanks to legislative measures valid since October 2013. Unipetrol will focus further on the speed-up of Operational Excellence initiatives execution in Česká rafinérská as well as in the whole Group and will be further investing in synergies between refining and petrochemical businesses which will continue to be the key competitive advantage of Unipetrol Group. Strategy of the future development of Paramo subsidiary will be still based on the three pillars: • lubricant oils and greases, • bitumen and bitumen products, • continuous energy efficiency and production performance enhancement. Petrochemical business Olefins and chemicals A key factor of the year 2015 will be the crude oil and virgin naphtha prices. According to most predictions, a quick return of the crude oil price to the level of 100 USD/bbl cannot be expected. There is still a sufficiency of oil on the market and OPEC refuses to reduce its crude oil production for now. By this OPEC seeks to limit new investments into the oil industry with the aim to keep its share on the global crude oil market. Lower feedstock prices could improve the competitiveness of some European derivatives. Although important investments into the shale gas production and into the related chemical industry will continue to expand the ethylene production and its derivatives in the US, the lower price level and high transportation costs will lower the export. While the average difference between the European and the US contract prices of ethylene was above the level of 400 EUR/t (without the transportation costs the difference was above the level of 230 EUR/t), in 2015, according to the CMAI company prediction, the difference should not even cover the transportation costs. The cracking of lighter feedstock will reduce the availability of propylene, butadiene and aromatics in 2015. Consumers on the European market will continue to purchase the products for direct consumption and low level of stock will further decrease their flexibility to react to unplanned shutdowns of production plants. Petrochemical margins should not reach the level which they reached in the 4Q2014. The ethylene and propylene market should remain balanced with a tendency for a demand surplus in the first half of 2015. Many planned shutdowns of production plants and the restart of derivative production plants in Moerdijk in the Netherlands will help to keep the market balanced. As it was in the past years, the benzene market should remain volatile in 2015. Due to significantly lower prices of crude oil and virgin naphtha, the price range fluctuation should not be as extensive as it was in the past period. The mutual interdependence of price fluctuations on the European, US an Asian markets will remain essential, especially after a significant increase in availability of benzene in Asia due to the beginning of operation of new production capacities in the second half of 2014. The trend observed in the last two months of 2014 should continue as well at the beginning of 2015, and the ammonia prices should continue to decrease. The agricultural and industrial sector demand should remain weak, and the oversupply should outlast. The resumption of gas supplies from Russia to Ukraine which occurred before the end of 2014 is also the cause of higher availability of ammonia. The subsequent demand recovery should stabilize the price level.

UNIPETROL, a.s. Annual report 2014 43 Management report Polyolefins No significant changes in 2015 compared to 2014 are expected. The market/demand will be still highly influenced by feedstock development, but limited imports to Europe are still predicted, so the demand for European producers should remain good. This is also confirmed by the demand collected from clients in 4Q2014 which was for both products (polyethylene and polypropylene) higher than company’s capacities in 2015. The polyolefins business unit still continues in optimization activities like redirection of sales volumes from less profitable products, countries, application segments and customers to the more profitable ones with the aim to improve the margin potential. A key part of the strategy is certain balance between spot and long-term business with price formulas which is needed for stability of production, as well as acquisitions of new processors, higher production and sales of the more sophisticated products, close cooperation with clients leading to better understanding of their needs when it comes to products and services. The polyolefins business unit started already to support the sales of the products of Unipetrol RPA’s subsidiary company – Polymer Institute Brno – the aim of the support is to combine the sales of polymers with masterbatches. Financial result of the retail segment in CZK million 2013 2014 EBITDA LIFO 509 705 EBITDA 514 645 EBIT LIFO 180 382 EBIT 185 322 Note: Financial results of the retail segment include BENZINA, s.r.o. (filling stations network) and PETROTRANS, s.r.o. (road transporter of fuels). Key highlights of 2014 • Implementation of the “Customer View” program to improve younger generation customers’ perception and their loyalty to the Benzina filling stations network represented by the “Live Life to the Fullest” campaign and presentation in social media • Benzina has extended its offer to include the gas alternative CNG at 10 filling stations already • New contractual relations with filling station partners External environment Factors both of macroeconomic and technical nature affected fuel consumption in the Czech Republic over the whole of 2014. The macroeconomic factors included GDP growth and a lower level of unemployment, and also in this context, increased performance in sectors which have high diesel consumption demands, and also a greater willingness on the part of households to spend, exhibiting itself in higher demand for gasoline. Factors of the technical nature included replacement of the vehicle fleet with gasoline engines by those with diesel engines with lower consumption and also the fact that new cars which are launched onto the market with gasoline engines are displaying lower consumption levels. Higher performance in the case of international road transportation in 2014 also had a positive impact with international transit carriers returning to the territory of the Czech Republic to purchase fuel. The drop in the crude oil price in the second half of 2014 and subsequently also a decrease in fuel prices at filling stations had an impact on increased demand for fuels as did the mild winter which meant that individual car use among individuals was not limited. An absolutely distinct category is that of tax evasion and the effects of its negative impact on income for the state budget, the Retail segment

Management report UNIPETROL, a.s. Annual report 2014 44 economic management of companies and the competitive environment throughout the whole portfolio. This is why a series of measures were adopted to improve this situation on the market in the Czech Republic. These measures were approved in the new legislation and had an effective impact throughout the whole of 2014. The new legislation and other control systems thus contributed significantly towards improvement of the competitive environment in business with motor fuels. Another field of interest on the part of consumers is increased demand for alternative liquid fuels with a high level of added bio- components (E85, B30, B100) which are offered at a final price with significant tax relief which thus motivates consumers to buy or create their own cheaper mixtures using bio-fuels. The spread of high-volume bio-fuels also serves fictitiously to meet the bio- content obligation and allows greater use of fuels without bio-components. A significant increase was also registered in the use of the gas alternative CNG. Apart from an increased number of cars, the number of filling stations offering CNG also increased. This type of alternative also enjoys tax relief. The summary of factors provided above was decisive for the development of demand for fuel on the domestic market in 2014, which in comparison with 2013 was characterized by growth in the consumption of gasoline by 0.4% and consumption of diesel by 5%. Market position and sales Market position The retail company from Unipetrol Group, BENZINA, s.r.o., is the operator of the largest network of filling stations in the Czech Republic. As at 31 December 2014, it operated 339 filling stations offering a wide range of fuels with additives. The selected filling station segment offers a collection of premium VERVA fuels and also a wide range of other goods, refreshments and services. This network was gradually renovated, in particular in the period 2006 – 2010, and is currently profiled in three segments, the premium segment represented on the domestic market by 117 BENZINA Plus filling stations, the standard portfolio of BENZINA filling stations and the self-service filling station segment under the Expres 24 brand. As at the end of 2014, BENZINA operated 3 Expres 24 self- service filling stations. Overall, the total of 95% of the network of filling stations was modernized in all segments. The market share of Benzina in 2014 as compared to 2013 grew from 14.5% to 15%. Fuel sales Benzina’s key activity is the sale of fuel and other goods and services at filling stations. The structure of sales confirmed the long- term trend towards a higher share of diesel and also a slight year on year growth in the share of gasoline sold. Structure of fuel sales at filling stations (%) 2013 2014 Gasoline 35.9 36.4 Diesel 64.1 63.6 Overall sales of diesel in the Benzina network registered growth of 6.7% for 2014 in comparison with 2013. Both the standard TOP Q diesel with additives (+6.3%) and also the premium VERVA diesel (+11.7%) contributed towards this growth in the range of types of diesel sold. Overall sales of gasoline registered the growth of 8.8% compared to 2013. The main type continued to be Natural 95 gasoline which made up 95.4% of the overall composition of gasoline sold and registered year-on-year growth of 8%. Sales of the high-octane VERVA 100 gasoline increased year on year by 30%. Its share has grown since its introduction in 2006 and in 2014 the premium gasoline achieved a share of 4% in overall gasoline sales. In terms of nationwide monitoring of the quality of fuel sold in public filling station networks performed by the Czech Trade Inspection Authority and publication of these results on the website of the CTIA, the Benzina network of filling stations had only two minor discrepancies in a case of diesel. All premium fuels checked were alright. In terms of the internal “Seal of Quality” program (“Pečeť kvality”), an independent accredited laboratory checked 1,868 samples in the network and 99.8% were free from defects. A combination of increases in fuel sales at filling stations in 2014, including an increase in the share of premium fuels with higher added value, in relation to a drop in the pricing level of all types of fuel sold, marketing support and savings on operational costs constitutes the main list of factors which contributed significantly to the very good financial result in the retail segment. Improvement of the competitive environment on the market also had a positive impact on the results achieved, as did the favorable effects of macroeconomic factors on demand for both gasoline and diesel.

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 45 Management report non-fuel sales Overall revenues from sales within the non-fuel segment of goods in 2014 increased by 5.4% in comparison with 2013. Positive dynamics were in particular registered within the sub-segment gastronomy, revenue in which grew by 15.9% year on year. It was in particular development of the fast food concept in Stop Cafe outlets where customers can enjoy high quality coffee, tea and hot dogs which contributed towards this positive development . Expected development in 2015 In the current economic conditions of the Eurozone and economic reforms in the Czech Republic, in particular adoption of measures to promote growth on the part of the Czech government, a growth in the Czech economy can again be expected with a quantification of +2% GDP and with a positive impact on growth in demand for fuel on the domestic market, this in particular being via increased performance in sectors which have high diesel consumption demands. Bio-fuel and CNG which enjoy tax relief will continue to reinforce their permanent place on the market . This in particular holds true in the case of consumers with a lower purchasing power and carriers which will be focusing on precisely these cheaper bio-fuels, mixtures or types regardless of the condition of their vehicle fleet or recommendations of the manufacturer, this always being to the detriment of conventional taxed fuels. This development will be influenced by the further development of crude oil prices and listed prices of bio-components and other conclusions of the notification process in support of bio-fuels and legislation in the field of the environment and meeting of CO 2 emissions. Great pressure will be exerted on the profit margin from fuels in the fierce competitive environment of filling stations this year too, in particular in the struggle to maintain or increase of throughputs and sensitive perception of prices . New legislation for doing business in the field of distribution and sale of fuels will in 2015 continue to have an effect on more marked curtailment of unfair practices and tax fraud. The grey zone should gradually be pushed further out of the market in favor of reputable competitors. Further expansion of the offer of alternatives such as CNG or fast charging stations for electric vehicles can be expected. Alternative large-volume bio-fuels will continue to find a place on the filling station market and the remaining free space on the market will be utilized by filling stations in the self-service and low-cost category. Company priorities in terms of the Strategy for 2013-2017 which has been adopted remain growth in the market share in fuel sales, increase in the average throughput per filling stations and also increase in sales in the non-fuel segment including extension and consolidation of the gastro offer. Benzina will also strive to ensure further strengthening of customer confidence in the company with a focus on the younger generation. In the field of capital investment, completion of remodeling of the network and modernization of car washes will continue according to plan. Evaluation of the pilot project for Expres 24 self-service filling stations will be performed. This concept can only be expanded in suitable locations . The “Live Life to the Fullest” campaign will also be the key feature of marketing in 2015 and social networks will be used for communication of the brand, product offer of fuels, goods and services to potential customers . The company is also preparing continuation of attractive marketing promo events with the aim of supporting sales of fuels, including goods and services of a non-fuel nature, and last but not least also positive perception of the Benzina brand on the market across the whole customer spectrum . The company is also preparing a modern collection of its own new card products offering greater convenience to a wider range of customers and allowing to increase and stabilize the share of card customers. According to development of the market, the state of modernization of the vehicle fleet and new technologies for fuel combustion in cars, the filling stations will continue to extend the offer of fuels in range to include premium types of fuels and CNG as well as extension of high-volume bio-fuels for certain customers and extension of the offer to include the environment-friendly Ad Blue operating fluid using dispensing technology.

Management report UNIPETROL, a.s. Annual report 2014 46 Investments in the petrochemical business in 2014 were mainly focused on maintaining operating reliability, safety and on meeting the requirements of the environmental legislation and increasing effectiveness of operations, especially energy efficiency. The major investment projects focused on the revamp of the power plant T700, reliability including regular refurbishments of the steam cracker pyrolysis furnaces, fulfilment of integrated permits mainly sewage water segregation 3rd and 4th stage and overhauls of the process equipment including second stage of reconstruction of distribution room R200. From the modernization projects LPG unloading on rail 234b has been finalized. Unipetrol RPA started tender for the new polyethylene unit (PE3). Project preparation and analysis related to the operation of the new unit are still ongoing. Major investment of VÚAnCh subsidiary was focused on building UniCRE (Unipetrol Centre of Research and Education). The basic goal is to intensify and improve effectivity of research and development in area of industrial chemistry and environmental technologies. Project completion is expected in 2015. The refinery business invested mainly in maintenance, environmental protection, reliability and availability of the installations. Major investments in 2014 were related to environmental protection, namely reconstruction of oil drainage system in Kralupy and waste water treatment in Kralupy. The Unipetrol Doprava main project, which started in 2013, was safeguarding appliance in Kralupy which is outdated and technical conditions would not allow to operate it. The project was successfully completed at the end of 2014. Continuation of the project for solvent exchange was the main investment project at Paramo. Cooperation with ČEPRO related to connection of Paramo fuel terminal to ČEPRO distribution pipeline net started in 2014. The retail segment focused mainly on modernization and reconstruction of the existing Benzina fuel stations, replacement of security surveillance cameras, and replacement of car washes and refurbishment of wastewater treatment plants. Benzina also acquired a new fuel station in Staré Město and started activities to build one new station in Opava. Other segment investments comprised mainly IT related projects. The main IT projects in 2014 were focused mainly on hardware replacement and license purchase. Except for IT projects also the purchase and installation of new bagging line for the p.p. unit was finalized. Unipetrol Group CAPEX overview according to investment category and business part in 2014 and plan for 2015 (CZK million) Investment category/ Business part Refining Petrochemicals Retail Other Total 2014 Development 38 566 123 25 752 Maintenance/refurbishment 264 641 53 21 979 Environment 116 59 2 0 177 Safety 62 27 9 1 99 Total 480 1,293 187 47 2,007 2015 Development 146 1,973 148 40 2,307 Maintenance/refurbishment 507 1,249 56 35 1,847 Environment 269 21 2 1 293 Safety 46 47 6 0 99 Total 968 3,290 212 76 4,546 Note: Location – local; Financing method – own resources. Investments

UNIPETROL, a.s. Annual report 2014 47 Management report Research and development of Unipetrol is focused on three principal fields - plastics, petrochemicals and refining. Research in the field of plastic materials is conducted by Polymer Institute Brno, spol. s r.o. (PIB), petrochemical and refinery research is carried out by Research Institute of Inorganic Chemistry (Výzkumný ústav anorganické chemie, a.s - VÚAnCh) in Ústí nad Labem. Besides the above mentioned institutions Unipetrol very closely cooperates with universities, especially the University of Chemistry and Technology in Prague (Vysoká škola chemicko-technologická - VŠCHT). The results of research and development are applied within the technical support of production, creation of individual strategies, or they are directly reflected in the introduction of new products in the product range. Since 2010, VÚAnCh, a subsidiary company of UNIPETROL, a.s., has been building the new modern Unipetrol Centre for Research and Education – UniCRE for the field of industrial chemistry in the Chempark Záluží in Litvínov. The centre will focus on the research, development, innovations and education in the area of refinery and petrochemical technologies, environmental technologies and processes for efficient use of renewable resources and energy. During 2014, after installation of the office and laboratory equipment, the main, laboratory building of UniCRE started to be used. In the middle of the year, refurbishment of the experimental base was started, which should be completed by May 2015. In 2014, a great part of the device equipment was also purchased. The total costs of the project, which was supported by the European Union by the amount of nearly CZK 600 million, are estimated to amount to approx. CZK 800 million. The project implementation period will last until 31December 2015. Refining business Research work in the refinery business focused on maximization of conversion of crude oil to motor fuel and high-quality feedstock for the petrochemical business without negative influences on the quality of dark product production. In 2014, Unipetrol cooperated with the Research Institute of Inorganic Chemistry in three basic areas: In the area of light fractions petroleum process streams with a higher content of aromatics were mapped with the aim to assess their potential for petrochemical use. In the area of middle distillates solutions for reinforcement of production and quality of diesel fuel by the use of hydrogenation capacities of middle distillates and by optimization of operation of conversion units were continued. The research in this area also comprised mapping of processing possibilities of external raw materials - possibility to process products of pyrolysis of waste plastic, tyres etc. In the area of dark products the research was focused on processing of thermal cracking residues with enhanced conversion. Similarly, the quality of bitumen production was monitored and tests of additives for its improvement were conducted. For quality improvement of heating oil production monitoring of all potential components (incl. petrochemical) for mixing was conducted and their influences on the quality of final heating oils were assessed. In the year ahead, development work on utilization of heavy crude oil residues, use of heavy petrochemical fractions in heating oils, enhancement of production and quality of diesel fuel constituents and petrochemical use of petrol fractions with a higher content of aromatics will continue. Research work will be extended to treatment and improvement of the quality of refinery fractions that serve as the feedstock for the steam cracker. Another area where research activities will expand is the area of biofuel production and use. Petrochemical business Olefins and chemicals The research and development in the area of olefins and chemicals is carried out by Research Institute of Inorganic Chemistry in Ústí nad Labem (VÚAnCh). The long-term goals in the area of petrochemistry are quality improvements of the product range and increasing the production efficiency. The main topics in 2014 were valuation of the secondary products of ethylene pyrolysis – preparation of a study for the production of blowing agents from the pyrolysis C5 fraction and research of possible use of pyrolysis heating oil for the production of demanded petrochemical products. Further, the possibilities of influencing the yield of the desired products of ethylene pyrolysis by a suitable composition of the processed raw material were examined. Within the complex of the refinery and petrochemical plant research work was done with the aim to optimize the production of aromatic hydrocarbons with regard to maximum efficiency and the lowest possible price of the products. In the area of aromatic hydrocarbons work was also started aimed at implementation of production of pure naphthalene instead of the naphthalene concentrate. Research and development

Individuální účetní uzávěrka UNIPETROL, a .s . PB Management report UNIPETROL, a .s . Annual report 2014 48 Also, ways of using new raw materials for the POX process were investigated. A considerable amount of work was spent on the research of possibilities of increasing the added value of the Chezacarb product. New progressive methods were investigated in the field of material analysis with the aim to monitor and control the production of technical carbon black in such a way to be able to permanently produce a product with optimum conductivity. The possibilities of production of demetallized Chezacarb were also investigated in detail In 2014, development projects were also implemented which focused on economical and environment-friendly reuse of used catalysts and a great deal of work was done in the field of energy savings. Polyolefins In the area of polyolefins, Unipetrol is developing its production processes and products. In 2014, the research work carried out by Polymer Institute Brno, spol . s r .o . (PIB) was concentrated on the research of new catalytic systems, mainly phthalateless catalysts and catalysts complying with the REACH requirements. Possibilities of using catalyst mixtures positively influencing the characteristics of new polymers were also investigated . Research work also focused on the area of additive recipes for polymeric products . In 2014, new possibilities of preparation of polypropylene copolymers (PP) with enhanced utility characteristics and innovation of existing polymer types were investigated with the aim to reduce production costs . On the basis of the results of the research of Polymer Institute Brno spol. s r.o. a catalytic system complying with the REACH requirements from February 2015 on in the area concerning limitations of using some types of phthalates was successfully tested and introduced for the production of block copolymers in the polypropylene production plant . The research projects also comprised the issues of polypropylene (PP) and polyethylene (PE) production . Projects related to production support were implemented where Polymer Institute Brno cooperated with Unipetrol RPA on production process improvement . A common project that was conducted last year dealt with the possibilities of using Chezacarb as a filler of polymeric materials produced by Unipetrol RPA . Besides research work, Polymer Institute Brno also provides Unipetrol with specialized technical services through the customer support . In 2015, in the area of plastic research work focusing on the development of new types of catalytic systems, copolymers will continue . The development of innovated types of polymers will also go on .

UNIPETROL, a.s. Annual report 2014 49 Management report Unipetrol Group belongs to companies, which consider Human Resources as one of the key driving forces of every company. The company strives to create a pleasant working environment for its employees, so that they could deliver the best results and therefore support a positive development of the whole Group. Unipetrol Group was among the biggest companies in the region with its 3 670 employees in 2014. As in previous years, Human Resources management was entrusted to Unipetrol Group´s service organization, Unipetrol Services, s.r.o. subsidiary. The primary tasks included the rationalization of HR processes and the continuation of restructuring of the organizational structure. Cost cutting was achieved, besides other things, also through reduction in the number of employees. The issue was addressed with utmost sensitivity and with regard to maintaining the operability of all organizational units. The company paid attention to maintaining the employees´ competence and development. Total number of employees of Unipetrol Group (persons) as of 31 December 2014 Company 2014 BENZINA, s.r.o. 86 Butadien Kralupy a.s. (51%) 1) 10 ČESKÁ RAFINÉRSKÁ, a.s. (67,555%) 1) 412 PARAMO, a.s. 459 PETROTRANS, s.r.o. 144 POLYMER INSTITUTE BRNO, spol. s r.o. 91 UNIPETROL, a.s. 52 UNIPETROL DEUTSCHLAND GmbH 16 UNIPETROL DOPRAVA, s.r.o. 415 UNIPETROL RPA, s.r.o. 1,524 UNIPETROL SERVICES, s.r.o. 296 UNIPETROL SLOVENSKO, s.r.o. 10 Výzkumný ústav anorganické chemie, a.s. 131 MOGUL SLOVAKIA, s.r.o. 14 HC VERVA Litvínov, a.s. 11 TOTAL 3,671 1) Number of employees in Butadien Kralupy, a.s. (100%) was 18.5 and in ČESKÁ RAFINÉRSKÁ, a.s. (100%) was 610. Employees

Management report UNIPETROL, a.s. Annual report 2014 50 Education of employees Education of Unipetrol Group´s employees in 2014 was primarily focused on maintaining the level of qualification of employees in production and additional qualified development of company’s specialists. In the area of company’s education, 7,197 persons received mandatory training, 1,552 persons attended professional or vocational seminars and 332 persons attended foreign language courses as at December 2014. The employees of financial departments attended the International financial reporting standards (IFRS) training. Trainings on specialized topics in the area of project management were organized for selected employees of Unipetrol Group. Workforce structure Workforce structure in 2014 corresponds to character of the whole Group. The most frequent level of education is of secondary level, which is usually common in the production company. Higher education is quite frequent as well. It is mostly favoured within the managerial and leadership positions. As one of the biggest employers, Unipetrol Group offers attractive work conditions which instigate loyalty among employees. This is according to the employment structure by the worked years – the largest group within this category is the “10–20 years” followed by “20–30 years” group. Employment structure of Unipetrol Group as of 31 December 2014 Employment structure by education Primary 5% Vocational 29% Secondary 45% Higher 21% Employment structure by gender Men 73% Women 27% Employment structure by length of employment <5 23% (5-10> 16% (10-20> 24% (20-30> 23% >30 14% Employment structure by age <31 9% (31-40> 21% (40-50> 35% (50-60> 29% >60 6%

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 51 Management report HR policy Unipetrol Group adopted a new HR policy in 2013 which determines the development in the area of HR for years 2013–2017. The Group Strategy focuses on developing an integrated company which produces and sells fuels and energy with a diversified assets structure. Realization of these ambitious objectives requires strong management and highly qualified employees who will be able to fulfil the strategic objectives and ensure effective management of incoming changes. Strategic directions in HR policy The corporate culture of Unipetrol is based on values listed below, adopted and applied in Unipetrol as well as in companies of the capital Group of PKN ORLEN: • Responsibility • Progress • People • Energy • Dependability Based on this new corporate culture HR supports managers in dealing with matters pertaining to personnel operations. In the area of segment management the HR department takes action towards the highest possible synergies. The HR department introduces processes and means which suit to needs of business, which support realization of the Strategy (especially in the new areas such as upstream and energy) and which also take into consideration social conditions. The HR department’s activities focus on: • an efficient recruitment and adaptation process which allows to choose employees with desirable competencies, • targeted professional development of employees, which supports strengthening of competencies desired within the Group companies, • systematic approach to accumulation and exchange of knowledge within the Group, • promotion of mobility, exchange of experience on intercultural level, • remuneration policy which allows recruitment of new employees and their motivation and commitment . The HR department is responsible for a steady increase of HR processes efficiency within the Group and an introduction of advanced and innovative solutions, while taking into an account the optimization of the costs.

Management report UNIPETROL, a.s. Annual report 2014 52 Consolidated statement of financial position Changes in non-current assets As of 31 December 2014, non-current assets of Unipetrol Group amounted to CZK 22,173 million. In 2014, the Group acquired tangible assets worth CZK 1,866 million and intangible assets worth CZK 126 million. Based on performed analysis, the impairment allowance of CZK 4,989 million was recognized during the year 2014 in relation to non-current assets of refining CGU (cash generating unit). Impairment charges of CZK 4,882 million were allocated to plant, property and equipment, and CZK 107 million to intangible assets and these were recorded in other operating costs. The impairment charges recognized in refinery CGU related to non-current assets of the following entities: ČESKÁ RAFINÉRSKÁ, a.s., PARAMO, a.s., UNIPETROL RPA, s.r.o. in amounts: CZK 4,911 million; CZK 51 million; CZK 27 million respectively. Looking at investments, most of them went into the downstream segment, namely to the petrochemical business (CZK 1,293 million) and the refining business (CZK 480 million), followed by investments in the retail segment (CZK 187 million). Changes in current assets Total current assets amounted to CZK 26,344 million as of 31 December 2014 and were higher by approximately CZK 2,010 million compared to the previous year, especially due to hedging operations. The profound decline of crude oil prices was the main cause of the decrease in inventories compared to 2013 (inventories decreased by CZK 385 million). Changes in equity Total equity increased from CZK 28,300 million in 2013 to CZK 28,462 million in 2014 due to the Hedging reserve increase which resulted from the revaluation of financial derivatives. Changes in liabilities Borrowings Current Loans and borrowings decreased by CZK 157 million compared to 2013. The company also received the second tranche of the mid-term loan from its majority shareholder PKN ORLEN S.A. in the amount of CZK 2 billion in January 2014. Trade liabilities The main reason for the decrease of CZK 3,731 million in trade liabilities compared to the previous year was decrease of crude oil price in the 4Q2014. Provisions Compared to 2013, provisions increased by CZK 265 million, which was mainly caused by higher provision recognized for estimated CO 2 emissions. Consolidated statement of profit or loss and other comprehensive income The Group’s revenues for 2014 amounted to CZK 124,229 million and were 25% higher than in 2013, stemming from higher sales volumes in both downstream and retail segment as well as from better margins in both refining and petrochemical business. The Group’s loss from operations of CZK 997 million on EBIT level for 2014 was negatively influenced by challenging macro environment during the first half of 2014 which resulted in recognition of impairment allowance in refining business. The Group’s operating loss of CZK 893 million on EBIT level for 2013 resulted mainly from challenging macro environment, especially in refining sector. The operating result of the Group in 2014, excluding two one-off items recognized during the year, i. e. gain on bargain purchase in amount of CZK 1,186 m and impairment in total amount of CZK 4,989 m, amounted to CZK 2,806 m. In 2014 the Czech economy recovered from recession with annual GDP growth at 2.4% according to last available OECD statistical data, refining margins recovered in the second half of the year compared with 2013, petrochemical margins remained strong and the grey zone on the fuels market was significantly reduced due to legislative changes valid since October 2013. On the contrary, Financial standing

UNIPETROL, a.s. Annual report 2014 53 Management report difficult macro conditions in refining sector especially during the first half of 2014, continuing surplus of refining production capacities and oversupply of refining products on the European market were the major indicators for recognizing an impairment allowance of CZK 4,989 million during the whole year 2014. The above reasons caused the Group’s net loss of CZK 556 million. The net result excluding one-off items amounted to positive level of CZK 3,247 m. Consolidated statement of cash flows Net cash provided by the Group’s operating activities amounted to CZK 737 million in 2014. At the same time, investing activities resulted in cash outflow in the amount of CZK 1,918 million and financing activities resulted in cash inflows in the amount of CZK 1,728 million. The increase in cash compared to the 2013 level resulted primarily from higher cash flow from operating activities, as well as from higher cash flows from financing activities in 2014 compared to 2013. The Group’s financial position was still strong and on good levels at the end of the year as the net debt amounted to CZK 2,701 million and financial gearing, defined as the ratio of net debt and equity, amounted to 9.7%. Revenues Trends in revenues for own products and services   2014 2013 2012 2011 2010 CZK million CZK million CZK million CZK million CZK million Revenues 124 229 99 415 107 160 97 428 85 967 In 2014 Unipetrol Group generated total revenues of CZK 124,229 million, which is 25% more than in 2013. Structure of revenues by business segments Business segment 2014 2013 2012 2011 2010 Revenues in% Revenues in% Revenues in% Revenues in% Revenues in% Downstream 91 89 91 90 90 Retail 9 11 9 10 9 Other 0 0 0 0 1 External revenues in the downstream segment went up by CZK 24,066 million in 2014 compared to the previous year and amounted to CZK 112,947 million. The increase is mainly attributable to higher sales volumes in downstream segment as well as due to better margins in both refining and petrochemical business. External revenues in the retail segment, amounting to CZK 11,190 million in 2014, were by CZK 737 million higher than in the previous year as a result of the new legislative valid since October 2013 mitigating the fuels grey zone, which caused the positive impact on fuel margins and fuel sales. The share of segments’ revenues in Unipetrol Group’s overall structure of revenues changed slightly in comparison with the previous year. The share of the downstream segment increased from 89% to 91%, meanwhile the share of the retail segment decreased from 11% to 9%. The change was due acquisition od Shell’s stake in Česká rafinérská which resulted in increase in share of wholesale.

Individuální účetní uzávěrka UNIPETROL, a .s . PB Management report UNIPETROL, a .s . Annual report 2014 54 Structure of sales revenues by area Area 2014 2013 2012 2011 2010 Revenues in% Revenues in% Revenues in% Revenues in% Revenues in% Czech Republic 67 69 71 71 69 Other European countries 31 29 27 27 28 Other countries 2 2 2 2 3 Compared to 2013, the territorial structure of the Group’s revenues remained stable when the majority was directed toward the EU countries . non-consolidated profit / loss and dividends of UnIPEtROL, a.s.  (CZK million) 2014 2013 2012 2011 2010 Profit for distribution 328 938 404 -230 512 Allocation to the social fund --1) -- -- -- -- Allocation to the reserve fund --1) 47 20 -- 26 Number of profit-bearing shares 181,334,764 181,334,764 181,334,764 181,334,764 181,334,764 Profit/loss per share 1 .81 5 .17 2 .23 (1 .27) 2 .82 Dividend per share (CZK/share) paid from retained profit of previous years --1) -- -- -- -- Total for distribution 328 891 384 -230 487 Profit brought forward as of 31 December 6,331 6,050 5,132 4,716 4,972 1) Dividend policy is not formally established. The decision on the distribution of the profit 2014 will be taken at the Annual General Meeting.

UNIPETROL, a.s. Annual report 2014 55 Management report UNIPETROL, a.s. owns most of the land within the production facilities situated in the cadasters of Kralupy nad Vltavou and Litvínov towns. A major part of this land is situated underneath its subsidiaries’ production facilities. Unipetrol, a.s. also owns several plots of land outside of these production facilities, a part of which is used by its subsidiaries for their activities, e.g. landfills, roads, location of product pipelines etc. The total area of land owned by UNIPETROL, a.s. within the cadasters of Kralupy nad Vltavou is ca 2.496 million sq m and of Litvínov ca 8.866 million sq m. UNIPETROL, a.s. as a non-production company does not own any buildings or equipment on this land, nor has it any oil fields or natural gas production sources of its own. The property, plant and equipment on UNIPETROL, a.s.’s land are owned and operated predominantly by its subsidiaries that have their operations in the industrial facilities. To a lesser extent, other entities not belonging to Unipetrol Group are the owners or tenants of this property, plant or equipment where the subsidiaries have no use for such assets. SYNTHOS Kralupy, a.s. (previously KAUČUK, a.s.), which is not a part of Unipetrol Group any more, is a major owner of buildings and equipment on the premises of the chemical production facilities in Kralupy nad Vltavou. An agreement benefiting SYNTHOS Kralupy, a.s. on the pre-emptive rights to specific land used for its activities was executed on the basis of the agreement on the sale of KAUČUK, a.s. to the new owner, Firma Chemiczna Dwory S.A., Republic of Poland. The pre- emptive rights are registered in the land register. Tangible assets are described in detail in the Notes to the Consolidated Financial Statements. The land owned by UNIPETROL, a.s. is not encumbered by any liens. The land is zoned for industrial activities and its use is governed by easement agreements executed between the owner of the land, UNIPETROL, a.s., and the companies operating on both cadastral areas. The easements are provided for a consideration. The main topic of the 2014 year was the receiving of the second tranche (in amount of CZK 2 billion) of an intercompany mid-term loan agreement between PKN ORLEN and UNIPETROL, a.s. of CZK 4 billion. The purpose of the loan was the diversification of Unipetrol’s funding sources and extension of maturity. Operating financing is mainly provided on the level of the parent company UNIPETROL, a.s. using available resources and, if necessary using operating loans provided by reputable banks. The level of short-term bank loans available to Unipetrol increased to amount CZK 15,219 million in 2014 (including separate open credit line for Unipetrol RPA in amount of CZK 150 million). Thanks to the implementation of new cash pooling structure, which means that Unipetrol Group chose two main reputable banks for cash management, the efficiency of operating financing has improved significantly. Within the scope of operating financing of the parent company UNIPETROL, a.s. the bank guarantees in the total amount of CZK 821 million were provided for Unipetrol RPA’s liabilities (CZK 761 million), Unipetrol Services (CZK 7 million), Benzina’s liabilities (CZK 29 million), and Paramo’s liabilities (CZK 24 million). Other bank guarantees were provided for Unipetrol Slovensko (CZK 541 million), Česká rafinérská (CZK 81 million), Unipetrol Deutschland (CZK 93 million) and Unipetrol RPA (CZK 7 million). Additionally, UNIPETROL, a.s. issued a guarantee for UNIPETROL RPA, s.r.o. in favour of ČEPRO, a.s. to secure an excise tax of CZK 150 million. Property, plant and equipment Capital resources

Individuální účetní uzávěrka UNIPETROL, a .s . PB Management report UNIPETROL, a .s . Annual report 2014 56 Risk management in the Group is provided by the documents “Financial Risk Management Policy” and “Market risk management policy”. These documents define the rules and recommendations governing Financial Management activities in Unipetrol Group companies . The documents create a module of rules and recommendations for risk management and their purpose is to provide a formal framework for treasury operations . Appendices to these documents set out the credit limits for counterparties, dealers’ authority, permitted transactions and the tools for which a special permission is required . The documents define the activities which each of the Treasury departments and, as the case may be, the authorized financial management department of subsidiary Unipetrol Services are authorized to carry out as activities relating to associated (underlying) risks and reducing financial and commodity risks for the Group companies while meeting the conditions for the definition of hedging operations from the IFRS perspective . The applicable financial risk management policy is based on the principle that the Group companies act as conservative entities which on no account use their funds or positions for speculative purposes. Risk management

UNIPETROL, a .s . Annual report 2014 57 Key environmental activities The activities of Unipetrol Group in the area of environmental protection in 2014 focused mostly on securing new obligations arising from the implementation of the directive on industrial emissions and furthermore on monitoring, assessment and preparation of measures for new or amended legal regulations on the level of both the Czech Republic and the EU. In 2013, within the implementation of the provisions of the directive on industrial emissions, an amendment to the Act on Integrated Prevention was issued together with its implementing decree . In 2014, operators of facilities that use, produce or emit dangerous substances representing an environmental hazard for the soil and underground water in the area of the facility were obliged to secure the processing of a background report or reports through a professional entity . All production companies in Unipetrol Group fulfilled this obligation and presented the basic reports to the appropriate regional offices together with a request for the change of integrated permits. Based on an agreement between the production companies, so-called facility reports were processed for the production facilities in Litvínov and Kralupy nad Vltavou; these provide a complete overview of the state of soil and underground water pollution within these facilities . Companies within Unipetrol Group have either directly or through unions and non-government organizations participated in the preparation and reviewing process of other new legal regulations of the Czech Republic and the EU as well as of follow-up documents (e.g. BREF documents). In 2014, the BREF document for refining of mineral gases and oils was finalized and the conclusions on BAT were issued in the form of a European Commission decision . At the same time, work on the BREF documents for large combustion facilities, large-volume organic chemicals and cleaning of waste water and gas continued. Development of selected indicators of the environmental performance of Unipetrol Group Carbon dioxide emissions based on the EU Emissions Trading System (EU ETS) The commencement of the second trading period from 1 January 2008 was connected with stricter conditions for monitoring and reporting of greenhouse gas emissions after the end of certain exceptions valid in the first period. Within the new allocation plan issued within Government Decree No. 80/2008 for the trading period of 2008 - 2012, allowances were also issued to Unipetrol Group companies. The third trading period, which will last until 2020, began in 2013. The third trading period saw a significant increase in the number of monitored sources of CO 2 emissions and a change in the methods used to calculate, monitor and report the amount of CO 2 emissions. The calculation of freely allocated allowances also saw significant changes. Key environmental activities

UNIPETROL, a.s. Annual report 2014 58 Key environmental activities Allocation of allowances to Unipetrol Group companies based on the National Allocation Plan for 2005 - 2007 and 2008 - 2012, totalallocationfor2013-2020andactualCO 2 emissionsbetween2005-2014(actualemissions-verifiedbyanexternalcompany) Allocation of allowances (ths units) Actual emissions (kt/y) Unipetrol RPA Česká rafinérská 1) Paramo Unipetrol Group Annual allocation based on NAP 2005-2007 3,495 1,100 270 4,865 2005: actual CO 2 emissions 3,071 803 194 4,068 2006: actualCO 2 emissions 3,092 910 196 4,198 2007: actual CO 2 emissions 2,889 904 191 3,984 Annual allocation based on NAP 2008-2012 3,121 867 199 4,187 2008: actual CO 2 emissions 2,762 910 176 3,848 2009: actual CO 2 emissions 2,558 806 172 3,536 2010: actual CO 2 emissions 2,468 883 170 3,521 2011: actual CO 2 emissions 2,136 835 148 3,119 2012: actual CO 2 emissions 1,944 856 95 2,895 Total allocation for 2013-2020 10,351 2) 6,494 680 17,525 2013: actual CO 2 emissions 3,062 772 47 3,881 2014: actual CO 2 emissions 3,138 877 37 4,052 1) 100% of Česká rafinérská. 2) 2013-2020 saw a significant increase of the number of sources of greenhouse gas emissions included in EU ETS. Allocation may change in the future due to changes in the operation of facilities. Based on the verification of the annual reports for 2014, it can be said that the assigned amount of allowances per year in Unipetrol RPA covers ca 42% of its annual emissions. The deficit in the number of allowances in 2014 was partially covered by the remaining allo- wances from the previous period, while the remainder of the deficit was covered by usage of allocation of allowances for the next year. Development of emissions of selected pollutants Emissions of pollutants into the environment were stabilized over the past four years on the level achieved after the massive environmental investments implemented within the previous decade. The reduction of SO2 emissions in Česká rafinérská and Unipetrol RPA in comparison with 2011 and 2012 was caused by carrying out extensive repairs of facilities for the production of liquefied sulphur and their subsequent problem-free operation. Sulphur dioxide emissions in Group companies (t/year) Year 2009 2010 2011 2012 2013 2014 Unipetrol Group 14,260 11,070 14,648 13,760 7,084 6,307 COD pollutant emissions in Group companies (t/year) Year 2009 2010 2011 2012 2013 2014 Unipetrol Group 983 729 519 459 431 432 BOD pollutant emissions in Group companies (t/year) Year 2009 2010 2011 2012 2013 2014 Skupina Unipetrol 220 175 112 107 90 73

UNIPETROL, a.s. Annual report 2014 59 Prevention of serious accidents in compliance with Act No. 59/2006 Coll. In 2014, the companies within Unipetrol Group did not experience any accidents classified by Act No. 59/2006 Coll. as a serious accident. A fine of CZK 350 thousand was issued and paid in relation to an exceptional event caused by the overflowing of the VR10 tank with diesel on 17 October 2013 in Paramo. Within the integrated inspection as per Act No. 59/2006 Coll. on 5 and 6 November 2014, the inspecting body (Czech Environmental Inspectorate - CEI) was informed of the performance of the partial measures specified in the Final Report on the Occurrence of a Serious Accident. It was stated that the adopted measures were being implemented and that they were functional. At the same time, the joint protocol from the integrated protocol presented the disagreement of Paramo with the incorrect methodological assessment of the event which led to the classification of the event under the Act on Prevention of Serious Accidents. Other operating accidents that occurred during the year were handled with our own resources or with the help of the company’s fire-fighting and emergency forces, and were followed up by adequate reactions to remove their consequences and ensure that they are not repeated. The effects of minor operating accidents did not extend beyond the premises of the companies of the Group. Mitigation of old environmental burdens Based on the government decree of the Czech government on privatization, companies within Unipetrol Group have concluded with the Ministry of Finance of the Czech Republic the following contracts on the resolution of environmental obligations from before their privatization (the Environmental Contract): UNIPETROL, a.s., (the successor of CHEMOPETROL Group, a.s.) concluded contract no. 14/94, as amended by amendment no. 3 of 25 January 2005; UNIPETROL, a.s., (successor of KAUČUK Group, a.s.) concluded contract no. 32/94, as amended by amendment no. 1 of 4 July 2001; PARAMO, a.s., concluded contract no. 39/94 as amended by amendment no. 2 of 4 July 2001 and contract no. 58/94 as amended by amendment no. 3 of 26 September 2008; BENZINA, s.r.o., concluded contract no. 184/97 as amended by amendment no. 7 of 18 January 2007. Active sanitation work in the production facilities of Litvínov took place in 2014 in the form of sanitation of underground water and draining of underground drains. The construction of a sanitation drain continued in the areas of the former lagoons in Růžodol. Water from the sanitation system in the area of the former phenol production plant was drained. Preparation works and finalization of project documentation for the period until 2016 took place in the other areas of the Litvínov facility. Work on processing of the updated analysis of risks in the facility and its surroundings continued. Protective redevelopment pumping of plume E continued in the Kralupy nad Vltavou facility. The feasibility study for sanitation work in the Kralupy facility was completed and approved. UNIPETROL, a.s. requested the CEI to issue a decision defining the conditions for the sanitation of the facility. Pre-sanitation monitoring of the effects of the landfill on underground and surface water continued at the Nelahozeves landfill. A tender for the sanitation of the Nelahozeves landfill was cancelled due to process errors. The sanitation of underground water took place in Paramo (HS Pardubice facility), and the drainage of sanitation drains was carried out in U Trojice. The sanitation of the Nová Ves landfill was carried out, along with the protective sanitation drainage of the Časy landfill and the LIDL site. Sanitation of underground water took place in HS Kolín. Maintenance sanitation work (protective sanitation drainage) took place in Benzina, specifically in the distribution warehouses of Nový Bohumín, Šumperk and Točník. Sanitation work is under way on the Čáslav filling station and in-site sanitation was completed on the Mikulov - Brněnská filling station. The physical part of sanitation work was completed in the filling stations of Tachov, Nová Ves, Frýdek- Místek – Beskydská and Zábřeh. The final inspection day will be announced soon, which will also include the completion of the final report for the CEI. Other sites are in the phases of survey completion, processing of sanitation projects, tenders for protective draining, monitoring or post-sanitation monitoring. AnoverviewofMFČRfinancialguaranteesandutilizationoffinancialresourcesinUnipetrolGroup(CZKmillion) Unipetrol Litvínov Unipetrol Kralupy Paramo Kolín Paramo Pardubice Benzina Group total MF ČR financial guarantee 6,012 4,244 1,907 1,241 1,349 14,753 Costs covered by MF ČR in 2014 180 2 34 21 13 250 Costs covered by MF since the start of the works 3,868 51 1,728 500 471 1) 6,618 Expected costs for future work 2,839 766 277 2,815 888 7,585 Total (estimated) remediation costs 6,707 817 2,005 3,315 1,359 14,203 Balance of MF’s financial guarantees (695) 3,427 (99 2)) (2,073 2)) (10) 550 1) Benzina – excluding costs of BENZINA, s.r.o. spent on remediation works until 1997 in the amount of ca CZK 500 m. 2) Paramo – applications for increase of the guarantees for Pardubice and Kolín plants were submitted to the Ministry of Finance of the Czech Republic. Key environmental activities

UNIPETROL, a.s. Annual report 2014 60 Key environmental activities Costs for environmental protection Environmental investments Environmental investments are defined as investment events directly caused by the requirements of legal regulations for the protection of the environment and which are closely related to the application of integrated prevention of pollution in practice. The following significant environmental investments were realized in Unipetrol Group in 2014: Česká rafinérská Česká rafinérská implemented environmental investment projects totalling CZK 177.1 million. These primarily include: • Reconstruction of the wastewater treatment plant in Kralupy – in 2013, the execution of the project of the reconstruction of the wastewater treatment plant in Kralupy required in the valid IPPC began. The project is managed with the objective to secure the compliance of the treatment plant with the requirements for the best available technologies (BAT). The project is expected to be completed by the end of 2015. • Reconstruction of the sewerage in Kralupy – two projects for the reconstruction of the existing sewerage have been prepared. The parts of the sewerage with the possible occurrence of MTBE were selected as preferential and they have been addressed first. This project has already been executed and completed. The second project which addresses the reconstruction of the remaining part of the sewerage is currently in the project documentation preparation stage. Its completion is planned for 2015. • The project for the expansion of sanitation system at the tank farm in Jiřetín and the road terminal at the Litvínov refinery began in 2014. The completion of the project is planned in 2015. • The reconstruction of the Visbreaker unit sewerage began in 2014. Its completion is planned for 2015. • Modernization of the MEA system in Litvínov – the project for the modernization of the amine units purifying gases including regeneration has started. The main part of the project will be conducted during the planned turnaround in 2016. • The project for the reconstruction of a gas boiler at the LPG warehouse in the Kralupy refinery was implemented. • The preparation of a project for the reconstruction of a runoff system in the New Refinery Litvínov has been launched. Unipetrol RPA Unipetrol RPA realized investments projects in the area of environmental protection with a total cost of CZK 63.1 million. This includes especially: • Seregation of waste water, 3rd and 4th stage • Preparation of installation of DENOx technology at the T700 heating plant • Redevelopment of sewage water system including shafts in the area of the steam cracker • Securing of water engineering aspects in manipulation areas of the steam cracker • Construction of a facility for the cleaning of tanks of the final mechanical cleaning station • Replacement of filters on homogenization silos of the polypropylene production plant • Procession of feasibility study for the reconstruction of the energy center of the steam cracker A range of other measures with a positive impact on the environment was realized within the operating costs for facility maintenance. Paramo Paramo realized investments projects in the area of environmental protection with a total cost of CZK 9.8 million. This includes especially: • Completion of redevelopment of the VR52 tank at the P02 unit (HS Pardubice), • Change of solvent at the selective refining unit (HS Pardubice), from original cresol to the more environment-friendly N-Methyl 2-Pyrrolidon (compliance with BAT) Benzina Benzina realized projects in the area of environmental protection with a total cost of CZK 2.0 million. This includes especially: • Replacement of unsatisfactory ORL within redevelopment of filling station 126 Dobřany. • New connection of waste water systems into the public sewage water network at the filing stations Úvaly and Telč. • Replacement of old single-coating piping by dual-coating piping with continuous indication of the inter-case at the filling stations Pelhřimov, Nová Paka, Písek and Stará Ves nad Ondřejnicí. • Continuation of the project for the change of the method used to remove rainwater, in various phases of realization ranging from feasibility studies to commencement of construction processes. This project includes 50 Benzina filling stations.

UNIPETROL, a.s. Annual report 2014 61 Key environmental activities Capital expenditures on environmental protection in the Group (CZK million) Year 2009 2010 2011 2012 2013 2014 Unipetrol Group 200 153 281 213 117 252 Environmental operating costs Costs associated with the operation of facilities for the protection of air purity, cleaning of waste water, waste management, operation of environmental management systems, monitoring of substances released into the environment, assessment of environmental impacts (EIA process), integrated prevention of pollution and other related environmental activities are all jointly referred to as environmental operating costs. The development of environmental operating costs in 2009 - 2014 is provided in the following overview. Operating costs on environmental protection in the Group (CZK million) Year 2009 2010 2011 2012 2013 2014 Unipetrol Group 808 902 841 734 679 617 Total environmental costs Total environmental costs in Unipetrol Group include costs for environmental investments, operating costs for environmental protection, costs for the sanitation of old environmental damages as well as fees for air pollution, discharge of waste water, storage of waste on landfills, creation of reserves for recultivation of landfills and compensation for imission damage to forests. The development of total environmental costs in 2009 - 2014 is provided in the following overview. Total costs on environmental protection in the Group (CZK million) Year 2009 2010 2011 2012 2013 2014 Unipetrol Group 1,538 1,820 1,576 1,434 1,317 1,163 The “Responsible Undertaking in the Field of Chemistry - Responsible Care” Program The Responsible Care program (hereinafter RC) is a voluntary global initiative of the chemical industry that focuses on supporting its sustainable development through increasing the security of operated facilities, transportation of products, improved protection of human health and the environment. The program represents a long-term strategy coordinated by the International Council of Chemical Associations (ICCA) and in Europe by the European Chemical Industry Council (CEFIC). The contribution of the RC program to sustainable development was awarded the U.N. Environment Award on the international summit in Johannesburg. The national version of the RC program is called Responsible Business in Chemistry (Odpovědné podnikání v chemii). It was officially announced in October 1994 by the Ministry of Industry and Trade and the President of the Association of Chemical Industry of the Czech Republic (SCHP ČR), and complies with the conditions of the Responsible Care Global Charter since 2008. In 2014, the right to use the logo of the Responsible Care program was once again granted to UNIPETROL, a.s., UNIPETROL RPA, s.r.o., UNIPETROL DOPRAVA, s.r.o., and for the first time also to UNIPETROL SERVICES, s.r.o. based on successful defense proceedings. Česká rafinérská, a.s. and PARAMO, a.s. continue to adhere to the principles of the program, but do not utilize the right to use the RC logo since they are no longer members of SCHP ČR. Detailed information on the achieved results in the area of environmental protection is available in a separate “Joint report on work safety, the protection of health and environmental protection in Unipetrol Group” and on the company’s website www.unipetrol.cz.

Structure of the Group UNIPETROL, a .s . Annual report 2014 62 “We strive for leadership and openness, respecting people´s values in generating value for the company.” PEOPLE

Structure of the Group UNIPETROL, a.s. Annual report 2014 63 UNIPETROL, a.s. is the parent company of Unipetrol Group. It is a company with a majority owner and as such it is a controlled entity. The major shareholder or the majority owner respectively, is Polski Koncern Naftowy Orlen Spółka Akcyjna (“PKN ORLEN S.A.”). Controlling person Interest with voting rights as of 31 December 2014 Controlling agreement PKN ORLEN S.A., ul. Chemików 7, 09- 411 Płock Republic of Poland 62,99% 1) none 1) Unless stated below that the ownership interest is different from the proportion of voting rights, it can be assumed that both proportions are identica. The remaining shares of the company (37.01%) are held by minority shareholders, both legal entities and natural persons. PKN ORLEN S.A. is the parent company of Orlen Group and UNIPETROL, a.s. together with the companies controlled by it (“Unipetrol Group”) are among the key members of Orlen Group. UNIPETROL, a.s. is independent of all other entities in Orlen Group. There are no known arrangements that could result in a change in control over the company. In accordance with Section 18.3 of Attachment I of the Commission regulation no. 809/2004, related to the directive of the European Parliament and Council 2003/71/ES UNIPETROL, a.s., states that the scope of activities, rights and obligations of the shareholders, including the control limits, result from the Articles of Association of UNIPETROL, a.s. Supervisory Board is the controlling body of UNIPETROL, a.s. In its internal regulations UNIPETROL, a.s., in order to prevent abuse of controlling possibilities, regulates methods and possibilities of information providing, where the rule of equal treatment of all the shareholders applies. The Orlen Group companies operate in the area of crude oil processing and the production of a broad range of refinery, petrochemical and chemical products, and also in the transport, wholesaling, and retailing of these products. The Orlen Group also includes companies operating in some other related areas. The key companies of the Orlen Group operate in Poland, the Czech Republic, Lithuania, and Germany. The Group has 6 refineries: 3 in Poland (Płock, Trzebinia, and Jedlicze), 2 in the Czech Republic (Litvínov and Kralupy) and 1 in Lithuania (Mazeikiu). The integrated refinery and petrochemical complex in Płock is among the most advanced European operations of this type. Retail network of Orlen Group comprises approximately 2,700 outlets offering services in Poland, Germany, the Czech Republic, and Lithuania. In Poland, fuel filling stations operate under two brands: ORLEN (the premium brand) and BLISKA (the economy brand). Clients in Germany are served at stations branded STAR, and in the Czech Republic at outlets bearing the standard Benzina and the premium Benzina Plus logos. Fuel filling stations in Lithuania operate under the Orlen Lietuva and Ventus brands. In 2014 PKN ORLEN made consistent progress on its development projects in the upstream and power segments. In December 2014, PKN launched the construction of a 596 MWe CCGT unit in Płock by signing a turn-key delivery contract. The project is planned to come on stream at the end of 2017 and is expected to be an important contributor to the downstream segment‘s operational excellence. During 2014 PKN ORLEN proceeded on schedule with the construction of a 463 MWe unit in Włocławek. Start-up of production is planned at the end of 2015. In 2014 in the upstream segment PKN ORLEN acquired new production assets in Canada - Birchill Exploration LP. Through consistent development of its presence on the Canadian market, PKN ORLEN increased its aggregate oil and gas reserves in Canada to ca. 49.5 mboe (2P) as at the end of 2014. PKN ORLEN S.A. PKN ORLEN S.A. is the parent company of Orlen Group and operates as a public company whose shares are quoted and traded on the Warsaw Stock Exchange. Orlen Group Structure of the Group

 Structure of the Group UNIPETROL, a.s. Annual report 2014 64 PKN ORLEN S.A. shareholders structure as of 31 December 2014 Shareholder Number of shares Number of votes Share capital in % Number of votes in % Polish State Treasury 117,710,196 117,710,196 27.52% 27.52% Aviva OFE (fond) 1) 30,000,000 30,000,000 7.01% 7.01% ING OFE (fond) 1) 40,000,000 40,000,000 9.35% 9.35% Others 239,998,865 239,998,865 56.11% 56.11% Total 427,709,061 427,709,061 100.00% 100.00% 1) According to the information from the Ordinary Shareholders Meeting of PKN ORLEN held on 15 May 2014. According to Polish capital market regulations PKN ORLEN receives information only about shareholders holding at least 5% of the total number of votes at the general meeting. According to Article 69 of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading and on Public Companies, dated 29 July 2005 (Journal of Laws 2013, item 1,382) entity or person which achieved or exceeded 5% of the total number of votes at the general meeting in a public company is obliged to immediately inform this company and the Polish Financial Authority about this change. Main companies of Orlen Group Company Based at Country PKN Orlen S.A.’s percent- age of capital Area of business AB ORLEN Lietuva Juodeikiai Lithuania 100.00% refineries ANWIL S.A. Włocławek Poland 100.00% chemicals ORLEN Asfalt Sp. z o.o. Płock Poland 100.00% bitumen ORLEN Deutschland GmbH Elmshorn Germany 100.00% retail ORLEN GAZ Sp. z o.o. Płock Poland 100.00% LPG ORLEN Paliwa Sp. z o.o. Płock Poland 100.00% wholesale of liquid fuels ORLEN PetroTank Sp. z o.o. Płock Poland 100.00% wholesale of liquid fuels, warehousing, transport UNIPETROL, a.s. Prague Czech Rep. 62.99% refineries, petrochemicals, retail AB ORLEN Lietuva The main operations of ORLEN Lietuva are crude oil processing, production of refining products and wholesale of company’s products on the local market as well as inland export and seaborne though seacoast terminal Klajpedos Nafta. In July 2014 PKN ORLEN acquired AB VENTUS Nafta (which was in ORLEN Lietuva Group), which operates in retail sales on the Lithuanian market. ANWIL S.A. ANWIL Group is a producer of nitrogen fertilizers, plastics (PVC, PVC granules and PVC sheets) and chemicals for manufacturing industry and for agriculture (ammonium, chlorine, nitric acid, industrial salt and caustic soda. ORLEN Asfalt Sp. z o.o. Operations of ORLEN Asfalt Sp. z o.o. are: production and sales of road asphalt, modified, multi-type, industrial and asphalt specifics.

Structure of the Group UNIPETROL, a .s . Annual report 2014 65 ORLEn Deutschland GmbH ORLEN Deutschland GmbH conducts mainly retail sales and wholesales of fuels in Germany. ORLEn GAZ Sp. z o.o. ORLEN GAZ Sp. z o.o. is operating in the wholesales of liquid petroleum gas (LPG), specializes in distribution of gas cylinders and realization of installations for liquid gas. ORLEn Paliwa Sp. z o.o. ORLEN Paliwa Sp. z o.o. is the market operator dealing with bulk liquid fuel sales produced by PKN ORLEN. ORLEn Petrotank Sp. z o.o. ORLEN PetroTank Sp. z o.o. provides wholesale distribution and sales of liquid fuels, warehousing services for PKN ORLEN and logistic services . Rafineria trzebinia S.A. The business activity of the company composes of: crude oil processing, production and sales of biofuels and oils, logistic and warehousing services . In December 2014 Extraordinary General Meeting of Rafineria Trzebinia S.A. and Rafineria Nafty Jedlicze S.A. decided to merge the companies. On 5 January 2015 merge of the companies was registered by a court. The new company changed the name to ORLEN Południe S.A. Unipetrol Group Unipetrol Group consists of companies operating in the refinery processing of crude oil, in the petrochemical industry, and in fuels distribution . In 2014 the key companies of the Group included the following subsidiaries: • UNIPETROL RPA, s .r .o . • BENZINA, s .r .o . • ČESKÁ RAFINÉRSKÁ, a.s. • PARAMO, a .s . In addition to the above key companies, the Group also includes a number of smaller companies focusing on distribution, services, and research . For more details on the key companies of the Group, see the chapter Ownership interests . As of 31 December 2014, UNIPETROL, a .s . was the sole member or shareholder of UNIPETROL RPA, s .r .o ., BENZINA, s .r .o ., UNIPETROL SERVICES, s.r.o., PARAMO, a.s., Výzkumný ústav anorganické chemie, a.s. [Research Institute of Inorganic Chemistry], UNIPETROL RAFINERIE, s.r.o. (company does not conduct any business) and UNIPETROL AUSTRIA GmbH, in liquidation. It was also the majority shareholder of ČESKÁ RAFINÉRSKÁ, a.s. with 67.555% stake. The Group also included companies in which its subsidiaries were the sole or majority owners . As of 31 December 2014 these were UNIPETROL DOPRAVA, s.r.o., UNIPETROL SLOVENSKO s.r.o., POLYMER INSTITUTE BRNO, spol. s  r.o., HC VERVA Litvínov, a.s., CHEMOPETROL, a.s. (company does not conduct any business), PETROTRANS, s.r.o., MOGUL SLOVAKIA, s.r.o., UNIPETROL DEUTSCHLAND GmbH, CHEMAPOL (SCHWEIZ) AG in liquidation, and PARAMO Oil, s.r.o. UNIPETROL, a.s. has no organizational units in the Czech Republic or abroad.

 Structure of the Group UNIPETROL, a.s. Annual report 2014 66 Other selected companies of the ORLEN Group Company’s name The scope of business Production and trading companies ORLEN Oil Sp. z o.o. (together with its own Capital Group) production, distribution and sale of grease oils, lubricants, oil bases, car care products and maintenance liquids ORLEN Południe S.A.1) crude processing, production and marketing of fuels Inowrocławskie Kopalnie Soli SOLINO S.A. oil and fuels warehousing, packaging of salt and salt products, brine extraction Trading companies Petrolot Sp. z o.o. distribution of aviation and automotive fuels, fuels warehousing, storing, filling, and dispatching services Service companies ORLEN KolTrans Sp. z o.o. rail transport of goods, rail servicing of loading and discharge, product shipping, repairs and upgrade of railway rolling stock ORLEN Transport S.A. transport of fuels, liquid gas and heavy chemicals ORLEN Automatyka Sp. z o.o. maintenance and overhaul services, assembly services, operation of automatic control engineering equipment, devices and systems ORLEN Wir Sp. z o.o. day-to-day and major overhauls of compressors, centrifuges, locomotive engines and engines- generators, upgrades of compressors and turbines structures as well as technical advisory ORLEN Eko Sp. z o.o. waste management with the use of waste recovery and disposal installation, including among others hazardous waste, provision of safety and hygiene services, fire precaution and environment protection services, rescue and fire equipment maintenance Upstream activity ORLEN Upstream Sp. z o.o. prospecting for and discovery of hydrocarbons, upstream of crude oil and natural gas, prospecting for exploration and exploitation of crude oil and natural gas deposits 1) ORLEN Południe S.A. was established due to merger of Rafineria Nafty Jedlicze S.A. and Rafineria Trzebinia S.A.

Structure of the Group UNIPETROL, a.s. Annual report 2014 67 As of the Annual Report approval date: Structure of the Group

UNIPETROL, a .s . Annual report 2014 68 Ownership interests Ownership interests of parent company UnIPEtROL, a.s. On 6 August 2014, UNIPETROL, a .s . (“Unipetrol”) signed a share purchase agreement (SPA) with Eni International B .V ., (“Eni”) regarding Eni’s 32.445% ownership interest on the share capital of ČESKÁ RAFINÉRSKÁ, a.s. (“Česká rafinérská”). The liquidation process of UNIPETROL AUSTRIA GmbH is ongoing. There were no other changes during 2014 and during 2015 till the Annual Report approval date . Ownership interests of subsidiaries UnIPEtROL RPA, s.r.o. UNIPETROL RPA, s.r.o. holds equity interests in UNIPETROL DOPRAVA, s.r.o. (99.9%), POLYMER INSTITUTE Brno, spol. s r.o. (99%), UNIPETROL SLOVENSKO s.r.o. (87%), UNIPETROL DEUTSCHLAND GmbH (99,9%), CHEMAPOL (SCHWEIZ) AG in liquidation (100%), CHEMOPETROL, a.s. (100%) and HC Verva Litvínov, a.s. (70.95%), which did not change during 2014 and during 2015 till the Annual Report approval date on 24 March 2015 . CHEMAPOL (SCHWEIZ) AG was put under liquidation on 1 June 2010 due to the restructuring process of UNIPETROL TRADE Group. The liquidation of CHEMAPOL (SCHWEIZ) AG was completed on 12 June 2013. PARAMO, a.s. PARAMO, a .s . is the sole owner of MOGUL SLOVAKIA, s .r .o . and PARAMO Oil, s .r .o . There were no changes during 2014 and during 2015 till the Annual Report approval date on 24 March 2015 . Ownership interests Changes in ownership interests of Unipetrol Group

UNIPETROL, a.s. Annual report 2014 69 Ownership interests Ownership interests held by UNIPETROL, a.s. as of 31 December 2014 Company Based at Company No. Registered capital Ownership interest % of registered capital UNIPETROL RPA, s.r.o. Litvínov, Záluží 1 275 97 075 CZK 11,147,964,000 100.00 BENZINA, s.r.o. Praha, Na Pankráci 127 601 93 328 CZK 1,860,779,000 100.00 UNIPETROL SERVICES, s.r.o. Litvínov, Záluží 1 276 08 051 CZK 100,200,000 100.00 Výzkumný ústav anorganické chemie, a.s. Ústí nad Labem, Revoluční 84 622 43 136 CZK 60,000,000 100.00 UNIPETROL RAFINÉRIE, s.r.o. Litvínov, Záluží 1 27 885 429 CZK 200,000 100.00 PARAMO, a.s. Pardubice, Svítkov Přerovská 560 481 73 355 CZK 2,036,078,000 100.00 ČESKÁ RAFINÉRSKÁ, a.s. Litvínov, Záluží 2 627 41 772 CZK 9,348,240,000 67.555 Butadien Kralupy a.s. Kralupy nad Vlt. O. Wichterleho 810 278 93 995 CZK 300,000,000 51.00 UNIPETROL SLOVENSKO s.r.o. Bratislava, Panónská cesta 7 357 77 087 EUR 7,635 13.04 UNIVERSAL BANKA, a.s. in receivership Praha, Senovážné náměstí 1588/4 482 64 865 CZK 1,520,000,000 16.45 UNIPETROL DEUTSCHLAND GmbH Langen/Hessen, Paul-Ehrlich-Str. 1B, Německo TAX 04424705213 1,048,000 EUR 0.10 UNIPETROL AUSTRIA GmbH, in liquidation Vídeň, Apfelg. 2, Rakousko (ID) 1549510 145,345.67 EUR 100.00 UNIPETROL DOPRAVA, s.r.o. Litvínov, Růžodol 4 64049701 CZK 806,000,000 0.12 POLYMER INSTITUTE BRNO, spol. s r.o. Brno, Tkalcovská 36/2 60711990 CZK 97,000,000 1.00 PETROTRANS, s.r.o. Praha 8, Střelničná 2221 25123041 CZK 16,000,000 0.63 ORLEN HOLDING MALTA Malta, Level 1, 36, Strand Towers, The Strand, Sliema SLM 1022 C 39945 5,050,000 USD 0.50

UNIPETROL, a.s. Annual report 2014 70 Ownership interests Key financial data of the main subsidiaries presented in the following tables were used in the consolidated financial statements of UNIPETROL, a.s. UNIPETROL RPA, s.r.o. Registered office: Litvínov, Záluží 1, 436 70 Company No.: 27597075 The company is successor in title to the dissolved companies CHEMOPETROL, a.s. and UNIPETROL RAFINÉRIE a.s., which ceased to exist on 1 August 2008 upon merger with UNIPETROL RPA, s.r.o. Ownership structure as of 31 December 2014 and 24 March 2015: UNIPETROL, a.s. holds 100% of the registered capital. Basic characteristics of the company The company has one production and three business units (“BU”) based on product types. The production unit consists of the Chemical Production section, the Energy section, and the Services section. The Chemical Production section operates manufacturing units according to the plans and requirements of business units. It comprises a steam cracker, a polypropylene and polyethylene plant, production of hydrogen, production of ammonia and urea, the Chezacarb plant for the production of carbon black, and production and supply of industrial gases for the entire premises. The Energy section supplies the entire premises with energies and water and is responsible for wastewater treatment. The Services section is responsible for the management of the facilities within the premises and for the logistics of plastics, urea, and Chezacarb. BU REFINERY plans and controls crude oil processing at Česká rafinérská in accordance with the ownership rights of UNIPETROL, a.s., with a specific focus on the requirements of the downstream production processes in Unipetrol Group. It is responsible for the purchase of crude oil for the Group’s refineries and also for the wholesaling of motor fuels and other refinery products. BU MONOMERS AND CHEMICALS plans and controls the production downstream from crude oil processing. It provides feedstock for the production of polyolefins and sells petrochemical products, ammonia, and urea. BU POLYOLEFINS operates in the area of plastics – polyolefins. It plans production in the plants that produce polypropylene (PP) and high density polyethylene (HDPE) and is responsible for the sale of finished products (PP, HDPE). Key products and services Motor fuels, fuel oils, bitumen, liquefied petroleum products, oil hydrogenates, other refinery products, olefins and aromatics, agrochemicals, alcohols, carbon black and sorbents and polyolefins (high density polyethylene, polypropylene). Major ownership interests Company Based at Company No. Registered capital Ownership interest % of registered capital UNIPETROL DOPRAVA, s.r.o. Litvínov 64049701 CZK 806,000,000 99.88 UNIPETROL SLOVENSKO s.r.o. Bratislava 35777087 EUR 7,635 86.96 POLYMER INSTITUTE BRNO, spol. s r.o. Brno 60711990 CZK 97,000,000 99.00 UNIPETROL DEUTSCHLAND GmbH Langen/Hessen 04424705213 EUR 1,048,000 99.90 HC VERVA Litvínov, a.s. Litvínov 640 48 098 CZK 21,000,000 70.95 Main subsidiaries

UNIPETROL, a.s. Annual report 2014 71 Ownership interests Key financial data of UNIPETROL RPA, s.r.o. (under IFRS) 1) (in CZK thousand) 2014 2013 2012 2) 2011 2010 Total assets 36,839,738 35,111,715 34,594,261 36,233,751 35,666,150 Equity 8,923,348 6,352,795 8,066,486 7,713,879 12,564,248 Registered capital 11,147,964 11,147,964 11,147,964 11,147,964 11,147,964 Liabilities 27,916,390 28,758,920 26,527,775 28,519,871 23,101,901 Total revenues 115,784,644 91,177,542 99,205,899 91,768,413 78,640,994 Operating profit / (loss) 1,923,628 (1,689,361) (361,396) (4,734,976) 563,583 Profit before tax 1,811,678 (1,667,932) (423,155) (4,991,055) 290,075 Profit for the accounting period 1,847,933 (1,538,452) 280,319 (4,788,086) 242,716 1) Unconsolidated data under IFRS 2) Restated Source: Transformed financial statements under IFRS. BENZINA, s.r.o. Registered office: Praha 4, Na Pankráci 127, 140 00 Company No.: 60193328 Core business Operation of fuel filling stations in the Czech Republic. Ownership structure as of 31 December 2014 and 24 March 2015: UNIPETROL, a.s. holds 100% of the registered capital. Basic characteristics of the company The company operates the largest nationwide network of fuel filling stations in the Czech Republic, where it sells fuels and other goods and services to the general public. Ownership interest Company Based at Company No. Registered capital CZK Ownership interest % of registered capital PETROTRANS, s.r.o. Prague 25123041 16,000,000 99.37 Key financial data of BENZINA, s.r.o. (under IFRS) 1) (in CZK thousand) 2014 2013 2012 2011 2010 Total assets 6,079,132 6,040,761 6,573,407 6,836,877 6,694,078 Equity 3,442,606 3,164,703 3,168,229 3,226,785 3,113,757 Registered capital 1,860,779 1,860,779 1,860,779 1,860,779 1,860,779 Liabilities 2,636,526 2,876,058 3,405,178 3,610,092 3,580,321 Total revenues 2) 11,263,960 10,543,572 10,445,125 9,892,207 8,624,493 Operating profit / (loss) 324,517 142,452 130,013 292,960 483,265 Profit before tax 328,731 (11,044) (36,256) 127,976 312,188 Profit for the accounting period 277,906 (3,515) 1,278 113,028 263,501 1) Unconsolidated under IFRS 2) In comparison with the financial statements of BENZINA, s.r.o., total revenues in this table are shown without excise tax. Source: Transformed financial statements under IFRS.

UNIPETROL, a.s. Annual report 2014 72 Ownership interests ČESKÁ RAFINÉRSKÁ, a.s. Registered office: Litvínov, Záluží 2, 436 70 Company No.: 62741772 Core business Refinery processing of crude oil (a processing [cost center] refinery). Ownership structure as of 31 December 2014: UNIPETROL, a.s. 67.555% ENI International B.V. 32.445% Ownership structure as of 24 March 2015: UNIPETROL, a.s. 67.555% ENI International B.V. 32.445% Basic characteristics of the company The company operates the two largest refineries in the Czech Republic, located in Litvínov and in Kralupy nad Vltavou, with a combined capacity of 8.7 million tons of feedstock annually. It is the largest processor of crude oil and producer of petroleum products in the Czech Republic. Based on a processing agreement entered into by the company and the shareholders’ subsidiaries in January 2003, it started operating in the processing mode on 1 August 2003, under which the said companies (referred to as the processors) purchase crude oil and other feedstock for processing in the refineries and then take and trade in the processing products. Key products and services Automotive gasoline, jet kerosene, diesel oil, LPG, fuel oils, propylene (for chemical syntheses), bitumen, sulphur, oil hydrogenates (feedstock for the production of lubricating oils) and feedstock for the ethylene unit and for partial oxidation in Unipetrol RPA’s production unit. Key financial data of ČESKÁ RAFINÉRSKÁ, a.s. (under IFRS) (in CZK thousand) 2014 2013 2012 2011 2010 Total assets 9,267,190 15,628,933 16,541,481 24,146,521 25,189,572 Equity 4,056,052 9,558,379 10,733,316 17,054,888 18,216,007 Registered capital 9,348,240 9,348,240 9,348,240 9,348,240 9,348,240 Liabilities 5,211,138 6,070,553 5,808,166 7,091,632 6,973,564 Total revenues 9,131,850 8,834,447 9,711,405 9,051,131 9,731,963 Operating profit / (loss) (6,165,710) 748,240 (7,470,600) 273,994 528,331 Profit before tax (6,165,040) 754,045 (7,449,411) 293,324 551,150 Profit for the accounting period (4,998,903) 625,067 (6,046,688) 238,892 436,654 Source: Transformed financial statements under IFRS of Česká rafinérská, used for consolidated financial statements of UNIPETROL, a.s., 100% stake.

UNIPETROL, a.s. Annual report 2014 73 Ownership interests PARAMO, a.s. Registered office: Pardubice, Svítkov, Přerovská 560, 530 06 Company No.: 48173355 Core business Production of bitumen products, lubricating and process oils, including related and ancillary products, using imported feedstock. Provision of services in the area of fuels storage and distribution. Ownership structure as of 31 December 2014 and 24 March 2015: UNIPETROL, a.s. holds 100% of the registered capital Basic characteristics of the company The company has a tradition of more than a hundred years in crude oil processing and in the production of fuels, lubricants, and bitumen. In July 2012 Unipetrol Group announced permanent discontinuation of crude oil processing in the Pardubice refinery. Paramo focuses on oils business, production of special bitumen and bitumen products after the shutdown of the refinery part of the company. The company places its products primarily on the domestic market. Providing services in the area of fuels storage and distribution for sister company Unipetrol RPA is a new business element after the shutdown of the refinery part of the company. Key products and services The company is a well-known producer of automotive and industrial oils, metalworking fluids, preservatives, bitumen, special bitumen products, fats, greases, and waxes. The company began providing services in the area of fuels storage and distribution for its sister company Unipetrol RPA during 2012. Ownership interest Company Based at ompany No. Registered capital Ownership interest % of registered capital MOGUL SLOVAKIA, s.r.o. Hradište pod Vrátnom 362 22 992 380,933 EUR 100.00 PARAMO Oil, s.r.o. Pardubice 246 87 341 200,000 CZK 100.00 Key financial data of PARAMO, a.s. (under IFRS) 1) (in CZK thousand) 2014 2013 2012 2011 2010 Total assets 1,446,947 1,502,250 1,264,618 2,430,892 4,730,104 Equity 156,746 368,490 (139,906) 445,497 2,116,805 Registered capital 2,036,078 2,036,078 1,330,078 1,330,078 1,330,078 Liabilities 1,290,201 1,133,760 1,404,524 1,985,395 2,613,300 Total revenues 3,247,132 2,988,433 5,494,934 11,816,243 11,417,414 Operating profit / (loss) (205,621) (195,354) (384,239) (1,962,263) (174,471) Profit before tax (211,618) (192,807) (287,462) (1,978,497) (198,978) Profit for the accounting period (211,618) (197,542) (585,403) (1,671,307) (161,987) 1) Unconsolidated under IFRS Source: Transformed financial statements under IFRS.

Structure of the Group UNIPETROL, a .s . Annual report 2014 74 UNIPETROL, a .s . Annual report 2014 74 Structure of the Group “We safely create valuable products and reliable services.” DEPEnDABILIty DEPEnDABILIty

UNIPETROL, a.s. Annual report 2014 75 Complementary information The basic legal regulations that UNIPETROL, a.s. observed in conducting its business in 2014 include, without limitation, the following laws, and the company’s Articles of Association as amended: • Act No. 90/2012 on Trading Companies and Co-operatives (on Business Corporations) • Act No. 455/1991, the Trade Licensing Act • Act No. 563/1991 on Accounting • Act No. 256/2004 on Business on the Capital Market • Act No. 89/2012, the Civil Code • Act No. 262/2006, the Labour Code • Act No. 627/2004 on the European Company • Act No. 104/2008 on Takeover Bids • Act No. 125/2008 on Transformation of Companies and Cooperatives • Act No. 300/2008 on Electronic Transactions and Authorized Conversion of Documents • Act No. 304/2013 on Public Registers of Legal Entities and Individuals • Articles of Association of UNIPETROL, a.s. Companies of Unipetrol Group (“the Group”) carry on business mainly in the refinery and petrochemical industries and in related business lines, taking advantage of the synergic effects of operating within the Group. For this purpose the Group companies enter into agreements, in particular, for the sale of base feedstock and basic products and motor fuel supplies. The base feedstock and basic products include, for example, C4 fraction, virgin naphtha, C5 fraction, raffinate 1, and heavy fuel oils. Motor fuel supplies include, for example, 95 Natural gasoline, Verva 100 and Verva 95 premium high-octane gasoline, Diesel Top Q diesel fuel and Verva Diesel with cetane number 60. Arrangements for production are based on standard commercial agreements, for example, agreements on the purchase and sale of energy resources, in particular coal, electricity, steam, etc. Complementary information as required by the Act on business activities on the capital market Legal regulations governing the issuer’s business Major agreements

UNIPETROL, a .s . Annual report 2014 76 Complementary information Brief description of major agreements executed in 2014 is shown in the following tables: BEnZInA, s.r.o. Company Sale/purchase/other Subject matter Česká pošta Security, s.r.o. Framework agreement Goods distribution through ČS EUROOIL, OMV and BENZINA PARAMO, a.s. Company Sale/purchase/other Subject matter ADRALES s .r .o . Purchase agreement Property sale České dráhy, a.s. Purchase agreement Lubricant supplies BCH Solutions Limited Framework purchase agreement Oils and lubricant supplies ČEZ, a.s. Sale agreement Bitumen supplies LTD, VibroSpetzTechnika Framework purchase agreement Oil supplies REPARE TRUTNOV s .r .o . Framework purchase agreement Cationic emulsion supplies APT - CZ s.r.o. Framework purchase agreement Cationic emulsion supplies ORLEN OIL Sp. z.o.o. Purchase agreement Fats supplies Správa a údržba silnic Plzeňského kraje Framework purchase agreement Cationic emulsion supplies Silnice LK a .s . Sale agreement Bitumen emulsion supplies Správa a údržba silnic Královéhradeckého kraje Purchase agreement Katebit supplies Krajská správa a údržba silnic Vysočina, příspěvková organizace Purchase agreement Liguafalt supplies OMA CZ, a .s . Framework purchase agreement Bitumen product supplies ČNES dopravní stavby, a.s. Framework purchase agreement Emulsion supplies KOVOMONT s .r .o . Contract for work Connection to terminal

UNIPETROL, a.s. Annual report 2014 77 Complementary information UNIPETROL DOPRAVA, s.r.o. Company Sale/purchase/other Subject matter Česká pojišťovna a.s. Insurance policy Insurance policy no. 23537711-28 – Collective liability insurance (liability insurance for professional indemnity). ČESKÁ RAFINÉRSKÁ, a.s. Agreement on the shipping Addendum no. 29 – Agreement on the shipping of goods from 1.1.2002 – a list of leased railway cars for 1.1.- 31.3.2014. ČESKÁ RAFINÉRSKÁ, a.s. Agreement on the shipping Addendum no. 30 – Agreement on the shipping of goods from 1.1.2002 – transport and delivery charges for 1.1.- 31.3.2014. ČESKÁ RAFINÉRSKÁ, a.s. Agreement on the shipping Addendum no. 31 – Agreement on the shipping of goods from 1.1.2002 – short-term lease of 30 railway cars for HFO. QBE INSURANCE (EUROPE) LIMITED, organizační složka Insurance policy Insurance policy no. 7-863-000435/14. The renewal agreement for liability insurance for damage caused by activities of the company as the carrier pursuant to Act. No. 266/1994 Coll., Act. No. 164/1996 Coll. and Act. No. 59/2006 Coll. It includes the damage to property, health, consequential financial losses, environmental damage, and net financial loss. ČESKÁ RAFINÉRSKÁ, a.s. Agreement on the shipping Addendum no. 32 – Agreement on the shipping of goods from 1.1.2002 – a list of leased railway cars for 1.4.- 31.3.2014. UNIPETROL SERVICES, s.r.o. Service contract (SLA) Addendum no. 13 – Service contract – SLA – an update of annexes and determination of annual budgeted fee for 2014. Price reduction of CZK 1.662 m/year. DOSTAV Praha, a.s. A property lease agreement Addendum no. 5 – Agreement on property lease no. 2/02/056 – contract extension till 31.12.2020. Česká pojišťovna a.s. Insurance policy Insurance policy no. 899-20504-14 – Liability insurance for damage caused by the operation of railway transportation of goods. UNIPETROL RPA, s.r.o. (Business Unit Refinery) Company Sale/purchase/other Subject matter TESCO STORES ČR, a.s. Sale agreement Sale of motor fuels ČSA HANDLING, a.s. Sale agreement Sale of motor fuels LUKOIL Czech Republic s.r.o. Sale agreement Sale of motor fuels AHOLD Czech Republic, a.s. Sale agreement Sale of motor fuels UNIPETROL SLOVENSKO s. r. o. Sale agreement Sale of motor fuels ORLEN Deutschland GmbH Sale agreement Sale of motor fuels

UNIPETROL, a.s. Annual report 2014 78 Complementary information UNIPETROL RPA, s.r.o. (Business Unit Monomers and Chemicals) Company Sale/purchase/other Subject matter Spolana a.s. Sale agreement Sale of ammonia Synthos S.A. Sale agreement Sale and supplies of benzene Synthos S.A. Sale agreement Sale and supplies of ethylene Lovochemie, a.s. Sale agreement Sale of ammonia Momentive Specialty Chemicals, a.s. Sale agreement Sale of propylene Spolana a.s. Sale agreement Sale of ethylene Grupa Azoty (ZAK) S.A. Sale agreement Sale of propylene Butadien Kralupy a.s. Sale agreement Sale of C4 fraction UNIPETROL RPA, s.r.o. (Business Unit Polyolefins) Company Sale/purchase/other Subject matter PEGAS NONWOVENS s.r.o. Sale agreement Sale and supplies of p.p. and HDPE SILON s.r.o. Sale agreement Sale and supplies of p.p. and HDPE Schoeller Arca Systems Services B.V. Sale agreement Sale and supplies of p.p. and HDPE Rundpack AG Sale agreement Sale and supplies of p.p. and HDPE RITTER GmbH/Delbrouck Plastic GmbH Sale agreement Sale and supplies of p.p. and HDPE INNO-COMP BOHEMIA, s.r.o. Sale agreement Sale and supplies of p.p. and HDPE UNIPETROL SLOVENSKO, s.r.o. Company Sale/purchase/other Subject matter TESCO STORES SR, a.s. Sale agreement Sale of motor fuels SHELL Slovakia s.r.o. Sale agreement Sale of motor fuels Eni Slovensko spol. s r.o. Sale agreement Sale of motor fuels LUKOIL Slovakia s.r.o. Sale agreement Sale of motor fuels AHOLD Retail Slovakia, k.s. Sale agreement Sale of motor fuels W.A.G. payment solutions SK, s.r.o. Sale agreement Sale of motor fuels REAL – H.M. s.r.o. Sale agreement Sale of motor fuels Tam trans s.r.o. Sale agreement Sale of motor fuels Tanker s.r.o. Sale agreement Sale of motor fuels AVIA Diesel Kft Sale agreement Sale of motor fuels Auchan Magyarország Kft. Sale agreement Sale of motor fuels

UNIPETROL, a .s . Annual report 2014 79 Complementary information Marek Świtajewski, Chief Executive Officer and Chairman of the Board of Directors of Unipetrol, and Mirosław Kastelik, Chief Financial Officer and Member the Board of Directors of Unipetrol, hereby claim to their best knowledge, that the Annual Report and the Consolidated Annual Report present, in all aspects, a true and fair image of the financial standing, business, and results of the issuer and its consolidated group for the previous accounting period, as well as of the future outlook for the financial standing, business, and results . Marek Świtajewski Mirosław Kastelik Chief Executive Officer and Chief Financial Officer and Member of the Board Chairman of the Board of Directors of Directors (in CZK thousand) 2014 Consolidated 2014 Non-consolidated Audit fees 1) 6,726 855 Fees for consulting services and translation 1) 0 0 1) Without VAT . Auditor for 2014 Name: KPMG Česká republika Audit, s.r.o. Partner: Karel Růžička License no .: 1895 Address: Pobřežní 648/1a, 186 00 Praha 8 ID No .: 49619187 Marek Świtajewski Mirosław Kastelik Information about the persons responsible for the Annual Report Audit

UNIPETROL, a.s. Annual report 2014 80 Complementary information Shares Name UNIPETROL, a.s. Class ordinary share ISIN CZ0009091500 BIC BAAUNIPE Type bearer share Form dematerialized security Currency CZK Nominal value CZK 100 Number of shares 181,334,764 Total issue CZK 18,133,476,400 Tradability listed security (Burza cenných papírů Praha, a.s. [Prague Stock Exchange], the Prime Market) Under an agreement, ADMINISTER spol. s r.o., Husova 109, 284 01 Kutná Hora, Company No. 47551054 was authorized to pay out dividends for 1997. Under an agreement, Komerční banka, a.s., registered office at Praha 1, Na Příkopě 33, čp. 969, 11407, Company No. 45317054, was authorized to pay out dividends for 2007. UNIPETROL, a.s. shares are traded on the Prime Market of Burza cenných papírů Praha, a.s. [Prague Stock Exchange] and in RM- SYSTÉM, a.s. The extent of the voting rights of each shareholder is defined by the number of shares held, one share with a nominal value of CZK 100 being equal to one vote. All shares of the issuer therefore carry the same voting rights. A shareholder is entitled to a share of the company’s profit (dividend) that the General Meeting has approved for distribution depending on the company’s result. The dividend is defined as the ratio of the nominal value of the shares held by a shareholder and the total nominal value of the shares held by all shareholders as of the Record Date. If the company is liquidated, each shareholder is entitled to a share of the proceeds from liquidation. The amount of the proceeds from liquidation shall be calculated in the same manner as the amount of the shareholder’s dividend. Shares carry rights to take part in the management of the company. Shareholders may only exercise this right at the General Meetings, provided that they observe the rules governing the organization of the General Meetings. Shareholders are entitled to take part in the General Meetings, vote at the General Meetings, request and receive explanation of any matters concerning the company where explanation is necessary for assessing a point on the agenda of the General Meeting, and raise proposals and counter-proposals. The dividend due date is two months after the date of the General Meeting at which the decision to pay out dividends was passed, and its numerical designation shall correspond to the date of the General Meeting. The right to receive dividends is separately transferable starting from the date on which the General Meeting decided on the payment of dividends. As of 31 December 2014, the Group held no own shares or share warrants. Significant proceedings in front of court, body appropriate for arbitration proceedings or in front of public administrations bodies Claims regarding reward for employees’ intellectual work In the year 2001 the court case commenced regarding the reward for the employees’ intellectual work between UNIPETROL RPA, s.r.o. and its two employees. The employees demanded reward of approx. CZK 1.8 million. UNIPETROL RPA, s.r.o. as the defendant did not agree and offered the reward amounting to approx. CZK 1.4 million, based on experts’ valuations. In 2005 the employees’ plaintiffs Securities Acquisition of own shares and share warrants Final information

UNIPETROL, a.s. Annual report 2014 81 Complementary information filed the next petition to the court to extend the action to an amount of approx. CZK 82 million. The first instance hearing was held on 18 October 2011. The trial was not completed yet. An experts’ valuation ordered by the court confirmed the amount of the reward payable to the employees in the amount of CZK 1,603,991. One of the employees accepted payment of his share in the reward confirmed by the expert in the expert valuation order by the court. Claims on compensation of damages filed by I.P. – 95, s.r.o. against UNIPETROL RPA, s.r.o. On 23 May 2012 UNIPETROL RPA, s.r.o., having its registered office at Záluží 1, 436 70, Litvínov, Business ID no.: 27597075,, the subsidiary of UNIPETROL, a.s., received a petition from the District Court Ostrava, file no. 30 C 66/2010. Claimant – I.P. - 95, s.r.o., having its registered office at Těšínská 202/225, 716 00 Ostrava-Radvanice, Business ID no.: 64085694 is claiming compensation of damages totalling CZK 1,789 million. I.P. – 95, s.r.o. claims that it incurred damages as a result of an unjustified insolvency filing against I.P. – 95, s.r.o. made by UNIPETROL RPA, s.r.o. on 24 November 2009. I.P. – 95, s.r.o. assigned part of the receivable in question of CZK 1,742 million, to NESTARMO TRADING LIMITED, having its registered office at Diagorou 4, Fermia Building, 6th floor, office no. 601, 1097 Nicosia, Cyprus, Company ID no.: HE 246733; following the assignment, I.P. – 95, s.r.o. filed a motion regarding NESTARMO TRADING LIMITED joining the proceedings as a claimant. UNIPETROL RPA, s.r.o. is one of eight respondents against whom the petition was filed. In 2014, the courts were dealing with the municipal jurisdiction in order to decide the dispute, and the decision was that the competent court to decide was the District Court in Ostrava. Furthermore, proceedings took place before the District Court in Ostrava during which the court addressed the question of the authenticity of a claim of UNIPETROL RPA, s.r.o. against the company I.P. – 95, s.r.o. The District Court in Ostrava found for UNIPETROL RPA, s.r.o. (which proved that the claim of UNIPETROL RPA, s.r.o. against the company I.P. 95, s.r.o. had already existed at the time of the first request for the opening of insolvency proceedings against the company I.P. – 95, s.r.o.). UNIPETROL RPA, s.r.o. does not recognize the alleged claim and considers the claim as unjustified and unfounded. UNIPETROL RPA, s.r.o. is taking all legal actions to defend itself against this claim. Claims for compensation of damages filed by SDP Logistics sklady a.s. against UNIPETROL RPA, s.r.o. On 9 July 2012 UNIPETROL RPA, s.r.o. received a petition filed by SDP Logistics sklady a.s. for compensation of damages. UNIPETROL RPA, s.r.o. concluded on 21 March 2010 with SDP Logistics sklady a.s. (“SDP”) a contract relating to storage („Contract“) for a definite period of time - until 31 July 2011. SDP claims that UNIPETROL RPA, s.r.o. failed to remove all stored products before the contract termination date. SDP claims CZK 25 million as a contractual penalty payable to SDP as a result of not making the storage space available for a new client. SDP additionally claims CZK 120 million as loss of profit caused by not being able to provide the contracted storage capacity to a new SDP client after 1 August 2011. Furthermore SDP has blocked the goods of UNIPETROL RPA, s.r.o. (stored in the warehouse) until the said damages are covered by UNIPETROL RPA, s.r.o. On 18 November 2014 UNIPETROL RPA, s.r.o. and SDP Logistics sklady, a.s. concluded a settlement agreement under which the blocked goods were released while all petitions filed were withdrawn. The request of minority shareholders against UNIPETROL, a.s. and PARAMO, a.s. for a review of the inadequacy of consideration in connection with squeeze out of PARAMO, a.s. shares. On 1 January 2009, UNIPETROL a.s. effected a squeeze out of PARAMO, a.s. shares (i.e. the statutory squeeze-out of minority shareholders) pursuant to § 183i of the Commercial Code and hereby became the sole owner of PARAMO, a.s. In accordance with the resolutions of the Extraordinary General Meeting of PARAMO, a.s. of 6 January 2009, all other shares in PARAMO, a.s were transferred to the Company and the Company provided to the other shareholders of PARAMO, a.s. and/or pledges, the monetary consideration of CZK 977 per share of PARAMO, a.s. On 4 February 2009 the registration of the above mentioned resolution of the Extraordinary General Meeting was published in the Czech Commercial Register. Pursuant to the Czech Commercial Code, the ownership title to shares of the other shareholders has been transferred to the Company on 4 March 2009 upon expiration of one month from the above mentioned publication and UNIPETROL, a.s. gained the title of ownership to the remaining shares. In connection with the squeeze-out, certain minority shareholders of PARAMO, a.s. filed a petition with the Regional Court in Hradec Králové for a review of the adequacy of the compensation within the meaning of the Czech Commercial Code. The case was assigned to the Municipal Court in Prague. The plaintiffs appealed against this decision and filed a constitutional complaint to the Constitutional Court of the Czech Republic for the violation of their right to the particular judge. The Czech Constitutional Court returned the case to the High Court in Prague for reconsideration of the case. The court case concerning minority shareholders claim for a review of the inadequacy of consideration is currently being heard by the Regional Court in Hradec Králové. Furthermore some former minority shareholders of PARAMO, a.s. requested the Regional Court in Hradec Králové to declare the

UNIPETROL, a.s. Annual report 2014 82 Complementary information nullity of PARAMO, a.s. General Meeting resolution dated 6 January 2009 and the District Court in Prague 4 to review the decision of 28 November 2008 by which the Czech National Bank granted in accordance with Section 183n(1) of the Czech Commercial Code its previous approval with the monetary consideration provided under the above squeeze-out. Regarding the case for declaration of invalidity of the PARAMO, a.s. General Meeting, the Regional Court in Hradec Králové (branch in Pardubice) on 2 February 2010 decided in behalf (favour) of PARAMO, a.s. and rejected the minority shareholders’ petition for declaration of nullity of the PARAMO, a.s. General Meeting resolution. The minority shareholders filed an appeal against the decision of the Regional Court in Hradec Králové on 2 March 2010. The High Court in Prague with its decision from 26 January 2012 confirmed the decision of the Regional Court in Hradec Králové by which this court rejected the petition of minority shareholders concerning the nullity of General Meeting resolution. Some of minority shareholders filed an appeal against the decision of the Regional Court in Hradec Králové to the Supreme Court of the Czech Republic. In the case of the proceedings concerning the previous approval of the Czech National Bank, the action was rejected by the District Court for Prague 4 in favour of the Czech National Bank and UNIPETROL, a.s. The plaintiffs appealed against this decision to the Municipal Court in Prague, and this proceeding is still running. With respect to the above described facts regarding determination of the consideration value, the Czech National Bank decision and approval of the Extraordinary General Meeting of PARAMO, a.s., UNIPETROL, a.s. considers that the petition for review of reasonableness of consideration is unfounded. By the resolution of the Supreme Court dated 19 December 2013 was rejected a plaint of minority shareholders for the nullity of general meeting resolution. Another legal appeal against this resolution is not possible. In the context of ongoing proceedings for the inadequacy of consideration, the court ordered the preparation of a third expert opinion carried out by the Institute of Property Valuation at the Faculty of Economics VSB - Technical University of Ostrava that valuated by an expert opinion also PARAMO, a.s. shares as follows: a) 1,161.52 CZK - price per 1 share on the date 6 January 2009 (the date of the General Meeting of PARAMO, a.s., where the statutory squeeze-out of minority shareholders was approved); b) 1,1471.57 CZK - the price per 1 share on the date 4 March 2009 (the date when the shares of minority shareholders of PARAMO, a.s. were transferred to the company UNIPETROL, a.s.). The price per share according to the most recent valuation is higher than CZK 977 per share, as it was originally paid by UNIPETROL, a.s. at the statutory squeeze-out of minority shareholders. UNIPETROL, a.s. commissioned the company PricewaterhouseCoopers (PwC) to appreciate the PARAMO shares to the date 6 January 2009 and 4 March 2009 (i.e. to the dates of valuation by an expert opinion). The results of valuation of shares carried out by PwC are as follows: a) CZK 937 price per share on the date 6 January 2009 b) CZK 888 per share on the date 4 March 2009 On 3 November 2014 UNIPETROL, a.s. submitted to the court the above valuation of shares carried out by PwC and also its objections to the manner and methodology of valuation of shares. The Court held a hearing on 26 February 2015. Next hearing is expected to be scheduled for end of April 2015. Tax proceeding UNIPETROL RPA s.r.o., acting as a legal successor of CHEMOPETROL a.s., is a party in a tax proceeding related to validity of investment tax relief for 2005. UNIPETROL RPA s.r.o. claims the return of income tax paid in 2006 for the fiscal year 2005 by CHEMOPETROL a.s. The claim concerns unused investment relief attributable to CHEMOPETROL a.s. The total value of claim amounts to approximately CZK 325,000 thousand. a) UNIPETROL RPA, s.r.o. complaint for a protection against unlawful intervention At its hearing on 16 October 2013 the Regional Court in Ústí nad Labem decided to partly dismiss the UNIPETROL RPA, s.r.o. complaint for a protection against unlawful intervention during the first instance tax proceedings carried out by the Tax Authority in Litvínov in 2010. The court decided that the appellate tax proceedings carried out by the Tax Directorate in Ústí nad Labem in 2010 was an unlawful intervention with UNIPETROL RPA, s.r.o. rights. UNIPETROL RPA, s.r.o. filed a cassation appeal against the part of the judgment of the court regarding dismissal of the complaint with respect to the first instance tax proceedings to the Czech High Court. On 21 January 2014 the Czech High Administration Court resolved to (i) decline the decision of the Regional Court in Ústí nad Labem stating that the appellate tax proceedings carried out by the Tax Directorate in Ústí nad Labem in 2010 was an unlawful intervention with UNIPETROL RPA, s.r.o. rights and returned this part of the case to the Regional Court in Prague for further hearing and decision; and (ii) dismissed the cassation appeal filed by UNIPETROL RPA, s.r.o. UNIPETROL RPA, s.r.o. filed a constitutional appeal against the judgment of the Czech High Administration Court in which it sought confirmation that its right to a fair trial was violated by the decision of the Czech High Administration Court. On the 16

UNIPETROL, a.s. Annual report 2014 83 Complementary information October 2014 the Constitutional Court of the Czech Republic rejected the constitutional appeal filed by UNIPETROL RPA, s.r.o. Following the decision of the Constitutional Court of the Czech Republic, the Regional Court in Ústí nad Labem by the judgement on 8 December 2014 rejected the complaint for a protection against unlawful intervention. b) UNIPETROL RPA, s.r.o. complaint for dismissal of the tax authority decisions At oral hearing on 11 December 2013 the Regional Court in Ústí nad Labem decided to decline both (i) the decision of the Tax Authority in Litvínov issued in 2010 on the tax corporate income obligation of UNIPETROL RPA, s.r.o. of approximately CZK 325 million, and (ii) the decision of the Tax Directorate in Ústí nad Labem (in position as appellate authority) on the UNIPETROL RPA, s.r.o. appeal against the decision of the Tax Authority under point (i). The court ruled both decisions of tax authorities to be unlawful. The court returned the case to the tax authority for further procedure. UNIPETROL RPA, s.r.o. filed a cassation appeal against the decision of the Regional Court in Ústí nad Labem and requested the court to decline both tax decision of the both tax authorities due to these being null and therefore non-existing. The declaration of the decision null and non-existing would enhance UNIPETROL RPA, s.r.o. position towards the tax authorities. The Czech High Administration Court by its decision on 19 March 2014 decided on the cassation appeals of both parties. The Czech High Administration Court dismissed the judgement of the Regional Court in Ústí nad Labem from 11 December 2013 and returned it to the Regional Court in Ústí nad Labem for further procedure. The Czech High Administration Court also dismissed the cassation appeal of Unipetrol RPA, s.r.o. Information on the interruption of business The issuer did not interrupt its business in 2014. Information on the Group’s liabilities and how they are secured The information on the total amount of outstanding loans or borrowings, structured into secured and unsecured, and on the security provided by the issuer as well as on other conditional liabilities, is specified in the Notes to the Consolidated Financial Statements (see Chapters 25 and 31). The Company’s registered capital is CZK 18,133,476,400 and has been fully paid up. Information about the securities into which the registered capital is divided: Name UNIPETROL, a.s. Class ordinary share ISIN CZ0009091500 BIC BAAUNIPE Type bearer share Form dematerialized security Currency CZK Nominal value CZK 100 Number of shares 181,334,764 Total issue CZK 18,133,476,400 Tradability listed security (Burza cenných papírů Praha, a.s. [Prague Stock Exchange], the Prime Market) 67,110,726 shares (ISIN CZ0009091500), representing CZK 6,711,072,600 (37.01% of the Company’s share capital), are held by the general public. PKN ORLEN S.A. with ownership interest 62.99% (114,226,499 shares), J&T Group1 with ownership interest of 23.70% and Poštová banka, a.s. (less than 10%) are the only shareholders whose share of share capital, and thereby of voting rights, exceeds 5%. Unipetrol was informed that as of 17 June 2013 (decisive day for the ordinary General Meeting in 2013) the company Poštová banka, a.s. owned 6.56% share of share capital, and thereby of voting rights, and NEEVAS INVESTMENT LIMITED owned 5.11% share of share capital, and thereby of voting rights. 1) As of 19 March 2014 (last available data) - According to notification received on 31 March 2014 J&T Group holds 23.70% share of votes through following companies: PAULININO LIMITED, EGNARO INVESTMENTS LIMITED, LEVOS LIMITED, LCE COMPANY LIMITED, NEEVAS INVESTMENT LIMITED, UPRECHT INVESTMENT LIMITED, MUSTAND INVESTMENT LIMITED. Information about the issuer’s registered capital

UNIPETROL, a.s. Annual report 2014 84 Complementary information Unipetrol was informed that as of 18 March 2014 PAULININO LIMITED increased its share in the total number of votes at the Shareholders’ Meeting of UNIPETROL, a.s. from 0.00% to 23.70%. From these votes, 7.81% votes were held directly by PAULININO LIMITED and 15.89% votes were counted in accordance with § 122 Act on Business Activities on the Capital Market, no. 256/2004 Coll. Unipetrol was informed that as of 19 March 2014 PAULININO LIMITED increased its share of votes held directly at the Shareholders’ Meeting of UNIPETROL, a.s. from 7.81% to 17.97% and decreased its share of votes counted in accordance with § 122 Act on Business Activities on the Capital Market, no. 256/2004 Coll. from 15.89% to 5.73%. The total number of votes at the Shareholder’s Meeting of UNIPETROL, a.s. held by PAULININO LIMITED remained unchanged. Unipetrol was informed that as of 19 March 2014 the company NEEVAS INVESTMENT LIMITED decreased its share in the total number of votes at the Shareholders’ Meeting of UNIPETROL, a.s. from 6.19% to 1.69%.2 Until the end of 2014 and during 2015 up to the Annual Report closing date, Unipetrol was not informed about any other change of stake in the share capital. There is no employee benefit program involving employee shareholding. No changes have been made to the share capital of UNIPETROL, a.s. over the last three years The current wording of the UNIPETROL a.s. Articles of Association is available at www.unipetrol.cz. Changes to the Articles of Association of UNIPETROL, a.s. in 2014 The General Meeting of UNIPETROL, a.s. held on 26 May 2014 decided pursuant to item 14 of the agenda pursuant to Article 12 (2) (a) of the Articles of Association on the changes to the Articles of the Association. New version of the Articles of Association is shown in Appendix 1 of the text part of this annual report. The Company’s mission is as follows the Company’s currently applicable Articles of Association: • strategic management of the development of the group of directly or indirectly controlled companies, • coordination and facilitation of matters of common interest of the group of directly or indirectly controlled companies, • arranging of financing and development of financing systems in the companies within the concern, • development of human resources and a system of human resource management in the companies within the concern, • administration, acquisition of and disposal with ownership interests and other assets of the Company, in particular: (i) establishing of business corporations, participation in their foundation and other acquisitions of ownership interests in business of other legal entities, (ii) exercising of shareholder’s and similar rights within directly or indirectly controlled companies, (iii) renting of real estate and provision of basic services for due functioning of real estate. ThesubjectofbusinessofthecompanyisasfollowtheCompany’scurrentlyapplicableArticlesofAssociation: • Provision of services in the field of occupational health and safety • Manufacture, trade and services not specified in the annexes 1 – 3 of the Trade Licensing Act Object of business as per the current Certificate of Incorporation: • Provision of services in the field of occupational health and safety • Manufacture, trade and services not specified in the annexes 1 – 3 of the Trade Licensing Act 2) For more on the announcements listed above see regulatory announcement no. 9/2014 available on Unipetrol’s website: http://www.unipetrol.cz/cs/VztahySInvestory/RegulatorniOznameni/Stranky/Změna-podílu-na-hlasovacích-právech-společnosti-UNIPETROL.aspx Memorandum and Articles Objects of business

UNIPETROL, a.s. Annual report 2014 85 Explanatory report Explanatory report Explanatory Report, prepared in accordance with the provisions of Section 118(4) letters (b),(c),(e) and (j) and (5) letters (a) through (k) of Act No. 256/2004 Coll., Act on Conducting Business on Capital Market, as amended. Information on the breakdown of the equity of UNIPETROL, a.s. The breakdown of the Company’s equity as of 31 December 2014 (in millions of CZK) is as follows: Share capital 18,133 Statutory reserves 1,719 Revaluation reserve 503 Retained earnings 6,331 Total equity 26,686 The Company’s share capital amounts to CZK 18,133,476,400 and is distributed among 181,334,764 ordinary bearer shares with the nominal value of CZK 100. The shares are issued in book-entry form and are listed. Information on restrictions on transferability of securities The transferability of the Company’s securities is not restricted. Information on significant direct and indirect shareholdings in company Significant direct or indirect shareholdings in the Company are as follows: • PKN ORLEN S.A. – direct shareholding in the amount of 62.99%, • J&T Group3 - shareholding (direct or indirect) in the amount of 23.70%. Unipetrol was informed that as of 17 June 2013 (decisive day for the ordinary General Meeting in 2013) the company Poštová banka, a.s. owned 6.56% share of share capital, and thereby of voting rights, and NEEVAS INVESTMENT LIMITED owned 5.11% share of share capital, and thereby of voting rights. Unipetrol was informed that as of 18 March 2014 PAULININO LIMITED increased its share in the total number of votes at the Shareholders’ Meeting of UNIPETROL, a.s. from 0.00% to 23.70%. From these votes, 7.81% votes were held directly by PAULININO LIMITED and 15.89% votes were counted in accordance with § 122 Act on Business Activities on the Capital Market, no. 256/2004 Coll. Unipetrol was informed that as of 19 March 2014 PAULININO LIMITED increased its share of votes held directly at the Shareholders’ Meeting of UNIPETROL, a.s. from 7.81% to 17.97% and decreased its share of votes counted in accordance with § 122 Act on Business Activities on the Capital Market, no. 256/2004 Coll. from 15.89% to 5.73%. The total number of votes at the Shareholder’s Meeting of UNIPETROL, a.s. held by PAULININO LIMITED remained unchanged. Unipetrol was informed that as of 19 March 2014 the company NEEVAS INVESTMENT LIMITED decreased its share in the total number of votes at the Shareholders’ Meeting of UNIPETROL, a.s. from 6.19% to 1.69%.4 3) As of 19 March 2014 (last available data) - According to notification received on 31 March 2014 J&T Group holds 23.70% share of votes through following companies: PAULININO LIMITED, EGNARO INVESTMENTS LIMITED, LEVOS LIMITED, LCE COMPANY LIMITED, NEEVAS INVESTMENT LIMITED, UPRECHT INVESTMENT LIMITED, MUSTAND INVESTMENT LIMITED. 4) For more on the announcements listed above see regulatory announcement no. 9/2014 available on Unipetrol’s website: http://www.unipetrol.cz/cs/VztahySInvestory/RegulatorniOznameni/Stranky/Změna-podílu-na-hlasovacích-právech-společnosti-UNIPETROL.aspx

UNIPETROL, a.s. Annual report 2014 86 Explanatory report Until the end of 2014 and during 2015 up to the Annual Report closing date, Unipetrol was not informed about any other change of stake in the share capital. Unipetrol has no other shareholder whose stake in the share capital of the Company, and thereby of voting rights, exceeds 5%. Information on owners of securities with special rights None of the Company’s securities have any special rights attached to them. Information on restriction on voting rights The voting rights attached to Company’s individual shares and/or to a certain amount of the Company’s shares are not restricted in any manner. Information on agreements between shareholders which may result in restrictions on transferability of shares and/or voting rights The Company is not aware of the existence of any agreements between the Company’s shareholders which may result in restrictions on the transferability of the Company’s shares and/or voting rights attached to the shares. Information on special rules on election and recall of members of board of directors and amendment of articles of association Members of the Board of Directors are elected and recalled by the Supervisory Board. A decision on amendment to the Company’s articles of association requires the consent of a special majority consisting of two thirds of the votes of the shareholders present at the General Meeting. No special rules governing the election and recall of the members of the Board of Directors and/or amendment to the articles of association apply. Information on special powers of the Board of Directors Members of the Board of Directors do not have any special powers; in particular, they have been not granted by the General Meeting authority to adopt a decision on an increase of the Company’s share capital, on acquisition by the Company of its own shares or another decision of such type. Information on significant agreements connected with change of control over company as result of takeover bid The Company is not a party to any significant agreement which will enter into effect, change and/or cease to exist in the event of change of control over the Company as result of a takeover bid. Information on agreements binding company in connection with takeover bid No agreements have been concluded between the Company and the members of its Board of Directors which would bind the Company to render performance in the event that the position of a member of the Company’s Board of Directors is terminated in connection with a takeover bid. No agreements have been concluded between the Company and its employees that would bind the Company to render performance in the event that the employment of an employee is terminated in connection with a takeover bid. Information on option schemes for shares The Company does not have implemented any schemes on the basis of which the Company’s employees or members of its Board of Directors would be entitled to acquire shares or other participation securities in the Company, or options on such securities or other rights thereto, under advantageous terms. Information about payments for mineral extraction rights to the state The issuer does not carry on business in the mining industry. The issuer makes no payments to the State for mining rights. Information about decision-making procedures and the composition of the company’s governing body and supervisory body The Board of Directors is the issuer’s governing body. Its position, remit, composition, decision-making and other basic rights and

UNIPETROL, a .s . Annual report 2014 87 Explanatory report obligations, and also procedural rules, are contained in art. 12–14 of the company’s Articles of Association and in the Board of Director’s rules of procedure . The company’s Articles of Association in the current version are available on the company’s website at www.unipetrol.cz. The Supervisory Board is the issuer’s supervisory body. Its position, remit, composition, decision-making and other basic rights and obligations, and also procedural rules, are contained in art. 15–17 of the company’s Articles of Association and in the Supervisory Board’s rules of procedure . The Supervisory Board shall set up the following committees: a) The Staff and Corporate Governance Committee b) The Strategy and Finance Committee (hereinafter referred to collectively as “Supervisory Board Committees”) . The composition of the Supervisory Board Committees was following (as of 31 December 2014): ad a) Krystian Pater (chairman), Bogdan Dzudzewicz (vice-chairman), Zdeněk Černý, Rafał Sekuła ad b) Sławomir Robert Jędrzejczyk (chairman), Ivan Kočárník, Piotr Kearney, Piotr Chełmiński (vice-chairman) The position, remit, composition, decision-making and also the procedural rules of the Supervisory Board’s Committees are contained in art . 16–17 of the company’s Articles of Association and in the Committees’ rules of procedure . In 2009, the company set up an Audit Committee. The position, remit, composition and decision-making are described in chapter VII . Audit Committee . Information about the General Meeting’s decision-making and basic remit The General Meeting’s position and remit and also the procedural issues concerning the General Meeting are provided for in art . 8–11 of the company’s Articles of Association . Information about corporate governance codes The governance and management of Unipetrol Group follows the recommendations of the Corporate Governance Code, which is based on OECD Principles, the provisions of which the company satisfies in all material respects. The Code is available, for example, on the Czech National Bank website. Information about the principles and procedures of internal controls and about the rules related to the financial reporting process The basic accounting policies set out in the International Financial Reporting Standards and in the Group’s internal standards are described in the Notes to the Consolidated and Non-consolidated Financial Statements. The Company established its internal regulations in accordance with the Act on Accounting and set up the organizational norms in such a way as to maximize control and limit the possibility of mistakes. In the area of reporting the company implemented the automated system for data transfer from the accounting software to the reporting applications. The reporting applications (SW HYPERION) contain a control system ensuring the correctness of the data sent whether for creation of the internal monthly management reports or creation of quarterly consolidated and non-consolidated financial statements. Accounting policies and principles are subject to both internal and external audit. In 2009 the company set up an Audit Committee . The Company has an Internal Audit Department which provides independent assurance audit services to Unipetrol Group . In 2014 the Internal Audit Department performed audits in the following areas in accordance with the plan approved by the Board of Directors and Audit Committee of UNIPETROL, a .s .: • Quality management • Maintenance management • Safety of work • Spare parts management • Sale of heavy fuel oils • Fuel stations management • Hedging of crude oil prices • Procurement • Human resources (HR)

UNIPETROL, a.s. Annual report 2014 88 Appendix 1 – Articles of Association ARTICLES OF ASSOCIATION UNIPETROL, a.s. I. General provisions 1. Business name and registered office 1.1 UNIPETROL, a.s. (the “Company”) is a business corporation established in the form of joint-stock company. 1.2 The business name of the Company is: UNIPETROL, a.s. 1.3 The registered office of the Company is Prague. 2. Scope of Company´s Business 2.1 The scope of business of the Company is as follows: • Provision of services in the field of occupational health and safety • Manufacture, trade and services not specified in the annexes 1 – 3 of the Trade Licensing Act 2.2 The fundamental mission of the Company is as follows: • strategic management of development for group of companies directly or indirectly controlled by the Company • coordination and procurement of matters of common interest of group of companies directly or indirectly controlled by the Company • arranging of financing and development of financing systems in companies within the holding • development of human resources and systems of human resources development in companies within the holding • administration, acquisition of and disposal with ownership interests and other assets of the Company, in particular: (i) establishing of business corporations, participation in their foundation and other acquisitions of ownership interests in business of other legal entities, (ii) exercising of shareholder´s and similar rights within directly or indirectly controlled companies, (iii) renting of real estate and provision of basic services for due functioning of real estate. 3. Acting on behalf of the Company 3.1 The Company´s Board of Directors acts on behalf of the Company in all matters, provided that the Board of Directors shall always act through two of its members together while one of them shall be the chairman or the vice-chairman of the Board of Directors. Signing on behalf of the Company shall be performed in such way that the members of the Board of Directors authorized to act on behalf of the Company attach their signatures to the business name of the Company. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 89 II. Registered capital and shares of the Company 4. Registered capital of the Company 4.1 Registered capital of the Company is CZK 18,133,476,400 (in words: eighteen billion one hundred and thirty three million four hundred and seventy six thousand four hundred Czech crowns. 5. Shares of the Company 5.1 The registered capital of the Company is divided into 181.334.764 (in words: one hundred and eighty one million three hundred and thirty four thousand seven hundred and sixty four) common shares, each having the same nominal value of CZK 100. All Company´s shares are bearer shares. 5.2 The shares have been issued as book-entered shares and have been admitted to trading on a regulated market. 6. Rights and obligations of shareholders 6.1 The shareholder is entitled to participate, pursuant to the law and the Articles of Association of the Company, in the management and profits thereof and in the liquidation balance if the Company is wound up with liquidation. 6.2 The shareholder is entitled to attend the General Meeting and vote there. The shareholder is entitled to request and receive from the Company at the General Meeting explanation to matters pertaining to the Company or the persons controlled by it if such explanation is necessary in order to consider the contents of the matters included in the agenda of the General Meeting or to exercise his/her/its shareholder rights at the General Meeting. The explanation of the matters pertaining to the current General Meeting shall be provided to the shareholder by the Company directly at the General Meeting. If this is not possible due to the complexity of the explanation the Company shall provide it to the shareholders within 15 days of the date of the General Meeting, even if it is no longer necessary in order to consider the contents of the matters included in the agenda of the General Meeting or to exercise the shareholder rights at the General Meeting. The information included in the explanation must be unambiguous and must provide adequate and true picture of the facts asked about. The explanation may be provided in the form of an aggregate answer to multiple questions with similar con tent. A shareholder shall be deemed to have received the explanation also when the information was published on the Company’s website no later than the day preceding the date of the General Meeting and is available to the shareholders at the place of the General Meeting. The Board of Directors or the person convening the General Meeting may refuse to provide the explanation or any part thereof if (i) the provision of the explanation may cause harm to the Company or per sons controlled by the Company; (ii) it involves inside information or classified information pursuant to applicable legal regulation, or (iii) the requested explanation is publicly available. Fulfillment of the conditions for refusal to provide ex planation shall be assessed by the Board of Directors which shall communicate the reasons to the shareholder. The com munication of the refusal to provide explanation shall be included in the minutes from the General Meeting. In the case of a refusal to provide explanation, the shareholder may proceed according to Section 360 (2) and (3) of the Act on Corpora tions. 6.3 The shareholder is entitled to make proposals and counterproposals on the matters included in the agenda of the General Meeting. If a shareholder intends to make a counterproposal on the matters included in the agenda of the General Mee ting he/she/it shall deliver it to the Company within a reasonable time period prior to the date of the General Meeting; this shall not apply if it concerns proposals of certain persons for membership in the Company’s bodies. Details shall be gover ned by Sections 361 through 364 of the Act on Corporations. 6.4 The rights of qualified shareholders are regulated in Sections 365 through 374 of the Act on Corporations. 6.5 The shareholder is entitled to the share in the Company’s profits, which have been approved by the General Meeting to be distributed among the shareholders. This share in profits shall be determined according to the shareholder’s share in the registered capital. The decisive date for exercising the right to the share in profits shall be the decisive date for participati on at the General Meeting, which decided on the payment of the share in profits. The Company shall pay the share in profits, at its own cost and risk, in the manner determined by the General Meeting.; details of manner of payment of the share in profits determined by the General meeting shall be set forth by the Board of Directors in accordance with gene rally binding legal regulations. 6.6 Upon winding-up of the Company with liquidation, every shareholder is entitled to a share in the liquidation balance. The entitlement to the share in the liquidation balance arises as of the date of cancellation of the Company’s shares registered in the registry of book-entered shares of central depository based on the liquidator’s instruction. 6.7 In addition to other obligations, the shareholder is obliged to: a) pay within the set period and in duly manner the issue price of the shares subscribed by him/her/it; and b) comply with the Articles of Association of the Company. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 90 III. Company‘s organization 7. Structure of the Company 7.1 The Company establishes a dualistic system of its internal structure. 7.2 The Company´s bodies are: a) the General Meeting b) the Board of Directors c) the Supervisory Board d) the Audit Committee IV. General Meeting 8. Status and powers of the General Meeting 8.1 The General Meeting is the supreme body of the Company. 8.2 The powers of the General Meeting include the following: a) deciding on amendments of the Articles of Association, unless such change results from an increase in the registered capital by the authorized Board of Directors or such change is made by virtue of other legal facts; b) deciding on changes of the amount of the registered capital and authorization of the Board of Directors to increase the registered capital; c) deciding on the possibility of a set-off of a monetary receivable from the Company against a receivable to pay an issue price; d) deciding on increase in the registered capital by non-monetary contributions; e) deciding on issuance of convertible or priority bonds; f) deciding on exclusion or restriction of shareholders´ pre-emptive right to obtain convertible or priority bonds or to subscribe for new shares of the company in relation to increase of Company´s registered capital; g) deciding on change in form or class of shares and on change of rights assigned with a certain class of shares, decision on consolidation of shares; h) deciding on acquisition of own shares by the Company, where such decision is required by applicable laws; i) electing and recalling of members of the Supervisory Board; j) approving of annual, extraordinary or consolidated financial statements and, in cases stipulated by law, also interim financial statements; k) deciding on distribution of profits or other own resources or settlement of losses; l) deciding on filing of an application for admission of Company´s participating securities to trading on a European regulated market or withdrawal of such securities from trading on a European regulated market; m) deciding on winding up of the Company with liquidation; n) deciding on appointing and recalling of the liquidator; o) approving of a proposal on liquidation balance distribution; p) approving of a transfer or a pledge of enterprise or such part thereof, which would substantially change the current structure of the enterprise or which would substantially change the scope of business of the Company; q) deciding on undertaking of consequences of acts made on behalf of the Company prior its incorporation; r) approving of an agreement on silent partnership, including amending and cancelling thereof; s) deciding on a merger, division, transfer of assets to a shareholder, conversion of legal form, or cross-border moving of the registered office; t) appointing and recalling of members of the Audit Committee; u) approving of an agreement on performance of the office of a member of the Supervisory Board and the Audit Committee, including remuneration of members of the Supervisory Board and the Audit Committee and rules of providing discretionary benefits to members of the Supervisory Board and the Audit Committee; v) deciding on auditor for auditing financial statements of the Company and consolidated financial statements of the Company, as well as, for verifying other documents, if such verification is required by applicable laws; Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 91 w) approving of the rules of procedure of the General Meeting, as well as, adopting of organizational measures concer- ning the course of the General Meeting; x) decision on acquisition of assets by the Company from its founders or shareholders pursuant to Section 255 of Act on Corporations; y) other decisions delegated to the powers of the General Meeting by this Articles of Association or by law. 8.3 The Company shall bear costs related to organization of the General Meeting; shareholders shall not be entitled to compensation of costs of their attendance at the General Meeting. 9. Presence at the General Meeting 9.1 Each shareholder of the Company may attend the General Meeting personally or through a representative. If a shareholder represents another person regarding certain shares, he is entitled to exercise voting rights attached to such shares in a different way. 9.2 The power of attorney for representing at the General Meeting shall be in writing and shall include whether it has been granted for representing at one or more General Meetings. It is deemed that a person registered in the records of investment securities as a trustee or as a person authorized to perform the rights attached to the shares, is authorized to perform on behalf of a shareholder all rights attached to the shares registered on a particular account, including the right to vote at the General Meeting. The power of attorney form shall be available to shareholders of the Company from a moment of publication of an invitation to the General Meeting in the registered office of the Company and on the web pages of the Company. Each shareholder may notify the Company by electronic means of a granted power of attorney for his representing at the General Meeting, as well as, of recalling of a power of attorney by the principal. The notification may be performed by delivery of an e-mail message by the shareholder to the e-mail address valna.hromada@unipetrol.cz or general.meeting@unipetrol.cz with the attachment of the readable electronic copy (scan or photo picture via digital camera) of (a) a written power of attorney of the shareholder signed by the shareholder and saved in pdf, jpg or xps form, or (b) a written recall of a power of attorney signed by the shareholder and saved in pdf, jpg or xps form. In case that the e-mail message or its attachment containing the power of attorney or its recall is not readable, the Company shall request the shareholder to deliver a flawless written power of attorney or its recall again by electronic means provided that such request shall be sent by the Company to the e-mail address of the shareholder, from which the e-mail message with the defected power of attorney or its recall has been sent. In case that the written power of attorney or its recall is not readable, such power of attorney or its recall shall not be regarded as duly granted or recalled. Further potential details on notifying the Company of granting of power of attorney or its recall by electronic means may be specified in the invitation to the General Meeting pursuant to applicable law. The notification on granting of the power of attorney shall not affect the obligation of the shareholder or his representative to identify himself at the General Meeting by documents specified in the provision 9.3 hereof, except for the power of attorney. 9.3 The shareholder – an individual shall identify himself by a valid identity document. The shareholder – legal entity represented at the General Meeting by its statutory body or its member(s) or representative under power of attorney is further obliged to submit an shareholder – legal entity excerpt from the commercial register no older than three (3) months before the date of holding of the General Meeting. Shareholder´s representative is obliged to prove his identity by a written power of attorney containing the extent of the representative’s authority unless the granting of the power of attorney was notified to the Company by electronic means pursuant to section 9.2 hereof. In case of a power of attorney granted by the shareholder to a representative - legal entity, the representative is further obliged to submit an excerpt from the commercial register of such entity (proxy) no older than three (3) months before the date of holding of the General Meeting. The affected persons are obliged to hand over to the Company the powers of attorney and excerpts from the commercial register pursuant to this provision 9.3 hereof. The authorization of persons registered in the records of investment securities as a trustee or as a person authorized to exercise rights attached to shares kept at a particular account shall be proved by the excerpt from the records of investment securities which shall be arranged by the Company for purposes of the holding of the General Meeting. 9.4 Members of the Board of Directors, members of the Supervisory Board and members of the Audit Committee shall attend the General Meeting. The General Meeting may be also attended by auditors and notaries in cases required by applicable law, persons proposed by the Board of Directors into bodies of the General Meeting, persons proposed into bodies of the company, legal advisors of the company and other persons specified by the Board of Directors. Other persons may attend the General Meeting only subject to the consent of General Meeting; the General Meeting shall not be attended by the public. 9.5 The decisive day for attendance at the General Meeting of the Company is always the seventh (7.) calendar day preceding the day of the General Meeting. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 92 10. Convening of the General Meeting 10.1 The General Meeting shall be convened by publishing of an invitation to the General Meeting on Company´s web site www.unipetrol.cz, web site www.patria.cz and in the Commercial Gazette. Publishing of the invitation to the General Meeting in the Commercial Gazette substitutes sending of an invitation to the shareholder´s address pursuant to the provision 406 (1) of the Act on Corporations. 10.2 If the General Meeting is convened by the Board of Directors, the convocation and the proposed agenda shall be notified to the Supervisory Board, and the Board of Directors shall supplement the agenda in accordance with requests of the Supervisory Board, which shall be submitted in a time in order to keep time limits for convocation of the General Meeting in accordance with applicable law. If the General Meeting is convened by the Supervisory Board, the convocation and the proposed agenda shall be notified to the Board of Directors. The Supervisory Board shall supplement the agenda in accordance with requests of the Board of Directors which shall be submitted in a time in order to keep time limits for convocation of the General Meeting in accordance with applicable law. Together with the invitation to the General Meeting, however, not later than within the period for convocation of the General Meeting pursuant to applicable law, the convenor of the General Meeting shall submit to the other body also written materials on individual items of the agenda of the General Meeting proposed by the convenor. 10.3 The organization of the General Meeting shall be arranged by the Board of Directors. If the Board of Directors is not elected or is inactive for a long period, the organization of the General Meeting shall be arranged by its convenor. 11. Acting and decision-making of the General Meeting 11.1 The General Meeting may adopt decisions provided that the General Meeting is attended by shareholders owning shares with the nominal value representing more than a half (1/2) of the registered capital of the Company. 11.2 If the General Meeting is not able to adopt decisions after a lapse of one (1) hour from its scheduled commencement, the Board of Directors shall, if it is necessary, convene in accordance with applicable law a substitute General Meeting with the same agenda. 11.3 One (1) vote is attached to each share of nominal value of one hundred Czech crowns (CZK 100). Total number of votes at the Company is 181,334,764. 11.4 A voting shall be carried out by ballot papers, unless the General Meeting decides otherwise. 11.5 A voting shall be carried out upon an instruction of the chairman of the General Meeting. At first a proposal of a convenor of the General Meeting shall be voted on. If such proposal is not approved, then counterproposals in the order of their submission shall be voted on. 11.6 A decision of the General Meeting shall be adopted by the majority of votes of attending shareholders, unless these Articles of Association or applicable law stipulate different majority. 11.7 The qualified majority of two thirds (2/3) of votes of attending shareholders is required for adoption of a decision of the General Meeting: a) on approving of a transfer or a pledge of enterprise or such part thereof, which would substantially change the current structure of the enterprise or which would substantially change the scope of business of the Company, b) on amendments of the Articles of Association, c) by virtue of which the Articles of Association are changed, d) on authorization of the Board of Directors to increase the registered capital, e) on the possibility of a set-off of a monetary receivable from the Company against a receivable to pay an issue price, f) on issuance of convertible or priority bonds, and g) on winding up of the Company with liquidation and on distribution of liquidation balance. 11.8 Apart from qualified or, if applicable, simple majority of votes of attending shareholders also a majority of at least two thirds (2/3) of votes of attending shareholders of each class of shares whose rights are affected by such decision is required for a decision of the General Meeting on: a) approving of a transfer or a pledge of enterprise or such part thereof, which would substantially change the current structure of the enterprise or which would substantially change the scope of business of the Company, and b) change of the amount of registered capital. 11.9 Apart from qualified or, if applicable, simple majority of votes of attending shareholders also a majority of at least three quarters (3/4) of votes of attending shareholders having such shares is required for a decision of the General Meeting on: a) change of class or form of shares, b) change of rights attached to certain class of shares, c) restriction on transferability of registered shares or book-entered shares, and d) withdrawal of participating securities from trading on a European regulated market. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 93 11.10 A majority of at least three quarters (3/4) of votes of attending shareholders is required for a decision of the General Meeting on: a) exclusion or restriction of pre-emptive rights to obtain priority or convertible bonds, b) possibility to distribute profits to other persons than shareholders pursuant to the provision 34 (1) of the Act on Corporations, c) exclusion or restriction of pre-emptive rights of shareholder in case of increasing of the registered capital by subscription of new shares, and d) increase of the registered capital by non-monetary contributions. If the Company issued different classes of shares, a majority of at least three quarters (3/4) of votes of attending shareholders of each class of shares is required for a decision. This shall not apply if such decision would not affect owners of such classes of shares. 11.11 A decision on consolidation of shares shall also require consent of all shareholders whose shares should be consolidated. V. Board of Directors 12. Status and powers of the Board of Directors 12.1 The Board of Directors is Company´s statutory body. 12.2 The Board of Directors shall decide on all matters of the Company, except for matters entrusted by applicable law or by these Articles of Association to powers of other bodies of the Company. 12.3 The Board of Directors is responsible particularly for: a) business management; b) furnishing of a due bookkeeping; c) convening Company’s General Meetings; d) furnishing preparation of annual, extraordinary, consolidated or, if applicable, interim financial statements including proposal for distribution of profits or settlement of losses and submitting them for a review by the Supervisory Board and for an approval by the General Meeting; e) preparing report on business activities of the Company and on state of its property and other reports required by applicable laws; f) carrying out resolutions of the General Meeting. 12.4 The Board of Directors shall ask the Supervisory Board of the Company for its prior consent to the following acts: a) encumbrance, disposal or renting of Company´s property if the book value of such property exceeds under one agreement or, if applicable, several related agreements the amount of CZK 200,000,000; b) issuance of bonds, if their issuance does not require the consent of the General Meeting; c) provision of a loan or other financial indebtedness by the Company to other person or reception of a loan or other financial indebtedness by the Company from other person, if such loan or indebtedness exceeds in each individual case the amount of CZK 300,000,000; d) realization of investment with financial costs under one agreement or, if applicable, under several related agreements exceeding the amount of CZK 300,000,000; e) provision of an indemnification, guarantee or other security for undertakings of third parties; this shall not apply to a case when the Company provides an indemnification, guarantee or other security for undertakings of persons controlled by the Company, unless the value of such undertakings, indemnifications, guarantees or other security exceeds the amount of CZK 150,000,000; f) provision of sponsoring and donations exceeding in each particular case the amount of CZK 1,000,000; g) establishment or dissolution of a foreign organizational unit of the Company; h) (1) adoption, conclusion and changes of a founding legal act, including articles of association and an agreement on establishment of corporation, foundation, association, interest association or other legal entity (including entities with registered offices outside the Czech Republic), or (2) conclusion and changes of an agreement on acquisition, pledging or disposal of ownership interests in other legal entities, including legal acts or agreements on contributions in corporation, foundation or other legal entity (including entities with registered offices outside the Czech Republic); Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 94 i) exercising voting rights at general meetings of corporations which are directly controlled by the Company, i.e., in such corporations in which the Company holds directly an ownership interest amounting to at least fifty per cent (50%) in their registered capital and which according to their most recent annual financial statements or consolidated annual financial statements (if such corporations prepare consolidated annual financial statements) attained a turnover of at least CZK 15,000,000 (in words: fifteen million Czech crowns) (“Directly Controlled Corporations“), in the following matters: • deciding on election, appointment and recall of members of statutory and supervisory bodies of Directly Controlled Corporations; this shall not apply in case of Directly Controlled Corporations in which the Company as a shareholder or a member holds an ownership interest amounting to at least fifty per cent (50%) in their registered capital and where the Company concluded with other shareholders or members of such Directly Controlled Corporation a shareholders´ or similar agreement provided that the proposal for election, appointment or recall was submitted by another shareholder or member of such Directly Controlled Corporation in accordance with such shareholders´ or similar agreement; if it is necessary to recall a member of a statutory body of a Directly Controlled Corporation without undue delay, the consent of the Supervisory Board may be granted subsequently, • deciding on transformations of Directly Controlled Corporations, • deciding on amendments of articles of association or a founding legal act of a Directly Controlled Corporation, • deciding on distribution of net profits on the basis of the non-consolidated annual financial statements of a Directly Controlled Corporation, • deciding on winding up of a Directly Controlled Corporation, and • deciding on transfer, lease or pledge of enterprise of a Directly Controlled Corporation or such part thereof, which would substantially change the current structure of the enterprise or the scope of business or activity of a Directly Controlled Corporation. j) setting the Company’s strategy and setting the Company’s long-term business plan, annual business plan and mid- term business plan, including resources and means for their securing and mechanisms for controlling of their performance; k) adopting and amending of the rules of procedure of the Board of Directors; l) documents submitted by the Board of Directors to the General Meeting, and m) proposals of the Board of Directors for increasing of the registered capital by a decision of the Board of Directors pursuant to section 511 et seq. of the Act on Corporations; n) conclusion of employment relationship with the Chief Executive Officer of the Company and recalling him from this function. 13. Board of Directors composition and terms of office 13.1 The Board of Directors shall have seven (7) members, which shall be elected and recalled by the Supervisory Board. 13.2 The term of office of each member of the Board of Directors shall be three (3) years. Member of the Board of Directors may be re-elected. 13.3 The Board of Directors shall elect a chairman and two (2) vice-chairmen from its members. Each of the vice-chairmen individually shall fully substitute the chairman in performance of his office. 13.4 A member of the Board of Directors shall not: a) carry out a business activity within a scope of business of the Company, (even in favour of other persons) or intermediate business with the Company for a third person, b) be a member of statutory body or a person in a similar position in other legal entity, unless such entity is a member of the same holding group, c) participate in a business activity of other corporation as a member with unlimited liability or as a person controlling other person with the same or similar scope of business. 13.5 A member of the Board of Directors shall notify in writing to the Supervisory Board any event under Section 13.4 of these Articles of Association, if such an event occurs in the course of his/her performance of the position of the member of the Board of Directors. In such case the Supervisory Board shall proceed in line with Section 442 of the Act on Business Corporations. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 95 14. Decision-making of the Board of Directors 14.1 In case of decision-making of the Board of Directors on its meeting, the Board of Directors may adopt decisions if there are present more than a half (1/2) of all members of the Board of Directors. Decision shall be adopted by the simple majority of votes of all members, unless applicable law requires a qualified majority. Each member of the Board of Directors shall have one (1) vote. 14.2 If all elected or appointed members of the Board of Directors agree so, the meetings of the Board of Directors may take place via communication means, i.e., via videoconference or teleconference: (a) A consent of the member of the Board of Directors to holding of the particular meeting of the Board of Directors via communication means may be provided either verbally at the preceding meeting of the Board of Directors, or any time before the holding of the respective meeting in writing or through an e-mail sent from a company e-mail address assigned to the member of the Board of Directors, at latest, however, at the very beginning of the respective meeting in verbal form (which includes also the videoconference or teleconference communication). (b) The member of the Board of Directors attending the meeting via communication means shall introduce himself/ herself and other members present at the meeting shall confirm his/her identity by clearly stating his full name; rules of procedure of Board of Directors may allow for other suitable manner of verification of identity of the members of the Board of Directors. Such verification of the identity shall be recorded in the minutes of the meeting. (c) Members of the Board of Directors attending the meeting via communication means are deemed to be present at the meeting and shall be recorded in the attendance list attached to the minutes of the meeting. In case of interruption of connection in the course of the meeting the respective member of the Board of Directors affected by such interruption shall be deemed not to be present from the moment of interruption of connection until the moment of eventual re-connection to the meeting via communication means. The occurrence of the interruption of connection must be recorded in the minutes of the meeting. (d) The meetings of the Board of Directors held via communication means may be attended only by members of the Board of Directors and persons invited to such meeting of the Board of Directors. Persons attending the meeting of the Board of Directors via communication means must be mutually audible. (e) On the meeting of the Board of Directors held via communication means, any voting shall be performed in the way that the Chairman asks step by step all individual members of the Board of Directors on their voting on a particular resolution and the members of the Board of Directors expressly state whether they vote for, against, or abstain; rules of procedure of Board of Directors may allow for other suitable manner of voting on the meeting of theBoardofDirectorsheldviacommunicationmeans.AtthemeetingoftheBoardofDirectorsheldviacommunication means a secret voting may not be performed. (f) Other conditions for holding of the meeting of the Board of Directors by communication means may be stipulated in the rules of procedure of the Board of Directors. (g) The provision 14.1 hereof shall be used accordingly. 14.3 The Board of Directors may adopt a decision outside of the meeting of the Board of Directors through a voting in writing or through a voting by communication means (particularly through e-mail, teleconference or videoconference). Other conditions of per rollam voting may be stipulated in the rules of procedure of the Board of Directors. The provision 14.1 hereof shall be used accordingly. 14.4 If a meeting of the Board of Directors takes place, the per rollam voting may be applied to members of the Board of Directors not attending the meeting. 14.5 Details on decision-making of the Board of Directors may be stipulated in the rules of procedure of the Board of Directors. The rules of procedure of the Board of Directors and amendments thereof shall be adopted by the Board of Directors with prior consent of the Supervisory Board. VI. Supervisory Board 15. Status and powers of the Supervisory Board 15.1 The Supervisory Board is Company´s controlling body, which supervises performance of powers by the Board of Directors and functioning of the Company. 15.2 The Supervisory Board is responsible particularly for: Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 96 a) reviewing of performance of powers by the Board of Directors, particularly reviewing of fulfillment of tasks assigned to the Board of Directors by the General Meeting, observing of the Articles of Association and applicable law within Company’s activities, reviewing of Company’s business activity, state of assets, receivables, obligations and proper and verifiable accounting. The Supervisory Board shall submit results, conclusions and recommendations of its controlling activity to the General Meeting; b) reviewing of annual, extraordinary, consolidated or, if applicable, interim financial statements and proposal for distribution of profits or settlement of losses and submitting of its standpoints to the General Meeting; c) discussing of all proposals of the Board of Directors submitted to the General Meeting and potentially submitting of its standpoints on the respective matters to the General Meeting; d) asking the Board of Directors for insertion of an item into the agenda of General Meeting; e) electing and recalling of members of the Board of Directors; f) approving of agreements on performance of the office with individual members of the Board of Directors; g) approving of managerial agreements or other agreements regarding wages and other benefits provided by the Company to individual members of the Board of Directors or their close persons; h) setting a subject-matter, content and deadline for submission by the Board of Directors of annual financial plans, long term financial plans and plans of Company´s development strategy; i) exercising other powers which are entrusted to the Supervisory Board by applicable law or by these Articles of Association. 15.3 The Supervisory Board is authorised to grant its prior consent to: a) acting and acts of the Board of Directors pursuant to the provision 12.4 hereof; and b) benefits to be provided by the Company to a member of the Board of Directors which are not granted by law or approved agreement on performance of an office, any agreement pursuant to the provision 15.2 g) hereof or by internal regulation approved by the Supervisory Board; 15.4 Each member of the Supervisory Board is entitled to nominate a member of the Board of Directors or propose recalling of a member of the Board of Directors. A voting on election or recalling of a member of the Board of Directors shall be carried out by a secret voting of the Supervisory Board; Per rollam voting shall not be possible in this case. 16. Supervisory Board composition and terms of office 16.1 The Supervisory Board shall have nine (9) members, which shall be elected and recalled by the General Meeting. 16.2 The term of office of each member of the Supervisory Board shall be three (3) years. Member of the Supervisory Board may be re-elected. 16.3 Unless the number of members of the Supervisory Board decreased bellow one half, the Supervisory Board may appoint substitute members till the next General Meeting. 16.4 The Supervisory Board shall elect a chairman and two (2) vice-chairmen from its members. Each of the vice-chairmen individually shall fully substitute the chairman in performance of his office. 16.5 A member of the Supervisory Board shall not: a) carry out a business activity within a scope of business of the Company, (even in favour of other persons) or intermediate business with the Company for a third person, b) be a member of statutory body or a person in a similar position in other legal entity with the same or similar scope of business, unless such entity is a member of the same holding group, c) participate in a business activity of other corporation as a member with unlimited liability or as a person controlling other person with the same or similar scope of business. 16.6 The Supervisory Board may, on the basis of its decision, establish committees of the Supervisory Board to support realization of Company´s strategic goals through submitting of standpoints and recommendations to the Supervisory Board. Only members of the Supervisory Board shall be members of the Committees of the Supervisory Board. A decision of the Supervisory Board on establishment of a particular committee shall stipulate committee´s composition and powers in a way that the powers of other Company´s bodies would not be affected. Details on meetings of a committee of the Supervisory Board and its powers shall be stipulated in rules of procedure of a committee of the Supervisory Board, which shall be approved by the Supervisory Board. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 97 17. Decision-making of the Supervisory Board 17.1 In case of decision-making of the Supervisory Board on its meeting, the Supervisory Board may adopt decisions if there are present more than half of all members of the Supervisory Board. Decision shall be adopted by the simple majority of votesofallmembers,unlessapplicablelawrequiresqualifiedmajority.EachSupervisoryBoardmembershallhaveone(1)vote. 17.2 If a simple majority of all elected or appointed members of the Supervisory Board agree so, the meetings of the Supervisory Board may take place via communication means, i.e., via videoconference or teleconference: (a) A consent of the member of the Supervisory Board to holding of the particular meeting of the Supervisory Board via communication means may be provided either verbally at the preceding meeting of the Supervisory Board, or any time before the holding of the respective meeting in writing or through an e-mail sent from a company e-mail address assigned to the member of the Supervisory Board, at latest, however, at the very beginning of the respective meeting in verbal form (which includes also the videoconference or teleconference communication). (b) The member of the Supervisory Board attending the meeting via communication means shall introduce himself/ herself and shall confirm his/her identity by clearly stating his full name; rules of procedure of Supervisory Board may allow for other suitable manner of verification of identity of the members of the Supervisory Board. Such verification of the identity shall be recorded in the minutes of the meeting. (c) Members of the Supervisory Board attending the meeting via communication means are deemed to be present at the meeting and shall be recorded in the attendance list attached to the minutes of the meeting. In case of interruption of connection in the course of the meeting the respective member of the Supervisory Board affected by such interruption shall be deemed not to be present from the moment of interruption of connection until the moment of eventual re-connection to the meeting via communication means. The occurrence of the interruption of connection must be recorded in the minutes of the meeting. (d) The meetings of the Supervisory Board held via communication means may be attended only by members of the Supervisory Board and persons invited to such meeting of the Supervisory Board. Persons attending the meeting of the Supervisory Board via communication means must be mutually audible. (e) On the meeting of the Supervisory Board held via communication means, any voting shall be performed in the way that the Chairman asks step by step all individual members of the Supervisory Board on their voting on a particular resolution and the members of the Supervisory Board expressly state whether they vote for, against, or abstain; rules of procedure of Supervisory Board may allow for other suitable manner of voting on the meeting of theSupervisoryBoardheldviacommunicationmeans.AtthemeetingoftheSupervisoryBoardheldviacommunication means a secret voting may not be performed. (f) Other conditions for holding of the meeting of the Supervisory Board by communication means may be stipulated in the rules of procedure of the Supervisory Board. (g) The provision 17.1 hereof shall be used accordingly. 17.3 The Supervisory Board may adopt a decision outside of the meeting of the Supervisory Board through a written voting or through a voting by communication means (particularly through e-mail, teleconference or videoconference). Other conditions of per rollam voting may be stipulated in the rules of procedure of the Supervisory Board. The provision 17.1 hereof shall be used accordingly. 17.4 If a meeting of the Supervisory Board takes place, the per rollam voting may be applied to members of the Supervisory Board not attending the meeting. 17.5 Details on Supervisory Board´s acting and performance of controlling activity shall be stipulated in the rules of procedure of the Supervisory Board. The rules of procedure of the Supervisory Board and its amendments shall be approved by the Supervisory Board. VII. Audit Committee 18. Status and powers of the Audit Committee 18.1 The Audit Committee is Company´s body, which, without affecting liability of members of the Board of Directors or the Supervisory Board, performs particularly the following: a) supervises a procedure of preparation of financial statements and consolidated financial statements; Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 98 b) evaluates an efficiency of inner controlling within the Company, inner audit and, if applicable, risk management system; c) supervises a process of obligatory audit of financial statements and consolidated financial statements; d) evaluates independence of statutory auditor and auditing company, in particular provision of auxiliary services to the Company; e) recommends an auditor for verification of financial statements and consolidated financial statements; f) comments on a proposal of change of director of internal audit. 18.2 Members of the Audit Committee shall attend the General Meeting and shall inform the General Meeting on results of its activity. 19. Audit Committee composition and terms of office 19.1 The Audit Committee shall have four (4) members, which shall be appointed from members of the Supervisory Board or third persons. Members of the Audit Committee shall be appointed and recalled by the General Meeting. Members of the Audit Committee shall not perform an office of a member of the Board of Directors or a procurator. At least one (1) member of the Audit Committee shall be independent of the Company and shall have at least three years of practical experience in the field of accounting or obligatory audit. 19.2 The term of office of each member of the Audit Committee shall be three (3) years. Member of the Audit Committee may be re-elected. 19.3 The Audit Committee shall elect a chairman and a vice-chairman from its members. The vice-chairman shall fully substitute the chairman in performance of his office. 19.4 Unless the number of members of the Audit Committee decreased bellow one half, the Supervisory Board may appoint substitute members of the Audit Committee till the next General Meeting. Only a substitute member of the Audit Committee independent of the Company may be appointed to a vacant position of member of the Audit Committee independent of the Company. 20. Decision-making of the Audit Committee 20.1 In case of decision-making of the Audit Committee on its meeting, the Audit Committee may adopt decisions if there are present more than half of all members of the Audit Committee. Decision shall be adopted by the simple majority of votes of all members, unless applicable law requires qualified majority. Each member of the Audit Committee shall have one (1) vote. In the case of equal votes the vote of the chairman shall be decisive. 20.2 If all elected or appointed members of the Audit Committee agree so, the meetings of the Audit Committee may take place via communication means, i.e., via videoconference or teleconference: (a) A consent of the member of the Audit Committee to holding of the particular meeting of the Audit Committee via communication means may be provided either verbally at the preceding meeting of the Audit Committee , or any time before the holding of the respective meeting in writing or through an e-mail sent from a company e-mail address assigned to the member of the Audit Committee , at latest, however, at the very beginning of the respective meeting in the oral form (which includes also the videoconference or teleconference communication). (b) The member of the Audit Committee attending the meeting via communication means shall introduce himself/ herself and shall confirm his/her identity by clearly stating his full name; rules of procedure of Audit Committee may allow for other suitable manner of verification of identity of the members of the Audit Committee. Such verification of the identity shall be recorded in the minutes of the meeting. (c) Members of the Audit Committee attending the meeting via communication means are deemed to be present at the meeting and shall be recorded in the attendance list attached to the minutes of the meeting. In case of interruption of connection in the course of the meeting the respective member of the Audit Committee affected by such interruption shall be deemed not to be present from the moment of interruption of connection until the moment of eventual re-connection to the meeting via communication means. The occurrence of the interruption of connection must be recorded in the minutes of the meeting. (d) The meetings of the Audit Committee held via communication means may be attended only by members of the Audit Committee and persons invited to such meeting of the Audit Committee. Persons attending the meeting of the Audit Committee via communication means must be mutually audible. Appendix 1 – Articles of Association

UNIPETROL, a.s. Annual report 2014 99 (e) On the meeting of the Audit Committee held via communication means, any voting shall be performed in the way that the Chairman asks step by step all individual members of the Audit Committee on their voting on a particular resolution and the members of the Audit Committee expressly state whether they vote for, against, or abstain; rules of procedure of Audit Committee may allow for other suitable manner of voting on the meeting of the Audit Committee held via communication means. At the meeting of the Audit Committee held via communication means a secret voting on any of the proposed resolutions may not be performed. (f) Other conditions for holding of the meeting of the Audit Committee by communication means may be stipulated in the rules of procedure of the Audit Committee. (e) The provision 20.1 hereof shall be used accordingly. 20.3 The Audit Committee may adopt a decision outside of the meeting of the Audit Committee through a voting in writing or through a voting by communication means (particularly through e-mail, teleconference or videoconference). Other conditions of per rollam voting may be stipulated in the rules of procedure of the Audit Committee. The provision 20.1 hereof shall be used accordingly. 20.4 If a meeting of the Audit Committee takes place, the per rollam voting may be applied to members of the Audit Committee not attending the meeting. 20.5 Details on Audit Committee´s acting and performance of controlling activity shall be stipulated in the rules of procedure of the Audit Committee, which shall be approved by the Audit Committee. VIII. Other provisions 21. Distribution of profits, settlement of losses and creating of funds 21.1 Profits may, in accordance with a decision of the General Meeting, be used particularly for: a distribution among shareholders, an increase of the registered capital from Company´s own resources, voluntary contributions to reserve or other funds of the Company (provided that such funds were created), a determination of royalties of members of the Board of Directors and the Supervisory Board of the Company, royalties of Company´s employees and other purposes allowed by law, or potentially a settlement of losses or a transfer to a retained profits account. The previous sentence hereof shall be used similarly on a decision of the General Meeting on method of distribution of retained profits from previous periods. 21.2 The Company’s duty to create and supplement the reserve fund as such duty was regulated in Section 217 of the Act No. 513/1991 Coll., the Commercial Code, valid as of 31 December 2013, is hereby cancelled. The right to decide on disposing of the reserve fund in the extent in which it was created as of 26 May 2014 is vested within the powers of the Board of Directors; this shall not affect the right of the General Meeting to decide on the distribution of this reserve fund among the shareholders 21.3 The Board of Directors may decide on establishment of reserve or other funds of the Company and disposing with them. 21.3 Company´s losses may, in accordance with a decision of the General Meeting, be covered from retained profits from previous periods, share premium, reserve or other funds (provided that such funds were created), by a decrease of the registered capital, or potentially by a settlement of losses from results of future business activity by their transferring to account of losses from previous periods. 22. Submission under Commercial Corporations Act 22.1 By adoption of these Articles of Association the Company submits itself under the regime of the Act No. 90/2012 Coll., the Commercial Corporations Act (the “Act on Corporations”) as a whole. 22.2 Rights and obligations not expressly regulated by these Articles of Association shall be governed by the applicable law. 22.3 These Articles of Association were adopted on 26.5.2014. Marek Świtajewski Piotr Wielowieyski Chairman of the Board of Directors Vice-Chairman of the Board of Directors Appendix 1 – Articles of Association

“Our energy powers success and necessary change.” EnERGy EnERGy

UNIPETROL, a.s. Annual report 2014 101 Auditor’s report Auditor’s report

UNIPETROL, a.s. Annual report 2014 102 Auditor’s report

UNIPETROL, a.s. Annual report 2014 103 Auditor’s report

Separate financial statements UNIPETROL, a.s. Annual report 2014 104 (in millions of CZK) Separate financial statements for the year 2014 Translation from the Czech original Contentpage Separate statement of profit or loss and other comprehensive income . . . . . . . . . . . . 106 Separate statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Separate statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Separate statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Accounting principles and other explanatory notes . . . . . . . . . . . . . . . . . . . . . 110 1. Description of the company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 2. Statements of the Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 3. Accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 3.1 Principles of preparation of financial statements . . . . . . . . . . . . . . . . . . . . . . . . . 112 3.2 Impact of IFRS amendments and interpretations on non-consolidated financial statements of the Company . . . 112 3.3 Functional and presentation currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 3.4 Accounting policies applied by the Company . . . . . . . . . . . . . . . . . . . . . . . . . . 113 4. Application of professional judgements and assumptions . . . . . . . . . . . . . . . . . . 131 5. The parent company and structure of the consolidated group . . . . . . . . . . . . . . . . 132 Explanatory notes to the separate financial statements . . . . . . . . . . . . . . . . . . . 135 6. Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 6.1 Geographical information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 6.2 Major customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 7. Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 7.1 Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 7.2 Cost by nature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 7.3 Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 8. Other operating income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 8.1 Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 8.2 Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 9. Finance income and finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 9.1 Finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 9.2 Finance cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 10. Tax Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 10.1 The differences between income tax expense recognized in profit or loss and the amount calculated based on profit before tax . . . . . . . . . . . . . . . . . . . . . . 138 10.2 Deferred tax assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 11. Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Separate financial statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union

Separate financial statements UNIPETROL, a.s. Annual report 2014 105 (in millions of CZK) Contentpage 12. Investment property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 13. Shares in related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 14. Other non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 15. Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 16. Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 17. Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 18. Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 18.1 Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 18.2 Statutory reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 18.3 Revaluation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 18.4 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 18.5 Capital management policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 18.6 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 19. Loans, borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 20. Trade and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 21. Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 22. Financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 22.1 Financial instruments by category and class . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 22.2 Income and costs, gain and loss in the statement of profit or loss and other comprehensive income . . . 150 22.3 Financial risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 22.4 Credit risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 22.5 Liquidity risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 22.6 Market risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 23. Fair value determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 23.1 Methods applied in determining fair values of financial instruments (fair value hierarchy) . . . . . . . . 156 24. Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 24.1 The Company as lessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 24.2 The Company as lessor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 25. Contingent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 26. Past enviromental liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 27. Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 27.1 Material transactions concluded by the Company with related parties . . . . . . . . . . . . . . . . 159 27.2 Transactions with key management personnel . . . . . . . . . . . . . . . . . . . . . . . . . 159 27.3 Transaction with related parties concluded by key management personnel of the Company . . . . . . 159 27.4 Transactions and balances of settlements of the Company with related parties . . . . . . . . . . . . 159 28. Remuneration paid and due or potentially due to Management Board, Supervisory Board and other members of key executive personnel in accordance with IAS 24 . . 161 28.1 Bonus system for key executive personnel of the Company . . . . . . . . . . . . . . . . . . . . 161 28.2 The entitlements upon the termination of employment . . . . . . . . . . . . . . . . . . . . . . 161 29. Subsequent events after the reporting date . . . . . . . . . . . . . . . . . . . . . . . . . 161 30. Approval of the financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161

Separate financial statements UNIPETROL, a.s. Annual report 2014 106 (in millions of CZK) Separate statement of profit or loss and other comprehensive income Note 2014 2013 Statement of profit or loss Revenues 6 155 141 Cost of sales 7.1 (86) (85) Gross profit on sales   69 56 Administrative expenses 7.2 (202) (204) Other operating income 8.1 22 3 Other operating expenses 8.2 (1) (1) Loss from operations   (112) (146) Finance income 9.1 549 1,319 Finance costs 9.2 (104) (233) Net finance income   445 1,086 Profit before tax   333 940 Tax expense 10 (5) (2) Net profit   328 938 Total net comprehensive income   328 938 Net profit and diluted net profit per share (in CZK per share) 18.6 1.81 5.17 Separate financial statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union The separate financial statements are to be read in conjunction with the notes forming part of the separate financial statements set out on pages 110 - 161.

Separate financial statements UNIPETROL, a.s. Annual report 2014 107 (in millions of CZK) Separate statement of financial position Note 31/12/2014 31/12/2013 Assets Non-current assets       Property, plant and equipment 11 9 10 Investment property 12 1,156 1,156 Shares in related parties 13 14,542 13,991 Other non-current assets 14 1,472 1,520     17,179 16,677 Current assets       Trade and other receivables 15 165 151 Other financial assets 16 15,058 12,689 Current tax receivables   12 25 Cash and cash equivalents 17 516 158     15,751 13,023 Total assets   32,930 29,700 EQUITY AND LIABILITIES       EQUITY       Share capital 18.1 18,133 18,133 Statutory reserves 18.2 1,719 1,672 Revaluation reserve 18.3 503 503 Retained earnings 18.4 6,331 6,050 Total equity   26,686 26,358 LIABILITIES       Non-current liabilities       Loans and borrowings 19 4,000 2,000 Deferred tax liabilities 10 113 112     4,113 2,112 Current liabilities       Trade and other liabilities 20 135 137 Loans and borrowings 19 21 268 Other financial liabilities 21 1,975 825     2,131 1,230 Total liabilities   6,244 3,342 Total equity and liabilities   32,930 29,700 The separate financial statements are to be read in conjunction with the notes forming part of the separate financial statements set out on pages 110 - 161.

Individuální účetní uzávěrka UNIPETROL, a .s . PB Separate financial statements UNIPETROL, a .s . Annual report 2014 108 (in millions of CZK) Separate statement of changes in equity   Share capital Statutory reserves Revaluation reserve Retained earnings Total equity 1 January 2014 18,133 1,672 503 6,050 26,358 Net profit - - - 328 328 total net comprehensive income - - - 328 328 Allocation of profit - 47 - (47) - 31 December 2014 18,133 1,719 503 6,331 26,686 1 January 2013 18,133 1,652 503 5,132 25,420 Net profit - - - 938 938 total net comprehensive income - - - 938 938 Allocation of profit - 20 - (20) - 31 December 2013 18,133 1,672 503 6,050 26,358 The separate financial statements are to be read in conjunction with the notes forming part of the separate financial statements set out on pages 110 - 161.

Separate financial statements UNIPETROL, a.s. Annual report 2014 109 (in millions of CZK) Separate statement of cash flows Bod  2014 2013 Cash flows - operating activities Net profit   328 938 Adjustments for:       Depreciation and amortisation 7  1 2 Foreign exchange gain   (19) (7) Interest and dividends, net   (448) (1,073) Profit on investing activities   - (17) Tax expense 10  5 2 Income tax (paid) 9 (10) Change in working capital   (14) 15 receivables   (13) 41 liabilities   (1) (26) Net cash used in operating activities (138) (150) Cash flows - investing activities     Acquisition of property, plant and equipment and intangible assets - (7) Disposal of property, plant and equipment and intangible assets - 1 Acquisition of shares in ČESKÁ RAFINÉRSKÁ, a.s.   (551) - Interest received   192 379 Dividends received   359 968 Proceeds/(Outflows) from loans granted   (2,076) (195) Proceeds/(Outflows) from cash pool granted   (249) (1,734) Net cash used in investing activities (2,325) (587) Cash flows - financing activities     Proceeds from loans and borrowings   7 057 2,266 Repayments of loans and borrowings   (5,323) (17) Repayment of bonds granted   - (2,000) Proceeds/(Outflows) from cash pool received 1 150 (390) Interest paid   (76) (259) Other (4) (6) Net cash provided by / (used in) financing activities 2,804 (406) Net increase/(decrease) in cash and cash equivalents 341 (1,143) Effect of exchange rate changes 17 7 Cash and cash equivalents, beginning of the year 158 1,294 Cash and cash equivalents, end of the year 17 516 158 The separate financial statements are to be read in conjunction with the notes forming part of the separate financial statements set out on pages 110 - 161.

Separate financial statements UNIPETROL, a.s. Annual report 2014 110 (in millions of CZK) 1. Description of the company Establishment of the Company UNIPETROL, a.s. (the “Company” or “Unipetrol”) is a joint stock company established by the National Property Fund of the Czech Republic by a foundation agreement dated 27 December 1994. The Company was registered in the Register of Companies at the Regional Commercial Court in Prague on 17 February 1995. The Company is listed and registered on the Prague Stock Exchange. Identification number of the Company 616 72 190 Registered office of the Company UNIPETROL, a.s. Na Pankraci 127 140 00 Praha 4 Czech Republic Principal activities The Company operates as a holding company covering and administering a group of companies (hereinafter the “Group”). The principal businesses of the Group include oil and petroleum products processing, production of commodity chemicals, polymer materials, mineral lubricants, plastic lubricants, paraffins, road and insulation bitumen, special refinery and petrochemical products. Furthermore, the Group is engaged in the distribution of fuels and operation of gas stations. In addition to these principal activities, the Group is engaged in other activities that are necessary to support the principal activities, such as production, distribution and sale of heat and electricity, operation of railway tracks and railway transportation, advisory services relating to research and development, environmental protection, software and hardware advisory services and other services. Ownership structure The shareholders as at 31 December 2014 are as follows:     Number of shares Nominal value of shares (in CZK) Share in share capital POLSKI KONCERN NAFTOWY ORLEN S.A. 114,226,499 11,422,649,900 62.99% J&T Group *   42,976,339 4,297,633,900 23.70% Investment funds and other minority shareholders 24,131,926 2,413,192,600 13.31%     181,334,764 18,133,476,400 100% * As of 19 March 2014 (last available data) - According to notification received on 31 March 2014 J&T Group holds 23,70% share of votes through following companies: PAULININO LIMITED, EGNARO INVESTMENTS LIMITED, LEVOS LIMITED, LCE COMPANY LIMITED, NEEVAS INVESTMENT LIMITED, UPRECHT INVESTMENT LIMITED, MUSTAND INVESTMENT LIMITED. Accounting principles and other explanatory notes

Separate financial statements UNIPETROL, a.s. Annual report 2014 111 (in millions of CZK) Statutory and supervisory bodies Members of the statutory and supervisory bodies of UNIPETROL, a.s. as at 31 December 2014 were as follows:   Position Name Board of Directors Chairman Marek Świtajewski   Vice-chairman Piotr Wielowieyski   Member Martin Durčák   Member Mirosław Kastelik   Member Andrzej Kozłowski   Member Lukasz Piotrowski Supervisory Board Chairman Dariusz Jacek Krawiec   Vice-chairman Ivan Kočárník   Vice-chairman Sławomir Jędrzejczyk   Member Piotr Kearney   Member Zdeněk Černý   Member Krystian Pater   Member Rafał Sekuła   Member Piotr Chełminski   Member Bogdan Dzudzewicz Changes in the board of directors during the year 2014 were as follows: Position  Name Change Date of change Member  Artur Paździor Resigned 30 April 2014 Member  Lukasz Piotrowski Elected into the office 11 June 2014 Changes in the supervisory board during the year 2014 were as follows:   Position  Name Change Date of change Member  Dariusz Jacek Krawiec Reelected to the office 1 July 2014 Member  Piotr Kearney Reelected to the office 1 July 2014 Member  Sławomir Jędrzejczyk Reelected to the office 1 July 2014

Separate financial statements UNIPETROL, a.s. Annual report 2014 112 (in millions of CZK) 2. Statements of the Management Board The Management Board of UNIPETROL, a.s. hereby declares that to the best of their knowledge the foregoing separate (non-consolidated) financial statements and comparative data were prepared in compliance with the accounting principles applicable to the Company in force (disclosed in note 3) and that they reflect true and fair view on financial position and financial result, including basic risks and exposures. 3. Accounting principles 3.1 Principles of preparation of financial statements The separate financial statements (hereinafter also “non-consolidated financial statements”) have been prepared in accordance with International Financial Reporting Standards (IFRSs) and their interpretations approved by the International Accounting Standards Board (IASB) which were adopted by the European Union (EU) and were in force as at 31 December 2014. Financial statements have been prepared based on historical cost, except for: derivatives, financial instruments at fair value through profit and loss, financial assets available for sale, and investment properties stated at fair value. The non-consolidated financial statements are compliant with all requirements of IFRSs adopted by the EU and present a true and fair view of the Company’s financial position as at 31 December 2014, results of its operations and cash flows for the year ended 31 December 2014. These non-consolidated financial statements have been prepared on a going concern basis. As at the date of approval of the statements there is no indication that the Company will not be able to continue as a going concern in the foreseeable future. The financial statements, except for statement of cash flows, are prepared on the accrual basis of accounting. 3.2 Impact of IFRS amendments and interpretations on non-consolidated financial statements of the Company 3.2.1. Binding amendments and interpretations to IFRSs The amendments to standards and IFRS interpretations, in force from 1 January 2014 until the date of publication of these separate financial statements had no impact on the foregoing separate financial statements. 3.2.2. IFRSs and their interpretations, announced and adopted by the European Union, not yet effective The Company intends to adopt new standards and amendments to the standards and interpretations to IFRSs listed below that are published by the International Accounting Standards Board, but not effective as at the date of publication of these financial statements, in accordance with their effective date. • IFRIC Interpretation 21 - Levies (effective for annual periods beginning on or after 17 June 2014) • It is expected that the interpretation, when initially applied, will have no material impact on the separate financial statements of the Company, since it does not result in a change in the Company‘s accounting policy regarding levies. • Amendments to IAS 19 - Employee Benefits entitled Defined Benefit Plans: Employee Contributions (effective for annual periods beginning on or after 1 February 2015) • It is expected that the amendment, when initially applied, will have no material impact on the separate financial statements of the Company, since the Company does not have such employee contributions. • Annual Improvements to IFRSs 2010-2012 cycle (effective for annual periods beginning on or after 1 February 2015) • Annual Improvements to IFRSs 2011-2013 cycle (effective for annual periods beginning on or after 1 January 2015) It is expected that the aforementioned improvements to standards, when initially applied, will have no material impact on the separate financial statements of the Company.

Separate financial statements UNIPETROL, a.s. Annual report 2014 113 (in millions of CZK) 3.2.3. Standards and interpretations adopted by International Accounting Standards Board (IASB), waiting for approval of EU • New standard IFRS 9 - Financial Instruments • New standard IFRS 14 - Regulatory Deferral Accounts • New standard IFRS 15 - Revenue from Contracts with Customers • Amendments to IFRS 11 - Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations • Amendments to IAS 16 - Property, Plant and Equipment and IAS 38 - Intangible Assets: Clarification of Acceptable Methods of Depreciation and Amortisation • Amendments to IAS 16 - Property, Plant and Equipment and IAS 41 - Agriculture: Agriculture: Bearer Plants • Amendments to IAS 27 - Separate Financial Statements: Equity Method in Separate Financial Statements • Amendments to IFRS 10 - Consolidated Financial Statements and IAS 28 - Investments in Associates: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture • Annual Improvements to IFRSs 2012-2014 cycle • Amendments to IFRS 10 - Consolidated Financial Statements, IFRS 12 - Disclosure of Interests in Other Entities and IAS 28 - Investments in Associates and Joint Ventures: Investment Entities: Applying the Consolidation Exception • Amendments to IAS 1 - Presentation of Financial Statements: Disclosure initiative It is expected that the aforementioned standards, amendments and interpretation to standards, when initially applied, will have no material impact on the separate financial statements of the Company. Based on the new standard IFRS 9, classification of financial assets into respective categories will change. In addition, the impact of the initial application of the new standard IFRS 15 will depend on the specific facts and circumstances of the contracts with customers to which the Company will be a party. 3.3 Functional and presentation currency These non-consolidated financial statements are presented in Czech crowns (CZK), which is the Company’s functional and presentation currency. All financial information presented in CZK has been rounded to the nearest million. In prior year the financial information were presented in CZK thousands. In current year the Company changed the presentation to CZK million and performed corresponding changes in prior year figures. 3.4 Accounting policies applied by the Company 3.4.1 Change in accounting policies, estimates and prior period errors An entity shall change an accounting policy only if the change: • is required by an IFRS or • results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the financial position, financial performance or cash flows. In case of change in accounting policy it is assumed that the new policy had always been applied. The amount of the resulting adjustment is made to the equity. For comparability, the entity shall adjust the financial statements (comparative information) for the earliest prior period presented as if the new accounting policy had always been applied, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. Items of financial statements based on an estimate may need revision if changes occur in the circumstances on which the estimate was based or as a result of new information or more experience. The correction of a material prior period error is made to the equity. When preparing the financial statements it is assumed that the errors were corrected in the period when they occurred.

Separate financial statements UNIPETROL, a.s. Annual report 2014 114 (in millions of CZK) 3.4.2 Foreign currency A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of the reporting period: • foreign currency monetary items including units of currency held by the Company as well as receivables and liabilities due in defined or definable units of currency are translated using the closing rate, i.e. spot exchange rate as at the end of the reporting period, • non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and • non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in the previous financial statements are recognized as financial income or expense in the period in which they arise in the net amount, except for monetary items hedging currency risk, that are accounted for in accordance with cash flows hedge accounting. 3.4.3 Revenues Revenues from sales (from operating activity) comprise revenues that relate to core activity, i.e. activity for which the Company was founded, revenues are recurring and are not of incidental character. 3.4.3.1 Revenue from sales of finished goods, merchandise, materials and services Revenues from sale of finished goods, merchandise, materials and services are recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the sale transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenues from sale of finished goods, merchandise, raw materials and services are recognized when the Company has transferred to the buyer the significant risks and rewards of ownership of the goods and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Revenues are measured at fair value of the consideration received or receivable decreased by the amount of any discounts, value added tax (VAT), excise tax and fuel charges. Revenues are measured at fair value of the received or due payments. Revenues realized on settlement of financial instruments hedging cash flows adjust revenues from sale of inventories and services. Revenues and expenses relating to services for which the start and end dates fall within different reporting periods are recognized based on the percentage of completion method, if the outcome of a transaction can be measured reliably, i.e. when total contract revenue can be measured reliably, it is probable that the economic benefits associated with the contract will flow to the Company and the stage of completion can be measured reliably. If those conditions are not met, revenues are recognized up to the cost incurred, but not greater than the cost which are expected to be recovered by the Company. 3.4.3.2 Revenue from licenses, royalties and trade marks Revenues from licences, royalties and trade mark arise from the use of entity’s assets by other business entities. Revenue from licenses, royalties and trade mark are recognized on an accrual basis in accordance with the substance of the relevant agreements. Prepayments, referring to agreements concluded in the current period by the Company are recognized as deferred income and settled in the periods when economic benefits are realized according to the agreements. 3.4.3.3 Franchise revenues Franchise revenues are recognized in accordance with the substance of the relevant agreement, in a way reflecting the reasons for charging with franchise fees. 3.4.3.4 Rental income Rental income from investment property is recognized in the statement of profit or loss and other comprehensive income on a straight-line basis over the term of the lease.

Separate financial statements UNIPETROL, a.s. Annual report 2014 115 (in millions of CZK) 3.4.4 Costs Costs (relating to operating activity) comprise costs that relate to core activity, i.e. activity for which the Company was founded, costs are recurring and are not of incidental character. Particularly costs that are connected to purchase of raw materials, their processing and distribution, that are fully under Company’s control. 3.4.4.1 Cost of sales Cost of sales comprises costs of finished goods, merchandise and raw materials sold, including services of support functions. 3.4.4.2 Distribution expenses Distribution expenses include selling brokerage expenses, trading expenses, advertising and promotion expenses as well as distribution expenses. 3.4.4.3 Administrative expenses Administrative expenses include expenses relating to management and administration of the Company as a whole. 3.4.5 Other operating income and expenses Other operating income in particular includes income from liquidation and sale of non-financial non-current assets, surplus of assets, return of court fees, penalties earned, surplus of grants received to revenues over the value of costs, assets received free of charge, reversal of receivable impairment allowances and some provisions, compensations earned and revaluation gains, gain on sale of investment property. Other operating expenses include in particular loss on liquidation and sale of non-financial non-current assets, shortages of assets, court fees, contractual penalties and fines, penalties for non-compliance with environmental protection regulations, cash and tangible assets transferred free of charge, impairment allowances (except those that are recognized as financial costs and cost of sales), compensations paid, write-off of construction in progress which have not produced the desired economic effect, cost of recovery of receivables and revaluation losses, loss on sale of investment property. 3.4.6 Finance income and finance costs Finance income includes, in particular, income from the sale of shares and other securities, dividends received, interest earned on cash in bank accounts, term deposits and loans granted, increase in the value of financial assets and net foreign exchange gains. Dividend income from investments is recognized when the shareholders’ rights to receive payment have been established. Finance costs include, in particular, loss on sale of shares and securities and costs associated with such sale, impairment losses relating to financial assets such as shares, securities and interest, net foreign exchange losses, interest on own bonds and other securities issued, interest on finance lease, commissions on bank loans, borrowings, guarantees. 3.4.7 Income tax expenses Income tax comprises current tax and deferred tax. Current tax is determined in accordance with the relevant tax law based on the taxable profit for a given period. Tax liabilities for current and prior periods represent the amounts payable at the reporting date. If the amount of the current income tax paid exceeds the amount due the excess is recognized as a receivable. Taxable profit differs from net profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rate valid as at the first date of the reporting period. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences, tax losses and tax relieves carried forward to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Separate financial statements UNIPETROL, a.s. Annual report 2014 116 (in millions of CZK) Taxable temporary differences are temporary differences that will result in increasing taxable amounts of future periods when the carrying amount of the asset or liability is recovered or settled. Taxable temporary differences arise when the carrying amount of an asset at the end of reporting period is higher than its tax base or when the carrying amount of a liability is lower than its tax base. Deductible temporary differences are temporary differences that will result in reducing taxable amounts of future periods when the carrying amount of the asset or liability is recovered or settled. Deductible temporary differences arise when the carrying amount of an asset is lower than its tax base or when the carrying amount of a liability is higher than its tax base. Deductible and taxable temporary differences may also arise in connection with items not recognized in the accounting records as assets or liabilities. Tax base is determined in relation to expected recovery of assets or settlement of liabilities. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are recognized regardless of when the timing difference is likely to be realized. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realized. Deferred tax is charged or credited in the statement of profit or loss and other comprehensive income. The deferred tax assets and liabilities are measured at the end of each reporting period using enacted tax rates binding for the year in which the tax obligation arises, based on tax rates published in tax law. Deferred tax assets and liabilities are not discounted. Deferred tax assets and liabilities relating to transactions settled directly in equity are recognised in equity. Deferred tax assets and liabilities are accounted for as non-current assets or non-current liabilities. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Company intends and is able to settle its current tax assets and liabilities on a net basis. 3.4.8 Earnings per share Basic earnings per share are calculated by dividing the net profit for a given period which is attributable to ordinary shareholders of the parent company by the weighted average number of shares outstanding during the period. Diluted earnings per share for each period are calculated by dividing the net profit for a given period adjusted by changes of the net profit resulting from conversion of the dilutive potential ordinary shares by the weighted average number of shares. Profit or loss attributable to ordinary shareholders of the Parent Company is increased by the after-tax amounts of dividends and interest for the period, attributable to the dilutive potential ordinary shares adjusted by all other changes of income and expense, which would result from the conversion of dilutive potential ordinary shares. The weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares bought back or issued during the period multiplied by a time-weighting factor. The time-weighting factor is the number of days that the shares are outstanding as a proportion of the total number of days in the period; a reasonable approximation of the weighted average is adequate in many circumstances. For the purpose of calculating diluted earnings per share, the number of ordinary shares shall be the weighted average number of ordinary shares, plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations. 3.4.9 Property, plant and equipment Property, plant and equipment are assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and are expected to be used during more than one period (one year or the operating cycle, if longer than one year). Property, plant and equipment include both fixed assets (assets that are in the condition necessary for them to be capable of operating in the manner intended by management) as well as construction in progress (assets that are in the course of construction or development necessary for them to be capable of operating in the manner intended by management). Property, plant and equipment are initially stated at cost, including grants related to assets. The cost of an item of property, plant and equipment comprises its purchase price, including any costs directly attributable to bringing the asset into use.

Separate financial statements UNIPETROL, a.s. Annual report 2014 117 (in millions of CZK) The cost of an item of property, plant and equipment includes also estimated costs of dismantling and removing the item and restoring the site/land on which it is located, the obligation for which is connected with acquisition or construction of an item of property, plant and equipment and capitalized borrowing costs. Property, plant and equipment are stated in the statement of financial position prepared at the end of the reporting period at the carrying amount, including grants related to assets. The carrying amount is the amount at which an asset is initially recognised (cost) after deducting any accumulated depreciation and accumulated impairment losses. Depreciation of an item of property, plant and equipment begins when it is available for use that is from the month when it is in the location and condition necessary for it to be capable of operating in the manner intended by the management, over the period reflecting their estimated useful life, considering the residual value. Components of property, plant and equipment which are material for the whole item are depreciated separately in accordance with their useful life. The following standard useful lives are used for property, plant and equipment: Buildings and constructions 10-40 years Machinery and equipment 4-35 years Dopravní prostředky a ostatní 2-20 years The residual value, estimated useful life and depreciation methods are reassessed annually, the adjustments to depreciation expenses are accounted for in next period (prospectively). The cost of significant repairs and regular maintenance programs is recognized as property, plant and equipment and depreciated in accordance with their useful lives. The costs of current maintenance of property, plant and equipment is recognized as an expense when is incurred. Property, plant and equipment are tested for impairment, when there are indicators or events that may imply that the carrying amount of those assets may not be recoverable. 3.4.10 Investment property Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment property shall be recognized as an asset when, and only when: • it is probable that the future economic benefits that are associated with the investment property will flow to the Company, and • the cost of the investment property can be measured reliably. An investment property shall be measured initially at its cost. Transaction costs shall be included in the initial measurement. The cost of a purchased investment property comprises its purchase price and any directly attributable expenditure. Directly attributable expenditure includes, for example, professional fees for legal services, property transfer taxes and other transaction costs. For internally constructed investment property the cost is set at the date of construction completion when the asset is brought into use, in accordance with rules set for property, plant and equipment. After initial recognition investment property shall be measured at fair value. Gains and losses resulting from changes in fair value of investment property are presented in the statement of profit or loss and other comprehensive income in the period which they arise. The Company determines fair value without any deduction for transaction costs it may incur on sale or other disposal. If the Company determines that the fair value of an investment property is not reliably determinable on a continuing basis, the Company shall measure that investment property at cost in accordance with rules set for property, plant and equipment. An investment property is derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected. 3.4.11 Intangible assets Intangible assets include identifiable non-monetary assets without physical substance. An asset is identifiable if it is either separable, i.e. is capable of being separated or divided from the Company and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the Company intends to do so, or arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the Company or from other rights and obligations.

Separate financial statements UNIPETROL, a.s. Annual report 2014 118 (in millions of CZK) Intangible assets are recognized if it is probable that the expected future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably. An intangible asset arising from development (or from development phase of an internal project) shall be recognised if, and only if, the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete the intangible asset and use or sell it, its ability to use or sell the intangible asset, how the intangible asset will generate probable future economic benefits, among other things, the Company can demonstrate the existence of a market for the output of the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset, the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, its ability to measure reliably the expenditure attributable to the intangible asset during its development. If the definition criteria of an intangible asset are not met, the cost incurred to acquire or self develop an asset are recognised in profit or loss when incurred. If an asset was acquired in a business combination it is part of a goodwill as at acquisition date. An intangible asset shall be measured initially at cost, including grants related to assets. An intangible asset that is acquired in a business combination, is recognised initially at fair value. After initial recognition, an intangible asset shall be presented in the financial statements in its net carrying amount, including grants related to assets. Intangible assets are measured at acquisition or at construction cost less amortization and impairment allowances. Intangible assets with a finite useful life are amortized when it is available for use that is when it is in the location and condition necessary for it to be capable of operating in the manner intended by the management over their estimated useful life. The depreciable amount of an asset with a finite useful life is determined after deducting its residual value. Excluding particular cases, the residual value of an intangible asset with a finite useful life shall be assumed to be zero. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset, e.g. interest, commissions, are part of the initial cost. The following standard useful lives are used for intangible assets: Acquired licenses, patents, and similar intangible assets 2-15 years Acquired computer software 2-10 years Appropriateness of the applied amortization periods and rates is periodically reviewed, at least at the end of the reporting year, and potential adjustments to amortization allowances are made in the subsequent periods. Intangible assets with an indefinite useful life are not amortized. Their value is decreased by the eventual impairment allowances. Additionally, the useful life of an intangible asset that is not being amortized shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. 3.4.11.1 Goodwill Goodwill acquired in a business combination shall, from the acquisition date, be allocated to each of the acquirer‘s cash- generating units, (or groups of cash-generating units), that is expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groups of units. The acquirer shall recognise goodwill as of the acquisition date measured as the excess of a) over b) where: • the value of a) corresponds to the aggregate of: • the consideration transferred, which generally requires acquisition-date fair value, • the amount of any non-controlling interest in the acquire, and • in a business combination achieved in stages, the acquisition-date fair value of the acquirer‘s previously held equity interest in the acquire; • the value of b) corresponds to the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Occasionally, an acquirer will make a bargain purchase, which is a business combination in which the amount in point (b) exceeds the aggregate of the amounts specified in point (a). If that excess remains, after reassessment of correct identification of all acquired assets and liabilities, the acquirer shall recognise the resulting gain in profit or loss on the acquisition date as other operating profit for the period. The acquirer shall measure goodwill in the amount recognised at the acquisition date less any accumulated impairment allowances.

Separate financial statements UNIPETROL, a.s. Annual report 2014 119 (in millions of CZK) A cash-generating unit to which goodwill has been allocated shall be tested for impairment annually, and whenever there is an indication that the unit may be impaired. The annual impairment test may be performed at any time during an annual period, provided the test is performed at the same time every year. A cash-generating unit to which no goodwill has been allocated shall be tested for impairment only when there are indicators that the cash-generating unit might be impaired. An impairment loss recognised for goodwill shall not be reversed in a subsequent period. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognised as of that date. During the measurement period, the acquirer shall also recognise additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as the acquirer receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date. 3.4.11.2 Carbon dioxide emission allowances By the virtue of The Kyoto Protocol, the countries, which decided to ratify the Protocol, obliged themselves to reduce emissions of greenhouse gases, i.e. carbon dioxide (CO2). In the European Union countries, the plants and companies, which reach productivity exceeding 20 MW and some other industrial plants were obliged to participate in emissions trading system. All mentioned entities are allowed to emit CO2 in specified amount and are obliged to amortise those rights in the amount of the emissions of the given year. CO2 emission rights are initially recognised as intangible assets, which are not amortised (assuming the high residual value), but tested for impairment. Granted emission allowances should be presented as separate items as intangible assets in correspondence with deferred income at fair value as at the date of registration (grant in scope of IAS 20). Purchased allowances should be presented as intangible assets at purchase price. If the allowances in a given year were not registered on the account under the date resulting from regulations, they should be presented as receivable at the reporting date in correspondence with deferred income (as separate items) in the fair value of allowances due at the reporting date. The receivable is settled at the moment of allowances registration in the subsequent period by the disclosure of intangible assets at fair value (allowances granted). Deferred income should also be revaluated. For the estimated CO2 emission during the reporting period, a provision should be created in operating activity costs (taxes and charges). Grants should be recognised on a systematic basis to ensure proportionality with the related costs which the grants are intended to compensate. Consequently, the cost of recognition of the provision in the separate statement of profit or loss and other comprehensive income is compensated by a decrease of deferred income (grants) with taking into consideration the proportion of the estimated quantity of emission (accumulated) to the quantity of estimated annual emission. Granted/purchased CO2 emission allowances are amortised against the book value of provision, at its settlement. Outgoing of allowances is recognised using FIFO method (First In, First Out) within the individual types of rights (EUA - European Union Allowances, ERU – Emission Reductions Units, CER – Certified Emission Reduction). 3.4.12 Borrowing costs Borrowing costs consist of interest and other costs that are incurred in connection with the borrowing of funds. The Company capitalizes borrowing costs attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Qualifying assets are the assets that necessarily take a substantial period of time to get ready for their intended use or sale. Borrowing costs which are not connected with qualifying assets are recognized in the statement of profit or loss and other comprehensive income in the period in which they are incurred. Borrowing costs are capitalized based on net investment expenditures which means assets in the process of construction not funded through the use of investment commitments, but using other sources of external financing. Borrowing costs may include:

Separate financial statements UNIPETROL, a.s. Annual report 2014 120 (in millions of CZK) • interest expense calculated using the effective interest method as described in IAS 39 Financial Instruments: Recognition and Measurement, • finance charges in respect of finance leases recognised in accordance with IAS 17 Lease, and • exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Upper limit of the borrowing cost eligible for capitalization is the value of borrowing cost actually born by the entity. The commencement date for capitalization of the borrowing costs is the date when all of the following conditions are met: expenditures for the asset are incurred, borrowing costs are incurred and activities necessary to prepare the asset for its intended use or sale are undertaken. Capitalising of borrowing costs is ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Necessity to perform additional administrative or decoration works or some adaptation requested by the buyer or user are not the basis for the capitalization. After putting an asset into use, the capitalized borrowing costs are depreciated/amortized over the period reflecting useful life of the asset as part of the cost of the asset. 3.4.13 Impairment of assets At the end of each reporting period the Company assess whether there is any indication that an asset or cash generating unit (CGU) may be impaired. If any such indication exists, the entity shall estimate the recoverable amount of the asset (CGU). The recoverable amount of other assets is the higher of the fair value less costs to sell and value in use. Fair value less costs to sell is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, less costs to sell. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Assets that do not generate the independent cash flows are grouped on the lowest level on which cash flows, independent from cash flows from other assets, are generated (cash generating units). To the cash generating unit following assets are allocated: goodwill, if it may be assumed, that the cash generating unit benefited from the synergies associated to a business combination with another entity, corporate assets, if they may be allocated on a reasonable and coherent basis. If there are external or internal indicators that the carrying amount of an asset as at the end of the reporting period may not be recoverable, the impairment tests are carried out. The tests are carried out also annually for intangible assets with the indefinite useful life and for goodwill. When carrying amount of an asset or a cash generating unit exceeds its recoverable amount, the carrying amount is decreased to the recoverable amount by an adequate impairment allowance charged against cost in profit or loss. The recoverable amount is the higher of its fair value less costs to sell and its value in use. The impairment loss shall be allocated to the carrying amount of the assets of the unit in the following order: • first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit; and • then, to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. At the end of each reporting period an assessment shall be made whether an impairment loss recognized in prior periods for an asset shall be partly or completely reversed. Indications of a potential decrease in an impairment loss mainly mirror the indications of a potential impairment loss in prior periods. A reversal of an impairment loss for an asset other than goodwill shall be recognised immediately in profit or loss, unless the asset is carried at revalued amount in accordance with another standard.. 3.4.14 Inventories Inventories are assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services. Inventories comprise products, semi-finished products and work in progress, merchandise and materials.

Separate financial statements UNIPETROL, a.s. Annual report 2014 121 (in millions of CZK) Finished goods, semi-finished products and work in progress are measured initially at production cost. Production costs include costs of materials and costs of conversion for the production period. Costs of production include also a systematic allocation of fixed and variable production overheads estimated for normal production level. The production costs do not include costs incurred as a consequence of low production or production losses, or general and administrative expenses that are not directly attributable to bringing the inventories to the condition and location at the moment of measurement, or storage costs of finished goods, semi-finished products and work in progress, unless these costs are necessary in the production process, or distribution expenses. Finished goods, semi-finished products and work in progress shall be measured at the end of the reporting period at the lower of cost and net realisable value, after deducting any impairment losses. Outgoings of finished goods, semi-finished products and work in progress is determined based on the weighted average cost formula, the cost of each item is determined from the weighted average of the cost of similar items produced during the reporting period. Merchandise and materials are measured initially at acquisition cost. As at the end of the reporting period merchandise and raw materials are measured at the lower of cost and net realizable value, considering any allowances. Outgoings of merchandise and raw materials is determined based on the weighted average acquisition cost or production cost formula. Impairment tests for specific items of inventories are carried out on a current basis during an annual reporting period. Write-down to net realizable value concerns raw materials and merchandise that are damaged or obsolete. Raw materials held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. However, when a decline in the price of materials indicates that the cost of the finished products exceeds net realisable value, the materials are written down to net realisable value. Expenses and revenues connected with inventories write-offs or establishment and release of allowances are included in cost of sales. 3.4.15 Trade and other receivables Trade and other receivables are recognized initially at the fair value increased by transaction costs and subsequently at amortized cost using the effective interest method less impairment allowances. 3.4.16 Cash and cash equivalents Cash and cash equivalents consist of cash on hand and in a bank account, bank deposits and short-term highly liquid investments with original maturities of three months and less and which are subject to an insignificant risk of change in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. 3.4.17 Non-current assets held for sale and discontinued operation Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Non-current assets are classified as held for sale when the following criteria are simultaneously met: • the sales were declared by the appropriate level of management; • the assets are available for an immediate sale in their present condition; • an active program to locate a buyer has been initiated; • the sale transaction is highly probable and can be settled within 12 months following the sale decision; • the selling price is reasonable in relation to its current fair value; • it is unlikely that significant changes to the sales plan of these assets will be introduced. The classification of asset into this category is made in the reporting period when the classification criteria are met. If the criteria for classification of a non-current asset as held for sale are met after the reporting period, an entity shall not classify a non-current asset as held for sale in those financial statements when issued. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with the Company’s accounting policies. Thereafter generally the assets (excluding financial assets) are

Separate financial statements UNIPETROL, a.s. Annual report 2014 122 (in millions of CZK) measured at the lower of their carrying amount and fair value less cost to sell. Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, investment property, which continue to be measured in accordance with the Company’s accounting policies. While a non-current asset is classified as held for sale it shall not be depreciated (or amortised). A gain is recognised for any subsequent increase in fair value less costs to sell of an asset, but not in excess of the cumulative impairment loss that has been previously recognised. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and: • represents a separate major line of business or geographical area of operations, • is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or • is a subsidiary acquired exclusively with a view to resale. The Company shall re-present the disclosures presented with refer to discontinued operation for prior periods presented in the non-consolidated financial statements so that the disclosures relate to all operations that have been discontinued by the end of the reporting period for the latest period presented. If the Company ceases to classify a discontinued operation, the results of operations previously presented in discontinued operations shall be reclassified and included in the results from continuing operations for all periods presented. The amounts for prior periods shall be described as having been re-presented. 3.4.18 Equity Equity is recorded in accounting books by type, in accordance with legal regulations and the Company’s articles of association. Equity comprises: 3.4.18.1 Share capital The share capital is paid by shareholders and is stated at nominal value in accordance with the Company’s articles of association and the entry in the Commercial Register. Declared but not paid share capital is presented as outstanding share capital contributions. The Company’s own shares and outstanding shares capital contributions decrease the equity. 3.4.18.2 Statutory reserves The Company established a reserve to cover possible future losses. Based on the articles of association of the parent company, the right to decide on disposing of the reserve fund in the extent in which it was created is vested within the powers of the Board of Directors; this shall not affect the right of the General Meeting to decide on the distribution of this reserve among the shareholders. 3.4.18.3 Hedging reserve Hedging reserve relates to valuation and settlement of hedging instruments that meet the criteria of cash flow hedge accounting. 3.4.18.4 Revaluation reserve Revaluation reserve comprises revaluation of items, which, according to the Company’s regulations, relates to the revaluation reserve, including particularly: • change of the fair value of the available-for-sale financial assets; • differences between the net book value and the fair value of the investment property at the date of reclassification from the property occupied by the Company to the investment property. 3.4.18.5 Retained earnings Retained earnings include: • the amounts arising from profit distribution/loss cover, • the undistributed result for prior periods, • the current period profit/loss, • the effects (profit/loss) of prior period errors, • changes in accounting principles, • other reserve capital as additional payments to equity, • the actuarial gains and losses from retirement benefits.

Separate financial statements UNIPETROL, a.s. Annual report 2014 123 (in millions of CZK) Non repayable additional payments to equity with non-confirmed repayment date are presented in equity of receiving entity with a corresponding entry as investment in shares of entity making the additional payments. Repayable additional payments to equity are presented in entity receiving payment as current or non-current liabilities based on the repayment date. Repayable additional payments to equity are presented as current or non-current receivables in entity transferring payment based on the repayment date i.e. up to 12 months as current and above 12 months as non-current, initially recognized at fair value. 3.4.19 Liabilities Liabilities, including trade liabilities, are initially stated at fair value increased by transaction cost and subsequently amortized cost using the effective interest method. 3.4.20 Accruals Accruals are liabilities due for goods or services received/provided, but not paid, invoiced or formally agreed with the seller, together with amounts due to employees. Although it is sometimes necessary to estimate the amount or timing of accruals, the uncertainty is generally much lower than it is for provisions. 3.4.21 Provisions A provision is a liability of uncertain timing or amount. Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be measured reliably. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation the provision is reversed. The provision is used only for expenditures for which the provision was originally recognized. When the effect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. If the discounting method is applied, the increase of provisions with time is recognised as financial expenses. The Company establishes provisions for environmental damages, legal disputes, penalties, estimated expenditures related to the fulfilment of obligations as a result of warranty claims, CO 2 emission allowances and jubilee bonuses and retirement benefits. No provisions are established in respect of environmental damages which occurred prior to establishment of the Company as the Czech government contractually committed to reimburse the Company for clean-up costs. Provisions are not recognised for the future operating losses. 3.4.21.1 Shield programs Shield programs provision (restructuring provision) is created when the Company started to implement the restructuring plan or announced the main features of the restructuring plan to those affected by it in a sufficiently specific manner to raise a valid expectation in them that the restructuring will be carried out. A restructuring provision shall include only the direct expenditures arising from the restructuring, i.e. connected with the termination of employment (paid leave payments and compensations), termination of lease contracts, dismantling of assets. 3.4.21.2 Environmental provision In accordance with the Group’s published environmental policy and applicable legal requirements, a provision for site restoration in respect of contaminated land is recognized when the land is contaminated. A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. 3.4.21.3 CO 2 emissions costs The Company creates provision for the estimated CO 2 emission during the reporting period in operating activity costs (taxes and charges).

Separate financial statements UNIPETROL, a.s. Annual report 2014 124 (in millions of CZK) 3.4.21.4 Jubilee bonuses and retirement benefits Retirement benefits and jubilee bonuses Under the Company’s remuneration plans, its employees are entitled to jubilee bonuses and retirement benefits. The jubilee bonuses are paid to employees after elapse of a defined number of years in service. The retirement benefits are paid once at retirement. The amount of retirement benefits and jubilee bonuses depends on the number of years of service and an employee’s average remuneration. The Company creates a provision for future retirement benefits and jubilee bonuses in order to allocate costs to relevant periods. The jubilee bonuses are other long-term employee benefits, whereas retirement and pension benefits are classified as retirement defined benefit plans. The provision for jubilee bonuses, retirement and pension benefits is created in order to allocate costs to relevant periods. The present value of those liabilities is estimated at the end of each reporting period by an independent actuary and adjusted if there are any material indications impacting the value of the liabilities. The accumulated liabilities equal discounted future payments, considering the demographic and financial assumption including employee rotation, planned increase of remuneration and relate to the period ended at the last day of the reporting year. Actuarial gains and losses from: • retirement benefits are recognized in components of other comprehensive income, • other employment benefits, including jubilee bonuses, are recognized in the statement of profit and loss. 3.4.21.5 Business risk Business risk provision is created after consideration of all available information, including opinions of independent experts. If on the basis of such information it is more likely than not that a present obligation exists at the end of the reporting period, the Company recognises a provision (if the recognition criteria are met). If it is more likely that no present obligation exists at the end of the reporting period, the Company discloses a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote. 3.4.22 Government grants Government grants are transfers of resources to the Company by government, government agencies and similar bodies whether local, national or international in return for past or future compliance with certain conditions relating to the activities of the entity. Government grants are recognized in the statement of financial position as deferred income when there is reasonable assurance that it will be received and that the Company will comply with the conditions attached to it. Grants related to costs are presented as compensation to the given cost at the period they are incurred. The surplus of the received grant over the value of the given cost is presented as other operating income. If the government grants relates to assets, it is presented net with the related asset and is recognized in statement of profit or loss on a systematic basis over the useful life of the asset through the decreased depreciation charges, the treatment regarding Carbon dioxide emission allowances granted is described in note 3.4.11.2. 3.4.23 Non-consolidated statement of cash flows The non-consolidated statement of cash flows is prepared using indirect method. Cash and cash equivalents presented in the non-consolidated statement of cash flows include cash and cash equivalents less bank overdrafts, if they form an integral part of the Company’s cash management. Dividends received are presented in cash flows from investing activities. Dividends paid are presented in cash flows from financing activities. Interest received from finance leases, loans granted, short-term securities and cash pool system are presented in cash flows from investing activities. Other interests received are presented in cash flows from operating activities. Interest paid and provisions on bank loans and borrowings received, cash pool facility, debt securities issued and finance leases are presented in cash flows from financing activities. Other interests paid are presented in cash flows from operating activities.

Separate financial statements UNIPETROL, a.s. Annual report 2014 125 (in millions of CZK) 3.4.24 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 3.4.24.1 Recognition and derecognition in the non-consolidated statement of financial position The Company recognises a financial asset or a financial liability in its statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets is recognised by the Company as at trade date. The Company derecognises a financial asset from the statement of financial position when and only when: • the contractual rights to the cash flows from the financial asset expire, or • it transfers the financial asset to another party. The Company derecognises a financial liability (or part of financial liability) from its statement of financial position when, and only when it is extinguished - that is when the obligation specified in the contract: • is discharged, or • is cancelled, or • expired. 3.4.24.2 Measurement of financial assets and liabilities When a financial asset or liability is recognised initially, the Company measures it at its fair value plus, in the case of a financial asset or a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs comprise particularly fees and commissions paid to agents (including employees acting as selling agents), advisers, brokers and dealers, levies by regulatory agencies and security exchanges and transfer of taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative, holding costs or marketing costs. For the purpose of measuring a financial asset at the end of the reporting period or any other date after initial recognition, the Company classifies financial assets into the following four categories: • financial assets at fair value through profit or loss, • held-to-maturity investments, • loans and receivables, • available-for-sale financial assets. Regardless of characteristics and purpose of a purchase transaction, the Company classifies initially selected financial assets as financial assets at fair value through profit or loss, when doing so results in more relevant information. A financial asset at fair value through profit or loss is a financial asset that has been designated by the Company upon initial recognition as at fair value through profit or loss or classified as held for trading if it is: • acquired principally for the purpose of selling or repurchasing in the near term, or • part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit making, or • a derivative (except for a derivative that is an effective hedging instrument). Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Company has the positive intention and ability to hold to maturity. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. Available-for-sale financial assets are those non-derivative financial assets that are designated by the Company as available for sale or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss.

Separate financial statements UNIPETROL, a.s. Annual report 2014 126 (in millions of CZK) 3.4.24.3 Measurement of financial assets at fair value The Company measures financial assets at fair value through profit or loss, including derivative financial assets and available-for-sale financial assets at their fair value, without any deduction for transaction costs that may be incurred on sale or other disposal. Fair value of financial assets is determined in compliance with fair value measurement principle. If the fair value of investments in equity instruments (shares) that do not have a quoted market price on an active market is not reliably measurable, the Company measures them at cost, that is the acquisition price less any accumulated impairment losses. Financial assets designated as hedging items are measured in accordance with the principles of hedge accounting. A gain or loss on a financial asset classified as at fair value through profit or loss are recognised in the statement of profit or loss. A gain or loss on an available-for-sale financial asset are recognised in other comprehensive income, except for impairment losses and foreign exchange gains and losses that are recognised in profit or loss. In case of debt financial instruments interest calculated using the effective interest method is recognised in the statement of profit or loss. 3.4.24.4 Measurement of financial assets at amortized cost The Company measures loans and other receivables, including trade receivables, as well as held-to-maturity investments at amortized cost using the effective interest method. Effective interest is the rate which precisely discounts estimated future cash flows or payments made in expected periods until financial instrument expiration, and in grounded situations in shorter period, up to net book value of asset or financial liability. 3.4.24.5 Measurement of financial liabilities at fair value As at the end of the reporting period or other dates after the initial recognition the Company measures financial liabilities at fair value through profit or loss (including particularly derivatives which are not designated as hedging instruments). Regardless of characteristics and purpose of a purchase transaction, the Company classifies initially selected financial liabilities as financial liabilities at fair value through profit or loss, when doing so results in more relevant information. The fair value of incurred financial liability is measured in accordance with the principles of fair value measurement. 3.4.24.6 Measurement of financial liabilities at amortized cost Financial guarantee contracts, that are contracts that require the Company (issuer) to make specified payments to reimburse the holder for the loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument, not classified as financial liabilities at fair value through profit or loss are measured at the higher of: • the amount determined in accordance with principles relating to valuation of provisions, or • the amount initially recognised less, when appropriate, cumulative amortization. 3.4.24.7 Transfers The Company: • shall not reclassify a financial instrument out of fair value through profit or loss category, if at initial recognition it has been designated by the Company as measured at fair value through profit and loss, and • may, if a financial asset is no longer held for the purpose of selling or repurchasing it in the near term (notwithstanding that the financial asset may have been acquired or incurred principally for the purpose of selling or repurchasing it in the near term), reclassify that financial asset out of the fair value through profit or loss category in limited circumstances. In case of loans and receivables (if at initial recognition financial assets were not classified as held for trading) a financial asset can be reclassified from fair value through profit or loss category, if an entity has intention and possibility to hold a financial asset in a foreseeable future or to maturity. 3.4.24.8 Impairment of financial assets The Company assesses at the end of each reporting period whether there is any objective indicator that a financial asset or group of financial assets is impaired.

Separate financial statements UNIPETROL, a.s. Annual report 2014 127 (in millions of CZK) If there is an objective indicator that an impairment loss on loans and receivables or held-to-maturity investments carried at amortized cost has been incurred, the amount of the loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. effective interest rate determined at initial recognition). If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and recognised in profit or loss as income. If there is an objective indicator that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, the amount of the impairment loss is measured as the difference between the carrying amount of the financial assets and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed. If there is an objective indicator that an impairment loss has been incurred on an available-for-sale financial asset, the cumulative loss that had been recognised in statement of comprehensive income is removed from equity and recognised in profit or loss. Impairment losses for an investment in an equity instrument classified as available for sale are not reversed through profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, with the amount of the reversal recognised in the statement of profit or loss. 3.4.24.9 Embedded derivatives A derivative is a financial instrument or with all three of the following characteristics: • its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract, • it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors, and • it is settled at a future date. If the Company is a party of a hybrid (combined) instrument that includes embedded derivative, an embedded derivative shall be separated from the host contract and accounted for as a separate derivative in line with requirements for investments measured at fair values through profit or loss if, and only if the instrument meets all following requirements: • the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; • a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and • the combined (hybrid) instrument is not measured at fair value with changes in fair value recognised in the statement of profit or loss (i.e. a derivative that is embedded in a financial asset or financial liability at fair value through profit or loss is not separated). The Company assesses the need to separate an embedded derivative from the host contract and to present it as a derivative, when it becomes a party of a hybrid instrument for the first time. Reassessment is made only in case, when subsequent changes are introduced to the hybrid contract that substantially modify cash flows required by the contract. 3.4.24.10 Hedge accounting Derivatives designated as hedging instruments whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a hedged item are accounted for in accordance with fair value or cash flow hedge accounting, if all of the following conditions are met: • at the inception of the hedge there is formal designation and documentation of the hedging relationship and the Company‘s risk management objective and strategy for undertaking the hedge, • the hedge is expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk, consistently with the originally documented risk management strategy for that particular hedging relationship,

Separate financial statements UNIPETROL, a.s. Annual report 2014 128 (in millions of CZK) • for cash flow hedges, a forecast transaction that is the subject of the hedge must be highly probable and must present an exposure to variations in cash flows that could ultimately impact profit or loss, • the effectiveness of the hedge can be reliably measured, • the hedge is assessed on an ongoing basis and determined actually to have been highly effective throughout the financial reporting periods for which the hedge was designated. The Company does not apply hedge accounting in case when embedded derivative instrument is separated from the host contract. The Company assesses effectiveness at the inception of the hedge and later, at minimum, at each reporting date. The Company assesses hedge as effective, for external reporting purposes only if the actual results of the hedge are within a range of 80% - 125%. The Company uses statistical methods, in particular regression analysis, to assess effectiveness of the hedge. The Company uses simplified analytical methods, when a hedged item and a hedging instrument are of the same nature i.e. maturity dates, amounts, changes affecting fair value risk or cash flow changes. Fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment, or an identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could impact profit or loss. A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates. If a fair value hedge is used, it is accounted for as follows: • the gain or loss from remeasuring the hedging instrument at fair value is recognised in profit or loss, and • the gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognised in profit or loss (this applies also if the hedged item is an available-for-sale financial asset, whose changes in value are recognised in other comprehensive income). The Company discontinues fair value hedge accounting if: • the hedging instrument expires, is sold, terminated or exercised (for this purpose, the replacement or rollover of a hedging instrument into another hedging instrument is not an expiration or termination if such replacement or rollover is part of the Company‘s documented hedging strategy), • the hedge no longer meets the criteria for hedge accounting, or • the Company revokes the designation. Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and could impact profit or loss. A forecast transaction is an uncommitted but anticipated future transaction. If a cash flow hedge is used, it is accounted for as follows: • the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income, and • the ineffective portion of the gain or loss on the hedging instrument is recognised in profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gains or losses that were recognised in other comprehensive income are reclassified to profit or loss in the same period or periods during which the asset acquired or liability assumed affect profit or loss. However, if the Company expects that all or a portion of a loss recognised in other comprehensive income will not be recovered in one or more future periods, it reclassifies to profit or loss the amount that is not expected to be recovered. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, or a forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the Company removes the associated gains and losses that were recognised in the other comprehensive income and includes them in the initial cost or other carrying amount of the asset or liability. If a hedge of a forecast transaction results in recognition of revenues from sales of finished goods, merchandise, materials and services the Company removes the associated gains and losses that were recognised in the other comprehensive income and adjusts these revenues. The Company discontinues cash flow hedge accounting if: • the hedging instrument expires, is sold, terminated or exercised - in this case, the cumulative gain or loss on the hedging instrument recognised in other comprehensive income remain separately recognised in equity until the forecast transaction occurs,

Separate financial statements UNIPETROL, a.s. Annual report 2014 129 (in millions of CZK) • the hedge no longer meets the criteria for hedge accounting - in this case, the cumulative gain or loss on the hedging instrument recognised in other comprehensive income remain separately recognised in equity until the forecast transaction occurs, • the forecast transaction is no longer expected to occur, in which case any related cumulative gain or loss on the hedging instrument recognised in other comprehensive income are recognised in profit or loss, • the designation is revoked – in this case the cumulative gain or loss on the hedging instrument recognised in other comprehensive income remain separately recognised in equity until the forecast transaction occurs or is no longer expected to occur. Net investment in a foreign operation is the amount of the reporting entity’s interest in the net assets of that operation. Hedges of a net investment in a foreign operation, including hedge of monetary item that is accounted for as a part of the net investment, shall be accounted for similarly to cash flow hedges: • the portion of the gain or loss on the hedging instrument that is determined to be effective hedge shall be recognised in other comprehensive income, and • the ineffective portion shall be recognised in profit or loss. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognised in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment on a disposal of the foreign operations. A hedge of a foreign currency risk of a firm commitment may be accounted for as a fair value hedge or cash flow hedge. 3.4.25 Fair value measurement At initial recognition, the transaction price of the acquired asset or liability incurred in exchange transaction for that asset or liability is the price paid to acquire the asset or received for the liability (an entry price). The fair value of asset or liability is the price that would be received to sell an asset or paid to transfer the liability (exit price). If the Company measures an asset or liability initially received to sell on at fair value and transaction price differs from fair value, the difference is recognized in profit or loss, unless the IFRS specifies otherwise. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs either: • on the principal market for the asset or liability or • in the absence of the principal market, in the most advantageous market for the asset or liability. In the absence of any directly observable input, i.e. the quoted prices (unadjusted) in active markets for identical assets or liabilities to which the Company can access at the measurement date, the fair value is determined on the basis of the adjusted directly observable inputs. The adjusted input include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in market that are not active; • input data other than quoted prices that are observable for the given asset or liability; • market-corroborated inputs. In the case, when the observable (directly or indirectly) inputs are not available, fair value is measured on the basis unobservable inputs of the developed by the Company using appropriate valuation techniques. A fair value measurement of non-financial asset takes into account market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The fair value of liability reflects the effect of non-performance risk. Non-performance risk includes, but may not be limited to, the entity’s own credit risk. When measuring fair value of the liability, the entity should take into account effect of its own credit risk (credit standing) and any other factors that might influence the likelihood that the obligation will not be fulfilled. The Company maximises the use of relevant observable inputs and minimize the use of unobservable inputs to meet the objective of fair value measurement into account, which is to estimate the price at which an orderly transaction to transfer the liability or equity instrument would take place between market participants as at the measurement date under current market conditions.

Separate financial statements UNIPETROL, a.s. Annual report 2014 130 (in millions of CZK) Assets and liabilities that are measured at fair value in the statement of financial position or are not measured at fair value, but information about them is disclosed, the Company classifies according to a hierarchy of fair value at the three levels of inputs, depending on the assessment of their availability: • level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities, that the entity can access as at the measurement date; • level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either indirectly or directly; • level 3 inputs are unobservable inputs for the asset or liability. In the cases, when inputs used to measure the fair value of the asset or liability might be categorized within different levels of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of fair value hierarchy as its data input from the lowest level inputs that is significant to the entire measurement. 3.4.26 Lease A lease is an agreement whereby a lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Leases of property, plant and equipment where the Company has substantially transferred all the risks and rewards of ownership are classified as finance leases. Transfer of risks and rewards within the finance lease agreements includes i.e. the following situations: • the lease transfers ownership of the asset at or by the end of the lease term, • the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised, • the lease term is for the major part of the useful life of the asset even if title is not transferred, • at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset, • the leased assets are of such a specialised nature that only the lessee can use them without major modifications. If the Company uses an asset based on the finance lease, the asset is recognised as an item of property, plant and equipment or an intangible asset. The leased asset is measured at the lower of its fair value or the present value of the minimum lease payments that is the present (discounted) value of payments over the lease term that the lessee is or can be required to make. The present value of the minimum lease payments is recognised in the statement of financial position as financial liability with the division into short and long-term part. The minimum lease payments are discounted and apportioned between finance charge and the reduction of the outstanding liability using interest rate implicit in the lease, that is the discount rate that, at the inception of the lease, causes the aggregate present value of the minimum lease payments, the unguaranteed residual value to be equal to the sum of the fair value of the leased asset and the initial direct costs if this is impossible to determine, the lessee’s incremental borrowing rate, that is the rate, the lessee would have to pay on the similar lease agreement or – if that is not determinable, the rate that, at the inception of the lease, the lessee would incur to borrow over a similar term, with a similar security, the funds necessary to purchase the leased asset for the similar period of time and with similar guarantees. Depreciation methods for assets leased under the finance lease as well as methods of determining impairment losses in respect of assets leased under the finance lease are consistent with policies applied for the Company’s owned assets. If there is a reasonable uncertainty that the lessee will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of: the lease term or useful life. If the Company conveyed to another entity the right to use an asset under the finance lease, the present value of the minimum lease payments and unguaranteed residual value is recognised in the statement of financial position as receivables with the division into short and long-term part. The minimum lease payments and unguaranteed residual value are discounted using interest rate implicit in the lease. Assets used under the operating lease, that is under the agreement that does not transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee, are recognised as assets of the lessor. Lease payments from the operating lease are recognised by lessor as revenues from sales of products, while by lessee as costs in profit or loss.

Separate financial statements UNIPETROL, a.s. Annual report 2014 131 (in millions of CZK) 3.4.27 Contingent assets and liabilities Contingent liabilities are defined as possible obligations that arise from past events and which are dependent on occurrence or non-occurrence of some uncertain future events not wholly within the control of the Company or present obligations that arise from past events but is not recognised because it is not probable that an outflow of resource embodying economic benefits will be required to settle the obligations or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized in the statement of financial position however the information on contingent liabilities is disclosed unless the probability of outflow of resources relating to economic benefits is remote. Contingent liabilities acquired as the result of a business combination are recognized as provisions in the statement of financial position. Contingent assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognized in the statement of financial position as it may lead to recognition of the income, which will never be gained; however the respective information on the contingent receivable is disclosed if the inflow of assets relating to economic benefits is probable the Company discloses respective information on the contingent asset in the additional information to financial statements and if practicable, estimates the influence on financial results, as according to accounting principles for valuation of provisions. Contingent assets are assessed continually to ensure that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits will arise, the asset and the related income are recognised in the financial statements of the period in which the change occurs. If an inflow of economic benefits has become probable, an entity discloses the contingent asset. 3.4.28 Subsequent events after the reporting date Subsequent events after the reporting date are those events, favourable and unfavourable that occur between end of the reporting period and date of when the financial statements are authorized for issue. Two types of subsequent events can be identified: those, that provide evidence of conditions that existed as the end of the reporting period (events after the reporting period requiring adjustments) and those that are indicative of conditions that arose after the reporting period (events after the reporting period not requiring adjustments). 4. Application of professional judgements and Assumptions The preparation of the financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, equity, revenues and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In the matters of considerable weight, the Company’s management bases its estimates on opinions of independent experts. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Judgments made by management in the application of IFRSs that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in notes: 10 Tax expense,11 Property, plant and equipment in relation to impairment, 12 Investment property. The accounting policies descibed above have been applied consistently to all periods presented in these financial statements .

Separate financial statements UNIPETROL, a.s. Annual report 2014 132 (in millions of CZK) 5. The parent company and structure of the consolidated group The following table shows subsidiaries and joint operations forming the consolidated Group of UNIPETROL, a.s., and the parent company’s interest in the capital of subsidiaries and joint operations held either directly by the parent company or indirectly by the consolidated subsidiaries and allocation of subsidiaries into the Operating segments (information as of 31 December 2014). Name and place of business Ownership interest of the parent company in share capital Ownership interest in share capital through subsidiaries Operating segment Website Parent company     UNIPETROL, a.s. Na Pankráci 127, 140 00 Praha 4, Czech Republic Corporate functions www.unipetrol.cz Subsidiaries consolidated in full method BENZINA, s.r.o. Na Pankráci 127, 140 00 Praha 4, Czech Republic 100.00% -- Retail www.benzinaplus.cz PARAMO, a.s. Přerovská 560, 530 06 Pardubice, Czech Republic 100.00% -- Downstream www.paramo.cz UNIPETROL RPA, s.r.o. Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic 100.00% -- Downstream Corporate functions www.unipetrolrpa.cz Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic 100.00% -- Corporate functions www.unipetrolservices.cz UNIPETROL DOPRAVA, s.r.o. Litvínov - Růžodol č.p. 4, 436 70 Litvínov, Czech Republic 0.12% 99.88% Downstream www.unipetroldoprava.cz UNIPETROL Deutschland GmbH Paul Ehrlich Str. 1/B , 63225 Langen/Hessen, Germany 0.10% 99.90% Downstream www.unipetrol.de PETROTRANS, s.r.o. Střelničná 2221, 182 00 Praha 8, Czech Republic 0.63% 99.37% Retail www.petrotrans.cz UNIPETROL SLOVENSKO s.r.o. Panónská cesta 7, 850 00 Bratislava, Slovak Republic 13.04% 86.96% Downstream www.unipetrol.sk

Separate financial statements UNIPETROL, a.s. Annual report 2014 133 (in millions of CZK) POLYMER INSTITUTE BRNO, spol. s r.o. Tkalcovská 36/2, 656 49 Brno, Czech Republic 1.00% 99.00% Downstream www.polymer.cz Paramo Oil s.r.o. (dormant entity) Přerovská 560, 530 06 Pardubice, Czech Republic -- 100.00% Downstream   Výzkumný ústav anorganické chemie, a.s. Revoluční 84/č.p. 1521, Ústí nad Labem, Czech Republic 100.00% -- Downstream www.vuanch.cz UNIPETROL RAFINÉRIE, s.r.o. (dormant entity) Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic 100.00% -- Downstream   HC VERVA Litvínov, a.s. Litvínov, S.K. Neumanna 1598, Czech Republic -- 70.95% Korporátní funkce www.hokej-litvinov.cz CHEMOPETROL, a.s. (dormant entity) Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic -- 100.00% Downstream   MOGUL SLOVAKIA s.r.o. Hradiště pod Vrátnom, U ihriska 300, Slovak Republic -- 100.00% Downstream www.mogul.sk UNIPETROL AUSTRIA HmbH in Liquidation Viena, Apfelgasse 2, Austria 100.00% -- Downstream   Joint operations consolidated based on shares in assets and liabilities ČESKÁ RAFINÉRSKÁ, a.s. Záluží 2, 436 01 Litvínov, Czech Republic 67.56% -- Downstream www.ceskarafinerska.cz Butadien Kralupy a.s. O. Wichterleho 810, 278 01 Kralupy nad Vltavou, Czech Republic 51.00% -- Downstream  

Individuální účetní uzávěrka UNIPETROL, a .s . PB Separate financial statements UNIPETROL, a .s . Annual report 2014 134 (in millions of CZK) Changes in structure of the Group Liquidation of UNIPETROL TRADE Group CHEMAPOL (SCHWEIZ) AG was put under liquidation on 1 June 2010 due to the restructuring process of UNIPETROL TRADE Group. The liquidation of CHEMAPOL (SCHWEIZ) AG was completed on 12 June 2013. The liquidation process of UNIPETROL AUSTRIA HmbH is ongoing. Acquisition of 16,335% stake in Česká rafinérská from Shell Overseas Investments B.V. On 31 January 2014 UNIPETROL, a.s. (“Unipetrol”) completed the transaction of the acquisition of 152 701 shares of ČESKÁ RAFINÉRSKÁ, a.s. (“Česká rafinérská”) amounting to 16,335% of the Česká rafinérská’s share capital from Shell Overseas Investments B .V . (“Shell”) following the conclusion of a share purchase agreement on 7 November 2013 . The acquisition price for the shares in amount of USD 27,2 million was settled in cash . The transaction was an opportunistic acquisition fully in line with Unipetrol Group Strategy 2013-2017 announced in June 2013 and supporting its execution thanks to: increasing the security of petrochemical feedstock supplies, faster implementation of Operational Excellence initiatives and strengthening long-term presence on the Czech market. Based on the completion of the transaction Unipetrol’s stake on the Česká rafinérská’s share capital has increased from 51,22% to 67,555%. In line with Articles of Association of Česká rafinérská, adoption of decision on all important matters requires consent of all shareholders . Acquisition of 32,445% stake in Česká rafinérská from Eni International B.V. On 3 July 2014 UNIPETROL, a.s. (“Unipetrol”) exercised its pre-emptive right and accepted the offer from Eni International B.V. (“Eni”), based on which Unipetrol will acquire from Eni 303 301 shares of ČESKÁ RAFINÉRSKÁ, a.s. (“Česká rafinérská”) amounting to 32.445% of the Česká rafinérská’s share capital (“Transaction”). The acquisition price for the shares in the amount of EUR 30 million, subject to additional adjustments before Transaction completion, will be financed from own financial sources of Unipetrol. Transaction is an opportunistic acquisition with the aim to gain full control over Česká rafinérská, be a sole decision-maker regarding capital investments, perform deeper restructuring of the company, further increase security of petrochemical feedstock supplies for continuation of Unipetrol’s petrochemical business development, as well as strengthen long-term presence of Unipetrol Group on the Czech market. On 19 December 2014, the Czech Competition Office (CCO) issued a merger clearance for Unipetrol to take over the 32.445% in Česká rafinérská from Eni International B.V.  Unipetrol, since the merger clearance was granted without any commitments or objections, Unipetrol did not appeal the CCO decision.  SČS - Unie nezávislých  petrolejářů, z.s. (UNIE) appealed the CCO merger clearance decision on 5 January 2015; UNIE claims that its right to appeal is stemming from a judgment of Regional Court in Prague in Litvínovská uhelná, a.s. case.  Unipetrol claims that UNIE had no right to appeal the merger clearance decision and therefore, their filing of 5 January 2015 does not form an appeal capable of delaying the merger clearance decision coming into force . The matter is now pending with the Chairman of CCO for review and decision.  Unipetrol is requesting the Chairman to reject the UNIE filing of 5 January 2015.

Separate financial statements UNIPETROL, a.s. Annual report 2014 135 (in millions of CZK) 6. Revenues   2014 2013 Fees for use of lands 114 113 Other services 41 28   155 141 6.1 Geographical information All revenues were realized in the Czech Republic. 6.2 Major customers The Company has individual customers who accounted for 10% or more of the Company’s total revenues. These customers are entities related to UNIPETROL, a.s. 7. Operating expenses 7.1 Cost of sales   2014 2013 Cost of services sold (86) (85)   (86) (85) 7.2 Cost by nature   2014 2013 Materials and energy (2) (2) External services (97) (110) Employee benefits (146) (163) Depreciation and amortisation (1) (2) Taxes and charges (19) (10) Repairs and maintenance (1) (1) Insurance (2) (1) Other (21) (1) Operating expenses (289) (290) Administrative expenses 202 204 Other operating expenses 1 1 Cost of sales (86) (85) Explanatory notes to the separate financial statements

Separate financial statements UNIPETROL, a.s. Annual report 2014 136 (in millions of CZK) 7.3 Employee benefits     2014   2013 Payroll expenses   (104)   (115) Social security expenses   (25)   (26) Other employee benefits expenses   (17)   (22)     (146)   (163) 7.3.1 Employee benefits – additional informatione 2014   Employees Key Management Audit Committee Board of Directors Supervisory Board Total Wages and salaries   (52) (41) (1) (3) (7) (104) Social and health insurance (15) (7) - (1) (2) (25) Social expense   (10) (7) - - - (17)     (77) (55) (1) (4) (9) (146) Numberofemployeesaverageperyear             46.67 Numberofemployeesasatbalancesheetday               52 2013   Employees Key Management Audit Committee Board of Directors Supervisory Board Total Wages and salaries   (63) (41) (1) (3) (7) (115) Social and health insurance (17) (7) - -   (2) (26) Social expense   (12) (10) - - - (22)     (92) (58) (1) (3) (9) (163) Number of employees average per year             41.42 Numberofemployeesasatbalancesheetday               47 8. Other operating income and expenses 8.1 Other operating income   2014 2013 Profit on sale of non-current non-financial asets - 1 Reversal of receivables impairment allowances 21 - Other 1 2   22 3

Separate financial statements UNIPETROL, a.s. Annual report 2014 137 (in millions of CZK) 8.2 Other operating expenses     2014   2013 Donations   (1)   (1)     (1)   (1) 9. Finance income and finance costs 9.1 Finance income     2014   2013 Interest   184   331 Dividends received   359   968 Reversal of impairment to financial assets   -   16 Other   6   4     549   1 319 9.2 Finance costs     2014   2013 Interest   (95)   (227) Net foreign exchange loss   -   (2) Other   (9)   (4)     (104)   (233) 10. Tax expense     2014   2013 Income tax expense in the statement of profit or loss         Current income tax   (4)   (3) Deferred income tax   (1)   1     (5)   (2) Domestic income tax is calculated in accordance with Czech tax regulations at the rate of 19% in 2014 (2013: 19%) of the estimated taxable income for the year. The deferred tax has been calculated using tax rate approved for years 2015 and forward i.e. 19%.

Separate financial statements UNIPETROL, a.s. Annual report 2014 138 (in millions of CZK) 10.1 The differences between income tax expense recognized in profit or loss and the amount calculated based on profit before tax Reconciliation of tax effective   2014   2013 Profit for the year   328   938 Total income tax expense   (5)   (2) Profit before tax   333   940             Income tax using domestic income tax rate   (63)     (179) Non-deductible expenses   (9)     (9) Tax exempt income   69     184 Under (over) provided in prior periods   (2)     - Other differences   -      2 Total income tax expense   (5)     (2) Effective tax rate   (1.46%)     (0.24%) 10.2 Deferred tax assets and liabilities Deferred income taxes result from future tax benefits and costs related to the differences between the tax basis of assets and liabilities and the amounts reported in the financial statements. The deferred income taxes have been calculated using the tax rate expected to apply to periods when the respective asset is realized or liability is settled (i.e. 19% in 2015 and onward).     31/12/2013 Deferred tax recognized in statement of profit or loss 31/12/2014 Deferred tax assets       Employee benefit costs 7 (1) 6     7 (1) 6 Deferred tax liabilities       Investment property (119) - (119)   (119) - (119)     (112) (1) (113)

Separate financial statements UNIPETROL, a.s. Annual report 2014 139 (in millions of CZK) 11. Property, plant and equipment     31/12/2014   31/12/2013 Land   9   9 Vehicles and other   -   1     9   10 Changes in property, plant and equipment:     Land Machinery and equipment Vehicles and other Construction in progress Total Gross book value           1 January 2014 9 3 9 - 21 31 December 2014   9 3 9 - 21 Accumulated depreciation, impairment allowances 1 January 2014 - 3 8 - 11 Depreciation - - 1 - 1 31 December 2014   - 3 9 - 12 Gross book value 1 January 2013 9 3 15 - 27 Investment expenditures - - - 7 7 Reclassifications - - - (7) (7) Sale - - (6) - (6) 31 December 2013   9 3 9 - 21 Accumulated depreciation, impairment allowances 1 January 2013 - 3 12 - 15 Depreciation - - 2 - 2 Sale - - (6) - (6) 31 December 2013   - 3 8 - 11 Net book value 1 January 2014   9 - 1 - 10 31 December 2014   9 - - - 9 1 January 2013   9 - 4 - 13 31 December 2013   9 - 1 - 10

Individuální účetní uzávěrka UNIPETROL, a .s . PB Separate financial statements UNIPETROL, a .s . Annual report 2014 140 (in millions of CZK) Other information regarding property, plant and equipment 2014  2013 The gross book value of all fully depreciated property, plant and equipment still in use 6 5  12. Investment property Investment property at 31 December 2014 comprised the lands owned by the Company and leased to subsidiaries of the Company and third parties . The changes recorded during the year 2014 are presented in the following table:     2014   2013 At the beginning of year   1,156   1,149 Reclassification from property, plant, equipment   -   7     1,156   1,156 Rental income amounted to CZK 114 million in 2014 (2013: CZK 113 million) . Operating costs related to the investment property in reporting period amounted to CZK 22 million in 2014 (2013: CZK 14 million) . Information concerning valuation of investment property is included in note 3 .4 .10 and 23 .

Separate financial statements UNIPETROL, a.s. Annual report 2014 141 (in millions of CZK) 13. Shares in related parties Shares in related parties as at 31 December 2014 were as follows: Name of the entity Registered office Cost of investment Ownership percentage Impairment Carrying amount Dividend income for the year Subsidiaries consolidated in full method UNIPETROL RPA, s.r.o. Litvínov 7,360 100.00 - 7,360 - Výzkumný ústav anorganické chemie, a.s. Ústí nad Labem 59 100.00 8 51 - BENZINA, s.r.o. Praha 4 4,181 100.00 1,922 2,259 - PARAMO, a.s. Pardubice 1,251 100.00 1,073 178 - UNIPETROL SERVICES, s.r.o. Litvínov 100 100.00 - 100 11 UNIPETROL RAFINÉRIE, s.r.o. Praha 4 0.4 100.00 - 0.4 - UNIPETROL AUSTRIA HmbH Vídeň 3 100.00 - 3 - Joint operations consolidated based on shares in assets and liabilities ČESKÁ RAFINÉRSKÁ, a.s. Litvínov 4,423 67.56 - 4,423 338 Butadien Kralupy a.s. Kralupy 162 51.00 - 162 - Other investments ORLEN MALTA HOLDING La Valeta 1 - - 1 - Spolek pro chemickou a hutní výrobu, akciová společnost Ústí nad Labem 0.0002 - - 0.0002 - UNIPETROL DOPRAVA, s.r.o. Litvínov 2 0.12 - 2 0.2 UNIPETROL SLOVENSKO s.r.o. Bratislava 0.1 13.04 - 0.1 10 PETROTRANS, s.r.o. Praha 4 1 0.63 - 1 0.2 POLYMER INSTITUTE BRNO, spol. s r.o. Brno 1 1.00 - 1 0.2 UNIPETROL DEUTSCHLAND GmbH Langen/Hessen 0.1 0.10 - 0.1 - Total 17,545 - 3,003 14,542 359

Separate financial statements UNIPETROL, a.s. Annual report 2014 142 (in millions of CZK) Shares in related parties as at 31 December 2013 were as follows: Name of the entity Registered office Cost of investment Ownership percentage Impairment Carrying amount Dividend income for the year Subsidiaries consolidated in full method UNIPETROL RPA, s.r.o. Litvínov 7,360 100.00 - 7,360 - Výzkumný ústav anorganické chemie, a.s. Ústí nad Labem 59 100.00 8 51 - BENZINA, s.r.o. Praha 4 4,181 100.00 1,922 2,259 - PARAMO, a.s. Pardubice 1,251 100.00 1,073 178 - UNIPETROL SERVICES, s.r.o. Litvínov 100 100.00 - 100 45 UNIPETROL RAFINÉRIE, s.r.o. Praha 4 0.4 100.00 - 0.4 - UNIPETROL AUSTRIA HmbH Vídeň 3 100.00 - 3 - Joint operations consolidated based on shares in assets and liabilities ČESKÁ RAFINÉRSKÁ, a.s. Litvínov 3,872 51.22 - 3,872 922 Butadien Kralupy a.s. Kralupy 162 51.00 - 162 - Other investments ORLEN MALTA HOLDING La Valeta 1 - - 1 - Spolek pro chemickou a hutní výrobu, akciová společnost Ústí nad Labem 0.0002 - - 0.0002 - UNIPETROL DOPRAVA, s.r.o. Litvínov 2 0.12 - 2 0.3 UNIPETROL SLOVENSKO s.r.o. Bratislava 0,1 13.04 - 0,1 - PETROTRANS, s.r.o. Praha 4 1 0.63 - 1 0.3 POLYMER INSTITUTE BRNO, spol. s r.o. Brno 1 1.00 - 1 0.1 UNIPETROL DEUTSCHLAND GmbH Langen/Hessen 0.1 0.10 - 0.1 0.1 Total 16,993 - 3,003 13,991 968 The Company had equity investments of CZK 14 542 million as at 31 December 2014 and CZK 13 991 million as at 31 December 2013 which represent ownership interests in companies that do not have a quoted market price and whose fair value cannot be reliably measured and therefore are carried at acquisition cost less any impairment losses.

Separate financial statements UNIPETROL, a.s. Annual report 2014 143 (in millions of CZK) 14. Other non-current assets     31/12/2014   31/12/2013 Loans granted   1,472   1,520 Financial assets   1,472   1,520 Loans granted to subsidiaries During year 2013 the Company provided a non-current loan to BENZINA s.r.o. in amount of CZK 1 400  million. The loan will be repaid within 3 years and interest rate is based on 6M PRIBOR. The fair value of loan approximates its carrying amount. As at 31 December 2014 the Company had non-current loan in amount of CZK 72 million (31 December 2013: CZK 120 million) granted to its jointly controlled entity Butadien Kralupy a.s. The loan is repayable by regular fixed instalments over next 3 years and interest rates are based on 6M PRIBOR. The fair value of loan approximates its carrying amount. 15. Trade and other receivables     31/12/2014   31/12/2013 Trade receivables   160   145 Other   3   3 Financial assets   163   148 Prepayments and deffered costs   2   3 Non-financial assets   2   3 Receivables, net   165   151 Receivables impairment allowance   100   121 Receivables, gross   265   272 Trade receivables result primarily from sales of services. The management considers that the carrying amount of trade receivables approximates their fair value. The Company exposure to credit and currency risk related to trade and other receivables is disclosed in note 22 and detailed information about receivables from related parties is presented in note 27. Movement in the impairment loss allowance     2014   2013 At the beginning of the year   121   121 Reversal   (21)   -     100     121 The Company sets impairment charges based on analysis of customers’ creditworthiness and ageing of receivables. In determining the recoverability of a trade receivable, the Company considers any change in the credit quality of the debtor from the date credit was initially granted up to the reporting date. Accordingly, the management considers that there is no further credit risk allowance required in excess of the allowance for impairment charges. Increases and reversals of impairment allowances in respect of principal amount of trade and other receivables are included in other operating expense or income and in respect of interest for delayed payments in financial expense or income.

Separate financial statements UNIPETROL, a.s. Annual report 2014 144 (in millions of CZK) 16. Other financial assets     31/12/2014   31/12/2013 Poskytnuté úvěry   12,172   10,052 Cash pool   2,886   2,637     15,058   12,689 Loans and cash pool granted The Company provided financing to its subsidiaries: UNIPETROL RPA, s.r.o., BENZINA, s.r.o., Butadien Kralupy a.s., PARAMO, a.s. and MOGUL SLOVAKIA, s.r.o. The interest rates were based on appropriate inter-bank rates and fair value of loans approximates their carrying amount. The current loans provided to subsidiaries are not collateralised. The current loans to subsidiaries as at 31 December 2014 included the portion of non-current loans due within one year in amount of CZK 49 million. The analysis of current loans by currency of denomination is presented in the note 22. 17. Cash and cash equivalents     31/12/2014   31/12/2013 Cash on hand and in bank   516   158     516   158 The carrying amount of these assets approximates their fair value. 18. Shareholders’ equity 18.1 Share capital The issued capital of the Company as at 31 December 2014 amounted to CZK 18 133 million (2013: CZK 18 133 million). This represents 181 334 764 (2013: 181 334 764) bearer ordinary shares, each with a nominal value of CZK 100. All issued shares have been fully paid and bear equal voting rights. The Company’s shares are listed on the Prague stock exchange. 18.2 Statutory reserves The Company’s duty to create and supplement the reserve fund as such duty was regulated in Section 217 of the Act No. 513/1991 Coll., the Commercial Code, valid as of 31 December 2013, was cancelled. The right to decide on disposing of the reserve fund in the extent in which it was created as of 26 May 2014 is vested within the powers of the Board of Directors; this shall not affect the right of the General Meeting to decide on the distribution of this reserve fund among the shareholders. The balance of the Statutory reserve fund as at 31 December 2014 amounted to CZK 1 719 million (31 December 2013: CZK 1 672 million). 18.3 Revaluation reserve Revaluation reserve comprises the difference between the net book value and fair value of the property as at the date of reclassification of the property occupied by the Company and recognised as an investment property. 18.4 Retained earnings In accordance with appropriate Czech law, dividends can be paid from unconsolidated profit of the parent company. The Annual General Meeting of UNIPETROL, a.s. held on 26 May 2014 decided, pursuant to Article 12 (2) (v) of the Articles of Association of UNIPETROL, a.s., on transfer of the Company’s profit generated on non-consolidated basis in 2013 in amount of CZK 938 million. Based on the decision the amount of CZK 47 million was allocated to the Company‘s Reserve Fund and CZK 891 million was transferred to retained earnings. The decision regarding appropriation of 2014 profit will be made on the annual meeting of shareholders, which will be held in May / June 2015.

Separate financial statements UNIPETROL, a.s. Annual report 2014 145 (in millions of CZK) 18.5 Capital management policy Capital management is performed on the Group level in order to protect the Group’s ability to continue its operations as a going concern while maximizing returns for shareholders. The Company monitors equity debt ratio (net financial leverage). As at 31 December 2014 and 31 December 2013 Company´s financial leverage amounted to 20,54% and 11,14%, respectively. Net financial leverage = net debt / equity x 100 Net debt = Non-current loans and borrowings + current loans and borrowings + cash pool liabilities - cash and cash equivalents 18.6 Earnings per share Basic earnings per share      2014 2013 Profit for the year 328 938 Weighted average number of shares 181,334,764 181,334,764 Earnings per share (in CZK per share) 1.81 5.17 Diluted earnings per share Diluted earnings per share are the same as basic earnings per share. 19. Loans, borrowings   Long-term Short-term Total   31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 Bank loans - - - 266 - 266 Borrowings 4,000 2,000 21 2 4,021 2,002   4,000 2,000 21 268 4,021 2,268 Bank loans and cash pool agreements During the year 2014 the Company had cash pool and loan agreements with the following banks, subsidiaries and related companies: Banks: CITIBANK a.s., ING Bank N.V., organizační složka, Česká spořitelna, a.s., and Nordea Bank Finland Plc. Subsidiaries and related companies: UNIPETROL RPA, s.r.o., BENZINA, s.r.o., PARAMO, a.s., UNIPETROL DOPRAVA, s.r.o., POLYMER INSTITUTE BRNO, spol s r.o., PETROTRANS, s.r.o., UNIPETROL SERVICES, s.r.o., UNIPETROL SLOVENSKO, s.r.o., Butadien Kralupy a.s., MOGUL SLOVAKIA, s.r.o. a ORLEN FINANCE AB. Cash held at bank accounts of above mentioned banks is drawn by the Company and above mentioned subsidiaries. The contracts enable to access bank loans from CZK 850 million to CZK 4 000 million from each bank. Interest income/expense are calculated from the drawn amount and consequently divided among the parties involved.

Separate financial statements UNIPETROL, a.s. Annual report 2014 146 (in millions of CZK) Loan granted by PKN Orlen S.A. On 12 December 2013 the Company signed a mid-term loan agreement with its majority shareholder PKN ORLEN S.A. Based on the Agreement, Unipetrol has received a mid-term loan in the amount of CZK 4 000 million. The purpose of the loan is the diversification of Unipetrol’s funding sources and extension of their maturity. The loan has been divided into two tranches of CZK 2 billion each. First tranche was received in December 2013 and second tranche in January 2014. The loan has a 3-year maturity, i.e. each tranche 36 months from its reception. Interests will be paid semi-annually and will be based on 6 months PRIBOR plus fixed margin. Pricing is in line with currently prevailing market conditions for 3-year loans provided in CZK. Analyses of bank loans - by currency (translated into CZK)     31/12/2014   31/12/2013 CZK   -   204 EUR   -   43 USD   -   19     -   266 - by interest rate     31/12/2014   31/12/2013 PRIBOR   -   204 EURIBOR   -   43 LIBOR   -   19     -   266 Short-term bank loans are subject to variable interests and their carrying amounts approximate fair values. Average effective interest rate as at 31 December 2014 was 0,758% (31 December 2013: 0,73%). Disclosures resulting from IFRS 7 relating to loans and borrowings are included in note 22 and are presented jointly with other financial instruments. Analyses of borrowings - by currency (translated into CZK)     31/12/2014   31/12/2013 CZK   4,021   2,002     4,021   2,002 - by interest rate     31/12/2014   31/12/2013 PRIBOR   4,021   2,002     4,021   2,002

Separate financial statements UNIPETROL, a .s . Annual report 2014 147 (in millions of CZK) 20. trade and other liabilities     31/12/2014   31/12/2013 Trade liabilities   38   29 Dividends   35   35 Other   14   15 Financial liabilities   87   79 Payroll liabilities   6   11 Value added tax   7   7 Other taxation, duties, social security and other benefits   4   5 Accruals   31   35 - holiday pay accrual   1   2 - wages accrual   30   33 Non-financial liabilities   48   58     135   137 The management considers that the carrying amount of trade and other payables and accruals approximate their fair value . 21. Other financial liabilities The Company had cash pool liabilities to subsidiaries and related entities in amount of CZK 1 975 million as at 31 December 2014 (CZK 825 million as at 31 December 2013). The description of cash pool agreements is presented in note 16.

Separate financial statements UNIPETROL, a.s. Annual report 2014 148 (in millions of CZK) 22. Financial instruments 22.1. Financial instruments by category and class Financial assets 31/12/2014   Financial instruments by category Financial instruments by class Note Loans and receivables Total Trade receivables 15 160 160 Borrowings granted 14.16 13,644 13,644 Cash pool 16 2,886 2,886 Cash and cash equivalents 17 516 516 Other financial assets 15 3 3     17,209 17,209 31/12/2013   Financial instruments by category Financial instruments by class Note Loans and receivables Total Obchodní a jiné pohledávky 15 145 145 Poskytnuté půjčky 14,16 11,572 11,572 Cash pool 16 2,637 2,637 Peníze a peněžní ekvivalenty 17 158 158 Ostatní finanční aktiva 15 3 3     14,515 14,515

Separate financial statements UNIPETROL, a.s. Annual report 2014 149 (in millions of CZK) Financial liabilities 31/12/2014   Financial instruments by category Financial instruments by class Note Financial liabilities measured at amortised cost Total Non-current borrowings 19 4,000 4,000 Current borrowings 19 21 21 Trade liabilities 20 38 38 Cash pool 21 1,975 1,975 Other financial liabilities 20 49 49     6,083 6,083 31/12/2013   Financial instruments by category Financial instruments by class Note Financial liabilities measured at amortised cost Total Non-current borrowings 19 2,000 2,000 Current borrowings 19 2 2 Current loans 19 266 266 Trade liabilities 20 29 29 Cash pool 21 825 825 Other financial liabilities 20 50 50     3,172 3,172

Separate financial statements UNIPETROL, a.s. Annual report 2014 150 (in millions of CZK) 22.2 Income and costs, gain and loss in the statement of profit or loss and other comprehensive income 2014 Financial instruments by category     Loans and receivables Financial assets available for sale Financial liabilities measured at amortised cost Total Interest income 184 - - 184 Interest costs - - (95) (95) Foreign exchange gain/(loss) (1) - 1 - Recognition/reversal of receivables impair- ment allowances recognized in:       other operating income/(expenses) 21 - - 21 Other 6 - (9) (3)   210 - (103) 107 other, exluded from the scope of IFRS 7         Dividends       359         359 2013   Financial instruments by category     Loans and receiv- ables Financial assets available for sale Financial liabilities measured at amortised cost Total Interest income   331 - - 331 Interest costs   - - (227) (227) Foreign exchange gain/(loss)   3 - (5) (2) Valuation of financial assets available for sale   - 16 - 16 Other   4 - (4) -     338 16 (236) 118 other, exluded from the scope of IFRS 7           Dividends         968           968

Separate financial statements UNIPETROL, a.s. Annual report 2014 151 (in millions of CZK) 22.3 Financial risk management The Group’s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the risks outlined below relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other market price risk), credit risk and liquidity risk. The Company seeks to minimize the effects of these risks by using natural hedging and derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess funds. Compliance with policies and exposure limits is reviewed by the internal auditors on a regular basis. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. 22.4 Credit risk The Company has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Loans granted (note 14 and note 16) and receivables (note 15) principally consist of amounts due from subsidiaries and joint operations. The Company does not require collateral in respect of these financial assets. The Company’s management monitors the most significant debtors and assesses their creditworthiness. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Statement of financial position. Based on the analysis of receivables the counterparties were divided into two groups: • I group – counterparties with good or very good history of cooperation in the current year, • II group – other counterparties. 31/12/2014 31/12/2013 Group I   163   148 Group II   -   -     163   148 The carrying amount of financial assets represents the maximum credit exposure. The Company does not have any past due, not impaired financial assets. The maximum credit risk in respect of each class of financial assets is equal to the book value. 22.5 Liquidity risk management Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate liquid funds, borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. As at 31 December 2014 and 31 December 2013 the maximum available credit facilities relating to bank loans amounted to CZK 13 485 million and CZK 10 750 million respectively, of which as at 31 December 2014 and 31 December 2013 CZK 12 664 million and CZK 10 482 million respectively remained unused. The description of the loans and guarantees drawn from credit facilities are presented in notes 19 and 25.

Individuální účetní uzávěrka UNIPETROL, a .s . PB Separate financial statements UNIPETROL, a .s . Annual report 2014 152 (in millions of CZK) Liquidity risk tables The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities using the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows. Contractual maturity of financial liabilities     31/12/2014   Note Up to 1 year From 1 to 3 years Total Carrying amount Borrowings - undiscounted value 19 87 4,087 4,174 4,021 Cash pool - undiscounted value 21 1,975 - 1 975 1,975 Trade and other liabilities 20 87 - 87 87     2,149 4,087 6,236 6,083     31/12/2013   Note Up to 1 year From 1 to 3 years Total Carrying amount Loans - undiscounted value 19 266 - 266 266 Borrowings - undiscounted value 19 45 2,087 2,132 2,002 Cash pool - undiscounted value 21 825 - 825 825 Trade and other liabilities 20 79 - 79 79     1,215 2,087 3,302 3,172

Separate financial statements UNIPETROL, a.s. Annual report 2014 153 (in millions of CZK) 22.6 Market risk The Company’s activities are exposed primarily to the risks of changes in foreign currency exchange rates, and interest rates. The Company can enter into financial derivative contracts to manage its exposure to interest rate and currency risk. 22.6.1 Currency risk The currency risk arises most significantly from the exposure of trade payables and receivables denominated in foreign currencies, and the foreign currency denominated loans and borrowings. Foreign exchange risk regarding trade payables and receivables is mostly covered by natural hedging of trade payables and receivables denominated in the same currencies. Hedging instruments (forwards, currency swaps) also could be used, to cover significant foreign exchange risk exposure of trade payables and receivables not covered by natural hedging. Currency structure of financial instruments denominated in foreign currency as at 31 December 2014: EUR USD Total after translation to CZK Financial assets       Borrowings granted 4 - 122 Cash pool - 11 257 Cash and cash equivalents 5 - 155   9 11 534 Financial liabilities       Cash pool 5 11 409 Trade and other liabilities - - 3   5 11 412 Currency structure of financial instruments denominated in foreign currency as at 31 December 2013: EUR USD Total after translation to CZK Financial assets     Trade receivables - - 2 Cash pool 3 1 106 Cash and cash equivalents - 7 133   3 8 241 Financial liabilities     Loans 2 1 62 Cash pool 2 7 174 Trade and other liabilities - - 8   4 8 244

Separate financial statements UNIPETROL, a.s. Annual report 2014 154 (in millions of CZK) Foreign currency sensitivity analysis The Company is mainly exposed to the fluctuation of exchange rates of CZK/USD and CZK/EUR. The following table details the Company’s sensitivity to percentage increase and decrease in the CZK against the relevant foreign currencies. Influence on profit before tax 2014 Increase of exchange rate Total influence Decrease of exchange rate Total influence EUR/CZK 15% 18 15% (18) Influence on profit before tax 2013 Increase of exchange rate Total influence Decrease of exchange rate Total influence EUR/CZK 15% (1) 15% 1 22.6.2 Interest rate risk The Company is exposed to the risk of volatility of cash flows arising from interest rate loans and cash pool arrangements granted and taken. Interest rate structure of financial instruments:   PRIBOR EURIBOR LIBOR Účetní hodnota 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 Financial assets                 Borrowings granted 13,522 11,572 122 - - - 13,644 11,572 Cash pool 2,629 2,531 - 86 257 20 2,886 2,637   16,151 14,103 122 86 257 20 16,530 14,209 Financial liabilities                 Loans - 204 - 43 - 19 - 266 Borrowings 4,021 2,002 - - - - 4,021 2,002 Cash pool 1,566 651 150 44 259 130 1,975 825   5,587 2,857 150 87 259 149 5,996 3,093

Separate financial statements UNIPETROL, a.s. Annual report 2014 155 (in millions of CZK) Interest rate sensitivity analysis The influence of financial instruments on profit before tax and hedging reserve due to changes in significant interest rates: Interest rate Assumed variation Influence on profit before tax Influence on hedging reserve Total 31/12/2014 31/12/2013 2014 2013 2014 2013 2014 2013 EURIBOR +0.5 p.p. +0.5 p.p. - - -  -  - - LIBOR +0.5 p.p. +0.5 p.p. - (1) -  -  - (1) PRIBOR +0.5 p.p. +0.5 p.p. 53 56 -  -  53 56       53 55 - - 53 55 The above interest rates variations were calculated based on observations of interest rates fluctuations in the current and prior year as well as on the basis of available forecasts. The sensitivity analysis was performed on the basis of instruments held as at 31 December 2014 and 31 December 2013. The influence of interest rates changes was presented on annual basis. 23. Fair value determination     31/12/2014 31/12/2013   Note Fair value Carrying amount Fair value Carrying amount Financial assets           Trade receivables 15 160 160 145 145 Borrowings granted 14.16 13,644 13,644 11,572 11,572 Cash pool 16 2,886 2,886 2,637 2,637 Cash and cash equivalents 17 516 516 158 158 Other financial assets 15 3 3 3 3     17,209 17,209 14,515 14,515 Financial liabilities           Loans 19 - - 266 266 Borrowings 19 4,021 4,021 2,002 2,002 Trade liabilities 20 38 38 29 29 Cash pool 21 1,975 1,975 825 825 Other financial liabilities 20 49 49 50 50     6,083 6,083 3,172 3,172

Separate financial statements UNIPETROL, a.s. Annual report 2014 156 (in millions of CZK) 23.1. Methods applied in determining fair values of financial instruments (fair value hierarchy) Fair value of shares quoted on active markets is determined based on market quotations (so called Level 1). In other cases, fair value is determined based on other input data, apart from market quotations, which are directly or indirectly possible to observe (so called Level 2) and data to valuation, which aren’t based on observable market data (Level 3). Financial assets and liabilities carried at fair value by the Company belong to Level 2 as defined by IFRS. In the year ended 31 December 2014 and the comparative period in the Company were no transfers between Levels 1, 2 and 3. Investment property The Company applied the revenue approach to investment property with carrying amount of CZK 1 156 million as at 31 December 2014 (31 December 2013: CZK 1 156 million). In the revenue approach the calculation was based on the discounted cash flow method. The discount rate used reflects the relation, as expected by the buyer, between yearly revenue from an investment property and expenditures required to purchase investment property. Forecasts of discounted cash flows relating to the property consider arrangements included in all rent agreements as well as external data, e.g. current market rent charges for similar property, in the same location, technical conditions, standard and designed for similar purposes. The investment property valued under revenue approach is classified to the Level 3 defined by IFRS 7. The movements in the assets classified to the Level 3 fair values were as follows: 31/12/2014  31/12/2013 At the beginning of the year 1,156 1,149 Transfer from Property, plant and equipment - 7   1,156 1,156 Sensitivity analysis of changes in fair value of investment property classified under Level 3 fair value Analysis of the influence of potential changes in the fair value ​​ of investment property on profit before tax in relation to a hypothetical change in discount rate:       Level 3     Increase by Total impact  Decrease by Total impact Change in discount rate +1 p.p. (90) (1 p.p.) 90 As at 31 December 2014 the Company held unquoted shares in entities amounting to CZK 14 542 million (31 December 2013: CZK 13 991 million), for which fair value cannot be reliably measured, due to the fact that there are no active markets for these entities and no comparable transactions in the same type of instruments. Above mentioned shares were recognized as financial assets available for sale and measured at acquisitioncost less impairment allowances. As at 31 December 2014 there are no binding decisions relating to the means and dates of disposal of those assets.

Separate financial statements UNIPETROL, a.s. Annual report 2014 157 (in millions of CZK) 24. Leases 24.1. The Company as lessee Operating lease At the balance sheet date the Company possessed non-cancellable operating lease arrangements as a lessee. Future minimum lease payments under non–cancellable operating lease agreements were as follows:   31/12/2014 31/12/2013 Less than one year 7 6 Between one and five years 20 27   27 33 The Company leases vehicles and offices under operating leases. The vehicle leases typically run for a two year period. Lease payments are adjusted annually to reflect market conditions. None of the leases includes contingent rentals. Payments recognized as an expense were as follows:   2014 2013 Non-cancellable operating lease 1 5 Finance lease At the balance sheet date the Company did not possess any finance lease arrangements as a lessee. 24.2 The Company as lessor As at 31 December 2014 and as at 31 December 2013 the Company did not possess any finance or operating lease agreements as a lessor. 25. Contingent liabilities Purchase of shares of PARAMO, a.s. In January 2009 UNIPETROL, a.s. effected a squeeze out of PARAMO, a.s. shares within the meaning of Sections 183i et seq. of the Commercial Code and became sole shareholder of PARAMO, a.s. In accordance with the resolutions of the Extraordinary General Meeting of PARAMO, a.s. of 6 January 2009, all other shares in PARAMO, a.s were transferred to the Company and the Company provided to the other shareholders of PARAMO, a.s. and/or pledges, the monetary consideration of CZK 977 per share of PARAMO, a.s. On 4 February 2009 the registration of the above resolution of the Extraordinary General Meeting was published in the Czech Commercial Register. Pursuant to the Czech Commercial Code, the ownership title to shares of the other shareholders passed to the Company on 4 March 2009 upon expiration of one month from the above publication and UNIPETROL, a.s. became the sole shareholder of PARAMO, a.s. In connection with the squeeze-out, certain minority shareholders of PARAMO, a.s. filed a petition with the Regional Court in Hradec Králové for a review of the adequacy of compensation within the meaning of the Czech Commercial Code. The case is now pending at the Regional Court in Hradec Králové. Furthermore some former minority shareholders of PARAMO, a.s. requested the Regional Court in Hradec Králové to declare the invalidity of PARAMO, a.s. general meeting resolution dated 6 January 2009 and the District Court in Prague 4 to review the decision of 28 November 2008 by which the Czech National Bank granted in accordance with Section 183n(1) of the Czech Commercial Code its previous approval with the monetary consideration provided under the above squeeze-out.

Separate financial statements UNIPETROL, a.s. Annual report 2014 158 (in millions of CZK) Regarding the case for declaration of invalidity of the PARAMO, a.s., the Regional Court in Hradec Králové dismissed the petition for declaration of invalidity of the PARAMO, a.s. general meeting resolution dated 6 January 2009.  Certain minority shareholders filed an extraordinary appeal against this decision and the case is now pending before the Supreme Court of the Czech Republic. In the case of the proceedings concerning the previous approval of the Czech National Bank, the action was dismissed by the District Court for Prague 4 in favor of the Czech National Bank and UNIPETROL, a.s. The proceedings are pending before the Municipal Court in Prague. The cassation appeal of certain minority shareholders concerning the invalidity of the General Meeting resolution was dismissed by the Supreme Court though the resolution dated 19 December 2013.  The Supreme Court´s resolution is final and unappealable. Within the adequacy of compensation proceedings, the court ordered preparation of a third expert’s valuation (Ústav oceňováni majetku při Ekonomické fakultě Vysoké školy báňské – Technické univerzity Ostrava, i.e. an institute established by the Faculty of Economy of the Technical University in Ostrava was appointed by the court to carry out the valuation). UNIPETROL appointed Pricewaterhousecoopers to provide a valuation of PARAMO shares.   The Court scheduled the next hearing in the adequacy of compensation proceedings for April 2015. Support letter issued in favour of PARAMO, a.s. The Company has confirmed in a letter of support its commitment to provide loan financing to its subsidiary PARAMO, a.s. for at least 12 months from the date of PARAMO, a.s.’s 2014 financial statements. Guarantees issued As part of the operational financing of UNIPETROL, a.s. , the bank guarantees in amount of CZK 821 million were provided for the companies: Unipetrol RPA, s.r.o. (in amount of CZK 761 million), UNIPETROL SERVICES, s.r.o. (in amount of 7 million CZK), BENZINA, s.r.o. (in amount of CZK 29 million) and PARAMO, a.s. (in amount of CZK 24 million). Furthermore UNIPETROL, a.s. issued a guarantee for the company UNIPETROL RPA, s.r.o. in favor of ČEPRO, a.s to ensure the excise tax in the amount of CZK 150 million. 26. Past enviromental liabilities The Company is the recipient of funds provided by the National Property Fund of the Czech Republic for settling environmental liabilities relating to historic environmental damage. Funds up to CZK 10 256 million are provided to cover cost actually incurred in relation to settlement of historic environmental damage. An overview of funds provided by the National Property Fund (currently administered by the Ministry of Finance) for the environmental contracts is provided below:     Total amount of funds to be provided Used funds as at 31/12/2014 Unused funds as at 31/12/2014 UNIPETROL, a.s. / premises of UNIPETROL RPA, s.r.o.  6,012   3,868 2,144 UNIPETROL, a.s. / premises of SYNTHOS Kralupy a.s.   4,244   51 4,193 10,256 3,919 6,337     Total amount of funds to be provided Used funds as at 31/12/2013 Unused funds as at 31/12/2013 UNIPETROL, a.s. / premises of UNIPETROL RPA, s.r.o. 6,012 3,688 2,324 UNIPETROL, a.s. / premises of SYNTHOS Kralupy a.s. 4,244 49 4,195   10 256 3 737 6 519

Separate financial statements UNIPETROL, a.s. Annual report 2014 159 (in millions of CZK) 27. Related parties 27.1 Material transactions concluded by the Company with related parties In year 2014 and in 2013 there were no transactions concluded by the Company with related parties on other than arm´s length. 27.2 Transactions with key management personnel In year 2014 and in 2013 the Company did not grant to key management personnel and their relatives any advances, loans, guarantees and commitments or other agreements obliging them to render services to Company and related parties. In year ended 31 December 2014 and in 2013 there were no significant transactions concluded with members of the Board of Directors, Supervisory Board, their spouses, siblings, descendants, ascendants or their other relatives. 27.3 Transaction with related parties concluded by key management personnel of the Company In year 2014 and in 2013 members of the key management personnel of the Parent Company and the Group companies submitted statements that they have not concluded any transaction with related parties. 27.4 Transactions and balances of settlements of the Company with related parties Parent and ultimate controlling party During 2014 and 2013 a majority (62,99%) of the Company’s shares were in possession of POLSKI KONCERN NAFTOWY ORLEN S.A. 2014 PKN Orlen Entities under control or significant influence of UNIPETROL, a.s. Entities under control or significant influence of PKN Orlen Sales - 132 - Purchases 3 41 - Finance income, including - 547 - dividends - 359 - Finance costs 86 - - 31/12/2014 PKN Orlen Společnosti pod rozhodujícím nebo podstatným vlivem UNIPETROL, a.s. Společnosti pod rozhodujícím nebo podstatným vlivem PKN Orlen Long term receivables and loans granted   - 1,472 - Short term financial assets   - 15,058 - Trade and other receivables - 109 - Trade and other liabilities, including loans 4,023 1,981 -

Individuální účetní uzávěrka UNIPETROL, a .s . PB Separate financial statements UNIPETROL, a .s . Annual report 2014 160 (in millions of CZK) 2013 PKN Orlen Long term receivables and loans granted   Entities under control or significant influence of PKN Sales     -   118   - Purchases     2   38   - Finance income, including     -   1,304   - dividends     -   968   - Finance costs     2   -   -                   31/12/2013 PKN Orlen Long term receivables and loans granted   Entities under control or significant influence of PKN Long term receivables and loans granted   - 1,520   - Short term financial assets   - 12,689   - Trade and other receivables - 103   - Trade and other liabilities, including loans 2,002 830   -

Separate financial statements UNIPETROL, a .s . Annual report 2014 161 (in millions of CZK) 28. Remuneration paid and due or potentially due to Management Board, Supervisory Board and other members of key executive personnel in accordance with IAS 24 The Management Board’s, the Supervisory Board’s and other key executive personnel’s remuneration includes short term employee benefits and termination benefits paid, due and potentially due during the period.   2014 2013   Short-term benefits Termination benefits Short-term benefits Termination benefits Remuneration of current period 67 2 69 2 Paid for previous year 15 - 14 - Potentially due to be paid in the following year 15 - 14 - Further detailed information regarding remuneration of key management personnel is included in note 7 .3 . 28.1 Bonus system for key executive personnel of the Company In 2014 the key executive personnel was participating in the annual MBO bonus system (management by objectives) . The regulations applicable to Management Board, directors directly reporting to Management Boards of entities and other key positions have certain common features . The persons subject to the above mentioned systems are remunerated for the accomplishment of specific goals set at the beginning of the bonus period, by the Supervisory Board for the Management Board Members and by the Management Board members for the key executive personnel . The bonus systems are structured in such way, so as to promote the cooperation between individual employees in view to achieve the best possible results for the Company. The goals so-said are qualitative or quantitative (measurable) and are accounted for following the end of the year for which they were set, on the rules adopted in the applicable Bonus System Regulations . Regulation gives the possibility to promote employees, who significantly contribute to results generated by the Company. 28.2 the entitlements upon the termination of employment The entitlements arising from contracts with key management personnel upon the termination of employment contained both a competition and a stabilization clause. The competition and stabilization clause ranges between three and six average monthly earnings or monthly base salary respectively . 29. Subsequent events after the reporting date The Company’s management is not aware of any other events that have occurred since end of the reporting period that would have any material impact on the financial statements as at 31 December 2014. 30. Approval of the financial statements These non-consolidated financial statements were authorized by the Board of Directors’ meeting held on 3 March 2015. Signature of statutory representatives Marek Świtajewski Mirosław Kastelik Chairman of the Board of Directors Member of the Board of Directors Mirosław Kastelik Marek Świtajewski

UNIPETROL, a.s. Annual report 2014 162 Consolidated financial statements (in millions of CZK) Consolidated statement of profit or loss and other comprehensive income . . . . . . . . . . . . 165 Consolidated statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Consolidated statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Accounting principles and other explanatory notes . . . . . . . . . . . . . . . . . . . . . . . 169 1. Description of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 2. Statements of the Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 3. Accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 3.1 Principles of preparation of financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 3.2 Impact of IFRS amendments and interpretations on consolidated financial statements of the Group . . . . . 171 3.3 Functional currency and presentation currency of financial statements and methods applied to translation of financial data for consolidation purposes . . . . . . . . . . . . . . . . . . . . . . . 172 3.4 Accounting policies applied by the Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 4. Application of professional judgement and assumptions . . . . . . . . . . . . . . . . . . . . . 193 5. The parent company and structure of the consolidated group . . . . . . . . . . . . . . . . . . . 194 6. Changes in disclosure of comparative period . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Notes to operating segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 7. Operating segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 7.1 Revenues and financial result by operating segments . . . . . . . . . . . . . . . . . . . . . . . . . 198 7.2 Impact of new segment division on revenues and financial result presented in previous year . . . . . . . . 200 7.3 Other segment data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 7.4 Revenues from major products and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 7.5 Information about major customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203 Notes to statement of profit or loss and other comprehensive income . . . . . . . . . . . . . . . 204 8. Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 9. Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 9.1 Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 9.2 Cost by nature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204 9.3 Employee benefits costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 10. Other operating income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Consolidated financial statements for the year 2014 Translation from the Czech original Contentpage Consolidated financial statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union

UNIPETROL, a.s. Annual report 2014 163 Consolidated financial statements (in millions of CZK) 10.1 Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 10.2 Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 11. Finance income and finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 11.1 Finance income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 11.2 Finance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 12. Tax credit / (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207 12.1 The differences between income tax expense recognized in profit or loss and the amount calculated based on profit before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 12.2 Deferred tax assets and liabilites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Notes to statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 13. Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 13.1 Changes in impairment allowances of Property, plant and equipment . . . . . . . . . . . . . . . . . . 212 13.2 Other information regarding Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . 212 14. Investment property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 15. Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 15.1 Changes in Internally generated intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 15.2 Changes in impairment allowances of Internally generated intangible assets . . . . . . . . . . . . . . . 215 15.3 Changes in Other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215 15.4 Changes in impairment allowances of Other intangible assets . . . . . . . . . . . . . . . . . . . . . 217 15.5 CO 2 emission allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 16. Joint operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 17. Financial assets available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 18. Other non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 19. Impairment of non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 20. Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 21. Trade and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222 22. Other financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 23. Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24. Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.1 Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.2 Statutory reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.3 Hedging reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.4 Revaluation reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.5 Foreign exchange differences on subsidiaries from consolidation . . . . . . . . . . . . . . . . . . . . 224 24.6 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.7 Capital management policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 24.8 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 25. Loans and borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 26. Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

UNIPETROL, a.s. Annual report 2014 164 Consolidated financial statements (in millions of CZK) 26.1 Environmental provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 26.2 Provisions for jubilee bonuses and retirement benefits . . . . . . . . . . . . . . . . . . . . . . . . 227 26.3 Provisions for legal disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 26.4 Provision for CO 2 emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 26.5 Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 27. Other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 28. Trade and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 29. Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233 30. Other financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Notes to financial instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 31. Financial instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 31.1 Financial instruments by category and class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235 31.2 Income and costs, gain and loss in the consolidated statement of profit or loss and other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 31.3 Hedge accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 31.4 Financial risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 31.5 Credit risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 31.6 Liquidity risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 31.7 Market risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 32. Fair value determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 32.1 Methods applied in determining fair values of financial instruments (fair value hierarchy) . . . . . . . . . . 244 Other notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 33. Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 33.1 The Group as lessee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 33.2 The Group as lessor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 34. Investment expenditure incurred and contingent liabilities from signed investment contracts . . . 247 35. Contingent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 36. Guarantes and securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 37. Related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 37.1 Material transactions concluded by the Group Companies with related parties . . . . . . . . . . . . . . 249 37.2 Transactions with key management personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 37.3 Transaction with related parties concluded by key management personnel of the Group companies . . . . . 249 37.4 Transactions and balances of settlements of the Group companies with related parties . . . . . . . . . . . 249 38. Remuneration paid and due or potentially due to Management Board, Supervisory Board and other members of key executive personnel of parent company and the Group companies in accordance with IAS 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 38.1 Key management personnel and statutory bodies’ members’ compensation . . . . . . . . . . . . . . . . 250 38.2 Bonus system for key executive personnel of the Group . . . . . . . . . . . . . . . . . . . . . . . . 251 39. Information concerning significant proceedings in front of court, body appropriate for arbitration proceedings or in front of public administration bodies . . . . . . . . . . . . . . 251 40. Subsequent events after the reporting date . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 41. Approval of the financial statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

UNIPETROL, a.s. Annual report 2014 165 Consolidated financial statements (in millions of CZK) Consolidated financial statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union Consolidated statement of profit or loss and other comprehensive income Bod 2014 2013 Statement of profit or loss Revenues 8 124,229 99,415 Cost of sales 9.1 (118,243) (97,112) Gross profit on sales   5 986 2,303 Distribution expenses 9.2 (2,090) (1,963) Administrative expenses 9.2 (1,274) (1,192) Other operating income 10.1 1,645 188 Other operating expenses 10.2 (5,264) (229) Loss from operations   (997) (893) Finance income 11.1 1,272 1,076 Finance costs 11.2 (1,637) (1,526) Net finance costs   (365) (450) Loss before tax   (1,362) (1,343) Tax credit / (expense) 12 806 (53) Net loss   (556) (1,396) Other comprehensive income       Items which will not be reclassified into profit or loss (10) (2) Actuarial gains and losses   (12) (2) Deferred tax   2 - Items which will be reclassified into profit or loss under certain conditions 728 (145) Hedging instruments 899 (206) Foreign exchange differences on subsidiaries from consolidation - 28 Deferred tax (171) 33     718 (147) Total net comprehensive income   162 (1,543)         Net loss attributable to   (556) (1,396) equity owners of the parent   (556) (1,394) non-controlling interest   - (2) Total comprehensive income attributable to 162 (1 543) equity owners of the parent   162 (1,541) non-controlling interest   - (2) Net profit/(loss) and diluted net profit/(loss) per share attributa- ble to equity owners of the parent (in CZK per share) 24.8 (3.07) (7.70) The consolidated financial statements are to be read in conjunction with the notes forming part of the consolidated financial statements set out on pages 169 - 253.

UNIPETROL, a.s. Annual report 2014 166 Consolidated financial statements (in millions of CZK) Consolidated statement of financial position   Bod 31/12/2014 31/12/2013 ASSETS       Non-current assets       Property, plant and equipment 13  18,893 23,177 Investment property 14  419 427 Intangible assets 15  1,792 1,748 Financial assets available for sale 17  1 1 Deferred tax assets 12.2  1,039 259 Other non-current assets 18  29 53     22,173 25,665 Current assets       Inventories 20  10,320 10,705 Trade and other receivables 21  12,506 12,393 Other financial assets 22 1,764 49 Current tax receivables   72 70 Cash and cash equivalents 23 1,682 1,117     26,344 24,334 Total assets   48,517 49,999         Equity and liabilities       Equity       Share capital 24.1  18,133 18,133 Statutory reserves 24.2  2,703 2,643 Hedging reserve 24.3  538 (190) Revaluation reserve 24.4  10 10 Foreign exchange differences on subsidiaries from consolidation 24.5  18 18 Retained earnings 24.6  7,069 7,695 Total equity attributable to equity owners of the parent   28,471 28,309 Non-controlling interest   (9) (9) Total equity   28,462 28,300         Liabilities       Non-current liabilities       Loans and borrowings 25 4,000 2,000 Provisions 26 457 433 Deferred tax liabilities 12.2   203 226 Other non-current liabilities 27 185 202     4,845 2,861 Current liabilities       Trade and other liabilities 28 13,582 17,313 Loans and borrowings 25 350 507 Current tax liabilities 8 19 Provisions 26 782 541 Deferred income 29 76 109 Other financial liabilities 30 412 349     15,210 18,838 Total liabilities   20,055 21,699 Total equity and liabilities   48,517 49,999 The consolidated financial statements are to be read in conjunction with the notes forming part of the consolidated financial statements set out on pages 169 - 253.

UNIPETROL, a .s . Annual report 2014 167 Consolidated financial statements (in millions of CZK) Consolidated statement of changes in equity   Equity attributable to equity owners of the parent Non- controlling interest Total equity   Share capital Statu- tory reser- ves Hedging reserve Foreign exchange differences on subsidia- ries from consolidation Reva- luation reserve Retained earnings Total                     1 January 2014 18,133 2,643 (190) 18 10 7,695 28,309 (9) 28,300 Net loss - - - - - (556) (556) - (556) Items of other compre- hensive income - -  728 - - (10) 718 - 718 Total net compre- hensive income   - - 728 - - (566) 162 - 162 Allocation of profit - 60 - - - (60) - - - 31 December 2014 18,133 2,703 538 18 10 7,069 28,471 (9) 28,462                     1 January 2013 18,133 2,583 (16) (10) 68 9,092 29,850 (7) 29,843 Net loss - - - - - (1,394) (1,394) (2) (1,396) Items of other compre- hensive income - - (174) 28 (58) 57 (147) - (147) Total net compre- hensive income - - (174) 28 (58) (1,337) (1,541) (2) (1,543) Allocation of profit - 60 - - - (60) - - - 31. prosince 2013 18,133 2,643 (190) 18 10 7,695 28,309 (9) 28,300 The consolidated financial statements are to be read in conjunction with the notes forming part of the consolidated financial statements set out on pages 169 - 253.

UNIPETROL, a.s. Annual report 2014 168 Consolidated financial statements (in millions of CZK) Consolidated statement of cash flows   Note  2014   2013 Cash flows - operating activities       Net loss   (556)   (1,396) Adjustments for:         Depreciation and amortisation  9 2,270   2,415 Foreign exchange (gain)/loss 7   6 Interest and dividends, net   105   246 (Profit)/Loss on investing activities including impairment charge and profit from financial derivatives   4,371   (89) Change in provisions   807   735 Tax expense  12 (805)   53 Income tax (paid)   (124)   (189) Gain on bargain purchase  5 (1,186)   - Other adjustments including change from financial instruments and movements in deffered income   (1,125)   (257) Change in working capital   (3,027)   (1,224) inventories   548   (436) receivables   559   (942) liabilities   (4,134)   154 Net cash provided by operating activities 737   300 Cash flows - investing activities       Acquisition of property, plant and equipment and intangible assets (2,093)   (1,728) Disposal of property, plant and equipment and intangible assets 39   34 Acquisition of share in Česká rafinérská   (547)   - Cash acquired in acquisition of share in Česká rafinérská   141   - Settlement of financial derivatives   533   7 Proceeds/(Outflows) from loans granted   29   (1) Other   (20)   - Net cash provided used in investing activities (1,918)   (1,688) Cash flows - financing activities       Proceeds/(Outflows) from loans and borrowings   1,824   1,883 Repayment of bonds issued   -   (2,000) Proceeds/(Outflows) from cash pool liabilities -   (176) Interest paid   (90)   (284) Payments of liabilities under finance lease agreements (1)   (3) Other (5)   (3) Net cash provided by/(used in) financing activities 1,728   (583) Net increase/(decrease) in cash and cash equivalents 547   (1,971) Effect of exchange rate changes 18   14 Cash and cash equivalents, beginning of the year 1,117   3,074 Cash and cash equivalents, end of the year 23 1,682   1,117 The consolidated financial statements are to be read in conjunction with the notes forming part of the consolidated financial statements set out on pages 169 - 253.

UNIPETROL, a.s. Annual report 2014 169 Consolidated financial statements (in millions of CZK) 1. Description of the Company Establishment of the Company UNIPETROL, a.s. (the “Company”, “parent”, “parent company”) is a joint stock company established by the National Property Fund of the Czech Republic by a foundation agreement dated 27 December 1994. The Company was registered in the Register of Companies at the Regional Commercial Court in Prague on 17 February 1995. The Company is listed and registered on the Prague Stock Exchange. Identification number of the Company 616 72 190 Registered office of the Company UNIPETROL, a.s. Na Pankraci 127 140 00 Praha 4 Czech Republic Principal activities The Company operates as a holding company covering and administering a group of companies (hereinafter the “Group”). The principal business activities of the Group include oil and petroleum products processing, production of commodity chemicals, polymer materials, mineral lubricants, plastic lubricants, road and insulation bitumen, special refinery and petrochemical products. Furthermore, the Group is engaged in the distribution of fuels and operation of gas stations. In addition to these principal activities, the Group is engaged in other activities that are necessary to support the principal activities, such as production, distribution and sale of heat and electricity, operation of railway tracks and railway transportation, advisory services relating to research and development, environmental protection, software and hardware advisory services and other services. Ownership structure The shareholders as at 31 December 2014 are as follows:     Number of shares Nominal value of shares (in CZK) Share in share capital POLSKI KONCERN NAFTOWY ORLEN S.A. 114,226 499 11,422,649,900 62.99% J&T Group *   42,976 339 4,297,633 900 23.70% Investment funds and other minority shareholders 24,131 926 2,413,192,600 13.31%     181,334 764 18,133,476,400 100% * As of 19 March 2014 (last available data) - According to notification received on 31 March 2014 J&T Group holds 23,70% share of votes through following companies: PAULININO LIMITED, EGNARO INVESTMENTS LIMITED, LEVOS LIMITED, LCE COMPANY LIMITED, NEEVAS INVESTMENT LIMITED, UPRECHT INVESTMENT LIMITED, MUSTAND INVESTMENT LIMITED. Accounting principles and other explanatory notes

UNIPETROL, a.s. Annual report 2014 170 Consolidated financial statements (in millions of CZK) Statutory and supervisory bodies Members of the statutory and supervisory bodies of UNIPETROL, a.s. as at 31 December 2014 were as follows:   Position Name Board of Directors Chairman Marek Świtajewski   Vice-chairman Piotr Wielowieyski   Member Martin Durčák   Member Mirosław Kastelik   Member Andrzej Kozłowski   Member Lukasz Piotrowski Supervisory Board Chairman Dariusz Jacek Krawiec   Vice-chairman Ivan Kočárník   Vice-chairman Sławomir Jędrzejczyk   Member Piotr Kearney   Member Zdeněk Černý   Member Krystian Pater   Member Rafał Sekuła   Member Piotr Chełminski   Member Bogdan Dzudzewicz Changes in the board of directors in 2014 were as follows: Position  Name Change Date of change Member  Artur Paździor Resigned 30 April 2014 Member  Lukasz Piotrowski Elected into the office 11 June 2014 Changes in the supervisory board in 2014 were as follows:   Position  Name Change Date of change Member  Dariusz Jacek Krawiec Re-elected into the office 1 July 2014 Member  Piotr Kearney Re-elected into the office 1 July 2014 Member  Sławomir Jędrzejczyk Re-elected into the office 1 July 2014

UNIPETROL, a.s. Annual report 2014 171 Consolidated financial statements (in millions of CZK) 2. Statements of the Management Board The Management Board of UNIPETROL hereby declares that to the best of their knowledge the foregoing consolidated financial statements and comparative data were prepared in compliance with the applicable accounting principles binding in the Group (disclosed in note 3) and that they reflect true and fair view on financial position and financial result of the Group, including basic risks and exposures. 3. Accounting principles 3.1 Principles of preparation of financial statements The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and their interpretations approved by the International Accounting Standards Board (IASB) which were adopted by the European Union (EU) and were in force as at 31 December 2014. Financial statements have been prepared based on historical cost, except for: derivatives, financial instruments at fair value through profit and loss, financial assets available for sale, and investment properties stated at fair value. The consolidated financial statements are compliant with all requirements of IFRSs adopted by the EU and present a true and fair view of the Group’s financial position as at 31 December 2014, results of its operations and cash flows for the year ended 31 December 2014. The consolidated financial statements of the Group for the year ended 31 December 2014 comprise the Company and its subsidiaries (together referred as the “Group”) and the Group’s interest in jointly controlled entities. These consolidated financial statements have been prepared on a going concern basis. As at the date of approval of the statements there is no uncertainty that the Group will not be able to continue as a going concern in the foreseeable future. The financial statements, except for statement of cash flows, are prepared on the accrual basis of accounting. 3.2 Impact of IFRS amendments and interpretations on consolidated financial statements of the Group 3.2.1 Binding amendments and interpretations to IFRSs The following standards, which are significant for the preparation of these consolidated financial statements became effective on 1 January 2014: IFRS 10 - Consolidated Financial Statements, IFRS 11 - Joint Arrangements, IFRS 12 - Disclosure of Interest in Other Entities as well as changes in standards: IAS 27 - Separate Financial Statements and IAS 28 - Investments in Associates and Joint Ventures. According to IFRS 10 the Company performed evaluation of control over its subsidiaries, based on the analyses there were no changes in conclusions as to the Company’s control over those entities. The application of IFRS 11 Joint Arrangements did not have an impact on the consolidated financial statements, since the assessment of the joint arrangements under this standard has not resulted in a change of the accounting treatment of existing joint arrangements. In accordance with IFRS 11 entities belonging to the Group - Ceska Rafinerska and Butadien Kralupy were classified as a joint operations and as at 31 December 2014 are accounted based on the share in owned assets, liabilities, generated revenue and incurred costs. Implementation of IFRS 11 in relation to the above entities had no impact on the consolidated net result of the Group. Adoption of IFRS 12 standard by the Group from January 2014 resulted in increased disclosures for investments in other entities. The amendments to other than above mentioned standards and IFRS interpretations, in force from 1 January 2014 until the date of publication of these consolidated financial statements had no impact on the foregoing consolidated financial statements. 3.2.2 IFRSs, amendments and interpretations to IFRSs endorsed by European Union, not yet effective The Group intends to adopt new standards and amendments to the standards and interpretations to IFRSs listed below that are published by the International Accounting Standards Board, but not effective as at the date of publication of these financial statements, in accordance with their effective date. • IFRIC Interpretation 21 - Levies • Amendments to IAS 19 - Employee Benefits entitled Defined Benefit Plans: Employee Contributions • Improvements to IFRS (2010-2012) • Improvements to IFRS (2011-2013) It is expected that the aforementioned standards and amendments to standards, when initially applied, will have no material impact on future consolidated financial statements of the Group.

UNIPETROL, a.s. Annual report 2014 172 Consolidated financial statements (in millions of CZK) 3.2.3 Standards, amendments and interpretations adopted by International Accounting Standards Board (IASB), waiting for approval of European Union Those new standards and amendments which may be relevant to the Group are set out below: • New standard IFRS 9 - Financial Instruments • New standard IFRS 14 - Regulatory Deferral Accounts • New standard IFRS 15 - Revenue from Contracts with Customers • Amendments to IFRS 11 - Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations • Amendments to IAS 16 - Property, Plant and Equipment and IAS 38 - Intangible Assets: Clarification of Acceptable Methods of Depreciation and Amortisation • Amendments to IAS 16 - Property, Plant and Equipment and IAS 41 - Agriculture: Agriculture: Bearer Plants • Amendments to IAS 27 - Separate Financial Statements: Equity Method in Separate Financial Statements • Amendments to IFRS 10 - Consolidated Financial Statements and IAS 28 - Investments in Associates: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture • Improvements to IFRS (2012-2014) • Amendments to IFRS 10 - Consolidated Financial Statements, IFRS 12 - Disclosure of Interests in Other Entities and IAS 28 - Investments in Associates and Joint Ventures: Investment Entities: Applying the Consolidation Exception • Amendments to IAS 1 - Presentation of Financial Statements: Disclosure initiative It is expected that the aforementioned standards, amendments and interpretation to standards, when initially applied, will have no material impact on future consolidated financial statements of the Group, however, when the new standard IFRS 9 will be initially applied, financial assets will be assigned to changed financial instruments categories. The impact of the initial application of the new standard IFRS 15, effective for annual periods beginning on or after 1 January 2017 will depend on the specific facts and conditions of the contracts with customers in which the Group will be a party. 3.3 Functional currency and presentation currency of financial statements and methods applied to translation of financial data for consolidation purposes 3.3.1 Functional and presentation currency These consolidated financial statements are presented in Czech crowns (CZK), which is the Group’s presentation and Company’s functional currency. All financial information presented in CZK has been rounded to the nearest million. In prior year the financial information were presented in CZK thousands. In current year the Company changed the presentation to CZK million and performed corresponding changes in prior year figures. 3.3.2 Methods applied to translation of data for consolidation purposes Financial statements of foreign entities, for consolidation purposes, are translated into CZK using the following methods: • assets and liabilities of each presented statement of financial position are translated at the closing rate published by the Czech National bank (“CNB”) at the end of the reporting period; • respective items of statement of profit or loss and other comprehensive income and statement of cash flows are translated at average exchange rates published by the CNB. All resulting exchange differences are recognized in equity, as foreign exchange differences on revaluation of subsidiaries. These differences are recognized in profit or loss in the period in which the foreign operation is disposed. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the exchange rate prevailing at the balance sheet date. Average exchange rate for the reporting period Exchange rate as at the end of reporting period Currency 2014 2013 2014 2013 CZK/EUR 27,533 25,974 27,730 27,425 CZK/USD 20,746 19,565 22,797 19,894

UNIPETROL, a.s. Annual report 2014 173 Consolidated financial statements (in millions of CZK) 3.4 Accounting policies applied by the Group 3.4.1 Change in accounting policies, estimates and prior period error An entity shall change an accounting policy only if the change: • is required by an IFRS or • results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the financial position, financial performance or cash flows. In case of change in accounting policy it is assumed that the new policy had always been applied. The amount of the resulting adjustment is made to the equity. For comparability, the entity shall adjust the financial statements (comparative information) for the earliest prior period presented as if the new accounting policy had always been applied, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. Items of financial statements based on an estimate may need revision if changes occur in the circumstances on which the estimate was based or as a result of new information or more experience. The correction of a material prior period error is made to the equity. When preparing the financial statements it is assumed that the errors were corrected in the period when they occurred. Starting from 1 January 2014 the Group has applied hedge accounting in relation to commodity swaps on crude oil. The accounting principles were applied in accordance with the note 3.4.26.10 Hedge accounting. Consequently, the result of commodity swaps settlement is included in operating part of the statement of profit or loss and other comprehensive income, not financial part as previously. In accordance with IFRSs the change was applied prospectively. 3.4.2 Foreign currency A foreign currency transaction is recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At the end of the reporting period: • foreign currency monetary items including units of currency held by the Group as well as receivables and liabilities due in defined or definable units of currency are translated using the closing rate, i.e. spot exchange rate as at the end of the reporting period, • non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and • non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in the previous financial statements are recognized as financial income or expense in the period in which they arise in the net amount, except for monetary items hedging currency risk, that are accounted for in accordance with cash flows hedge accounting. 3.4.3 Principles of consolidation The consolidated financial statements of the Group include financial statements of a group in which assets, liabilities, equity, income, expenses and cash flows of the Parent Company (further Parent) and its subsidiaries and joint arrangements (jointly controlled entities) are presented as those of a single economic entity and are prepared as at the same reporting period as separate financial statements of the Parent and using uniform accounting principles in relation to similar transactions and other events in similar circumstances. 3.4.3.1 Investments in subsidiaries Subsidiaries are entities under the parent’s control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are consolidated using the full consolidation method. Non-controlling interests shall be presented in the consolidated statement of financial position within equity, separately from the equity of the owners of the Parent.

UNIPETROL, a.s. Annual report 2014 174 Consolidated financial statements (in millions of CZK) 3.4.3.2 Investments in joint arrangements (jointly controlled entities) A joint arrangement (jointly controlled entity) is a joint venture or a joint operation, in which the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. An arrangement can be a joint arrangement even though not all of its parties have joint control of the arrangement, for this reason it is distinguished between parties that have joint control of a joint arrangement (joint operators or joint ventures) and parties that participate in, but do not have joint control of, a joint arrangement. A joint arrangement is an arrangement of which two or more parties have joint control. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint venture requires the establishment of a legal person, partnership or other entity in which each venturer has participated. Such an entity operates on the same basis as other entities, except that the contractual arrangements between the operators of the arrangement establish joint control on the economic activity of the entity. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. 3.4.3.3 Investments in associates Investments in associates relate to entities over which investor has significant influence and that are neither controlled nor jointly controlled. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. If entity holds directly or indirectly (e.g. through subsidiaries), 20% or more of the voting power of the investee, it is presumed that the investor has significant influence, unless it can be clearly demonstrated that this is not the case. Conversely, if the investor holds, directly or indirectly (e.g. through subsidiaries), less than 20% of the voting power of the investee, it is presumed that the investor does not have significant influence, unless such influence can be clearly demonstrated. 3.4.3.4 Consolidation procedures Consolidated financial statements are prepared using line by line and joint operation accounts for related assets, liabilities, revenues and expenses. Entities, over which investor has significant influence are accounted for using equity method. In preparing consolidated financial statements using line by line method, an entity combines the financial statements of the Parent and its subsidiaries line by line by adding together like items of assets, liabilities, equity, income and expenses and then performs adequate consolidation procedures, including mainly: • the carrying amount at the day of acquisition of the parent›s investment in each subsidiary and the parent›s portion of equity of each subsidiary are eliminated; • non-controlling interests in the profit or loss of consolidated subsidiaries for the reporting period are identified; • non-controlling interests in the net assets of consolidated subsidiaries are identified and presented separately from the parent›s ownership interests in them; • intra group balances are eliminated; • unrealized profits or losses from intra group transactions are eliminated; • intra group revenues and expenses are eliminated; • intra group cash flow should be eliminated. A joint operator recognizes: • its assets, including its share of any assets held jointly; • its liabilities, including its share of any liabilities incurred jointly; • its revenue from the sale of its share of the output arising from the joint operation; • its share of the revenue from the sale of the output by the joint operation; and • its expenses, including its share of any expenses incurred jointly. A joint operator shall account for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. A joint venturer shall recognise its interest in a joint venture as an investment and shall account for that investment using the equity method.

UNIPETROL, a.s. Annual report 2014 175 Consolidated financial statements (in millions of CZK) Investments in associates are accounted for using the equity method, based on the financial data derived from the financial statements of those entities. Under the equity method, the investment in an associate or a joint venture is initially recognised at cost and the carrying amount is increased or decreased to recognise the investor‘s share of the profit or loss of the investee after the date of acquisition. The investor‘s share of the profit or loss of the investee is recognised in the investor‘s profit or loss as other operating activity. Distributions received from an investee reduce the carrying amount of the investment. Adjustments to the carrying amount may also be necessary for a change in the investor‘s proportionate interest in the investee arising from changes in the investee‘s other comprehensive income. Such changes include those arising from the revaluation of property, plant and equipment and from foreign exchange translation differences. The investor‘s share of those changes is recognised in other comprehensive income of the investor. 3.4.4 Business combinations An entity shall account for each business combination by applying the acquisition method. Applying the acquisition method requires: • identifying the acquirer, • determining the acquisition date, • recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree and • recognising and measuring goodwill or a gain from a bargain purchase. Assets, liabilities and contingent liabilities for the purpose of allocating the acquisition cost is determined in the fair value at the acquisition date with following exceptions: • deferred assets and liabilities arising from the assets acquired and liabilities assumed in a business combination are recognized according to general principles deferred tax, • assets and liabilities related to the acquiree’s employee benefit arrangements are recognized according to general principles of IAS 19 Employee benefits, • non-current assets (or disposal group) that is classified as held for sale at the acquisition date are recognized according to general principles for non-current assets held for sale. 3.4.5 Operating segments An operating segment is a component of the Group: • that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), • whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and • for which discrete financial information is available. The operating activities of the Group are divided into the following segments: • the downstream segment which includes integrated refining, petrochemical and energy production activities, • the retail segment which comprises trade in refinery products and secondary logistics, andcorporate functions, constitute as agreement position which include activities related to management and administration, support functions as well as remaining activities not allocated to separate operating segments. Segment revenues are revenues from sales to external customers and revenues from transactions with other operating segments, which are directly attributable to the segment. Segment expenses are expenses relating to sales to external customers and expenses relating to transactions with other operating segments, which result from the operating activities of a segment that are directly attributable to the segment and the relevant portion of the Group’s expenses that can be allocated on a reasonable basis to a segment. Segment expenses do not include: income tax expense, interest, including interest incurred on advances or loans from other segments, unless the segment’s operations are primarily of a financial nature, losses on sales of investments or losses on extinguishment of debt unless the segment’s operations are primarily of a financial nature, administrative expenses and other expenses arising at the level of the Group as a whole, unless they are directly attributable to the segment and can be allocated to the segment on a reasonable basis. The segment result is determined at the level of operating result.

UNIPETROL, a.s. Annual report 2014 176 Consolidated financial statements (in millions of CZK) Segment assets are those operating assets that are employed by that segment in operating activity and that are either directly attributable to the segment or can be allocated to the segment on a reasonable basis. In particular income tax items are not allocated to reportable segments. Sales prices used in transactions between segments are close to market prices. 3.4.6 Revenues Revenues from sales (from operating activity) comprise revenues that relate to core activity, i.e. activity for which the Group was founded, revenues are recurring and are not of incidental character. 3.4.6.1 Revenue from sales of finished goods, merchandise, materials and services Revenues from sale of finished goods, merchandise, materials and services are recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the sale transaction will flow to the Group and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenues from sale of finished goods, merchandise, raw materials and services are recognized when the Group has transferred to the buyer the significant risks and rewards of ownership of the goods and the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Revenues are measured at fair value of the consideration received or receivable decreased by the amount of any discounts, value added tax (VAT), excise tax and fuel charges. Revenues are measured at fair value of the received or due payments. Revenues realized on settlement of financial instruments hedging cash flows adjust revenues from sale of inventories and services. Revenues and expenses relating to services for which the start and end dates fall within different reporting periods are recognized based on the percentage of completion method, if the outcome of a transaction can be measured reliably, i.e. when total contract revenue can be measured reliably, it is probable that the economic benefits associated with the contract will flow to the Group and the stage of completion can be measured reliably. If those conditions are not met, revenues are recognized up to the cost incurred, but not greater than the cost which are expected to be recovered by the Group. 3.4.6.2 Revenue from licenses, royalties and trade marks Revenues from licences, royalties and trade mark arise from the use of entity’s assets by other business entities. Revenue from licenses, royalties and trade mark are recognized on an accrual basis in accordance with the substance of the relevant agreements. Prepayments, referring to agreements concluded in the current period by the Group are recognized as deferred income and settled in the periods when economic benefits are realized according to the agreements. 3.4.6.3 Franchise revenues Franchise revenues are recognized in accordance with the substance of the relevant agreement, in a way reflecting the reasons for charging with franchise fees. 3.4.6.4 Rental income Rental income from investment property is recognized in the statement of profit or loss and other comprehensive income on a straight-line basis over the term of the lease 3.4.7 Costs Costs (relating to operating activity) comprise costs that relate to core activity, i.e. activity for which the Group was founded, costs are recurring and are not of incidental character. Particularly costs that are connected to purchase of raw materials, their processing and distribution, that are fully under Group’s control. 3.4.7.1 Cost of sales Cost of sales comprises costs of finished goods, merchandise and raw materials sold, including services of support functions. 3.4.7.2 Distribution expenses Distribution expenses include selling brokerage expenses, trading expenses, advertising and promotion expenses as well as distribution expenses. 3.4.7.3 Administrative expenses Administrative expenses include expenses relating to management and administration of the Group as a whole.

UNIPETROL, a.s. Annual report 2014 177 Consolidated financial statements (in millions of CZK) 3.4.8 Other operating income and expenses Other operating income in particular includes income from liquidation and sale of non-financial non-current assets, surplus of assets, return of court fees, penalties earned, surplus of grants received to revenues over the value of costs, assets received free of charge, reversal of receivable impairment allowances and some provisions, compensations earned and revaluation gains, gain on sale of investment property. Other operating expenses include in particular loss on liquidation and sale of non-financial non-current assets, shortages of assets, court fees, contractual penalties and fines, penalties for non-compliance with environmental protection regulations, cash and tangible assets transferred free of charge, impairment allowances (except those that are recognized as financial costs and cost of sales), compensations paid, write-off of construction in progress which have not produced the desired economic effect, cost of recovery of receivables and revaluation losses, loss on sale of investment property. 3.4.9 Finance income and finance costs Finance income includes, in particular, income from the sale of shares and other securities, dividends received, interest earned on cash in bank accounts, term deposits and loans granted, increase in the value of financial assets and net foreign exchange gains. Dividend income from investments is recognized when the shareholders’ rights to receive payment have been established. Finance costs include, in particular, loss on sale of shares and securities and costs associated with such sale, impairment losses relating to financial assets such as shares, securities and interest, net foreign exchange losses, interest on own bonds and other securities issued, interest on finance lease, commissions on bank loans, borrowings, guarantees. 3.4.10 Income tax expense Income tax comprises current tax and deferred tax. Current tax is determined in accordance with the relevant tax law based on the taxable profit for a given period. Tax liabilities for current and prior periods represent the amounts payable at the reporting date. If the amount of the current income tax paid exceeds the amount due the excess is recognized as a receivable. Taxable profit differs from net profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rate valid as at the first date of the reporting period. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences, tax losses and tax relieves carried forward to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Taxable temporary differences are temporary differences that will result in increasing taxable amounts of future periods when the carrying amount of the asset or liability is recovered or settled. Taxable temporary differences arise when the carrying amount of an asset at the end of reporting period is higher than its tax base or when the carrying amount of a liability is lower than its tax base. Deductible temporary differences are temporary differences that will result in reducing taxable amounts of future periods when the carrying amount of the asset or liability is recovered or settled. Deductible temporary differences arise when the carrying amount of an asset is lower than its tax base or when the carrying amount of a liability is higher than its tax base. Deductible and taxable temporary differences may also arise in connection with items not recognized in the accounting records as assets or liabilities. Tax base is determined in relation to expected recovery of assets or settlement of liabilities. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are recognized regardless of when the timing difference is likely to be realized. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realized. Deferred tax is charged or credited in the statement of profit or loss and other comprehensive income. The deferred tax assets and liabilities are measured at the end of each reporting period using enacted tax rates binding for the year in which the tax obligation arises, based on tax rates published in tax law. Deferred tax assets and liabilities are not discounted.

UNIPETROL, a.s. Annual report 2014 178 Consolidated financial statements (in millions of CZK) Deferred tax assets and liabilities relating to transactions settled directly in equity are recognised in equity. Deferred tax assets and liabilities are accounted for as non-current assets or non-current liabilities. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group intends and is able to settle its current tax assets and liabilities on a net basis. 3.4.11 Earnings per share Basic earnings per share are calculated by dividing the net profit for a given period which is attributable to ordinary shareholders of the parent company by the weighted average number of shares outstanding during the period. Diluted earnings per share for each period are calculated by dividing the net profit for a given period adjusted by changes of the net profit resulting from conversion of the dilutive potential ordinary shares by the weighted average number of shares. Profit or loss attributable to ordinary shareholders of the Parent Company is increased by the after-tax amounts of dividends and interest for the period, attributable to the dilutive potential ordinary shares adjusted by all other changes of income and expense, which would result from the change of dilutive ordinary shares. The weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares bought back or issued during the period multiplied by a time-weighting factor. The time-weighting factor is the number of days that the shares are outstanding as a proportion of the total number of days in the period; a reasonable approximation of the weighted average is adequate in many circumstances. For the purpose of calculating diluted earnings per share, the number of ordinary shares shall be the weighted average number of ordinary shares, plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations. 3.4.12 Property, plant and equipment Property, plant and equipment are assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and are expected to be used during more than one period (one year or the operating cycle, if longer than one year). Property, plant and equipment include both fixed assets (assets that are in the condition necessary for them to be capable of operating in the manner intended by management) as well as construction in progress (assets that are in the course of construction or development necessary for them to be capable of operating in the manner intended by management). Property, plant and equipment are initially stated at cost, including grants related to assets. The cost of an item of property, plant and equipment comprises its purchase price, including any costs directly attributable to bringing the asset into use. The cost of an item of property, plant and equipment includes also estimated costs of dismantling and removing the item and restoring the site/land on which it is located, the obligation for which is connected with acquisition or construction of an item of property, plant and equipment and capitalized borrowing costs. Property, plant and equipment are stated in the statement of financial position prepared at the end of the reporting period at the carrying amount, including grants related to assets. The carrying amount is the amount at which an asset is initially recognised (cost) after deducting any accumulated depreciation and accumulated impairment losses. Depreciation of an item of property, plant and equipment begins when it is available for use that is from the month it is in the location and condition necessary for it to be capable of operating in the manner intended by the management, over the period reflecting their estimated useful life, considering the residual value. Components of property, plant and equipment which are material for the whole item are depreciated separately in accordance with their useful life. The following standard useful lives are used for property, plant and equipment: Buildings and constructions 10-40 years Machinery and equipment 4-35 years Vehicles and other 2-20 years

UNIPETROL, a.s. Annual report 2014 179 Consolidated financial statements (in millions of CZK) The residual value, estimated useful life and depreciation methods are reassessed annually, the adjustments to depreciation expenses are accounted for in next period (prospectively). The cost of significant repairs and regular maintenance programs is recognized as property, plant and equipment and depreciated in accordance with their useful lives. The costs of current maintenance of property, plant and equipment is recognized as an expense when is incurred. Property, plant and equipment are tested for impairment, when there are indicators or events that may imply that the carrying amount of those assets may not be recoverable. 3.4.13 Investment property Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment property shall be recognized as an asset when, and only when: • it is probable that the future economic benefits that are associated with the investment property will flow to the Group, and • the cost of the investment property can be measured reliably. An investment property shall be measured initially at its cost. Transaction costs shall be included in the initial measurement. The cost of a purchased investment property comprises its purchase price and any directly attributable expenditure. Directly attributable expenditure includes, for example, professional fees for legal services, property transfer taxes and other transaction costs. For internally constructed investment property the cost is set at the date of construction completion when the asset is brought into use, in accordance with rules set for property, plant and equipment. After initial recognition investment property shall be measured at fair value. Gains and losses resulting from changes in fair value of investment property are presented in the statement of profit or loss and other comprehensive income in the period which they arise. The Group determines fair value without any deduction for transaction costs it may incur on sale or other disposal. If the Group determines that the fair value of an investment property is not reliably determinable on a continuing basis, the Group shall measure that investment property at cost in accordance with rules set for property, plant and equipment. An investment property is derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected. 3.4.14 Intangible assets Intangible assets include identifiable non-monetary assets without physical substance. An asset is identifiable if it is either separable, i.e. is capable of being separated or divided from the Group and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the Group intends to do so, or arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the Group or from other rights and obligations. Intangible assets are recognized if it is probable that the expected future economic benefits that are attributable to the assets will flow to the Group and the cost of the asset can be measured reliably. An intangible asset arising from development (or from development phase of an internal project) shall be recognised if, and only if, the Group can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete the intangible asset and use or sell it, its ability to use or sell the intangible asset, how the intangible asset will generate probable future economic benefits, among other things, the Group can demonstrate the existence of a market for the output of the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset, the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, its ability to measure reliably the expenditure attributable to the intangible asset during its development. If the definition criteria of an intangible asset are not met, the cost incurred to acquire or self develop an asset are recognised in profit or loss when incurred. If an asset was acquired in a business combination it is part of a goodwill as at acquisition date. An intangible asset shall be measured initially at cost, including grants related to assets. An intangible asset that is acquired in a business combination, is recognised initially at fair value. After initial recognition, an intangible asset shall be presented in the financial statements in its net carrying amount, including grants related to assets. Intangible assets are measured at acquisition or at construction cost less amortization and impairment allowances.

UNIPETROL, a.s. Annual report 2014 180 Consolidated financial statements (in millions of CZK) Intangible assets with a finite useful life are amortized when it is available for use that is when it is in the location and condition necessary for it to be capable of operating in the manner intended by the management over their estimated useful life. The depreciable amount of an asset with a finite useful life is determined after deducting its residual value. Excluding particular cases, the residual value of an intangible asset with a finite useful life shall be assumed to be zero. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset, e.g. interest, commissions, are part of the initial cost. The following standard useful lives are used for intangible assets: Acquired licenses, patents, and similar intangible assets 2-15 years Acquired computer software 2-10 years Appropriateness of the applied amortization periods and rates is periodically reviewed, at least at the end of the reporting year, and potential adjustments to amortization allowances are made in the subsequent periods. Intangible assets with an indefinite useful life are not amortized. Their value is decreased by the eventual impairment allowances. Additionally, the useful life of an intangible asset that is not being amortized shall be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. 3.4.14.1 Goodwill Goodwill acquired in a business combination shall, from the acquisition date, be allocated to each of the acquirer‘s cash- generating units, (or groups of cash-generating units), that is expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groups of units. The acquirer shall recognise goodwill as of the acquisition date measured as the excess of a) over b) where: the value of a) corresponds to the aggregate of: • the consideration transferred, which generally requires acquisition-date fair value, • the amount of any non-controlling interest in the acquire, and • in a business combination achieved in stages, the acquisition-date fair value of the acquirer‘s previously held equity interest in the acquire; the value of b) corresponds to the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. Occasionally, an acquirer will make a bargain purchase, which is a business combination in which the amount at (b) above exceeds the aggregate of the amounts specified at (a) above. If that excess remains, after reassessment of correct identification of all acquired assets and liabilities, the acquirer shall recognise the resulting gain in profit or loss on the acquisition date as other operating profit for the period. The acquirer shall measure goodwill in the amount recognised at the acquisition date less any accumulated impairment allowances. A cash-generating unit to which goodwill has been allocated shall be tested for impairment annually, and whenever there is an indication that the unit may be impaired. The annual impairment test may be performed at any time during an annual period, provided the test is performed at the same time every year. A cash-generating unit to which no goodwill has been allocated shall be tested for impairment only when there are indicators that the cash-generating unit might be impaired. An impairment loss recognised for goodwill shall not be reversed in a subsequent period. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognised as of that date. During the measurement period, the acquirer shall also recognise additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as the acquirer receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date.

UNIPETROL, a.s. Annual report 2014 181 Consolidated financial statements (in millions of CZK) 3.4.14.2 Carbon dioxide emission allowances By the virtue of The Kyoto Protocol, the countries, which decided to ratify the Protocol, obliged themselves to reduce emissions of greenhouse gases, i.e. carbon dioxide (CO 2 ). In the European Union countries, the plants and companies, which reach productivity exceeding 20 MW and some other industrial plants were obliged to participate in emissions trading system. All mentioned entities are allowed to emit CO 2 in specified amount and are obliged to amortise those rights in the amount of the emissions of the given year. CO 2 emission rights are initially recognised as intangible assets, which are not amortised (assuming the high residual value), but tested for impairment. Granted emission allowances should be presented as separate items as intangible assets in correspondence with deferred income at fair value as at the date of registration (grant in scope of IAS 20). Purchased allowances should be presented as intangible assets at purchase price. If the allowances in a given year were not registered on the account under the date resulting from regulations, they should be presented as receivable at the reporting date in correspondence with deferred income (as separate items) in the fair value of allowances due at the reporting date. The receivable is settled at the moment of allowances registration in the subsequent period by the disclosure of intangible assets at fair value (allowances granted). Deferred income should also be revaluated. For the estimated CO 2 emission during the reporting period, a provision should be created in operating activity costs (taxes and charges). Grants should be recognised on a systematic basis to ensure proportionality with the related costs which the grants are intended to compensate. Consequently, the cost of recognition of the provision in the separate statement of profit or loss and other comprehensive income is compensated by a decrease of deferred income (grants) with taking into consideration the proportion of the estimated quantity of emission (accumulated) to the quantity of estimated annual emission. Granted/purchased CO 2 emission allowances are amortised against the book value of provision, at its settlement. Outgoing of allowances is recognised using FIFO method (First In, First Out) within the individual types of rights (EUA - European Union Allowances, ERU – Emission Reductions Units, CER – Certified Emission Reduction). 3.4.14.3 Borrowing costs Borrowing costs consist of interest and other costs that are incurred in connection with the borrowing of funds. The Group capitalizes borrowing costs attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Qualifying assets are the assets that necessarily take a substantial period of time to get ready for their intended use or sale. Borrowing costs which are not connected with qualifying assets are recognized in the statement of profit or loss and other comprehensive income in the period in which they are incurred. Borrowing costs are capitalized based on net investment expenditures which means assets in the process of construction not funded through the use of investment commitments, but using other sources of external financing. Borrowing costs may include: • interest expense calculated using the effective interest method as described in IAS 39 Financial Instruments: Recognition and Measurement, • finance charges in respect of finance leases recognised in accordance with IAS 17 Lease, and • exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Upper limit of the borrowing cost eligible for capitalization is the value of borrowing cost actually born by the entity. The commencement date for capitalization of the borrowing costs is the date when all of the following conditions are met: expenditures for the asset are incurred, borrowing costs are incurred and activities necessary to prepare the asset for its intended use or sale are undertaken. Capitalising of borrowing costs is ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Necessity to perform additional administrative or decoration works or some adaptation requested by the buyer or user are not the basis for the capitalization. After putting an asset into use, the capitalized borrowing costs are depreciated/amortized over the period reflecting useful life of the asset as part of the cost of the asset.

UNIPETROL, a.s. Annual report 2014 182 Consolidated financial statements (in millions of CZK) 3.4.15 Impairment of assets At the end of each reporting period Group assess whether there is any indication that an asset or cash generating unit (CGU) may be impaired. If any such indication exists, the entity shall estimate the recoverable amount of the asset (CGU). The recoverable amount of other assets is the higher of the fair value less costs to sell and value in use. Fair value less costs to sell is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, less costs to sell. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Assets that do not generate the independent cash flows are grouped on the lowest level on which cash flows, independent from cash flows from other assets, are generated (cash generating units). To the cash generating unit following assets are allocated: • goodwill, if it may be assumed, that the cash generating unit benefited from the synergies associated to a business combination with another entity, • corporate assets, if they may be allocated on a reasonable and coherent basis. If there are external or internal indicators that the carrying amount of an asset as at the end of the reporting period may not be recoverable, the impairment tests are carried out. The tests are carried out also annually for intangible assets with the indefinite useful life and for goodwill. When carrying amount of an asset or a cash generating unit exceeds its recoverable amount, the carrying amount is decreased to the recoverable amount by an adequate impairment allowance charged against cost in profit or loss. The recoverable amount is the higher of its fair value less costs to sell and its value in use. The impairment loss shall be allocated to the carrying amount of the assets of the unit in the following order: • first, to reduce the carrying amount of any goodwill allocated to the cash-generating unit; and • then, to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. At the end of each reporting period an assessment shall be made whether an impairment loss recognized in prior periods for an asset shall be partly or completely reversed. Indications of a potential decrease in an impairment loss mainly mirror the indications of a potential impairment loss in prior periods. A reversal of an impairment loss for an asset other than goodwill shall be recognised immediately in profit or loss, unless the asset is carried at revalued amount in accordance with another standard. 3.4.16 Inventories Inventories are assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services. Inventories comprise products, semi-finished products and work in progress, merchandise and materials. Finished goods, semi-finished products and work in progress are measured initially at production cost. Production costs include costs of materials and costs of conversion for the production period. Costs of production include also a systematic allocation of fixed and variable production overheads estimated for normal production level. The production costs do not include costs incurred as a consequence of low production or production losses, or general and administrative expenses that are not directly attributable to bringing the inventories to the condition and location at the moment of measurement, or storage costs of finished goods, semi-finished products and work in progress, unless these costs are necessary in the production process, or distribution expenses. Finished goods, semi-finished products and work in progress shall be measured at the end of the reporting period at the lower of cost and net realisable value, after deducting any impairment losses. Outgoings of finished goods, semi-finished products and work in progress is determined based on the weighted average cost formula, the cost of each item is determined from the weighted average of the cost of similar items produced during the reporting period. Merchandise and materials are measured initially at acquisition cost.

UNIPETROL, a.s. Annual report 2014 183 Consolidated financial statements (in millions of CZK) As at the end of the reporting period merchandise and raw materials are measured at the lower of cost and net realizable value, considering any allowances. Outgoings of merchandise and raw materials is determined based on the weighted average acquisition cost or production cost formula. Impairment tests for specific items of inventories are carried out on a current basis during an annual reporting period. Write-down to net realizable value concerns raw materials and merchandise that are damaged or obsolete. Raw materials held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. However, when a decline in the price of materials indicates that the cost of the finished products exceeds net realisable value, the materials are written down to net realisable value. Expenses and revenues connected with inventories write-offs or establishment and release of allowances are included in cost of sales. 3.4.17 Trade and other receivables Trade and other receivables are recognized initially at the fair value increased by transaction costs and subsequently at amortized cost using the effective interest method less impairment allowances. 3.4.18 Cash and cash equivalents Cash and cash equivalents consist of cash on hand and in a bank account, bank deposits and short-term highly liquid investments with original maturities of three months and less and which are subject to an insignificant risk of change in value. Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. 3.4.19 Non-current assets held for sale and discontinued operation Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Non-current assets are classified as held for sale when the following criteria are simultaneously met: • the sales were declared by the appropriate level of management; • the assets are available for an immediate sale in their present condition; • an active program to locate a buyer has been initiated; • the sale transaction is highly probable and can be settled within 12 months following the sale decision; • the selling price is reasonable in relation to its current fair value; • it is unlikely that significant changes to the sales plan of these assets will be introduced. The classification of asset into this category is made in the reporting period when the classification criteria are met. If the criteria for classification of a non-current asset as held for sale are met after the reporting period, an entity shall not classify a non-current asset as held for sale in those financial statements when issued. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with the Group’s accounting policies. Thereafter generally the assets (excluding financial assets) are measured at the lower of their carrying amount and fair value less cost to sell. Any impairment loss on a disposal group first is allocated to goodwill, and then to remaining assets and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, investment property, which continue to be measured in accordance with the Group’s accounting policies. While a non-current asset is classified as held for sale it shall not be depreciated (or amortised). A gain is recognised for any subsequent increase in fair value less costs to sell of an asset, but not in excess of the cumulative impairment loss that has been previously recognised. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and: • represents a separate major line of business or geographical area of operations, • is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or • is a subsidiary acquired exclusively with a view to resale.

UNIPETROL, a.s. Annual report 2014 184 Consolidated financial statements (in millions of CZK) The Group shall re-present the disclosures presented with refer to discontinued operation for prior periods presented in the consolidated financial statements so that the disclosures relate to all operations that have been discontinued by the end of the reporting period for the latest period presented. If the Group ceases to classify a discontinued operation, the results of operations previously presented in discontinued operations shall be reclassified and included in the results from continuing operations for all periods presented. The amounts for prior periods shall be described as having been re-presented. 3.4.20 Equity Equity is recorded in accounting books by type, in accordance with legal regulations and the parent company’s articles of association. Equity comprises: 3.4.20.1 Share capital The share capital is paid by shareholders and is stated at nominal value in accordance with the parent company’s articles of association and the entry in the Commercial Register. Declared but not paid share capital is presented as outstanding share capital contributions. The parent Company’s own shares and outstanding shares capital contributions decrease the equity. 3.4.20.2 Statutory reserves The Company established a reserve to cover possible future losses. Based on the articles of association of the parent company, the right to decide on disposing of the reserve fund in the extent in which it was created is vested within the powers of the Board of Directors; this shall not affect the right of the General Meeting to decide on the distribution of this reserve among the shareholders. 3.4.20.3 Hedging reserve Hedging reserve relates to valuation and settlement of hedging instruments that meet the criteria of cash flow hedge accounting. 3.4.20.4 Revaluation reserve Revaluation reserve comprises revaluation of items, which, according to the Group’s regulations, relates to the revaluation reserve, including particularly: change of the fair value of the available-for-sale financial assets; differences between the net book value and the fair value of the investment property at the date of reclassification from the property occupied by the Group to the investment property. 3.4.20.5 Foreign exchange differences on subsidiaries from consolidation Foreign exchange differences on subsidiaries from consolidation result mainly from translation of financial statements of subsidiaries into presentation currency of the Group. 3.4.20.6 Retained earnings Retained earnings include: • the amounts arising from profit distribution/loss cover, • the undistributed result for prior periods, • the current period profit/loss, • the effects (profit/loss) of prior period errors, • changes in accounting principles, • other reserve capital as additional payments to equity, • the actuarial gains and losses from retirement benefits. Non repayable additional payments to equity with non-confirmed repayment date are presented in equity of receiving entity with a corresponding entry as investment in shares of entity making the additional payments. Repayable additional payments to equity are presented in entity receiving payment as current or non-current liabilities based on the repayment date. Repayable additional payments to equity are presented as current or non-current receivables in entity transferring payment based on the repayment date i.e. up to 12 months as current and above 12 months as non-current, initially recognized at fair value.

UNIPETROL, a.s. Annual report 2014 185 Consolidated financial statements (in millions of CZK) 3.4.21 Liabilities Liabilities, including trade liabilities, are initially stated at fair value increased by transaction cost and subsequently amortized cost using the effective interest method. 3.4.22 Accruals Accruals are liabilities due for goods or services received/provided, but not paid, invoiced or formally agreed with the seller, together with amounts due to employees. Although it is sometimes necessary to estimate the amount or timing of accruals, the uncertainty is generally much lower than it is for provisions. 3.4.23 Provisions A provision is a liability of uncertain timing or amount. Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be measured reliably. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation the provision is reversed. The provision is used only for expenditures for which the provision was originally recognized. When the effect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. If the discounting method is applied, the increase of provisions with time is recognised as financial expenses. The Group establishes provisions for environmental damages, legal disputes, penalties, estimated expenditures related to the fulfilment of obligations as a result of warranty claims, CO2 emission allowances and jubilee bonuses and retirement benefits. No provisions are established in respect of environmental damages which occurred prior to establishment of the Group as the Czech government contractually committed to reimburse the Group for clean-up costs. Provisions are not recognised for the future operating losses. 3.4.23.1 Shield programs Shield programs provision (restructuring provision) is created when the Group started to implement the restructuring plan or announced the main features of the restructuring plan to those affected by it in a sufficiently specific manner to raise a valid expectation in them that the restructuring will be carried out. A restructuring provision shall include only the direct expenditures arising from the restructuring, i.e. connected with the termination of employment (paid leave payments and compensations), termination of lease contracts, dismantling of assets. 3.4.23.2 Environmental provision In accordance with the Group’s published environmental policy and applicable legal requirements, a provision for site restoration in respect of contaminated land is recognized when the land is contaminated. A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. 3.4.23.3 CO 2 emissions costs The Group creates provision for the estimated CO2 emission during the reporting period in operating activity costs (taxes and charges). 3.4.23.4 Jubilee bonuses and retirement benefits Retirement benefits and jubilee bonuses Under the Group’s remuneration plans, its employees are entitled to jubilee bonuses and retirement benefits. The jubilee bonuses are paid to employees after elapse of a defined number of years in service. The retirement benefits are paid once at retirement. The amount of retirement benefits and jubilee bonuses depends on the number of years of service and an employee’s average remuneration. The Group creates a provision for future retirement benefits and jubilee bonuses in order to allocate costs to relevant periods. The jubilee bonuses are other long-term employee benefits, whereas retirement and pension benefits are classified as retirement defined benefit plans.

UNIPETROL, a.s. Annual report 2014 186 Consolidated financial statements (in millions of CZK) The provision for jubilee bonuses, retirement and pension benefits is created in order to allocate costs to relevant periods. The present value of those liabilities is estimated at the end of each reporting period by an independent actuary and adjusted if there are any material indications impacting the value of the liabilities. The accumulated liabilities equal discounted future payments, considering the demographic and financial assumption including employee rotation, planned increase of remuneration and relate to the period ended at the last day of the reporting year. Actuarial gains and losses from: • post employment benefits are recognized in components of other comprehensive income, • other employment benefits, including jubilee bonuses, are recognized in the statement of profit and loss. 3.4.23.5 Business risk Business risk provision is created after consideration of all available information, including opinions of independent experts. If on the basis of such information it is more likely than not that a present obligation exists at the end of the reporting period, the Group recognises a provision (if the recognition criteria are met). If it is more likely that no present obligation exists at the end of the reporting period, the Group discloses a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote. 3.4.24 Government grants Government grants are transfers of resources to the Group by government, government agencies and similar bodies whether local, national or international in return for past or future compliance with certain conditions relating to the activities of the entity. Government grants are recognized in the statement of financial position as deferred income when there is reasonable assurance that it will be received and that the Group will comply with the conditions attached to it. Grants related to costs are presented as compensation to the given cost at the period they are incurred. The surplus of the received grant over the value of the given cost is presented as other operating income. If the government grants relates to assets, it is presented net with the related asset and is recognized in statement of profit or loss on a systematic basis over the useful life of the asset through the decreased depreciation charges, the treatment regarding Carbon dioxide emission allowances granted is described in note 3.4.14.2. 3.4.25 Consolidated statement of cash flows The consolidated statement of cash flows is prepared using indirect method. Cash and cash equivalents presented in the consolidated statement of cash flows include cash and cash equivalents less bank overdrafts, if they form an integral part of the Group’s cash management. Dividends received are presented in cash flows from investing activities. Dividends paid are presented in cash flows from financing activities. Interest received from finance leases, loans granted, short-term securities and cash pooling system are presented in cash flows from investing activities. Other interests received are presented in cash flows from operating activities. Interest paid and provisions on bank loans and borrowings received, cash pool facility, debt securities issued and finance leases are presented in cash flows from financing activities. Other interests paid are presented in cash flows from operating activities. 3.4.26 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 3.4.26.1 Recognition and derecognition in the consolidated statement of financial position The Group recognises a financial asset or a financial liability in its statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets is recognised by the Group as at trade date.

UNIPETROL, a.s. Annual report 2014 187 Consolidated financial statements (in millions of CZK) The Group derecognises a financial asset from the statement of financial position when and only when: • the contractual rights to the cash flows from the financial asset expire, or • it transfers the financial asset to another party. The Group derecognises a financial liability (or part of financial liability) from its statement of financial position when, and only when it is extinguished - that is when the obligation specified in the contract: • is discharged, or • is cancelled, or • expired. 3.4.26.2 Measurement of financial assets and liabilities When a financial asset or liability is recognised initially, the Group measures it at its fair value plus, in the case of a financial asset or a financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs comprise particularly fees and commissions paid to agents (including employees acting as selling agents), advisers, brokers and dealers, levies by regulatory agencies and security exchanges and transfer of taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative, holding costs or marketing costs. For the purpose of measuring a financial asset at the end of the reporting period or any other date after initial recognition, the Group classifies financial assets into the following four categories: • financial assets at fair value through profit or loss, • held-to-maturity investments, • loans and receivables, • available-for-sale financial assets. Regardless of characteristics and purpose of a purchase transaction, the Group classifies initially selected financial assets as financial assets at fair value through profit or loss, when doing so results in more relevant information. A financial asset at fair value through profit or loss is a financial asset that has been designated by the Group upon initial recognition as at fair value through profit or loss or classified as held for trading if it is: • acquired principally for the purpose of selling or repurchasing in the near term, or • part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit making, or • a derivative (except for a derivative that is an effective hedging instrument). Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Group has the positive intention and ability to hold to maturity. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. Available-for-sale financial assets are those non-derivative financial assets that are designated by the Group as available for sale or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss. 3.4.26.3 Measurement of financial assets at fair value The Group measures financial assets at fair value through profit or loss, including derivative financial assets and available- for-sale financial assets at their fair value, without any deduction for transaction costs that may be incurred on sale or other disposal. Fair value of financial assets is determined in compliance with fair value measurement principle. If the fair value of investments in equity instruments (shares) that do not have a quoted market price on an active market is not reliably measurable, the Group measures them at cost, that is the acquisition price less any accumulated impairment losses. Financial assets designated as hedging items are measured in accordance with the principles of hedge accounting. Againorlossonafinancialassetclassifiedasatfairvaluethroughprofitorlossarerecognisedinthestatementofprofitorloss.

UNIPETROL, a.s. Annual report 2014 188 Consolidated financial statements (in millions of CZK) A gain or loss on an available-for-sale financial asset are recognised in other comprehensive income, except for impairment losses and foreign exchange gains and losses that are recognised in profit or loss. In case of debt financial instruments interest calculated using the effective interest method is recognised in the statement of profit or loss. 3.4.26.4 Measurement of financial assets at amortized cost The Group measures loans and other receivables, including trade receivables, as well as held-to-maturity investments at amortized cost using the effective interest method. Effective interest is the rate which precisely discounts estimated future cash flows or payments made in expected periods until financial instrument expiration, and in grounded situations in shorter period, up to net book value of asset or financial liability. 3.4.26.5 Measurement of financial liabilities at fair value As at the end of the reporting period or other dates after the initial recognition the Group measures financial liabilities at fair value through profit or loss (including particularly derivatives which are not designated as hedging instruments). Regardless of characteristics and purpose of a purchase transaction, the Group classifies initially selected financial liabilities as financial liabilities at fair value through profit or loss, when doing so results in more relevant information. The fair value of incurred financial liability is measured in accordance with the principles of fair value measurement. 3.4.26.6 Measurement of financial liabilities at amortized cost Financial guarantee contracts, that are contracts that require the Group (issuer) to make specified payments to reimburse the holder for the loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument, not classified as financial liabilities at fair value through profit or loss are measured at the higher of: the amount determined in accordance with principles relating to valuation of provisions, or the amount initially recognised less, when appropriate, cumulative amortization. 3.4.26.7 Transfers The Group: • shall not reclassify a financial instrument out of fair value through profit or loss category, if at initial recognition it has been designated by the Group as measured at fair value through profit and loss, and • may, if a financial asset is no longer held for the purpose of selling or repurchasing it in the near term (notwithstanding that the financial asset may have been acquired or incurred principally for the purpose of selling or repurchasing it in the near term), reclassify that financial asset out of the fair value through profit or loss category in limited circumstances. In case of loans and receivables (if at initial recognition financial assets were not classified as held for trading) a financial asset can be reclassified from fair value through profit or loss category, if an entity has intention and possibility to hold a financial asset in a foreseeable future or to maturity. 3.4.26.8 Impairment of financial assets The Group assesses at the end of each reporting period whether there is any objective indicator that a financial asset or group of financial assets is impaired. If there is an objective indicator that an impairment loss on loans and receivables or held-to-maturity investments carried at amortized cost has been incurred, the amount of the loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. effective interest rate determined at initial recognition). If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and recognised in profit or loss as income. If there is an objective indicator that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, the amount of the impairment loss is measured as the difference between the carrying amount of the financial assets and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed. If there is an objective indicator that an impairment loss has been incurred on an available-for-sale financial asset, the cumulative loss that had been recognised in statement of comprehensive income is removed from equity and recognised in profit or loss.

UNIPETROL, a.s. Annual report 2014 189 Consolidated financial statements (in millions of CZK) Impairment losses for an investment in an equity instrument classified as available for sale are not reversed through profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, with the amount of the reversal recognised in the statement of profit or loss. 3.4.26.9 Embedded derivatives A derivative is a financial instrument or with all three of the following characteristics: • its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract, • it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors, and • it is settled at a future date. If the Group is a party of a hybrid (combined) instrument that includes embedded derivative, an embedded derivative shall be separated from the host contract and accounted for as a separate derivative in line with requirements for investments measured at fair values through profit or loss if, and only if the instrument meets all following requirements: • the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; • a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and • the combined (hybrid) instrument is not measured at fair value with changes in fair value recognised in the statement of profit or loss (i.e. a derivative that is embedded in a financial asset or financial liability at fair value through profit or loss is not separated). The Group assesses the need to separate an embedded derivative from the host contract and to present it as a derivative, when it becomes a party of a hybrid instrument for the first time. Reassessment is made only in case, when subsequent changes are introduced to the hybrid contract that substantially modify cash flows required by the contract. 3.4.26.10 Hedge accounting Derivatives designated as hedging instruments whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a hedged item are accounted for in accordance with fair value or cash flow hedge accounting, if all of the following conditions are met: • at the inception of the hedge there is formal designation and documentation of the hedging relationship and the Group‘s risk management objective and strategy for undertaking the hedge, • the hedge is expected to be highly effective in achieving offsetting changes in fair value or cash flows attributable to the hedged risk, consistently with the originally documented risk management strategy for that particular hedging relationship, • for cash flow hedges, a forecast transaction that is the subject of the hedge must be highly probable and must present an exposure to variations in cash flows that could ultimately impact profit or loss, • the effectiveness of the hedge can be reliably measured, • the hedge is assessed on an ongoing basis and determined actually to have been highly effective throughout the financial reporting periods for which the hedge was designated. • The Group does not apply hedge accounting in case when embedded derivative instrument is separated from the host contract. The Group assesses effectiveness at the inception of the hedge and later, at minimum, at each reporting date. The Group assesses hedge as effective, for external reporting purposes only if the actual results of the hedge are within a range of 80% - 125%. The Group uses statistical methods, in particular regression analysis, to assess effectiveness of the hedge. The Group uses simplified analytical methods, when a hedged item and a hedging instrument are of the same nature i.e. maturity dates, amounts, changes affecting fair value risk or cash flow changes.

UNIPETROL, a.s. Annual report 2014 190 Consolidated financial statements (in millions of CZK) Fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment, or an identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could impact profit or loss. A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates. If a fair value hedge is used, it is accounted for as follows: • the gain or loss from remeasuring the hedging instrument at fair value is recognised in profit or loss, and • the gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognised in profit or loss (this applies also if the hedged item is an available-for-sale financial asset, whose changes in value are recognised in other comprehensive income). The Group discontinues fair value hedge accounting if: • the hedging instrument expires, is sold, terminated or exercised (for this purpose, the replacement or rollover of a hedging instrument into another hedging instrument is not an expiration or termination if such replacement or rollover is part of the Group‘s documented hedging strategy), • the hedge no longer meets the criteria for hedge accounting, or • the Group revokes the designation. Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and could impact profit or loss. A forecast transaction is an uncommitted but anticipated future transaction. If a cash flow hedge is used, it is accounted for as follows: • the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income, and • the ineffective portion of the gain or loss on the hedging instrument is recognised in profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gains or losses that were recognised in other comprehensive income are reclassified to profit or loss in the same period or periods during which the asset acquired or liability assumed affect profit or loss. However, if the Group expects that all or a portion of a loss recognised in other comprehensive income will not be recovered in one or more future periods, it reclassifies to profit or loss the amount that is not expected to be recovered. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, or a forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the Group removes the associated gains and losses that were recognised in the other comprehensive income and includes them in the initial cost or other carrying amount of the asset or liability. If a hedge of a forecast transaction results in recognition of revenues from sales of finished goods, merchandise, materials and services the Group removes the associated gains and losses that were recognised in the other comprehensive income and adjusts these revenues. The Group discontinues cash flow hedge accounting if: • the hedging instrument expires, is sold, terminated or exercised - in this case, the cumulative gain or loss on the hedging instrument recognised in other comprehensive income remain separately recognised in equity until the forecast transaction occurs, • the hedge no longer meets the criteria for hedge accounting - in this case, the cumulative gain or loss on the hedging instrument recognised in other comprehensive income remain separately recognised in equity until the forecast transaction occurs, • the forecast transaction is no longer expected to occur, in which case any related cumulative gain or loss on the hedging instrument recognised in other comprehensive income are recognised in profit or loss, • the designation is revoked – in this case the cumulative gain or loss on the hedging instrument recognised in other comprehensive income remain separately recognised in equity until the forecast transaction occurs or is no longer expected to occur. Net investment in a foreign operation is the amount of the reporting entity’s interest in the net assets of that operation.

UNIPETROL, a.s. Annual report 2014 191 Consolidated financial statements (in millions of CZK) Hedges of a net investment in a foreign operation, including hedge of monetary item that is accounted for as a part of the net investment, shall be accounted for similarly to cash flow hedges: • the portion of the gain or loss on the hedging instrument that is determined to be effective hedge shall be recognised in other comprehensive income, and • the ineffective portion shall be recognised in profit or loss. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognised in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment on a disposal of the foreign operations. A hedge of a foreign currency risk of a firm commitment may be accounted for as a fair value hedge or cash flow hedge. 3.4.27 Fair value measurement At initial recognition, the transaction price of the acquired asset or liability incurred in exchange transaction for that asset or liability is the price paid to acquire the asset or received for the liability (an entry price).The fair value of asset or liability is the price that would be received to sell an asset or paid to transfer the liability (exit price). If the Group measures an asset or liability initially received to sell on at fair value and transaction price differs from fair value, the difference is recognized in profit or loss, unless the IFRS specifies otherwise. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs either: • on the principal market for the asset or liability or • in the absence of the principal market, in the most advantageous market for the asset or liability. In the absence of any directly observable input, i.e. the quoted prices (unadjusted) in active markets for identical assets or liabilities to which the Group can access at the measurement date, the fair value is determined on the basis of the adjusted directly observable inputs. The adjusted input include: • quoted prices for similar assets or liabilities in active markets; • quoted prices for identical or similar assets or liabilities in market that are not active; • input data other than quoted prices that are observable for the given asset or liability; • market-corroborated inputs. In the case, when the observable (directly or indirectly) inputs are not available, fair value is measured on the basis unobservable inputs of the developed by the Group using appropriate valuation techniques. A fair value measurement of non-financial asset takes into account market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The fair value of liability reflects the effect of non-performance risk. Non-performance risk includes, but may not be limited to, the entity’s own credit risk. When measuring fair value of the liability, the entity should take into account effect of its own credit risk (credit standing) and any other factors that might influence the likelihood that the obligation will not be fulfilled. The Group maximises the use of relevant observable inputs and minimize the use of unobservable inputs to meet the the objective of fair value measurement into account, which is to estimate the price at which an orderly transaction to transfer the liability or equity instrument would take place between market participants as at the measurement date under current market conditions. Assets and liabilities that are measured at fair value in the statement of financial position or are not measured at fair value, but information about them is disclosed, the Group classifies according to a hierarchy of fair value at the three levels of inputs, depending on the assessment of their availability: • level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities, that the entity can access as at the measurement date; • level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either indirectly or directly; • level 3 inputs are unobservable inputs for the asset or liability.

UNIPETROL, a.s. Annual report 2014 192 Consolidated financial statements (in millions of CZK) In the cases, when inputs used to measure the fair value of the asset or liability might be categorized within different levels of the fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of fair value hierarchy as its data input from the lowest level inputs that is significant to the entire measurement. 3.4.28 Lease A lease is an agreement whereby a lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Leases of property, plant and equipment where the Group has substantially transferred all the risks and rewards of ownership are classified as finance leases. Transfer of risks and rewards within the finance lease agreements includes i.e. the following situations: • the lease transfers ownership of the asset at or by the end of the lease term, • the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised, • the lease term is for the major part of the useful life of the asset even if title is not transferred, • at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset, • the leased assets are of such a specialised nature that only the lessee can use them without major modifications. If the Group uses an asset based on the finance lease, the asset is recognised as an item of property, plant and equipment or an intangible asset. The leased asset is measured at the lower of its fair value or the present value of the minimum lease payments that is the present (discounted) value of payments over the lease term that the lessee is or can be required to make. The present value of the minimum lease payments is recognised in the statement of financial position as financial liability with the division into short and long-term part. The minimum lease payments are discounted and apportioned between finance charge and the reduction of the outstanding liability using interest rate implicit in the lease, that is the discount rate that, at the inception of the lease, causes the aggregate present value of the minimum lease payments, the unguaranteed residual value to be equal to the sum of the fair value of the leased asset and the initial direct costs if this is impossible to determine, the lessee’s incremental borrowing rate, that is the rate, the lessee would have to pay on the similar lease agreement or – if that is not determinable, the rate that, at the inception of the lease, the lessee would incur to borrow over a similar term, with a similar security, the funds necessary to purchase the leased asset for the similar period of time and with similar guarantees. Depreciation methods for assets leased under the finance lease as well as methods of determining impairment losses in respect of assets leased under the finance lease are consistent with policies applied for the Group’s owned assets. If there is a reasonable uncertainty that the lessee will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of: the lease term or useful life. If the Group conveyed to another entity the right to use an asset under the finance lease, the present value of the minimum lease payments and unguaranteed residual value is recognised in the statement of financial position as receivables with the division into short and long-term part. The minimum lease payments and unguaranteed residual value are discounted using interest rate implicit in the lease. Assets used under the operating lease, that is under the agreement that does not transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee, are recognised as assets of the lessor. Lease payments from the operating lease are recognised by lessor as revenues from sales of products, while by lessee as costs in profit or loss. 3.4.29 Contingent assets and liabilities Contingent liabilities are defined as possible obligations that arise from past events and which are dependent on occurrence or non-occurrence of some uncertain future events not wholly within the control of the Group or present obligations that arise from past events but is not recognised because it is not probable that an outflow of resource embodying economic benefits will be required to settle the obligations or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognized in the statement of financial position however the information on contingent liabilities is disclosed unless the probability of outflow of resources relating to economic benefits is remote. Contingent liabilities acquired as the result of a business combination are recognized as provisions in the statement of financial position.

UNIPETROL, a .s . Annual report 2014 193 Consolidated financial statements (in millions of CZK) Contingent assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. Contingent assets are not recognized in the statement of financial position as it may lead to recognition of the income, which will never be gained; however the respective information on the contingent receivable is disclosed if the inflow of assets relating to economic benefits is probable the Group discloses respective information on the contingent asset in the additional information to financial statements and if practicable, estimates the influence on financial results, as according to accounting principles for valuation of provisions . Contingent assets are assessed continually to ensure that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits will arise, the asset and the related income are recognised in the financial statements of the period in which the change occurs. If an inflow of economic benefits has become probable, an entity discloses the contingent asset . 3.4.30 Subsequent events after the reporting date Subsequent events after the reporting date are those events, favourable and unfavourable that occur between end of the reporting period and date of when the financial statements are authorized for issue. Two types of subsequent events can be identified: • those, that provide evidence of conditions that existed as the end of the reporting period (events after the reporting period requiring adjustments) and . • those that are indicative of conditions that arose after the reporting period (events after the reporting period not requiring adjustments) . 4. Application of professional judgement and assumptions The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, equity, revenues and expenses . The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources . Actual results may differ from these estimates. In the matters of considerable weight, the Group’s management bases its estimates on opinions of independent experts . The estimates and underlying assumptions are reviewed on an ongoing basis . Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Judgments made by management in the application of IFRSs that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in notes: 5 The parent company and structure of the consolidated group 12 Tax credit / (expense), 13 Property, plant and equipment, 14 Investment property, 15 Intangible assets in relation to impairment and 19 Impairment of non-current assets. The accounting policies described above have been applied consistently to all periods presented in these consolidated financial statements.

UNIPETROL, a.s. Annual report 2014 194 Consolidated financial statements (in millions of CZK) 5. The parent company and structure of the consolidated group The following table shows subsidiaries and joint operations forming the consolidated group of UNIPETROL, a.s., and the parent company’s interest in the capital of subsidiaries and joint operations held either directly by the parent company or indirectly by the consolidated subsidiaries and allocation of subsidiaries into the Operating segments (information as of 31 December 2014). Name and place of business Ownership interest of the parent company in share capital Ownership interest in share capital through subsidiaries Operating segment Website Parent company     UNIPETROL, a.s. Na Pankráci 127, 140 00 Praha 4, Czech Republic Corporate functions www.unipetrol.cz Subsidiaries consolidated in full method BENZINA, s.r.o. Na Pankráci 127, 140 00 Praha 4, Czech Republic 100.00% -- Retail www.benzinaplus.cz PARAMO, a.s. Přerovská 560, 530 06 Pardubice, Czech Republic 100.00% -- Downstream www.paramo.cz UNIPETROL RPA, s.r.o. Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic 100.00% -- Downstream Corporate functions www.unipetrolrpa.cz Litvínov - Záluží 1, 436 70 Litvínov, Česká republika 100.00% -- Corporate functions www.unipetrolservices.cz UNIPETROL DOPRAVA, s.r.o. Litvínov - Růžodol č.p. 4, 436 70 Litvínov, Czech Republic 0.12% 99.88% Downstream www.unipetroldoprava.cz UNIPETROL Deutschland GmbH Paul Ehrlich Str. 1/B , 63225 Langen/Hessen, Germany 0.10% 99.90% Downstream www.unipetrol.de PETROTRANS, s.r.o. Střelničná 2221, 182 00 Praha 8, Czech Republic 0.63% 99,37% Retail www.petrotrans.cz UNIPETROL SLOVENSKO s.r.o. Panónská cesta 7, 850 00 Bratislava, Slovak Republic 13.04% 86.96% Downstream www.unipetrol.sk POLYMER INSTITUTE BRNO, spol. s r.o. Tkalcovská 36/2, 656 49 Brno, Czech Republic 1.00% 99.00% Downstream www.polymer.cz

UNIPETROL, a.s. Annual report 2014 195 Consolidated financial statements (in millions of CZK) Paramo Oil s.r.o. (nečinná společnost) Přerovská 560, 530 06 Pardubice, Czech Republic -- 100.00% Downstream   Výzkumný ústav anorganické chemie, a.s. Revoluční 84/č.p. 1521, Ústí nad Labem, Czech Republic 100.00% -- Downstream www.vuanch.cz UNIPETROL RAFINÉRIE, s.r.o. (nečinná společnost) Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic 100.00% -- Downstream   HC VERVA Litvínov, a.s. Litvínov, S.K. Neumanna 1598, Czech Republic -- 70.95% Corporate functions www.hokej-litvinov.cz CHEMOPETROL, a.s. (nečinná společnost) Litvínov - Záluží 1, 436 70 Litvínov, Czech Republic -- 100.00% Downstream   MOGUL SLOVAKIA s.r.o. Hradiště pod Vrátnom, U ihriska 300, Slovak republic -- 100.00% Downstream www.mogul.sk UNIPETROL AUSTRIA HmbH v likvidaci Vídeň, Apfelgasse 2, Austria 100.00% -- Downstream   Joint operations consolidated based on shares in assets and liabilities ČESKÁ RAFINÉRSKÁ, a.s. Záluží 2, 436 01 Litvínov, Czech Republic 67.56% -- Downstream www.ceskarafinerska.cz Butadien Kralupy a.s. O. Wichterleho 810, 278 01 Kralupy nad Vltavou, Czech Republic 51.00% -- Downstream   In comparison to prior period the allocation of subsidiaries into the operating segments was changed as described in note 6 Changes in disclosure of comparative period. The Group has 70,95% interest in HC VERVA LITVÍNOV, a.s., remaining non-controlling interest in this company is owned by municipality Litvínov. The ownership interests as at 31 December 2013 were the same as it is presented in the table above except for the changes described below.

UNIPETROL, a.s. Annual report 2014 196 Consolidated financial statements (in millions of CZK) Changes in structure of the Group Liquidation of UNIPETROL TRADE Group CHEMAPOL (SCHWEIZ) AG was put under liquidation on 1 June 2010 due to the restructuring process of UNIPETROL TRADE Group. The liquidation of CHEMAPOL (SCHWEIZ) AG was completed on 12 June 2013. The liquidation process of UNIPETROL AUSTRIA HmbH is ongoing. Acquisition of 16,335% stake in Česká rafinérská from Shell On 31 January 2014 UNIPETROL, a.s. (“Unipetrol”) completed the acquisition of 152 701 shares of ČESKÁ RAFINÉRSKÁ, a.s. (“Česká rafinérská”) amounting to 16,335% of the Česká rafinérská’s share capital from Shell Overseas Investments B.V. (“Shell”) following the conclusion of a share purchase agreement on 7 November 2013. The acquisition price for the shares in amount of USD 27,2 million was settled in cash. The transaction was an opportunistic acquisition fully in line with Unipetrol Group Strategy 2013-2017 announced in June 2013 and supporting its execution thanks to: increasing the security of petrochemical feedstock supplies, faster implementation of Operational Excellence initiatives and strengthening long-term presence on the Czech market. Based on the completion of the transaction Unipetrol’s stake on the Česká rafinérská’s share capital has increased from 51.22% to 67.555%. Unipetrol treats its investment in Česká rafinerská as joint operation in accordance with the principles of control and joint control set out in IFRSs. Contractual arrangements between the shareholders require unanimous consent of all shareholders in case of certain decisions of significant importance for the relevant activities of the entity. As a result of the settlement of the transaction Unipetrol recognized in the consolidated statement of profit or loss and other comprehensive income a gain on bargain purchase (a result of the excess of fair value of net assets purchased by Unipetrol over the price paid) in amount of CZK 1 186 milion. The result was calculated in line with the accounting principles described in note 3.4.4 Business combinations and 3.4.14.1 Goodwill in Group accounting principles and policies included in the consolidated financial statements of the Group as at and for the year ended 31 December 2014 based on the financial data of ČESKÁ RAFINÉRSKÁ, a.s. used for UNIPETROL Group consolidation purposes as at 31 January 2014. The recognition of the amount above was preceded by the verification of completeness and accuracy of the values of the identified assets and liabilities purchased as part of the transaction and determining the fair value of identified assets and liabilities. The fair value of identifiable assets and liabilities of ČESKÁ RAFINÉRSKÁ, a.s. as at the acquisition day:   Book value as at the acquisition day Adjustments to fair value Fair value Non-current assets 8,056 (117) 7,939 Current assets 7,095 1,225 8,320 Total assets 15,151 1,108 16,259 Non-current liabilities 80 - 80 Current liabilities 5,570 - 5,570 Total liabilities 5,650 - 5,650 Identifiable net assets at fair value 9,501 1,108 10,609 Share acquired     16.34% Share on identifiable net assets at fair value     1,733 Cash paid/outflows on acquisition of shares     (547) Gain on bargain purchase     1,186

UNIPETROL, a.s. Annual report 2014 197 Consolidated financial statements (in millions of CZK) Acquisition of 32,445% stake in Česká rafinérská from Eni On 3 July 2014 UNIPETROL, a.s. (“Unipetrol”) exercised its pre-emptive right and accepted the offer from Eni International B.V. (“Eni”), based on which Unipetrol will acquire from Eni 303 301 shares of ČESKÁ RAFINÉRSKÁ, a.s. (“Česká rafinérská”) amounting to 32,445% of the Česká rafinérská’s share capital (“Transaction”). The acquisition price for the shares in the amount of EUR 30 million, subject to additional adjustments before Transaction completion, will be financed from own financial sources of Unipetrol. Transaction is an opportunistic acquisition with the aim to gain full control over Česká rafinérská, be a sole decision-maker regarding capital investments, perform deeper restructuring of the company, further increase security of petrochemical feedstock supplies for continuation of Unipetrol’s petrochemical business development, as well as strengthen long-term presence of Unipetrol Group on the Czech market. On 19 December 2014, the Czech Competition Office (CCO) issued a merger clearance for UNIPETROL, a.s. to take over the 32.445% in ČESKÁ RAFINÉRSKÁ, a.s. from Eni International B.V. Since the merger clearance was granted without any commitments or objections, UNIPETROL, a.s. did not appeal the CCO decision. SČS - Unie nezávislých petrolejářů, z.s. (UNIE) appealed the CCO merger clearence decision on 5 January 2015; UNIE claims that its right to appeal is stemming from a judgment of Regional Court in Prague in Litvínovská uhelná, a.s. case. UNIPETROL, a.s. claims that UNIE had no right to appeal the merger clearence decision and therefore, their filing of 5 January 2015 does not form an appeal capable of delaying the merger clearence decision coming into force. The matter is now pending with the Chairman of CCO for review and decision. UNIPETROL, a.s. is requesting the Chairman to reject the UNIE filing of 5 January 2015. Unipetrol currently treats its investment in Česká rafinerská as joint operation. After obtaining relevant merger clearances and completion of the Transaction, Unipetrol, would obtain control over Česká rafinérská and would adopt full method of consolidation. As at the date of authorizing these consolidated financial statements for publication the impact of the Transaction on the consolidated financial statements is not known. It will be recognized in the consolidated financial statements of Unipetrol at the date on which Unipetrol will obtain control over Česká rafinérská (the acquisition date) and will depend on the fair value of the identifiable assets and liabilities on that day. The impact will be calculated based on the accounting principles described in notes 3.4.4 Business combinations and 3.4.14.1 Goodwill in Group accounting principles and policies. 6. Changes in disclosure of comparative period During the year 2014 the Group implemented changes in management of operating activities in order to improve their effectiveness and integration. The organizational structure was adjusted by implementation of changes in competences of the particular Management Board members. As a result presentation of the Group’s operating segments was updated including merger of refining and petrochemical segment into integrated operating segment: Downstream. As a consequence, the segments’ comparative data were adjusted for the year 2013 as well as at 31 December 2013. Detailed information is presented in note 7.

UNIPETROL, a.s. Annual report 2014 198 Consolidated financial statements (in millions of CZK) Notes to operating segments 7. Operating segments 7.1 Revenues and financial result by operating segments 2014 Note Downstream segment Retail Segment Corporate Functions Adjustments Total Total external revenues 8 112,947 11,190 92 -  124,229 Transactions with other segments   9,651 251 568 (10,470) - Total segment revenue   122,598 11,441 660 (10,470) 124,229 Operating expenses   (120,200) (11,085) (792) 10,470 (121 607) Other operating income  10.1 1 584 31 30 - 1 645 Other operating expenses  10.2 (5,192) (65) (7) - (5 264) Segment operating profit/(loss) (1,210) 322 (109) - (997) Net finance costs  11         (365) Loss before tax           (1,362) Tax credit  12         806 Net loss           (556)               Depreciation and amortisation  13, 15 (1,863) (323) (84) - (2,270)               EBITDA*   653 645 (25) - 1,273               Additions to non-current assets  13, 14, 15 1,773 187 47 - 2,007 Explanatory notes to the consolidated financial statements

UNIPETROL, a.s. Annual report 2014 199 Consolidated financial statements (in millions of CZK) 2013 Note Downstream segment Retail segment Corporate Functions Adjustments Total Total external revenues 8 88,881 10,453 81 - 99,415 Transactions with other segments   9,131 213 550 (9,894) - Total segment revenue   98,012 10,666 631 (9,894) 99,415 Operating expenses   (98,889) (10,485) (787) 9,894 (100,267) Other operating income  10.1 137 31 20 - 188 Other operating expenses  10.2 (194) (27) (8) - (229) Segment operating profit/(loss)   (934) 185 (144) - (893) Net finance costs  11         (450) Loss before tax           (1,343) Tax expense  12         (53) Net loss           (1,396)               Depreciation and amortisation  13,15 (2,004) (329) (82) - (2,415)               EBITDA*   1,070 514 (62) - 1,522               Additions to non-current assets  13,14,15 2,175 157 72 - 2,404 * Operating profit before tax, depreciation and amortisation

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 200 Consolidated financial statements (in millions of CZK) 7.2 Impact of new segment division on revenues and financial result presented in previous year 2013 Downstream segment Refining Segment Petrochemical Segment Retail Segment Corporate Functions Adjust- ments Total Total external revenues 88,881 (52,848) (36,033) - - - - Transactions with other segments 9,131 (22,487) (1,893) - - 15,249 - Total segment revenue 98,012 (75,335) (37,926) - - 15,249 - Operating expenses (98,889) 77,124 37,014 - - (15,249) - Other operating income 137 (77) (60) - - - - Other operating expenses (194) 29 165 - - - - Segment operating profit/(loss) (934) 1,741 (807) - - - - Net finance income (costs)             - Loss before tax             - Tax expense             - Net loss             - Changes in segment division are described in note 6 .

UNIPETROL, a.s. Annual report 2014 201 Consolidated financial statements (in millions of CZK) 7.3 Other segment data 7.3.1 Assets by operating segment     31/12/2014 31/12/2013 Downstream Segment   38,138 42,357 Retail Segment   5,835 6,021 Segment assets   43,973 48,378 Corporate Functions   5,355 2,551 Adjustments   (811) (930)     48,517 49,999 7.3.2 Impact of new segment division on assets allocation in segments presented in previous year     31/12/2013 published   impact of change in segment division 31/12/2013 after change in segment divison Refining Segment   20,074   (20,074) - Petrochemical Segment   22,547   (22,547) - Downstream   -   42,357 42,357 Retail Segment   6,021   - 6,021 Segment assets   48,642   (264) 48,378 Corporate Functions   2,550   1 2,551 Adjustments   (1,193)   263 (930)     49,999   - 49,999 Changes in segment division are described in note 6. 7.3.3 Recognition and reversal of impairment allowances   Recognition Reversal   31/12/2014 31/12/2013 31/12/2014 31/12/2013 Downstream Segment (5,851) (450) 271 329 Retail Segment (61) (20) 17 6 Impairment allowances by segments (5,912) (470) 288 335 Corporate Functions (1) (1) 22 - Impairment allowances in operating activi- ties (5,913) (471) 310 335   (5,913) (471) 310 335

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 202 Consolidated financial statements (in millions of CZK) including Impairment allowances of property, plant, equipment and intangible assets:   Recognition Reversal   2014 2013 2014 2013 Downstream Segment (4,986) (85) 45 21 Retail Segment (58) (18) 16 4 Impairment allowances by segments (5,044) (103) 61 25   (5,044) (103) 61 25 The impairment allowances of assets by segment include items recognized in the consolidated statement of profit or loss and other comprehensive income i.e.: receivables allowances, inventories allowances, non-current assets impairment allowances. Other impairment allowances recognitions and reversals were recorded in relation to CO2 allowances and petrol stations, inventory, overdue receivables, uncollectible receivables or receivables in court . 7.3.4 Geographical information   Revenues Non-current assets   2014 2013 31/12/2014 31/12/2013 Czech Republic 83,405 68,774 21,094 25,341 Germany 13,555 10,097 1 1 Poland 2,624 1,574 - - Slovakia 10,721 10,191 9 10 Other countries 13,924 8,779 - -   124,229 99,415 21,104 25,352 No other country than Czech Republic, Germany and Slovakia accounted for more than 10% of consolidated revenues. No other country than the Czech Republic accounted more than 10% of consolidated assets. Revenues are based on the country in which the customer is located. Total non-current assets are based on location of the assets and consist of property, plant and equipment, intangible assets and investment property .

UNIPETROL, a.s. Annual report 2014 203 Consolidated financial statements (in millions of CZK) 7.4 Revenues from major products and services The following is an analysis of the Group’s external revenues from its major products and services:     2014 2013 Downstream Segment   112,947 88,881 Diesel   37,588 27,629 Gasoline   17,366 12,569 JET   2,808 1,353 LPG   1,936 1,533 Fuel OILS   1,710 1,521 Bitumen   3,281 2,416 Lubricants   1,156 1,057 Other refinery products   2,576 2,606 Ethylene   4,727 4,145 Benzene   5,969 4,664 Propylene   1,304 852 Urea   - 34 Ammonia   2,040 1,860 C4 fraction   1,545 1,381 Butadiene   1,350 1,224 Polyethylene (HDPE)   10,301 8,646 Polypropylene   9,136 7,103 Other petrochemical products   2,859 2,557 Others   517 697 Services   4,778 5,034 Retail Segment   11,190 10,453 Refinery products   10,849 10,186 Services   341 267 Corporate Functions   92 81     124,229 99,415 7.5 Information about major customer Revenues from none of the operating segments’ individual customers represented 10% or more of the Group’s total revenues.

UNIPETROL, a.s. Annual report 2014 204 Consolidated financial statements (in millions of CZK) 8. Revenues     2014   2013 Sales of finished goods   112,562 86,332 Sales of services   5,210   5,381 Revenues from sales of finished goods and services, net   117,772   91,713 Sales of merchandise   5,598   6,658 Sales of raw materials   859 1,044 Čisté výnosy z prodeje zboží a materiálu   6,457   7,702     124,229   99,415 9. Operating expenses 9.1 Cost of sales     2014   2013 Cost of finished goods and services sold   (112,057) (89,761) Cost of merchandise and raw materials sold   (6,186)   (7,351)     (118,243)   (97,112) 9.2 Cost by nature     2014   2013 Materials and energy   (100,984)   (80,502) Cost of merchandise and raw materials sold   (6,186)   (7,351) External services   (7,911)   (7,374) Employee benefits   (2,500)   (2,433) Depreciation and amortisation   (2,270)   (2,415) Taxes and charges   (433)   (351) Other   (5,629)   (537)     (125,913) (100,963) Change in inventories   (958)   467 Operating expenses   (126,871) (100,496) Distribution expenses   2,090   1,963 Administrative expenses   1,274   1,192 Other operating expenses   5,264   229 Cost of sales   (118,243)   (97,112) Notes to statement of profit or loss and other comprehensive income

UNIPETROL, a.s. Annual report 2014 205 Consolidated financial statements (in millions of CZK) 9.3 Employee benefits costs     2014   2013 Payroll expenses   (1,801)   (1,734) Future benefits expenses   (7)   (30) Social security expenses   (582)   (555) Other employee benefits expenses   (110)   (114)     (2,500)   (2,433) 2014   Employees Key Management Audit Committee Board of Directors Supervisory Board Total Wages and salaries   (1,632) (157) (1) (3) (8) (1,801) Social and health insurance (545) (34)  - (1) (2) (582) Social expense   (96) (14)   -   -   -  (110) Change of employee benefits provision (7)   -  -   -   -  (7)     (2,280) (205) (1) (4) (10) (2,500) Number of employees average per year* 3,624 50         3,674 Number of employees as at balance sheet day*   3,622 49         3,671 * In case of joint operations the relevant share is used. 2013   Employees Key Management Audit Committee Board of Directors Supervisory Board Total Wages and salaries   (1,565) (159) (1) (3) (6) (1,734) Social and health insurance (515) (37) - (1)   (2) (555) Social expense   (96) (18) - - - (114) Change of employee benefits provision (30) - - - - (30)     (2,206) (214) (1) (4) (8) (2,433) Number of employees average per year* 3,567 62         3,629 Number of employees as at balance sheet day*   3,582 65         3,647 * In case of joint operations the relevant share is used.

UNIPETROL, a.s. Annual report 2014 206 Consolidated financial statements (in millions of CZK) 10. Other operating income and expenses 10.1 Other operating income     2014   2013 Profit on sale of non-current non-financial asets   38   19 Reversal of provisions   13   26 Reversal of receivables impairment allowances   23   5 Reversal of impairment allowances of property, plant and equip- ment and intangible assets   61   25 Penalties and compensations earned   104   46 Gain on bargain purchase   1,186   - Other   220   67     1,645   188 The line „gain on bargain purchase” relates to the settlement of ČESKÁ RAFINÉRSKÁ, a.s. shares acquisition - additional information is presented in note 5. In 2014 in the line „Other” the revaluation of receivables from the CO 2 grant is included in amount of CZK 95 million and CO 2 provision update in amount of CZK 41 million. There was neither revaluation of receivables from the CO 2 grant nor CO 2 provision update booked in 2013. 10.2 Other operating expenses     2014   2013 Loss on sale of non-current non-financial assets   (15)   (25) Recognition of provisions   (59)   (58) Recognition of receivables impairment allowances   (27)   (12) Recognition of impairment allowances of property, plant and equipment and intangible assets (5,044)   (103) Donations   (3)   (5) Other   (116)   (26)     (5,264)   (229) V In the line „Other” the CO 2 provision update is included in amount of CZK 78 milion and CZK 1 million in 2014 and 2013 respectively.

UNIPETROL, a.s. Annual report 2014 207 Consolidated financial statements (in millions of CZK) 11. Finance income and finance costs 11.1 Finance income     2014   2013 Interest   48   41 Settlement and valuation of financial instruments   1,223   1,033 Other   1   2     1,272   1,076 11.2 Finance costs     2014   2013 Interest   (116)   (247) Net foreign exchange loss   (825)   (267) Settlement and valuation of financial instruments   (653)   (974) Other   (43)   (38)     (1,637)   (1,526) 12. Tax credit / (expense)     2014   2013 Income tax credit / (expense) in the statement of profit or loss         Current income tax   (112)   (123) Deferred income tax   918   70     806   (53) Income tax credit / (expense) in other comprehensive income         Tax on effective portion of changes in fair value of cash flow hedges   (171)   42 Tax on actuarial gains or losses   2   -     (169)   42     637   (11) Domestic income tax is calculated in accordance with Czech tax regulations at the rate of 19% in 2014 (2013: 19%) of the estimated taxable income for the year. The deferred tax has been calculated using tax rate approved for years 2015 and forward i.e. 19%. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

UNIPETROL, a.s. Annual report 2014 208 Consolidated financial statements (in millions of CZK) 12.1 The differences between income tax expense recognized in profit or loss and the amount calculated based on profit before tax Reconciliation of effective tax rate     2014   2013 Loss for the year   (556)   (1,396) Total income tax credit (expense)   806   (53) Loss before tax   (1,362)   (1,343)             Income tax using domestic income tax rate   259     255 Effect of tax rates in foreign jurisdictions   7     10 Non-deductible expenses   (6)     (33) Tax exempt income   -      13 Recognition of previously unrecognized deferred tax asset related to tax losses   367     -  Change in not recognized deferred tax assets   (40)     (293) Under (over) provided in prior periods   (1)     (5) Gain on bargain purchase     225     - Other differences   (5)     - Total income tax credit (expense)   806     (53) Effective tax rate   (59.18%)     (3.94%) Line “Recognition of previously unrecognized deferred tax asset related to tax losses” includes impact of deferred tax assets from tax losses previously unrecognized in prior periods recognized in 2014 due to probability of utilisationí. 12.2 Deferred tax assets and liabilites Deferred income taxes result from future tax benefits and costs related to the differences between the tax basis of assets and liabilities and the amounts reported in the financial statements. The deferred income taxes have been calculated using the tax rate expected to apply to periods when the respective asset is realized or liability is settled (i.e. 19% in 2014 and onward).

UNIPETROL, a.s. Annual report 2014 209 Consolidated financial statements (in millions of CZK) The movement in deferred tax assets and liabilities (prior to offsetting of balances within the same tax jurisdiction) recognized by the Group during the year is as follows:     31/12/2013 Deferred tax recognized in statement of Profit or loss Deferred tax recognized in Other comprehensive income Transfers Changes in Group structure 31/12/2014 Deferred tax assets             Property, plant and equipment 119 767 - - 54 940 Provisions 197 (27) 2 - - 172 Unused tax losses carried forward 912 (178) - - - 734 Financial instruments valuation 45 - (171) 126 - - Inventory - 139 - - - 139 Other 256 (138) - - - 118     1,529 563 (169) 126 54 2,103 Deferred tax liabilities             Property, plant and equip- ment (1,030) (79) - - - (1,109) Inventory (297) 279 - - - (18) Provisions (26) 26 - - - - Finance lease (66) 52 - - - (14) Derivative instruments - - - (126) - (126) Other (77) 77 - - - -   (1,496) 355 - (126) - (1,267)     33 918 (169) - 54 836 The above positions of deferred tax assets and liabilities are netted of on the level of particular financial statements of the Group´s companies for presentation purposes in the consolidated financial statement of UNIPETROL.  As at 31 December 2014 deferred tax assets and liabilities amounted to CZK 1 039 million (CZK 259 million at 31 December 2013) and CZK 203 million (CZK 226 million at 31 December 2013). Deferred income tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same tax authority. Deferred income tax assets are recognized for tax loss and deductible temporary differences carried forward to the extent that realization of the related tax benefit through the future taxable profit is probable based on financial projections for years 2015 - 2019. In the calculation of deferred tax assets as at 31 December 2014 the Group has not recognized unused tax losses in amount of CZK 1,571 million due to the unpredictability of future taxable income (CZK 3 156 million at 31 December 2013). These unrecognised tax losses will expire till end of 2019.

UNIPETROL, a.s. Annual report 2014 210 Consolidated financial statements (in millions of CZK) 13. Property, plant and equipment     31/12/2014   31/12/2013 Land   820   810 Buildings and constructions   9,056   10,486 Machinery and equipment   7,656   10,186 Vehicles and other   582   814 Construction in progress   779   881     18,893   23,177 Changes in Property, plant and equipment by class   Land Buildings and constructions Machinery and equipment Vehicles and other Construction in progress Total Gross book value           1 January 2014 1,160 24,699 42,435 2,942 1,130 72,366 Investment expenditures -  24 84 106 1,652 1,866 Other increases -  -  1 -  -  1 Reclassifications 11 346 1,125 65 (1,550) (3) Sale -  (15) (11) (175) -  (201) Liquidation -  (5) (340) (51) -  (396) Change in Group structure -  1,207 3,358 85 50 4,700 Other decreases -  -  (57) (4) -  (61) 31 December 2014 1,171 26,256 46,595 2,968 1,282 78,272 Accumulated depreciation, impairment allowances and settled government grants 1 January 2014 350 14,186 32,228 2,126 103 48,993 Depreciation -  474 1 455 204 2,133 Other increases -  -  1 -  -  1 Impairment allowances 1 2,182 3,501 232 249 6,165 Sale -  (4) (11) (166) -  (181) Liquidation -  (5) (337) (47) -  (389) Change in Group structure -  307 1,930 38 -  2,275 Other decreases -  -  (16) (4) -  (20) Government grants - settlement -  -  18 1 -  19 31 December 2014 351 17,140 38,769 2,384 352 58,996 Notes to statement of financial position

UNIPETROL, a.s. Annual report 2014 211 Consolidated financial statements (in millions of CZK) Gross book value 1 January 2013 1,161 24,460 41,119 3,016 874 70,630 Investment expenditures - 41 139 54 1,822 2,056 Other increases - 31 - - - 31 Reclassifications 1 176 1,628 63 (1,560) 308 Sale (2) - (5) (96) - (103) Liquidation - (10) (408) (92) - (510) Other decreases - - (38) (4) (6) (48) Foreign exchange differences - 1 - 1 - 2 31 December 2013 1,160 24,699 42,435 2,942 1,130 72,366 Accumulated depreciation, impairment allowances and settled government grants 1 January 2013 350 13,670 30,993 2,030 152 47,195 Depreciation - 477 1,554 251 - 2 282 Other increases - 31 - - - 31 Impairment allowances - 27 103 (1) (49) 80 Reclassifications - (14) (14) 8 - (20) Sale - - (4) (88) - (92) Liquidation - (7) (395) (73) - (475) Other decreases - - (13) (3) - (16) Government grants - settlement - 1 4 1 - 6 Foreign exchange differences - 1 - 1 - 2 31 December 2013 350 14,186 32,228 2,126 103 48,993 Government grants 1 January 2014 - 27 21 2 146 196 31 December 2014   60 170 2 151 383 1 January 2013 - 26 17 - 32 75 31 December 2013 - 27 21 2 146 196 Net book value 1 January 2014 810 10,486 10,186 814 881 23,177 31 December 2014 820 9,056 7,656 582 779 18,893 1 January 2013 811 10,764 10,109 986 690 23,360 31 December 2013 810 10,486 10,186 814 881 23,177

UNIPETROL, a.s. Annual report 2014 212 Consolidated financial statements (in millions of CZK) According to IAS 23 the Group capitalizes those borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, as part of the cost of that asset. Borrowing costs capitalized in the year ended 31 December 2014 amounted to less than CZK million (31 December 2013: CZK million). In 2013 the Group reclassified spare parts with expected useful lives longer than 1 year in amount of CZK 329 million from Inventories to Machinery and equipment. 13.1 Changes in impairment allowances of Property, plant and equipment   Land Buildings and constructions Machinery and equipment Vehicles and other Construction in progress Total 1 January 2014 350 3,761 4,460 72 103 8,746 Recognition 1 1,670 2,630 232 404 4,937 Reversal -  (33) (23) -  -  (56) Reclassifications -  45 121 -  (167) (1) Change in Group structure -  508 784 1 12 1,305 Other decreases -  (8) (11) (1) -  (20)   351 5,943 7,961 304 352 14,911 increase/(decrease) net 1 2 182 3 501 232 249 6,165 1 January 2013 350 3,734 4,357 73 152 8,666 Recognition - 30 70 3 - 103 Reversal - (13) (11) (1) - (25) Reclassifications - 10 47 - (43) 14 Other decreases - - (3) (3) (6) (12)   350 3,761 4,460 72 103 8,746 increase/(decrease) net - 27 103 (1) (49) 80 Detailed information regarding impairment recognized in 2014 is presented in note 19. The Group reviews useful lives of property, plant and equipment and introduces adjustments to depreciation charge prospectively according to its accounting policy. Should the depreciation policy from the previous year be applied, the depreciation expense for 2014 would be higher by CZK80 million. 13.2 Other information regarding Property, plant and equipment     31/12/2014   31/12/2013 The gross book value of all fully depreciated property, plant and equipment still in use 9,970   12,198 The net book value of temporarily idle property, plant and equipment 16   17 The net book value of leased non-current assets   276   324

UNIPETROL, a.s. Annual report 2014 213 Consolidated financial statements (in millions of CZK) The Group obtained in 1994 a government grant from the German Ministry for Environmental Protection and Safety of Reactors in amount of CZK 260  million. This environmental project targeted at limiting cross-border pollution, in connection with the reconstruction of the T-700 power station and its desulphurization. The carrying amount of the asset financed from the grant was CZK 35 million as at 31 December 2014 (31 December 2013: CZK 39 million). The Group obtained a support grant from the European Regional Development Fund (ERDF) and the Czech national budget for the new research and education centre UniCRE construction for CZK 592 million. The resources provided will be used mainly for restoration of research laboratories, conference and education areas and the purchase of modern equipment and laboratory equipment. The carrying amount of the asset financed from the grant was CZK 295 million (in 2013: CZK 146 million). 14. Investment property Investment property at 31 December 2014 comprised the land and buildings owned by the Group and leased to third parties. The changes recorded during the year 2014 are presented in the following table:     2014   2013 At the beginning of the year   427   423 Reclassification to Property, plant, equipment   (3)   (3) Transfer from Property, plant, equipment   -   17 Fair value measurement   (5)   (10) increase   15   - decrease   (20)   (10)     419   427 Rental income amounted to CZK 46 million in 2014 (2013: CZK 51 million). Operating costs related to the investment property amounted to CZK 6 million in 2014 (2013: CZK 11 million). Information concerning valuation of investment property is included in notes 3.4.13 and 32. 15. Intangible assets     31/12/2014   31/12/2013 Internally generated intangible assets   50   29 Assets under development   29   29 Other Internally generated intangible assets   21   - Other intangible assets   1,742   1,719 Software   107   143 Licences, patents and trade marks   710   779 Goodwill   -   - Assets under development   346   342 CO 2 emission allowance   520   366 Other intangible assets   59   89     1,792   1,748

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 214 Consolidated financial statements (in millions of CZK) 15.1 Changes in Internally generated intangible assets In the year 2014, the Group recognized internally generated intangible assets in the amount of CZK 30 million, which include development studies (2013: CZK 29 million) .   Assets under development Other intangible assets Total Gross book value     1 January 2014 29 - 29 Investment expenditures 30 - 30 Reclassifications (31) 31 - Change in Group structure 1 - 1 31 December 2014 29 31 60 Accumulated amortisation, impairment allowances and settled government grants 1 January 2014 - - - Amortization - 6 6 Impairment allowances - 4 4 31 December 2014 - 10 10 Gross book value 1 January 2013 - - - Investment expenditures 29 - 29 31 December 2013 29 - 29 Net book value 1 January 2014 29 - 29 31 December 2014 29 21 50 1 January 2013 - - - 31 December 2013 29 - 29

UNIPETROL, a.s. Annual report 2014 215 Consolidated financial statements (in millions of CZK) 15.2 Changes in impairment allowances of Internally generated intangible assets Assets under development Other intangible assets Total 1 January 2014 - - - Recognition 4 - 4 Reclassifications (4) 4 -   - 4 4 increase/(decrease) net - 4 4 15.3 Changes in Other intangible assets   Software Licences, patents and trade marks Goodwill Assets under development CO 2 emission allowance Other intangible assets Total Gross book value             1 January 2014 1,095 2,076 52 349 523 488 4,583 Investment expenditures - - - 96 2 - 98 Other increases - - - - 724 - 724 Reclassifications 66 9 - (75) - 5 5 Sale (1) - - - - - (1) Liquidation (22) (59) - - - (35) (116) Change in Group structure 150 68 - 8 1 4 231 Other decreases - - (1) - (709) - (710) 31 December 2014 1,288 2,094 51 378 541 462 4,814 Accumulated amortisation, impairment allowances and settled government grants 1 January 2014 951 1,297 52 7 157 399 2,863 Amortization 49 66 - - - 16 131 Impairment allowances 53 17 (1) 24 (136) 22 (21) Sale (1) - - - - - (1) Liquidation (22) (59) - - - (35) (116) Change in Group structure 134 63 - - - 3 198 31 December 2014 1,164 1,384 51 31 21 403 3,054

UNIPETROL, a.s. Annual report 2014 216 Consolidated financial statements (in millions of CZK) Gross book value 1 January 2013 1,011 2,081 52 79 1,181 507 4,911 Investment expenditures - - - 319 4 - 323 Other increases 35 - - - - - 35 Reclassifications 51 - - (48) - (1) 2 Liquidation (2) (5) - - - (18) (25) Other decreases - - - (1) (662) - (663) 31 December 2013 1,095 2,076 52 349 523 488 4,583 Accumulated amortisation, impairment allowances and settled government grants 1 January 2013 872 1,232 52 13 322 397 2,888 Amortization 44 70 - - - 19 133 Other increases 35 - - - - - 35 Impairment allowances 2 - - (6) (165) 1 (168) Liquidation (2) (5) - - - (18) (25) 31 December 2013 951 1,297 52 7 157 399 2,863 Government grants 1 January 2014 1 - - - - - 1 31 December 2014 17 - - 1 - - 18 1 January 2013 - - - - - - - 31 December 2013 1 - - - - - 1 Net book value 1 January 2014 143 779 - 342 366 89 1,719 31 December 2014 107 710 - 346 520 59 1,742 1 January 2013 139 849 - 66 859 110 2,023 31 December 2013 143 779 - 342 366 89 1,719

UNIPETROL, a.s. Annual report 2014 217 Consolidated financial statements (in millions of CZK) 15.4 Changes in impairment allowances of Other intangible assets   Software Licences, patents and trade marks Goodwill Assets under development CO 2 emission allowance Other intangible assets Total 1 January 2014 34 199 52 7 157 22 471 Recognition 37 5 - 35 - 26 103 Reversal - - - - - (5) (5) Usage - - - - (136) - (136) Reclassifications 7 8 - (14) - - 1 Change in Group structure 9 4 - 3 - 1 17 Other decreases - - (1) - - - (1)   87 216 51 31 21 44 450 increase/(decrease) net 53 17 (1) 24 (136) 22 (21) 1 January 2013 32 199 52 13 322 21 639 Usage - - - - (165) - (165) Reclassifications 2 - - (6) - 1 (3)   34 199 52 7 157 22 471 increase/(decrease) net 2 - - (6) (165) 1 (168) Recognition and reversal of impairment allowances for intangible assets are recognized in other operating activities. Detailed information regarding impairment recognized in 2014 is presented in note 19. Other information regarding Other intangible assets     31/12/2014   31/12/2013 The gross book value of all fully depreciated intangible assets still in use   1,748   1,688 The net book value of intangible assets with indefinite useful life   10   13 The increase of assets under development in 2014 includes new PE3 licence – project in amount of CZK 31 million. Other intangible assets include development costs with a carrying amount of CZK 79 million as of 31 December 2014 (31 December 2013: CZK 88 million). The Group reviews useful lives of intangible assets and introduces an adjustment to amortization charge prospectively according to its accounting policy. Should the amortization rates from the previous year be applied, amortization expense for 2014 would be higher by CZK 11 million.

UNIPETROL, a.s. Annual report 2014 218 Consolidated financial statements (in millions of CZK) 15.5 CO 2 emission allowances Based on Czech National Allocation Scheme for the years 2013-2020 the Group was to obtain CO 2 allowances free of charge. During the year ended 31 December 2014 the Group obtained CO 2 allowances in amount of 4 054 356 tons. As at 31 December 2013 the Group did not obtain any CO 2 allowances on its account and recognized the receivable for estimated amount of CO 2 . In February 2014 the Group obtained allowances for carbon dioxide emissions for the year 2013 in amount of 1 918 086 tons which is in line with previous estimates based on which the receivable was created.   2014   Value Quantity (in tonnes) Emission allowance at 1 January 366 2,268,921 Emission allowances granted for the year 724 4,054,356 Settled emission allowances for previous periods (709) (3,631,199) Purchased/(Sold) emission allowances 2 194,883 Change in Group structure 1 6,299 Decrease in CO 2 impairment allowances 136  - Emission allowances at 31 December 520 2,893,260 Estimated annual consumption 707 3,777,898 As at 31 December 2014 the market value of one EUA allowance (European Union Emission Allowance) amounted to EUR 7,24 (as at 31 December 2013: 4,84 EUR). The emission allowances acquired and sold by the Group are included in the statement of consolidated cash flows respectively under investing activities in Acquisition of property, plant and equipment and intangible assets and Proceeds from disposals of property, plant and equipment and intangible assets respectively. 16. Joint operations   Place of business Ownership interest of the parent company in share capital Principal activities Method of consolidation ČESKÁ RAFINÉRSKÁ, a.s. Czech Republic 67.56% Refining of crude oil and production, distribution of petroleum based products Share in assets and liabilities Butadien Kralupy a.s. Czech Republic 51.00% Production of butadiene Share in assets and liabilities The Group in accordance with IFRS 11 classified ČESKÁ RAFINÉRSKÁ, a.s. and Butadien Kralupy a.s. as joint operations. Detail information is described in note 3.4.3.2. 17. Financial assets available for sale   31/12/2014 31/12/2013 Unquoted shares     Orlen Holding Malta LTD 1 1   1 1 The Group had equity investments of CZK 0,5 million as at 31 December 2014 (31 December 2014: CZK 0,5 million) which represent ownership interests in companies that do not have a quoted market price and whose fair value cannot be reliably measured and therefore are carried at acquisition cost less any impairment losses.

UNIPETROL, a .s . Annual report 2014 219 Consolidated financial statements (in millions of CZK) 18. Other non-current assets     31/12/2014   31/12/2013 Loans granted   6   6 Other long term receivables   20   44 Financial assets   26   50 Prepayments   3   3 Non-financial assets   3   3     29   53 19. Impairment of non-current assets As at 30 June 2014 due to existence of indicators triggering impairment testing both of an internal and external character (deterioration of external refinery environment, performance of refinery activities below forecasted level in 2013 and in the first half of 2014, surplus of refinery production capacities and increased supply of products, updated macroeconomic assumptions for all Cash Generating Units (CGUs)) tests were carried out for all identified CGUs based on updated financial projections for the years 2014-2017. As at 31 December 2014 the Unipetrol Group has not identified any new impairment indicators. Based on performed analysis impairment allowance of CZK 4,989 million was recognized during the year 2014 in relation to non- current assets of refining CGU. Impairment charges of CZK 4,882 million were allocated to plant, property and equipment, and CZK 107 million to intangible assets and these were recorded in other operating costs . The impairment charges recognized in refinery CGU related to non-current assets of the following entities: ČESKÁ RAFINÉRSKÁ, a.s., PARAMO, a.s., UNIPETROL RPA, s.r.o. in amounts: CZK 4,911 million, CZK 51 million, CZK 27 million respectively. During development of assumptions to impairment tests the possibility of estimation of the fair value and value in use of individual assets was considered . Lack of number of market transactions for similar assets to those held by the Group which would allow to reliably estimate their fair value makes this method of valuation not possible to implement . As a result, it was concluded that the best estimate of the actual values of individual assets of the Group will be its value in use . In the UNIPETROL group CGUs are established at the level of operating activities . The recoverable amounts of CGUs were estimated based on their value in use. The analyses were performed based on available projections for the years 2014-2017 adjusted to exclude the impact of capital expenditures enhancing the assets’ performance . The anticipated fixed annual growth rate of cash flows after 2017 year period is assumed at the level of the long term inflation rate for Czech Republic. For determining the value in use as at given balance sheet date forecasted cash flows are discounted using the discount rates after taxation reflecting the risk levels specific for particular sectors to which the CGU belongs. The Group’s future financial performance is based on a number of factors and assumptions in respect of macroeconomics development, such as foreign exchange rates, commodity prices, interest rates, partially outside the Group’s control . The change of these factors and assumptions might influence the Group’s financial position, including the results of the impairment test of non- current assets, and consequently might lead to changes in the financial position and performance of the Group.

UNIPETROL, a.s. Annual report 2014 220 Consolidated financial statements (in millions of CZK) Impact of the impairment allowances of non-current assets on consolidated statement of profit or loss and other comprehensive income for the year 2014   Recognition  Reversal   Total Land (1) -   (1) Buildings and constructions (1,670) 33   (1,637) Machinery and equipment (2,630) 23   (2,607) Vehicles and other (232) -   (232) Construction in progress (404) -   (404) Software (37) -   (37) Licences, patents and trade marks (5) -   (5) Goodwill -  -   - Assets under development (45) -   (45) CO 2 emission allowance -  -   - Other intangible assets (26) 5   (21)   (5,050) 61   (4,989) Information about recognitions and reversals of impairment allowances for each category of non-current non-financial assets is presented in notes 13 and 15. The discount rate is calculated as the weighted average cost of capital. The sources of macroeconomic indicators necessary to determine the discount rate were the publications of prof. Aswath Damodoran (source: http://pages.stern.nyu.edu) of officially listed government bonds and agencies rating available at 30 June 2014 and 31 December 2014. The structure of the discount rates applied in the testing for impairment of assets of individual CGUs as at 30 June 2014   Refining CGU Petrochemical CGU Retail CGU cost of equity 10.72% 9.10% 9.28% cost of debt after tax 2.58% 2.58% 2.58% capital structure 66.39% 86.69% 57.40% Nominal discount rate 7.99% 8.23% 6.43% Long term inflation rate 1.96% 1.96% 1.96% Cost of equity is determined by the profitability of the government bonds that are considered to be risk-free, with the level of market and operating segment risk premium (beta). Cost of debt includes the average level of credit margins and expected market value of money for Czech Republic. The period of analysis was established on the basis of remaining useful life of the essential assets for the particular CGU.

UNIPETROL, a.s. Annual report 2014 221 Consolidated financial statements (in millions of CZK) Periods of analysis adopted for the analysis of the individual CGUs as at 30 June 2014   2014 Refining CGU 25 Petrochemical CGU 16 Retail CGU   15 Sensitivity analysis of the value in use as at 30 June 2014 The crucial elements influencing the value in use of assets within individual units responsible for generating cash flows are: operating profit plus depreciation and amortization (known as EBITDA) and the discount rate. The effects of impairment sensitivity in relation to changes in these factors are presented below. Discount rate in CZK million EBITDA Change -5% 0% 5% -0.5 p.p. increase of impairment 191 decrease of impairment 1,439 decrease of impairment 2,125 -0.0 p.p. increase of impairment 918 - decrease of impairment 2,125 +0.5 p.p. increase of impairment 1,820 increase of impairment 76 decrease of impairment 1,469 * Decrease in forecasted EBIDTA and increase in discount rate would result in impairment allowance in the petrochemical and retail CGUs. 20. Inventories     31/12/2014   31/12/2013 Raw materials   4,382   3,971 Work in progress   1,049   1,567 Finished goods   3,548   3,942 Merchandise   367   296 Spare parts   974   929 Inventories, net   10,320   10,705 Impairment allowances of inventories to net realisable value   957   386 Inventories, gross   11,277   11,091

UNIPETROL, a.s. Annual report 2014 222 Consolidated financial statements (in millions of CZK) Change in impairment allowances to net realizable value     2014   2013 At the beginning of the year   386   506 Recognition   842   356 Usage   (95)   (171) Reversal   (226)   (305) Change in the Group structure   50   -     957   386 Changes in the net realizable value allowances for inventories amount to CZK 617 million and are included in cost of sales (CZK 51 million in 2013) presented in note 9. 21. Trade and other receivables     31/12/2014   31/12/2013 Trade receivables   11,951   11,364 Receivables CO 2 rights   -   255 Other   18   231 Financial assets   11,969   11,850 Excise tax and fuel charge receivables   401   360 Other taxation, duty, social security receivables   24   24 Prepayments and deffered costs   112   159 Non-financial assets   537   543 Receivables, net   12,506   12,393 Receivables impairment allowance   623   637 Receivables, gross   13,129   13,030 Trade receivables result primarily from sales of finished goods and sales of merchandise. The management considers that the carrying amount of trade receivables approximates their fair value. The average credit period on sales of goods is 34 days. No interest is charged on the trade receivables for the first 4 days after the due date. Thereafter, interest is based on terms agreed in the selling contracts. The Group exposure to credit and currency risk related to trade and other receivables is disclosed in note 31.5 and detailed information about receivables from related parties is presented in note.

UNIPETROL, a.s. Annual report 2014 223 Consolidated financial statements (in millions of CZK) Movement in the impairment loss allowance     2014   2013 At the beginning of the year   637   648 Recognition   27   12 Change in the Group structure 8 - Reversal   (23)   (5) Usage   (44)   (25) Other 5 - Foreign exchange differences   13   7     623     637 The Group sets impairment charges based on analysis of customers’ creditworthiness and ageing of receivables. In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the debtor from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the management considers that there is no further credit risk allowance required in excess of the allowance for impairment charges. Increases and reversals of impairment allowances in respect of principal amount of trade and other receivables are included in other operating expense or income and in respect of interest for delayed payments in finance costs or income. 22. Other financial assets     31/12/2014   31/12/2013 Cash flow hedge instruments         foreign currency forwards   15   11 commodity swaps     872     - Derivatives not designated as hedge accounting         foreign currency forwards   23   - commodity swaps   165   18 Loans granted   6   7 Cash pool   36   13 Receivables from settled financial derivatives   647   -     1,764   49 Information regarding cash flow hedge instruments and derivatives not designed as hedge accounting is presented in note 31.3. The Group provided short-term loans to related entities and to operators of fuel stations. The carrying amount of the loans amounted CZK 6 million as at 31 December 2014 (31 December 2013: CZK 7 million). The interest rates are variable and are based on appropriate inter-bank rates and the fair value of the loans can be approximated by its carrying amount as at 31 December 2014.

UNIPETROL, a.s. Annual report 2014 224 Consolidated financial statements (in millions of CZK) 23. Cash and cash equivalents     31/12/2014   31/12/2013 Cash on hand and in bank   1,682   1,117     1,682   1,117 24. Shareholders’ equity 24.1 Share capital The issued capital of the Company as at 31 December 2014 amounted to CZK 18,133 million (2013: CZK 18 133 million). This represents 181 334 764 (2013: 181 334 764) bearer ordinary shares, each with a nominal value of CZK 100. All issued shares have been fully paid and bear equal voting rights. The Company’s shares are listed on the Prague stock exchange. 24.2 Statutory reserves The Company established a reserve fund for possible future losses. The balance of the Statutory reserve fund as at 31 December 2014 amounted to CZK 2 703 million (31 December 2013: CZK 2 643 million). 24.3 Hedging reserve The amount of the hedging reserve of CZK 538 million as at 31 December 2014 resulted from the valuation of derivatives meeting the requirements of cash flow hedge accounting (31 December 2013: CZK (190) million). 24.4 Revaluation reserve Revaluation reserve comprises the difference between the net book value and fair value of the property as at the date of reclassification of the property occupied by the Group and recognised as an investment property. 24.5 Foreign exchange differences on subsidiaries from consolidation The amount of reserve is adjusted by foreign exchange differences resulting from translation of the financial statements of foreign entities belonging to the Group from foreign currencies into CZK. The balance of this reserve as at 31 December 2014 amounted to CZK 18 million (31 December 2013: CZK 18 million). 24.6 Retained earnings In accordance with appropriate Czech law, dividends can be paid from unconsolidated profit of the parent company. The Annual General Meeting of UNIPETROL, a.s. held on 26 May 2014 decided, pursuant to Article 12 (2) (v) of the Articles of Association of UNIPETROL, a.s., on transfer of the Company’s profit generated on non-consolidated basis in 2013 in amount of CZK 938 million. 24.7 Capital management policy Capital management is performed on the Group level in order to protect the Group’s ability to continue its operations as a going concern while maximizing returns for shareholders. The Group monitors equity debt ratio (net financial leverage). As at 31 December 2014 and 31 December 2013 Group´s financial leverage amounted to 9,49% and 5,02%, respectively. Net financial leverage = net debt / equity (calculated using the average balance  for the period) x 100% Net debt = long-term loans and borrowings + short-term loans and borrowings + cash pool liabilities - cash and cash equivalents

UNIPETROL, a.s. Annual report 2014 225 Consolidated financial statements (in millions of CZK) 24.8 Earnings per share Basic earnings per share     2014   2013 Loss for the year attributable to equity owners (556)   (1,396) Weighted average number of shares   181,334,764   181,334,764 Earnings per share (in CZK per share)   (3.07)   (7.70) Diluted earnings per share Diluted earnings per share are the same as basic earnings per share. 25. Loans and borrowings     Long-term Short-term   Total     31/12/2014 31/12/2013 31/12/2014 31/12/2013   31/12/2014 31/12/2013 Bank loans - - 327 505   327 505 Borrowings 4,000 2,000 23 2   4,023 2,002     4,000 2,000 350 507   4,350 2,507 Loan granted by PKN Orlen S.A. On 12 December 2013 the Group signed a mid-term loan agreement with its majority shareholder PKN ORLEN S.A. Based on the Agreement, the Group received a mid-term loan in the amount of CZK 4 000 million. The loan has been divided into two tranches of CZK 2 billion each. First tranche was received in December 2013 and second tranche in January 2014. The loan had a 3-year maturity, i.e. each tranche 36 months from its reception. Interests are paid semi-annually and are based on 6 months PRIBOR plus fixed margin. Pricing is in line with currently prevailing market conditions for 3-year loans provided in CZK. Analyses of bank loans - by currency (translated into CZK)     31/12/2014   31/12/2013 CZK   327   443 EUR   -   43 USD   -   19     327   505

UNIPETROL, a.s. Annual report 2014 226 Consolidated financial statements (in millions of CZK) - by interest rate     31/12/2014   31/12/2013 PRIBOR   327   443 EURIBOR   -   43 LIBOR   -   19     327   505 Short-term bank loans are subject to variable interests and their carrying amounts approximate fair values. Average effective interest rate as at 31 December 2014 was 0,76% (31 December 2013: 0,73%). Disclosures resulting from IFRS 7 relating to loans and borrowings are included in note 31 and are presented togerther with other financial instruments. 26. Provisions   Long-term Short-term   Total     31/12/2014 31/12/2013 31/12/2014 31/12/2013   31/12/2014 31/12/2013 Environmental provision 350 340 - -   350 340 Jubilee bonuses and retirement benefits provision 71 57 5 -   76 57 Provisions for legal disputes 7 7 19 15   26 22 Provision for CO 2 emission - - 707 514   707 514 Other provision 29 29 51 12   80 41   457 433 782 541   1,239 974 Change in provisions in 2014   Environ- mental provision Jubilee bonuses and retirement benefits provision Provisions for legal disputes Shield programs provision Provision for CO 2 emission Other provision Total 1 January 2014 340 57 22 - 514 41 974 Recognition 4 18 4 1 775 51 853 Discounting 7 - - - - - 7 Utilization of provision (1) (3) - - (562) (2) (568) Release of provision - - - (1) (41) (12) (54) Change in the Group structure - 4 - - 21 2 27 350 76 26 - 707 80 1,239

UNIPETROL, a .s . Annual report 2014 227 Consolidated financial statements (in millions of CZK) Change in provisions in 2013   Environmen- tal provision Jubilee bonuses and retirement benefits provision Provisions for legal disputes Shield programs provision Provision for CO 2 emission Other provision Total 1 January 2013 333 25 14 3 496 27 898 Recognition 4 36 15 9 515 30 609 Discounting 8 - - - - - 8 Utilization of provi- sion (1) - (2) (3) (497) (8) (511) Release of provision (4) (4) (6) (9) - (6) (29) Foreign exchange differences - - 1 - - (2) (1)   340 57 22 - 514 41 974 26.1 Environmental provision Under environmental provision the Group had the provision for land restoration created as a result of the legal obligation to restore the fly-ash dump after it is discontinued, which is expected to happen after 2043. The provision amounted to CZK 335 million as at 31 December 2014 (31 December 2013: CZK 328 million). Additionally the Group had provision for compensation of damages to Lesy Česká republika in amount CZK 15 million included as at 31 December 2014 (31 December 2013: CZK 12 million) . 26.2 Provisions for jubilee bonuses and retirement benefits The companies of the Group realize the program of paying out retirement benefits and jubilee bonuses in line with remuneration policies in force. The jubilee bonuses are paid to employees after elapse of a defined number of years in service. The retirement benefits are paid as one-time payments at retirement. The amount of retirement benefits as well as jubilee bonuses depends on the number of years of service . The base for the calculation of provision for an employee is expected benefit which the Group is obliged to pay in accordance with internal regulation. The present value of these obligations is estimated at the end of each reporting year and adjusted if there are any material indications impacting the value of the obligations . The accrued liabilities equal discounted future payments, considering employee rotation . Employment benefit provisions for retirement and anniversary benefits received by employees were created using discount rate in the range 0.62% - 2.6% p.a. in 2014 (2013: 0.59% - 2.9%), assumptions used were based on Collective agreement. Should the prior year’s assumptions be used, the provision for the jubilee bonuses and retirement benefits would be lower by CZK 11 million .

UNIPETROL, a.s. Annual report 2014 228 Consolidated financial statements (in millions of CZK) Change in employee benefits 2014     Provision for jubilee bonuses Retirement benefits   Total 3 54   57 1 January 2014 1 5   6 Current service cost - 1   1 Interest expense - 12   12 Actuarial gains and losses net - 12   12 financial assumptions - 3   3 Change in Group structure (1) (2)   (3) Payments under program   3 73   76 Change in employee benefits 2013     Provision for jubilee bonuses Retirement benefits   Total 1 January 2013 1 24   25 Current service cost - 2   2 Interest expense - 1   1 Actuarial gains and losses net - 2   2 financial assumptions - 2   2 Past employment costs 2 25   27     3 54   57 Division of retirement liability by employees     Active employees Pensioners Total     31/12/2014 31/12/2013 31/12/2014 31/12/2013   31/12/2014 31/12/2013 Czech Republic 76 57 - -   76 57               76 57

UNIPETROL, a.s. Annual report 2014 229 Consolidated financial statements (in millions of CZK) Geographical division of retirement liability     Provision for jubilee bonuses Retirement benefits Total     31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 Czech Republic 3 3 73 54 76 57             76 57 Sensitivity analysis of actuarial assumptions     Czech Republic Actuarial assumptions   Assumed variations as at 31/12/2014 Influence on provision for jubilee bonuses 2014 Influence on retirement benefits 2014 Demographic assumptions (+) 0.5 p.p. - (3) staff turnover rates, disability and early retirement 0.5 p.p. - (3) Financial assumptions (+) 0.5 p.p. - (3) discount rate 0.5 p.p. - (3)   - (6) Demographic assumptions (-) -0.5 p.p. - 3 staff turnover rates, disability and early retirement -0.5 p.p. - 3 Financial assumptions (-) -0.5 p.p. - 3 discount rate -0.5 p.p. - 3   - 6

UNIPETROL, a.s. Annual report 2014 230 Consolidated financial statements (in millions of CZK)     Czech Republic Actuarial assumptions   Assumed variations as at 31/12/2013 Influence on provision for jubilee bonuses 2013 Influence on retirement benefits 2014’3 Demographic assumptions (+) 0.5 p.p. - (3) staff turnover rates, disability and early retirement 0.5 p.p. - (3) Financial assumptions (+) 0.5 p.p. - (2) discount rate 0.5 p.p. - (2)   - (5) Demographic assumptions (-) -0.5 p.p. - 3 staff turnover rates, disability and early retirement -0.5 p.p. - 3 Financial assumptions (-) -0.5 p.p. - 2 discount rate -0.5 p.p. - 2   - 5 Duration of retirement benefits liabilities     Provision for jubilee bonuses Retirement benefits Total     31/12/2014 31/12/2013 31/12/2014 31/12/2013   31/12/2014 31/12/2013 Less than one year 1 1 4 3   5 4 Between one and three years 1 1 9 7   10 8 Between three and five years - - 6 6   6 6 Later than five years 1 1 54 38   55 39     3 3 73 54   76 57                   Weighted average duration of liability (years) 15 15   15 15

UNIPETROL, a.s. Annual report 2014 231 Consolidated financial statements (in millions of CZK) Aging of employee benefits payments analysis     Provision for jubilee bonuses Retirement benefits Total     31/12/2014 31/12/2013 31/12/2014 31/12/2013   31/12/2014 31/12/2013 Less than one year 1 1 5 4   6 5 Between one and three years 1 1 9 8   10 9 Between three and five years 2 1 8 9   10 10 Later than five years 8 7 204 188   212 195     12 10 226 209   238 219 Division of costs to Profit or loss and Other comprehensive income       31/12/2014   31/12/2013 In profit and loss         Current service cost (6)   (2) Interest expense (1)   (1) Past employment costs     -   (27)       (7)   (30) In components of other comprehensive income       Gains and losses arising from changes     (12)   (2) financial assumptions     (12)   (2)       (12)   (2)       (19)   (32) Provisions for employee benefits recognized in profit or loss were accounted as follows:     31/12/2014   31/12/2013 Cost of sales (4)   (15) Distribution expenses -   (10) Administrative expenses (3)   (5)     (7)   (30) Based on current legislation, the Group is obliged to pay contributions to the national pension insurance. These costs are recognized as expenses on social security and health insurance. The Group does not have any other commitments in this respect. Additional information about the retirement benefits is in note 3.4.23.4.

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 232 Consolidated financial statements (in millions of CZK) 26.3 Provisions for legal disputes The provision for legal disputes is created for expected future outflows arising from legal disputes with third parties where the Group is the defendant . 26.4 Provision for CO 2 emissions The provision for CO 2 emissions is created for estimated CO 2 emissions in the reporting period . 26.5 Other provisions The Group created other provisions in respect of future liabilities related to dismantling costs connected with liquidation of unused assets and severance payments . 27. Other non-current liabilities     31/12/2014   31/12/2013 Investment liabilities   1   1 Financial lease liabilities   -   1 Other   20   34 Financial liabilities   21   36 Guarantee payment received   164   166 Non-financial liabilities   164   166     185   202 The Group received cash advance from business partners presented as Guarantee received in connection with operation of fuel stations .

UNIPETROL, a.s. Annual report 2014 233 Consolidated financial statements (in millions of CZK) 28. Trade and other liabilities     31/12/2014   31/12/2013 Trade liabilities   7,404   11,187 Investment liabilities   580   871 Dividends   35   35 Financial lease liabilities   1   1 Other   49   56 Financial liabilities   8,069   12,150 Prepayments for deliveries   42   17 Payroll liabilities   283   273 Excise tax and fuel charge   3,987   3,886 Value added tax   1,003   791 Other taxation, duties, social security and other benefits   92   85 Accruals   106   111 holiday pay accrual   15   18 wages accrual   90   93 other   1 - Non-financial liabilities   5,513   5,163     13,582   17,313 The management considers that the carrying amount of trade and other payables and accruals approximate their fair value. 29. Deferred income     31/12/2014   31/12/2013 Government grants received from European Regional Development Fund 72   104 Other   4   5     76   109 The information about the government grants is presented in note 13.

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 234 Consolidated financial statements (in millions of CZK) 30. Other financial liabilities     31/12/2014   31/12/2013 Cash flow hedge instruments         foreign currency forwards   55   246 commodity swaps   169   - Derivatives not designated as hedge accounting         foreign currency forwards   -   3 commodity swaps   155   67 Cash pool   33   33     412   349 Information regarding cash flow hedge instruments and derivatives not designed as hedge accounting is presented in note 31.3.

UNIPETROL, a.s. Annual report 2014 235 Consolidated financial statements (in millions of CZK) 31. Financial instruments 31.1 Financial instruments by category and clas Financial assets As at 31 December 2014     Financial instruments by category Financial instruments by class Note Financial assets at fair value through profit or loss Loans and receivables Hedging financial instruments Total Trade receivables 21 - 11,951 - 11,951 Borrowings granted 18, 22 - 6 - 6 Cash pool 22 - 36 - 36 Financial derivatives 22 188 - 887 1,075 Cash and cash equivalents 23 - 1,682 - 1,682 Receivables from settled financial derivatives 22 647 - - 647 Other financial assets 18, 21 - 44 - 44     835 13,719 887 15,441 As at 31 December 2013     Financial instruments by category Financial instruments by class Note Financial assets at fair value through profit or loss Loans and receivables Hedging financial instruments Total Trade receivables 21 - 11,364 - 11,364 Borrowings granted 18, 22 - 13 - 13 Cash pool 22 - 13 - 13 Financial derivatives 22 18 - 11 29 Cash and cash equivalents 23 - 1,117 - 1,117 Other financial assets 18, 21 - 530 - 530     18 13,037 11 13,066 Notes to financial instruments

UNIPETROL, a.s. Annual report 2014 236 Consolidated financial statements (in millions of CZK) Financial liabilities As at 31 December 2014     Financial instruments by category Financial instruments by class Note Financial liabilities at fair value through profit or loss Financial liabilities measured at amortised cost Hedging financial instruments Liabilities excluded from the scope of IAS 39 Total Non-current borrowings 25 - 4,000 - - 4,000 Other non-current liabilities 27 - 20 - - 20 Current borrowings 25 - 23 - - 23 Current loans 25 - 327 - - 327 Trade liabilities 28 - 7,404 - - 7,404 Investment liabilities 27, 28 - 581 - - 581 Cash pool 30 - 33 - - 33 Financial derivatives 30 155   224 - 379 Other financial liabilities 28 - 84 - 1 85     155 12,472 224 1 12,852 As at 31 December 2013     Financial instruments by category Financial instruments by class Note Financial liabilities at fair value through profit or loss Financial liabilities measured at amortised cost Hedging financial instruments Liabilities excluded from the scope of IAS 39 Total Non-current borrowings 25 - 2,000 - - 2,000 Other non-current liabilities 27 - 34 - - 34 Current borrowings 25 - 2 - - 2 Current loans 25 - 505 - - 505 Trade liabilities 28 - 11,187 - - 11,187 Investment liabilities 27, 28 - 872 - - 872 Cash pool 30 - 33 - - 33 Financial derivatives 30 70 - 246 - 316 Other financial liabilities 28 - 91 - 2 93     70 14,724 246 2 15,042

UNIPETROL, a.s. Annual report 2014 237 Consolidated financial statements (in millions of CZK) 31.2 Income and costs, gain and loss in the consolidated statement of profit or loss and other comprehensive income For the year ended 31 December 2014     Financial instruments by category     Financial assets and liabilities at fair value through profit or loss Loans and receivables Financial liabilities measured at amortised cost Total Interest income   -  48 - 48 Interest costs   -  - (116) (116) Foreign exchange gain/(loss)   -  229 (1,054) (825) Recognition/reversal of receivables impair- ment allowances recognized in:         other operating income/(expenses)   -  (4) - (4) Settlement and valuation of financial instruments   570 - - 570 Other   -  1 (36) (35)     570 274 (1,206) (362) Other, exluded from the scope of IFRS 7               Provisions discounting             (7)               (7) For the year ended 31 December 2013     Financial instruments by category     Financial assets and liabilities at fair value through profit or loss Loans and receivables Financial liabilities measured at amortised cost Total Interest income   - 41 - 41 Interest costs   - - (247) (247) Foreign exchange gain/(loss)   - 199 (466) (267) Recognition/reversal of receivables im- pairment allowances recognized in:         other operating income/(expenses)   - (7) - (7) Settlement and valuation of financial instruments   59 - - 59 Other   - 2 (30) (28)     59 235 (743) (449) other, exluded from the scope of IFRS 7           Provisions discounting         (8)           (8)

UNIPETROL, a.s. Annual report 2014 238 Consolidated financial statements (in millions of CZK) 31.3 Hedge accounting The Group hedges its cash flows from operating revenues due to sale of petrochemical and refinery products as well as operating expenses due to purchases of crude oil against changes in exchange rates (EUR/CZK for sale and USD/CZK for purchases and sale). Foreign exchange forwards are used as hedging instruments. The Group has derivative financial instruments, which serve as a hedging instrument pursuant to the Group’s risk management strategy. Changes in the fair value of derivatives that do not meet the hedge accounting criteria are included in derivatives held for trading and their fair value changes are reported in profit or loss. The fair value of derivative instruments are designated as hedging instruments according to the hedging cash flow planned realization date and the planned date of the influence on the result of the hedged cash flow as well as the net fair value which will be recognized in the profit or loss at the realization date: Planned realization date of hedged cash flow 31/12/2014 31/12/2013 Currency operating exposure     2014 (currency investment exposure) -  (235) 2015 (currency investment exposure) 664 -    664 (235) 31.4 Financial risk management The Group’s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the risks outlined below relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other market price risk), credit risk and liquidity risk. The Group seeks to minimize the effects of these risks by using natural hedging and derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess funds. Compliance with policies and exposure limits is reviewed by the internal auditors on a regular basis. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. 31.5 Credit risk The Group has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the Statement of financial position are net of impairment losses, estimated by the Group’s management based on prior experience and their assessment of the credit status of its customers. The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of dealing only with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. This information is supplied by independent rating agencies where available and, if not available, the Group uses other publicly available financial information and its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management. Before accepting any new customer, the Group uses own or external credit scoring system to assess the potential customer’s credit quality and defines credit limits by customer. As at 31 December 2014 none of the customers represented more than 10% of the total balance of consolidated trade receivables. Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of debtors and, where appropriate, credit guarantee insurance cover is purchased or sufficient collateral on debtor’s assets obtained.

UNIPETROL, a.s. Annual report 2014 239 Consolidated financial statements (in millions of CZK) The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The Group defines counterparties as having similar characteristics if they are related entities. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the Statement of financial position. Based on the analysis of receivables the counterparties were divided into two groups: • I group – counterparties with good or very good history of cooperation in the current year, • II group – other counterparties. 31/12/2014 31/12/2013 Group I 11,143 11,503 Group II 442 -   11,585 11,503 Aging of loans and receivables past due, not impaired     31/12/2014 31/12/2013 Up to 1 month 346 349 From 1 to 3 months 14 16 From 3 to 6 months 7 4 From 6 to 12 months 2 5 Above 1 year 41 17   410 391 The maximum exposure to credit risk for financial assets at the reporting date was as follows:   Bod 31/12/2014 31/12/2013 Trade receivables 21 11,951 11,364 Borrowings granted 18,22 6 13 Cash pool 22 36 13 Financial derivatives 22 1,075 29 Cash and cash equivalents 23 1,682 1,117 Other financial assets 18,21,22 691 530     15,441 13,066 The Management of the Group believes that the risk of impaired financial assets is reflected by recognition of an impairment. Information about impairment allowances of particular classes of assets is disclosed in the notes 19 and 21.

UNIPETROL, a.s. Annual report 2014 240 Consolidated financial statements (in millions of CZK) 31.6 Liquidity risk management Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate liquid funds, borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. As at 31 December 2014 and 31 December 2013 the maximum available credit facilities relating to bank loans amounted to CZK 15 219 million and CZK 13 769 million respectively, of which as at 31 December 2014 and 31 December 2013 CZK 13 340 million and CZK 11 980 million respectively remained unused. The description of the loans and guarantees drawn from credit facilities are presented in notes 25 and 36. Liquidity risk tables The following tables detail the Group’s remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities using the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Contractual maturity of financial liabilities   31/12/2014   Note Up to 1 year From 1 to 3 years Total Carrying amount Loans - undiscounted value 25 327 - 327 327 Borrowings - undiscounted value 25 89 4,087 4,176 4,023 Cash pool - undiscounted value 30 33 -  33 33 Finance lease 28 1 - 1 1 Trade liabilities 28 7,404 - 7,404 7,404 Investment liabilities 27, 28 580 1 581 581 Financial derivatives 30 379 -  379 379 Other financial liabilities 27, 28 84 20 104 104     8,897 4,108 13,005 12,852     31/12/2013    Note Up to 1 year From 1 to 3 years Total Carrying amount Loans - undiscounted value 25 505 - 505 505 Borrowings - undiscounted value 25 45 2,087 2,132 2,002 Cash pool - undiscounted value 30 33   - 33 33 Finance lease 27, 28 1 1 2 2 Trade liabilities 28 11,187 - 11,187 11,187 Investment liabilities 28 871 1 872 872 Financial derivatives 30 316  - 316 316 Other financial liabilities 27, 28 91 34 125 125     13,049 2 123 15,172 15,042

UNIPETROL, a .s . Annual report 2014 241 Consolidated financial statements (in millions of CZK) 31.7 Market risk The Group is exposed to commodity price risk resulting from the adverse changes in raw material, mainly crude oil prices . Management addresses these risks by means of a commodity, supplier and client risk management . The Group analyses the exposure and enters into derivative commodity instruments to minimize the risk associated with the purchase of crude oil . The Group’s activities are exposed to the risks of changes in foreign currency exchange rates, and interest rates . The Group can enter into financial derivative contracts to manage its exposure to interest rate and currency risk. 31.7.1 Currency risk The currency risk arises most significantly from the exposure of trade payables and receivables denominated in foreign currencies, and the foreign currency denominated loans and borrowings . Foreign exchange risk regarding trade payables and receivables is mostly covered by natural hedging of trade payables and receivables denominated in the same currencies. Hedging instruments (forwards, currency swaps) also could be used, to cover significant foreign exchange risk exposure of trade payables and receivables not covered by natural hedging . Currency structure of financial instruments denominated in main foreign currencies as at 31 December 2014 Financial instruments by class EUR USD Total after translation to CZK Financial assets       Trade receivables 168 23 5,181 Cash pool 1 - 36 Financial derivatives - 7 165 Cash and cash equivalents 13 - 373   182 30 5,755 Financial liabilities       Cash pool 1 - 33 Trade liabilities 51 112 3,970 Investment liabilities 8 - 225 Financial derivatives - 7 155   60 119 4,383

UNIPETROL, a.s. Annual report 2014 242 Consolidated financial statements (in millions of CZK) Currency structure of financial instruments denominated in main foreign currencies as at 31 December 2013 Financial instruments by class EUR USD Total after translation to CZK Financial assets     Trade receivables 162 25 4,936 Cash pool - - 13 Financial derivatives - 1 18 Cash and cash equivalents 8 7 340   170 33 5,307 Financial liabilities     Loans 2 1 62 Cash pool 1 - 33 Trade liabilities 50 274 6,836 Investment liabilities 10 - 270 Financial derivatives - 3 67   63 278 7,268 Foreign currency sensitivity analysis The influence of potential changes in carrying amounts of financial instruments as at 31 December 2014 and 2013 arising from hypothetical changes in exchange rates of relevant currencies in relation to functional currency on profit before tax and hedging reserve: Influence on profit before tax 2014 Increase of exchange rate Total influence Decrease of exchange rate Decrease of exchange rate EUR/CZK 15% 508 15% (508) USD/CZK 15% (302) 15% 302     206   (206) Influence on profit before tax 2013 Increase of exchange rate Total influence Decrease of exchange rate Total influence EUR/CZK 15% 440 15% (440) USD/CZK 15% (734) 15% 734     (294)   294

UNIPETROL, a.s. Annual report 2014 243 Consolidated financial statements (in millions of CZK) Influence on hedging reserve 2014 Increase of exchange rate Total influence Decrease of exchange rate Total influence EUR/CZK 15%  (927)  15%  927   USD/CZK 15%  44   15%  (44)      (883)   883 Influence on hedging reserve 2013 Increase of exchange rate Total influence Decrease of exchange rate Total influence EUR/CZK 15% (718) 15% 718 USD/CZK 15% 74 15% (74)     (644)   644 Variations of currency rates described above were calculated based on historical volatility of particular currency rates and analysts’ forecasts. Sensitivity of financial instruments for currency risk was calculated as a difference between the initial carrying amount of financial instruments (excluding derivative instruments) and their potential carrying amount calculated using assumed increases/(decreases) in currency rates. In case of derivative instruments, the influence of currency rate variations on fair value was examined at constant level of interest rates. The fair value of foreign currency forward contracts is determined based on discounted future cash flows of the transactions, calculated based on the difference between the forward rate and the transaction price. 31.7.2 Interest rate risk The Group is exposed to the risk of volatility of cash flows arising from interest rate loans, bank loans and cash pool based on floating interest rates. Interest rate structure of financial instruments: Interest rate PRIBOR EURIBOR LIBOR Carrying amount 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 Financial assets                 Borrowings granted 6 13 - - - - 6 13 Cash pool - - 34 11 2 2 36 13   6 13 34 11 2 2 42 26 Financial liabilities                 Loans 327 443 - 43 - 19 327 505 Borrowings 4,023 2,002 - - - - 4,023 2,002 Cash pool - - 33 31 - 2 33 33   4,350 2,445 33 74 - 21 4,383 2,540

UNIPETROL, a.s. Annual report 2014 244 Consolidated financial statements (in millions of CZK) Interest rate sensitivity analysis The influence of financial instruments on profit before tax due to changes in significant interest rates: Interest rate Assumed variation Influence on profit before tax Total 31/12/2014 31/12/2013 2014 2013 2014 2013 EURIBOR +0.5 p.p. +0.5 p.p. - - - - LIBOR +0.5 p.p. +0.5 p.p. - - - - PRIBOR +0.5 p.p. +0.5 p.p. (22) (12) (22) (12)       (22) (12) (22) (12) The above interest rates variations were calculated based on observations of interest rates fluctuations in the current and prior year as well as on the basis of available forecasts. The sensitivity analysis was performed on the basis of instruments held as at 31 December 2014 and 31 December 2013. The influence of interest rates changes was presented on annual basis. 31.7.3 The risk of commodity prices and oil products The Group is exposed to commodity price risk resulting from the adverse changes in raw material, mainly crude oil prices. Management addresses these risks by means of a commodity, supplier and client risk management. Sensitivity analysis Analysis of the influence of potential changes in the book values ​​ of financial instruments on profit before tax and hedging reserve in relation to a hypothetical change in prices of crude oil: Influence on hedging reserve 2014 Increase of price by Total influence Decrease of price by Total influence Crude oil USD/BBL 5 USD/BBL (218)  5 USD/BBL 218           Influence on profit before tax 2013 Increase of price by Total influence Decrease of price by Total influence Crude oil USD/BBL 5 USD/BBL (252) 5 USD/BBL 252 31.7.4 Emission allowances risk The Group monitors the emission allowances granted to the Group under the National Allocation Plan and CO2 emissions planned. The Group might enter into transactions on emission allowances market in order to cover for shortages or utilize the excess of obtained emission allowances over the required amount. 32. Fair value determination 32.1 Methods applied in determining fair values of financial instruments (fair value hierarchy) Fair value of shares quoted on active markets is determined based on market quotations (so called Level 1). In other cases, fair value is determined based on other input data, apart from market quotations, which are directly or indirectly possible to observe (so called Level 2) and data to valuation, which aren’t based on observable market data (Level 3). The Group measures derivative instruments at fair value using valuation models for financial instruments based on generally available exchange rates, interest rates, forward and volatility curves for currencies and commodities quoted on active markets. As compared to the previous reporting period the Group has not changed valuation methods concerning derivative instruments. The fair value of derivative instruments is based on discounted future cash flows of the transactions, calculated based on the difference between the forward rate and the transaction. Forward exchange rate is not modelled as a separate risk factor, but is

UNIPETROL, a.s. Annual report 2014 245 Consolidated financial statements (in millions of CZK) derived from the relevant spot rate and forward interest rate for foreign currencies in relation to CZK. Derivative instruments are presented as assets, when their valuation is positive and as liabilities, when their valuation is negative. Gains and losses resulting from changes in fair value of derivative instruments, for which hedge accounting is not applicable, are recognized in a current year profit or loss. Derivative instruments presented as financial assets in amount of CZK 1 075 million as at 31 December 2014 (CZK 29 million as at 31 December 2013) and derivative instruments presented as financial liabilities in amount of CZK 379 million as at 31 December 2014 (CZK 316 million as at 31 December 2013) belong to Level 2 as defined by IFRS. The carrying amount of remaining financial assets and liabilities approximates their fair value. In the year ended 31 December 2014 and the comparative period there were no transfers between Levels 1, 2 and 3 in the Group. Investment property As at 31 December 2014 and 31 December 2013 the Group possessed under non-financial assets the investment property, which fair value was estimated depending on the characteristics based on comparison or revenue approach. The comparison approach was applied assuming, that the value of assessed property was equal to the market price of a similar property. The Group presented Investment property in carrying amount of CZK 117 million as at 31 December 2014 (31 December 2013: CZK 117 million) for which the fair value was estimated using comparison approach. Such assets belong to Level 2 as defined by IFRS 7. In the revenue approach the calculation was based on the discounted cash flow method. 10 year period forecasts were applied in the analysis. The discount rate used reflects the relation, as expected by the buyer, between yearly revenue from an investment property and expenditures required to purchase investment property. Forecasts of discounted cash flows relating to the property consider arrangements included in all rent agreements as well as external data, e.g. current market rent charges for similar property, in the same location, technical conditions, standard and designed for similar purposes. The Group applied the revenue approach to investment property with carrying amount of CZK 302 million as at 31 December 2014 (31 December 2013: CZK 310 million). The investment property valued under revenue approach is classified as the Level 3 defined by IFRS 7. The movements in the assets classified to the Level 3 fair values were as follows:       2014 2013 Beginning of the year   310 297 Transfer from Property, plant and equipment   - 17 Reclassification to Property, plant and equipment   (3) (3) Fair value measurement   (5) (1)     302 310 Sensitivity analysis of changes in fair value of investment property classified under Level 3 fair value Analysis of the influence of potential changes in the fair value ​​ of investment property on profit before tax in relation to a hypothetical change in discount rate:         Level 3     Increase by Total impact Decrease by Total impact Change in discount rate   +1 p.p. (19)   -1 p.p. 19 As at 31 December 2014 and 31 December 2013 the Group held unquoted shares in entities amounting to CZK 0,5 million, for which fair value cannot be reliably measured, due to the fact that there are no active markets for these entities and no comparable transactions in the same type of instruments. Above mentioned shares were recognized as financial assets available for sale and measured at acquisition cost less impairment allowances. As at 31 December 2014 there are no binding decisions relating to the means and dates of disposal of those assets.

UNIPETROL, a.s. Annual report 2014 246 Consolidated financial statements (in millions of CZK) 33. Leases 3.1 The Group as lessee Operating lease At the balance sheet date, the Group possessed non-cancellable operating lease arrangements as a lessee. Future minimum lease payments under non-cancellable operating lease arrangements were as follows:     31/12/2014   31/12/2013 Less than one year   56   57 Between one and five years   178   205 Later than five years   236   290     470   552 The Group leases vehicles and offices under operating leases. The vehicle leases typically run for a two year period. Lease payments are adjusted annually to reflect market conditions. None of the leases includes contingent rentals. Payments recognized as an expense were as follows:   2014 2013 Non-cancellable operating lease 51 55 Finance lease At the balance sheet date, the Group possessed finance lease arrangements as a lessee. Future minimum lease payments under finance lease arrangements were as follows:     31/12/2014 31/12/2013 Less than one year   1  1 Between one and five years   - 1     1 2 Present value of minimum lease payments under finance lease arrangements were as follows:     31/12/2014 31/12/2013 Less than one year   1 1 Between one and five years   - 1     1 2 The difference between total value of future minimum lease payments and their present value results from discounting of lease payments by the interest rate implicit in the agreement. Other notes

UNIPETROL, a.s. Annual report 2014 247 Consolidated financial statements (in millions of CZK) All leases are on a fixed repayment basis and no arrangements for contingent rental payments exist. The fair value of the Group’s lease obligations approximates their carrying amount. All lease obligations are denominated in Czech crowns. Net carrying amount of leased assets was as follows:   31/12/2014 31/12/2013 Machinery and equipment 208 238 Vehicles and other 68 87   276 325 33.2 The Group as lessor As at 31 December 2014 and as at 31 December 2013 the Group did not possess any financial or operating lease agreements as a lessor. 34. Investment expenditure incurred and contingent liabilities from signed investment contracts The total value of investment expenditure including borrowing costs amounted to CZK 2 007 million as at 31 December 2014 and CZK 2 404 million as at 31 December 2013, comprising environmental expenditures in amount of CZK 175 million and CZK 26 million respectively. As at 31 December 2014 the value of future liabilities resulting from contracts signed until this date amounted to CZK 459 million (as at 31 December 2013: CZK 826 million). 35. Contingent liabilities Purchase of shares of PARAMO, a.s. In January 2009 UNIPETROL, a.s. effected a squeeze out of PARAMO, a.s. shares within the meaning of Sections 183i et seq. of the Commercial Code and became sole shareholder of PARAMO, a.s. In accordance with the resolutions of the Extraordinary General Meeting of PARAMO, a.s. of 6 January 2009, all other shares in PARAMO, a.s were transferred to the Company and the Company provided to the other shareholders of PARAMO, a.s. and/or pledges, the monetary consideration of CZK 977 per share of PARAMO, a.s. On 4 February 2009 the registration of the above resolution of the Extraordinary General Meeting was published in the Czech Commercial Register. Pursuant to the Czech Commercial Code, the ownership title to shares of the other shareholders passed to the Company on 4 March 2009 upon expiration of one month from the above publication and UNIPETROL, a.s. became the sole shareholder of PARAMO, a.s. In connection with the squeeze-out, certain minority shareholders of PARAMO, a.s. filed a petition with the Regional Court in Hradec Králové for a review of the adequacy of compensation within the meaning of the Czech Commercial Code. The case is now pending at the Regional Court in Hradec Králové. Furthermore some former minority shareholders of PARAMO, a.s. requested the Regional Court in Hradec Králové to declare the invalidity of PARAMO, a.s. general meeting resolution dated 6 January 2009 and the District Court in Prague 4 to review the decision of 28 November 2008 by which the Czech National Bank granted in accordance with Section 183n(1) of the Czech Commercial Code its previous approval with the monetary consideration provided under the above squeeze-out. Regarding the case for declaration of invalidity of the PARAMO, a.s., the Regional Court in Hradec Králové dismissed the petition for declaration of invalidity of the PARAMO, a.s. general meeting resolution dated 6 January 2009.  Certain minority shareholders filed an extraordinary appeal against this decision and the case is now pending before the Supreme Court of the Czech Republic. In the case of the proceedings concerning the previous approval of the Czech National Bank, the action was dismissed by the District Court for Prague 4 in favor of the Czech National Bank and UNIPETROL, a.s. The proceedings are pending before the Municipal Court in Prague. The cassation appeal of certain minority shareholders concerning the invalidity of the General Meeting resolution was dismissed by the Supreme Court though the resolution dated 19 December 2013.  The Supreme Court´s resolution is final and unappealable. Within the adequacy of compensation proceedings, the court ordered preparation of a third expert’s valuation (Ústav

UNIPETROL, a.s. Annual report 2014 248 Consolidated financial statements (in millions of CZK) oceňováni majetku při Ekonomické fakultě Vysoké školy báňské – Technické univerzity Ostrava, i.e. an institute established by the Faculty of Economy of the Technical University in Ostrava was appointed by the court to carry out the valuation). UNIPETROL appointed Pricewaterhousecoopers to provide a valuation of PARAMO shares.   Next hearing is scheduled for April 2015. Transportation contracts The transportation of crude oil supplies through pipelines for UNIPETROL RPA, s.r.o. is provided by MERO ČR, a.s. and TRANSPETROL, a.s. via ČESKÁ RAFINÉRSKÁ, a.s. As at 31 December 2014, ČESKÁ RAFINÉRSKÁ, a.s. held a contract for transportation with TRANSPETROL, a.s., covering years 2014, 2015 and 2016. Due to complicated and lengthy negotiations, there is no framework transportation contract in place with MERO ČR, a.s. Transportation of crude oil is provided by MERO ČR, a.s. on a regular basis with no disruptions; transportation is based on conditions and transportation tariff of the previous contract. The Group management does not expect any impact on the business activities caused by non-existence of long-term contract with MERO ČR, a.s. The effect on financial statements is currently not measurable. 36. Guarantes and securities Guarantees Based on the Group’s request the bank guarantees relating to the security of customs debt, excise tax at customs offices and other purposes were issued. The total balance of guarantees related to excise tax amounted to CZK 1 521 million as at 31 December 2014 (31 December 2013: CZK 1 261 million) and to other purposes amounted to CZK 31 million (31 December 2013: CZK 23 million). The Group is the beneficiary of guarantees amounted CZK 1 464 million as at 31 December 2014 (31 December 2013: CZK 542 million). Past environmental liabilities The Group is the recipient of funds provided by the National Property Fund of the Czech Republic for settling environmental liabilities relating to historic environmental damage. Funds up to CZK 14 753 million are provided to cover cost actually incurred in relation to settlement of historic environmental damage. An overview of funds provided by the National Property Fund (currently administered by the Ministry of Finance) for the environmental contracts is provided below:   Total amount of funds to be provided Used funds as at 31/12/2014   Unused funds as at 31/12/2014 UNIPETROL, a.s. / premises of UNIPETROL RPA, s.r.o.   6,012   3,868   2,144 UNIPETROL, a.s. / premises of SYNTHOS Kralupy a.s.   4,244   51   4,193 BENZINA s.r.o.     1,349   471*   878 PARAMO, a.s. / premises in Pardubice   1,241   500   741 PARAMO, a.s. / premises in Kolin 1,907 1,728   179     14,753 6,618   8,135                 Total amount of funds to be provided Used funds as at 31/12/2013   Unused funds as at 31/12/2013 UNIPETROL, a.s. / premises of UNIPETROL RPA, s.r.o. 6,012 3,688   2,324 UNIPETROL, a.s. / premises of SYNTHOS Kralupy a.s. 4,244 49   4,195 BENZINA s.r.o.   1,349   458*   891 PARAMO, a.s. / premises in Pardubice   1,241 479   762 PARAMO, a.s. / premises in Kolin 1,907 1,694   213     14,753 6,368   8,385 * Without the costs of the already completed rehabilitation of the petrol stations network of the former Kpetrol 1995-1999 of CZK 40 million and clean-up costs spent before 1997 in amount of approximately of CZK 500 million.

UNIPETROL, a.s. Annual report 2014 249 Consolidated financial statements (in millions of CZK) 37. Related parties 37.1 Material transactions concluded by the Group Companies with related parties In year 2014 and in 2013 there were no transactions concluded by the Group with related parties on other than arm’s length terms. 37.2 Transactions with key management personnel In year 2014 and in 2013 the Group companies did not grant to key management personnel and their relatives any advances, loans, guarantees and commitments or other agreements obliging them to render services to Group companies and related parties. In year ended 31 December 2014 and in 2013 there were no significant transactions concluded with members of the Board of Directors, Supervisory Board, their spouses, siblings, descendants, ascendants or their other relatives. 37.3 TransactionwithrelatedpartiesconcludedbykeymanagementpersonneloftheGroup companies In year 2014 and in 2013 members of the key management personnel of the parent company and the Group companies submitted statements that they have not concluded any transaction with related parties. 37.4 Transactions and balances of settlements of the Group companies with related parties Parent and ultimate controlling party During 2014 and 2013 a majority (62,99%) of the Company’s shares were in possession of POLSKI KONCERN NAFTOWY ORLEN S.A. 2014 PKN Orlen Joint operations  Entities under control or significant influence of PKN Orlen Sales 1,158 2,265   7,958 Purchases 77,075 3,070   2,839 Finance income, including - 110   - dividends - 110   - Finance costs 86 -   30 31/12/2014 PKN Orlen Joint operations Entities under control or significant influence of PKN Orlen Long term receivables   - 6 - Short term financial assets   - - 36 Trade and other receivables 112 292 570 Trade and other liabilities, including loans and borrowings 6,272 358 211

UNIPETROL, a.s. Annual report 2014 250 Consolidated financial statements (in millions of CZK) 2013 PKN Orlen Joint operations Entities under control or significant influence of PKN Orlen Sales   468 2,416 5,176 Purchases   57,010 3,258 2,754 Finance income, including   - 452 - dividends   - 450 - Finance costs   3   -   23 2013 PKN Orlen Joint operations   Entities under control or significant influence of PKN Orlen Long term receivables - 24  - Short term financial assets - - 12 Trade and other receivables 24 389 611 Trade and other liabilities, including loans and borrowings 6,923 357  390 38. Remuneration paid and due or potentially due to Management Board, Supervisory Board and other members of key executive personnel of parent company and the Group companies in accordance with IAS 24 The Management Board’s, the Supervisory Board’s and other key executive personnel’s remuneration includes short term employee benefits, retirement benefits, other long-term employee benefits and termination benefits paid, due and potentially due during the period. 38.1 Key management personnel and statutory bodies’ members’ compensation     2014 2013     Short-term benefits Termination benefits Short-term benefits Termination benefits Remuneration of current year 213 7 219 7 Paid for previous year 46 2 49 1 Potentially due to be paid in the following year 43 2 43 2 Further detailed information regarding remuneration of key management personnel is included in note 9.3.

UNIPETROL, a.s. Annual report 2014 251 Consolidated financial statements (in millions of CZK) 38.2 Bonus system for key executive personnel of the Group In 2014 the key executive personnel was participating in the annual MBO bonus system (management by objectives). The regulations applicable to Management Board, directors directly reporting to Management Boards of entities and other key positions have certain common features. The persons subject to the above mentioned systems are remunerated for the accomplishment of specific goals set at the beginning of the bonus period, by the Supervisory Board for the Management Board Members and by the Management Board members for the key executive personnel. The bonus systems are structured in such way, so as to promote the cooperation between individual employees in view to achieve the best possible results for the Group. The goals so-said are qualitative or quantitative (measurable) and are accounted for following the end of the year for which they were set, on the rules adopted in the applicable Bonus System Regulations. Regulation gives the possibility to promote employees, who significantly contribute to results generated by the Group. 39. Information concerning significant proceedings in front of court, body appropriate for arbitration proceedings or in front of public administration bodies Claims regarding reward for employees’ intellectual work In the year 2001 the court case commenced regarding the reward for the employees’ intellectual work between UNIPETROL RPA, s.r.o. and its two employees. Employees demanded reward of approx. CZK 1,8 million. UNIPETROL RPA, s.r.o. as defendant did not agree and offered the reward amounting to approx. CZK 1,4 million, based on experts’ valuations. In 2005 Employees plaintiffs filed the next petition to the court to extend the action to an amount of approx. CZK 82 million. The first instance hearing was held on 18 October 2011. An experts´ valuation ordered by the court confirmed the amount of the reward payable to the employees in the amount of CZK 1,6 million. One of the employees accepted payment of his share in the reward confirmed by the expert in the expert valuation ordered by the court. During the twelve month period ended 31 December 2014 there were no material changes in relation to the issue. Claims on compensation of damages filed by I.P. – 95, s.r.o. against UNIPETROL RPA, s.r.o. On 23 May 2012 UNIPETROL RPA, s.r.o., having its registered office at Záluží 1, 436 70, Litvínov, Business ID no.: 27597075,, the subsidiary of UNIPETROL, a.s., received a petition from the District Court Ostrava, file no. 30 C 66/2010. Claimant – I.P. - 95, s.r.o., having its registered office at Těšínská 202/225, 716 00 Ostrava-Radvanice, Business ID no.: 64085694 is claiming compensation of damages totalling CZK 1 789 million. I.P. – 95, s.r.o. claims that it incurred damages as a result of an unjustified insolvency filing against I.P. – 95, s.r.o. made by UNIPETROL RPA, s.r.o. on 24 November 2009.  I.P. – 95, s.r.o. assigned part of the receivable in question of CZK 1 742 million, to NESTARMO TRADING LIMITED, having its registered office at Diagorou 4, Fermia Building, 6th floor, office no. 601, 1097 Nicosia, Cyprus, Company ID no.: HE 246733; following the assignment, I.P. – 95, s.r.o. filed a motion regarding NESTARMO TRADING LIMITED joining the proceedings as a claimant. UNIPETROL RPA, s.r.o. is one of eight respondents against whom the petition was filed. In a relating court proceedings, the Upper (Vrchní) Court in Olomouc ruled that receivable of UNIPETROL RPA, s.r.o., which was claimed by UNIPETROL RPA, s.r.o. in the bankruptcy against I.P. – 95, s.r.o., was rightfull, justified and existing at the time of making the insolvency filing. On basis of applicable jurisprudence – claiming of justified receivable within a bankruptcy proceedings can not cause any damage to the debtor. Hence we expect that the damages compensation claim against UNIPETROL RPA, s.r.o. will be rejected by the relevant court. On the basis of provisions of the Czech Insolvency Act, the proceedings has been suspended due to I.P.-95 s.r.o. becoming insolvent and the insolvency trustee failing to give consent for the proceedings to continue. I.P. – 95 s.r.o. gave consent with the proceedings to continue and therefore, as per the most recent decision of the court, the proceedings will continue with I.P. – 95 s.r.o. in its position as petitioner. The court has also submitted the case to the Czech Supreme Court to decide on local jurisdiction matters; Czech Supreme Court remanded the case District Court in Ostrava. The Group´s management does not recognize the alleged claim and considers the claim as unjustified and unfounded. The Group´s management is taking all legal actions to defend itself against this claim. Claims for compensation of damages filed by SDP Logistics sklady a.s against UNIPETROL RPA, s.r.o. On 9 July 2012 UNIPETROL RPA, s.r.o. received a petition filed by SDP Logistics sklady a.s. for compensation of damages. UNIPETROL RPA, s.r.o. concluded on 21 March 2010 with SDP Logistics sklady a.s. (“SDP”) a contract relating to storage („Contract“) for a definite period of time - until 31 July 2011. SDP claims that UNIPETROL RPA, s.r.o. failed to remove all stored products before the contract termination date.

UNIPETROL, a.s. Annual report 2014 252 Consolidated financial statements (in millions of CZK) SDP claims CZK 25 million as a contractual penalty payable to SDP as a result of not making the storage space available for a new client. SDP additionally claims CZK 120 million as loss of profit caused by not being able to provide the contracted storage capacity to a new SDP client after 1 August 2011. Furthermore SDP has blocked the goods of UNIPETROL RPA, s.r.o. (stored in the warehouse) until the said damages are covered by UNIPETROL RPA, s.r.o. UNIPETROL RPA, s.r.o. does not recognize the alleged claim and considers the claim as unjustified and unfounded. On 18 December 2014 UNIPETROL RPA, s.r.o. signed a settlement agreement with SDP Logistics sklady, a.s. under which, among others: SDP released all the blocked (arrested) goods to UNIPETROL RPA; UNIPETROL RPA has withdrawn the petition in full. Tax proceeding - UNIPETROL RPA s.r.o., acting as a legal successor of CHEMOPETROL a.s., is a party in a tax proceeding related to validity of investment tax relief for 2005. UNIPETROL RPA s.r.o. claims the return of income tax paid in 2006 for the fiscal year 2005 by CHEMOPETROL a.s. The claim concerns unused investment relief attributable to CHEMOPETROL a.s. The total value of claim amounts to approximately CZK 325 million. a) UNIPETROL RPA, s.r.o. complaint for unlawful intervention At its hearing on 16 October 2013 the Regional Court in Usti nad Labem decided to dismiss the UNIPETROL RPA, s.r.o. complaint for unlawful intervention during the first instance tax proceedings carried out by the Tax Authority in Litvinov in 2010.  The court decided that the appellate tax proceedings carried out by the Tax Directorate in Usti nad Labem in 2010 was an unlawful intervention with UNIPETROL RPA, s.r.o. rights.  UNIPETROL RPA, s.r.o. filed a cassation appeal against the part of the judgment of the court regarding dismissal of the complaint with respect to the first instance tax proceedings to the Czech High Court. On 21 January 2014 the Czech High Administration Court resolved to (i) decline the decision of Regional Court in Usti nad Labem stating that the appellate tax proceedings carried out by the Tax Directorate in Usti nad Labem in 2010 was an unlawful intervention with UNIPETROL RPA, s.r.o. rights and returned this part of the case to the Regional Court in Prague for further hearing and decision; and (ii) dismissed the cassation appeal filed by UNIPETROL RPA, s.r.o. The Czech Supreme Administrative Court´s issued a decision dated 19 March 2014 on the cassation appeals filed by the parties within the proceedings regarding declining of the tax authority decisions. The Czech Supreme Administrative Court annulled the Regional Court´s decision on annulment of the tax authorities’ decisions and dismissed the cassation appeal filed by UNIPETROL RPA, s.r.o. The matter was returned to the Regional Court in Usti nad Labem. UNIPETROL RPA, s.r.o. filed a petition with the Czech Constitutional Court claiming that by the decisions of the Czech Supreme Administrative Court its right for a fair trial was breached. Following filing of the petition with the Czech Constitutional Court, the Regional Court in Usti nad Labem suspended the proceedings regarding UNIPETROL RPA, s.r.o. complaint for dismissal of the tax authority decisions. On 16 October 2014 the Czech Constitutional Court decided to reject the UNIPETROL RPA, s.r.o. ’s constitutional complaint dated 7 April 2014. On 8 December 2014 the Regional Court in Usti nad Labem, based on the legal opinion presented by the Czech Supreme Administrative Court in their decision of 19 March 2014, dismissed UNIPETROL RPA, s.r.o complaint for unlawful intervention filed against the tax authorities. b) UNIPETROL RPA, s.r.o. complaint for dismissal of the tax authority decisions At its hearing on 11 December 2013 the Regional Court in Usti nad Labem decided to decline both (i) the decision of the Tax Authority in Litvinov issued in 2010 on the tax corporate income obligation of UNIPETROL RPA, s.r.o. of approximately CZK 325million, and (ii) the decision of the Tax Directorate in Usti nad Labem (in its position as appellate tax authority) on the UNIPETROL RPA, s.r.o. appeal against the tax decision under point (i).  The court ruled both decisions of tax authorities to be unlawful.  The court returned the case to the tax authority for further procedure. UNIPETROL RPA, s.r.o. filed a cassation appeal against the decision of the Regional Court in Usti nad Labem and requested the court to decline both tax decision due to these being null and therefore non existing.  In situation where the court declares the decision null and non-existing, this would enhance UNIPETROL RPA, s.r.o. position towards the tax authorities.

UNIPETROL, a .s . Annual report 2014 253 Consolidated financial statements (in millions of CZK) The Czech Supreme Administrative Court´s issued a decision dated 19 March 2014 on the cassation appeals filed by the parties within the proceedings regarding declining of the tax authority decisions. The Czech Supreme Administrative Court annulled the Regional Court´s decision on annulment of the tax authorities’ decisions and dismissed the cassation appeal filed by UNIPETROL RPA, s.r.o. The matter was returned to the Regional Court in Usti nad Labem . The Regional Court in Usti nad Labem on a hearing hold on 25 February 2015 Court decided to dismiss the UNIPETROL RPA, s .r .o . complaint for abrogation of the tax authority decisions, UNIPETROL RPA, s .r .o . is now waiting to receive the Regional Court´s judgment in writing.  UNIPETROL RPA, s.r.o. will consider filing a cassation appeal against the judgment of the Regional Court . 40. Subsequent events after the reporting date The Group’s management is not aware of any other events that have occurred since end of the reporting period that would have any material impact on the financial statements as at 31 December 2014. 41. Approval of the financial statement The consolidated financial statements were authorized by the Board of directors meeting of the Company held on 3 March 2015 . Signature of statutory representatives Marek Świtajewski Mirosław Kastelik Chairman of the Board of Directors Member of the Board of Directors Mirosław Kastelik Marek Świtajewski

Individuální účetní uzávěrka UNIPETROL, a .s . PB UNIPETROL, a .s . Annual report 2014 254 Significant post financial statements events Repayment of CZK 2 billion loan from PKn Orlen On 20 March 2015 UNIPETROL, a.s. repaid CZK 2 billion out of total CZK 4 billion mid-term loan received from its majority shareholder – PKN ORLEN S .A . (which holds 62 .99% of the Unipetrol shares) under a loan agreement entered into on 12 December 2013 . Significant post financial statements events

UNIPETROL, a.s. Annual report 2014 255 Report on relations in accordance with article 82 of the Act No. 90/2012 Coll., on Business Companies and Cooperatives (on Business Corporations), as amended (hereinafter the „Act on Business Corporations“) Financial period from 1.1.2014 to 31.12.2014 is the vesting period for this Report on relations between the controlling person and the controlled person and between the controlled person and other persons controlled by the same controlling person (hereinafter the „Report on Relations“). The structure of relations between the entities Controlled Person UNIPETROL, a.s., with registered office at Na Pankráci 127, 140 00 Praha 4, Corporate ID: 616 72 190, entered in the Commercial Register maintained by the Municipal Court in Prague, Section B, Enclosure 3020 (hereinafter „UNIPETROL, a.s.“). Controlling Persons Polski Koncern Naftowy Spólka Akcyjna with registered office at Chemików 7, PŁOCK, Poland (hereinafter „Polski Koncern Naftowy Spólka Akcyjna“) is the majority shareholder (associate) of UNIPETROL, a.s. Other Controlled Persons The entities controlled by the Controlling Person – Polski Koncern Naftowy Spólka Akcyjna are members of business group „PKN ORLEN S.A.“, whose scheme is shown in Appendix No. 2. The entities controlled by UNIPETROL, a.s. are members of PKN ORLEN S.A. business group and are also members of „UNIPETROL“ business group, whose scheme is shown in Appendix No. 1. Report on relations between the controlling person and the controlled person and between the controlled person and other persons controlled by the same controlling person in 2014

UNIPETROL, a .s . Annual report 2014 256 Report on relations the role of the Controlled Person • strategic management of the development of the group of directly or indirectly controlled companies, • coordination and facilitation of matters of common interest of the group of directly or indirectly controlled companies, • arranging of financing and development of financing systems in the companies within the concern, • development of human resources and a system of human resource management in the companies within the concern, • administration, acquisition of and disposal with ownership interests and other assets of the Company, in particular: (i) establishing of business corporations, participation in their foundation and other acquisitions of ownership interests in business of other legal entities, (ii) exercising of shareholder´s and similar rights within directly or indirectly controlled companies, (iii) renting of real estate and provision of basic services for due functioning of real estate . the method and means of controlling Polski Koncern Naftowy Spólka Akcyjna is the majority shareholder (associate) of UNIPETROL, a.s. and has direct influence in UNIPETROL, a .s . the list of actions undertaken in the last financial period made on instigation or in the interest of the Controlling Person or entities controlled by such entity, on condition such actions concern assets exceeding 10% of the controlled entity’s equity capital identified in the last financial sta- tements In the vesting period there were no actions carried out in accordance with article 82 (2d) of the Act on Business Corporations . the list of mutual agreements between the Controlled Person and the Controlling Person or between the Controlled Persons The mutual agreements between UNIPETROL, a .s . and Polski Koncern Naftowy Spólka Akcyjna and Other Controlled Persons were concluded on the standard terms, while agreed and provided performances or counter-performances were based on the standard terms of business relations . The list of mutual agreements with the details is enclosed in Appendix No . 3 . the conclusion The Board of Directors of UNIPETROL, a .s . based on available information declares that UNIPETROL, a .s . incurred no detriment, special advantage or disadvantage in accordance with the article 82 (4) of the Act of Business Corporations as a result of any contracts, acts or measures taken between entities in business group . No risks arise from the relations between entities in business group to UNIPETROL, a .s . except those arising from standard participation in international business group . The company’s Board of Directors prepared the Report on Relations based on information available on the date of the Report on Relations . The Report on Relations is to be read in conjunction with the Appendix No . 1, 2 and 3 . Prague, 10 March 2015 On behalf of the Board of Directors of UNIPETROL, a .s . Marek Świtajewski Mirosław Kastelik generální ředitel a předseda představenstva finanční ředitel a člen představenstva Marek Świtajewski Mirosław Kastelik Marek Świtajewski Mirosław Kastelik

UNIPETROL, a.s. Annual report 2014 257 Report on relations Business group of UNIPETROL, a.s. – controlled entities 1.1.2014 – 31.12.2014 Entities controlled by UNIPETROL, a.s. Residence Shares in directly and indirectly controlled entities in % of the capital Note Entities with direct share of UNIPETROL, a.s. Entities with indirect share of UNIPETROL Group 1.1. 31.12. 1. UNIPETROL RPA, s.r.o., IC 275 97 075 Litvínov, Záluží 1 100.00 100.00 1.1 HC VERVA Litvínov, a.s., IC 640 48 098 Litvínov , S.K. Neumanna 1598 70.95 70.95 Other shareholders: Město Litvínov vlastní 22.14% a HC Litvínov, o.s. vlastní 6.91% 1.2 CHEMOPETROL, a.s., IC 254 92 110 Litvínov, Záluží 1 100.0 100.00   1.3 POLYMER INSTITUTE BRNO, spol. s.r.o., IC 607 11 990 Brno, Tkalcovská 36/2 99.00 99.00 1% owned by UNIPETROL, a.s. 1.4 UNIPETROL DOPRAVA, s.r.o., IC 640 49 701 Litvínov, Růžodol 4 99.88 99.88 0.12% owned by UNIPETROL, a.s. 1.5 UNIPETROL DEUTSCHLAND GmbH, IC. HRB 34346 Langen, Germany, Paul-Ehrlich-Strasse 1B 99.90 99.90 0.1% owned by UNIPETROL, a.s. 1.6 CHEMAPOL (SCHWEIZ) AG, v likvidaci, IC CH-270.3.000.762-9 Leimenstrasse 21, 4003 Basel, Schwitzerland 100.00 100.00 The liquidation was finished on 12.6.2013, we have applied for deletion from the commercial register. 1.7 UNIPETROL SLOVENSKO s.r.o., IC 357 77 087 Panónská cesta 7, Bratislava, Slovak republic 86.96 86.96 13.04% owned by UNIPETROL, a.s. 2. UNIPETROL SERVICES, s.r.o., IC 276 08 051 Litvínov, Záluží 1 100.00 100.00   3. Výzkumný ústav anorganické chemie, a.s., IC 622 43 136 Ústí nad Labem, Revoluční 84/č.p. 1521 100.00 100.00   Appendix No. 1

UNIPETROL, a .s . Annual report 2014 258 Report on relations 4. BENZINA, s.r.o., IC 601 93 328 Praha 4, Na Pankráci 127 100.00 100.00   4 .1 PETROTRANS, s .r .o ., IC 251 23 041 Praha 8, Střelničná 2221 99 .37 99 .37 0 .63% owned by UNIPETROL, a .s . 5. UNIPETROL RAFINÉRIE, s.r.o., ICC 278 85 429 Litvínov, Záluží 1 100.00 100.00 6. ČESKÁ RAFINÉRSKÁ, a.s., IC 627 41 772 Litvínov, Záluží 2 51.22 67.555 Other shareholder – Eni International B .V . owns 32 .445% . 7. UNIPETROL AUSTRIA, GmbH, in liquidation, IC 43 551 Vídeň, Apfelgasse 2, Austria 100.00 100.00 8. PARAMO, a.s., IC 481 73 355 Pardubice, Svítkov, Přerovská čp. 560 100 .00 100 .00 8.1 MOGUL SLOVAKIA, s.r.o., IC 36 222 992 Hradiště pod Vrátnou, U ihriska 300, Slovensko 100 .00 100 .00 8.2 PARAMO Oil, s.r.o., IC 246 87 341 Pardubice, Přerovská čp. 560 100 .00 10 .00 9. Butadien Kralupy a.s., IC 278 93 995 Kralupy nad Vltavou, O . Wichterleho 810 51 .00 51 .00 49% shares owned by SYNTHOS Kralupy, a .s . Other entities with share of UNIPETROL, a.s. 1. UNIVERSAL BANKA, a.s, in bankruptcy, IC 482 64 865 Praha 1, Senovážné náměstí 1588/4 16 .45 16 .45 12.24% shares owned by UNIPET- ROL RPA, s .r .o . 2. ORLEN HOLDING MALTA LIMITED, IC C 39945 Malta, Level 1, 36, Strand Towers, The Strand, Sliema SLM 1022 0 .5 0 .5 99 .5% shares owned by PKN ORLEN S .A .

UNIPETROL, a.s. Annual report 2014 259 Report on relations BUSINESS GROUP OF PKN ORLEN S.A. – CONTROLLED ENTITIES 1.1.2014 – 31.12.2014 Entities controlled by PKN ORLEN S.A. Residence Shares in directly and indirectly controlled entities in % of the capital Note Entities with direct share of PKN ORLEN S.A. Entities with indirect share of PKN ORLEN S.A. Group 1.1. 31.12. 1. UNIPETROL, a.s. Praha 62.99 62.99 2. ORLEN Deutschland GmbH Elmshorn 100.00 100.00 3. ORLEN Budonaft Sp. z o.o. Limanowa 100.00 100.00 4. ORLEN Automatyka Sp. z o.o. Płock 100.00 100.00 5. ORLEN Asfalt Sp. z o.o. Płock 82.46 100.00 On 10.01.2014 PKN ORLEN S.A. purchased 17.54% stake in ORLEN Asfalt from Rafineria Trzebinia S.A. 5.1. ORLEN Asfalt Ceska Republika s.r.o. Pardubice 100.00 100.00 6. Inowrocławskie Kopalnie Soli "SOLINO" S.A. Inowrocław 100.00 100.00 7. ORLEN Gaz Sp. z o.o. Płock 100.00 100.00 8. ORLEN KolTrans Sp. z o.o. Płock 99.85 99.85 9. Orlen Laboratorium Sp. z o.o. Płock 99.38 99.38 10. ORLEN Medica Sp. z o.o. Płock 100.00 0 On 9.5.2014 PKN ORLEN S.A. sold its 100% stake in ORLEN Medica Sp. z o.o. 10.1 Sanatorium Uzdrowiskowe "Krystynka" Sp. z o.o. Ciechocinek 98.58 0 On 9.5.2014 PKN ORLEN S.A.sold its 100% stake in ORLEN Medica Sp. z o.o. Appendix No. 2

UNIPETROL, a.s. Annual report 2014 260 Report on relations Entities controlled by PKN ORLEN S.A. Residence Shares in directly and indirectly controlled entities in % of the capital Note 11. ORLEN Ochrona Sp. z o.o. Płock 100.00 100.00 11.1 ORLEN Ochrona Sp. z o. o., branch in Czech Republic 100.00 11.2 ORLEN Apsauga UAB 100.00 12. ORLEN OIL Sp. z o.o. Kraków 51.69 100.00 On 10.01.2014 PKN ORLEN S.A. purchased 43.84% stake in ORLEN Oil Sp. z o.o. from Rafineria Trzebinia S.A. and 4.47% stake from Rafineria Nafty Jedlicze S.A 12.1. Platinum Oil Sp. z o.o. Lublin 100.00 100.00 12.2. ORLEN OIL ČESKO, s. r. o. Brno 100.00 100.00 13. ORLEN Paliwa Sp. z o.o. Plock 100.00 100.00 14. ORLEN PetroTank Sp. z o.o. Widełka 100.00 100.00 14.1. Petro-Mawi Sp. z o.o. (in liquidation) Sosnowiec 60.00 60.00 15. ORLEN Projekt S.A. Płock 99.77 99.77 16. ORLEN Transport Kraków Sp. z o.o. in bankruptcy Kraków 98.41 98.41 17. ORLEN Transport Sp. z o.o. Plock 100.00 100.00 18. ORLEN Wir Sp. z o.o. Płock 76.59 76.59 19. Petrolot Sp. z o.o. Warszawa 100.00 100.00

UNIPETROL, a.s. Annual report 2014 261 Report on relations Entities controlled by PKN ORLEN S.A. Residence Shares in directly and indirectly controlled entities in% of the capital Note 20. Rafineria Nafty Jedlicze S.A. Jedlicze 100.00 100.00 20.1. „RAF-BIT” Sp. z o.o. (in liquidation) Jedlicze 100.00 0 On 19.09.2014 RAF-BIT w likwidacji was deleted from Polish Commercial Register. 20.2. „RAF-KOLTRANS” Sp. z o.o. (in liquidation) Jedlicze 100.00 100.00 On 01.06.2014 liquidation proceed- ing of Raf-Koltrans Sp. z o.o. was open. 20.3. „RAF-Służba Ratownicza” Sp. z o.o. (in liquidation) Jedlicze 100.00 100.00 On 07.08.2014 liquidation proceed- ing of Raf-Służba Ratownicza Sp. z o.o. was open. 20.4. Konsorcjum Olejów Przepracowanych "ORGANIZACJA ODZYSKU OPAKOWAŃ I OLEJÓW" S.A. Jedlicze 81.00 81.00 On 29.09.2014 new company’s name Konsorcjum Olejów Przepra- cowanych "ORGANIZACJA ODZYS- KU OPAKOWAŃ I OLEJÓW" S.A. (previous name Konsorcjum Olejów Przepracowanych "ORGANIZACJA ODZYSKU S.A.). Additional 8% stake owned by Rafineria Trzebinia S.A. 20.5. "RAN-WATT" Sp. z o.o. (in liquidation) Toruń 51.00 51.00 21. Rafineria Trzebinia S.A. Trzebinia 86.35 99.46 In October PKN ORLEN S.A. purchased 13.11% stake in Rafineria Trzebinia S.A. from minority shareholders. 21.1. Fabryka Parafin NaftoWax sp. z o.o. - Trzebinia Trzebinia 100.00 100.00 21.2. Energomedia Sp. z o.o. Trzebinia 100.00 100.00 21.3. Euronaft Trzebinia Sp. z o.o. Trzebinia 100.00 100.00 21.4. EkoNaft Sp. zo.o. Trzebinia 100.00 100.00 21.5.Zakładowa Straż Pożarna Sp. z o.o. Trzebinia 100.00 100.00 22. Ship - Service S.A. Warszawa 60.86 60.86 23. ORLEN Centrum Serwisowe Sp. z o.o. Opole 99.33 99.33

UNIPETROL, a.s. Annual report 2014 262 Report on relations Entities controlled by PKN ORLEN S.A. Residence Shares in directly and indirectly controlled entities in% of the capital Note 24. Anwil S.A. Włocławek 100.00 100.00 24.1. Przedsiębiorstwo Inwestycyjno - Remontowe REMWIL Sp. z o.o. Włocławek 100.00 100.00 24.2. Przedsiębiorstwo Produkcyjno-Handlowo-Usługowe PRO-LAB Sp. z o.o. Włocławek 99.32 99.32 24.3. SPOLANA a.s. Neratovice 100.00 100.00 24.4. Przedsiębiorstwo Usług Specjalistycznych i Projektowych CHEMEKO Sp. z o.o. Włocławek 77.97 0 On 26.06. all shares of Przedsiębiorstwo Usług Specjalistycznych i Projektowych CHEMEKO Sp. z o.o. owned both by Anwil S.A. and Remwil Sp. z o.o. were sold to ORLEN Eko Sp. z o.o. Subsequently, on 31.10.2014 ORLEN Eko Sp. z o.o. acquired Przedsiębiorstwo Usług Specjalistycznych i Projektowych CHEMEKO Sp. z o.o. 24.5. Zakład Usługowo-Produkcyjny EKO-Dróg Sp. z o.o. Włocławek 48.78 0 On 21.08.2014 Anwil S.A. sold its 48.78% stake in ZUP EKO-DRÓG Spółka z o.o. 24.6. Przedsiębiorstwo Usług Technicznych Wircom Sp. z o.o. Włocławek 49.02 49.02 24.7. Specjalistyczna Przechodnia Przemysłowa Prof-Med Sp. z o.o. Włocławek 96.45 0 On 12.05.2014 Anwil S.A. sold its 96.45% stake in Specjalistyczna Przechodnia Przemysłowa Prof-Med Sp. z o.o. 25. ORLEN EKO Sp. z o.o. Plock 100.00 100.00 On 26.06.2014 ORLEN Eko Sp. Z o.o. purchased Przedsiębiorstwo Usług Specjalistycznych i Projektowych CHEMEKO Sp. z o.o. and subsequently on 31.10.2014 merged with Przedsiębiorstwo Usług Specjalistycznych i Projektowych CHEMEKO Sp. z o.o. by acqusition. 26. ORLEN Administracja Sp. z o.o. Plock 100.00 100.00

UNIPETROL, a.s. Annual report 2014 263 Report on relations Entities controlled by PKN ORLEN S.A. Residence Shares in directly and indirectly controlled entities in% of the capital Note 27. ORLEN Upstream Sp. z o.o. Warszawa 100.00 100.00 27.1. ORLEN Upstream International B.V. Amsterdam 100.00 100.00 27.1.1. TriOil Resources Ltd. Calgary 100.00 100.00 27.1.1.1. 1426628 Alberta Ltd. Calgary 100.00 100.00 27.1.1.2. OneEx Operations Partnership Calgary 99.99 99.99 27.2. ORLEN International Exploration –Production Company BV Amsterdam 100.00 100.00 On 21.03.2014 PKN ORLEN S.A. sold its 100% stake in ORLEN Internation- al Exploration –Production Company BV to ORLEN Upstream Sp. z o.o. 27.2.1. SIA Balin Energy Grupa OIE-PC BV Lithuania 50.00 50.00 28. ORLEN Centrum Usług Korporacyjnych Sp. z o.o. Plock 100.00 100.00 On 01.01.2014 new company’s name ORLEN Centrum Usług Korporacyjnych Sp. z o.o. was registered (previous name ORLEN Księgowość Sp. z o.o.) 29. ORLEN HOLDING MALTA Limited Sliema, Malta 99.50 99.50 29.1. ORLEN Insurance Ltd Sliema, Malta 99.99 99.99

UNIPETROL, a.s. Annual report 2014 264 Report on relations Entities controlled by PKN ORLEN S.A. Residence Shares in directly and indirectly controlled entities in% of the capital Note 30. AB ORLEN Lietuva Juodeikiai 100.00 100.00 30.2. UAB Mazeikiu Nafta Trading House (Litwa) Vilnius, Lithuania 100.00 100.00 30.2.1. SIA ORLEN Latvija Riga, Latvia 100.00 100.00 30.2.2. ORLEN Eesti OU Tallin ,Estonia 100.00 100.00 30.3. UAB Mazeikiu Nafta Paslaugos Tau Juodeikiai 100.00 100.00 30.5. UAB EMAS Juodeikiai 100.00 100.00 31. ORLEN Finance AB Stockholm 100.00 100.00 32. Basell Orlen Polyolefins Sp. z o.o. Plock 50.00 50.00 50% owned by Basell Europe Hold- ing B. V. 32.1. Basell Orlen Polyolefins Sp. z o.o. Sprzedaž Sp. z o.o. Plock 100.00 100.00 33. Płocki Park Przemyslowo-Technologiczny S.A. Plock 50.00 50.00 50% owned by Plock Municipality 33.1.Centrum Edukacji Sp. z o. o. Plock 69.43 69.43 34. AB Ventus Nafta Vilnius 100.00 100.00 On 31.07.2014 PKN ORLEN S.A. purchased 100% stake in AB Ventus Nafta from AB ORLEN Lietuva 35. Baltic Power Sp. z o.o. Warszawa 100.00 100.00 36. Baltic Spark Sp. z o.o. Warszawa 100.00 100.00

UNIPETROL, a.s. Annual report 2014 265 Report on relations The list of mutual agreements between the controlling and controlled entity or between the controlled entities No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 1 137-2007 BENZINA s.r.o. Loan agreement 1,4 bln. CZK 12.12.2013 Provision of loan Payment for loan 2 - BENZINA s.r.o. Loan agreement – credit line max 1,3 bln. CZK 20.3.2007 Provision of loan Payment for loan 3 - BENZINA s.r.o. Loans agreement – cash pool 10.7.2007 Provision of loan Payment for loan 4 405-2008 BENZINA, s.r.o. Agreement for future easement con- tract – sewage connection Litvínov 20.9.2010 Location of sewage connection Payment 5 128-2008 BENZINA, s.r.o. Contract for the management and maintenance of company cars 27.2.2009 Providing manage- ment and mainte- nance services Payment for manage- ment and mainte- nance services 6 75-2009 BENZINA, s.r.o. Contract for the provision of licenses for the use of SAP software and support 11.5.2009 Provision of licenses for the use of SAP software, and support Payment 7 - BENZINA, s.r.o. Contract for the use of licenses mySAP.com and their maintenance program 20.12.2007 Usage of mySAP.com and maintenance Payment 8 - BENZINA, s.r.o. CLA - Corporate Level Agreement 25.11.2008 Provision of services Payment for services 9 - BENZINA, s.r.o. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 21.4.2008 Provision of services Payment for services 10 19-2014 BENZINA, s.r.o. Agreement No. 19-2014 for insur- ance and its administration 13.5.2014 Arrangement of insurance Payment proportion- al part of insurance 11 - BENZINA, s.r.o. Frame agreement for usage of Ben- zina cards 2.12.2014 Payments for fuel and services Provision of Benzina card 12 0125-2014 Butadien Kralupy a.s. Contract no. 0125-2014 of insurance and its administration - liability insur- ance - first layer 1.5.2014 Arrangement of insurance Payment proportion- al part of insurance 13 42-2010 Butadien Kralupy a.s. Framework contract to ensure the development and use of common information environment for mon- itoring UNIPETROL Group enviros including subsequent amendments 21.4.2010 Provision of services Payment for services 14 42-2010 Butadien Kralupy a.s. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 1.5.2010 Provision of services Payment for services Appendix No. 3

UNIPETROL, a.s. Annual report 2014 266 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 15 69-2010 Butadien Kralupy a.s. Loans agreement 28.5.2010 Provision of loan Payment for loan 16 70-2010 Butadien Kralupy a.s. Loans agreement 28.5.2010 Provision of loan Payment for loan 17 179-2008 Butadien Kralupy a.s. Loans agreement including subse- quent amendments 15.5.2008 Provision of loan Payment for loan 18 - ČESKÁ RAFINERSKÁ, a.s. Agreement on cooperation in HSE field 1.9.2009 Provision of services Payment of agreed price 19 - ČESKÁ RAFINERSKÁ, a.s. Maintenance fee for PIMS software 23.6.1996 Provision of services Payment of agreed price  20 135-2008 ČESKÁ RAFINERSKÁ, a.s. Usage of common information environment 1.1.2008 Provision of services Payment of agreed price 21 - ČESKÁ RAFINERSKÁ, a.s. Liability insurance company’s statu- tory bodies 8.7.2013 Provision of services Payment of agreed price 22 337-2008 ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Chvatěruby, Lobeček, Veltrusy 11.4.2000 Lease of lands Payment of agreed price 23 334-2008 ČESKÁ RAFINERSKÁ, a.s. Agreement on cancelation and es- tablishment of easement- Veltrusy 30.10.2000 Lease of lands Payment of agreed price 24 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Veltrusy, Zlončice 30.1.2001 Lease of lands Payment of agreed price 25 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Chvatěruby, Zlončice, Veltrusy 1.1.2003 Lease of lands Payment of agreed price 26 312-2008 ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Dolní Jiřetín, Záluží u Litvínova 11.4.2000 Lease of lands Payment of agreed price 27 349-2008 ČESKÁ RAFINERSKÁ, a.s. Agreement on cancelation and establishment of easement- Dolní Jiřetín, Záluží u Litvínova 1.1.2003 Lease of lands Payment of agreed price 28 - ČESKÁ RAFINERSKÁ, a.s. Agreement on cancelation and establishment of easement- Dolní Jiřetín, Záluží u Litvínova 1.1.2004 Lease of lands Payment of agreed price 29 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Veltrusy 1.1.2006 Lease of lands Payment of agreed price 30 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Veltrusy, Lobeček 1.1.2006 Lease of lands Payment of agreed price

UNIPETROL, a.s. Annual report 2014 267 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 31 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement- Chvatěruby, Veltrusy, Lobeček, Zlončice 1.1.2007 Lease of lands Payment of agreed price 32 - ČESKÁ RAFINERSKÁ, a.s. Agreement on cancelation and establishment - Záluží u Litvínova, Dolní Jiřetín 1.1.2006 Lease of lands Payment of agreed price 33 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement - Dolní Jiřetín 1.1.2007 Lease of lands Payment of agreed price 34 204-2008 ČESKÁ RAFINERSKÁ, a.s. Agreement to easement contracts 15.5.2007 Lease of lands Payment of agreed price 35 - ČESKÁ RAFINERSKÁ, a.s. Agreement on cancelation and es- tablishment of easement - Chvatěru- by, Veltrusy 1.1.2008 Lease of lands Payment of agreed price 36 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement - Záluží u Litvínova 1.1.2009 Lease of lands Payment of agreed price 37 - ČESKÁ RAFINERSKÁ, a.s. Agreement on establishment of easement – Chvatěruby 31.12.2008 Lease of lands Payment of agreed price 38 421-2008 ČESKÁ RAFINERSKÁ, a.s. Unipetrol - free use of wells 17.3.2009 Provision of services 39 - ČESKÁ RAFINERSKÁ, a.s. Agreement on the level of services provided - providing audited and unaudited financial information 19.12.2013 Payment of agreed price Provision of services 40 24-2012 MOGUL SLOVAKIA, s.r.o. Loan agreement 17.3.2009 Provision of loan Payment for loan 41 0150-2014 PARAMO, a.s. Contract no. 0150-2014 of insurance and its administration - liability insur- ance - 2nd layer 1.5.2014 Arrangement of insurance Payment for insur- ance 42 0127-2014 PARAMO, a.s. Contract no. 0127-2014 of insurance and its administration - liability insur- ance – 1st layer 1.5.2014 Arrangement of insurance Payment for insur- ance 43 30-2008 PARAMO, a.s. Framework contract to ensure the development and use of common information environment for mon- itoring UNIPETROL Group enviros including subsequent amendments 28.4.2008 Provision of services Payment for services 44 404-2008 PARAMO, a.s. CLA agreement including subse- quent contracts 1.1.2008 Provision of services Payment for services 45 196-2007 PARAMO, a.s. Frame contract on cost sharing 15.11.2007 Sharing of costs for legal services Payment for costs 46 139-2007 PARAMO, a.s. Loans agreement 23.7.2007 Provision of loan Payment for loan

UNIPETROL, a.s. Annual report 2014 268 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 47 243-2008 PARAMO, a.s. Loans agreement 16.6.2008 Provision of loan Payment for loan 48 77-2009 PARAMO, a.s. Contract for the provision of licenses (sublicences) for the use of SAP software and support including subsequent amendments 15.5.2009 Provision of services Payment for services 49 417-2008 PETROTRANS, s.r.o. CLA agreement including subse- quent amendments 1.1.2008 Provision of services Payment for services 50 97-2011 POLYMER INSTITUTE BRNO, spol. s r.o. Loans agreement 1.10.2011 Provision of loan Payment for loan 51 98-2011 POLYMER INSTITUTE BRNO, spol. s r.o. Loans agreement (overdraft) 1.10.2011 Provision of loans Payment for loans 52 81-2009 POLYMER INSTITUTE BRNO, spol. s r.o. Contract for the provision of licenses (sublicences) for the use of SAP software and support 15.5.2009 Provision of services Payment for services 53 76-2008 POLYMER INSTITUTE BRNO, spol. s r.o. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 1.1.2008 Provision of services Payment for services 54 0128-2014 POLYMER INSTITUTE BRNO, spol. s r.o. Contract no. 0128-2014 of insurance and its administration - liability insur- ance - first layer 1.5.2014 Arrangement of insurance Payment of the corresponding insur- ance 55 76-2008 POLYMER INSTITUTE BRNO, spol. s r.o. Contract to ensure the development and use of common information environment for monitoring UNIPET- ROL Group enviros 10.4.2008 Provision of services Payment for services 56 155-2007 UNIPETROL DOPRAVA, s.r.o. Agreement on establishment of easement Kralupy nad Vltavou 155-2007 5.9.2007 Usage of lands in Kralupy nad Vltavou Payment for services 57 143-2007 UNIPETROL DOPRAVA, s.r.o. Loan agreement S200/127/07 (143-2007) – usage of cash pool services 10.8.2007 Payment of interest The possibility of drawing loans 58 204-2007 UNIPETROL DOPRAVA, s.r.o. Loan agreement – usage of cash pool services 204-2007 17.4.2007 Possibility of drawing loans from cash pool Payment of interest 59 203-2007 UNIPETROL DOPRAVA, s.r.o. Loan agreement S200/87/07 (203-2007) 16.7.2007 Possibility of drawing loans Payment of interest 60 Bez čísla UNIPETROL DOPRAVA, s.r.o. Agreement on usage of frame agree- ment with DELL S400/082/00 1.4.2000 Possible supply of IT goods Payment of agreed price 61 15-2010 UNIPETROL DOPRAVA, s.r.o. Contract for usage of goodwill Unipetrol 1.1.2008 Usage of trade marks, logos of Unipetrol Payment of agreed price

UNIPETROL, a.s. Annual report 2014 269 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 62 408-2008 UNIPETROL DOPRAVA, s.r.o. Contract for the provision of comprehensive services - strategic management, logistics support, sales promotion, PR, financial and economic services 20.11.2008 Provision of speci- fied services Payment of agreed price 63 - UNIPETROL DOPRAVA, s.r.o. Cooperation agreement in HSEQ area 5.10.2009 Cooperation Cooperation (free of charge) 64 167-2009 UNIPETROL DOPRAVA, s.r.o. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 1.1.2010 Insolvency monitor- ing and information database Payment of agreed price 65 - UNIPETROL DOPRAVA, s.r.o. Agreement on Cooperation in the field of improving business perfor- mance (HSE) 23.10.2009 Cooperation Cooperation (free of charge) 66 92-2013 UNIPETROL DOPRAVA, s.r.o. Agreement on cancelation and es- tablishment of easement č. 92-2013 13.9.2013 Usage of property Not realized 67 - UNIPETROL DOPRAVA, s.r.o. Agreement on Cooperation in the field of improving business perfor- mance 2.11.2009 Cooperation Cooperation (free of charge) 68 497-2011 UNIPETROL DOPRAVA, s.r.o. Contract of conditions of buildings - revitalization of the catenary in Litvinov 25.8.2011 right implementation of the project free of charge 69 107-2011 UNIPETROL DOPRAVA, s.r.o. Agreement on site conditions - sid- ing extensions in Kralupy nad Vltavou 29.8.2011 right implementation of the project free of charge 70 106-2011 UNIPETROL DOPRAVA, s.r.o. Contract of conditions of construc- tion - modernization of signalling equipment on siding in Kralupy nad Vltavou 29.8.2011 right implementation of the project free of charge 71 40-2012 UNIPETROL DOPRAVA, s.r.o. Agreement on establishment of easement Chvatěruby 8.6.2012 Usage of lands Payment of agreed price 72 - UNIPETROL DOPRAVA, s.r.o. Contract easement rights projects - modernization of signalling equip- ment siding in Kralupy nad Vltavou 29.9.2011 Right implementa- tion of the project in the form of an easement free of charge 73 - UNIPETROL DOPRAVA, s.r.o. Contract easement rights structures - siding extensions in Kralupy nad Vltavou 29.9.2011 Right implementa- tion of the project in the form of an easement free of charge 74 - UNIPETROL DOPRAVA, s.r.o. Contract easement rights structures - revitalization OCL Litvinov 29.9.2011 Right implementa- tion of the project in the form of an easement free of charge 75 529-2011 UNIPETROL DOPRAVA, s.r.o. Contract of conditions of implemen- tation of the project - a system of recycling of waste water to PSC in Litvinov 18.10.2011 Right implementa- tion of the project free of charge 76 8-2014 UNIPETROL DOPRAVA, s.r.o. Insurance contract - insurance of non-technological equipment 1.1.2014 Insurance of equip- ment Payment of agreed price

UNIPETROL, a.s. Annual report 2014 270 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 77 18-2014 UNIPETROL DOPRAVA, s.r.o. Insurance contract - the insurance for members of statutory bodies 8.7.2013 Liability insurance Payment of agreed price 78 - UNIPETROL RPA, s.r.o Providing a common information environment 1.1.2004 Providing a common information environ- ment Payment of agreed price 79 - UNIPETROL RPA, s.r.o Delegation of rights and obligations 25.8.2005 Free of charge Delegation of rights and obligations 80  0148-2014 UNIPETROL RPA, s.r.o Contract no. 0148-2014 of insurance and its administration - liability insur- ance - 2nd layer 1.5.2014 Liability insurance Payment of insurance 81 - UNIPETROL RPA, s.r.o Spolana involvement in the project Salamanca and the need to share information 9.7.2014 Cooperation Cooperation 82  0129-2014 UNIPETROL RPA, s.r.o Contract no. 0129-2014 of insurance and its administration - liability insur- ance - first layer 1.5.2014 Liability insurance Payment of insurance 83 - UNIPETROL RPA, s.r.o The contract for the supply of energy services and water 1.1.2014 Cash payment supply of energy servic- es and water 84  101-2012 UNIPETROL RPA, s.r.o Cancellation of easement - on this land will be easement for SYNTHOS - according to the contract 77-2012. Establishment of easement - land were bought from Palivový kombinát, s.p. in order to unify the territory which uses Unipetrol RPA. 9.4.2013 Cancelation and estab- lishment of easement Cancelation of agree- ment 85  14-2010 UNIPETROL RPA, s.r.o Agreement of usage of trade marks 1.1.2009 Provision of trade marks Payment 86 126-2010 UNIPETROL RPA, s.r.o. Agreement on establishment of easement 27.8.2010 Easement use of real estate Payment 87 313-2008 UNIPETROL RPA, s.r.o. Agreement on cancelation and establishment of easement 10.1.2001 Easement use of real estate., cancelation and establishment of easement Payment 88 - UNIPETROL RPA, s.r.o. Agreement on easement contracts 27.12.1999 Condition of easement Payment 89 79-2009 UNIPETROL RPA, s.r.o. Agreement for SAP licence supplies 1.5.2009 SAP licence supplies Payment for licence 90 - UNIPETROL RPA, s.r.o. Agreement replaced with the new conditions of the original contract on lease and services no. 084/2002 / NPM including amendments. 1.4.2009 Financial payment Modification of lease- hold – reduction by two offices 91 - UNIPETROL RPA, s.r.o. Determination of rights and respon- sibilities in administration of real estate owned by UNIPETROL, a.s. 1.1.2000 Financial payment Determination of rights and responsibilities in administration of real estate owned by UNIPETROL, a.s.

UNIPETROL, a.s. Annual report 2014 271 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 92 - UNIPETROL RPA, s.r.o. Service agreement 18.12.2008 Advisory services Payment 93 - UNIPETROL RPA, s.r.o. Agreement on cancelation and establishment of easement 12.5.2008 Change of price by inflation Payment 94 244-2008 UNIPETROL RPA, s.r.o. Increase of credit line from 7,5 bln. CZK to 9,75 bln. CZK 25.6.2008 Increase of credit line from 7,5 bln. CZK to 9,75 bln. CZK Payment 95 22-2009 UNIPETROL RPA, s.r.o. Renting space in st. 2838 including the provision of services - driveways 1.3.2008 Payment Renting space in st. 2838 including the provision of services - driveways 96 - UNIPETROL RPA, s.r.o. Agreement on easement contracts 1.1.2008 Payment Easement to listed real estate 97 21-2008 UNIPETROL RPA, s.r.o. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group business unit enviros 1.1.2008 Rights and obliga- tions in ensuring the development and use of a common informa- tion environment for monitoring around the Unipetrol Group and business unit Payment 98 20-2008 UNIPETROL RPA, s.r.o. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 1.1.2008 Rights and obliga- tions in ensuring the development and use of a common informa- tion environment for environmental moni- toring group Unipetrol, production Payment 99 - UNIPETROL RPA, s.r.o. Agreement on cancelation and establishment of easement 1.12.2006 Cancelation of ease- ment contracts Establishment and can- celation of easement contract 100 - UNIPETROL RPA, s.r.o. The contract covers provision and protection of information in develop- ment of SSC 22.11.2006 Sharing of business information and obli- gation not to disclose further Sharing of business information and obli- gation not to disclose further 101 - UNIPETROL RPA, s.r.o. Agreement on cancelation and establishment of easement 1.4.2006 Establishment and cancelation of ease- ment contract Establishment and can- celation of easement contract 102 - UNIPETROL RPA, s.r.o. Agreement on cancelation and establishment of easement 8.12.2004 Establishment and cancelation of ease- ment contract Establishment and can- celation of easement contract 103 - UNIPETROL RPA, s.r.o. Easement 11.3.2003 Establishment of ease- ment contract Free of charge 104 402-2008 UNIPETROL RPA, s.r.o. CLA agreement, including subse- quent amendments 1.1.2008 Provision of services Payment for services 105 16-2010 UNIPETROL SERVICES, s.r.o. Agreement for usage of GOODWILL UNIPETROL, including subsequent amendments 1.1.2009 Provision of goodwill Payment for goodwill 106 401-2008 UNIPETROL SERVICES, s.r.o. CLA agreement, including subse- quent amendments 1.1.2008 Provision of services Payment for services 107 27-2009 UNIPETROL SERVICES, s.r.o. Cooperation agreement - HSE 1.2.2009 Cooperation between parties Cooperation, provision of information, confi- dentiality

UNIPETROL, a.s. Annual report 2014 272 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 108 207–2007 UNIPETROL SERVICES, s.r.o. Services contract, including subse- quent amendments 1.4.2007 Provision of services Payment for services 109 16-2008 UNIPETROL SERVICES, s.r.o. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 1.1.2008 Provision of services Payment for services 110 18-2009 UNIPETROL SERVICES, s.r.o. Contract for sublease office space and related services from 1 February 2009 1.2.2009 Payment for sublease office space Sublease office space 111 32-2012 UNIPETROL SERVICES, s.r.o. Contract for vehicle lease 1.6.2012 Payment for vehicle lease Vehicle lease 112 8.12 UNIPETROL SERVICES, s.r.o. Contract for vehicle lease 20.2.2012 Payment for vehicle lease Vehicle lease 113 57-2011 UNIPETROL SERVICES, s.r.o. Contract for vehicle lease, including subsequent amendments 1.7.2011 Vehicle lease Payment for vehicle lease 114 188-2007 UNIPETROL SERVICES, s.r.o. Loan agreement 3.9.2007 Provision of loan Payment of interest 115 78-2009 UNIPETROL SERVICES, s.r.o. Contract for the provision of licenses (sublicences) for the use of SAP software and support, including subsequent amendments 15.5.2009 Provision of licences Payment for licences 116 190-2007 UNIPETROL SERVICES, s.r.o. Loan agreement 3.9.2007 Provision of loan Payment of interest 117 190-2007 UNIPETROL SERVICES, s.r.o. Agreement on usage benefits from trademarks, logos and other brands 1.1.2010 Provision of trade marks Payment for trade- marks and logos 118 2.11 UNIPETROL SLOVENSKO, s.r.o. CLA agreement, including subse- quent amendments 1.1.2008 Provision of services Payment for services 119 406-2008 UNIPETROL SLOVENSKO, s.r.o. Contract no. 0131-2014 of insurance and its administration - liability insur- ance - first layer 1.5.2014 Arrangement of insur- ance Payment for insurance 120 0131-2014 Výzkumný ústav anorganické chemie, a.s. Framework contract to ensure the development and use of common information environment for moni- toring UNIPETROL Group enviros 1.1.2008 Provision of services Payment for services 121 0126-2014 ORLEN Asfalt Česká republika s.r.o. Contract no. 0126-2014 of insurance and its administration - liability insur- ance - first layer 1.5.2014 Arrangement of insur- ance Payment for insurance 122 144-2010 ORLEN Asfalt Sp. z o.o. Confidentiality agreement 25.10.2010 Confidentiality of the information provided Confidentiality of the information provided 123 57-2012 ORLEN FINANCE AB Agreement on accession, including subsequent amendments 30.6.2012 Join the group Provision of coopera- tion to join the group 124 100-2010 ORLEN Medica, Sp. z o.o. Contract for provision of health services 1.2.2010 Payment for services Provision of health services

UNIPETROL, a .s . Annual report 2014 273 Report on relations No. No. of agreement or purchase order Contracting party Subject of the agreement Agreement date Service by UNIPETROL, a.s. Counter-service 125 143-2010 ORLEn OIL Sp. z o.o Confidentiality agreement 25 .10 .2010 Confidentiality of the information provided Confidentiality of the information provided 126 225-2007 Polski Koncern naftowy ORLEn S.A. Agreement on cooperation in the framework of internal audit 31 .8 .2007 Provision of services Payment for services 127 20-2009 Polski Koncern naftowy ORLEn S.A. Frame agreement 1 .1 .2009 Provision of services Payment for services 128 112-2011 Polski Koncern naftowy ORLEn S.A. Agreement on mutual provision of personnel 1 .1 .2011 Provision of personnel Payment for services 129 61-2013 Polski Koncern naftowy ORLEn S.A. Agreement on cooperation in the framework of internal audit 1 .7 .2013 Provision of informa- tion and confidentiality Provision of informa- tion and confidentiality 130 13-2010 Polski Koncern naftowy ORLEn S.A. Cooperation agreement 1 .2 .2010 Cooperation Cooperation 131 18-2012 Polski Koncern naftowy ORLEn S.A. Framework agreement for the provi- sion of IT services 1 .1 .2012 Payment for IT servicesProvision of IT services 132 15-2014 Polski Koncern naftowy ORLEn S.A. Loan agreement 12 .12 .2013 Payment for loan Provision of loan 133 0171-2014 Polski Koncern naftowy ORLEn S.A., AnWIL S.A. Agreement on cooperation in the field of central procurement 24 .10 .2014 Payment of the con- tract price Provision of business and market information 134 84-2013 SPOLAnA, a.s. Agreement on cooperation 1 .8 .2013 Provision of services Payment for services

UNIPETROL, a.s. Annual report 2014 274 Glossary Glossary Atmospheric distillation unit Unit for atmospheric distillation of crude oil (dividing crude oil into lighter fractions according to their boiling temperature) under slight positive pressure and temperatures up to 350-400 °C. Azeri Light crude oil Light, low sulphur crude oil from Azerbaijan. Brent-Ural differential The difference between Brent (mix of North Sea crude oils) quoted price and Ural (Russian export crude oil) quoted price. COCO (Company Owned – Company Operated) A filling stations operating model – filling stations are owned and operated by the same company. CODO (Company Owned – Dealer Operated) A filling stations operating model – filling stations are owned by the company and are operated by dealers under a contract with the company. Compressed Natural Gas (CNG) Natural gas (mainly composed of methane) stored at high pressure. CNG be used in place of gasoline, diesel fuel or propane. Conversion capacity A total amount of crude oil which can be processed in a refinery – usually stated in mt/y (million tons per year). CPC Blend crude oil Light crude oil from Western Kazakhstan which consists of several crude oil streams. D-A-CH region German speaking countries (Deutschland, Austria, Schweiz). DOFO (Dealer Owned – Franchise Operated) A filling stations operating model operated under franchise – filling stations are not owned by the company. Downstream This sector of the oil and gas industry commonly refers to the refining of petroleum crude oil, and processing and purifying of raw natural gas, as well as to the marketing and distribution of the products derived from crude oil and natural gas. Ethylene Also known as ethene is a hydrocarbon produced in the petrochemical industry most often by steam cracking of crude oil products (ethane, LPG, naphtha). Ethylene is widely used in the chemical industry. Fluid Catalytic Cracking (FCC) Fluid catalytic cracking is one of the most important catalytic conversion processes used in petroleum refineries. It is widely used to convert the high-boiling, high-molecular-weight hydrocarbon fractions from petroleum crude oil (residues from atmospheric distillation, vacuum distillate) to more valuable and demanded products such as gasoline, unsaturated LPG, middle distillates and other products. The FCC process operates at high temperature and moderate pressure, with a fluidized powdered catalyst. Glossary, financial terms and abbreviations

UNIPETROL, a.s. Annual report 2014 275 Glossary High density polyethylene (HDPE) It is a polyethylene thermoplastic made from ethylene commonly used in the production of plastic bottles, corrosion-resistant piping, geomembranes and plastic lumber. Hydrocracking Hydrocracking is another important catalytic conversion process used in petroleum refineries. It is used for the conversion of high- boiling, high-molecular-weight hydrocarbon fractions from petroleum crude oil (vacuum distillate) to more valuable and demanded products such as diesel, gasoline, unsaturated LPG or synthetic oils by the addition of hydrogen under high pressure and in the presence of a catalyst. Hydroskimming It is one of the simplest types of refinery. It is defined as a refinery equipped with atmospheric distillation, naphtha reforming and necessary treating processes. Ingolstadt-Kralupy-Litvínov pipeline (IKL) The IKL pipeline is a crude oil pipeline in Central Europe. It allows to transport a crude oil from Germany to the Czech refineries in Kralupy and Litvínov. Liquefied Petroleum Gas (LPG) It is a flammable mixture of hydrocarbon gases, predominantly with three or four carbon atoms in a molecule, used as fuel in heating appliances and vehicles, as well as an aerosol propellant and refrigerant. Olefin Also known as alkene is an unsaturated hydrocarbon with one double bond between carbon atoms. Alkenes are produced during catalytic or thermal cracking without the presence of hydrogen. Polyolefin It is a polymer also known as polyalkene, produced from simple olefins. It is used for blown film and heatshrink electrical insulation sleeves, as well as under garments for wetsuits. Petrochemical olefin margin (Unipetrol model) Revenues from sold products (100% Products = 40% Ethylene + 20% Propylene + 20% Benzene + 20% Naphtha) minus costs (100% Naphtha). Product prices are according to benchmark quotations in euros per ton. Petrochemical polyolefin margin (Unipetrol model) Revenues from sold products (100% Products = 60% Polyethylene/HDPE + 40% Polypropylene) minus costs (100% input = 60% Ethylene + 40% Propylene). Product prices are according to benchmark quotations in euros per ton. Polypropylene (PP) Also known as polypropene, is a thermoplastic polymer used in a wide variety of applications, including packaging and labeling, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes. POX unit A unit where the gasification of oil distillates (partial oxidation reaction) takes place. It is commonly used for the liquidation of the hardest unprocessable residues from the refinery and it produces synthetic gas, consisting primarily of hydrogen and carbon monoxide. Yield of hydrogen can be increased in the shift reactor by reaction of CO with steam. Pure hydrogen is used in the refinery and for ammonia production. Propylene Also known as propene or methyl ethylene is an unsaturated organic compound. It is produced as a by-product during the pyrolysis of fossil fuels – mainly petroleum and natural gas.

UNIPETROL, a.s. Annual report 2014 276 Glossary Pyrolysis It is a chemical reaction during which organic materials are thermally decomposed without the presence of any oxygen. Pyrolysis gasoline It is a high aromatic naphtha product which arises during the pyrolysis of naphtha or hydrocrackates in a steam cracker unit. Refining margin (Unipetrol model) Revenues from products sold (96% Products = Gasoline 17%, Naphtha 20%, JET 2%, Diesel 40%, Sulphur Fuel Oils 9%, LPG 3%, Other feedstock 5%) minus costs (100% input = Brent Dated). Product prices are according to benchmark quotations in dollars per barrel. Steam cracker unit Steam cracker units are facilities in which a feedstock such as naphtha, HCVD, liquefied petroleum gas (LPG), ethane, propane or butane are thermally cracked through the use of steam in a bank of pyrolysis furnaces to produce lighter hydrocarbons. The products (yield of ethylene, propylene, benzene, aromatics, butadiene) obtained depend on the composition of the feedstock, the hydrocarbon-to-steam ratio, and on the cracking temperature and furnace residence time. Steam cracking Steam cracking is a petrochemical process in which saturated hydrocarbons are broken down into smaller, often unsaturated, hydrocarbons. It is the principal industrial method for producing the lighter alkenes (or commonly olefins), including ethene (or ethylene) and propene (or polypropene). Transalpine pipeline (TAL) The Transalpine pipeline is a crude oil pipeline which connects Italy, Austria and Germany. It starts from the marine terminal in Trieste, runs through the Alps to Ingolstadt. It is connected with the IKL pipeline in Vohburg. Vacuum distillation Leftover from atmospheric distillation of crude oil (long residue) is often distillated in the second – vacuum – distillation under lower pressure conditions (2 – 10 kPa). With lower pressure the boiling point of present compounds is also lower. Therefore it is possible to distillate crude oil (mazut) at temperatures to 360 - 400 °C and to get another fractions without any thermal degradation. Financial terms CAPEX Capital expenditures Financial gearing ratio It is a ratio of net debt to equity. Free Cash Flow (FCF) Sum of operating and investing cash flow Net debt Difference between financial debt (interest-bearing liabilities) and cash Net working capital Sum of inventories and trade and other receivables less trade and other liabilities Operating profit – EBIT Earnings before financial result and taxes Operating profit – EBIT LIFO Earnings before financial result and taxes; LIFO method used for inventories valuation (Last-In-First-Out) Operating profit – EBITDA Earnings before depreciation and amortization, financial result and taxes Operating profit – EBITDA LIFO Earnings before depreciation and amortization, financial result and taxes; LIFO method used for inventories valuation (Last-In-First-Out)

UNIPETROL, a.s. Annual report 2014 277 Glossary Abbreviations a.s. Public limited company (Czech Republic) AG Public limited company (Germany) AVD Atmospheric and Vacuum Distillation B.V. Limited liability company (Netherlands) BA Automotive gasoline Bbl Barrel BCPP Prague Stock Exchange BU Business unit B2B Business-to-Business B2C Business-to-Consumer CSR Corporate Social Responsibility ČAPPO Czech Association of Petroleum Industry and Trade (Česká asociace petrolejářského průmyslu a obchodu) ČNB Czech National Bank ČOI Czech Trade Inspection (Česká obchodní inspekce) EIA Environmental Impact Assessment EMS Environmental Management System ERP System Enterprise Resource Planning System ESRA European Synthetic Rubber Association

UNIPETROL, a.s. Annual report 2014 278 Glossary ETBE Ethyl tert-butyl ether EU European Union EU ETS EU emissions trading scheme (regulating trading with carbon dioxide emission allowances) FAME Fatty Acid Methyl Esters FTE Full time equivalent number of employees GmbH Limited liability company (Germany) HR Human Resources IČ Identification number IFRS International Financial Reporting Standards IPPC Integrated Pollution Prevention and Control IR Investor Relations IRZ Integrated Pollution Registry IT Information Technology Ltd. Limited liability company (Great Britain) MBO Management by Objectives MEŘO Coleseed oil methyl ester N.V. Public limited liability corporation (Netherlands) NGO Non-governmental organisation OECD Organization for Economic Co-operation and Development

UNIPETROL, a.s. Annual report 2014 279 Glossary OHSAS Occupational Health and Safety System OPEC Organization of the Petroleum Exporting Countries PIB POLYMER INSTITUTE BRNO, spol. s r.o. PR Public Relations QMS Quality Management System R&D Research and development REACH Registration, evaluation, authorization and restriction of chemicals. EU Regulation concerning chemicals. REBCO/REB Russian Export Blend Crude Oil S.A. Public liability company (Poland) s.r.o. Limited liability company (Czech Republic) SCM Supply Chain Management SLA Service level agreement (service contract for externally provided – outsourced services) Sp. z o.o. Limited liability company (Poland) SSC Shared Services Centre UNEP United Nations Environment Programme UniCRE Unipetrol Centre for Research and Education, currently under construction in Chempark Záluží in Litvínov ÚOHS Antimonopoly Office in the Czech Republic (Úřad pro ochranu hospodářské soutěže) VÚAnCh Research Institute of Inorganic Chemistry in Ústí nad Labem (Výzkumný ústav anorganické chemie v Ústí nad Labem)

UNIPETROL, a.s. Annual report 2014 280 Identification and contact information Name: UNIPETROL, a.s. Registered office: Na Pankráci 127, 140 00 Praha 4 Company number: 61672190 Tax ID: CZ61672190 Bank: Česká spořitelna, a.s. Olbrachtova 1929/62, 140 00, Prague 4, Account No. 910952/0800 Date of establishment: 27 December 1994 – established for an indeterminate period of time Datum of incorporation: Incorporated on 17 February 1995 Incorporation registration: Municipal Court in Prague, Section B, File 3020 Legal form: Public limited company, organized under Czech law Tel.: +420 225 001 417 (Investor Relations Department) +420 225 001 407 (Press Department) Website: www.unipetrol.cz E-mail: ir@unipetrol.cz Auditor: KPMG Česká republika Audit, s.r.o. Law and legal regulation under which the issuer was established Law: Law of the Czech republic Legal regulation: Act No. 104/1990 on Public Limited Companies The company is a member of the Unipetrol Consolidation Group. The names of Unipetrol Group companies (UNIPETROL, a.s., BENZINA s.r.o., ČESKÁ RAFINÉRSKÁ, a.s., PARAMO, a.s., UNIPETROL RPA, s.r.o. and others) appear in this report also in their simplified form (Unipetrol, Benzina, Česká rafinérská, Paramo, Unipetrol RPA etc.). The English language version of Unipetrol‘s Annual Report 2014 is a convenience translation. The version in the Czech language is the definitive version. Annual Report 2014 of UNIPETROL, a.s. was approved for issue by the Board of Directors of UNIPETROL, a.s. on the meeting held on 24 March 2015. Identification and contact information