DOCUMENTS FOR THE ANNUAL GENERAL MEETING

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MOL Plc. Annual General Meeting 2013 Documents …and increases in revenues of 30% Selective investments to strengthen captive markets Improve Croatian Downstream In our main growth markets, Serbia and Romania, we are extending our wholesale, retail and logistics presence in parallel. New initiatives were launched to increase sales of LPG, lubricants, fuel cards and implement the local market supply concept for further profit maximisation. Revision of our petrochemicals product portfolio resulted in new concepts in monomer and polymer sales. By making use of our production flexibility and marketing opportunities, we are aiming to achieve significant revenue growth for these product lines. Beside small and mid-scale projects in the New Downstream Program, MOL Group Downstream is committed to strategic investments in the region. Two projects were launched in 2012 by the Petrochemicals Division: a new butadiene extraction unit in Tiszaújváros with the strategic aim of improving olefin co-product value from 2015 onwards and the installation of a new LDPE unit by the end of 2015 in Bratislava, replacing three old, subscale units thus creating further benefits from Refining-Petrochemicals integration. We are also committed to further improving our retail network in the CEE region, with special focus on Romania, Serbia and the Czech Republic, to provide greater captive markets for our refineries. Secure sales are especially important in the oversupplied gasoline market, while higher margin contribution can improve Divisional profitability. Flexible operation of assets and short-term efficiency measures are aimed at improving Croatian downstream profitability. By implementing modernisation and efficiency improvement measures in the Logistics, Refining, Lubricants and Retail Divisions, INA is now a significant contributor to the MOL Group’s New Downstream Program. In the mid-term, a residue upgrade project is planned in the Rijeka refinery to increase the proportion of white product yield. A final investment decision is expected after basic design completion. GAS MIDSTREAM SEGMENT OVERVIEW The Division’s results decreased in full year 2012, since positive contributions from FGSZ and MMBF, on the back of increased international transit and commercial storage activities, were more than offset by increasing losses at our Croatian trading company, Prirodni Plin. FGSZ Ltd. FGSZ received an ITO licence - among the first in 2012 In line with EU Directive 2009/73/EC, natural gas suppliers must operate independently of both holding companies and subsidiaries. FGSZ took the necessary measures to continue its system operations and gas transmission activities within the framework of the new legal 23/94
MOL Plc. Annual General Meeting 2013 Documents model. FGSZ was therefore among the first companies to receive an Independent Transmission Operator (ITO) licence in 2012. A stable operating profit contribution Domestic transmission revenues increased by 8% after the end of tariff freezing Slightly higher transit revenues due to the favourable FX effects Higher gas prices and higher depreciation increased operating costs Changes in regulated gas transmission tariffs Operating profits for FGSZ in 2012 were in line with higher revenues which were able to compensate for increased expenditure. Revenues from domestic transmission totalled HUF 79.8bn, 8% higher than the base period, mainly due to surplus daily and monthly capacity bookings and lower base figures as a result of tariff freezing which had no effect in 2012. Revenue from natural gas transit showed a 9% increase compared with the base period, mainly due to southward (Serbian and Bosnian) transit transmission. While volumes decreased by 6%, favourable changes in foreign exchange rates over-compensated for this negative effect. Operating costs were higher by 13% than the base period mainly due to increased natural gas consumption by the transmission system, increased natural gas prices and increased depreciation as a result of tangible assets capitalised in the previous year. Changes in the regulatory environment A dual tariff system was introduced on 4 th December, 2010. In compliance with this system, tariffs for 2012 were calculated on an asset-based return of 4.5% with regard to consumers entitled to universal service, while for customers purchasing gas in the competitive marketplace, the calculation continued to be on assetbased returns of 8.78%. Taking into account the rate of consumers entitled to universal service, which rate is used by the Hungarian Energy Office to calculate transmission tariffs. The weighted average revenue of the natural gas transmission system was therefore approximately 6.5% in 2012. The unfavourable effect of the change in the number of consumers entitled to universal service in the second half of 2012 was compensated for by higher revenues and cost reductions. Starting from 1 st January 2013, the asset-based return was decreased to 2.28% from 4.5% for consumers entitled to universal service, while for customers purchasing gas in the competitive marketplace, the calculation remained unchanged. This implied a weighted average natural gas transmission system revenue of approximately 5.5%, for the time being. MMBF Ltd. Strategic and commercial gas storage With three years operational experience, the underground gas storage facility proved to be a reliable part of Hungary’s domestic gas infrastructure which guarantees the security of supply. 24/94
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DOCUMENTS FOR THE ANNUAL GENERAL MEETING

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