Poland

At the end of 2007, in Poland the Company managed a network of 1,897 fuel stations operating in the  premium and economy segments. The Company considers the offer of economy stations under the Bliska brand as an effective tool for strengthening its market position and achieving the assumed strategic objective. By the end of 2010, the number of economy stations under the Bliska brand in the Company’s retail network in Poland is expected to increase to appr. 900 outlets.

Implementing the assumptions accepted in 2007, PKN ORLEN built 36 and modernised 139 of its own fuel stations. In effect, the number of facilities belonging to the Company in 2007 increased to 671 stations under the ORLEN brand and 243 stations under the Bliska brand. The franchise network in the same period comprised 180 ORLEN stations and 65 Bliska stations. By the end of 2009, the Company plans to increase the number of stations operating within the franchise system to appr. 500 stations.

Within the 12 months of 2007, the Company sold over 4.5 billion litres of engine fuels in its Polish retail network. The effective strategy enabled the Company to increase its share in the Polish retail market to a level of 35.2 percent ^[1].

In Poland, 2007 was the second full year of sales of the enriched Verva fuels. Within 12 months, the Company carried out a series of marketing measures aimed at strengthening the perception of the brand attributes and supporting fuel sales. In effect, the total volume of Verva fuel sold in 2007 increased in comparison with 2006 by as much as 41.5 percent. The total sales of Verva 98 and Verva ON fuels made up over 18 percent of the total fuel sales at ORLEN stations in Poland. Verva fuels were the most popular in large cities among motorists who appreciate dynamic driving and the highest quality of products.

Number of fuel stations in Poland per brand in 2006–2007

Brand	2006	2007
ORLEN	726	851
Bliska	176	308
Petrochemia Płock / CPN	1 030	738
Total	1 932	1 897

 

Number of fuel stations in Poland per ownership structure in 2006–2007

Station status	2006	2007
Own stations	1 429	1 410
Franchised stations	158	245
Affiliated stations	345	242
Total	1 932	1 897

From 1 September 2007 to 31 December 2007, in order to prepare for the implementation of the National Index Target, the Company carried out trial sales of the B100 ecological diesel oil at 15 Bliska stations in southern Poland. Wide introduction of bioester to the product range at the Bliska economy stations is planned in 2008.                   (www.e-biopaliwa.pl)

 Fuel sales in 2006–2007 (in millions of litres) - PKN ORLEN

PKN ORLEN	2006	2007
Engine petrol	1 745,20	1 750,50
Diesel	1 971,20	2 269,70
LPG	403	519,2
Total	4 119,40	4 539,30

 

In 2007, PKN ORLEN successfully launched new fleet card ranges aimed at the heavy road transport segment and small and medium-sized enterprise segment. Due to an increased number of customers, fuel sales with fleet cards in 2007 increased by 49 percent, compared to 2006. As at the end of December 2007, fuel cards were accepted at almost 1,700 of the Company’s stations in Poland, including all ORLEN and Bliska outlets.

Under the non-cash FLOTA programme, at the turn of 2006 and 2007, the Company launched two innovative services under the name of “Golden Trail” and “Your Local Station”. Both services are aimed at companies with large vehicle fleets and specific requirements regarding fuel purchases.

As opposed to corporate companies, customers operating small and medium-sized fleets were able to use a product under the name of “Your Local Discount”. Under cash agreements concluded at the Company’s own stations, these customers were provided with discounts for fuel purchases and a monthly invoice for all transactions carried out.

Already, for the third year in the row, international carriers have been able to use the DKV/ORLEN co-branded cards issued by the Company. The number of cards issued in 2007 increased by appr. 80 percent compared to 2006. The DKV/ORLEN card allows non-cash purchase of fuels, goods, car accessories and road services to be made at 20,000 stations and in 6,000 service facilities in Europe. In Poland, the DKV/ORLEN card is available at all stations that accept the fl eet card. Among outlets accepting co-branded cards abroad, there were 514 stations in Germany and 159 stations in the Czech Republic.

In 2007, a unified non-fuel category management system was implemented in the Company’s retail network. Shop product range lists, pricing policy and the form of product exhibition underwent optimisation. At the end of the year, the premium station offer was expanded by Stop Cafe Bistro food facilities and Stop Cafe coffee facilities, whose wide introduction to ORLEN stations is planned for 2008.

Positive changes in the retail area attracted approximately 0.5 million new customers to the Company’s retail network. In effect, the number of VITAY loyalty programme cards issued as at the end of 2007 exceeded 6.8 million and was approximately 7.5 percent higher than in the preceding year. The VITAY Programme is a programme for regular customers of ORLEN stations in Poland. As of 2007, participants in the programme may include both individual persons and companies using the FLOTA cards. In the VITAY programme, in return for purchasing fuels, services and selected products, customers receive points exchangeable for attractive rewards, including fuel.

[1] Share in the panel of 100 largest participants in the market on the basis of ARE data. PKN ORLEN sales relate to the CODO and DOFO channels.