PRESENTATION OF Q RESULTS November 9th

Transcription

1 PRESENTATION OF Q RESULTS November 9th 2017

2 AGENDA Page Key Developments 3 Investments 8 Grupa Azoty Group 11 Grupa Azoty PUŁAWY 28 Grupa Azoty POLICE 35 Grupa Azoty KĘDZIERZYN 42 Appendices 49 2 GRUPA AZOTY GROUP 2

3 KEY DEVELOPMENTS IN Q POLYAMIDE PLANT II POLICE POLYMERS PROCESS OPTIMISATION ACCOLADES: THE BEST ANNUAL REPORT START OF CONSTRUCTION OF R&D CENTRE REORGANISATION 90 YEARS OF GRUPA AZOTY LEADER OF POLISH EXPORTS AND AMBER OF POLISH ECONOMY GRUPA AZOTY GROUP 3

4 Q PERFORMANCE DRIVERS PLASTICS DRIVE HIGH EBITDA MARGINS HIGH PRICES OF NATURAL GAS LIMIT EARNINGS POTENTIAL OF UREA-BASED FERTILIZERS AND CHEMICALS HISTORICALLY HIGH PIGMENT PRICES SUPPORT RECORD HIGH PROFITABILITY OF THE BUSINESS GROWING IMPORTS OF NITRATE FERTILIZERS CONTRIBUTE TO GREATER COMPETITION AND LOWER PRICES GROWING UREA PRICES DRIVE HIGHER PRICES OF NITRATE FERTILIZERS VS Q HIGH PROPYLENE PRICES LEAD TO LIMITED EARNINGS POTENTIAL IN OXO AREA GRUPA AZOTY GROUP 4

5 GRUPA AZOTY FINANCIAL HIGHLIGHTS PLNm EBITDA Q REVENUE 2, EBITDA MARGIN 12% Jan Sep , % NOTE Nearly 7% y/y increase in sales delivered on effective sales efforts in Plastics and Chemicals (Pigments and OXO) Historically high EBITDA in Q EBITDA growth of nearly PLN 132m y/y with a margin of 13.7% close to strategic KPIs Strong gross margins supported by production efficiency NET PROFIT High costs of natural gas offset by higher ammonia production efficiency 26% y/y increase in net profit supports positive assessment of operating and financial performance GRUPA AZOTY GROUP 5

6 GROUP COMPANIES FINANCIAL HIGHLIGHTS JAN SEP 2017 VS JAN SEP 2016 PLNm REVENUE EBITDA Grupa Azoty (separate data) 1,159 1, Grupa Azoty Puławy Group 2,470 2, Grupa Azoty Police Group 1,841 1, Grupa Azoty Kędzierzyn 1,231 1, Jan-Sep 2016 Jan-Sep 2017 GRUPA AZOTY GROUP 6

7 GROUP COMPANIES FINANCIAL HIGHLIGHTS Q VS Q PLNm REVENUE EBITDA Grupa Azoty (separate data) Grupa Azoty Puławy Group Grupa Azoty Police Group Grupa Azoty Kędzierzyn Q Q GRUPA AZOTY GROUP 7

8 INVESTMENTS

9 INVESTMENTS PLNm Q GROWTH CAPEX 85.3 Jan Sep 2017 MAINTENANCE CAPEX 41.3 MANDATORY CAPEX 18.3 PURCHASE OF FINISHED GOODS 9.4 COMMITTED FUNDS OTHER (COMPONENTS, MAJOR OVERHAULS) 46.5 TOTAL CAPEX 2017 PLN 1.3bn INVESTMENTS 9

10 POLICE POLYMERS Decision of the special purpose vehicle to expand the project scope to include polypropylene unit Budgeted cost of the project: EUR 1.27bn Start of construction end of 2019 Commercial commissioning 2022 Location: Pomeranian Special Economic Zone (up to PLN 428m of state aid) Pending corporate approval at Grupa Azoty MANUFACTURING COMPLEX PROPYLENE UNIT POLYPROPYLENE UNIT SEA TERMINAL WITH FEEDSTOCK TANK FARM AUXILIARY AND LOGISTICS INFRASTRUCTURE BENEFITS: diversification of revenue streams, additional profits for the Group, expansion of the Group's product portfolio, flattening of business cycles INVESTMENTS 10

11 GRUPA AZOTY GROUP

12 GRUPA AZOTY GROUP FINANCIAL HIGHLIGHTS PLNm REVENUE 2,000 2,323 2,687 2,183 2,196 6,634 7,066 Q Q Q Q Q % Jan-Sep 2016 Jan-Sep 2017 EBITDA EBITDA (adjusted)* EBITDA MARGIN 7.7% 7.2% % 12.0% Q Q Q12017 Q Q Jan-Sep 2016 Jan-Sep 2017 NET PROFIT 9.5% NET PROFIT (adjusted)* NET PROFIT MARGIN 5 0.3% 1.2% % % Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 In 2016, the Group s results were adjusted for impairment losses on AIG (subsidiary) and the fat processing unit, and in 2017 for impairment losses on the fat processing unit. GRUPA AZOTY GROUP 12

13 EBITDA Q SEGMENTS OF GRUPA AZOTY GROUP (PLNm) positive effect on EBITDA negative effect on EBITDA Another quarter with Plastics solid contribution to the results on supportive market and low-base effect year on year Nearly 100% increase in PA6-benzene deltas translated into significant EBITDA growth in Plastics More than 20% growth in gas prices and the effect of high product price base (mainly in Q1 2016) contributed to negative performance deviations in Fertilizers Marked improvement in Fertilizers EBITDA on increased production (as a result of different timing of maintenance shutdowns in Q and Q2 2017) and higher sales volumes GRUPA AZOTY GROUP 13

14 STRUCTURE OF REVENUE IN JAN SEP 2017, BY SEGMENT CHANGE IN REVENUE Agro Fertilizers -1% Agro - Fertilizers 53% Chemicals 27% Chemicals +13% Plastics +31% Plastics 16% Energy +3% Other Activities -10% Other Activities 2% Energy 2% GRUPA AZOTY GROUP 14

15 AGRO FERTILIZERS Q REVENUE Q Agro - Fertilizers 51% Chemicals 29% Agro Fertilizers PLN 1,108m MARKET POSITION Plastics 16% Poland 1 Other Activities 2% Energy 2% EU 2 GRUPA AZOTY GROUP 15

16 RAW MATERIALS PROSPECTS Forecast gradual increase in gas prices through year end 2017 driven by seasonal weather changes (winter), with a downward trend expected in the following months; however, the prices will be most strongly affected by movements in coal prices and possible temperature deviations from the long-term average Persistently high prices of coal on global and domestic markets Growing oil prices may translate into higher prices of petroleum products GAS PRICES EUR/MWh Q Q Q Q Q Q Q Q Q Q Q PGNiG tariff TTF DA net of transmission costs COAL PRICES USD/t Q Q Q Q Q Q Q Q Q Q Q Hard coal ARA prices USD/t 16

17 USD/t AGRO FERTILIZERS GLOBALLY max Urea prices in and 2017 średnia notowania 2017 min months USD/t DAP prices in and max średnia USD/t notowania 2017 min months max średnia min notowania 2017 NPK prices in and months Oilseed rape, wheat and corn prices PLN/t Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Consumable wheat PLN/t Fodder corn PLN/t Oilseed rape PLN/t Source: Ministry of Agriculture and Rural Development. EU 28 GRAIN PRODUCTION FORECASTS 2016/2017* France 26.7% Germany 0.7% Poland 5.4% Italy -9.4% United Kingdom 7.4% Spain -27.2% Hungary -18.1% Romania 2.3% * Largest producers (80% of EU production)/dg AGRI-G4 Source: Profercy, WFM. GRUPA AZOTY GROUP 17

18 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 AGRO FERTILIZERS GLOBALLY EUR/t USD/t MARKET SPREADS PER N CAN equivalent Calcium ammonium nitrate (27%N) Urea (27%N) Ammonia (27%N) NPK equivalent PRICE TRENDS 2017 VS 2016 DAP NPK 3x16 Phosphate rock PROSPECTS Due to heavy rainfall, the harvest was delayed and problems with the quality of harvested grain were reported The supply of grain in Poland is estimated to be higher year on year, i.e. approximately 31.4m tonnes (+5.4%) The slight decline in grain production worldwide was offset by high initial stocks Disbursement of advance payments on account of direct farm subsidies; payments to the farmers in the period October 16th November 30th 2017 will amount to PLN 10bn The increase in prices of nitrate fertilizers in the EU was brought about by the sales policies of the largest market players and the situation on the global urea market. Prospects of growing demand for fertilizers from the agricultural sector for spring applications GRUPA AZOTY GROUP 18

19 IMPORTS OF NITRATE FERTILIZERS VOLUMES OF AMMONIUM NITRATE IMPORTS MONTHLY YTD 131% Year 2016 Year 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec VOLUMES OF UREA IMPORTS MONTHLY YTD % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Analytical Centre, the Tax Administration Chamber in Warsaw. GRUPA AZOTY GROUP 19

20 GRUPA AZOTY GROUP: AGRO FERTILIZERS PLNm VOLUMES Segment revenue, including: Nitrogen fertilizers and ammonia Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q 3,830 3,780 1,088 1,108 2% 2,243 2, % Compound fertilizers 1,269 1, % EBITDA % EBITDA margin 14% 12% 2% 6% +4 pp tonnes Jan-Sep 2016 Jan-Sep 2017 Q Q GRUPA AZOTY GROUP 20

21 CHEMICALS Q REVENUE Q Agro - Fertilizers 51% Chemicals 29% Plastics 16% Chemicals PLN 646m MARKET POSITION MELAMINE Plastics Poland 1 Chemicals EU 3 Other Activities 2% Energy 2% PLASTICISERS Poland 1 Energy EU Other 5 Activities OXO alcohols GRUPA AZOTY GROUP 21

22 EUR/t CHEMICALS GLOBALLY MARKET MARGINS Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 DEHT (DOTP) 2-EH Propylene PRICE TRENDS 2017 VS 2016 PROSPECTS Melamine Expected melamine price growth, possibly at a double-digit rate: Q4 typically sees stronger demand The current high prices of melamine are caused by lower availability of the product (downtimes and stoppages in China due to environmental regulations) Propylene A slight retreat of propylene prices is expected in Q4 on improved availability and stabilisaation of raw material prices OXO ALCOHOLS Through year-end 2017, spot prices will be correlated with contract prices of propylene (price movements seen in recent months likely to continue) Prices of plasticisers and OXO alcohols are expected to return to the levels reported before the supply constraints caused by events of force majeure in 2016/17 The OXO market is also expected to become increasingly competitive as the product balance improves GRUPA AZOTY GROUP 22

23 GRUPA AZOTY GROUP: CHEMICALS PLNm Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q Segment revenue, including: 1,683 1, % OXO alcohols % Plasticisers % Urea (technical grade) % Melamine % Titanium white % EBITDA % EBITDA margin 14% 12% 12% 12% 0 pp VOLUMES 000 tonnes OXO alcohols Plasticisers Urea (techn. grade) Melamine Titanium white 0 OXO alcohols Plasticisers Urea (techn. grade) Melamine Titanium white Jan-Sep 2016 I-IX2017 Q Q GRUPA AZOTY GROUP 23

24 PLASTICS Q Agro - Fertilizers 51% Chemicals 29% REVENUE Q Plastics PLN 352m Plastics MARKET POSITION PA6 Plastics 16% PA6 Chemicals Poland Other Activities 2% Energy 2% 1 EU Energy 3 Other Activities GRUPA AZOTY GROUP 24

25 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 GLOBAL PLASTICS MARKET PROSPECTS EUR/t HIGHER MARGINS Polyamide 6 Benzene PRICE TRENDS 2017 VS Demand and supply trends, and crude oil prices are the main factors impacting the market of PA6 and CPL Seasonal shortages of CPL and PA6 caused by plant outages during the holiday season and the environmental constraints on the Asian market Strong demand in the automotive and textile industries offset the current oversupply and mitigate the rate of price erosion Slight price corrections after a wave of strong price increases since the start of 2017 The structure of demand for PA6 expected to change: growing significance of engineering plastics, foil and flexible packaging GRUPA AZOTY GROUP 25

26 GRUPA AZOTY GROUP: PLASTICS PLNm Segment revenue, including: Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q 834 1, % Polyamide % Caprolactam % EBITDA % EBITDA margin -4% 16% -4% 16% +20 pp VOLUMES 000 tonnes tonnes Polyamide Jan-Sep 2016 Jan-Sep 2017 Caprolactam 5 0 Polyamide Q Q Caprolactam GRUPA AZOTY GROUP 26

27 GRUPA AZOTY GROUP FINANCIALS AS AT SEP FINANCING STRUCTURE AVAILABLE LIMITS 10% 9% (PLNm) 81% corporate credit facilities 923 current and multi-purpose facilities other financing RATIOS Jan-Sep 2016 Jan-Sep 2017 Net debt (PLNm) Net debt/ebitda for 12 months GRUPA AZOTY GROUP 27

28 GRUPA AZOTY PUŁAWY GROUP

29 GRUPA AZOTY PUŁAWY GROUP FINANCIAL HIGHLIGHTS PLNm REVENUE* , ,470 2,589 Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 EBITDA* 20.3% EBITDA (adjusted)** EBITDA MARGIN 9.2% 9.2% % 10.4% Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 NET PROFIT 13.8% NET PROFIT (adjusted)** NET PROFIT MARGIN 3.1% 3.7% 2.2% 3.3% Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 * Restated on a preliminary basis to ensure data comparability after change in accounting policy as of January 1st 2017 **Adjusted for impairment losses related mainly to the fat processing unit at ZA Chorzów and Elektrownia Puławy Power Plant GRUPA AZOTY PUŁAWY 29

30 EBITDA Q SEGMENTS OF GRUPA AZOTY PUŁAWY GROUP (PLNm) ,02 positive effect on EBITDA negative effect on EBITDA Increase in prices and sales volumes of fertilizers in the Agro segment (in particular, a 20.2% increase in the volume of ammonium nitrate) Increase in prices and sales volumes of products in the Chemicals segment (in particular, a 22.7% increase in caprolactam prices) *Restated to ensure data comparability after change in accounting policy as of January 1st **Adjusted for impairment losses: PLN (-)19 thousand. GRUPA AZOTY PUŁAWY 30

31 SEGMENTSOF GRUPA AZOTY PUŁAWY GROUP CHANGE IN REVENUE Q3 2016/Q Chemicals 40% Fertilizers +11% Chemicals +18% Energy +10% Fertilizers 56% Other Activities 2% Energy 2% Other Activities -29% GRUPA AZOTY PUŁAWY 31

32 GRUPA AZOTY PUŁAWY GROUP: FERTILIZERS PLNm Segment revenue, including: Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q 1,537 1, % Nitrogen fertilizers 1,181 1, % Phosphate and compound fertilizers % EBITDA % EBITDA margin 23.1% 18.4% 10.8% 13.3% 2.5 pp VOLUMES 000 tonnes % 0.2% % -12.4% % -0.5% +7.8% % +18.5% % 0 Saletra Phosphate and NPK Urea Ammonium sulfate UAN 0 Saletra Phosphate and NPK Urea Ammonium sulfate UAN Jan-Sep 2016 Jan-Sep 2017 Q Q *Restated to ensure data comparability after change in accounting policy as of January 1st GRUPA AZOTY PUŁAWY 32

33 GRUPA AZOTY PUŁAWY GROUP: CHEMICALS PLNm Segment revenue, including: Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q % Melamine % Caprolactam % Urea % EBITDA % EBITDA margin 16.7% 18.9% 14.1% 16.7% 2.6 pp VOLUMES 000 tonnes % % % -2.4% +1.3% % Melamine Caprolactam Urea 0 Melamine Caprolactam Urea Jan-Sep 2016 Jan-Sep 2017 Q Q *Restated to ensure data comparability after change in accounting policy as of January 1st GRUPA AZOTY PUŁAWY 33

34 GRUPA AZOTY PUŁAWY FINANCIALS AS AT SEP AVAILABLE LIMITS 36 corporate credit facilities (PLNm) 500 current and multi-purpose facilities RATIOS Jan Sep 2016 Jan Sep 2017 Net debt (PLNm) Net debt/ebitda for 12 months GRUPA AZOTY PUŁAWY 34

35 GRUPA AZOTY POLICE GROUP

36 GRUPA AZOTY POLICE GROUP FINANCIAL HIGHLIGHTS (PLNm) REVENUE 1,841 1, Q3 2013** Q3 2014** Q3 2015** Q Q Jan-Sep 2016 Jan-Sep 2017 EBITDA EBITDA (adjusted)* 4.7% 5.9% 6.5% 6.2% 7.3% 8.5% EBITDA MARGIN Q3 2013** Q3 2014** Q3 2015** Q Q NET PROFIT NET PROFIT (adjusted)* NET PROFIT MARGIN 3.7% 1.4% 2.6% 2.6% 1.2% 1.2% Q3 2013** Q3 2014** Q3 2015** Q Q Jan-Sep 2016 Jan-Sep Jan-Sep 2016 Jan-Sep 2017 * No one-off items relating to AFRIG. ** Data shown in next-year financial statements as comparative data (Q data based on Q statements, Q data based on Q statements, and Q data based on Q statements). Data for Q restated in GRUPA AZOTY POLICE GROUP 36

37 EBITDA Q SEGMENTS OF GRUPA AZOTY POLICE GROUP 40 (PLNm) EBITDA net of one-off items positive effect on EBITDA negative effect on EBITDA One-off items relating to AFRIG - impact on EBITDA GRUPA AZOTY POLICE GROUP 37

38 SEGMENTS OF GRUPA AZOTY POLICE GROUP CHANGE IN REVENUE Q3 2016/Q Fertilizers -7% Pigments +24% Fertilizers 79% Pigments 19% Other Activities -17% Other 2% GRUPA AZOTY POLICE GROUP 38

39 GRUPA AZOTY POLICE GROUP: FERTILIZERS PLNm Jan Sep 2016 Jan Sep 2017 Q Q Change q/q Segment revenue, including: 1,567 1, % Compound fertilizers 1,128 1, % Urea % Ammonia % EBITDA % EBITDA margin 9% 10% 5% 4% -1 pp VOLUMES 000 tonnes % -5% Jan-Sep 2016 Jan-Sep % +18% Jan-Sep 2016 Jan-Sep 2017 Jan-Sep 2016 Jan-Sep % -41% Q Q Q Q Q Q Compound fertilizers Urea Ammonia Compound fertilizers Domestic Urea Exports Ammonia Domestic Exports GRUPA AZOTY POLICE GROUP 39

40 GRUPA AZOTY POLICE GROUP: PIGMENTS PLNm Jan Sep 2016 Jan Sep 2017 Q Q Change q/q Segment revenue, including: % Titanium white % Other Activities % EBITDA % EBITDA margin 8% 25% 13% 28% +15 pp VOLUMES 000 tonnes 40-1% 12-8% Jan-Sep 2016 Jan-Sep Q Q Titanium white Titanium white GRUPA AZOTY POLICE GROUP 40

41 GRUPA AZOTY POLICE GROUP FINANCIALS AS AT SEP FINANCING STRUCTURE AVAILABLE LIMITS 30% 11% 153 (mln PLN) 59% corporate credit facilities current and multi-purpose facilities other financing 444 RATIOS Jan Sep 2016 Jan Sep 2017 Net debt (PLNm) Net debt/ebitda for 12 months GRUPA AZOTY POLICE GROUP 41

42 GRUPA AZOTY ZAKŁADY AZOTOWE KĘDZIERZYN S.A.

43 GRUPA AZOTY KĘDZIERZYN FINANCIAL HIGHLIGHTS (PLNm) REVENUE ,231 1,324 Q Q Q Q Q Jan-Sep 2016 Jan-Sep % 13.7% EBITDA 50 EBITDA MARGIN 0 6.6% 4.8% % Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 NET PROFIT 9.8% 5.5% NET PROFIT MARGIN -0.7% % % Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 GRUPA AZOTY KĘDZIERZYN 43

44 SEGMENTS OF GRUPA AZOTY KĘDZIERZYN CHANGE IN REVENUE Q3 2016/Q OXO alcohols 49% Fertilizers OXO alcohols +1% +36% Fertilizers 45% Other Activities +23% Other 6% GRUPA AZOTY KĘDZIERZYN

45 GRUPA AZOTY KĘDZIERZYN FINANCIAL HIGHLIGHTS, BY SEGMENT PLNm Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q Fertilizers Revenue k EBITDA k EBITDA margin 19.7% 14.1% 6.6% 12% 6 k OXO Revenue k EBITDA k EBITDA margin 4.7% 5.6% -1% 11% 12 k VOLUMES 000 tonnes Jan-Sep 2016 Jan-Sep Q Q Jan-Sep 2016 Jan-Sep Q Q Fertilizers OXO GRUPA AZOTY KĘDZIERZYN 45

46 GRUPA AZOTY KĘDZIERZYN FINANCIALS AS AT SEP FINANCING STRUCTURE AVAILABLE LIMITS 0% 0% % corporate credit facilities current and multi-purpose facilities other financing 221 RATIOS Jan Sep 2016 Jan Sep 2017 Net debt (PLNm) Net debt/ebitda for 12 months GRUPA AZOTY KĘDZIERZYN 46

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49 APPENDIX 1 THE PARENT

50 GRUPA AZOTY FINANCIAL HIGHLIGHTS REVENUE ,159 1,264 Q Q Q Q Q Jan-Sep 2016 Jan-Sep 2017 EBITDA 18.0% 15.6% 14.7% EBITDA (adjusted)* EBITDA MARGIN 1.4% % Jan-Sep 2016 Jan-Sep 2017 Q Q Q Q Q (PLNm) NET PROFIT NET PROFIT (adjusted)* 50 NET PROFIT MARGIN % -4.1% 75.1% % % Q Q Q Q Q * NET PROFIT figure has been adjusted for dividends received (in all periods) Jan-Sep 2016 Jan-Sep 2017 GRUPA AZOTY 50

51 GRUPA AZOTY: FERTILIZERS PLNm Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q Segment revenue, including: % Nitrogen fertilizers % EBITDA % EBITDA margin 7% 9% -3% 2% +5 pp VOLUMES 000 tonnes Nitrogen fertilizers 0 Nitrogen fertilizers Jan-Sep 2016 Jan-Sep 2017 Q Q GRUPA AZOTY 51

52 GRUPA AZOTY: PLASTICS PLNm Segment revenue, including: Jan-Sep 2016 Jan-Sep 2017 Q Q Change q/q % Polyamide % Caprolactam % EBITDA ,250% EBITDA margin 0% 19% 1% 21% +20pp VOLUMES 000 tonnes Polyamide Caprolactam 0 Polyamide Caprolactam Jan-Sep 2016 Jan-Sep 2017 Q Q GRUPA AZOTY 52

53 SHARE PERFORMANCE Growth from Jun : 328% High (Dec ) PLN Low (Feb ) PLN Jan-17 Volume Price Jul GRUPA AZOTY 53

54 APPENDIX 2 MARKET PRICES

55 PRICES OF AMMONIA, AMONIUM SULFATE AND CALCIUM AMMONIUM NITRATE USD/t Q Q Q Q Q Q Q Q Q Q Q Ammonia USD/t Ammonium sulfate AS USD/t Calcium ammonium nitrate CAN EUR/t EUR/t 55

56 PRICES OF NATURAL GAS Q Q Q Q Q Q Q Q Q Q Q EUR/MWh PGNiG tariff TTF DA net of transmission costs EEX GPL DA net of transmission costs 56

57 PRICES OF BENZENE, PHENOL, CPL, PA EUR/t Q Q Q Q Q Q Q Q Q Q Q Benzene Liquid caprolactam PA6 Phenol 57

58 PRICES OF AN, UAN AND UREA EUR/t Q Q Q Q Q Q Q Q Q Q Q Ammonium nitrate EUR/t UAN EUR/t Urea USD/t 150 USD/t 58

59 PRICES OF MELAMINE AND CPL EUR/t Q Q Q Q Q Q Q Q Q Q Q Melamine EUR/t Crystalline caprolactam USD/t 1000 USD/t 59

60 PRICES OF NPK, DAP, PHOSPHATE ROCK AND POTASSIUM CHLORIDE Q Q Q Q Q Q Q Q Q Q Q USD/t NPK DAP Phosphate rock Potassium chloride 60

61 PRICES OF TITANIUM WHITE, ILMENITE AND TITANIUM SLAG EUR/t Q Q Q Q Q Q Q Q Q Q Q USD/t Titanium white EUR/t Ilmenite USD/t Titanium slag USD/t 61

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