FY 214 RESULTS PRESENTATION March 16th 215
Agenda Page Overview of Grupa Azoty 3 Strategy Implementation 13 Grupa Azoty Group 16 Grupa Azoty PUŁAWY Group 25 Grupa Azoty POLICE Group 33 Grupa Azoty ZAK Group 43 Appendix 1 Parent 49
OVERVIEW OF GRUPA AZOTY 3
FINANCIAL HIGHLIGHTS REVENUE 9,898 EBITDA 822 NET PROFIT 265 EPS 2.33 PERFORMANCE DRIVERS Downward correction in fertilizer prices (notably urea and sulfate) on global markets Record high NPK import to Poland Falling plastics prices as an effect of the situation on oil and oil-derivatives market Depreciation of Polish currency supporting export competitiveness FY 214 consolidated results are the first to fully reflect contribution from Siarkopol and AIG, Impairment loss on the phthalic anhydride unit contributing to downward profitability pressures in the Chemicals segment. 214 CONSOLIDATED REVENUE STRUCTURE % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% Grupa Azoty S.A. Grupa Azoty ZAK Group Grupa Azoty POLICE Group Grupa Azoty PUŁAWY Group Other Overview of Grupa Azoty 4
KEY EVENTS LOCAL LEADER WITH GLOBAL PRESENCE GRUPA AZOTY ON THE GOVERNMENT LIST OF STRATEGIC ENTERPRISES OPERATIONA LISATION OF THE STRATEGY FOR 214 22 AZOTY PRO LETTER OF INTEND SIGNED WITH KGHM PARTNERSHIPS WITH RESEARCH INSTITUTES GRUPA AZOTY ON THE BOARD OF IFA AND FE EXTENSION OF ANTI-DUMPING DUTIES ON RUSSIAN AMMONIUM NITRATE CONFERENCES - DAVOS -FMB FERTILIZER EUROPE 214 -NITROGEN & SYNGAS 215 FEEL THE CHEMISTRY INTERNATIONAL EVENT AT THE GRUPA AZOTY GRUPA AZOTY IN FTSE EMERGING MARKETS Overview of Grupa Azoty 5
KEY DEVELOPMENTS IN 214 GRUPA AZOTY S.A. Grupa Azoty placed on the list of the Treasury's strategic enterprises Start record investment programme in the company Letter of intent signed with KGHM Polska Miedź Letter of intent signed with chemical research institutes Appointments to the Management Board of the 1th term Special purpose vehicles Grupa Azoty Folie Sp. z o.o. and Grupa Azoty Compounding Sp. z o.o. GRUPA AZOTY POLICE GRUPA AZOTY PUŁAWY Launch of partnership with KGHM, as well as PCG and SOGDC of Malaysia Continued implementation of CAPEX projects: launch of the ammonia storage facility, start of work on mechanical granulation of ammonium nitrate On average. 35% of gas supplies from diversified sources, compared with 5% in 213 Long-term contracts with Kronopol Sp. z o.o., the Kronospan Group, Silekol Sp. z o.o. and fertilizer customers President of Poland s Business Award in the Green Economy category granted in recognition of proenvironmental initiatives GRUPA AZOTY ZAK S.A. Net profit doubled year on year Profitability up year on year Major increase in consumption of phosphate rock sourced from own mine in Senegal Increased sales of fertilizers Highest-on-record CAPEX budget Widen the Management Board - New Vice-President of the Management Board Contract with Silekol Sp. z o.o. for supply of 46% prilled and crystalline urea In partnership with Skotan S.A. launch of R&D unit to test use of waste gases for energy generation Launch of new CHP project at Grupa Azoty ZAK S.A., with RAFAKO S.A. as the contractor; project financing agreement with BGK Overview of Grupa Azoty 6
MARKET OUTLOOK Fertilizers Plastics Current uptrend in a global demand for fertilizers expected to continue in 215/216 (according to IFA 2%) according to shrinking productive land base and growing food consumption Downtrend in grain prices expected to reverse on lower global production of wheat and corn and lower rapeseed production in Europe in 215 China decision on stabilised level of export duty on urea (8 CNY/t) New fertilizer projects in the USA Projected growth in Europe's demand until 216: circa 2%/y in engineering and 2.5%/y in textile industries and promising outlook in automotive industry Projected plastics prices correlated with oil-derivates prices Projections assume economic growth in the US and UK, with signs of slow recovery in Germany Market under pressure of new investments in the Far East Chemicals Projected moderate rise in consumption of OXO chemicals about 1.5%, with prices correlated level of GDP forecasts Cuts in rafinery output in Europe with influence on sulphur market Gradual increase in NOXy consumption in Europe 2.4 mt in 214, expected 4.5 mt in 22 Feedstocks Prices of petrochemical feedstocks and natural gas under pressure of unstable oil prices Expected further decline in prices of energy derivates Projected average annual price of ammonia at USD 44/tonne FOB Yuzhny, with signs of slight upturn (in 214 the price was 493 USD/t) Overview 7 of Grupa Azoty
GLOBAL OUTLOOK 214 YEAR The Climat package EU-imposed duties on Russian ammonium nitrate, pure and mixed, at EUR 28.88 47/tonne upheld for another five years China decision on level of export duty on urea Continued negotiations on Transatlantic Trade and Investment Partnership (TTIP) Political situation in Eastern Europe Consolidation procesess in fertilizers branch around he world World attention focused on global nutrition safety Grupa Azoty informacje 8 ogólne
DIVERSIFICATION OF GAS SOURCES high-methane gas (E), nitrogen-rich gas (Lw), (Ls) Mallnow Lasów pipeline local sources NATURAL GAS DEMAND (BCM) 214 4Q214 2.1.57 FROM OUTSIDE THE SYSTEM 213 214 25.4% 38.6% 213 4Q214 18% 46.1% 12 Gas prices (USD/MBTU) 1 8 6 USD/MBTU Source: ICIS PGNiG tariff Average natural gas price paid by the Group Heren TTF Overview of Grupa Azoty 9
Grupa Azoty's aspirational goal ENERGY CONSUMPTION FOR AMMONIA PRODUCTION Energy intensive (GJ/tNH3) Energy consumption (GJ/tNH3) GA PUŁAWY L.2. 33,4 GA PUŁAWY L.1. 34,7 38,5 36,5 36-14 % -19 % GRUPA AZOTY S.A. 33,4 3 28 27 GA ZAK GA POLICE 32,7 36,8 3-33 28-29 3 32 34 36 38 Grupa Azoty ZAK ~2,4 GJ/tonę Russia Saudi Arabia Older process plant of Grupa Azoty Aspirational goal Modern process lines Theoretical efficiency Grupa Azoty Puławy Overview of Grupa Azoty Grupa Azoty S.A. Grupa Azoty Police ~1GJ/tonę ~1GJ/tonę ~2-2,5 GJ/tonę AMMONIA Total production capacity: 2.35 m tonnes, including own use of ca. 9% Source: Fertilizers Europe 1
thousand tonnes 214 EXTERNAL FACTORS Prices trends 4% 3% 1% 1% (5) -14% -.3% DAP Ammonia Urea AS Imports to EU (28) 213 214 CPL PA6 Benzene 213 214 Urea DAP NPK AS AN CAN UAN Jan Nov 213 Jan Nov 214 Source: EUROSTAT 11
Strong position in target markets Close to 9% of revenue derived from sales to EU markets Poland 56% -3% North America 1% -,5% European Union 1 32% +2% Other Europe 2% -.4% Asia 6% (.4) 213 2 214 South America 4% -.3% Africa 1% +1% Overview of Grupa Azoty 1 Excluding Poland 2 G.A. Puławy since January 19th 213, Siarkopol since 12 October 31st 213 12
STRATEGY IMPLEMENTATION
INCREASING PRODUCTION CAPACITY Planned 214 22 CAPEX of PLN 1.35bn AMMONIA PRODUCTION Balancing ammonia production within the Group; improving energy efficiency in ammonia production MECHANICAL GRANULATION improving quality of nitrate fertilizers; expanding fertilizer product mix 2,357 2,422 2,452 215 216 22 2,4* 1,75 1,465 215 216 22 RSM UREA AMMONIUM NITRATE SOLUTION Increasing production capacity and expanding the RSM and RSM S logistics network 1,165 1,265 215 216 PHOSPHORIC ACID PRODUCTION Increasing production capacity; improving quality; reducing phosphogypsum volumes 345 355 215 216 Polyamides balancing caprolactam production within the Group for internal polyamide production 89 169 215 216 OXOPLAST OT increasing production capacity; expanding product mix * Taking into account CAN production in Grupa Azoty PUŁAWY Strategy implementation 15 5 214 215 14
AZOTY PRO IN 214 THE PROGRAMME DELIVERED GAINS OF PLN 26M (ALMOST DOUBLE THE EXPECTED VALUE) 7 LEADERSHIP PLAN VS ASPIRATIONAL GOAL TO BRING GAINS OF CLOSE TO PLN 65M IN 215 6 5 4 3 PLNm 2 1 15 26 214 aspirational goal Effects as at December 214 215 budget 215 aspirational goal 2, 15, 1, 5,, Production and energy intensity Repairs and overhauls Procurement and logistics Support functions Aspirational goal Leadership objective Aspirational goals vs objectives confirmed by leadership Azoty PRO's objective is to achieve gains in excess of PLN 3m and financial gain, understood as recurring EBITDA effect, in the following years Strategy implementation 15
Grupa Azoty Group
GRUPA AZOTY GROUP: KEY FINANCIALS REVENUE 2,348 2,73 2,37 2,269 2,556 9,82 1 9,89 8 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 EBITDA EBITDA (adjusted)* EBITDA margin 2.13% 25 5 12.3% 325 1.9% 239 5.57% 5.16% 126 132 172 1,246 775 822 862 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 Net profit NET PROFIT* (adjusted) 54 149 85 9 21-25 -62 213 Q1 214 Q2 214 Q3 214 4Q 214 79 229 265 297 213 214 * Adjusted for gain on bargain purchase of Grupa Azoty PUŁAWY, Grupy Azoty SIARKOPOL and AIG; impairment loss on POM unit in 213; and impairment loss on phthalic anhydride unit in 214 Grupa Azoty Group 17
GRUPA AZOTY GROUP: PERFORMANCE KEY DRIVERS EBITDA PLNm 2 18 16 14 12 1 8 6 4 2 1,246 8 6 15 84 419 241 65 471 527 4 775 862 822 Lower prices of key raw materials, reflected in cost of sales Lower selling prices for key product groups, partly offset by larger Grupa Azoty Group sales volumes * Adjusted for gain on bargain purchase of Grupa Azoty PUŁAWY, Grupy Azoty SIARKOPOL and AIG; impairment loss on POM unit in 213; and impairment loss on phthalic anhydride unit in 214 ** Estimated EBITDA of companies acquired in 213, included in 214 EBITDA 18
GRUPA AZOTY GROUP: PERFORMANCE BY SEGMENT Segment 213 Revenue EBITDA Revenue EBITDA 214 213 214 213 214 213 214 Agro Fertilizers 1,319 1,514 3 14 5,565 5,58 633 594 Plastics, 355 354-16 -17 1,467 1,46-63 -34 Chemicals* 59 591-14 -24 2,385 2,56 71 86 Energy 62 53 28 24 266 195 69 8 Other Activities 23 45-3 48 139 158 65 136 EBITDA 214 25 2 15 1 5 PLNm 127 Grupa Azoty Group 69 2 9 11 43 positive effect on EBITDA negative effect on EBITDA 171 FY 214 Fertilizers 56% 66% REVENUE EBITDA 1% 15% 9% Plastics 15% Other Activities 2% * Adjusted for gain on bargain purchase of Grupa Azoty PUŁAWY, Grupy Azoty SIARKOPOL and AIG; impairment loss on POM unit in 213; and impairment loss on phthalic anhydride unit in 214 19 Chemicals 25% Energy 2%
GRUPA AZOTY GROUP: STATEMENT OF FINANCIAL POSITION Ratios 213 214 Profitability ratios EBIT margin (%) 1.8 3.1 EBITDA margin (%) 7.4 8.3 ROCE (%) 2.4 3.9 Non-current assets Current assets including cash and cash equivalents 213 214 Change 6,63 6,781 2% 3,321 3,167 (5) 713 559 (22) ROE (%) 11.3 4.1 Liquidity ratios Current ratio 1.5 1.4 Debt ratios Total debt ratio (%) 37. 34.8 Net debt 627 527 Debt to equity ratio (%) 17.4 187.5 Total assets 9,951 9,948 213 214 Change Equity 6,271 6,488 3% Liabilities 3,68 3,46-6% incl. borrowings 1,239 986 (2) other financial liabilities Total equity and liabilities 11 1-1% 9,951 9,948 Grupa Azoty Group 2
PRO FORMA DATA* GRUPA AZOTY GROUP: AGRO FERTILIZERS Segment revenue, including: Nitrogen fertilizers and ammonia Compound fertilizers 213 214 213* 214 Change 1,32 1,514 5,73 5,58-2% 894 983 3,97 3,699 (5) 326 389 1,516 1,477-3% 4 3 5 3 2 5 2 1 5 1 3% Volumes EBITDA 4 14 633 594-6% 5 EBITDA margin % 9% 11% 11% ' tonnes 213 214 Compound fertilizers Nitrogen fertilizers and ammonia Domestic grain prices 2 5 2 1 5 1 5 5 4 3 2 1 7 6 5 4 3 2 1 Prices of urea, ammonia, ammonium sulfate and calcium ammonium nitrate 3 25 2 1 kg N/1 kg milling wheat milling wheat fodder corn rapeseed *pro forma data including the Grupa Azoty PUŁAWY Group and Siarkopol USD/t Source: Argus FMB, ICIS Ammonia USD/t Urea USD/t EUR/t Grupa Azoty Group 21
PRO FORMA DATA* GRUPA AZOTY GROUP: PLASTICS Segment revenue, including: 213 214 213* 214 Change 355 354 1,467 1,46 Polyamide 177 192 77 84 4% Caprolactam 134 125 495 524 6% EBITDA -16-17 -62-34 47% EBITDA margin -4% (5) -4% -2% Prices of benzene, phenol, CPL, PA6 2 6 2 1 1 6 1 1 1 9 8 7 6 5 4 3 2 1 ' tonnes 8% Volumes 213 214 Polyamide Caprolactam 6 EUR/t Source: ICIS, TECNON Benzene EUR/t Liquid caprolactam EUR/t PA6 EUR/t Phenol EUR/t *pro forma data including the Grupa Azoty PUŁAWY Group and Siarkopol Grupa Azoty Group 22
PRO FORMA DATA* GRUPA AZOTY GROUP: CHEMICALS Segment revenue including: 213 214 213* 214 Change 574 591 2,572 2,56-3% OXO products 13 165 689 717 4% Urea (technical grade) 13 144 425 537 26% Melamine 13 99 415 373-1% Titanium white 6 55 32 291-9% EBITDA -23-24 13 86-16% EBITDA margin -4% -4% 4% 3% Prices of DEHP, 2-EH and propylene 18 16 14 12 1 8 6 5 4 3 2 1 ' tonnes 2% 213 214 Volumes Titanium white Melamine OXO products Technical-grade urea EUR/t Source: ICIS. Grupa Azoty Group Propylene DEHP 2-EH 23
PRO FORMA DATA* GRUPA AZOTY GROUP: COST STRUCTURE 12 1 8-4% Lower costs of raw material and consumables attributable to lower prices of energy resources and petroleum raw materials, as well as procurement synergies 6 Natural gas 4 2 23% 7% 7% 5% 5% 4% 9% 4% Propylene Phosphate rock Potassium chloride Phenol Coal Electricity PLNm 213* 214 Raw material and consumables used Services Labour costs Other Depreciation and amortisation Other Activities *pro forma data including the Grupa Azoty PUŁAWY Group and Siarkopol Grupa Azoty Group 24
GRUPA AZOTY PUŁAWY GROUP
GRUPA AZOTY PUŁAWY GROUP: KEY FINANCIALS REVENUE 84 923 983 88 846 955 5,427 3,798 3,664 Q3 213 213 Q1 214 Q2 214 Q3 214 4Q 214 213/14 213 214 EBITDA EBITDA margin 6.5% 55 57 6.2% 149 15.1% 118 13.4% 4 4.8% 86 9.1% 666 478 394 Q3 213 213 Q1 214 Q2 214 Q3 214 4Q 214 213/14 213 214 NET PROFIT 98 74 18 19 3 51 Q3 213 213 Q1 214 Q2 214 Q3 214 4Q 214 262 35 225 213/14 213 214 Grupa Azoty PUŁAWY Group 26
GRUPA AZOTY PUŁAWY GROUP: PERFORMANCE KEY DRIVERS EBITDA m PLN 8 7 6 141 96 5-2 -11-2 -64-229 5 4 3 2 1 478 478 619 715 718 77 687 623 394 394 Main developments: EBITDA down on lower selling prices, partly offset by higher sales volumes; EBITDA up chiefly on lower prices of strategic feedstocks at the Parent; EBITDA down on increased selling and distribution expenses, chiefly a result of larger sales volumes; *Only the Parent. Grupa Azoty PUŁAWY Group 27
GRUPA AZOTY PUŁAWY GROUP: PERFORMANCE BY SEGMENT Segment 213 Revenue EBITDA Revenue EBITDA 214 213 214 213 214 213 214 Agro 584 64 75 97 2,42 2,33 521 439 Chemicals 37 31 18 17 1,242 1,219 16 58 Energy 24 17 9 9 86 61 36 35 Other Activities 12 18-2 5 64 69-24 12 EBITDA 214 FY 214 15 REVENUE 1 5 4 35 11 4 3-7 86 Agro 63% 81% EBITDA 6% 2% 11% Chemicals 33% Energy Other 2% Activities 2% Grupa Azoty PUŁAWY Group 28
GRUPA AZOTY PUŁAWY GROUP: STATEMENT OF FINANCIAL POSITION Ratios 213 214 Profitability ratios EBIT margin (%) 9. 6.7 EBITDA margin (%) 12.6 1.8 ROCE (%) 12.4 8.3 Non-current assets Current assets including cash and cash equivalents 213 214 Change 2,36 2,126 5.4 % 1,492 1,417-5. % 435 329-24.4 % ROE (%) 12.2 8.2 Total assets 3,528 3,543.4 % Liquidity ratios Current ratio 1.9 2.4 Debt ratios Total debt ratio (%) 28.8 23. Net debt -38-318 Debt to equity ratio (%) 4.5 29.8 213 214 Change Equity 2,511 2,729 8.7% Liabilities 1,17 814-2.% incl. borrowings 55 11-8.% other financial liabilities Total equity and liabilities 962 83 (16.5) 3,528 3,543.4% Grupa Azoty PUŁAWY Group 29
GRUPA AZOTY PUŁAWY GROUP: AGRO 213 4Q 214 213 214 Change (qoq)* Revenue 584 65 2,42 2,33 3.5 % Nitrogen fertilizers Phosphate and compound fertilizers Other goods and services Merchandise and materials 492 485 1,998 1,85-1.3 % 48 54 237 216 11.8 % 23 29 68 12 21.8 % 21 37 99 117 76.7 % EBITDA 75 97 521 439 29.3 % EBITDA margin 12.9 % 16.1 % 21.7 % 19. % 3.2 pp Prices of AN, UAN and Urea 4 3 2 1 8 7 6 5 4 3 2 1 ' tonnes 213 214 Volumes Ammonium nitrate (PULAN ) UAN conv. to 32% (RSM ) Urea (PULREA ) Ammonium sulfate (PULSAR, ammonium sulfate from the Flue Gas Desulfurisation Unit) 6 4 2 EUR/t Source: Argus FMB Ammonium nitrate AN EUR/t UAN EUR/t Urea USD/t USD/t Grupa Azoty PUŁAWY Group 3
GRUPA AZOTY PUŁAWY GROUP: CHEMICALS 213 4Q 214 213 214 Change (qoq)* Volumes Revenue 37 31 1,242 1,219.8 % Melamine 13 99 415 373-4.4 % Caprolactam 124 122 489 487-1.9 % 2 15 Urea (PULREA, PULNOX ) Other goods and services 52 61 231 252 18.4 % 26 26 99 11 -.2 % 1 5 Merchandise and materials 2 2 8 6 1. % EBITDA 18 17 16 58-8.3 % EBITDA margin 6. % 5.5 % 8.5 % 4.7 % -.5 pp Prices of melamine and caprolactam 2 15 1 5 213 214 Melamine ' Caprolactam Urea (PULREA, PULNOX for 1% solution equivalent) Hydrogen peroxide (for 1% solution equivalent) 4 3 2 1 EUR/t Source: ICIS. Melamine EUR/t Crystalline caprolactam USD/t USD/t Grupa Azoty PUŁAWY Group 31
GRUPA AZOTY PUŁAWY GROUP: COST STRUCTURE 3 5 3 2 5-1% In 214 total expenses fell approximately 1% year on year, mainly on ca. 5% drop in raw material and consumables used 2 1 5 1 9% 9% 13% 1% 59% Natural gas Benzene Coal Electricity 5 Other Activities PLNm 213 214 Raw material and consumables used Services Employee benefits expense Depreciation and amortisation Other Grupa Azoty PUŁAWY Group 32
GRUPA AZOTY POLICE GROUP 33
6 5 4 3 2 1 1% 5% % -5% -1% 2 18 16 14 12 1 8 6 4 2 8,5% 3,5% -1,5% GRUPA AZOTY POLICE GROUP'S CONSOLIDATED RESULTS REVENUE 5 632 617 55 658 2,46 4 2,41 2 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 8.1% 8.4% 7.2% 5.5% 6.4% 5.5% EBITD A 4.8% 51 52 28 42 135 173 213* Q1 214 Q2 214 Q3 214 4Q 214 213 214 NET PROFIT -13 15 26 6 14 213* Q1 214 Q2 214 Q3 214 4Q 214 45 61 213 214 *EBITDA and net profit for Q3 214 are not restated to reflect final accounting for acquisition of controlling interest in African Investment Group S.A. Grupa Azoty POLICE Group 34
GRUPA AZOTY POLICE'S SEPARATE RESULTS REVENUE 51 63 622 5 624 2,46 7 2,37 7 213 Q1 214 Q2 214 Q3 214 214 213 214 6 5 4 EBITDA 3 2 EBITDA margin 1 7.7% 9.% 8.1% 5.9%.2% 48 56 5 3 1 213 Q1 214 Q2 214 Q3 214 4Q 214 1% 5% % -5% -1% 2 15 1 5 7.7% 5.5% 184 136 213 214 8,5% 3,5% -1,5% 83 NET PROFIT -21 24 36 4 19 213 Q1 214 Q2 214 Q3 214 4Q 214 42 213 214 Grupa Azoty POLICE (Parent) 35
Main consolidation differences Police Police Group % change 214 213 214 213 214 Police Group/Police Revenue 2,467 2,377 2,464 2,412 1.5 EBITDA 136 184 135 173-6. Net profit 42 83 46 61-26.5 Perpetual usufruct right to land transferred as contribution in kind to Zarząd Morskiego Portu Police (PLN -12.3m) Dividends receivable from subsidiaries (PLN -5m) Elimination of margin on assets (PLN -3.9m) Deferred tax on consolidation adjustments (PLN +3.4m) Grupa Azoty POLICE Group 36
GRUPA AZOTY POLICE: PERFORMANCE KEY DRIVERS EBITDA 7 6 278 31 242 positive effect on EBITDA negative effect on EBITDA 5 4 3 164 3 91 2 1 136 184 213 Sales volumes Raw material prices Raw material volumes Product prices Selling and distribution expenses, fixed costs Other 214 Higher volumes of compound fertilizers (mainly NP) and urea sold Relationship between feedstock prices paid and selling prices of products more favourable than in 213 Grupa Azoty POLICE (Parent) 37
GRUPA AZOTY POLICE: PERFORMANCE BY SEGMENT Segment 213 Revenue EBITDA Revenue EBITDA 214 213 214 213 214 213 214 Fertilizers 44 556-34 36 2,12 2,43 83 137 Pigments 62 57 1 2 328 3 25 3 Other Activities 7 11 25 12 37 34 28 17 EBITDA 214 FY 214 positive effect on EBITDA negative effect on EBITDA REVENUE 6 5 4 3 2 1 3 16 Q3 214 Fertilizers Other Activities 1 5 Pigments 5 4Q214 Fertilizers Pigments Other Activities EBITDA 74% 17% 9% 86% 13% 1% Grupa Azoty POLICE (Parent) 38
GRUPA AZOTY POLICE: FERTILIZERS 213 214 213 214 Change Revenue 44 556 2,12 2,43-59 Compound fertilizers 283 348 1,351 1,35-46 Urea 76 18 347 41 54 Ammonia 72 86 344 291-53 Other Activities 1 14 61 47-14 EBITDA -34 36 83 137 54 EBITDA margin (8) 6% 4% 7% 3% 1 Volumes 9 8 7 6 5 4 3 2 1 ' 213 214 Compound fertilizers Urea Ammonia Other Market prices of NPK, DAP, phosphates, potassium chloride 7 6 5 4 3 2 USD/t NPK USD/t DAP USD/t Phosphate rock USD/t Potassium chloride USD/t 55 45 35 25 15 5 USD/t Grupa Azoty POLICE (Parent) 39
GRUPA AZOTY POLICE: PIGMENTS 213 214 213 214 Change Volumes Revenue 62 57 328 3-28 Titanium white 6 55 32 29-3 Other Activities 2 2 8 1 2 EBITDA 1 2 25 3 5 EBITDA margin 16% 4% 8% 1% 2% 35 3 25 2 15 1 5 ' tonnes 213 214 Prices of titanium white, ilmenite and titanium slag 4 3 2 1 Titanium white Other Activities 2 15 1 5 EUR/t Titanium white EUR/t Ilmenite USD/t Titanium slag USD/t USD/t Grupa Azoty POLICE (Parent) 4
GRUPA AZOTY POLICE: COST STRUCTURE 3 2 5 2-7.6 % Key reasons behind decrease in expenses were reduced prices of key feedstocks and acquisition of shares in African Investment Group S.A. providing access to phosphate rock deposits 1 5 3% 3% 2% Natural gas 1 16% 39% Other Activities Potassium chloride 5 16% 21% Phosphate rock Molten sulfur Ilmenite Titanium slag PLNm 213 214 Raw material and consumables used Services Labour costs Depreciation and amortisation Other Grupa Azoty POLICE (Parent) 41
GRUPA AZOTY POLICE: STATEMENT OF FINANCIAL POSITION Ratios 213 214 Profitability ratios EBIT margin 2% 4% EBITDA margin 6% 8% Non-current assets 213 214 Change 1,14 1,194 8% Current assets 665 682 3% including cash and cash equivalents 58 32-45 Return on capital employed 5% 8% Total assets 1,769 1,876 6% ROE 4% 8% Liquidity ratios Current ratio 1.1 1.1 Debt ratios Total debt ratio 44% 45% Net debt 186 19 Equity-to-debt ratio 125% 125% 213 214 Change Equity 984 1,41 6% Liabilities 785 835 6% incl. borrowings 239 216-1% other financial liabilities Total equity and liabilities 5 6 18 1,769 1,876 6% Grupa Azoty POLICE (Parent) 42
GRUPA AZOTY ZAKŁADY AZOTOWE KĘDZIERZYN S.A.
2, 18, 16, 14, 12, 1, 8, 6, 4, 2,, GRUPA AZOTY ZAK: KEY FINANCIALS REVENUE 528 572 471 491 522 2,76 2,56 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 EBITDA Adjusted EBITDA* EBITDA margin 2 3.8% 12.1% 11.6% 69 54 31 6.3% 3.8% 2 6 174 174 213 214 214 Net profit 213 Q1 214 Q2 214 Q3 214 4Q 214 38 31 33 9 85 78 111 Adjusted* NET PROFIT -4 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 Grupa Azoty ZAK Group * One-off item: impairment loss on phthalic anhydride unit of PLN 4m 44
GRUPA AZOTY ZAK S.A.: RESULTS BY SEGMENT Segment Revenue EBITDA Revenue EBITDA 213 214 213 214 213 214 213 214 Fertilizers 253 274 18 47 968 1,6 138 176 OXO alcohols 244 217-5 -4 985 94 1-34 Other Activities 31 31 7 13 123 11 26 32 EBITDA 214 FY 214 7 6 5 4 3 2 1 31 21 8 Q3 214 Fertilizers Other OXO alcohols 4Q214 4 positive effect on EBITDA negative effect on EBITDA 2 Fertilizers 49% REVENUE EBITDA 11% -19% 18% OXO 46% Other 5% Grupa Azoty ZAK Group 45
GRUPA AZOTY ZAK: STATEMENT OF FINANCIAL POSITION Ratios 213 214 Profitability ratios EBIT margin (%) 4.7 4.35 EBITDA margin (%) 8.37 8.48 ROCE (%) 8.26 7.51 Non-current assets Current assets including cash and cash equivalents 213 214 Change 1,5 1,41 36 562 499-63 68 29-39 ROE (%) 8.32 7.4 Liquidity ratios Current ratio 1.46 1.43 Debt ratios Total debt ratio.35.31 Net debt 48.1 34.4 Debt to equity ratio (%) 52.8 45.5 Total assets 1,567 1,54-27 213 214 Change Equity 1,26 1,59 33 Liabilities 541 481-6 incl. borrowings 112 6-52 other financial liabilities Total equity and liabilities 4 3-1 1,567 1,54-27 Grupa Azoty ZAK Group 46
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APPENDIX 1 Parent
KEY RATIOS SINCE IPO 28, QUARTERLY * Revenue and net profit 2 5 2 1 5 1 5-5 Q1 28 Q2 28 Q3 28 28 Q1 29 Q2 29 Q3 29 29 Q1 21 Q2 21 Q3 21 21 Revenue Q1 211 Q2 211 Q3 211 211 Q1 212 Q2 212 Q3 212 Net profit (right axis) 212 Q1 213 Q2 213 Q3 213 213 Q1 214 Q2 214 Q3 214 214 5 4 3 2 1-1 EBITDA and net debt 8 6 4 2-2 *Grupa Azoty Group Q1 28 Q2 28 Q3 28 28 Q1 29 Q2 29 Q3 29 29 Q1 21 Q2 21 Q3 21 21 Q1 211 Net debt Q2 211 Q3 211 211 Q1 212 EBITDA Q2 212 Q3 212 212 Q1 213 Q2 213 Q3 213 213 Q1 214 Q2 214 Q3 214 214 Grupa Azoty S.A. 5
GRUPA AZOTY S.A.: KEY FINANCIALS REVENUE 431 53 41 464 47 1,84 6 1,84 7 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 EBITDA 56 63 EBITDA (adjusted) EBITDA margin -55-9 -13% 4 8 9 5 8% 2% 2% 1% 1 213 Q1 214 Q2 214 Q3 214 4Q 214 213 214 Net profit NET PROFIT (adjusted) 196 59 6-34 -2-18 -23-72 213 Q1 214 Q2 214 Q3 214 4Q 214 44 215-18 -55 213 214 EBITDA adjusted for impairment loss on POM unit (PLN 46m) recognised in 213 NET PROFIT adjusted for dividends received (in all periods) and impairment loss on POM Grupa Azoty S.A. 51
GRUPA AZOTY S.A.: RESULTS BY SEGMENT Segment Revenue EBITDA Revenue EBITDA 213 214 213 214 213 214 213 214 Fertilizers 194 216-5 4 85 82 62 15 Plastics* 226 241-11 -5 958 995-32 24 Energy 6 6 2 3 54 24 16 13 Other Activities 5 6 5 4 29 27 11 11 EBITDA 214 25 2 15 1 5 9 9 Q3 214 Fertilizers Other Activities 1 positive effect on EBITDA negative effect on EBITDA 14 Energy Plastics 4Q214 *EBITDA adjusted for impairment loss on POM unit (PLN 46m) recognised in 213 5 FY 214 Fertilizers 43% REVENUE EBITDA 38% 21% 24% 17% Plastics 54% Energy 1% Other Activities 2% Grupa Azoty S.A. 52
GRUPA AZOTY S.A.: FERTILIZERS 213 214 213 214 Change Volumes Segment revenue including 194 216 85 82 1 8 7% Nitrogen fertilizers 176 198 731 715 6 EBITDA -5 4 62 15 EBITDA margin -3% 2% 8% 2% 4 2 ' tonnes 213 214 Nitrogen fertilizers Prices of ammonia, ammonium sulfate and calcium ammonium nitrate 7 6 5 4 3 2 1 3 28 26 24 22 2 USD/t Ammonia USD/t Ammonium sulfate AS USD/t Calcium ammonium nitrate CAN EUR/t EUR/t Source: Argus FMB, ICIS Grupa Azoty S.A. 53
GRUPA AZOTY S.A.: PLASTICS Segment revenue, including 213 214 213 214 Change 226 241 958 995 & Polyamide 138 168 621 674 & Caprolactam 37 16 124 93 ( EBITDA* -11-5 -32 24 & EBITDA margin (5) -2% -3% 2% & Prices of benzene, phenol, CPL, PA6 1 8 6 4 2 ' tonnes 3% Volumes 213 214 Polyamide Caprolactam 2 6 2 1 1 6 1 1 6 EUR/t Benzene EUR/t Liquid caprolactam EUR/t PA6 EUR/t Phenol EUR/t Grupa Azoty S.A. *EBITDA adjusted for impairment loss on POM unit (PLN 46m) recognised in 213 54 Source: ICIS, TECNON
GRUPA AZOTY S.A.: COST STRUCTURE 2 1 8 1 6 1 4 1 2 Expenses remained unchanged Raw materials and consumables used up on increased output, but offset by lower procurement cost of key feedstocks KEY FEEDSTOCKS 1 21% 19% Natural gas 8 Fine coal 6 8% Liquid ammonia 4 28% 14% Benzene 2 PLNm 213 214 Raw material and consumables used Services Labour costs Other Depreciation and amortisation 1% Phenol Other Activities Grupa Azoty S.A. 55
Contact: Investor Relations Team ir.tarnow@grupaazoty.com