financial results for fy2018 and q4 2018 - ciech · 3/27/2019 · stable demand in soda ash on...

Financial results for FY2018 and Q4 2018

Warsaw, 27 March 2019

2

2018 - executive summary

Adj. EBITDA - adjusted for untypical one-off events


3 673 mln PLN revenues

(Q4: PLN 971 m)

Stable demand in soda ash on global markets.

Lower soda ash production. mainly due to planned maintenance shutdowns and installation failures.

Increasing prices of energy raw materials and furnace fuel. increase in prices of electricity and CO2 certificates.

Completed soda contracting for 2019.

Continuation of the construction of a new soda bicarbonate plant and the start of the investment in the evaporated salt plant in Stassfurt.

Poorer results in agro and resin businesses.

Acquisition of Proplan and the start of business integration.

Higher sales of glassy sodium silicate as a result of furnace reconstruction investment.

Adoption of the CIECH Group Strategy for 2019-2021.

Dividend payment.

17.2%adj. EBITDA margin

(Q4: 16.6%)

633 mln PLNadj. EBITDA

(Q4: PLN 162 m)

1. The most important events in 2018

2. Financial results for FY2018 and Q4 2018

3. Outlook

4. Appendix

60

100

140

180

220

260

300

340

380

Coke - ARA ports

Coking coal - spot

Coking coal - benchmark

Coking coal and coke prices [USD/t]

10

14

18

22

26

30

4

Market environment: raw material situation

17.19

40

50

60

70

80

90

100

110

ARA (cal. 25 GJ/t)

PSCMI1 (cal. 25 GJ/t)

Coal prices[USD/t]

2016 20182017

Source: Reuters, IHS, www.polskirynekwegla.pl * Australia Premium Coking Coal

2016 20182017

Average value

2016 201820174

9

14

19

24

CO2 emission allowances[EUR/t]

Average value

15.68

5.835.34

2016 20182017

The most important events in 2018

German Gaspool (GLP) Natural Gas - 1M Forwards [EUR/MWh]

22.35

14.17

3,4

3,9

4,4

USD/RON

5

Market environment: currency situation

4,1

4,3

4,5

EUR/PLN

4.25

4.36

3.94

4.054.06

4.26

2016 20182017

2016 20182017

PLN and RON weakening,against EUR and USD respectively,

has a positive effect on the Group’s financial results.

Estimated annual net result of the Group (revenues in the currency

vs. expenses in the currency) in 2018:

approx. EU 100 milionand approx. USD 80 million.

The Group applies natural hedging, as well as hedging

instruments against fluctuations in exchange rates according

to the adopted policy.

Average value

Average value

The most important events in 2018

Source: Reuters

6

Business and investments: soda businessThe most important events in 2018

A number of measures aimed at minimising

the negative impact of the increase in prices of energy raw materials, furnace fuel,

and prices of CO2

certificates

Completion of negotiations of soda prices for 2019 (IHS: increase in average prices

in Western Europe by 15 EUR/t)

Continuation of work on the construction of a new

production line of pharmaceutical-grade sodium bicarbonate in

Germany (to be finalised: Q2 2019)

Planned maintenance shutdowns in Germany and Romania (May and September), maintenance and

failures of plants (impact on volumes and production rates. More electricity purchased from

the market due to the failure of a turbine

Sales intensification on key Asian markets(sales growth by 27% y/y)

7

Business and investments: soda businessThe most important events in 2018

Higher sales of salt used for electrolysis (increase in demand for evaporated salt by

200 thousand tons in Europe - development of the membrane electrolysis plant) The decision to start an investment in a new

evaporated salt factory in Germany and its implementation (to be finalised: 2H2020)

Taking advantage of the good situation on the salt market - increases during 2018 Lost volumes

mainly as a result of

power industry failures - impact on the product

mix

Contracting of the key products for 2019and achieving the assumed goals

Strengthening the position in the market of salt products for water treatment

8

Business and investments: organic segmentThe most important events in 2018

In the foam business,

optimising the product portfolio

Registration of 12 new products in Poland

and abroad

Acquisition of Proplan and the start of business integration

Further exposure and increasing market share in foreign PPP markets, including overseas markets

(increase by 43% y/y)

In the resin business,

fundamental remodelling of the product portfolio

towards specialisedresins

* Season 2018 (4Q2017-3Q2018) in relation to the 2017 season

Lower domestic sales in agro business - decline in the market for PPPs in Poland by 6%* y/y as a result of

unfavourable weather conditions (short vegetation period. drought), including cereal herbicides – a decrease

of 10% and glyphosates - 28% In epoxy resins, adjusting transaction prices to the market levels dominated by oversupply of Asian resins

and increase in raw material prices (including UPR and SPR)

Stable foam business. despite

an estimated decline in the upholstered

furniture industryby 8-10% y/y

9

Business and investments: silicate and glass segmentThe most important events in 2018

Increasing production capacity of the glassy sodium silicate by 20% and efficient placement of the volume from the

new plant (increasing the market share in Poland to over 80% and in Europe up to nearly 15%)

Foreign expansion, in particular, in North America and Asia (6% y/y growth in the glassy sodium silicate

market in Europe)

7% y/y drop in the Polish lantern market due to

change in consumer habits(generational change)

1. The most important events in 2018


3. Outlook

4. Appendix

11

Statement of results

[PLN m] 2018 2017 yoy Q4 2018 Q4 2017 yoy

Revenue 3 672.7 3 579.4 2.6% 970.8 961.7 0.9%

Gross profit on sales 763.4 916.7 -16.7% 183.4 281.2 -34.8%

Gross profit on sales margin

20.8% 25.6% -4.8 p.p. 18.9% 29.2% -10.3 p.p.

EBITDA 654.4 833.2 -21.5% 169.8 270.0 -37.1%

EBITDA margin 17.8% 23.3% -5.5 p.p. 17.5% 28.1% -10.6 p.p.

Adj. EBITDA 633.5 808.1 -21.6% 161.6 251.1 -35.6%

Adj. EBITDA margin 17.2% 22.6% -5.3 p.p. 16.6% 26.1% -9.5 p.p.

EBIT 379.2 588.8 -35.6% 92.6 207.4 -55.3%

EBIT margin 10.3% 16.4% -6.1 p.p. 9.5% 21.6% -12.0 p.p.

Net result 183.5 394.0 -53.4% -16.2 137.7 <-100.0%

Net margin 5.0% 11.0% -6.0 p.p. -1.7% 14.3% -16.0 p.p.

Adj. EBITDA - adjusted for untypical one-off events


Revenues:

• increases in soda prices on the so-called overseas markets (dollar prices), salt and electricity pricesin Germany;

• increase in the share of sales of highly processed products (dry salt);

• higher sales of silicates as a result of rebuilding of one of the furnaces.

Adj. EBITDA:

• business factors are described by segment on the subsequent slides.

Net result:

• the result encumbered by a provision for the CIT 2012 tax assessment (PLN 67.2 m).

12

Results vs. consensus

[PLN m] Q4 2018 Consensus Q4 2018 Range of forecasts

Revenues 970.8 959.2 914.0 - 984.7

EBITDA 169.8 176.2 164.2 - 187.3

EBITDA margin 17.5% 18.4% -

Adj. EBITDA 161.6 176.2 164.2 - 187.3

Adj. EBITDA margin 16.6% 18.4% -

EBIT 92.6 109.4 93.8 - 119.7

EBIT margin 9.5% 11.4% -

Net result -16.2 73.4 63.7 - 79.3

Net margin -1.7% 6.7% -

Consensus PAP based on 7 analysts’ forecasts


13

41%

42%

7%

7%

Poland European Union(without Poland)

The rest of Europe Asia Africa Other

Revenues of FY2018

42%

43%

7%5%

Revenues of FY2017


27% increase

in revenue from sales to Asia by

in 2018 (yoy)

Geographical structure of sale markets

14Financial results for FY2018 and Q4 2018

54.9%

20.4%

7.2%

6.9%

9.3%

Dense soda ash

Light soda ash

Salt

Sodium bicarbonate

Calcium chloride

Other

Key products % revenues 2018

Sod

a Se

gmen

t

Dense soda ash 35.6%

Light soda ash 13.6%

Salt 5.0%

Sodium bicarbonate 4.4%

Org

anic

Segm

ent

Rasins 8.9%

Foams 8.6%

Plant protection 6.5%

Silic

ate

san

d g

lass Sodium siicates 4.6%

Potassium silicate 0.2%

Glass products 2.0%

Transport 0.5%

Structure of revenuesin soda segment

in 2018

Structure of revenues by product

619 595

590 621

587 585

634 621

2017 2018

161 147

164 154

161114

205

122

2017 2018

15

Soda segment

Revenue[PLN m]

Q1 Q2 Q3 Q4

Adj. EBITDA [PLN m]

Q4: the upside yoy

• increase in prices on the overseas markets;

• higher volumes of dry salt (by 4% y/y) and rising prices of dry salt.

Q4: the downside yoy

• lower volumes of soda (by approx. 5% y/y) as a result of planned and unplanned downtime;

• higher prices of energy raw materials, furnace fuel,CO2 certificates and electricity;

• lower prices in Europe (according to IHS, in 2018,a decrease in prices by EUR 7/t y/y in Western Europe);

• lower sales of CO2 certificates;

• strengthening currency, specificaly RON to USD.

Comments yoy


-22.2%

-2.0%2 230 2 422

691 537

16

Organic segment

217 211

226 216

179 203

250 256

2017 2018

21,2 16,3

20,215,6

10,913,7

44,3

30,4

2017 2018

Q4: the upside yoy

• plant protection products - an increase in the value of exports, supported by sales to Western Europe(increase by 43% y/y);

• consolidation of results with the acquired Proplan;

• foams - effective management of the profit margin,and optimisation of the client portfolio.


• plant protection products - lower sales and marginsin Poland related to the decline in the Polish marketby 6% * (unfavourable weather conditions);pressure from competitors;

• resins - oversupply of Asian resins (epoxies) and high prices of raw materials (of ER, UPR and SPR).

Q1 Q2 Q3 Q4

Comments yoySource: PAMS


Revenue[PLN m]

Adj. EBITDA [PLN m]

-21.3%

1.6%872 886

96.6 76.0

17

Silicates and glass segment

48,9 62,9

58,257,4

60,663,8

61,664,9

2017 2018

6,7 7,3

8,911,0

10,69,9

10,6 6,4

2017 2018

Q4: the upside yoy

• silicates - higher sales volumes of glassy sodium silicate by 20% as a result of the reconstruction of one of the furnaces for the production of packaging for a furnacefor the production of silicates: increase in demand,mainly related to the development of the precipitated silica industry (estimated 5% increase in prices of silicates on the European market);

• packaging - optimisation of the product portfolio (elimination of the least profitable products).


• higher costs of electricity raw materials (approx. 19%);

• aggressive competition on the market of sodium silicates mainly due to the significant underutilisation of production capacities among other producers;

• increased competition in the area of glass packaging and, as a result, lower prices.

Q1 Q2 Q3 Q4

Comments yoy


Revenue[PLN m]

Adj. EBITDA [PLN m]

-5.9%

8.6%229.3 249.0

36.8 34.6

18

CAPEXFinancial results for FY2018 and Q4 2018

2015 2016 2017 2018

Acquisition**

Development

Environmental

Stay in business

R&D

Other

CAPEX* [PLN m]

*According to statement of cash flows** Acquisition of shares in Proplan Plant Protection Company. S.L. for PLN 173 milion, of which PLN 156 million was paid on the transaction date, and 10% is deferred payment.

504490

411

461

617

156

Simplified

19

Cash flow

[PLN m] 2018 2017

Adj. EBITDA 633 808

Working capital -97 -66

Interest paid -40 -50

Taxes paid -40 -49

Others -2 -15

Cash flow from operating activities 454 629

CAPEX -461 -411

Acquisition -156 0

Other -10 22

Cash flow from investment activities -627 -389

Free cash flow -173 240

Debt financing 267 -167

Dividends -395 0

Other 4 1

Cash flow from financial activities -125 -166

Total net flow -298 74

Closing balance of cash 192 490

Operating activities:• movements in working capital. primarily

related to the consolidation of working capital of Proplan in the financial statements and the increase in inventories (mainly finished goods in agro);

• interest on borrowings in 2018 at a similar level as in 2017 - in 2017 CIECH S.A. ownedPLN bonds in amount of 160 mln PLN.

Investment activities:

• expenses related to the investmentprogramme implemented in the CIECH Group at a higher level than last year;

• acquisitions - payment of 90% of the price for Proplan (PLN -156 m).

Financial activities:• debt financing - utilising amounts from

available financing (including financing of the overdraft acquired in Q3 2018);

• dividend paid (PLN 395 m).


20

Debt

[PLN thousand] 2018 2017

Debt ratio 59.2% 53.0%

Long-term debt ratio 33.7% 29.5%

Equity capital debt ratio 145.2% 112.6%

Equity to assets ratio 40.8% 47.0%

Gross financial liabilities 1 693 907 1 426 428

Net financial liabilities 1 501 768 936 674

Methodology of calculated ratios consistent with the financial statement* Details on slide 19


Net debt/(N) EBITDA ratio continues at a secure level - as per loan agreements,the basic covenant binding the Group is the net debt/(N) EBITDA ratio ≤ 4.00x.

Net debt/(N) EBITDA ratio at a higher level than it was at the end of 2017 due to a lower FCF for 2018 (lower results on coreoperations, implementation of the CAPEX programme and acquisition of shares in Proplan, payment of dividend and decrease in (N) EBITDA.

1 2611 479

1 213 1 182

1 3611 196

937

1 502

3.9

3.5

2.72.3

1.8

1.41.2

2.4

2011 2012 2013 2014 2015 2016 2017 2018

Net debt [PLN m] Net debt/Adj. EBITDA

Net debt/ Adj. EBITDA

1. Most important events of FY2018


3. Outlook

4. Appendix

1.4% 1.4% 2.1% 1.7% 1.6%1.0%

2.5%

Flat glass Packaging glass Detergents Chemicalindustry

Other glass Metallurgy Other58.869.5

63.975.4

Global demand Global capacity2018 2023

22

Soda ash marketOutlook

Increase of soda ash prices in 2019 due to the favourable market environment

Global supply for and production capacities of soda ash*

[million tons]

• an increase in average prices in Western Europe in 2019 by approx. EUR 15/ton (according to IHS and ICIS)

• increased performance and results of the glass industry in the EU

• supplies of soda to Europe from Turkey

• stabilisation of US exports

• stagnation on the market and in the soda industry in China

• continued dynamic market development in India

• slight slowdown in the development of the global

economy**

Significant factors affecting the soda market in 2019

Stable grow in businesses of recipients of soda ash globally*

Source: IHS, * CAGR 2018-2023 (February 2019). ** according to the IMF, GDP growth rate 3.5% in 2019 against 3.7% in 2018.

The increasing demand for soda ash in Central Europe is driven by the growing markets of soda recipients*

Flat glass 36% demand +3.6% CAGR

Packaging glass 28% demand +1.8% CAGR

Chemical industry 17% demand +3.1% CAGR*

5.6% 4.1% 4.5%2.5%

1.1%

4.3%

0.8% 1.3%

Indian Subc. Africa SouthAmerica

CentralEurope

WesternEurope

SoutheastAsia

NorthAmerica

CIS

CIECH presence: >500 kt 100-500 kt <100 kt

CIECH is present on the fastest growing markets*

4.6

5.7

Popyt

2018 2023

Global demand for sodium bicarbonate[million tons]

23

Sodium bicarbonate in Germany - investment finalizationOutlook

Increase in the forecast dynamics of the sodium bicarbonate market

Source: IHS, National Kidney Foundation* CAGR dynamics in 2017-2023

• 10% of the world's population suffers from Chronic Kidney Disease (CKD), which is perceived as a civilisation disease

• increase in the availability of treatment using haemodialysis – more than 2 million peopleworldwide are treated using haemodialysis or have had a kidney transplantation, which saved their lives

• improved health care in developing countries -increase in consumption of soda used in thepharmaceutical industry

Significant factors affecting the increase in demand

Bicarbonate for the healthcare industry (as a excipient), including: bicarbonate for dialysis

24%

7%

7%

8%

13%

20%

21%

Pozostałe

Detergenty/środki czyszczące

Hemodializy

Kosmetykii farmacja

Odsiarczaniespalin

Żywność

Pasze

Global structure of demandfor sodium bicarbonate by segment

in 2023

4.7% - forecasted CAGR

for sodium bicarbonatefor haemodialysis*

Fodder

Food

Flue gasdesulphurisation

Cosmetics and pharmacy

Hemodialysis

Detergents / cleaners

Other

Investment: sodium bicarbonate plant at CIECH Soda Deutschland

New production capacity: 50 tt

Investment completion: H1 2019

CAPEX: ~EUR 25 m

A product with the highest margin and the most stringent quality restrictions. Special purity

requirements and GMP criteria need to be complied with (a similar situation applies to all types of

pharmaceutical-grade soda)

24

Evaporated salt in Stassfurt - the investment continuesOutlook

Estimates of CIECH S.A., based on data provided by Bain&Company and Roskill* Including EUR 11.5 m of funding from regional government funds

The projected significantly faster growth in global demand for evaporated salt in Europe

Expected growth of the European evaporated salt market by more than 2 million tons

by 2021

• changes in the electrolyser technology in the chlor-alkali industry (higher quality requirements for salt as a raw material, met by evaporated salt only)

• replacement of old water treatment technologies (change from briquettes to salt tablets)

• expected growth prospects for the pharmaceutical-grade salt market: aging of the population. increase in expenditure on health care, improvement of the quality of pharmaceuticals

Investment: evaporated salt plant in CIECH Soda Deutschland

Significant factors affecting the increase in demand 2ndlargest

manufacturer of water treatment salt in Europe

1 million tons - total

annual evaporated salt production capacity

CIECH’s salt business in 2020

2ndlargest

manufacturer of pharmaceutical-grade salt in Europe

3rdlargest

manufacturer of evaporated salt in Europe

Sodium chloride (salt)

Salt tablets

New production capacity: 450 tt

CAPEX: ~EUR 100 m*

Investment completion: 2H2020

Investment form: greenfield

Salt granules

Pharmaceutical-grade salt

14.116.3

Popyt

2016 2021

Demand for evaporated salt in Europe*[million tons]

25

Development of the plant protection products business Outlook

New products and geographical expansion in plant protection products

Geographical diversificationProduct strategy Distribution channels

Increased share of sales to

farms with an area of 500+ ha Increase in the share to 20%+

in Poland in 2021

Plan to strengthen distributionin Spain

95%+ Proplan sales through distribution

Investment plan for the acquisition

of documentation rights for

active substances Growth by 40+ by 2021

Extending the application of current products through R&D activities

Product development programmeIncrease in new in-house products by 200+ in 2019-2021

Poland Spain France

Germany RomaniaItaly

• ensuring comprehensive protection of strategic crops and providing a complete protection package for the farmer

• guaranteeing product independence in Europe

• further integration with Proplan and development of foreign market footprint

• zonal (efficacy assessment) registrations on a European scale and accelerated registrations on selected markets

• building a sales network in more markets and strengthening distribution in Spain

• in Poland: enhancing technical consultancy and developing product marketing

Increased share of sales

on foreign markets Increase in the share up to 40% compared

to the results generated in 2018

1. Most important events of FY2018


3. Outlook

4. Appendix

27

Profit and loss account

[PLN thousand] 2018 Q2017 r/r 4Q2018 4Q2017 r/r

Sales revenues 3 672 658 3 579 393 2.61% 970 752 961 743 0.94%

Cost of sales -2 909 242 -2 662 729 9.26% -787 316 -680 549 15.69%

Gross profit/(loss) on sales 763 416 916 664 -16.72% 183 436 281 194 -34.77%

Other operating income 89 040 116 560 -23.61% 32 004 54 985 -41.80%

Selling costs -271 734 -263 481 3.13% -66 856 -73 984 -9.63%

General and administrative expenses -144 997 -141 402 2.54% -31 277 -42 957 -27.19%

Other operating expenses -56 525 -39 533 42.98% -24 715 -11 873 108.16%

Operating profit/(loss) 379 200 588 808 -35.60% 92 592 207 365 -55.35%

Financial income 19 159 13 499 41.93% 4 956 7 127 -30.46%

Financial expenses -87 737 -86 787 1.09% -49 471 -31 478 57.16%

Net financial income/(expenses) -68 578 -73 288 -6.43% -44 515 -24 351 82.81%

Profit/(loss) before tax 311 138 515 745 -39.67% 48 402 183 077 -73.56%

Income tax -127 647 -121 770 4.83% -64 635 -45 411 42.33%

Net profit/(loss) on continuing operations 183 491 393 975 -53.43% -16 233 137 666 -111.79%

Appendix

28

Results by segments - FY

[PLN thousand]Soda

segment

Organic

segment

Silicates

and glass

Transport

segment

Other

operations

Corporate

functions

Elimina-

tionsTOTAL

2018

Total sales revenues 2 422 568 885 699 248 969 147 180 189 547 - -221 305 3 672 658

Cost of sales -1 819 703 -729 278 -196 656 -129 196 -154 454 - 120 045 -2 909 242

Gross profit /(loss) on sales 602 865 156 421 52 313 17 984 35 093 - -101 260 763 416

Operating profit /(loss) 330 619 42 420 14 458 13 638 31 661 -54 448 852 379 200

Profit /(loss) before tax 323 953 23 610 14 637 13 258 31 075 -96 247 852 311 138

Amortization/depreciation 209 234 33 961 19 964 5 747 1 103 5 194 - 275 203

EBITDA 539 853 76 381 34 422 19 385 32 764 -49 254 852 654 403

Adjusted EBITDA 536 856 75 983 34 603 15 333 19 560 -49 693 851 633 493

2017

Total sales revenues 2 429 920 871 557 229 345 124 454 122 792 - -198 675 3 579 393

Cost of sales -1 673 847 -718 489 -176 945 -107 599 -94 694 - 108 845 -2 662 729


Operating profit /(loss) 523 035 66 874 17 187 9 764 23 857 -49 898 -2 011 588 808

Profit /(loss) before tax 506 938 55 253 16 908 9 627 24 289 -95 259 -2 011 515 745

Amortization/depreciation 181 335 29 894 19 657 5 846 2 443 5 213 - 244 388

EBITDA 704 370 96 768 36 844 15 610 26 300 -44 685 -2 011 833 196

Adjusted EBITDA 690 667 96 517 36 768 16 064 14 858 -44 727 -2 010 808 137

Appendix

29

Results by segments - Q4

[PLN thousand]Soda

segment

Organic

segment

Silicates

and glass

Transport

segment

Other

operations

Corporate

functions

Elimina-

tionsTOTAL

Q4 2018

Total sales revenues 621 158 256 017 64 875 38 800 46 133 - -56 231 970 752

Cost of sales -487 106 -199 263 -54 346 -31 577 -37 528 - 22 504 -787 316


Operating profit /(loss) 67 846 20 225 1 274 9 488 2 239 -8 480 - 92 592

Profit /(loss) before tax 64 440 15 670 1 284 9 389 2 783 -45 164 - 48 402

Amortization/depreciation 59 608 10 785 5 088 1 419 -1 063 1 364 - 77 201

EBITDA 127 454 31 010 6 362 10 907 1 176 -7 116 - 169 793

Adjusted EBITDA 121 740 30 429 6 371 6 665 1 510 -5 089 2 161 627

Q4 2017

Total sales revenues 634 235 249 522 61 624 32 409 35 952 - -51 999 961 743

Cost of sales -415 694 -190 597 -44 750 -26 394 -31 855 - 28 741 -680 549


Operating profit /(loss) 166 882 36 886 5 497 3 517 10 600 -15 664 -353 207 365

Profit /(loss) before tax 163 219 33 912 5 397 3 500 10 786 -33 384 -353 183 077

Amortization/depreciation 46 512 7 419 5 088 1 423 623 1 546 - 62 611

EBITDA 213 394 44 305 10 585 4 940 11 223 -14 118 -353 269 976

Adjusted EBITDA 204 758 44 241 10 588 5 483 540 -14 116 -354 251 141

Appendix

30

Abbreviated balance sheet

[PLN thousand] 31.12.2018 31.12.2017

ASSETS

Total non-current assets 3 558 745 3 204 963

Total current assets 1 272 558 1 438 548

Total assets 4 831 303 4 643 511

EQUITY AND LIABILITIES

Equity attributable to shareholders of the parent 1 969 827 2 187 596

Non-controlling interests 288 (2 951)

Total equity 1 970 115 2 184 645

Total non-current liabilities 1 627 589 1 369 282

Total current liabilities 1 233 599 1 089 584

Total liabilities 2 861 188 2 458 866

Total equity and liabilities 4 831 303 4 643 511

Appendix

31

Working capital

[PLN thousand] 31.12.2018 31.12.2017

1. Current assets. including: 1 272 558 1 438 548

Inventory 438 518 364 517

Trade receivables and services and advances for deliveries 377 073 339 092

2. Cash and cash equivalents and short-term investments 221 971 547 733

3. Adjusted current assets (1-2) 1 050 587 890 815

4. Current liabilities. including: 1 233 599 1 089 584

Trade liabilities and advances taken 447 871 387 331

5. Short-term credits and other current financial liabilities* 324 737 234 483

6. Adjusted current liabilities (4-5) 908 862 855 101

7. Working capital including short-term credits (1-4) 38 959 348 964

8. Working capital (3-6) 141 725 35 714

* Other current financial liabilities include current bond liabilities. current finance lease liabilities + current derivative liabilities + factoring liabilities.

Appendix

This document has been prepared solely for informational purposes. It includes only summary information, is not exhaustive, and may not be used as a sole basis for any assessment or analysis. CIECH S.A. makes no guarantees (explicit orimplicit) regarding information presented herein and such information, including forecasts, estimates and opinions, should not be unduly relied upon. CIECH S.A. does not accept any responsibility for possible mistakes, omissions orirregularities found herein. The document is based on sources of information which CIECH S.A. deems to be reliable and accurate, however, it does not guarantee them to be exhaustive nor to fully reflect the actual situation. This documentdoes not constitute an advertisement or a public offer of securities. It may include forward-looking statements that involve investment risks or uncertainties and may significantly differ from actual results. CIECH S.A does not accept anyresponsibility for consequences of decisions made based on this document. The responsibility lies exclusively with the party using the document. This document is protected by the Copyright and Related Rights Act. Copying, publishing ordistributing it requires prior written consent of CIECH S.A.

CONTACT FOR INVESTORS:Małgorzata MłynarskaManagement Board Representative for Investor Relations +48 669 600 567, [email protected]

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financial results for fy2018 and q4 2018 - ciech · 3/27/2019 · stable demand in soda ash on...

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