International Chemical Group

Financial
results
for 2022
Warsaw, 24 March 2023
 2

Legal disclaimer

This elaboration has been prepared for information purposes only, contains only summary information and estimates and does not contain all the
information in the area covered by the elaboration and is not intended to be exhaustive or the sole basis for any analysis or evaluation.
CIECH S.A. does not make any assurances (express or implied) as to the information presented in this elaboration and no reliance should be placed
on any of the information contained herein, including the forecasts, estimates and opinions contained herein. CIECH S.A. accepts no responsibility
for any errors, omissions or inaccuracies contained in this document. The sources of information that CIECH S.A. considers reliable and accurate
have been used to prepare it, however, there is no guarantee that they are exhaustive and fully reflect the facts, and it should be assumed that the
information contained in the elaboration may be subject to change, including material change.
This elaboration does not constitute an advertisement or any offer of securities in public trading. The elaboration may contain forward-looking
statements that constitute investment risks or sources of uncertainty and may differ materially from actual results. The recipient agrees and
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responsibility lies solely with the user of the elaboration.
The elaboration is subject to protection under the Act on Copyright and Related Rights. Its reproduction, publication or dissemination requires the
written consent of CIECH S.A.
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 3

Presentation of CIECH Group results in 2022

01 INTRODUCTION
summary of achievements
in the record year of 2022
04 2023+ OUTLOOK
ambitious goals in demanding
environment

02 SEGMENTS RESULTS
performance peak in soda, good
performance from other businesses
05 STATEMENT OF THE
MANAGEMENT
BOARD
on the KI Chemistry’s tender offer

03 FINANCIAL
SITUATION
06 Q&A
record results and secure balance sheet
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 Statement of
Results by
Introduction Financial results 2023+ outlook the Management Q&A
segment
Board

Introduction

0
 5

The record 2022 results are the result of

a strong commodity market,
which we were able to fully utilize after
investing in the Group's transformation.

NET PROFIT
REVENUES EBITDA(N) from cont.
operations
PLN 5,415m PLN 1,033m
+55% y/y +45% y/y
PLN 565m
+158% y/y
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2022

Achievement of set goals and objectives
We have met the increased
forecast
Over PLN 1 bn EBITDA (N),
32% higher than original forecast.
Nearly PLN 5.5bn revenue, close to
the top end of the increased
forecast.
Safety is our priority
Low LTIF accident rate of 2.5
at the end of 2022.
Almost 30% better than our
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strategic target.
LTIF - number of accidents per 1 million hours worked
6
We paid out a dividend
PLN 79 million advance dividend
payment i.e., PLN 1.50 per share,
giving a 3.5% gross dividend yield.
The payment was made on
29/12/2022.
Innovation for the
environment
Following our ESG Strategy, we are
carrying out a comprehensive
energy transition aimed at reducing
the energy consumption and carbon
footprint of our operations.
 7

We are consistently building the potential for further growth

Soda Segment Agro Segment Silicates Cooperation

Segment for innovation
Brine supply contracts A landmark year for
New, furnace with full
to Polish plants until geographical expansion
capacity utilisation. Investment in start-ups
2035. of Halvetic.
supporting sustainable
Launching sales of this
industries through
EEW Energy from innovative herbicide
Emerald Fund and
Waste project to build in 9 countries in 2022.
CIECH Ventures -
a thermal waste The new branch in
investment in Ecobean,
conversion plant to Romania has
(waste-to-resource
supply a factory in strengthened the
conversion) and
Inowrocław. distribution network.
Foams MagREEsource (rare
earth recycling).
Segment
ISCC Plus Certificate –
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sustainable approach to
production.
 8

New Management Board structure for the next phase of Group transformation

Kamil Majczak
Dawid Jakubowicz Jarosław Romanowski
Member of the Management Board for
President of the Management Board Member of the Management Board, CFO
Strategy and Transformation

M&A, business oversight of all segments,
internal audit, legal, compliance, HR and
internal communications, IR, ESG and
corporate communications,
Health & Safety
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controlling, accounting, purchasing, IT,
taxes, financial management, risk
management, asset management and
security, Ciech Services and foreign
subsidiaries
strategy, business & energy
transformation, corporate research &
R&D, corporate developments & new
ventures, PMO, environmental
protection, operational excellence &

supply chain, quality & chemical product

management, engineering

On 31 January 2023 Mr Mirosław Skowron resigned as a Member of the Management Board of CIECH S.A., while remaining in the organisation until 30 June 2023 as the
Management Board Advisor. The areas so far managed by Mr Mirosław Skowron have been allocated the remaining members of the Management Board of CIECH S.A.
 Statement of

Results by segment
Results by
Introduction Financial results 2023+ outlook the Management Q&A
segment
Board

02
 10

Peak price levels of soda in the last quarter of 2022

PRODUCTION PLANTS IN SODA SEGMENT

Sustained volumes of supply and stable, high demand

for soda in Europe resulted in record price levels
CIECH Soda Polska
in the last quarter of the year. CIECH Soda Deutschland
CIECH SALTZ
Inowrocław & Janikowo,
Poland
Stassfurt, Germany

In a situation of high volatility in raw material costs,

CIECH Soda Romania
we are focusing on maintaining production Ramnicu Valcea, Romania
profitability by accepting a decline in volumes – (plant in hibernation)

- a 9% y/y reduction in sales volumes in Q4'22.

SODA
SEGMENT

SODA ASH PRICES FOR WESTERN EUROPE (%) 2021 = 100% SODA ASH SALES VOLUME (THOUSAND T)

+100 pp.
200% 200% 200% 427
187% 187% 407 406 400 406 396
162% 167% 167% 178% 355
386 381 379 388 390

127% 127% 73% 73% 73%

40% 40% 50% 59% 59%
100% 34%
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127% 127% 127% 127% 127% 127% 127% 127% 127% 127% 127%
100%

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
Jan.22 Feb.22 Mar22 Apr.22 May.22 Jun.22 Jul.22 Aug.22 Sep.22 Oct.22 Nov.22 Dec.22

soda ash prices surcharge

Source: Based on reports by Chemical Market Analytics by OPIS (formerly IHS Markit).
 11

Full realisation of segment REVENUE OF THE SODA SEGMENT Y/Y [PLN M]

revenue potential 937

1 094
1 189

818 130
105 93
680 91
85
536 558 523 551 533 81
493 501 65
71 64
50 49 46 53 39 59
46 40 51 44 54 779
50 46 53 52 709
630
509
• Growth in all product lines resulted in a +75% y/y increase 365 336 348 380 340 337 358 427

in Soda segment revenues.

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
• Rising soda ash revenues (+83% y/y) are the result of
a proactive approach to negotiations - an effective mechanism Soda ash Baking soda Salt Other
for monthly/quarterly price updates in response to rising raw
material costs.
• Baking soda revenue up +57% as a result of price increases REVENUE OF THE SODA SEGMENT Y/Y [PLN M]

SODA following soda ash, with continued stable demand in key sectors +52% +75%
SEGMENT
(pharmaceutical, food and animal feed). +57% +83%
+83%
64,0 1 189,2
• Salt sales increased by +83% y/y due to higher sales 59,0
33,8
volumes of products from the Polish and German production lines 352,8
and price list changes implemented during the year.
• Other segment revenues primarily consisted of electricity sales 679,6
from the CHP plant in Stassfurt, Germany.
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Q4'21 Soda ash Baking soda Salt Other Q4'22

 12

Above-average EBITDA(N) of the Soda segment in Q4'22

EBITDA(N) OF THE SODA SEGMENT [PLN M]

+167%
• 167% y/y increase in EBITDA(N) due to the realized
margin from electricity sales and the effective application
of the price adjustment system in response to the y/y
increase in the prices of key raw materials: thermal coal
319 (Poland) and gas (Germany); production: coke and
anthracite; and CO2 certificates.
168 161 187
131 129 137 143 115 120 128 • First results of energy transition and operational
113
transformation - improved production efficiency through
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 numerous innovations and improvements.
• As part of the transformation activities, the following were
SODA achieved:
SEGMENT
EBITDA(N) MARGIN OF THE SODA SEGMENT • higher efficiency in the use of raw materials, including
32% limestone and furnace fuel (coke/anthracite), and lower
27%
energy consumption and – consequently – lower CO2
26% 26% 27%
24% emissions,
22% 18%
20%
17% 17% • automation of processes improving the cost parameters
16%
of production.
• Significant increase in % EBITDA(N) margin due to
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a proactive pricing policy, favourable energy sales

and a flexible approach to securing raw material costs.
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

In 2022, the transport business was transferred from the Soda Segment to the Other Activities Segment. Comparative data for 2021 has been restated.
 13

Good results in a challenging REVENUE OF THE AGRO SEGMENT [PLN M]

High High

market environment season season

245
169 140 139
132 107
93 94 71 99 76
48

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

CIECH Sarzyna
Nowa Sarzyna, Poland EBITDA(N) OF THE AGRO SEGMENT [PLN M]

High High
season season
Proplan CIECH Agro Romania
Madrid, Spain Bucharest, Romania

91

Production 37 40
5 0 24 20 7 27
AGRO 17 19 14
SEGMENT Distribution
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

EBITDA(N) MARGIN OF THE AGRO SEGMENT

• Good sales of high-margin herbicides despite weaker market demand due
37%
to cost increases and high inventory levels at distributors.
29%
• 19% EBITDA(N) margin - a good result despite rising costs thanks to
a strong brand and established relationships with customers. 22% 22%
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20% 19% 20% 19%

• In the last quarter of the year, Halvetic's sales network was fully 13%
operational in 10 countries. 6%
• New distribution centre in Romania with a wider product range.
9%
1%
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
 14

Very good position REVENUES OF THE FOAM SEGMENT [PLN M]

High base
-15%

on a competitive market
103 96 103 98
85 88 82 88
65 71 70
46

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

CIECH Pianki
Bydgoszcz, Poland
EBITDA(N) OF THE FOAM SEGMENT [PLN M]
High base
+12%

19 18 17 19
16
10 12 12 11 10
8 7
FOAMS
SEGMENT
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

• A temporary period of raw material shortage towards the end of the year EBITDA(N) MARGIN OF THE FOAM SEGMENT
resulted in a reduction in supply and - consequently - an increase in the
price of polyurethane foams. 22%
18% 18%
17% 16%
• Thanks to the relationships we have developed with suppliers, we have 15% 15% 14%
12% 14% 13% 14%
maintained continuity of supply of the necessary raw materials at
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competitive prices.
• Increase in EBITDA(N) margin to 22% in Q4'22 due to secured supply
and optimised inventory management of raw materials secured at a
competitive price and retention of key customers despite the weak market
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
in the furniture industry.
 15

Successful commercialisation of SILICATES SEGMENT REVENUE [PLN M]

+75%

new production capacity

188
120 135
77 87
47 48 45 57 49 55
33

Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

CIECH Vitrosilicon
Iłowa & Żary, Poland EBITDA(N) OF THE SILICATES SEGMENT [PLN M]

CIECH Soda Romania +233%

Ramnicu Valcea, Romania

30 28
26

6 6 9 7 8 7 8 9
SILICATES 5
SEGMENT
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

EBITDA(N) MARGIN OF THE SILICATES SEGMENT

• Full utilisation of new capacity (up 30% y/y to 240,000 tonnes).
Decrease q/q due to planned shutdown of reactivated furnace in response to 21% 21%
19%
market demand. 18%
17% 16%
• Stable customer portfolio despite weakness in the automotive industry. 13% 12% 12%
11% 11%
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Limited supply of silicates in Europe due to the political situation in the 10%
region.
• The majority of contracts are based on pricing formulas, allowing margins
to be secured in a volatile raw material price environment including soda ash
and gas (locally sourced). Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
 16

Successful quarter in the REVENUES OF THE PACKAGING SEGMENT [PLN M]

40 +8%

Packaging segment 35
30
25
20
35
15 29
27 24
10 17 18 18 19 19
14 14 16
5
0
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

CIECH Vitro
Iłowa, Poland EBITDA(N) OF THE PACKAGING SEGMENT [PLN M]

8
+29%

6
4
5 6 6 5 6
2 5 4 4 4 5
3
0
-3
-2
PACKAGING
SEGMENT
-4
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22

EBITDA(N) MARGIN OF THE PACKAGING SEGMENT

36%
40% 32% 34% 31% 31%
27%
30% 22%
• Revenue growth of 8% y/y as a result of implemented product price 15% 18% 16% 18%
increases. 20%
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10%
• Positive effect on EBITDA(N) due to continued optimization of the production
processes and warehouse management, as well as improved production 0%

parameters and increased ability to process melted glass (4-section automatic -10%
-13%
machine). -20%
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
 Statement of
Results by
Introduction Financial results 2023+ outlook the Management Q&A
segment Board

Financial results

0
 18

Soda segment drove EBITDA(N) growth in Q4’22

EBITDA(N) (PLN M)

+137%
y/y
+200 -13 +2 +20 +1 +6

372

157

4Q21 Soda s. Agro s. Foam s. Silicates s. Packaging s. Other 4Q22

Tangible effects of a Reduction caused by Improved Full utilisation of the Growth through price Higher business
proactive pricing policy an increase in the performance on a 30% expanded list updates and service costs
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focused on defending cost of raw materials highly competitive production capacity optimisation of neutralised by a
profitability supported and a slowdown in market through and margin production positive variance on
by a favourable result demand for efficient raw material protection through processes. the provision for the
from energy sales. herbicides. management. pricing formulas. incentive
programme.
 19

Record results thanks to full utilization of market potential

PLN M 2021 2022 y/y Q4’21 Q4’22 y/y The hike in operating profit in Q4'22 is primarily due to:
• realisation of full potential in the Soda segment, thanks to an active pricing
policy that takes into account increases in the cost of key raw materials,
• full commercialisation in the Silicates segment, where we are selling on a large
scale based on pricing formulas that reflect the change in raw material costs.
Sales 3,483.7 5,415.5 +55% 1,015.9 1,529.9 +51%

The gross profit in Q4'22 exceeded the result of the whole of 2021. In
EBITDA(N) 711.3 1,033.2 +45% 157.0 372.0 +137% addition to the increase in operating profit, this high result was influenced by:
• the change in the discount rate due to the increase in interest rates, which,
after the revaluation of provisions, had a positive impact on financing activities
of approx. +98 million (provisions set up in euros),
EBIT 340.5 590.2 +73% 45.2 259.3 +474% • interest reimbursement from the Treasury due to the positive resolution of tax
cases of approx. +25 million (CR 45/2022 and 26/2022).
The positive effect was partly neutralised by higher interest expenses in particular
from leasing and factoring (higher commissions, interest rates and higher use
Gross of factoring limits).
256.9 591.8 +130% 22.4 334.9 +1,396%
profit
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In addition, the net profit for Q4'22 was positively influenced by the refund of tax
Net profit 219.2 564.7 +158% 48.1 332.0 +590% liability amounts amounting to (c. PLN 52 million, CR 45/2022 and 26/2022).

Data relate to continuing operations

 20

Safe relation of net debt and EBITDA(N)

EBITDA(N) VS CAPITAL EXPENDITURE [PLN M]

372
• EBITDA(N) significantly above capital expenditure - following
257
229 230
a record investment program, we are generating profits
222
169 169 185 188191 177 179
202 and cash reducing net debt and building dividend potential.
140140 134127 142 145 157
127 120
107 93 • Approximately one-third of capital expenditure is made
up of development projects, with the remaining
investments being of a replacement nature.
Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
• Nearly 80% of total expenditure are projects implemented in
EBITDA (N) Capital expenditure
the Soda segment focused on production cost
optimisation.

NET DEBT AND NET DEBT /EBITDA(N) 4 QUARTERS [PLN M]

2,6 2,5
3,0 • We have reduced net debt/EBITDA(N) to a very safe level
2 000 2,4 2,5
2,2 2,1
2,3
2,5 of 1.2x.
1 500 1,7 1,8
1,6 1,6 2,0 • At the end of Q4'22, we had drawn PLN 1.9 bn out of the PLN
1,2
1 000 1,5 2.1 bn available from the 5-year syndicated credit from 2021.
1 681 1 536 1 504 1 531 1 503 1 502 1 639
1,0
500 1 178 1 220 1 329 1 322 1 280 • The effective interest rate on the credit over the remaining
0,5
term is 1.3% thanks to the hedging of interest rate risk with
0 0,0
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Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
IRS and CIRS contracts covering the entire nominal value of
the credit.
Net debt [PLN M] Net debt/EBITDA(N) (4 quarters) [x]

Net debt calculated as long- and short-term interest-bearing debt, net of IFRS16 leases and valuation of financial
instruments. Cash is net of restricted funds.
 Statement of
Results by 2023+
Introduction Financial results the Management Q&A
segment outlook Board

2023+ Outlook

0
 22

The expansion of global soda CHANGE IN GLOBAL PRODUCTION CAPACITY OF SODA ASH
[thousand tonnes]
production capacity is in progress 7 000
6 000
5 000
4 000
GLOBAL SODA ASH PRODUCTION CAPACITY [million tonnes] 3 000
2 000
1 000
92%
90% 92% 0
88% 85% 86% 87% 87% 87% 85% 85%
83% -1 000
-2 000
2022 2023 2024 2025 2026 2027

China North America India Africa and the Middle East Europe

89 90
80 83 85 Source: Based on reports by Chemical Market Analytics by OPIS (formerly IHS Markit).

69 72 71 71 70 74
67

Key soda capacity expansion projects:

• Berun Yingen (China): 5 million tonnes
(+1.6 million tonnes in 2023, +3.4 mln ton w 2024)
2017 2018 2019 2020 2021 2022 2023P 2024P 2025P 2026P 2027P 2028P
• Ciner (Turcja): 1 mln ton (+400 million tonnes in
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2023, +100 thousand tonnes in 2024, +500 thousand

Capacity Capacity utilization
tonnes in 2025)
Source: Based on reports by Chemical Market Analytics by OPIS (formerly IHS Markit). • Genesis Alkali (USA): +1.2 million tonnes
(+825 thousand tonnes in 2023, + 309 thousand
tonnes in 2024)
 23

Normalisation of raw material prices as a result of lower global

demand
2250
GAZ
COAL
W Niemczech, w segmencie Sodowym zużywamy rocznie
Annually, we use approx. 850 thousand tonnes of thermal coal.
2000 ok. 2,4 TWh gazu ziemnego. Zabezpieczyliśmy 2/3 zużycia gazu
Renegotiations of contracts with Polish mines concluded at the end
do produkcji planowanej w całym 2023 roku po cenach
of 2022 for the supply of hard coal in 2023 are underway.
przekraczających aktualny poziom, jednak poniżej szczytu.
1750

1500 COKE
Due to the expected increase in coke prices in Q2'23, we secured
most of the demand by the end of the first half of the year. In the
1250 production of soda, we can use anthracite and coke
interchangeably, using approx. 150-170 thousand tonnes of these
raw materials in any proportion.
1000

750 GAS
In Germany, in the Soda segment, we use approx. 2.4 TWh of
natural gas annually. We have secured 2/3 of gas consumption for
500 production planned throughout 2023 at prices above the current,
but below the peak, level.

250

CO2 (EUA)
0 Free CO2 emission allowances will cover about half of our demand
in 2023. We hedged about half of the remaining open position.
12.20

10.21

05.22

03.23
01.20
02.20
03.20
04.20
05.20
06.20
07.20
08.20
09.20
10.20
11.20

01.21
02.21
03.21
04.21
05.21
06.21
07.21
08.21
09.21

11.21
12.21
01.22
02.22
03.22
04.22

06.22
07.22
08.22
09.22
10.22
11.22
12.22
01.23
02.23
The total volume of ETS emissions in 2022 is approx. 2.6 million
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tonnes of CO2. We also still have 132,000 certificates from

Romania that we can sell or use to redeem our emissions.

01.2020 = 100 COAL CIF ARA COKE CIF ARA GAS (DAY AHEAD) CO2 DECEMBER FUTURES (EUA)
 A stronger link between prices
and the cost of raw materials

SODA ASH PRICES FORCAST FOR WESTERN EUROPE (%)

100% 100%

100% 90%
93% 83% 84%

83%

74% • Some soda sales are based on

69% price formulas based on
the cost of raw materials.
• Expected normalisation of
soda prices to global levels.
• Leaving a larger y/y open
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Q4'22 2023P 2024P 2025P 2026P

position on commodities
Q4 2022 = 100% IHS forecast from XI 2022 IHS forecast from II 2023 gives us greater security and
Market prices (contracts and spot market) analysed taking into account the surcharge. flexibility.
Source: Based on reports by Chemical Market Analytics by OPIS (formerly IHS Markit).
 25

2023+ Outlook

2022 2023+

Soda prices Supply growth

Soda prices
and margins Increase and
Increase in raw Capacity drop and
increase: in capacity normalization
material prices expansion tightening
RECORD utilization of capacity
competition
RESULTS utilization

Falling
commodity
prices
PERSPECTIVES IN THE COMING YEARS
• Increased demand for soda due to sustainability investments, Economic
downturn and
such as glass for photovoltaic panels demand
weakening
• Rebound in demand for flat glass for the construction industry
in Poland and demand due to the reconstruction of Ukraine
after the end of the war
Growing use of soda for lithium carbonate, used in the production
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•
of lithium-ion batteries
 26

Repeating the y/y result is an ambitious target for 2023

y/y

Focusing on margin value from soda

Commercialisation of salt production Focus on operational transformation -
ash and baking soda sales, by e.g.,
capacity – co-packaging for the food reducing raw material consumption,
further optimization of the production
Soda and HoReCa sectors. accelerating energy transformation.
cost

The high market level of inventories Successful introduction of the flagship

produced in 2022, at the peak of Effective management of the product product Halvetic into further markets
the cost of raw materials and energy, portfolio and work on the development and further commercialization of the
Agro may negatively affect the segment's of further products. distribution centre in Spain and the
margin. newly opened one in Romania.

Implementing ecological solutions in Expanding the range to include

Maintaining the position of the leading
production (circular economy, environmentally sustainable foam
foam manufacturer in Poland.
Foams recycling of raw materials). products.

Weakening demand for silicate-derived Energy efficient and higher quality Stable contribution from new
products in the automotive, detergent production increasing product production capacity and modernised
Silicates and paper manufacturing industries. competitiveness. production line.
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Focus on operational efficiency,

Price lists adjustment to the current Continue cost optimization to maintain
continuing the optimisation
situation and possible cost changes. result growth.
Packaging programme (KAIZEN).
 27

Our goal is regular dividend payment to shareholders

On 29/12/2022,
DIVIDEND (PLN M)
we paid an advance
dividend on 2022
12,4%
earnings in the
amount of
PLN 1.50 per share,
a total of
PLN 79 million.

395,2
5,2% 5,8%

3,5%

150,2 158,1

79,0

2016 2017 2018 2019 2020 2021 2022 advance

2022 zaliczka
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Dividend shown in the year of payment

Gross dividend yield (based on the last day cum-dividend closing price)
 Statement of

Management Board
Results by 2023+
Introduction Financial results the Management Q&A
segment outlook Board

Statement of the

05
 29

Tender offer for shares announced by KI Chemistry S.á r.l.

CIECH S.A. SHAREHOLDING STRUCTURE
THE PRICE PROPOSED IN THE TENDER OFFER
VS. THE SHARE QUOTE OF CIECH S.A. CONDITIONS:
Agreement between KI Chemistry
Nationale-
Nederlanden OFE
(the Bidder) and CIECH S.A.
5%
Tender offer regarding the establishment of
Others Price per share price vs. strategic cooperation
38% price per share
Drugi Allianz
OFE General Meeting resolutions:
6% Closing price
47.58 +2.98%
10.02.2023
• the right of the majority
3M average shareholder to appoint most
42.63 +14.94% members of the Supervisory Board
until 10.02.2023

6M average • introduction of 15% quorum at the

KI Chemistry 37.91 +29.25%
until 10.02.2023 general meeting of the Company
s. à r. l.
51%
• authorization of the Company's
Management Board to increase
the share capital by no more than
PLN 197,6m
____
9 March 2023 Target:
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Following KI Chemistry's request,

tender offer for Subscription period: Control over 100% an Extraordinary General Meeting
Price per share:
25,747,857 shares 10.03– 12.04.2023 r. shares in CIECH S.A. of Shareholders has been called for
49.00 PLN
(49% of the CIECH S.A.’s and delisting of the April 11, 2023.
share capital) company
 30

Statement of the Management Board on the tender offer

The Management Board's

statement was developed
The Management Board
based, among other things,
stated that the share price set
on fairness opinions issued by
in the tender offer
investment banks Lazard and
at PLN 49.00 reflects the
Rothschild, as well as
fair value of the Company.
brokerage institutions
recommendations regarding
CIECH S.A.'s valuation.
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 31

Summary

• Record 2022 results due to the advantageous conditions in the market for soda
(excess demand over supply), which accounts for about 70% of the Group's
turnover

• Soda prices increasingly linked to raw material costs - expected declines, we are
focusing on defending our margin
• Global increase in soda capacity in coming years will intensify competition and normalize
results
• Maintaining the level of the result in 2023 is an ambitious goal that we will work
towards
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• KI Chemistry's tender offer for 100% of shares:

in the opinion of the Management Board, the price of PLN 49 per share
reflects the fair value of the Company
 Statement of the
Results by
Introduction Financial results 2023+ outlook Management Q&A
segment Board

Q&A

06
 Statement of the
Results by
Introduction Financial results 2023+ Outlook Management Q&A
segment Board

Supporting slides

07
 34

9 production plants in 3 countries

Stassfurt thousand T
Soda ash 610 Bydgoszcz thousand T
Baking soda 110 Foams 33
Salt 450
BYDGOSZCZ
Inowrocław & thousand T
STASSFURT Janikowo
INOWROCŁAW
Soda ash 1 450
JANIKOWO
Żary & Iłowa thousand T ŻARY Baking soda 90

Silicates 220 IŁOWA Salt 550

NOWA
Iłowa thousand T SARZYNA thousand
Nowa Sarzyna
T
Packaging 32
Plant protection products –
15
herbicides
Plant protection products -
7
MCPA

Râmnicu thousand T
RÂMNICU VÂLCEA
Vâlcea/Govora
Silicates 20
Râmnicu
thousand T
Vâlcea/Govora
Soda ash
540
(plant in hibernation)
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Soda Segment Agro Segment Foams Segment Silicates Segment Packaging Segment
 35

Quarterly results reflect the effective management of the Group

PLN million Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22

Sales 790.5 690.1 691.0 804.2 861.1 834.7 772.1 1015.9 1242.6 1236.3 1406.7 1529.9

Gross profit on sales 173.6 152.0 141.7 184.2 186.0 206.0 134.3 106.0 268.3 259.3 255.7 384.9

Margin (%) 22.0% 22.0% 20.5% 22.9% 21.6% 24.7% 17.4% 10.4% 21.6% 21.0% 18.2% 25.2%

SG&A costs 103.5 75.8 85.4 79.0 99.5 106.3 96.4 170.1 132.0 160.4 139.0 158.6

Other operating activities -7.0 -19.9 4.1 -34.9 50.8 0.9 19.6 109.3 -5.0 -13.2 -2.8 33.0

Operating profit 63.1 56.3 60.3 70.3 137.2 100.6 57.5 45.2 131.4 85.7 113.9 259.3

Margin (%) 8.0% 8.2% 8.7% 8.7% 15.9% 12.1% 7.4% 4.4% 10.6% 6.9% 8.1% 16.9%

Net financial activity 4.7 -45.8 -8.4 -12.2 1.1 -60.8 -1.3 -22.8 -15.1 -24.9 -35.1 75.3

Tax -27.2 -17.4 -14.8 -5.3 -24.4 -23.9 -15.1 25.7 -12.4 -17.5 5.7 -2.8

Profit from discontinued

-1.5 1.7 5.2 -0.7 69.8 -7.3 0.0 -0.7 0.0 0.0 0.0 0.0
operations
Net profit of the parent
39.7 -5.0 42.6 52.0 184.4 8.0 41.6 58.4 104.3 44.9 85.3 332.5
company
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EBITDA 142.0 135,5 139.7 166.1 221.1 186.6 145.0 162.5 229.2 188.8 226.2 377.3

EBITDA(N) – normalised 140.0 134,5 142.3 168.6 221.9 187.7 144.7 157.0 229.4 201.9 229.9 372.0

EBITDA(N) margin (%) 17.7% 19,5% 20.6% 21.0% 25.8% 22.5% 18.7% 15.5% 18.5% 16.3% 16.3% 24.3%
 36

Secure balance sheet allows dividend payment

PLN million Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
Fixed assets, including: 3 929.2 3 799.8 3 935.3 4 251.3 4 426.4 4 482.7 4 655.2 4 787.6 4 799.2 4 781.5 4 927.4 4 900.7
Tangible fixed assets 2 968.6 2 964.2 3 102.4 3 366.3 3 468.3 3 528.2 3 653.5 3 863.3 3 872.3 3 875.1 3 957.4 3 933.4
Right to use assets 193.4 185.6 179.7 176.7 172.2 173.0 176.2 201.5 193.3 187.5 181.7 181.2
Intangible assets (incl. goodwill) 592.0 477.3 480.3 544.9 623.2 519.9 528.8 518.3 518.6 528.4 541.5 546.4

Deferred income tax assets 55.7 55.0 54.6 50.7 47.7 44.6 46.4 75.0 80.5 90.9 141.4 132.8

Current assets, including: 1 830.2 1 636.0 1 375.7 1 664.2 1 627.5 1 487.2 1 545.5 2 347.6 2 591.7 2 564.0 2 780.2 3 191.8
Stocks 429.8 360.1 326.3 349.0 357.5 374.9 388.4 459.3 437.8 549.9 649.9 771.5
Short-term intangible assets 0.0 0.0 0.0 185.2 153.0 0.3 102.4 403.4 615.1 616.3 624.9 515.9
Short-term financial assets 11.4 3.0 5.0 19.9 59.2 103.2 215.4 102.4 125.1 189.9 199.6 359.6
Trade and other receivables 686.0 442.8 446.3 478.5 548.7 483.5 465.1 562.1 673.1 559.9 653.4 805.0
Cash and cash equivalents 693.5 673.4 439.5 443.9 482.6 502.1 346.2 799.0 723.0 634.8 650.2 685.0
Assets 5 759.4 5 435.8 5 311.0 5 915.5 6 053.8 5 969.9 6 200.7 7 135.2 7 390.9 7 345.5 7 707.6 8 092.5
Equity 2 002.6 1 988.6 2 041.7 2 118.5 2 305.2 2 178.2 2 296.5 2 386.3 2 493.6 2 513.5 2 534.4 2 704.3
Equity of the parent company’s owners 2 003.6 1 990.1 2 043.5 2 120.6 2 307.9 2 180.3 2 299.9 2 390.1 2 497.6 2 518.8 2 539.8 2 710.2
Non-controlling interests -1.0 -1.5 -1.9 -2.1 -2.7 -2.1 -3.4 -3.8 -4.0 -5.3 -5.4 -5.9
Long-term liabilities, including: 2 197.2 2 167.9 2 179.3 401.1 2 161.2 2 368.6 2 479.4 2 542.1 2 510.4 2 458.3 2 474.5 2 181.4
Liabilities arising from loans and other debt
1 759.9 1 754.8 1 758.0 0.4 1 741.9 1 851.7 1 853.9 1 854.2 1 855.4 1 763.1 1 766.4 1 671.3
instruments
Leasing liablities 115.3 111.3 107.8 103.5 100.5 101.0 103.3 121.2 116.2 112.5 109.9 104.8
Provisions (other non-term) 108.0 106.3 107.6 153.3 155.8 153.2 156.2 270.6 273.8 277.5 288.2 137.2
Provision for deferred tax 68.6 53.8 52.9 49.0 54.9 67.8 117.2 49.1 38.3 24.6 26.1 25.1
Short-term liabilities, including: 1 559.7 1 279.3 1 090.0 3 395.9 1 587.4 1 423.2 1 424.8 2 206.8 2 386.9 2 373.7 2 698.7 3 206.8
Liabilities due to loans and other debt
464.7 367.3 107.0 1911.1 163.7 46.3 58.1 5.3 25.4 99.1 140.1 193.8
instruments
Leasing liabilities 27.1 25.4 23.7 25.7 23.3 24.2 22.7 30.0 28.0 27.2 26.2 30.5
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Trade and other liabilities 899.4 676.4 757.8 1 286.3 1 258.8 1 200.7 1 197.7 1 956.4 2 113.1 2 080.3 2 366.6 2 793.3
Provisions (short-term provisions for
employee benefits and other other 105.6 120.1 123.1 98.3 95.8 95.7 94.8 86.5 88.0 100.1 103.9 121.9
provisions)
Liabilities 5 759.4 5 435.8 5 311.0 5 915.5 6 053.8 5 969.9 6 200.7 7 135.2 7 390.9 7 345.5 7 707.6 8 092.5
 37

Strong cash flow

PLN million M3’20 M6’20 M9’20 M12’20 M3’21 M6’21 M9’21 M12’21 M3’22 M6’22 M9’22 M12’22

Net profit 39.4 34.0 76.2 128.0 183.7 192.3 233.6 281.1 104.0 147.5 232.6 564.7

Depreciation 81.6 163.4 242.8 338.6 83.8 169.8 257.3 374.6 97.8 200.9 313.3 431.3

Working capital and reserves -127.0 94.3 182.2 358.0 17.9 108.2 169.5 517.5 -43.9 169.1 246.2 138.1

Operating cash flow 11.0 313.9 517.1 767.2 216.0 431.2 591.1 1263.7 150.7 392.6 519.4 842.3

Investment expenses -
purchase of intangible assets -140.4 -267.5 -436.5 -694.0 -184.9 -376.0 -552.7 -731.4 -127.3 -234.7 -327.8 -447.9
and tangible fixed assets

CO2 expenses -22.7 -107.7 -107.7 -129.2 -82.9 -82.8 -82.8 -133.9 -90.5 -303.6 -306.0 -372.3

Investment cash flow -163.4 -379.6 -550.9 -834.0 -170.7 -368.2 -521.7 -692.1 -219.9 -543.0 -646.9 -845.0

Covenant net debt 1 681.0 1 536.0 1 504.0 1 531.0 1 503.0 1 502.0 1 639.0 1 178.0 1 220.3 1 329.0 1 322.0 1 280.0

Dividend 0 0 0 0 0 0 -158.1 -158.1 0 0 0 -79.1

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Financial cash flow 541.3 446.9 172.3 211.7 -12.1 -9.9 -14.2 -63.4 -7.5 -14.2 -21.7 -30.5

Cash 693.5 680.8 442.0 448.8 482.6 502.1 346.2 799.0 723.0 634.8 650.2 685.0
 38

Active management of CO2 2022

emissions 1% 0%
CIECH Soda Polska (CHP
plants)
15% CIECH Soda Polska
(production plants)
In 2021, the Group changed its Accounting Policy in terms of recognising the emission allowances
granted and the rules for measuring the outflow of rights. 5% CIECH Soda Deutschland
(production plant)
After the change, the emission allowances granted are recognised in the balance sheet in assets at
2 636 953
tCO2 CIECH Energy Deutschland
the time they are received on the account at fair value determined as at that day. At the same time, 16% (CHP plant)
the same value is recognised in the accrued income account (as a production cost subsidy, regulated 63%
CIECH Soda Romania
in IAS 20 Government Grants and Disclosure of Government Aid). The entity receiving the rights (production plant)
books them as intangible assets. At the time of the emissions covered by the received rights, the
CIECH Vitro (production
corresponding value recognised in the accrued income account reduces the operating costs related to plant)
emissions.

If there were no emissions for which the entity received rights, then the part of the deferred income
related to them remains in the balance until these rights are disposed of. If the rights are used to
cover emissions in the next year (years), the relevant part of the deferred income reduces the CO2 EMISSIONS AND ALLOCATIONS OF FREE CO2 CERTIFICATES (EUA)
operating costs of emissions of the year in which the rights are used, and if such rights have been [THOUSAND TONNES OF CO2]
sold, the deferred income reduces the cost of the rights sold.

If additional rights are purchased on the market, these rights are valued at purchase price and 2 851
presented as intangible assets. 2 582 2 593 2 637

The entity creates a provision for the cost of covering CO2 emissions into the atmosphere in the 965
736
amount of the product of the amount of CO2 emitted (in tonnes, which corresponds to one EUA 1 018 1 195
allowance) and the unit price of emission allowances. The emission costs are covered by the
allowances accumulated on the brokerage account as at the balance sheet date in accordance with
the principle of detailed identification.
1 886 1 846
1 575 1 442
In the event of an insufficient number of allowances, the missing part of the reserve is valued at the
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price of allowances under open futures contracts as at the balance sheet date, in accordance with the
principle of detailed identification. In the event that an insufficient number of allowances has been
contracted, the provision for emission coverage costs is valued at the current (as at the balance sheet 2019 2020 2021 2022
date) EUA market price. Free CO2 certificates Open position
Until 2020, the emission allowances granted were not recognised in the balance sheet at the time they
were granted and in subsequent periods. The entity receiving the rights registered them as off-
balance sheet items.
 39

Glossary
EBITDA (%) (operating profit + depreciation for the period) / net revenues from the sale of products, services, goods and materials for the period

EBITDA without one-off events, the most important of which are described in Note 2.5 / net revenues from the sale of products, services,
Normalised EBITDA (%)
goods and materials for the period

Gross return on sales gross profit on sales for the period / net revenues from the sale of products, services, goods and materials for the period

Return on sales profit on sales for the period / net revenues from the sale of products, services, goods and materials for the period

EBIT return operating profit for the period / net revenues from the sale of products, services, goods and materials for the period

EBITDA return (operating profit + depreciation for the period) / net revenues from the sale of products, services, goods and materials for the period

operating profit for the period without one-off events, the most important of which are described in Note 2.5 / net revenues from the sale of
Normalised EBIT return
products, services, goods and materials for the period

EBITDA for the period without one-off events, the most important of which are described in Note 2.5 / net revenues from the sale of
Normalised EBITDA return
products, services, goods and materials for the period
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Net debt calculated as long-term and short-term interest debt, excluding IFRS16 leases and valuation of financial instruments. Cash is
Net debt
reduced by funds with limited availability.
Thank you for your
attention

Magdalena Cumanis
Director of Investor Relations and Corporate
Communication
magdalena.cumanis@ciechgroup.com
Tel: +48 514 297 611

Anna Zieja
Investor Relations and ESG Coordinator
anna.zieja@ciechgroup.com
Tel: +48 509 485 222

ciechgroup company/ciech-sa /rzecznikciech WWW.CIECHGROUP.COM