Investor Presentation • Dec 5, 2018
Investor Presentation
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5 December 2018
This elaboration has been prepared solely for information purposes; it contains only summary information and is not intended to be exhaustive, nor is it intended to be the sole basis for any analysis or evaluation. This elaboration does not contain a complete or comprehensive financial or commercial analysis of CIECH S.A. or the CIECH Group, nor does it present its position or prospects in a complete or comprehensive manner. CIECH S.A. has prepared this elaboration with due care, however, it may contain some inaccuracies or omissions. CIECH S.A. does not accept any responsibility for any errors, omissions or irregularities contained herein. This elaboration cannot be understood as a forecast of future results of CIECH S.A. or the CIECH Group. Statements regarding expectations as to future financial results are not a guarantee or assurance that such results will be achieved in the future. Actual results achieved by CIECH S.A. or the CIECH Group may significantly differ from those described herein. The data presented depend on a number of factors that may cause the actual results achieved by CIECH S.A. or the CIECH Group to significantly differ from those described in this document. Many of such factors are beyond the knowledge, awareness and/or control of the Company or the Company's ability to predict the same. The Management Board of CIECH S.A. does not make any assurances (express or implied) as to the information presented in this elaboration. The sources of information used herein are considered by CIECH S.A. credible and accurate, however, there is no guarantee that they are comprehensive and fully reflect the facts. This elaboration does not constitute an advertisement. It does not constitute any purchase or sales offer, or any offer the purpose of which is to obtain an offer to buy or sell any securities, instruments or participation in any commercial venture, and nothing contained in this elaboration will form the basis of any contract, commitment or investment decision, nor should it be relied upon in relation to any contract, commitment or investment decision. CIECH S.A. is not liable for the effects of any decision taken on the basis of this elaboration. Such responsibility lies solely with the user of this elaboration. This elaboration is subject to protection under the Copyright and Related Rights Act. It cannot be reproduced, published or disseminated unless with the written consent of CIECH S.A.
Dawid Jakubowicz President of the Management Board
A valued expert with international operational experience in building the value of companies from the chemical, mining, energy, automotive and new technologies sectors. He worked for an international audit company, KPMG. He held the office of a member of the Supervisory Board of CIECH S.A. from June 2018 to December 2018.
Artur Osuchowski Member of the Management Board
Mirosław Skowron Member of the Management Board
Sebastian Kulczyk
Chairman of the Supervisory Board
Since 2010, he has been associated with the Kulczyk Investments Group, since December 2013, as the Chief Executive Officer of Kulczyk Investments. In 2009-2010, he worked at the Lazard investment bank, London. He has experience in managing companies operating in the electronic business sector. He also worked in the Sony BMG digital media department, New York. For many years, he has been investing and developing ventures in the new-tech area.
Tomasz Mikołajczak Deputy Chairman of the Supervisory Board
Piotr Augustyniak Supervisory Board Member
Mariusz Nowak Supervisory Board Member
Artur Olech Supervisory Board Member
segment, other activities, corporate functions and consolidation exclusions
Note: Results for four quarters were presented: Q4 2017-Q3 2018; the sum of segments is not equal to the results of the CIECH Group due to the omission of the results of the transport
LTM revenue: PLN 3,664 M LTM adj. EBITDA: PLN 723 M LTM adj. EBITDA margin: 19.7%
| VALUES | |||
|---|---|---|---|
| C lient-centric, |
Increased customer satisfaction |
We want to be an organisation that listens to our customers' needs, constantly adjusting its offer, treating customers as ambassadors |
|
| I nnovative, and |
Innovation growth | We recognise that only through increased innovation can we achieve an increase in the value of the Group and a competitive advantage |
|
| E fficient |
Continuous efficiency improvement |
Every day we strive to improve our efficiency. We implement performance monitoring programmes, reduce costs and operational risks |
|
| C hemical H olding |
Effective management | We strive for the maximum use of resources - and effective management of the Group in the conditions of a dynamically changing world, while meeting the highest regulatory standards |
Our vision is to create an effective and diversified chemical holding which generates a positive value for shareholders in the long term, and, apart from the soda business, holds a significant position in innovative, specialised market segments
| Shareholders | Customers | Employees | Community & Ecology |
|---|---|---|---|
| Increase in the value of the Group ▪ Increase of EBITDA to PLN 900+ M in 2021 ▪ Product diversification: at least 35% EBITDA from businesses other than soda |
Continuous increase of customer satisfaction ▪ Development of specialist products in response to customer needs ▪ Further development of additional services for customers |
Further improvement of safety and working conditions Providing appropriate tools to ensure the development and increased motivation of employees ▪ One of the best employers in the chemical industry in the markets where we operate |
Reducing the environmental impact ▪ Reduction of carbon footprint in the soda production process ▪ Adjusting the energy mix to the changing market conditions, while maintaining good environmental protection practices |
In the perspective, by 2024, CIECH Group is to become a modern, diversified European Chemical Group
Note: LTM: results for four quarters were presented: Q4 2017-Q3 2018
Continuing effective capital allocation for efficiency improvement, new growth projects and innovations
Further support in building organisational culture
increasing the efficiency of the soda business, which will translate into an increase in customer satisfaction and enable us to increase our share in the sodium bicarbonate market
| Salt | ▪ Commencing production and sales of volumes from the plant in Germany (+450 thousand tons in 2021, +75% compared to current capacity) ▪ Increasing the share of CIECH Group products in the specialist products (including, among others, salt tablets, pharmaceutical salt and dishwasher salt) |
|---|---|
| Crop Protection Chemicals |
▪ Development of the portfolio of active ingredients (increase by 40+) and new product registrations (increase by 200+) ▪ Strengthening the position on the main markets (Poland and Spain) and developing sales on other markets ▪ Increasing sales outside Poland to over 40% |
| Resins | ▪ Developing the portfolio of specialist products |
| Foams | ▪ Maintaining current market position |
| Silicates and Glass |
▪ Taking advantage of the growing silicates market ▪ Maintaining the current market position in glass packaging |
Focus on sustainable development: IRR objective >15% for growth projects
The HR vision involves building an environment in which the best people can develop and create a culture of effectiveness, thus implementing the Group's strategy
Building the best teams
Creating a culture of continuous efficiency improvement
An effective and diversified chemical holding generating positive value for shareholders in the long-term, with a significant position in soda ash and in innovative, specialised market segments
| Shareholders | A chemical holding with more than PLN 4 B in revenue, more than PLN 900 M in adj. EBITDA and an adj. EBITDA margin of more than 22% in 2021 |
|---|---|
| Customers | A leader in customer service quality with new specialist products responding to customer needs |
| Innovation | A leading producer of soda ash, offering a broad spectrum of specialist products based on innovation and R&D in the most prospective segments |
| Efficiency | A Group using modern tools to increase production efficiency and applying the best market practices |
| Employees | A holding in which the best people can develop and create a culture of efficiency, thus implementing the Group's strategy |
| Community and ecology |
A credible partner of local communities, demonstrating responsibility for the natural environment |
CIECH S.A. Wspólna 62 00-684 Warsaw Tel. +48 22 639 11 00 Fax: +48 22 639 11 09
This elaboration has been prepared solely for information purposes; it contains only summary information and is not intended to be exhaustive, nor is it intended to be the sole basis for any analysis or evaluation. This elaboration does not contain a complete or comprehensive financial or commercial analysis of CIECH S.A. or the CIECH Group, nor does it present its position or prospects in a complete or comprehensive manner. CIECH S.A. has prepared this elaboration with due care, however, it may contain some inaccuracies or omissions. CIECH S.A. does not accept any responsibility for any errors, omissions or irregularities contained herein. This elaboration cannot be understood as a forecast of future results of CIECH S.A. or the CIECH Group. Statements regarding expectations as to future financial results are not a guarantee or assurance that such results will be achieved in the future. Actual results achieved by CIECH S.A. or the CIECH Group may significantly differ from those described herein. The data presented depend on a number of factors that may cause the actual results achieved by CIECH S.A. or the CIECH Group to significantly differ from those described in this document. Many of such factors are beyond the knowledge, awareness and/or control of the Company or the Company's ability to predict the same. The Management Board of CIECH S.A. does not make any assurances (express or implied) as to the information presented in this elaboration. The sources of information used herein are considered by CIECH S.A. credible and accurate, however, there is no guarantee that they are comprehensive and fully reflect the facts. This elaboration does not constitute an advertisement. It does not constitute any purchase or sales offer, or any offer the purpose of which is to obtain an offer to buy or sell any securities, instruments or participation in any commercial venture, and nothing contained in this elaboration will form the basis of any contract, commitment or investment decision, nor should it be relied upon in relation to any contract, commitment or investment decision. CIECH S.A. is not liable for the effects of any decision taken on the basis of this elaboration. Such responsibility lies solely with the user of this elaboration. This elaboration is subject to protection under the Copyright and Related Rights Act. It cannot be reproduced, published or disseminated unless with the written consent of CIECH S.A.
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