Cinkarna Celje

Management Reports • Dec 1, 2023

Summary of the company's development strategy 2024-2028

Celje, 30 November 2023

The company's strategy will continue to be focused on ensuring the highest possible levels of volume production and sales and on exploiting the potential of the most profitable pigment markets. The future development of the Company is based on the following four pillars:

• energy transformation
• digitisation
• sustainable development
• increase in capacity

Sales will continue to be focused mainly on European markets. The company's presence in existing markets will be strengthened in the key strategic business area Titanium Dioxide, as well as in the accompanying areas and programmes Chemistry Mozirje (Masterbatches, Powder coatings), Chemistry Celje and Polymers.

In the future, the company will continue to work closely with its employees, business partners and the local community, in order to continue successful operations and to ensure adequate returns for its owners.

Further optimisation of the staffing structure is foreseen through the redeployment and recruitment of new young and technically qualified staff. Investment in development, training and further improvement of the working environment for employees will also continue.

In the coming years, the investment cycle necessary for stable ongoing operations and growth will continue. We will continue to seek and implement additional ways to reduce any undesirable environmental impacts, while continuing to comply with all environmental legislation and regulatory requirements. However, a tightening in this area could pose an additional risk.

The new five-year strategic period 2024-2028, which takes into account the 2028 cycle peak, has the following strategic objectives:

• average sales revenues of € 228.9 million,
• average EBITDA of € 36.9 million,
• average net profit of € 16.8 million.

The dividend policy will be stable. 50% of net profit will be paid as dividends.