PRESENTATION OF Q RESULTS. November 9th 2016

Transcription

1 PRESENTATION OF 216 RESULTS November 9th 216

2 Agenda Page Grupa Azoty Group 3 Business segments 1 Grupa Azoty PUŁAWY Group 21 Grupa Azoty POLICE Group 27 Grupa Azoty KĘDZIERZYN Group 34 Appendix 1 The Parent 42 Appendix 2 Market prices 49

3 GRUPA AZOTY GROUP

4 KEY DEVELOPMENTS Research and Development Centre in Tarnów - competitive advantage built on knowledge Continued efforts to secure funding for strategic projects - annexes signed to credit facility agreements with PKO BP S.A. - Grupa Azoty to directly participate in financing the PDH project GRUPA AZOTY GROUP 4

5 GRUPA AZOTY GROUP 216 RESULTS REVENUE 2, EBITDA 131 EBITDA MARGIN 6.6% NET PROFIT -1 PERFORMANCE DRIVERS Grupa Azoty's REBITDA* performance significantly better relative to benchmark performance of global peers Adverse global trends in Fertilizers largely offset by improved profitability in Chemicals Net cash flow increased qoq on measures to optimise working capital and CAPEX levels *Recurring EBITDA = underlying EBITDA adjusted to eliminate one-off items of PLN 18m (impairment of assets in Grupa Azoty Police) GRUPA AZOTY GROUP'S 216 CONSOLIDATED REVENUE STRUCTURE % 1% Grupa Azoty S.A. ZAK Group Grupa Azoty POLICE Grupa Azoty PUŁAWY Other GRUPA AZOTY GROUP 5

6 GRUPA AZOTY GROUP QUARTERLY RESULTS ** 216 Revenue 2,226 2,269 2,396 2, EBIT EBIT margin -.4%.1% 4%.1% EBITDA EBITDA margin 5% 6% 9% 7% Net profit ,4% 5,% 5,6% 6,6% EBITDA EBITDA (adjusted)* EBITDA MARGIN 3Q 213 3Q 2 3Q 215 3Q 216 * 3Q 216 was adjusted for impairment loss recognised by African Investment Group S.A. ** Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements) GRUPA AZOTY GROUP 6

7 GRUPA AZOTY GROUP: Q1 FINANCIAL HIGHLIGHTS Q1-213 Q1-2 Q1-215** Q1-216 Q1 change 216/215 Revenue 7,473 7,342 7,57 6,633-12% ( EBIT % ( EBIT margin 1% 4% 9% 7% EBITDA 1, , % ( EBITDA margin 16% 9% 13% 12% Net profit % ( 16.% 13.4% 12.5% 9.5% EBITDA 1, , EBITDA (adjusted)* EBITDA MARGIN Q1-213 Q1-2 Q1-215 Q1-216 * In 213 adjusted for gain on bargain purchase of Grupa Azoty PUŁAWY In 216, adjusted for estimated impairment loss recognised by African Investment Group S.A. ** Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements) GRUPA AZOTY GROUP 7

8 ORGANIC INVESTMENTS GROWTH 2 22 CAPEX BUDGET: PLN 7bn CORPORATE PROJECTS FERTILIZERS ENERGY PLASTICS OXOPLASTS MELAMINE PIGMENTS 68 CAPEX PROJECTS 32 % 3 % 19 % 11 % 4 % 2 % 2 % CAPITAL EXPENDITURE IN JANUARY SEPTEMBER 216 BUSINESS DEVELOPMENT INVESTMENTS 425. BUSINESS MAINTENANCE INVESTMENTS MANDATORY INVESTMENTS 86.5 PURCHASE OF FINISHED GOODS 35.4 OTHER (COMPONENTS, MAJOR OVERHAULS) 11. TOTAL PLN 875m CAPEX IN 216 PLN 1.6bn ACTUAL EXPENDITURE AGAINST CAPEX BUDGET SINCE 2 % 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% GRUPA AZOTY RECENT DEVELOPMENTS 8

9 GRUPA AZOTY GROUP FINANCIALS RATIOS Profitability ratios Q1-215* Q1-216 FINANCING STRUCTURE 15% EBIT margin (%) EBITDA margin (%) ROCE (%) ROE (%) Liquidity ratios 17% AVAILABLE FUNDS 68% Current ratio Debt ratios Total debt ratio (%) Net debt Net debt/12m EBITDA ratio.2 Debt to equity ratio (%) ,15 Corporate credit facilities Overdraft and multi-purpose facilities Other financing sources * Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements) GRUPA AZOTY GROUP 9

10 BUSINESS SEGMENTS

11 SEGMENTS 216 revenue % contribution 216 EBITDA % contribution Agro Fertilizers Plastics Chemicals Energy Other Activities 1, xx xx xx xx xx xx % xx % x xx % xx % xx % BUSINESS SEGMENTS 11

12 AGRO FERTILIZERS GLOBALLY USD/t 55 Urea market prices in and 216 Oilseed rape, wheat and corn prices high average low market prices months Source: Profercy prilled urea Baltic FOB prices USD/t 7 DAP market prices in and high average low market prices months Source: WFM DAP Baltic FOB prices USD/t 5 NPK market prices in and high average PLN/t Jan 11 Mar 11 World Russia USA May /217 vs. 215/216 changes in wheat production Canada Jul 11 Australia Sep 11 Nov 11 Jan 12 Mar 12 May 12 Jul 12 Sep 12 Nov 12 Jan 13 Mar 13 May 13 Jul 13 Sep 13 Milling wheat PLN/t Oilseed rape PLN/t Source: Ministry of Agriculture and Rural Development Nov Mt +9 Mt +7 Mt +2 Mt +3 Mt Jan Mar May Jul Sep Nov Jan 15 Mar 15 May 15 Jul 15 Sep 15 Nov 15 Jan 16 Mar 16 May 16 Fodder corn PLN/t Jul 16 Sep low 216 market prices EU28 France -15 Mt -12 Mt months Source: WFM NPK Baltic FOB prices Germany Ukraine Source: CIC Sept Mt -8 kt BUSINESS SEGMENTS 12

13 AGRO FERTILIZERS GLOBALLY EUR/t USD/t NARROWING MARKET SPREADS PER N Jan Jan CAN equivalent Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Aug NPK equivalent Aug Sep Sep Oct Oct NEGATIVE PRICING TRENDS Nov Nov Dec Jan 15 Dec Jan 15 Feb 15 Feb 15 Mar 15 Mar 15 Apr 15 Apr 15 May 15 May 15 Jun 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec Jan Feb 16 Mar 16 DAP NPK 3x16 Ammonia (16%N) Phosphate rock Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec Jan Feb 16-22% Mar 16 CAN (27%N) Urea (27%N) Ammonia (27%N) -26% -1% Apr 16 Apr 16 May 16 May 16 Jun 16 Jun 16 Jul 16 Jul 16 Aug Sep Aug Sep OUTLOOK Global markets of nitrogen fertilizers characterised by low prices and sluggish demand, as farmers reduce fertilizer application in the autumn season, keeping fertilizer stocks for use in spring. Demand for compound NPK fertilizers has been below producer expectations since the spring season. Low forecast prices of agricultural crops may cause NPK fertilizer prices to stabilise in Q4 216 and spike seasonally in Q Domestic market support advance direct payments (7%). EUR/t % -25% -27% -33% -18% Prilled urea AN 33.5% CAN 27% UAN 32%N Ammonium sulfate USD/t % -28% -16% Ammonia DAP NPK Q1-215 Q1-216 Q1-215 Q1-216 BUSINESS SEGMENTS 13

14 GRUPA AZOTY GROUP: AGRO FERTILIZERS Segment revenue, including: Nitrogen fertilizers and ammonia Q1-215 Q1-216 Change Y/Y 1,259 1,21 1,468 1,88 4,522 3,83-15% ( ,791 2,261-19% ( Compound fertilizers ,423 1,269-11% ( EBITDA % ( EBITDA margin 7% 6% 12% 1% 16% 13% ( EBITDA VOLUMES PLNm % 7% 6% % % 1% 5% % ' tonnes % Nitrogen fertilizers and ammonia -5% Compound fertilizers EBITDA EBITDA margin Q1-215 Q1-216 BUSINESS SEGMENTS

15 SEGMENTS 216 revenue % contribution 216 EBITDA % contribution Agro Fertilizers Plastics Chemicals Energy Other Activities 1, xx xx xx xx xx xx % xx % x xx % xx % xx % BUSINESS SEGMENTS 15

16 GLOBAL PLASTICS MARKET EUR/t MARKET WEAKENED BY FALLING MARGINS 2 5 MARKET ENVIRONMENT AND OUTLOOK % Prices of caprolactam under continued pressure of oversupply prevailing on the market. Its effects are mitigated by demand from end-user segment, generally assessed as good, and increasing consumption. PRICING TRENDS EUR/t PA6-3% Benzene -8% -12% Situation on the CPL and PA6 markets will be driven by oil price. Pricing trend changes reflecting seasonal fluctuations in demand may prompt producers to adjust prices of petroleum derivatives, such as benzene and phenol. 1-1% 5 Benzene Phenol Caprolactam Polyamide 6 Q1-215 Q1-216 BUSINESS SEGMENTS 16

17 GRUPA AZOTY GROUP: PLASTICS Q1-215 Q1-216 Change Y/Y Segment revenue, including: % ( Polyamide % ( Caprolactam % ( EBITDA x ( EBITDA margin -2% -4% 1% -4% ( REVENUE VOLUMES PLNm % -16% Polyamide Caprolactam Other % -12% Q1- Q1- Polyamide Caprolactam Other ' tonnes % -1% Polyamide Caprolactam Q1-215 Q1-216 BUSINESS SEGMENTS 17

18 SEGMENTS 216 revenue % contribution 216 EBITDA % contribution Agro Fertilizers Plastics Chemicals Energy Other Activities 1, xx xx xx xx xx xx % xx % x xx % xx % xx % BUSINESS SEGMENTS 18

19 BUSINESS SEGMENTS CHEMICALS GLOBALLY MARKET MARGINS EUR/t PRICING TRENDS EUR/t DEHT (DOTP) 2-EH Propylene -8% -13% +3% -26% +52% -13% -3% MARKET ENVIRONMENT AND OUTLOOK Increase in the consumption of technical grade urea will mainly be driven by its use in UF (ureaformaldehyde) resins and denox (flue gas denitrification) units. OXO alcohol prices should remain correlated with movements in propylene prices, with demand growth especially in /Q4. In the coming periods, the average propylene prices should remain at similar or slightly higher levels, although this will largely depend on price movements on the global oil markets. Owing to sound demand and matching supply of the product, average contract prices of melamine in Europe should remain at current levels. Prices and demand for titanium white and its intermediates are expected to change in line with a downtrend in the application markets. 5 2-EH DEHT (DOTP) Melamine Titanium white Propylene Q1-215 Q1-216

20 GRUPA AZOTY GROUP: CHEMICALS Segment revenue including: Q1-215 Q1-216 Change Y/Y ,744 1,684-3% ( OXO alcohols % ( Plasticizers % Urea (technical grade) % ( Melamine % Titanium white % EBITDA % EBITDA margin 4% 12% 6% % REVENUE VOLUMES PLNm ,744 1, % % % Q1-1% +1% -12% -6% Q1- ' tonnes % +29% -12% OXO alcohols Plasticizers Urea (technical grade) +3% Melamine +13% Titanium white OXO alcohols/plasticizers Titanium white Melamine/Urea Other Q1-215 Q1-216 BUSINESS SEGMENTS 2

21 GRUPA AZOTY PUŁAWY GROUP

22 GRUPA AZOTY PUŁAWY GROUP QUARTERLY RESULTS Change vs average Revenue % ( EBIT % ( EBIT margin 2.3%.1% 8.1% 3.2% EBITDA % ( EBITDA margin 6.5% 4.7% 12.6% 9.7% Net profit % ( 23,9% 12,6% ,9% ,2% 115 9,7% 69 EBITDA EBITDA MARGIN 215 Q4 215 Q1 216 Q GRUPA AZOTY PUŁAWY 22

23 GRUPA AZOTY PUŁAWY GROUP: Q1 FINANCIAL HIGHLIGHTS Q1-213 Q1-2 Q1-215 Q1-216 Q1 change 216/215 Revenue 2,875 2,79 2,854 2, % ( EBIT % ( EBIT margin 11.1% 7.1% 12.9% 11.% EBITDA % ( EBITDA margin.6% 11.4% 17.2% 16.6% Net profit % (.6% 11.3% 17.2% 16.6% EBITDA Q1-213 Q1-2 Q1-215 Q1-216 EBITDA (Parent) EBITDA MARGIN GRUPA AZOTY PUŁAWY 23

24 GRUPA AZOTY PUŁAWY GROUP: AGRO Jan Sep 215 Jan Sep 216 change Revenue ,871 1, % ( Nitrogen fertilizers ,57 1, % ( Phosphate and compound fertilizers % ( Other goods and services % Merchandise and materials % EBITDA % ( EBITDA margin 18.4% 11.3% 23.7% 23.2%.5 pp ( PLNm QUARTERLY REVENUE PLNm -35.3% -17.9% -29% -4% , , Q1- -17% -22% Q1- ' tonnes Nitrogen fertilizers Jan Sep 215 Jan Sep 216 Phosphate and compound fertilizers VOLUMES Other Merchandise and materials GRUPA AZOTY PUŁAWY 24

25 GRUPA AZOTY PUŁAWY GROUP: CHEMICALS Jan Sep 215 Jan Sep 216 change Revenue % ( Melamine % Caprolactam % ( Urea % ( Other goods and services % Merchandise and materials % ( EBITDA % EBITDA margin 5.7%.1% 9.9% 16.7% 6.9 pp PLNm QUARTERLY REVENUE PLNm +1.9% -7.2% % % % % % % Q1- Q1- ' tonnes VOLUMES Jan Sep 215 Jan Sep 216 Melamine Caprolactam Urea (PULREA, PULNOX for 1% solution equivalent) Other GRUPA AZOTY PUŁAWY 25

26 GRUPA AZOTY PUŁAWY FINANCIALS RATIOS Profitability ratios Q1-215* Q1-216 AVAILABLE FUNDS EBIT margin (%) EBITDA margin (%) ROCE (%) ROE (%) Liquidity ratios Current ratio Debt ratios Total debt ratio (%) Net debt Net debt/ebitda Corporate credit facilities Overdraft and multi-purpose facilities Debt to equity ratio (%) GRUPA AZOTY PUŁAWY 26

27 GRUPA AZOTY POLICE GROUP

28 ONE-OFF ITEMS concerning AFRIG S.A., a subsidiary Impact on financial results of the Grupa Azoty POLICE Group H1 216 results Impact on EBITDA - PLN 33,94 thousand Impact on net profit - PLN 24,793 thousand 216 results Impact on EBITDA - PLN 19,31 thousand Impact on net profit - PLN 23, thousand The other issues described in current report No. 27/216 of May 3th 216, which may cause changes in the value of assets related to AFRIG S.A., and which are not presented in this report, are subject to further analysis and clarification. GRUPA AZOTY POLICE GROUP 28

29 GRUPA AZOTY POLICE GROUP: FINANCIAL HIGHLIGHTS * 216** Prior periods average 216** vs. prior periods Revenue % EBIT % EBIT margin 1% 2% 3% -.3% -.2% 3% 2% EBITDA % EBITDA margin 5% 6% 7% 4% 3% 7% 6% Net profit % 15.5% % % % 6.5% % 4.9% 3.9% Q4 215 Q1 216 Q EBITDA EBITDA (adjusted) EBITDA MARGIN *including the effect of one-off items **before the effect of one-off items concerning AFRIG S.A. GRUPA AZOTY POLICE GROUP 29

30 GRUPA AZOTY POLICE GROUP: Q1- FINANCIAL HIGHLIGHTS Q1- Q1- Q Q1-216 Q1-215* Q1-216** Q1 change 216**/215* Revenue 1,964 1,754 2,38 1,84 2,38 1,84-1% ( EBIT % EBIT margin 4% 4% 8% 5% 5% 8% EBITDA % EBITDA margin 7% 8% 11% 9% 8% 11% Net profit % 1.6% 11.4% EBITDA 7.% 7.7% 8.5% 8.6% EBITDA EBITDA (adjusted) Q1-213 Q1-2 Q1-215 Q1-216 *including the effect of one-off items, excl. provision for doubtful liabilities relating to Tervalis **before the effect of one-off items concerning AFRIG S.A. GRUPA AZOTY POLICE GROUP 3 EBITDA MARGIN

31 GRUPA AZOTY POLICE GROUP: FERTILIZERS Jan Sep 215 Jan Sep 216 Change Revenue ,789 1,567-12% ( Compound fertilizers ,251 1,128-1% ( Urea % ( Ammonia % ( Other % EBITDA % ( EBITDA margin 7% 2% 11% 8% -3% ( EBITDA MARGIN* 7% 6% 11% 12% 1% Other Ammonia Urea Compound fertilizers PLNm *before the effect of one-off items concerning AFRIG S.A. 4 GRUPA AZOTY POLICE GROUP REVENUE ,789 1, % -13% % 5 1,251 1, Q1- -1% Q Compound fertilizers VOLUMES Jan Sep 215 Jan Sep 216 ' tonnes Urea Ammonia Other

32 GRUPA AZOTY POLICE GROUP: PIGMENTS Jan Sep 215 Jan Sep 216 Change Revenue % Titanium white % Other % EBITDA % EBITDA margin 1% 13% 2% 8% 6% PLNm 57 REVENUE % PLNm % ' tonnes VOLUMES Jan Sep 215 Jan Sep Titanium white Other Q1- Q1- GRUPA AZOTY POLICE GROUP 32

33 GRUPA AZOTY POLICE FINANCIALS RATIOS Q1- Q1- Q1- Q * 216** Profitability ratios EBIT margin (%) ,4 7.8 EBITDA margin (%) ROCE (%) ROE (%) Liquidity ratios Current ratio Debt ratios Total debt ratio (%) Net debt Net debt/ebitda Debt to equity ratio (%) FINANCING STRUCTURE 19% 42% 39% AVAILABLE FUNDS Corporate credit facilities Overdraft and multi-purpose facilities Other financing sources *including the effect of one-off items, excl. provision for doubtful liabilities relating to Tervalis **before the effect of one-off items concerning AFRIG S.A. GRUPA AZOTY POLICE GROUP 33

34 GRUPA AZOTY ZAKŁADY AZOTOWE KĘDZIERZYN S.A.

35 GRUPA AZOTY KĘDZIERZYN: FINANCIAL HIGHLIGHTS Revenue Change vs % ( EBIT % ( EBIT margin EBITDA % ( EBITDA margin Net profit % ( 23.6% 15.3% 12.2% 8.1% 35,364 67,555,154 5, % 18,193 EBITDA EBITDA MARGIN 215 Q4 215 Q1 216 Q GRUPA AZOTY KĘDZIERZYN 35

36 GRUPA AZOTY KĘDZIERZYN: Q1- FINANCIAL HIGHLIGHTS Revenue Q1-213 Q1-2 Q1-215 Q1-216 Q1 change 216/215 1,548 1,534 1,375 1, % ( EBIT % EBIT margin EBITDA % EBITDA margin Net profit %.% 9.9% 1.1% 11.3% EBITDA EBITDA MARGIN Q1-213 Q1-2 Q1-215 Q1-216 GRUPA AZOTY KĘDZIERZYN 36

37 GRUPA AZOTY KĘDZIERZYN FINANCIALS RATIOS Q1-215 Q1-216 CREDIT LIMITS Profitability ratios EBIT margin (%) PLNm 228 EBITDA margin (%) ROCE (%) Drawn down funds Available funds ROE (%) Liquidity ratios Current ratio Debt ratios Total debt ratio (%) AVAILABLE FUNDS PLNm Net debt Net debt/ebitda Debt to equity ratio (%) Corporate credit facilities Overdraft and multi-purpose facilities GRUPA AZOTY KĘDZIERZYN 37

38 GRUPA AZOTY KĘDZIERZYN: PERFORMANCE BY SEGMENT Segment REVENUE EBITDA REVENUE EBITDA Q1-215 Q1-216 Q1-215 Fertilizers OXO alcohols Other Q1-216 EBITDA Q1-216 REVENUE Q Fertilizers 54% OXO alcohols 4% Fertilizers OXO alcohols Other Other 6% GRUPA AZOTY KĘDZIERZYN 38

39 215 INTEGRATED REPORT We encourage you to read the Grupa Azoty Group's 215 Integrated Annual Report

40 DISCLAIMER The information presented below has been prepared by the Grupa Azoty Group (the Group ) solely for the purpose of presentation to investors and market analysts on November 9th 216 (the Presentation ). By participating in the meeting at which the Presentation is presented or by referring to this Presentation, you agree to the following specific restrictions and disclaimers. This Presentation does not constitute or form any part of, and should not be considered as, an offer to sell or as an offer to subscribe for, or as a guarantee to purchase or acquire in other way, any securities of any company of the Group. Neither this Presentation nor any part hereof may form the basis of, or be relied upon in connection with, any subscription for any securities of the Group, or their acquisition. Neither this Presentation nor any part hereof may form the basis of, or be relied upon in connection with, any investment agreement, commitment or decision relating to securities of the Group companies. This Presentation does not constitute a recommendation regarding any securities of the Group companies. No statement or assurance, expressed or implied, has been made by or on behalf of the Group or any of its shareholders, members of its bodies, officers, employees, agents or advisers or any other person, as to the accuracy, completeness or reliability of information or opinions contained in this Presentation. This Presentation may contain forward-looking statements. Forward-looking statements are different from statements of historical facts. Statements containing such words as "expects", "intends", "plans", "believes", "anticipates", "will", "aims", "can", "would", "could", "continues" or similar words are examples of such forward-looking statements. Forward-looking statements include statements about the financial performance, business strategy, plans and objectives of the Group (including development plans relating to the Group). All forward-looking statements contained in this Presentation relate to matters involving known and unknown risks, issues that are impossible to predict, and other factors. Actual results and achievements of the Group may be materially different from those described in statements concerning the past, and from the results and achievements of the Group in the past. Forward-looking statements are made based on various assumptions of future events, including numerous assumptions regarding present and future business strategies of the Group and its future business environment. Although the Group believes that its estimates and assumptions are reasonable, they may prove to be incorrect. The information, opinions and forward-looking statements contained herein are valid only on the date of this Presentation and are subject to change without notice. The Group and its advisers are not obliged to publish any updates or modify any information, data or statements contained in this Presentation in the event of a change of strategy or the intentions of the Group, or of facts or circumstances that will have an impact on the strategy or intentions of the Group, unless such an obligation arises under law. Please note that the only reliable source of data on the Group's financial results, forecasts, events and indicators of the Group are the current and periodic reports released by the Group as part of its disclosure obligations under Polish law. Neither the Group nor any of its shareholders, members of its bodies, officers, employees, agents or advisers nor any other person shall be liable for any loss arising from the use of this Presentation or its contents or otherwise arising in connection with this Presentation. Neither the Group nor any of its shareholders, members of its bodies, officers, employees, agents or advisers nor any other person shall be required to provide the recipients of this Presentation with any additional information or to update this Presentation. This Presentation contains information on the chemical industry in Poland and globally, including information on market shares of the Company and some of its competitors. The source of this information is always provided in this Presentation and the Group or any other entity acting on behalf of the Group has independently verified the information referred to above. This Presentation is not intended for distribution to or use by any person or any entity in any jurisdiction where such distribution or use would be contrary to local law or oblige the Group or any of its affiliates to obtain an authorization or licence, or to comply with the registration requirements under applicable laws. Neither this Presentation nor any part hereof may be copied or transmitted into the United States of America, and cannot be disseminated, directly or indirectly, in the United States of America. Failure to comply with this restriction may constitute a violation of U.S. securities laws. Persons who come into possession of this Presentation are required to inform themselves of, and to observe all of the above restrictions. None of the securities referred to herein have been or will be registered under the U.S. Securities Act of Any such securities may not be offered or sold in the United States of America, except pursuant to an exemption or in a transaction not required to be registered under the Act. 4

41 Thank you for your attention. For more information, visit

42 APPENDIX 1 THE PARENT

43 GRUPA AZOTY GROUP KEY RATIOS SINCE IPO 28, QUARTERLY REVENUE AND NET PROFIT Revenue Net profit (right axis) EBITDA AND NET DEBT Net debt EBITDA * Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements) GRUPA AZOTY S.A. 43

44 GRUPA AZOTY S.A. QUARTERLY RESULTS ** vs. prior periods Revenue % ( EBIT % ( EBIT margin -4% -3% -.2% -5% EBITDA % ( EBITDA margin 1% 2% 5% 1% Net profit % ( 12.8% 4.7% %.9% % ** Q4 215 Q1 216 Q EBITDA EBITDA (adjusted)* EBITDA MARGIN *Adjusted for impairment losses recognised on benzene-derived C-none production unit in Q4 215 ** Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements) GRUPA AZOTY S.A. 44

45 GRUPA AZOTY S.A.: FINANCIAL HIGHLIGHTS YTD Q1-213 Q1-2 Q1-215** Q1-216 Q1 change 216/215 Revenue 1,415 1,377 1,333 1,159-13% ( EBIT % ( EBIT margin % -1% 2% -1% EBITDA % ( EBITDA margin 5% 4% 7% 5% Net profit % 6.9% % % % 54 EBITDA EBITDA (adjusted)* EBITDA MARGIN Q1-213 Q1-2 Q1-215** Q1-216 ** Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements) GRUPA AZOTY S.A. 45

46 GRUPA AZOTY S.A.: FERTILIZERS Jan Sep 215 Jan Sep 216 Change Y/Y Segment revenue including % Nitrogen fertilizers % EBITDA % EBITDA margin 3% -3% 7% 7% PLNm % REVENUE Nitrogen fertilizers Other PLNm % Q1- Q1- Nitrogen fertilizers Other ' tonnes VOLUMES -6% Nitrogen fertilizers Jan Sep 215 Jan Sep 216 GRUPA AZOTY S.A. 46

47 GRUPA AZOTY S.A.: PLASTICS Jan Sep 215 Jan Sep 216 Change Y/Y Segment revenue including % Polyamide % Caprolactam % EBITDA % EBITDA margin 5% 1% 5% % PLNm PLNm % -16% REVENUE Polyamide Caprolactam Other Q1- -17% -12% Q1- Polyamide Caprolactam Other ' tonnes VOLUMES 1% -1% Polyamide Caprolactam Jan Sep 215 Jan Sep 216 GRUPA AZOTY S.A. 47

48 SHARE PERFORMANCE 3 Growth from Jun 3 28: 239% High (Dec 8 215) PLN 113. Low (Feb 3 29) PLN Jun-8 Oct-8 Feb-9Jun-9 Oct-9 Feb-1Jun-1 Oct-1 Feb-11Jun-11 Oct-11 Feb-12Jun-12 Oct-12 Feb-13Jun-13 Oct-13 Jan-May-Sep-Jan-15May-15Sep-15Jan-16May-16Sep-16 Trading volume Price GRUPA AZOTY S.A. 48

49 APPENDIX 2 MARKET PRICES

50 PRICES OF AMMONIA, AMMONIUM SULFATE AND CALCIUM AMMONIUM NITRATE USD/t Q2 2 2 Q4 2 Q1 215 Q Q4 215 Q1 216 Q Ammonia USD/t Ammonium sulfate AS USD/t Calcium ammonium nitrate CAN EUR/t EUR/t

51 PRICES OF BENZENE, PHENOL, CPL, PA EUR/t Q2 2 2 Q4 2 Q1 215 Q Q4 215 Q1 216 Q2 216 Benzene Liquid caprolactam PA6 Phenol

52 PRICES OF AN, UAN AND UREA EUR/t Q2 2 2 Q4 2 Q1 215 Q Q4 215 Q1 216 Q Ammonium nitrate EUR/t UAN EUR/t Urea USD/t USD/t

53 PRICES OF MELAMINE AND CAPROLACTAM EUR/t Q2 2 2 Q4 2 Q1 215 Q Q4 215 Q1 216 Q Melamine EUR/t Crystalline caprolactam USD/t 1 USD/t

54 PRICES OF NPK, DAP, PHOSPHATE ROCK, POTASSIUM CHLORIDE USD/t Q2 2 2 Q4 2 Q1 215 Q Q4 215 Q1 216 Q NPK DAP Phosphate rock Potassium chloride

55 PRICES OF TITANIUM WHITE, ILMENITE AND TITANIUM SLAG EUR/t Q2 2 2 Q4 2 Q1 215 Q Q4 215 Q1 216 Q USD/t Titanium white EUR/t Ilmenite USD/t Titanium slag USD/t

56 Contact Investor Relations Office 56