PRESENTATION OF 216 RESULTS November 9th 216
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
GRUPA AZOTY GROUP
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
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 281 369 54 519 327 % 1% Grupa Azoty S.A. ZAK Group Grupa Azoty POLICE Grupa Azoty PUŁAWY Other GRUPA AZOTY GROUP 5
GRUPA AZOTY GROUP QUARTERLY RESULTS 213 2 215** 216 Revenue 2,226 2,269 2,396 2, EBIT -9 2 17 1 EBIT margin -.4%.1% 4%.1% EBITDA 111 128 226 131 EBITDA margin 5% 6% 9% 7% Net profit.2 9 82-1 9,4% 5,% 5,6% 6,6% EBITDA 111 128 226 131 15 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
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 78 294 641 439-32% ( EBIT margin 1% 4% 9% 7% EBITDA 1,196 695 1,3 826-18% ( EBITDA margin 16% 9% 13% 12% Net profit 771 25 54 346-36% ( 16.% 13.4% 12.5% 9.5% EBITDA 1,196 75 695 1,3 826 869 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
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 227.2 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
GRUPA AZOTY GROUP FINANCIALS RATIOS Profitability ratios Q1-215* Q1-216 FINANCING STRUCTURE 15% EBIT margin (%) 8.5 6.6 EBITDA margin (%) 13.4 12.5 ROCE (%) 7.3 4.7 ROE (%) 7.7 4.7 Liquidity ratios 17% AVAILABLE FUNDS 68% Current ratio 2. 1.9 Debt ratios Total debt ratio (%) 33. 33.7 Net debt 1 281 462 5 Net debt/12m EBITDA ratio.2 Debt to equity ratio (%) 49.3 5.9 1,15 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
BUSINESS SEGMENTS
SEGMENTS 216 revenue % contribution 216 EBITDA % contribution Agro Fertilizers Plastics Chemicals Energy Other Activities 1,88 54 1 7 xx xx xx xx xx xx % xx % 262 13-1 x xx % 556 28 69 49 xx % 43 2 19 xx % 51 3 43 3 BUSINESS SEGMENTS 11
AGRO FERTILIZERS GLOBALLY USD/t 55 Urea market prices in 211 215 and 216 Oilseed rape, wheat and corn prices 45 211 215 high 35 211 215 average 211 215 low 25 216 market prices 15 1 2 3 4 5 6 7 8 9 1 11 12 months Source: Profercy prilled urea Baltic FOB prices USD/t 7 DAP market prices in 211 215 and 216 6 211 215 high 211 215 average 5 211 215 low 4 216 market prices 3 1 2 3 4 5 6 7 8 9 1 11 12 months Source: WFM DAP 18-46 Baltic FOB prices USD/t 5 NPK market prices in 211 215 and 216 211 215 high 4 211 215 average 2 2 2 1 8 1 6 1 4 1 2 1 8 6 4 PLN/t Jan 11 Mar 11 World Russia USA May 11 216/217 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 13 +7 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 16 3 211 215 low 216 market prices EU28 France -15 Mt -12 Mt 2 1 2 3 4 5 6 7 8 9 1 11 12 months Source: WFM NPK Baltic FOB prices Germany Ukraine Source: CIC Sept 216-2 Mt -8 kt BUSINESS SEGMENTS 12
AGRO FERTILIZERS GLOBALLY EUR/t USD/t NARROWING MARKET SPREADS PER N 3 25 2 15 1 5 6 5 4 3 2 1 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 15 16 Feb 16 Mar 16 DAP NPK 3x16 Ammonia (16%N) Phosphate rock Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec Jan 15 16 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 16 16 Aug Sep 16 16 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 Q1 217. Domestic market support advance direct payments (7%). EUR/t 4 3 2 1-3% -25% -27% -33% -18% Prilled urea AN 33.5% CAN 27% UAN 32%N Ammonium sulfate USD/t 5 4 3 2 1-37% -28% -16% Ammonia DAP 18-46 NPK 16-16-16 Q1-215 Q1-216 Q1-215 Q1-216 BUSINESS SEGMENTS 13
GRUPA AZOTY GROUP: AGRO FERTILIZERS Segment revenue, including: Nitrogen fertilizers and ammonia 213 2 215 216 Q1-215 Q1-216 Change Y/Y 1,259 1,21 1,468 1,88 4,522 3,83-15% ( 815 782 854 589 2,791 2,261-19% ( Compound fertilizers 341 354 487 392 1,423 1,269-11% ( EBITDA 83 73 169 1 725 55-3% ( EBITDA margin 7% 6% 12% 1% 16% 13% ( EBITDA VOLUMES PLNm 2 15 1 5 12% 7% 6% 169 83 73 1% 1 213 2 215 216 15% 1% 5% % ' tonnes 3 2 5 2 1 5 1 5-3% Nitrogen fertilizers and ammonia -5% Compound fertilizers EBITDA EBITDA margin Q1-215 Q1-216 BUSINESS SEGMENTS
SEGMENTS 216 revenue % contribution 216 EBITDA % contribution Agro Fertilizers Plastics Chemicals Energy Other Activities 1,88 54 1 7 xx xx xx xx xx xx % xx % 262 13-1 x xx % 556 28 69 49 xx % 43 2 19 xx % 51 3 43 3 BUSINESS SEGMENTS 15
GLOBAL PLASTICS MARKET EUR/t MARKET WEAKENED BY FALLING MARGINS 2 5 MARKET ENVIRONMENT AND OUTLOOK 2 1 5 1 5-7% 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 2 1 5 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
GRUPA AZOTY GROUP: PLASTICS 215 216 Q1-215 Q1-216 Change Y/Y Segment revenue, including: 292 262 967 834 -% ( Polyamide 162 136 512 451-12% ( Caprolactam 72 77 288 232-19% ( EBITDA -7-1 8-35 x ( EBITDA margin -2% -4% 1% -4% ( REVENUE VOLUMES PLNm 35 3 25 2 15 1 5 292 262 1 2 967 834 72 162 +7% -16% 215 216 Polyamide Caprolactam Other 1 8 77 6 288 4 136 2-2% -12% 232 512 451 215 216 Q1- Q1- Polyamide Caprolactam Other ' tonnes 8 7 6 5 4 3 2 1 +1% -1% Polyamide Caprolactam Q1-215 Q1-216 BUSINESS SEGMENTS 17
SEGMENTS 216 revenue % contribution 216 EBITDA % contribution Agro Fertilizers Plastics Chemicals Energy Other Activities 1,88 54 1 7 xx xx xx xx xx xx % xx % 262 13-1 x xx % 556 28 69 49 xx % 43 2 19 xx % 51 3 43 3 BUSINESS SEGMENTS 18
BUSINESS SEGMENTS CHEMICALS GLOBALLY MARKET MARGINS EUR/t 1 8 1 6 1 4 1 2 1 8 6 4 2 PRICING TRENDS EUR/t 2 5 2 1 5 1 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
GRUPA AZOTY GROUP: CHEMICALS Segment revenue including: 215 216 Q1-215 Q1-216 Change Y/Y 534 556 1,744 1,684-3% ( OXO alcohols 93 12 352 311-12% ( Plasticizers 32 35 12 131 9% Urea (technical grade) 128 19 44 291-28% ( Melamine 99 19 294 325 11% Titanium white 55 77 25 226 1% EBITDA 19 69 112 234 19% EBITDA margin 4% 12% 6% % REVENUE VOLUMES PLNm 6 5 4 3 2 1 534 556 1,744 1,683 127 123 55 77 227-4% 218 125 1% 137 215 216 41% 2 1 8 1 6 1 4 1 2 1 8 6 4 2 369 25 698 399 226 616 472 442 215 216 Q1-1% +1% -12% -6% Q1- ' tonnes 4 35 3 25 2 15 1 5 +13% +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
GRUPA AZOTY PUŁAWY GROUP
GRUPA AZOTY PUŁAWY GROUP QUARTERLY RESULTS 213 2 215 216 Change vs 213-215 average Revenue 84 846 935 712-18.5% ( EBIT 19 1 76 23-28.1% ( EBIT margin 2.3%.1% 8.1% 3.2% EBITDA 55 4 118 69-2.8% ( EBITDA margin 6.5% 4.7% 12.6% 9.7% Net profit 18 3 65 16-44.8% ( 23,9% 12,6% 118 17,9% 172 227,2% 115 9,7% 69 EBITDA EBITDA MARGIN 215 Q4 215 Q1 216 Q2 216 216 GRUPA AZOTY PUŁAWY 22
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 2,473-13.3% ( EBIT 319 192 368 272-26.1% ( EBIT margin 11.1% 7.1% 12.9% 11.% EBITDA 421 38 49 411-16.1% ( EBITDA margin.6% 11.4% 17.2% 16.6% Net profit 286 174 334 243-27.2% (.6% 11.3% 17.2% 16.6% EBITDA 49 421 411 4 38 Q1-213 Q1-2 Q1-215 Q1-216 EBITDA (Parent) EBITDA MARGIN GRUPA AZOTY PUŁAWY 23
GRUPA AZOTY PUŁAWY GROUP: AGRO 215 216 Jan Sep 215 Jan Sep 216 change Revenue 629 47 1,871 1,537-17.9% ( Nitrogen fertilizers 464 279 1,57 1,181-21.6% ( Phosphate and compound fertilizers 91 65 22 183-16.8% ( Other goods and services 18 12 4 51 27.5% Merchandise and materials 56 51 122 17.3% EBITDA 116 46 444 357 19.6% ( EBITDA margin 18.4% 11.3% 23.7% 23.2%.5 pp ( PLNm 6 45 3 15 74 91 464 63 65 279 215 216 QUARTERLY REVENUE PLNm -35.3% -17.9% -29% -4% 1 8 1 2 6 4 22 1,57 173 183 1,181 215 216 Q1- -17% -22% Q1- ' tonnes 1 6 1 4 1 2 1 8 6 4 2 Nitrogen fertilizers Jan Sep 215 Jan Sep 216 Phosphate and compound fertilizers VOLUMES Other Merchandise and materials GRUPA AZOTY PUŁAWY 24
GRUPA AZOTY PUŁAWY GROUP: CHEMICALS 215 216 Jan Sep 215 Jan Sep 216 change Revenue 264 269 875 812-7.2% ( Melamine 99 19 294 325 1.5% Caprolactam 64 72 279 234-16.1% ( Urea 67 54 28 157-24.5% ( Other goods and services 33 32 88 93 5.7% Merchandise and materials 1 2 6 3-5.% ( EBITDA 15 38 87 136 56.3% EBITDA margin 5.7%.1% 9.9% 16.7% 6.9 pp PLNm 28 24 2 16 12 8 4 QUARTERLY REVENUE PLNm +1.9% -7.2% 9 94 34 34 96 28 54-25% 157 67-19% 6 72 64 279-16% 234 +13% 3 99 +1% 19 294 +11% 325 215 216 215 216 Q1- Q1- ' tonnes 2 16 12 8 4 VOLUMES Jan Sep 215 Jan Sep 216 Melamine Caprolactam Urea (PULREA, PULNOX for 1% solution equivalent) Other GRUPA AZOTY PUŁAWY 25
GRUPA AZOTY PUŁAWY FINANCIALS RATIOS Profitability ratios Q1-215* Q1-216 AVAILABLE FUNDS EBIT margin (%) 12.9 11. EBITDA margin (%) 17.2 16.6 3 ROCE (%) 11.6 8.2 ROE (%) 11.4 7.9 Liquidity ratios Current ratio 2.6 3.1 Debt ratios Total debt ratio (%) 21.8 19.8 Net debt -655-71 Net debt/ebitda -1.3-1.7 5 Corporate credit facilities Overdraft and multi-purpose facilities Debt to equity ratio (%) 27.9 24.8 GRUPA AZOTY PUŁAWY 26
GRUPA AZOTY POLICE GROUP
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
GRUPA AZOTY POLICE GROUP: FINANCIAL HIGHLIGHTS 213 2 215 216 215* 216** Prior periods average 216** vs. prior periods Revenue 51 55 6 549 6 549 538 2% EBIT 5 8 18-1 -1 18 1 8% EBIT margin 1% 2% 3% -.3% -.2% 3% 2% EBITDA 24 3 39 21 2 4 31 29% EBITDA margin 5% 6% 7% 4% 3% 7% 6% Net profit 7 6 15-9 -8 9 55% 15.5% 17 1.9% 77 1.5% 63 7.3% 6.5% 4 39 3.3% 4.9% 3.9% 29 2 21 215 Q4 215 Q1 216 Q2 216 216 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
GRUPA AZOTY POLICE GROUP: Q1- FINANCIAL HIGHLIGHTS Q1- Q1- Q1-213 2 215 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 77 67 154 91 11 4 31% EBIT margin 4% 4% 8% 5% 5% 8% EBITDA 138 135 217 157 173 21 21% EBITDA margin 7% 8% 11% 9% 8% 11% Net profit 63 54 122 7 82 117 43% 1.6% 11.4% EBITDA 7.% 7.7% 8.5% 8.6% EBITDA 138 135 217 173 157 21 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
GRUPA AZOTY POLICE GROUP: FERTILIZERS 215 216 Jan Sep 215 Jan Sep 216 Change Revenue 528 455 1,789 1,567-12% ( Compound fertilizers 4 336 1,251 1,128-1% ( Urea 6 62 27 236-13% ( Ammonia 35 35 216 1-35% ( Other 19 22 52 62 19% EBITDA 37 8 26 131-36% ( EBITDA margin 7% 2% 11% 8% -3% ( EBITDA MARGIN* 7% 6% 11% 12% 1% Other Ammonia Urea Compound fertilizers PLNm 6 5 4 3 2 1 *before the effect of one-off items concerning AFRIG S.A. 4 GRUPA AZOTY POLICE GROUP 31 336 215 216 REVENUE 2 528 455 1,789 1,567 19 52 35 216 62 6 22 1 5 35 27 1 3% -13% 62 236 1-19% 5 1,251 1,128 215 216 Q1- -1% Q1-1 8 6 4 2 Compound fertilizers VOLUMES Jan Sep 215 Jan Sep 216 ' tonnes Urea Ammonia Other
GRUPA AZOTY POLICE GROUP: PIGMENTS 215 216 Jan Sep 215 Jan Sep 216 Change Revenue 57 8 213 236 11% Titanium white 55 77 24 226 11% Other 2 3 9 1 11% EBITDA.4 1 5 2 3% EBITDA margin 1% 13% 2% 8% 6% 9 8 7 6 5 4 3 2 1 PLNm 57 REVENUE 8 3 2 77 4% 55 215 216 3 2 1 PLNm 213 9 236 1 11% 226 24 215 216 ' tonnes 35 3 25 2 15 1 5 VOLUMES Jan Sep 215 Jan Sep 216 3 26 15 13 Titanium white Other Q1- Q1- GRUPA AZOTY POLICE GROUP 32
GRUPA AZOTY POLICE FINANCIALS RATIOS Q1- Q1- Q1- Q1-215 216 215* 216** Profitability ratios EBIT margin (%) 7.6 4.9 5,4 7.8 EBITDA margin (%) 1.6 8.5 8.5 11.4 ROCE (%) 9.8 5.4 7.2 8.5 ROE (%) 1.3 5.4 7.2 8.7 Liquidity ratios Current ratio 1.3 1.1 Debt ratios Total debt ratio (%) 42.2 43.6 Net debt 241 278 Net debt/ebitda 1.1 1.8 Debt to equity ratio (%) 73.1 77.3 FINANCING STRUCTURE 19% 42% 39% AVAILABLE FUNDS 182 5 42 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
GRUPA AZOTY ZAKŁADY AZOTOWE KĘDZIERZYN S.A.
GRUPA AZOTY KĘDZIERZYN: FINANCIAL HIGHLIGHTS Revenue 213 2 215 216 Change vs 213-215 474 491 435 379 81.2% ( EBIT 1.7 1.7 16.2-3.4-35.8% ( EBIT margin.3 2.2 3.7 -.9 EBITDA 2.5 3.9 35.4 18.2 62.8% ( EBITDA margin 4.3 6.3 8.1 4.8 Net profit 4.8 8.9 13.8-2.7-3.% ( 23.6% 15.3% 12.2% 8.1% 35,364 67,555,154 5,261 4.8% 18,193 EBITDA EBITDA MARGIN 215 Q4 215 Q1 216 Q2 216 216 GRUPA AZOTY KĘDZIERZYN 35
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 1,231-1.4% ( EBIT 98 9 99 18 8.8% EBIT margin 6.3 5.9 7.2 8.8 EBITDA 154 155 156 173 1.8% EBITDA margin 9.9 1.1 11.3. Net profit 89 78 87 91 5.4%.% 9.9% 1.1% 11.3% 154 155 156 173 EBITDA EBITDA MARGIN Q1-213 Q1-2 Q1-215 Q1-216 GRUPA AZOTY KĘDZIERZYN 36
GRUPA AZOTY KĘDZIERZYN FINANCIALS RATIOS Q1-215 Q1-216 CREDIT LIMITS Profitability ratios EBIT margin (%) 7.2 8.8 384 PLNm 228 EBITDA margin (%) 11.3. ROCE (%) 7.5 7.3 Drawn down funds Available funds ROE (%) 8. 7.9 Liquidity ratios Current ratio 1.4 1.5 Debt ratios Total debt ratio (%) 34.5 34.5 AVAILABLE FUNDS PLNm Net debt -33.6 16.2 28 Net debt/ebitda -.2.6 Debt to equity ratio (%) 52.7 52.7 Corporate credit facilities Overdraft and multi-purpose facilities GRUPA AZOTY KĘDZIERZYN 37
GRUPA AZOTY KĘDZIERZYN: PERFORMANCE BY SEGMENT Segment REVENUE EBITDA REVENUE EBITDA 215 216 215 216 Q1-215 Q1-216 Q1-215 Fertilizers 252 196 33 13 756 659 4 13 OXO alcohols 9 159-9 -2 529 496-13 23 Other 34 24 11 7 9 76 25 2 Q1-216 EBITDA Q1-216 REVENUE Q1-216 4 13 Fertilizers 54% OXO alcohols 4% 23 25 2-13 Fertilizers OXO alcohols Other Other 6% GRUPA AZOTY KĘDZIERZYN 38
215 INTEGRATED REPORT We encourage you to read the Grupa Azoty Group's 215 Integrated Annual Report
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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
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APPENDIX 1 THE PARENT
GRUPA AZOTY GROUP KEY RATIOS SINCE IPO 28, QUARTERLY REVENUE AND NET PROFIT 2 5 2 1 5 1 5-5 5 4 3 2 1-1 Revenue Net profit (right axis) EBITDA AND NET DEBT 7 6 5 4 3 2 1-1 -2 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
GRUPA AZOTY S.A. QUARTERLY RESULTS 213 2 215** 216 216 vs. prior periods Revenue 448 464 466 366-2% ( EBIT -18-15 -1-19 -73% ( EBIT margin -4% -3% -.2% -5% EBITDA 3 9 22 5-55% ( EBITDA margin 1% 2% 5% 1% Net profit -19-18 -6-17 -21% ( 12.8% 4.7% 56 22-2.%.9% 4 16 5 1.4% -7 215** Q4 215 Q1 216 Q2 216 216 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
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.4-1 24-16 -167% ( EBIT margin % -1% 2% -1% EBITDA 65 58 92 54-41% ( EBITDA margin 5% 4% 7% 5% Net profit 116 238 23 241 5% 6.9% 65 4.6% 58 4.2% 92 4.7% 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
GRUPA AZOTY S.A.: FERTILIZERS 215 216 Jan Sep 215 Jan Sep 216 Change Y/Y Segment revenue including 237 161 68 55-17% Nitrogen fertilizers 218 1 546 451-17% EBITDA 7-5 42 35-17% EBITDA margin 3% -3% 7% 7% PLNm 25 2 15 1 5 237 161 218-35% REVENUE 1 215 216 Nitrogen fertilizers Other PLNm 7 6 5 4 3 2 1 68 55 546-17% 451 215 216 Q1- Q1- Nitrogen fertilizers Other ' tonnes 7 6 5 4 3 2 1 VOLUMES -6% Nitrogen fertilizers Jan Sep 215 Jan Sep 216 GRUPA AZOTY S.A. 46
GRUPA AZOTY S.A.: PLASTICS 215 216 Jan Sep 215 Jan Sep 216 Change Y/Y Segment revenue including 219 193 69 616-11% Polyamide 159 134 498 44-12% Caprolactam 12 12 41 34-17% EBITDA 1 2 33.3-99% EBITDA margin 5% 1% 5% % PLNm 25 2 15 1 5 219 193 PLNm 69 616 12 159 % -16% REVENUE 12 134 215 216 Polyamide Caprolactam Other 9 8 7 6 5 4 3 2 1 41 498 34 44 215 216 Q1- -17% -12% Q1- Polyamide Caprolactam Other ' tonnes 8 7 6 5 4 3 2 1 VOLUMES 1% -1% Polyamide Caprolactam Jan Sep 215 Jan Sep 216 GRUPA AZOTY S.A. 47
SHARE PERFORMANCE 3 Growth from Jun 3 28: 239% 12 2 5 High (Dec 8 215) PLN 113. Low (Feb 3 29) PLN 6. 1 2 8 1 5 6 1 4 5 2 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
APPENDIX 2 MARKET PRICES
PRICES OF AMMONIA, AMMONIUM SULFATE AND CALCIUM AMMONIUM NITRATE 55 45 35 25 15 5 USD/t Q2 2 2 Q4 2 Q1 215 Q2 215 215 Q4 215 Q1 216 Q2 216 216 Ammonia USD/t Ammonium sulfate AS USD/t Calcium ammonium nitrate CAN EUR/t 3 25 2 15 1 EUR/t
PRICES OF BENZENE, PHENOL, CPL, PA6 22 17 12 7 2 EUR/t Q2 2 2 Q4 2 Q1 215 Q2 215 215 Q4 215 Q1 216 Q2 216 Benzene Liquid caprolactam PA6 Phenol
PRICES OF AN, UAN AND UREA 4 3 2 1 EUR/t Q2 2 2 Q4 2 Q1 215 Q2 215 215 Q4 215 Q1 216 Q2 216 216 Ammonium nitrate EUR/t UAN EUR/t Urea USD/t 35 3 25 2 15 USD/t
PRICES OF MELAMINE AND CAPROLACTAM 25 13 2 15 12 EUR/t Q2 2 2 Q4 2 Q1 215 Q2 215 215 Q4 215 Q1 216 Q2 216 216 Melamine EUR/t Crystalline caprolactam USD/t 1 USD/t
PRICES OF NPK, DAP, PHOSPHATE ROCK, POTASSIUM CHLORIDE 55 45 35 25 15 5 USD/t Q2 2 2 Q4 2 Q1 215 Q2 215 215 Q4 215 Q1 216 Q2 216 216 NPK DAP Phosphate rock Potassium chloride
PRICES OF TITANIUM WHITE, ILMENITE AND TITANIUM SLAG 24 23 22 21 2 19 EUR/t 6 4 2 Q2 2 2 Q4 2 Q1 215 Q2 215 215 Q4 215 Q1 216 Q2 216 216 USD/t Titanium white EUR/t Ilmenite USD/t Titanium slag USD/t
Contact Investor Relations Office ir.tarnow@grupaazoty.com 56