PRESENTATION OF Q1 2020 RESULTS May 21st 2020 GRUPA AZOTY GROUP - - PowerPoint PPT Presentation
PRESENTATION OF Q1 2020 RESULTS May 21st 2020 GRUPA AZOTY GROUP CONSOLIDATED FINANCIAL INFORMATION 2 Q1 2020 FINANCIAL RESULTS (PLNm) CONSOLIDATED REVENUE 3,104 - PLN 261m (7.8%) less than in Q1 2019 - PLN 1,927m revenue in the
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GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
(PLNm)
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KEY DEVELOPMENTS
sulfur (40%)
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KEY DEVELOPMENTS
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KEY DEVELOPMENTS
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KEY DEVELOPMENTS
, GA POLICE and Łukasiewicz-INS’s projects third on the list
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Environmentally friendly slow-release fertilizers
Specialist ammonium nitrate fertilizer products with functional additives
Development of technology for production of high-purity neopentyl glycol and hydroxipival aldehyde oxime with the use of low-value intermediate product and waste hydrogen stream.
Development of innovative process to obtain a range of ester for ionic liquid catalyst
RESEARCH AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT
Strengthening R&D&I potential (POIR/NCBiR)
GA ZAK Innovation Centre (POIR/NCBiR)
Specialist ammonium nitrate compound fertilizers containing additional ingredients (POIR/NCBiR)
Development of new type of liquid fertilizers based on phosphorous raw materials of sedimentary origin (POIR/NCBiR)
Development of new generation catalyst for low-temperature hydrogen and syngas production process (POIR/NCBiR)
Co-funding for three start-ups in IMPACT_POLAND 2.0 (PARP)
Co-funding for two start-ups in the KPT ScaleUp programme (PARP)
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RESEARCH AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT
14 RESEARCH AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT
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GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
Agricultural market
The COVID-19 pandemic had no significant impact on the crop segment of Poland’s agriculture.
Fertilizers - Poland
The COVID-19 pandemic had no significant impact on the Fertilizer segment in Poland.
Fertilizers - other countries
Except temporary logistics constraints of local nature, the COVID-19 pandemic had no significant impact on the fertilizer segment in the EU.
Polyamide
Record-high price declines in polyamide 6. Increased demand from the food packaging and healthcare sectors.
Melamine
Oversupply on Asian markets. Demand is still low due to the pandemic.
OXO ALCOHOLS
Demand expected to pick up in Q3 2020. Very low crude oil prices expected to keep in check any meaningful increase in product prices.
Titanium white
There has been no reduction in the supply of titanium white in Europe, while the demand is strongly affected by the measures taken in response to the spread of coronavirus.
Natural gas
Record-high winter temperatures in Europe. Subdued demand due to the COVID-19 epidemic.
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GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
Disruptions in feedstock supply chains and in sale of products due to disruptions in transport Risk
temporary disruptions in timely delivery of capital and maintenance projects Disruptions in continuity
production processes due to potentially reduced availability of workforce Risk of deteriorated liquidity faced by some trading partners due to payment backlogs Exchange rate volatility Possible risks of sales disruption in individual segments
Source: European Economic Forecast Spring 2020
collection of receivables
maintenance and investment activities
with public administration to develop appropriate regulations to mitigate adverse economic consequences of COVID-19 pandemic
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Grupa Azoty S.A. 10% Grupa Azoty Puławy 22% Grupa Azoty Police 20% Grupa Azoty Kędzierzyn 16% COMPO EXPERT 15% Other 17% GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
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(PLNm)
2476 2687 2497 3365 3104
1000 2000 3000 4000
Higher sales volume Lower fertilizer prices Lower prices of plastics EUR and USD exchange rates
307 255 188 323 196
200 400 1Q2016 1Q2017 1Q2018 1Q2019 1Q2020
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Grupa Azoty S.A. 14% Grupa Azoty Puławy 42% Grupa Azoty Police 10% Grupa Azoty Kędzierzyn 19% COMPO EXPERT 13% Other 2% GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
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(PLNm)
517 453 403 608 476
462
Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
Limited impact of pandemic Higher volumes of fertilizer sales Low price natural gas COMPO EXPERT growth
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GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
positive effect on EBITDA negative effect on EBITDA PLNm +230 +19 Decrease in natural gas prices Decrease in propylene prices Higher commodity prices
Phenol Benzene Phosphates
Higher coal and energy prices
608 476 12 356 184 5 23
Q1 2019 EBITDA Sales volume* Selling prices Feedstock prices CO2 Other One-off events** EBITDA Q1 2020 * Margin generated on sales volume.
Agro Fertilizers
Plastics
Chemicals
22 2 7 12 17 22 27
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
EEX
30 50 70 90 110
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
GPL* Gas - PPX*
Zmiana TGE* 1Q19/20
130 180 230 280
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Electricity (IRDN) − PLN/MWh
30 50 70 90
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Hard coal ARA prices (USD/t)
PRICES OF HARD COAL ELECTRICITY PRICES CO2 PRICES [Q/Q]
PLN/MWh
Change Q1 19/20
USD/t EUR/t
The long-term growth trend initiated in Q3 2017 is in the correction phase. The number of emission allowances held by the Grupa Azoty Group companies is sufficient to cover their CO2 emissions for 2019. The EC continues to work on the European Green Deal which will enforce emission reductions and reduce the allocation of free emission allowances. We expect the downward trend to continue. The Grupa Azoty Group companies have secured the required volumes under their contracts. We are awaiting decisions about reliefs under the Capacity Market Act. Regulations on the amount of charges come into force as of October 1st 2020, already accounted for in the 2020 budget. We expect prices to continue at recent levels. In Poland, the supply exceeds the demand in both the producer and the customer segments of the market. The Group companies are parties to long-term contracts securing the required volumes. Deliveries are made as planned. In mid-year, the EC plans to start its revision of the Community framework for the taxation of energy products.
NATURAL GAS PRICES
40% year-on-year decline in the average quarterly gas prices according to Gaspool data High stock levels maintained in case transit through Ukraine is suspended Significant increase in LNG supply on the global market Low gas prices in Asia – Europe more favourable to LNG suppliers from the Atlantic region.
Change Q1 19/20
Change Q1 19/20 7% Change GPL* Q1 19/20
GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
PLN/MWH * Excluding transmission.
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66% 22% 2% 5% 5%
EBITDA GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
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Nitrogen fertilizers and ammonia 40% Nitrogen fertilizers with sulfur 10% Compound fertilizers 24% Speciality fertilizers 21% Other 5%
(PLNm) Q1 2019 Q1 2020 Q/Q change
Segment revenue 2,097 1,927
EBITDA 412 313
EBITDA margin 20% 16%
SEGMENTS
REVENUE Prices of nitrogen and compound fertilizers fell by
sales volumes year on year. EBITDA Mainly on the back of low gas prices. MARGIN Margin driven by a combination of revenue and cost factors.
479 265 541 629 223
COMPO EXPERT Grupa Azoty Kędzierzyn Grupa Azoty POLICE Group Grupa Azoty PUŁAWY Group* Grupa Azoty S.A. (separate data)
* Excluding melamine and non-fertilizer urea
(PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
499 479
EBITDA
45 61 36%
EBITDA margin
9% 13% 4pp
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SEGMENTS
Agrometeorological factors:
Estonia and Latvia)
Source: European Commission, data as at April 27th 2020 and April 30th 2020
50 100 150 200 250 300 2017 2018 2019 2020
Forecast total cereal production volume [million tonnes]
EU 27 Poland 5-year average EU 27 5-year average PL 0,0 5,0 10,0 15,0 20,0 25,0 2017 2018 2019 2020
Forecast production of rape seed [million tonnes]
EU 27 Poland 5-year average EU 27 5-year average PL
Excessive precipitation Precipitation deficit Frost Drought
26 (PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
753 686
EBITDA
102 105 3%
EBITDA margin
14% 15% 1pp
SEGMENTS
REVENUE Lower prices and sales volumes in key business lines EBITDA Lower prices of almost all chemical products and key feedstock helped maintain the margin. MARGIN
Titanium white 12% Melamine 15% Urea (technical … Plasticizers 8% OXO alcohols 21% Other 21%
479 94 191
Grupa Azoty Kędzierzyn Grupa Azoty POLICE Group Grupa Azoty PUŁAWY Group*
* Melamine and non-fertilizer urea
27 (PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
409 373
EBITDA
54 8
EBITDA margin
13% 2%
SEGMENTS
REVENUE Decline in prices of key products by ca. 12%, with sales volumes maintained EBITDA Slowdown in demand from key industries, combined with higher prices of main raw materials, translated into the segment’s lower margins. MARGIN
Caprolactam 6% Natural polyamide 79% Modified polyamide 9% Other 6%
95 284 Grupa Azoty PUŁAWY Group Grupa Azoty S.A. (separate data)
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GRUPA AZOTY
PKO and bank syndicate
EBRD
EIB
Total corporate financing
*Includes undrawn amount of PLN 507m under a payment services agreement to finance trade payables.
1 642 717 559
600 1 200 1 800
Corporate credit facilities Overdraft and multi-purpose facilities Other financing sources
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INVESTOR POTENTIAL AMOUNT Hyundai (HEC) USD 73m KIND USD 57m Grupa LOTOS PLN 500m
The Grupa Azoty Group has secured its
funding for the Project for a total amount of USD 464m, including:
within the permitted limits of the total “equity” contribution specified in the Group's corporate financing agreements. including 47% of equity from Grupa Azoty S.A., 53% of Grupa Azoty Police Each Sponsor will provide the following “equity”:
The “equity” financing was raised at the full amount agreed with the banks, i.e. USD 720m. The Group also has a safety buffer to cushion adverse exchange rate movements until hedges are put in place.
* All amounts translated at the USD/PLN exchange rate of 3.95. Grupa LOTOS's contribution was converted from PLN to USD. Company's current capital Grupa Azoty; 345 LOTOS; 127 HEC & KIND 130 118 Grupa Azoty 64,16% LOTOS 17,71% HEC & KIND 18,13% GRUPA AZOTY
USD 720M
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The information presented below has been prepared by the Grupa Azoty Group (the “Group”) solely for the purpose of its presentation to investors and market analysts on May 21st 2020 (the “Presentation”). By participating in the meeting at which the Presentation is delivered 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 or acquisition of any securities of the Group. 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
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
factors. Actual results and achievements
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 as to 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 information on the financial results, forecasts, events and ratios
the Group and its individual companies are the current and periodic reports released by the Group companies in the performance of their 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
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
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 such information is always provided in this Presentation, and the Group or any other entity acting on behalf of the Group has not made any independent verification of 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
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. Whoever comes into possession of this Presentation is required to inform themselves
requirements of the Act.
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GRUPA AZOTY PUŁAWY GROUP
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(PLNm)
Net profit/(loss) decline: lower revenue from sales of most products, driven mainly by a decrease in selling prices (which was higher than raw material price declines) higher distribution costs, finance costs and administrative expenses
161 138 86 168 112
1Q2016 1Q2017 1Q2018 1Q2019 1Q2020
Agro 86% Plastics 10% Energy 2% Other 2%
951 1 003 910 1 069 954
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GRUPA AZOTY PUŁAWY GROUP
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(PLNm)
+108 Decrease in natural gas prices
Higher prices of benzene, hard coal and electricity
Decline in revenue, including:
+31
Other items PLNm
227 204 159 269 207
227 212 159 269 207 23,8% 20,3% 17,4% 25,1% 21,7%
Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
Agro 93,6% Plastics 2,1% Energy 4,0% Other 0,2%
36 (PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
914 820
EBITDA
273 228
EBITDA margin
30% 28%
GRUPA AZOTY PUŁAWY GROUP
DETERIORATED PERFORMANCE DUE TO LOWER SELLING PRICES OF PRODUCTS DESPITE ATTRACTIVE GAS PRICES
Nitrogen fertilizer s 60% Phosphate and compound fertilizers 6% Melamine 12%
Non-fertilizer urea (PULREA, PULNOX, NOXy) 11%
Other 11%
(PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
113 95
EBITDA
13 5
EBITDA margin
11% 5%
DETERIORATED PERFORMANCE DUE TO LOWER PRICES AND SALES VOLUMES OF CAPROLACTAM, WITH HIGHER BENZENE PRICES
Caprolactam 99% Other 1%
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GRUPA AZOTY PUŁAWY GROUP
Construction of coal-fired power generation unit 1,200 million Budget spent: 1% Upgrade of nitric acid unit 695 million Budget spent: 12% Facility for production of granulated fertilizers based on ammonium nitrate 385 million Budget spent: 96% Upgrade of steam generator OP-215 No. 2 to reduce NOx emissions 93 million Budget spent: 41%
Mandatory ; 6% Maintenance capex; 22% Growth capex; 55% Purchase of finished goods; 2% Other ; 15%
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GRUPA AZOTY PUŁAWY GROUP
2020)
shipments to an Italian customer, logistics constraints, low prices and weak demand as a result of the pandemic)
PULSEPT 5 production capacities
peroxide effects on SARS-Cov-19 viruses
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GRUPA AZOTY POLICE GROUP
(PLNm) Fertiliz ers 83% Pigments 15% Polymers 0,02% Other 2%
Lower average selling prices of most products Lower cost of natural gas consumption Increase in prices of other strategic raw materials
68 47 33 49 23
20 40 60 80 100 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
687 699 615 727 648
200 400 600 800 1000
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GRUPA AZOTY POLICE GROUP
41
(PLNm)
EBITDA for Q1 2020 by segment
29 18
Fertilizers Pigments Polymers Other
+55 Decrease in natural gas prices
Higher prices of other strategic raw materials
Revenue decline on lower prices
107 84 68 90 43
15,6% 12,0% 11,1% 12,4% 6,6%
Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
42 (PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
613 541
EBITDA
78 29
EBITDA margin
13% 5%
GRUPA AZOTY POLICE GROUP
(PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
101 94
EBITDA
17 18 4.2%
EBITDA margin
17% 19%
Compound fertilizers 65% Urea and ammonia 29% Other 6% Titanium white 91% Other 9%
Good situation in the nitrogen sector, less favourable price relation of products to raw materials on the compound fertilizers market Growth in EBITDA margin
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GRUPA AZOTY POLICE GROUP
44
GRUPA AZOTY POLICE GROUP
45
46
GRUPA AZOTY KĘDZIERZYN
(PLNm) Fertiliz ers 51% OXO 41% Other 8%
Lower prices of natural gas Lower prices of OXO alcohols, plasticisers, UAN Higher prices of electricity Higher sales volumes in the Fertilizers segment
66 48 36 47 49
Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
+5.4% 441 485 495 529 517
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GRUPA AZOTY KĘDZIERZYN
47
(PLNm)
+36.4 Lower cost of gas consumption
Higher cost of hard coal and electricity consumption
Decline in revenue, including:
+74.6
+ 10.2
Change in inventories (due to higher sales volumes) Lower cost of propylene consumption Increase in distribution costs
Other items
PLNm
104 81 75 93 91
23,6% 16,6% 15,2% 17,6% 17,6%
1Q2016 1Q2017 1Q2018 1Q2019 1Q2020
Fertiliz ers 74% OXO 10% Other 16%
48 (PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
260 265 1.8%
EBITDA
74 67
EBITDA margin
28.6% 25.4%
GRUPA AZOTY KĘDZIERZYN
Nitrogen fertilizers 71% RedNOx 10% Other 19%
(PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
232 213
EBITDA
5 9 71.9%
EBITDA margin
2.3% 4.2% 2.0pp
Alcohols and aldehydes 72% Speciality fertilizers 1% Oxoviflex 27%
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GRUPA AZOTY KĘDZIERZYN
New website zak.grupaazoty.com Extension
the compliance certificate for the integrated management system Implementation of the first international standard in occupational safety management New energy concept [Innovative Heat Management Programme] – projects in progress:
Department Cooling Centre
gaseous ammonia, with new electric compressors Research and Development Centre – resolution of the tender procedure for construction work Modernisation of car weights at the main gate – building permit secured, start of upgrade work
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GRUPA AZOTY KĘDZIERZYN
On March 13th, an internal order was implemented on measures to reduce the risk of infection with SARS-CoV-2 and
On March 16th, the state of epidemic threat was introduced on the company premises as of 10:00 am on that day until further notice On March 18th, the company provided PLN 750,000 to the Independent Public Healthcare Complex of Kędzierzyn- Koźle to combat coronavirus On March 24th, a special information service for the employees InfoZAK was launched On March 24th, an agreement on the possibility of changing the work organisation system was reached with the trade unions active at the company On March 25th, an additional entry gate for pedestrian, bicycle and passenger cars was opened On March 31st, the company provided the first batch of sodium hypochlorite to the Independent Public Healthcare Complex of Kędzierzyn-Koźle; 3 tonnes of the disinfectant for wastewater treatment were secured On April 10th, the Company lent free-of-charge seven vehicles to hospitals in the region of Opole On May 6th, a new diagnostic laboratory, financed by Grupa Azoty ZAK S.A., was opened in the infectious disease hospital in Kędzierzyn-Koźle The Company granted additional benefits to parents of children aged 8 to 12 who cannot benefit from the Social Security Institution's allowance
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Granular NPK fertilizers 19% SRF & CRF 25% Fertigation and foliar fertilizers 36% Liquid fertilizers and biostimulants 20%
COMPO EXPERT
(PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue 499 479
EBITDA 45 61 36% EBITDA margin 9% 13% 4pp
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COMPO EXPERT
54
COMPO EXPERT
55
56
56
(PLNm)
436 479 476 558 521
100 200 300 400 500 600 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
Lower revenue – price effect Slowdown in the Plastics segment – deterioration
Positive effect of gas prices
22 45 46 57
10 20 30 40 50 60 70 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020
GRUPA AZOTY S.A. – SEPARATE FINANCIAL INFORMATION
Agro Fertiliz ers 43% Plastics 55% Energy 1% Other 1%
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GRUPA AZOTY S.A. – SEPARATE FINANCIAL INFORMATION
57
(PLNm)
56 86 86 108 69
12,8% 18,0% 18,1% 19,4% 13,2%
1Q2016 1Q2017 1Q2018 1Q2019 1Q2020
PLNm
Agro Fertiliz ers 77% Plastics 9% Energy 3% Other 11%
Negative contribution from the Plastics segment (slowdown in the sector) Lower fertilizer prices More favourable gas price levels
58 (PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
243 223
EBITDA
55 53
EBITDA margin
23% 24% 1pp
GRUPA AZOTY S.A. – SEPARATE FINANCIAL INFORMATION
Nitroge n fertilize rs… Other 11%
FERTILIZERS
(PLNm) Q1 2019 Q1 2020 Q/Q change Segment revenue
302 284
EBITDA
41 6
EBITDA margin
14% 2%
Polyamid e 82% Caprolactam 2% Other 16%
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60
FINANCIAL DATA
(PLNm)
80 180 280 380 480
500 1 000 1 500 2 000 2 500
Revenue Net profit
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
300 800 1300 1800 2300 2800
EBITDA
GRUPA AZOTY GROUP – CONSOLIDATED FINANCIAL INFORMATION
61 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 IV2019 Q1 2020
250 500
EBITDA NET DEBT
50 100 150 200 250
250 500 750 1 000 1 250
Revenue Net profit
FINANCIAL DATA
(PLNm)
GRUPA AZOTY PUŁAWY GROUP
62
FINANCIAL DATA
(PLNm)
50 150 100 200 300 400 500 600 700 800 900 1 000
Revenue Net profit
0,0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
100
EBITDA EBITDA MARGIN
GRUPA AZOTY POLICE GROUP
The 2013–2015 net profit and EBITDA figures are shown based on a 2016 adjustment related to AFRIG S.A., with an estimated effect on each performance metric (the effect on the bottom line totals approximately PLN 223m); the results for 2016–2020 are based on reported data
63
64 4 1 45
APPENDIX 3
Production units Sales representative
Stabilisation units Logistics 1045 44
271 66 48 7
48%
273 253 335 3 280
EU 37% North America 2%
13 5 58
South America 1% Africa 1% Other Europe 8%
127 16 61 1 39
Asia 3%
39 43
Grupa Azoty Plastics Chemicals Energy Compo Expert Agro Fertilizers
PLNm
Other
4 4 12 6
65
APPENDIX 3
200 400 600 800 1 000
Nitrogen fertilizers and ammonia Nitrogen-sulfur fertilizers Compound fertilizers Specialty fertilizers Q1 2019 Q1 2020
100 200 300
Nitrate fertilizers Ammonium nitrate Urea UAN Q1 2019 Q1 2020
100 200 300
Siarczan amonu Saletrosan RSMS
100 200 300
NPK fertilizers NP fertilizers Granular NPK fertilizers
100 200 300
SRF & CRF Fertigation and foliar fertilizers Specialty fertilizers NPK Liquid fertilizers and biostimulants
66
APPENDIX 3
source: Ministry of Agriculture and Rural Development 0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 1 kg
/1 kg N PLN/t
Prices of wheat, maize and rapeseed
Ratio 1 kg of milling wheat /1 kg N Milling wheat − PLN/t Fodder corn − PLN/t 50 150 250 350 450 550 650 100 150 200 250 300 350 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 USD/t EUR/t
Prices of nitrogen fertilizers (urea, CAN, AN, AS) and ammonia
Calcium ammonium nitrate (CAN) 27% Germany, CIF inland (bulk) (EUR/t) Ammonium nitrate AN 33.5% France, delivered (bulk) (EUR/t) Ammonium sulfate Black Sea FOB (white) (USD/t) Ammonia FOB YUZHNY (USD/t) Prilled urea FOB Baltic–USD/t źródło: Argus, ICIS, Profercy 50 100 150 200 250 300 350 400 450
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
USD/t
Prices of compound fertilizers (NPK, DAP), potassium chloride and phosphate rock
DAP FOB Baltic USD/t NPK 3x16 FOB Baltic (USD/t) source: WFM, Fertecon, CCM
67
APPENDIX 3
400 600 800 1000 1200 1400 1600
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
EUR/t
Prices of 2-EH, DOTP and propylene
2-EH FD NWE EUR/t (spot) Propylene FD NWE EUR/t (spot) DOTP FD * NWE spot – EUR/t źródło: ICIS 50 100 150
OXO alcohols Plasticizers Urea (technical grade) Melamine Titanium white Q1 2019 Q1 2020
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APPENDIX 3
500 700 900 1100 1300 1500 1700 1900 2100 2300 2500 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 USD/t
EUR/t
Prices of PA6, caprolactam, benzene and phenol
Liquid caprolactam, New Contract, Molten (Monthly) DDP WE (EUR/t) Polyamide 6 Engineering Resin DDP WE (EUR/t) Phenol FD NWE (EUR/t) Benzene CIF NWE (EUR/t) Crystalline caprolactam CFR N.E.ASIA (USD/t) source: ICIS, Tecnon 10 20 30 40 50
Caprolactam Natural polyamide Modified polyamide Q1 2019 Q1 2020