about ciech - investors presentation

CIECH a modern, diversified chemical group on a stable path of growth

Presentation of the CIECH Group

The CIECH Capital Group

Who are we and what do we do?

The CIECH Capital Group

Who are we and what do we do?

3

We are one of the leaders of the Polish chemical market

70 yearsin world markets

8production plants

more than 3.7 thousand employees

in the Group

more than

10 yearsat the Warsaw Stock

Exchange (GPW)

and an important player in the European market.

The CIECH Group

4

We are supported by a stable, strategic shareholder

KI Chemistry

Open Pension Fund (OFE) Nationale-Nederlanden

Others (including Investment Fund Companies (TFI), Open Pension Funds(OFE), Asset Management companies, the Government of Norway, individual investors)

52,699,909shares

=52,699,909

votes

Since 9 June 2014, KI Chemistry (a company

from the Kulczyk Investments group)

has been the majority shareholder

of CIECH

9%51%

40%

As of 16 May 2016

The CIECH Group

KI confirms its long-term involvement in the

process of building the companys market value. With

particular emphasis on its intention of transforming

CIECH into one of the leading chemical companies in the world.

5

Our business model is diversified

Soda segment

PLN 2,241 million of revenues

PLN 656million of EBITDA (Adj.)

Silicates and glass segment

PLN 175 million of revenuesPLN 33 million of EBITDA (Adj.)

Organic segment

PLN 770 million of revenues

PLN 85million of EBITDA (Adj.)

Transport Segment

PLN 123 million of revenuesPLN 13 million of EBITDA (Adj.)

PLN 3,273 million of revenues

PLN 748million of EBITDA (Adj.)

Data for 2015

EBITDA (Adj.) adjusted EBITDA; the Group also reports the Other segment which covers consolidation exclusions and corporate functions

The CIECH Group

Segment

6Soda segment

Strong market position and diversification inside the segment

Soda ash Baking soda Salt

Used mainly to produce glass and granular detergents

Used mainly to produce animal feed and food

Used mainly in chemical and food industries and in water treatment

processes

Segment

7

Dynamic development and market expansion

Plant protection products Polyurethane foamsResins

Used mainly by farmers (herbicides, fungicides, insecticides)

Used mainly in production of upholstery furniture

Used mainly to produce powder coating, varnishes, as well as in

construction and transport industries

Organic segment

Segment

8

Stable position and continued growth

Glass products Silicates

Used in niche markets: ornamental lanterns for candles, jars with glass tops and twist-off jars for food products

Used for production of precipitated silica (applied mainly in the tyre industry), detergents, various types of seals,

coatings and waterproof layers

Silicates and glass segment

Segment

9

Concentration on services inside the Group

Logistics inside the GroupRail transportTransshipment

Transport Segment

10

Advantage connected with location of plants

CIECH Soda PolskaInowrocaw, Janikowo

CIECH Vitrosilicon

ary, Iowa

CIECH RomaniaRamnicu Valcea

CIECH Soda DeutschlandStassfurt

CIECH SarzynaNowa Sarzyna

CIECH PiankiBydgoszcz

Soda segment

Organic segment

Silicates and glass segment

We have 8 production plants located in Poland, Germany and Romania.

Production activity

Our activities are set by the Strategy

adopted in 2014

12

Maximization of the CIECHs value through organic development

Strategy of the CIECH Group for 2014-2019**

1. Growth of revenues in the soda segment

2. Twofold increase of the share in the Polish market of plant protection products

3. Growth of adjusted EBITDA

4. Growth of the Companys market value

approx. PLN 3.8 billion

average annual revenues from sale*

approx. PLN 660 million

average annual adjusted EBITDA*

approx. 17%

average annual adjusted EBITDA margin*

Previous years brought effective optimization activities and significant investments

14

We constantly generate higher profits and margins

4 378

3 5013 244 3 273

2012 2013 2014 2015

423 446514

748

2012 2013 2014 2015

9,7%12,7%

15,8%

22,9%

2012 2013 2014 2015

Revenues [mPLN] EBITDA (Adj.) [mPLN]

EBITDA (Adj.) adjusted EBITDA (adjusted by non-typical one-off events); data reported in the statement for a given year, also covers discontinued activity

EBITDA Margin (Adj.) [mPLN]

282

526

684

838

2012 2013 2014 2015

Result on sale [mPLN]

Financial situation

15

The most important implemented projectsDevelopment of the CIECH Group

Soda +200 Projectincrease of the soda production capacity by

additional 200 thousand tonnes per year

Extension of plastics production installation

increase of the production capacity of saturated polyester resins by 100%

MCPA installationstate-of-art installation for manufacture of an active

substance for production of plant protection products

Modernization of the salt production installation

intensification of dry salt production

New calcinatorat the plantin Romania

increase of the production capacity

16

Significant decrease in financial costs

* HY bond interest

Moody's rating:

Ba3 / positive perspectiveStandard & Poors rating:

BB- / stable perspective

Financial situation

Refinancing of the debt in 4Q2015

Was

9.5%*

double-currency credit in PLN and EUR (of up to PLN 1.34 million)

and revolving credit (of up to PLN 250 million)

High Yield bonds of EUR 245 millionrevolving credit of up to PLN 100 millionother credit facilities

Is

In 1Q 2016, continuation of very good financial

results

18

Record EBITDA (Adj.)

[PLN million] 1Q16 1Q15 yoy1Q16

consensus1Q16

forecasted range

Revenue 826 817 1.1% 855 815 914

Gross sales profit 244 214 14.0% - -

Gross sales margin 29.5% 26.1% 3.4 p.p. - -

EBIT 150 117 28,4% 146 138 156

EBIT margin 18.2% 14.3% 3.9 p.p. 17.0% 15.6% - 18.8%

EBITDA 204 173 17,6% 204 195 212

EBITDA margin 24.6% 21.2% 3.4 p.p. 23.8% 21.9% - 25.5%

Adjusted EBITDA 206 193 7,0% 204 195 212

Adjusted EBITDA margin 25.0% 23.6% 1.4 p.p. 23.8% 21.9% - 25.5%

Net result 102 53 92,1% 105 84 118

Net margin 12.4% 6.5% 5.9 p.p. 12.3% 9.2% - 14.2%

Financial results for 1Q16

EBITDA (Adj.) adjusted EBITDA (adjusted by unusual one-off events, in 1Q2016, mainly a change in the level of provisions PLN -2.7 million); PAP consensus of 10 May of the current year, based on forecasts from 11 brokerage houses

59% 62% 61%71% 66% 66% 72% 71%

71%

27% 27%24%

19% 27%25% 19% 22%

22%

13% 10%12% 9%

5% 6%6%

5% 5%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

19

Revenue

2014

845 814 799 786 817 841 801 814 826

2015 2016

Financial results for 1Q16

Organic segment Glass and silicates segment Transport segment OtherSoda segment

20

EBITDA (Adj.)

77%

82% 86%

101%

82% 84%

93%

92%

89%

22%

15%11%

17%9%

5%

15%

9%

7%7%

9%

4%

6%

5%

3%

3%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

EBITDA (Adj.) adjusted EBITDA (adjusted by unusual one-off events, in 1Q2016, mainly a change in the level of provisions PLN -2.7 million)

2014 2015 2016

119 154 143 95 193 188 199 168 206

Financial results for 1Q16

Organic segment Glass and silicates segment Transport segment OtherSoda segment

21

Debt

1 2611 479

1 213 1 182

1 3611 447

3.9

3.5

2.72.3

1.8 1.9

2011 2012 2013 2014 2015 1Q2016

Net debt Net debt / EBITDA (Adj.)

[PLN million] At the end of 1Q16 At the end of 2015 change

Debt ratio 64.1% 65.7% -1.6 p.p.

Long-term debt ratio 45.7% 46.1% -0.4 p.p.

Debt to equity ratio 178.8% 191.5% -12.7 p.p.

Gross financial liabilities (PLN million) 1,579 1,564 +1.0%

Net financial liabilities (PLN million) 1,447 1,361 +6.3%

The Group systematically reduces its debt. At the end of 1Q16, the net debt / EBITDA (Adj.) ratio amounted to 1.9. According to the adopted strategy, the Group endeavours to reduce the ratio to the level below 1 in 2019.

Thanks to refinancing of the debt in 1Q 2016, the Groups costs of debt servicing were much lower

Financial results for 1Q16

Methodology for calculating the metrics is consistent with the financial statement

Effective implementation of the strategy and strategic support of the owner translated into the growth of CIECHs market value in recent years

23Growth of goodwill

CIECH share price long-term growth trend

Information chart

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2Q2014Acquisition of the majority package

of CIECH shares by KI Chemistry

4Q2014Adoption of

strategy for 2014-2019