Good afternoon, and welcome to the earnings call devoted to the financial performance of Grupa Azoty after 2025. Today's earning call will be conducted online.

You can ask your questions using the bot tool under the transmission window. That's where you can find it.

We will try to answer as many of your questions as possible during the conference. We will start by discussing the financial performance.

Our speakers include Marcin Celejewski, President of the Management Board; Małgorzata Królak, Vice President; and Artur Chołody, PhD, Vice President.

Good afternoon, everybody. As far as Grupa Azoty is concerned and our performance after 2025, we have a number of drivers that we want to discuss.

This is not a one-sided, simple story. Today's presentation and discussion will be a more in-depth approach to our problems, our challenges, and our outlook for the future.

As far as positive news is concerned, this is our second consecutive year of an increase in EBITDA results, which is related to both our costs and revenues. In 2025, consolidated EBITDA came in at 323 million PLN, which represents an improvement up on 2024 by over 60—by 650 million PLN.

This is yet another year, as I said, the second consecutive year where we are reporting positive EBITDA, operating results. We are generating more and more cash.

Our financial footing is more and more stable. The restructuring measures are bringing results.

Among main events of 2025, which impacted our EBITDA results, but which are also part of our effective and our development foundations, includes a deal with Orlen on Grupa Azoty Polyolefins. We managed to sign a preliminary share purchase agreement, and what tells about this transaction and also the effects of it will be discussed later on.

The background of this transaction and its importance for the entire Grupa Azoty will be discussed by Małgorzata Królak. In Agro, our Agro segment is growing.

Our efforts as well as our results of our growing revenues, these are results of our efforts taken in this area. Mr.

Chołody will later discuss all this. This is the effect of both financial restructuring and cost management.

We are stepping up, accelerating our efforts for this. You've seen both restructuring and transformation programs, but we are already seeing results.

We're gaining our agency over what is going on across the group. We are very happy to see growing export for our sales.

Sometimes, all of us tend to forget that Grupa Azoty is second in Europe, chemical and fertilizer, which today is one of elements of stabilizing food security across Europe. As far as Agro is concerned, almost 50% of our products are sold abroad.

In chemicals, 55%, and plastics, 74%. Which means that our products are all well competitive, both in terms of our quality and desirable not only in Poland, but also abroad.

Four events, four foundations which we will discuss today will be the focus of our presentation, so that you understand where our results come from, these main events, main pillars of our business that we will continue to develop. Before our more in-depth discussion, I've mentioned that Grupa Azoty Polyolefins, they are beyond the transaction that we managed to conclude with PKN Orlen, this is a historic transaction, legacy transaction that will continue to have an impact on our business and all of our financial results, as well as on our debt.

As you can see, the transaction with Orlen, Mrs. Królak will discuss it, but if you look at EBITDA adjusted for Polyolefins, the change is about 27 million PLN.

However, if you look at net results when we talk about the loss and the analysis of our results

with and without Polyolefins, this delivers an additional almost 6 billion PLN of difference. This is only tip of the iceberg, for the Polyolefins project cast a shadow on our business and the work of the employees that work for our group, employees that strengthened our position.

I will now give the floor over to Małgorzata Królak, who will discuss this. Ladies and gentlemen, we're meeting today in order to summarize 2025, but this will not be an ordinary report.

2025 will go down in history not only as yet another reporting period, but as a year of turning the tables, of regaining control over our future. When we started, we clashed against the reality of what we found, which called for a rescue effort.

Today, we are able to tell you that we have survived the storm. What we've managed to do over the past few months can be summarized as the largest, the most complicated process of a company of a chemical corporation in Poland after 1989.

We did not only save jobs, we secured the chemical industry in Poland. Since the investment decision for the Polymers Police project, main other mistakes on the scale of the risk 2020-2023, where we saw a sharp increase in costs and delays in our project.

This has been a very difficult process. Now, the annex signed postponed certain milestones for many months, by December 2023.

Production had not been launched, and almost two years of delay, these 21 months did not change the schedule for the repayment of our loans, financial institutions. In December 2023, when the first installment of our loan, the payment date came, production had not been launched and the shareholders, Grupa Azoty and Police had to extend a loan of 150 million PLN, and this was at a time of a very severe crisis.

Managers agreed to postpone deadlines for the project without securing our payments. In October 2023, we found out 10 billion PLN vanished.

These were funds for debt service. Outgoing management knew that without billions of PLN funds, it would become insolvent.

In December 2023, we signed the first stabilization agreement, and in 2024, financing was stopped. The scale of problems was appalling.

Grupa Azoty increased by 14.7 billion. Our total exposure due to this project reached almost 10.5 billion PLN, of which 5.5 billion were borrowings, 3 billion on bonds.

Project was financed by non-secured loans, as well as 2.8 billion in additional forms of funding. To create a single job across Grupa Azoty Polyolefins, we would need to spend over 25 million PLN.

This was not an investment per se; it was a grandiose obsession which almost destroyed the entire group and put at risk all the 23,000 of jobs. Therefore, we decided to notify the prosecutor's office of the potential large-scale risk or losses due to the actions taken by previous management board and their very bad investment decisions between 2014 and 2023.

The consequences need to be there. We as a management board are not here to focus on that.

We are here to structure and to amend situation. We signed a historical agreement with our creditors, and we worked on a very strategic agreement with Orlen related to the offering and preliminary share purchase agreement.

We're talking about 6.6 billion PLN, of which 4.7 from outside of Grupa Azoty will be resolved under this transaction, and 1 billion will be repaid under a part of the price paid by Orlen, and the rest are the remaining borrowings and other payables. 2 billion from the EPC contractor, 200 million from the subordinate loan, and more millions from the purchase of the equity has been solved in the restructuring agreement.

Sales of Grupa Azoty Polyolefins save Grupa Azoty, and it reduced the debt by 4.7 billion, it takes the burden of our shoulder, and it also removes other risks with 2.8 billion. This radically changes the negotiation position.

This protects jobs and allows us to be back on the right track. You can see the right track in our 2025 performance.

Let's look at the operating foundation of this. In 2023, our EBITDA was a catastrophic minus 1.6 billion.

For 2024, we reduced that to minus 330 million. Today, after our recovery program, for 2025, we report a positive EBITDA plus 323 million, and if you clear out of Polyolefins, EBITDA goes up to 350.

That's a very good and consistent growth track. Of course, the net result is still minus 5.2 billion, but as professional and investors, you know what that means.

That means write-off of the huge costs of the past. That's the final cleanup of the balance sheet of the Polyolefin project.

That was a painful, yet necessary movement. This means something unprecedented.

It reduces total exposure of the group from 21 to 13 billion, reduced the debt by 4.7 billion, it's 25%, and the total risk exposure has been reduced by 7.5 billion, which is 35%. After the GAP restructuring, the value of the debt will stabilize at 13.5 million, and we can safely move on to the next stage of restructuring.

Full balance sheet results of that debt will be seen after we close the Orlen deal, which is expected to come in the third quarter of this year. What we're presenting to you is not only a report from a challenging task, it's also a proof that we are responsible, that we feel responsible for the assets of the nation, and we're ready to take the most difficult decisions.

We have saved the group from emergency room, we have made brave surgeries, and we are holding accountable those who have taken the company to the brink of extinction. We have removed billions of toxic debt.

We focus on our core business. We focus on export and mission in our key sectors of chemicals, fertilizers, as the CEO mentioned.

We are very grateful for your attention and for being with us in this key year, and I'll be available for you for the Q&A session. Now, back to Mr.

Celejewski.

As I said, the presentation will have many dimensions to it, and Mrs. Królak gave you a more detailed look into one of the pillars which, luckily, we have dealt with successfully, but all the other consequences of the Polyolefins project are still with us.

One of our main goals is stabilization. However, when we move on to the more positive news, we must not forget that our 2025 performance, as I mentioned, was affected by our good quality products.

As you can see, Azoty products, well, half of those products are sold domestically, and the other half is exported outside Poland. We are a recognizable brand globally, supplying to all continents of the world.

Those eight years that Ms. Królak has just discussed, those eight years were largely lost.

We missed an opportunity to promote our business, to promote local content, and most of the energy of the previous management went to a gigantic investment that left us with this major debt. Now, I would like to give the floor to Mr.

Chołody, who will walk you through the details of our 2025 performance. Please bear that in mind that we are moving on to the positive news about Azoty and the group.

Right. Let me move on to the details.

As you can see, our revenues from '23 to 2025 have been relatively stable at over 13 billion. With the same revenues, our EBITDA is clearly different.

In 2025, compared '25 to '23, it's nearly 1.7 billion difference. This shows you a better efficiency, cost improvement, better cost performance, for which the credit is for our staff.

Thanks to them, we manage to improve the performance. Now, the key drivers of our EBITDA, if you look at our core operations across all of them, we have better performance.

In Agro, the change over 2024 is almost 400 million, in plastics it's more than 200 million, and more than 100 million in chemicals. In total, that's 650 million difference of EBITDA between 2025 and 2024.

Especially, there was a strong impact from one-off events, mostly the Polymers project.

In 2025, we were still cleaning up the most challenging problems. However, in 2026, we will start for even better performance with a clean sheet.

Now, in Agro, 2025, that was the powerhouse of our business with 400 million EBITDA. Our sales volume grew by 14% and our EBITDA margin grew by 4.6%.

We also introduced some new products. We modernized our plants to improve efficiency and reduce the costs of producing our fertilizers.

We also have new sales directions for our products. A few examples of major drivers that affected our performance, one fantastic example is COMPO EXPERT.

That's our international asset that is present across the world in tens of countries, across all continents. This particular asset has been growing at a steady rate, both in terms of revenues and EBITDA.

For net results, we have a small dip in 2025, but it was still positive. In '26, we expect an even better performance from COMPO.

Most importantly, we want COMPO EXPERT to become an actual part of Azoty. We want to work out and use all the synergies in sales, in technological development, in procurement, because together we are much more powerful globally.

Another nice example is Azoty Siarkopol. Here, we have two trends that collided last year.

First one was restructuring in Siarkopol, which allowed to reduce our fixed costs. In the second half of the year, sulfur prices went up, which allowed Siarkopol to break even.

Both in terms of EBITDA and net results, we delivered positive results after strongly negative results in 2024. Towards the end of 2025, our results skyrocketed because of the global changes in the sulfur market, especially after the outbreak of the crisis in the Gulf.

The performance of Siarkopol in 2026 will be even better for the whole group. Now, quick comments on the details part of our business segments.

As Mr. Chołody mentioned, our powerhouse is the main pillar of our strategy.

I'm of course referring to the Agro sector. In 2025, we had a few positive phenomena.

Some of those included or were caused by a proactive change to our sales policy. We began experimenting with prices and with their structure.

Quite importantly, these proactive measures, even though they were not very thorough, this is something that makes us very optimistic about the future. The peg yield price is slightly larger, but this actually accelerated the sales of our basic product.

I've mentioned that before. I'm very proud of all people in our group, and all the people in our group should be very proud of this performance, because yeah, all of our products are good quality.

As I mentioned repeatedly, our products are sold domestically and internationally. We have huge potential to become a great example of local content, fancy word recently often mentioned by the Prime Minister of Poland, because in the group, we unite farmers and the chemical industry.

In this way, we build value that has the potential to win in Western markets. As Mr.

Chołody has already mentioned, our margin is now much higher on those products. As I mentioned, this is without any reduction in our sales volume.

Also, our factories keep producing. They keep working.

They work 24/7 to provide the availability of products to local farmers, especially in Poland, all farmers who would like to use our products, farmers in Poland, in Europe, and beyond. As far as chemicals and plastics segments are concerned, the situation is pretty different.

We are looking at many years of pressure from Asian markets and producers who are pushing away European producers. What we focus on is how to reduce the losses generated in both those segments.

Despite lower volumes and lower revenues, we managed to substantially, radically decrease those losses, which positively impacted our EBITDA. For both segments, chemicals and plastics, we have seen since the beginning of 2026 that the chemicals and plastics segments are rebounding in Poland as we speak.

We have no European competitors, because, in the meantime, a number of chemical units and producers closed down or put their production on hold. In 2026, we see that those two segments will generate much, much better results than in 2025, and we will work on that.

Especially in terms of plastics, we will work on cost reduction. In terms of Polyolefins project specifically, we will still have certain costs in 2020 from 2025, but in 2026, we might see some revenues on the back of synergies that will generate in Police.

All in all, if we look at segment results, we see an uptrend practically across the board. We see that the volumes of sales for Agro are growing, and wherever we see any decreases, that is a sign that we do have international competition, and we could not grow in these particular areas.

However, all in all, EBITDA is in the green, above the line. We have managed to increase EBITDA, and this is yet another step that we have taken in order to rebound and regain our position not only in Poland, but also across Europe.

Moving on to the last part of today's earnings call before the Q&A session, because obviously you will still have time to ask us a number of questions later on, as I said at the very beginning, we have some news to share, which will shed a different light on Grupa Azoty. We have to bear in mind that we have taken the first major step in the stabilization process, as Mrs.

Królak mentioned, and also something that Mr. Chołody discussed.

This is already visible in our balance sheet bottom line and data for 2025. Still, the restructuring of all other payables that we still have in the group is ahead of us.

This was due to Polyolefins project. Thanks to a very reasonable approach of the financing institutions, which we keep close contacts with, we do hope that this process will be successful, and it will move towards a more positive direction.

Then we will focus on our transformation, our growth initiatives and processes. Speaking of which, in our opinion, when we analyze the effects of transformation efforts to date, then we still have a gigantic potential.

These are long-term benefits that will eventually translate into the streamlining of the functioning of the group, but also into financial results and further dynamic growth. Therefore, we have taken a number of efforts already to launch these programs.

What programs we're talking about? Operational and organizational transformation, which is based mainly on centralization of processes and management.

We are looking at the 40 54 companies across the group as if they were one single organism. Right now, we are not tapping into all the synergies that we could tap into.

We do not use all the opportunities. Those companies, those business units are often times functioning separately based on the regulations in force, which often times prevents us from taking fast track decisions.

From our perspective as a management board, but also objectively speaking, it is a major problem for the management and the boards of individual companies as well. There are certain decisions that could be taken to the benefit of the group as a whole, but in reality, they are very difficult to take for entities that function as separate companies or separate listed companies sometimes.

Therefore, we have this first pillar in order to flatten the organizational structure across the group for all the 54 companies, to streamline the work of all the managements, but also to make sure that everybody feels safe and feels part of this big family, while focusing on their core competencies. Therefore, we want to create certain framework in order to streamline and simplify the management of all 54 companies across the group, which will accelerate the progress of all our plans.

Secondly, Azoty Business Program, something that Mr. Chołody has already mentioned.

We are focusing on proactive initiatives in order to cut costs and/or to increase efficiency. This program brought tangible results in 2025, and we want to continue it, but also to even take a deeper dive into it.

Thirdly, process and production transformation. We want to look at all our group assets as a single company's assets.

A single company that needs to provide plans. We have appointed an intergroup team bringing together top specialists and experts, and also independent advisors who don't know the group, but can take a look from outside of the group in terms of the efficiency, in terms of the margins, in order to implement and roll out this model as quickly as possible, and to reduce the outflows of cash and stop ineffective production.

You can imagine easily that within such a group as Grupa Azoty that brings together 54 companies, the fact that we sometimes don't look or didn't look, speaking of former management boards, at this group as if it were a one single organism was to the detriment of the company as a whole or the group as a whole. That means that all those companies, the 4 50 54 units did not cooperate, did not add any synergies to the group as a whole.

They would be focusing on their company separately. That means that we did not have overall control of these processes.

This is one of the major pillars that should function smoothly in a group such as ours. Therefore, we approach it very seriously, and we want to see, in the second half of the year, maybe not in the second quarter, but in the second half of the year, to see a very tangible plan for transformation for processes and production.

Optimization of our assets portfolio and asset base, which is combined with the optimization and transformation obviously, could turn out that when we review all the companies or the assets, all the pro-efficiency initiatives, it might turn out that there are certain assets that either do not fit within our core business, which we talked about before, and we will create a list of such units, such assets, or maybe even single physical elements, components that could be divested. This will give us a starting point to stabilize our financial situation, or also to stabilize our debt, we cannot forget about our debts.

Last but not least, top line. The revenue figure, we want to strengthen and professionalize the management over all our sales channels across all our segments, which will also include something we mentioned last month, the creation of a marketplace platform, but not only digital platform, this will be physical platform, which is meant to integrate the entire value chain around agricultural production.

Grupa Azoty, as you have heard, it's a global company. It's not only Polish or European, but it's global.

The group ensures food security for Poles and outside of Poland as well while cooperating with our partners, with the farmers, with advisors and the suppliers. We are able to create a strong local content umbrella, which will strengthen our position, but also improve food security and give Polish farmers a chance for, or a starting point for, international expansion as well.

This is a very complicated and difficult project, but we started the work on this project already, and we want to see the first results of our efforts already in 2026. You have already heard from us today that we're here in order to dynamically transform Grupa Azoty in order for it to regain its position in Poland and in Europe, around the world as well.

For this, we need to focus on the restructuring process. This is why we're here.

I hope that the results that we will discuss after 2026 will show us the efficiency of our efforts and the effects of our efforts. That would be all from my side.

If you don't have anything to add, then the floor is over to Grzegorz to start the Q&A session.

Now for the Q&A session. The first two questions are related to Polyolefins, Miss Królak will take them.

After you sell Polyolefins, how much the debt will be reduced, and what does it mean for the group as a whole?

As we already showed at the presentation, the debt will be reduced by 4.7 billion, that's 25% down from 18.7, now it will go down to 13.7. The Orlen deal itself, what does it give us?

It allows us to avoid a GAP bankruptcy, which would question the future operations of that asset. It would also have very strong liquidity consequences.

By avoiding bankruptcy, we avoided those consequences. Another area is the repayment of roughly 50 million of debt as part of our composition.

Thirdly, revenues from a supply of utilities or consumption of hydrogen or the provision of services to GAP. Last but not least, participation in earnout mechanism, so that's a share in the future profits of Grupa Azoty Polyolefins, a kind of a dividend in case the project is successful in the future.

Thank you.

Two more questions to Mr. Chołody.

The first one is as follows: The Plastics segment shrank 40% year-on-year. Why is that, and what's your idea for recovery?

Another question: Chemicals and Plastics, can they break even at the EBITDA level this year?

Right. When it comes to 2025, then we saw a continuation of the expansion of Asian companies that do not suffer the costs of ETS or other environmental norms.

They have more affordable energy, and that means more affordable chemistry and more affordable plastics. This year, we have a very good movement, and market trends have been somewhat reversed because of the disruption of supply chain, or perhaps not disruption, but the supply chains became much more challenging.

That's why European buyers have been looking for sources in Europe, and there are only a few of those, and our production plants are among them. This is why we have seen a growing sales in oxo alcohols, pigments, and plastics.

All those segments have seen a considerable improvement. Towards the end of last year, we only expected to reduce our losses by a half compared to those in 2025.

If the macroeconomic situation continues, then we can even try to break even in terms of EBITDA on those businesses.

You mentioned that the company focuses on Agro. What's the effect of the situation in the Strait of Hormuz on your sales of fertilizers, and what will happen to fertilizer prices, and will you have any new sections?

The war and the situation at the Strait of Hormuz had a very powerful impact on our business. The situation was quite challenging because gas prices skyrocketed, but then conversely, we saw opportunities for actions both within the group and beyond.

We set up some task forces, some teams specializing in analyzing the production and the prices of gas. Those teams report to us daily.

They monitor global trends and they also produced some scenarios that were then translated into our manufacturing decisions. The situation did not limit our production output.

Even with the current prices, we still continue to deliver our production volumes. We also set up a new sales team that worked closely with our gas team, and that our prices were adapted in a rather smooth, rather than abrupt fashion.

When it comes to future prospects, well, we will know more after the closure of the first quarter, but from the operational perspective, all I can say is that we introduced new processes that optimized our production, our purchasing or procurement decisions, and our planning, production planning decisions, and pricing decisions. That's a very good contribution.

As we will discuss when we meet to summarize the first quarter, but actually something that looked quite perilous in the beginning now seems rather positive for the group, also when it comes to our actual performance. Quite importantly, we are a public listed company, we take care of our performance, but we need to see the big picture, the long-term horizon.

If you're limited to the short-term horizon and you speculate taking the opportunity of the day, well, that's not exactly the way to go. We, as a group, want to stabilize the market.

We want to have steady revenues at a certain level. We do that because we feel responsible.

Then when you change the perspective, this sense of responsibility translates immediately in a long-term economic horizon. Now, lessons learned for situation in Hormuz, we learned our lesson, and we passed the exam in flying colors.

We showed to everyone, including our partners, that it is important to have a long-term view on fertilizer prices, that it's important to consolidate value, to build strength of the country and the group using our current position. This is the direction our top-line project goes to, and we hope to attract more and more partners to the project soon.

Thank you. One more question to you, since you are the CEO of Azoty Puławy.

What is the future of the power unit in Puławy?

Let me finish my previous answer first. The sense of responsibility for stabilizing the region is taking place at a time when there is a lot of talk of suspending tariffs and CBAM.

Quite importantly, one of the aspects of fairness and competitiveness that the EU should take care of is ensuring level playing field and tariffs on Russian and Belarusian fertilizers, fertilizers from countries that can offer much better or that can apply much higher margins because they have access to cheaper gas. Those tariffs are the least the EU should do to provide a level playing field.

The same thing is CBAM. We, as a Polish European manufacturer, we follow all regulations related to ETS.

When we think about stability and strength and consolidation, it is important to remember that everything that's happening in the market should be in line with ensuring a level playing field for everyone. Now, coming back to the coal-fired power units, that's obviously a very difficult situation.

That's yet another oversized investment, not as much as the Polyolefins, but again, instead of a gas-fired power unit, we have a coal-fired unit that has never been commissioned. The contractor has left the site, and Azoty Puławy fully financed the project.

Right now, we are waiting for the completion of it, and hopefully, the units will start working. There is an official formal dispute.

We filed for a reimbursement of 500 million, either reimbursement or completing the project. Earlier this year, the contractor also sued us, which is an absurd lawsuit, because they are asking for the last payment, the last installment.

The last installment depends on ensuring adequate operating parameters. Obviously, we can't pay the last installment, because that power unit has not even completed internal acceptance tests.

The contractor has left the site, it would be absurd to pay the last installment. To me, this lawsuit from the contractor seems like clutching at straws.

In other words, it seems to me that mediation will start soon, and we will be looking for the most advantageous way of completing the project. We have done some preliminary talks, and we hope the mediation will take place by the end of June.

Now a question to Ms. Królak.

What are the main investment goals of Azoty for the next couple of years?

Our investment decisions in the group that will be taken in the months and years to come are based on the need to sustain the competitiveness of our key manufacturing plants. Given the financial situation of the group in recent years and the impact of Grupa Azoty Polyolefins on the availability of investment budget in other plants, this is something that requires our attention.

We will be investing in operational and process excellence, we will be investing in energy transition. Quite importantly, the group has some logistic assets of unique standing, for instance in Police chemical plant, and developing these assets is one of our priorities.

Thank you.

The last question that will summarize the meeting: What are the biggest challenges for the group?

Invariably, the biggest challenges is to stabilize the financial situation of Grupa Azoty, because the project that we have discussed in detail today, Polyolefins, has been largely restructured, but this irresponsible debt which was taken in years prior instead of investing in the core business where Grupa Azoty is an absolute leader both in Poland and in Europe, this has been voiced today quite clearly, calls for stabilization efforts. We have 13 financing institutions in the process and a couple of partners, we need to stabilize this situation in order for us to focus entirely and 100% on our growth, that is Agro and improvement of Plastics and Chemicals, but also something that is really important, something that has been mentioned, we need to focus on process transformation to make sure that we tap into all synergies across the group.

Number one challenge is to complete the stabilization. When we have done that, you can rest assured that this group will grow, because the results that we present for 2025 and the outlook that we discuss for 2026 and onwards, I'm sure that this will bring fruit, very tangible effects already in 2026.

The top line that consolidates the agricultural market and that strengthens and consolidates all the participants of the agricultural market in order for them to expand internationally is there, and the group can be a leader there. However, without financial stabilization, it is difficult for us to focus on business growth, because this means limitations in investments.

Thank you very much for your answers, thank you for the participation in this earnings call. We are very good timewise.

We will see you again on the 28th of May, when we will publish our financial results for the first quarter, and we will let you know when the next earnings call will be. Thank you very much.