Powering Creation
Grupa Azoty Grupa Azoty is Poland’s largest chemical group, formed through consolidation of the major players of the Polish chemical sector. We offer widely-recognised brands of fertilizers, plastics, OXO alcohols, plasticizers, pigments and other chemicals. Given our scale of operations, we are well positioned to shape the future of the chemical sector both in Poland and in Europe. We are searching for new solutions, new products, new ways of thinking. Chemistry means change. This is why today we set the course for innovation. The structure of Grupa Azoty gives it strength and security through the sheer scale of operations, as well as versatility and flexibility through integration of a wide range of mutually complementing capabilities.
Powering Creation
Chemistry of the future
Gdynia
1
Grupa Azoty S.A.
8
9 Gdańsk
3 Police
■ Plastics (PA6, POM, modifications) ■ Caprolactam ■ Nitrogen fertilizers (AN, CAN)
Guben
6 Puławy
■ Nitrogen-sulfur fertilizers (ASN, AS) Kędzierzyn-Koźle
4
2
Grupa Azoty PUŁAWY
7 Chorzów
2
5 Grzybów 1 Tarnów
■ Nitrogen fertilizers (AN, RSM ®, UREA) ■ Nitrogen-sulfur fertilizers (RSMS, AS) ■ Melamine ■ Caprolactam
3
Grupa Azoty POLICE ■ Compound fertilizers (NPK, NP) ■ Nitrogen fertilizers (UREA)
Grupa Azoty S.A.
■ Nitrogen-sulfur fertilizers (NS)
■ Plasticizers
Products offered by Grupa Azoty S.A. include engineering plastics and nitrogen fertilizers. The company is the only Polish producer of polyacetal and one of the largest producers of modified engineering plastics based on polyamide 6, polyacetal and other compounds. Its product range includes caprolactam, polyacetal and polyamide 6, of which it is an integrated producer. Nitrogen fertilizer production (calcium ammonium nitrate and ammonium nitrate) is an important segment of the company’s activity, especially as regards sulfur fertilizers (SALETROSAN ® and ammonium sulphate), of which Grupa Azoty S.A. is the largest domestic manufacturer. The company offers chemicals (such as cyclohexanone and mixed acids) and catalysts. It also provides laboratory services.
Grupa Azoty SIARKOPOL
Grupa Azoty POLICE
■ Titanium white
4
Grupa Azoty KĘDZIERZYN ■ Nitrogen fertilizers (AN, CAN, UREA) ■ Nitrogen-sulfur fertilizers (CAN+S) ■ OXO alcohols
5
■ Sulfur-based products
6
Grupa Azoty ATT POLYMERS (Germany) ■ Plastics (PA6)
7
Zakłady Azotowe Chorzów S.A. ■ Compound fertilizers (NPK) ■ Stearin
8
Bałtycka Baza Masowa sp. z o.o. ■ Logistics
9
GZNF Fosfory ■ Compound fertilizers
10
AFRIG Trade SARL (Senegal) ■ Import, distribution and sales of chemical products and raw materials
Grupa Azoty POLICE manufactures compound fertilizers (such as POLIDAP®, POLIFOSKA®, POLIMAG®) and nitrogen fertilizers (mocznik.pl®, POLIFOSKA® 21), titanium pigments and chemicals. The company also provides laboratory services. Production and sale of organic and inorganic chemicals, including ammonia and NOXy™ (a 32.5% urea water solution obtained from technically pure urea and demineralised water) are other important elements of the company’s operations. Grupa Azoty POLICE is Poland’s only producer of titanium white, sold both on the domestic and international markets under the trademark of Tytanpol®.
Grupa Azoty PUŁAWY Grupa Azoty PUŁAWY produces nitrogen fertilizers, including urea and ammonium nitrate, and is Poland’s only manufacturer of liquid fertilizers RSM® and RSM®S. GZNF Fosfory, a Gdańsk-based subsidiary, produces compound NPK fertilizers. The company also specialises in the production of melamine (Poland’s only manufacturer), caprolactam, NOXy™, hydrogen peroxide, while Grupa Azoty PUŁAWY’s Chorzów-based company is Poland’s only stearin manufacturer.
Grupa Azoty KĘDZIERZYN Grupa Azoty KEDZIERZYN is a leading producer of high-quality nitrogen fertilizers, including ZAKsan® and the SALMAG® product line. The company is a NOXy™ manufacturer, the only producer of OXO alcohols in Poland, and the leading manufacturer of OXO alcohols and plasticizers in Europe. The company has the most advanced non-phthalate plasticizer unit in this part of Europe, producing Oxoviflex® – the first Polish new-generation plasticizer. It operates its own CHP plant and a cargo handling port, and provides specialised and certified laboratory services. Through its subsidiaries, Grupa Azoty has access to seaports in Police, Gdańsk and Gdynia and the cargo handling port in Kędzierzyn-Koźle, and operates its own rolling stock. The Group’s port facilities and rolling stock are adapted for transport of fertilizers and chemical products.
32% Operationalisation of Grupa Azoty’s strategy for 2014−2020 specifies how Grupa Azoty value is to be built under the adopted strategy. Main corporate objectives: ■ 2020 ROCE ≥ 14%
corporate projects
30%
■ 2020 EBITDA margin > 14% ■ 2020 EBIT margin > 8% ■ PLN 7bn to be spent on organic growth in 2014−2020 ■ Consolidating a top-three position in fertilizer
fertilizers
manufacturing in the European Union
The OPERATIONALISATION aims to achieve these objectives through projects in three core areas: ORGANIC GROWTH
OPERATIONAL EXCELLENCE
MERGERS AND ACQUISITIONS
19% heat and electricity
11% plastics
CAPEX PROJECTS
PLN bn
TO BE SPENT ON ORGANIC GROWTH
Grupa Azoty’s capex boom For several years now, Grupa Azoty has been changing the face of the Polish chemical industry. It constantly monitors the chemicals market and reacts accordingly. Competitive and inventive, Grupa Azoty develops to meet its customers’ expectations, making the chemical sector one of the most innovative branches of Polish industry. Development has been identified as Grupa Azoty’s continuing priority until 2020. In business, development means investments, which have now gained special dimension at Grupa Azoty. Organic growth is a gradual expansion of Grupa Azoty’s business based on resources generated in its previous operations. In its pursuit of organic growth, Grupa Azoty has selected 68 investment projects at various planning or completion stages to receive up to PLN 7bn in capital support.
4% OXO segment
2% pigments
2% melamine
SALES BY GEOGRAPHIES IN 2014
53%
22.4%
Poland
European Union, except for Poland and Germany
11.4%
2%
Germany
Other Europe
5.6%
Powering Creation
Asia
Grupa Azoty offers advanced quality products which are marketed both in Poland and abroad, in particular in the European Union, including Germany, the United Kingdom, the Czech Republic, Italy, France and Belgium.
2.1%
Africa
3.4%
South America
0.1%
Other
Fertilizers and chemicals (urea and OXO alcohols) are the key products sold in the domestic market. Exports to EU countries include mainly fertilizers (such as SALETROSAN® 26, AMMONIUM SULFATE AS21, SALMAG®, PULAN®, RSM®, POLIFOSKA® product line) and OXO alcohols, and exports to Asia – caprolactam and polyamides. In South America, we primarily market fertilizers. Global expansion of Grupa Azoty is not limited to winning new markets. We also seek to ensure supply security and stable sources of strategic feedstocks. To this end, we look for suppliers all over the world – recently we have acquired phosphate rock reserves in Senegal.
Grupa Azoty
Management
Currently, Grupa Azoty comprises four largest plants operating in the Polish heavy chemicals sector, based in Tarnów, Puławy, Police and Kędzierzyn-Koźle, as well as about fifty direct or indirect subsidiaries, associates and entities in which Grupa Azoty holds minority interests. This complex structure has emerged in the process of strategic consolidation pursued in recent years. The consolidation has enabled us to expand our production capacity, run bold research and development projects and strengthen our independence in terms of logistics, feedstock and energy supplies. Having completed the process of expansion through mergers and acquisitions, we have recently concentrated on leveraging the achieved economies of scale and synergies from consolidation in our day-to-day operations.
Grupa Azoty seeks to grow its value by operating as a single corporate organism. Our management model is designed to serve this strategic objective. It is based on centralisation of the functions which generate the greatest synergies and management of key business processes at the Group level, while maintaining the individual character, location and legal autonomy of Grupa Azoty’s subsidiaries. The Management Board of Grupa Azoty S.A. acts as the Management Board of Grupa Azoty. Remit of the President includes general oversight of Grupa Azoty, while the Management Board members are responsible for key areas of Grupa Azoty’s operations: finance, strategy and development, investments, integration of production processes, supply chain management, social dialogue, plant safety and environmental protection, as well as the management of individual companies. Corporate management is performed by corporate departments of Grupa Azoty S.A., whose functions at Grupa Azoty level and Parent level are identical.
The IPO of Grupa Azoty S.A. (the Parent of Grupa Azoty) on the Warsaw Stock Exchange took place in mid-2008. It was a period of forming and consolidating Grupa Azoty. The capital market was a tool we used to expand and strengthen, but also a platform of dialogue with investors, who have had considerable contribution to Grupa Azoty’s current make-up. The performance of Grupa Azoty’s share price has proven that our policy of building Grupa Azoty’s value is effective. Long-term investors who trusted us back then have not been disappointed. Grupa Azoty S.A. is included in the WIG, WIG30, mWIG40 and WIG-Poland indices, the WIG-Chemia industry index, as well as the RESPECT index. It is also a constituent of the MSCI Emerging Markets index published by Morgan Stanley, an American investment bank, and of the FTSE Emerging Markets index, a part of the FTSE Global Equity Index Series (GEIS).
Grupa Azoty follows the best practices and global standards of corporate management and sustainable development. Grupa Azoty companies comply with the applicable laws and meet all the accreditation, certification and other requirements. Management systems used by Grupa Azoty companies conform to the highest international standards.
Apart from Grupa Azoty S.A. (ticker ATT), two other companies: Grupa Azoty PUŁAWY (ticker ZAP) and Grupa Azoty POLICE (ticker PCE), are publicly traded on the Warsaw Stock Exchange.
GRUPA AZOTY S.A. SHARE PRICE FROM THE IPO (JUNE 30TH 2008) TO AUGUST 12TH 2015 SHARE PRICE (PLN) 90 80 70 60 50 40 30 20 10 0 06.2008
08.2015
Powering Creation
22.53% Other 33% State Treasury
5.75%
EBRD
Shareholding structure as at April 25th 2015
8.76% TFI PZU S.A.
0.57% Norica Holding S. à r.l. 9.9% Rainbee Holdings Limited*
9.96% ING Pension Fund 9.53% Opansa Enterprises Limited* * A direct subsidiary of Norica Holding S.à r.l. Norica Holding S.a.r.l. holds indirectly 20% of shares.
Percentage share of the product segments in sales
■
Grupa Azoty amongst producers
in Poland
#1
■ mineral fertilizers1 ■ compound fertilizers2 ■ sulfur-containing fertilizers
Plastics
15%
Fertilizers
56%
■ nitrogen fertilizers
#2
in the European Union ■ mineral fertilizers
revenue in 2014
9,898 million
in the European Union
#3
Chemicals
■ compound fertilizers
25%
#1
in Poland
Heat and electricity
■ polyamide
2%
Other
■ OXO alcohols and plasticizers
2%
■ titanium white ■ melamine #2
in the European Union ■ melamine
#5
in the European Union ■ plasticizers
■ polyamide 6 3
1 Compound fertilizers + nitrogen fertilizers; 2 Compound fertilizers in aggregate (AP, NPK, PK); 3 Among integrated producers.
PR/08/2015/1750
Grupa Azoty S.A. ul. Kwiatkowskiego 8 | 33-101 Tarnów | Poland Call centre: +48 14 637 37 37 Telephone: +48 14 633 07 81 Fax: +48 14 633 07 18