Based on the analysis of the current market and operational situation, CIECH S.A. assesses that the Company's financial results for 2022 will be better than those presented in the forecast in April this year. The increased forecast assumes consolidated revenues in the range of PLN 5.250-5.450 million and consolidated normalized EBITDA in the range of PLN 950-990 million. The projected (N) EBITDA result is about 25 percent higher than the original (N) EBITDA forecast.

The increase in the forecast is the result of the analysis of the current operations of the Group's segments, which confirmed high demand for soda ash and soda bicarbonate, with the possibility of maintaining margins in the fourth quarter (y/y), due to adequate hedging of the prices of the main production raw materials. In addition, the result is positively influenced by the energy transformation and process optimization measures undertaken in the Soda segment. Good prospects are also shared by the Silicates segment, which is supported by the use of new, 30 percent larger production capacity and less energy-intensive production processes that should translate into better results in the fourth quarter (y/y). The prospects of the other segments were also analyzed – in particular, the availability of raw materials and other variable costs, as well as the impact of the macroeconomic environment on customers and order levels.

At the same time, there is a significant reduction in capital expenditures after the implementation of the CIECH Group's largest development program in 2019-2021. Capital expenditures in 2022 should be at the level of about PLN 450 million (compared to PLN 747 million in 2021). The CIECH Group is currently focusing on projects that improve the cost efficiency of production.

-    The increase in the revenue and normalized EBITDA forecast for 2022 is the result of the successful transformation of the Group undertaken under the previous strategy. Moreover, it is a confirmation of our organizational flexibility and the professionalism of our employees in the face of a dynamically changing macroeconomic situation. We are steadily increasing the efficiency of our soda business and reaping the fruits of good development decisions in the Agro and Silicates segments, where a new energy-efficient furnace has strengthened CIECH's position as the largest supplier of silicates in Europe. We are not slowing down, we are implementing the strategy for 2022-2024, which aims to further increase efficiency, strengthen the position of the most promising businesses, and develop innovation in the Group's operations, while pursuing ambitious ESG goals. – says Dawid Jakubowicz, President of the Management Board of CIECH S.A.

CIECH will publish its results for the three quarters of 2022 on Tuesday, November 29, after the close of the trading session.

Contact:
Mirosław Kuk, Rzecznik Prasowy Grupy CIECH
miroslaw.kuk@ciechgroup.com, tel. +48 723 66 86 86.
 
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CIECH is an international developing chemical group with a strong position on global markets. It is the second largest manufacturer of sodium carbonate and sodium bicarbonate in the European Union, the largest manufacturer of evaporated salt in Poland, the largest supplier of sodium silicates in Europe, the largest Polish manufacturer of plant protection products, and a leading producer of polyurethane foams in Poland. Its factories are located in Poland, Germany and Romania, and it employs over 3,000 people throughout the EU.
 
Since 2005, CIECH S.A. has been listed on the Warsaw Stock Exchange, and since 2016, simultaneously, on one of the largest stock exchanges in Europe - Börse Frankfurt. The development of the Group is supported by its strategic investor – Kulczyk Investments.
 
As one of the largest Polish exporters, CIECH ships its goods to almost each continent. They are used to manufacture products necessary in the everyday life of millions of people around the world. That is why the Group is a crucial element of numerous sectors of the economy – construction, automotive, agriculture, chemical, food and pharmaceutical industries.
 
CIECH combines a modern business approach and care for sustainable development. Since 2020, it has been a member of the United Nations Global Compact - the world's largest initiative that brings together socially, environmentally and economically responsible businesses.
 
Since 2021, CIECH has been consistently implementing its ESG Strategy, which includes eight commitments in the field of climate policy, social relations and corporate governance.
 
More information about the CIECH Group can be found at www.ciechgroup.com.