Ciech

Szukaj
WCAG A A A

CURRENT REPORTS

Approval of the Strategy of the CIECH Chemical Group for 2014 – 2019.

Current report no : 70/2014
Report date : 11/4/2014
Abbreviated name : Ciech SA
Subject : Approval of the Strategy of the CIECH Chemical Group for 2014 – 2019.
Legal basis : Art. 56 section 1 point 1 of the Act of 29 July 2005 on Public Offering and Terms and Conditions of Trade of Financial Instruments in the Organized Trading System and on Public Companies (Journal of Laws of 2009, No. 185, item 1439)

Report : 

The Management Board of CIECH S.A. ("the Company") announces that on 3 November 2014, the Supervisory Board adopted a resolution approving the "Strategy of the CIECH Chemical Group for 2014-2019" ("the Strategy"), presented by the Management Board of the Company. According to the adopted document, the strategic objective is maximization of the value of the CIECH Group, mainly through the development in the area of soda. Moreover, the strategic objectives of the CIECH Group cover:

  1. increase in revenues in the soda segment,
  2. doubling the share in the Polish market of crop protection chemicals,
  3. growth of normalized EBITDA,
  4. growth of the value of the Company. 

The Strategy anticipates the achievement of the following financial objectives of the CIECH Group:

  1. average annual revenues from sale (2014 – 2019): approx. PLN 3.8 billion,
  2. average annual normalized EBITDA (2014 – 2019): approx. PLN 660 million,
  3. average annual normalized EBITDA margin (2014 – 2019): approx. 17 %,
  4. the achievement of the net indebtedness versus EBITDA indicator below 1.00 in 2019. For the purpose of calculation of the indicator, the average annual dividend rate was assumed at the level of 3%. The value of the dividend and its payment will depend on the market situation and the financial condition of the CIECH Group.

The objectives will be implemented through, among others:

  1. the strengthening of the leader's position in the soda segment in the key European markets through, among other things, effective reaching of new clients and the building of the position of a preferred supplier,
  2. determined strengthening of the market position in the organic segment through, among other things, an increase of production effectiveness and an increase in the use of the production capacity,
  3. development of highly-processed organic products, adapted to clients' requirements (in particular, the establishment of the research-development centre in Sarzyna),
  4. completion of reconstruction investments which, in the long run, will provide high quality and production cost effectiveness within the segment of silicates and glass, 
  5. active steps taken for the purpose of identification and implementation of new development initiatives focusing on the building of the goodwill of the CIECH Group.

The Management Board of the Company will carry out an on-going analysis of the market environment and identification of innovative solutions aimed at the building of the goodwill of the CIECH Group. A possibility is open of updating the Strategy in the event of changes in the conditions of operation of the CIECH Chemical Group.

Legal basis: Art. 56 section 1 point 1 of the Act of 29 July 2005 on Public Offering and Terms and Conditions of Trade of Financial Instruments in the Organized Trading System and on Public Companies (Journal of Laws of 2009, No. 185, item 1439)

Signatures of the Company’s Representatives : Dariusz Krawczyk – President of the Management Board 

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