INVESTOR PRESENTATION Q3 2018 2 AT A GLANCE GRUPA AZOTY Grupa Azoty, 's largest chemical company and a significant player in the EU market, is one of the major chemical groups in the EU, offering a diversified product portfolio – from mineral and engineering through OXO products to .

4 locations of main production plants

60 group companies

Approximately 15,000 employees

No. 2 in the UE in mineral production No. 3 in the EU in PA6 production 3 GRUPA AZOTY AT A GLANCE KEY DATA

FINACIAL RESULTS PLNm MARKET PLN 3.4bn Jan–Sep 2018 CAPITALISATION REVENUE 7,202

SHARES 99,195,484 shares EBITDA 573

EBITDA MARGIN 8% min/max price NET PROFIT* 59 PLN 6 - PLN 113

NET DEBT 766 1M average trading volume PLN 3.204m NET DEBT/EBITDA 0.97 (ratio)

WSE: WIG30, mWIG40, WIG- STOCK CHEMIA, WIG30, mWIG 40, INFORMATION WIG, WIG-Poland

FOREIGN INDEXES: MSCI, FTSE

ESG: RESPECT INDEX, FTSE4GOOD, MSCI ESG

* Data adjusted for one-off items 4 GRUPA AZOTY AT A GLANCE OWNERSHIP STRUCTURE

STATE TREASURY Pozostali 25.75% - Government of Poland EBOiR 2.87% - Represented by the Chancellery TFI PZU S.A. of the Prime Minister 8.60% Opansa Enterprises EBRD Limited - European Bank of Research and 9.51% Development Norica indirectly - Shareholder since 2013 19.82% Rainbee ING OFE Holdings TFI PZU S.A. 9.96% Limited - Financial investor Skarb 9,90% Państwa ING OFE (NN OFE) 33.00% Norica Holding - Financial investor S.à. r.l. 0.41% NORICA HOLDING S.À. R.L. - Subsidiary of Acron and Mr. Viatcheslav Kantor - Shareholder since 2012 - Norica and its subsidiaries hold 19.82% of shares

Free float – 25.75 %

Based on official notifications received by the Company 5 GRUPA AZOTY MANAGEMENT BOARD DIVISION OF RESPONSIBILITIES AMONG MANAGEMENT BOARD MEMBERS

President of the Vice President of Vice President of the Vice President of Vice President of Member Management Board the Management Management Board the Management the Management of the Management Wojciech Wardacki, Board Grzegorz Board Board Board PhD Witold Szczypiński Kądzielawski, PhD Paweł Łapiński Mariusz Grab Artur Kopeć

Management Director General Infrastructure Procurement Production assets and HR policy Grupa Azoty S.A. Finance strategy

Raw material and Research and Planning Plant safety Audit and risk Agro Segment product and infrastructure development and controlling integration

Communication Plastics Segment Environmental Growth strategy Logistics protection

Organic Synthesis Social dialogue CSR Segment Investments

President of the Management Board Production Grupa Azoty integration Investor relations POLICE

M&A

GRUPA AZOTY S.A. 5 6 GRUPA AZOTY AT A GLANCE BROAD PRODUCT PORTFOLIO

Agro Fertilizers 48%

Chemicals Other 31% 2% Energy 3% Plastics 16%

Jan–Sep 2018 7 GRUPA AZOTY AT A GLANCE CORE BIZNES

ZMPP BBM Fosfory Grupa Azoty Police Port ZMPP Terminal NPK • Port Navitrans NPK TiO2 • Logistics Grupa Azoty Puławy N fertilizers Urea Melamine CPL Goat TopCo GmbH Grupa Azoty Grupa Azoty Siarkopol Speciality ATT Polymers S fertilizers PA6 Grupa Azoty S.A. Parent Z.A. ChorzówGrupa S.A. Azoty Grupa Azoty S.A.N fertilizers CPL Kędzierzyn NPK • AN, CAN • ASN,Compounding AS PA6 Logistics • CPL, PA 6, POM N fertilizers Urea • Compounding Logistics Production Production OXO Plasticizers ACQUISITIONS 9 ACQUISITIONS CREATING VALUE FOR GRUPA AZOTY THROUGH ACQUISITIONS

• Puławy (up to 95.98%) • Transaction completed on • Siarkopol (99.33%) November 26th 2018

• Puławy (10.4%) 9.9 10.0 9.8 9.6 9.0 • Police (66%) • Kędzierzyn (94%) 7.1 7.2

5.3 • ATT Polymers GmbH (100%) • Kędzierzyn (53%)

1.9 1.3 1.4 1.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jan-Sep 2018

Consolidated revenue (PLNbn)

9 10 ACQUISITIONS ENHANCED FERTILIZER PRODUCT PORTFOLIO

Fertilizer value pyramid

COMPO EXPERT Speciality fertilizers product portfolio Liquid fertilizers Technologically advanced agrochemical products with a and biostimulants higher added value than commodity fertilizers. Designed mainly for high-value crops (fruit, vegetables, ornamental plants). Speciality fertilizers are priced higher, but offer Fertigation many benefits, including slow release of nutrients. Some and foliar speciality products can be used for covered or greenhouse fertilizers cultivation, as well as for lawns and turf grass. They are available in solid form (granules) and as liquids (for soil and foliar application). The most advanced products positively influence certain characteristics of the plants, such as size, SRF | CRF colour or – in the case of fruit and vegetables – taste.

Stabilised NPK

Volume Margin

NPK (SOP-based) NPK (MOP-based) Grupa Azoty Commodity fertilizers product portfolio Standard fertilizers widely applied all around the world. Typically UAN | ASN | CAN contain one or two nutrients. In the case of NPK fertilizers, they are based on potassium chloride. Priced lower that speciality fertilizers. AN | AS | DAP

Ammonia | Urea 11 ACQUISITIONS COMPO EXPERT SALES MARKETS

(2017)

Americas Western and Central Europe Revenue (FY 2017)

approximately

Southern Europe and Africa Asia and Australia EUR 333m

Adjusted EBITDA (FY 2017)

approximately EUR 30m

Markets reached by COMPO EXPERT products Key sales market 12 ACQUISITIONS COMPO EXPERT ACQUISITION

INTEGRATION INITIATIVES Consolidation of the Grupa Appointment of consolidation teams for: Azoty Group’s and the  Procurement TopCo Goat Group’s  Agro Segment’s sales and marketing financial statements  Research and development  Manufacturing, technical and technology areas since Q4 2018  Accounting and financial flows  Legal  Corporate supervision  IT  1. 2. 3. 4. 5.

Production Sales synergies R&D synergies Raw material Financing know-how and product synergies synergies synergies OPERATIONS 14 OPERATIONS ENERGY COMMODITIES

ELECTRICITY PRICES [YOY] NATURAL GAS PRICES

PLN/MWh 33% 48% 290 140 30 130 25 240 120

190 110 20 100 140 15

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 90 PLN/MWh IRDN EUR/MWh 80 10 70 5 HARD PRICES [YOY] 60 50 0 USD/t sty 16 kwi 16 lip 16 paź 16 sty 17 kwi 17 lip 17 paź 17 sty 18 kwi 18 lip 18 paź 18 120 0% Average gas price paid by GA PGNiG tariff gas price Imported gas price 100 PPE gas price TTF DA gas price (right axis)

80

60 NATURAL GAS CONSUMPTION (MILLION MWH) 40 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 ARA H1 2018 TOTAL 11.8

CO2 PRICES [YOY] Grupa Azoty S.A. 1.0 EUR/t 180% Grupa Azoty POLICE 2.9 22 17 Grupa Azoty PUŁAWY 5.7 12 7 Grupa Azoty KĘDZIERZYN 2.2 2 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 EEX 15 OPERATIONS AGRO FERTILIZERS

2017 PRODUCTION CAPACITIES Revenue: Compound YARA PLN 5.3bn fertilizers 36% Grupa Azoty 4 Agrofert No. 2 fertilizers and 3 EBITDA: 0% 0% in EU ammonia Borealis PLN 484m 64% 6 5 0% 0% Fertiberia

EBITDA MARGIN: Eurochem No. 1 9.6% Achema JSC in Poland Timac Agro

Azomures TARGET MARKETS Petrokemija

[tt] 0 5 000 10 000 15 000

Europe - EU (excl. Source: Fertilizers Europe other Poland) 0.2% 2.8% South America Poland 0.2% 6.8% Africa 0.1% North America Asia 0.0% 0.0% 16 OPERATIONS CHEMICALS

2017

Revenue: PLN 2.8bn

EBITDA: Melamine Titanium PLN 348m 17% white 13%

EBITDA MARGIN: 12.5% Urea (technical Other grade) 21% 21%

PRODUCT GROUPS

Plasticizers OXO alcohols 8% 20% 17 OPERATIONS CHEMICALS PRODUCTION CAPACITIES Construction industry PLASTICIZERS*

ExxonMobil

Basf Plasticizers Evonik No. 5 Electric cables and wiring Oxoviflex in EU Polynt

Grupa Azoty No. 1 OXEA GROUP in DEZA Aldehydes Poland Footwear Perstorp OXO AB

[tt] 0 100 200 300 400 500

OXO * *

Automotive Basf OXO alcohols Oxea Group No. 5 Ineos in EU Perstrop OXO AB No. 1 Grupa Azoty Paints and varnishes in Oltchim SA Poland

[tt] 0 100 200 300 400 500 *Production capacities for phthalate plasticizers and terephthalate plasticizers. ** Production capacities for 2-EH, N-butanol, isobutanol. Source: Plasticizers Alkohols 2013 and Plasticizers (UE) 2013 18 OPERATIONS CHEMICALS

PRODUCTION CAPACITIES  Wood processing (laminates, resins, adhesives) MELAMINE

OCI Melamine  Automotive industry (varnishes) Grupa Borealis No. 3  Paper industry in EU Grupa Azoty  Electrotechnical industry BASF SE No. 1 in Poland  Anti-inflammatory agents Azomures S.A.

 Plastics [tt] 0 20 40 60 80 100 120 140 160

 Rubber, leather TITANIUM WHITE and ceramic industries

No. 1  Textile and cosmetics industries in Poland

Paints Laminates Paper Varnishes

OPERATIONS 19 OPERATIONS PLASTICS

2017 PRODUCTION CAPACITIES Revenue: PLN 1.4m Caprolactam POLYAMIDE 6 26%

Polyamide EBITDA: 68% Other BASF* PLN 221m 6% Lanxess*

GRUPA AZOTY* EBITDA MARGIN: Aquafil* 15.6% No. 3 DSM* in EU

Radici TARGET MARKETS Domo* No. 1 Rhodia in Poland Nyobe UE 64% Ube*

Nurel Asia 10% 0 50 100 150 200 250

Poland other 23% 3%

Source: PCI Nylon, YellowBook 2015 Integrated INVESTMENTS 21 STRATEGY STRATEGIC GROWTH DIRECTIONS

Our mission

Create value for the Company and the Reinforce leadership national economy by delivering safe, Complete the Group in agricultural useful and innovation-driven chemical consolidation process solutions in Europe products 1. 2.

Our vision

Deploy state-of-the-art and comprehensive chemical industry Strengthen the second Develop and solutions that meet stakeholder operating pillar by implement innovations expectations expanding the non- to drive growth of the fertilizer business chemical industry 3. 4. 22 INVESTMENTS INVESTMENTS

CAPITAL EXPENDITURE RESEARCH AND DEVELOPMENT CENTRE IN TARNÓW (PLNm)

2014 2015 2016 2017 I-IX 2018

CAPEX in CAPEX PROJECTS Jan–Sep including: 2018

GROWTH CAPEX 422 (PLNbn) CAPEX MAINTENANCE CAPEX 126 1.6bn

MANDATORY CAPEX 31 1.1bn PURCHASE OF FINISHED GOODS 29

OTHER (COMPONENTS, MAJOR OVERHAULS) 100 1.3 0.9 TOTAL 708

CONSOLIDATED CAPEX – CASH FLOW 771 Plan 2018 Prognoza 2018 CAPEX organiczny Remonty komponentów Ulepszenia 23 INVESTMENTS COMPLETED INVESTMENT PROJECTSORGANIC GROWTH

Polyamide Unit in Tarnów New Research and Development Centre in Tarnów New CHP plant in Kędzierzyn – phase 1

Pulgran/PulgranS in Puławy

Upgrade of the ammonia unit in Police Flue Gas Treatment Unit in Tarnów (project co-financed under the Norwegian Financial Mechanism)

INVESTMENTS 23 24 MAIN PROJECTS IN PROGRESS POLICE POLYMERS

MANUFACTURING COMPLEX PROJECT SCOPE: Propylene and polypropylene units, a polypropylene logistics base, and a propane and ethylene handling and storage PROPYLENE UNIT terminal

 Annual production capacity – approximately 400,000 POLYPROPYLENE tonnes UNIT  Start of construction – end of 2019  Commercial commissioning – 2022  Financing under a project finance model: SEA TERMINAL a) equity – 50% WITH FEEDSTOCK b) debt capital – 50% TANK FARM  Location: within the Pomeranian Special Economic Zone (state aid of up to PLN 428m) AUXILIARY AND LOGISTICS  Budgeted cost of the project: EUR 1.27bn INFRASTRUCTURE

PROJECT’S KEY BENEFITS: diversification of revenue streams, additional profits for the Grupa Azoty Group, expansion of the product portfolio, flattening of business cycles

INVESTMENTS 24 25 MAIN PROJECTS IN PROGRESS NITRATE GRANULATION PLANT

PRODUCTS PROJECT SCOPE:

Plant for production of ammonium nitrate-based granulated Calcium ammonium nitrate fertilizers 385,000 (CAN) Granulated ammonium nitrate

 The plant’s daily production capacity: 1,400 tonnes of CAN or 1,200 tonnes of mechanically granulated nitrate  Project completion timeframe: 2015 - 2020  Location: Puławy

 Capital expenditure: PLN 385m

PROJECT’S KEY BENEFITS: Improvement of fertilizer quality as a result of applying modern mechanical granulation

INVESTMENTS 25 26 MAIN PROJECTS IN PROGRESS NITRIC ACID AND NEUTRALISATION UNITS

PROJECT SCOPE:

new nitric acid unit 1,000 t/d, neutralisation unit 1,300 t/d, fertilizer production line 600 t/d, upgrade of existing nitric acid lines

 Project completion timeframe: 2017 – 2024  Project carried out jointly with Thyssenkrupp Industrial Solutions AG  Location: Puławy

 Capital expenditure: PLN 695m

PROJECT’S KEY BENEFITS: higher production capacity, addition of new solid and liquid fertilizers (Ca, K, Mg) to product range, avoiding downtime (production losses), elimination of bottlenecks in absorption and cooling, improvement in production efficiency and consumption rates (ammonia, steam yield, electricity) 27 MAIN PROJECTS IN PROGRESS COAL GASIFICATION PROJECT

RAW MATERIALS PROJECT SCOPE: Construction of hard coal gasification unit

coal  Products: methanol or ammonia  Estimated construction period: 36 months  Location: Kędzierzyn  Project carried out jointly with Energia S.A. oxygen

 Estimated capital expenditure: EUR 400m–600m nitrogen

KEY OBJECTIVES: Improved security of gas supplies thanks to in-house production of syngas, development of low-emission, clean coal-based technologies, development of new production capacities in the chemical and energy sectors

INVESTMENTS 27 28 MAIN PROJECTS IN PROGRESS POWER GENERATION UNIT

PROJECT SCOPE:

Construction of a new coal-fired unit

 Launch of the unit: 2021  A 100 MWe coal-fired unit  Integrated with the captive CHP plant  Location: Puławy

 Project budget: PLN 890m

PROJECT’S KEY BENEFITS:

The new unit and the upgraded captive CHP plant will provide Grupy Azoty Puławy with an energy system appropriate for its electricity and process heat requirement. 29 R&D

SELECTED R&D PROJECTS

SCOPE: OUTCOME: 3D PRINTING  PA6 filaments for FDM  Enhancement of the Grupa Azoty Group’s product  PA6 powders for SLS portfolio  Entering new markets

ORGANIC SYNTHESIS TECHNOLOGY

 Enhancement of the Grupa Azoty Group’s product  Developing new organic synthesis products portfolio  Extension of the product chain  Entering new markets  Low-tonnage, high-margin products

HUMIC ACIDS

 Construction of a humic acid unit  Expansion of the Grupa Azoty Group’s product portfolio  Addition of plant growth stimulants and  Entering new markets organic fertilizers to the Grupa Azoty Group’s fertilizer portfolio FINANCING 31 GRUPA AZOTY GROUP Grupa Azoty Group financials as at September 30th 2018

PKO and bank syndicate AVAILABLE FUNDING • Revolving and umbrella credit facility (PLNm) • PLN 3,550m 3,395 • PLN 3,770m since Nov 2 2018*

EBRD 3 490 320* • Term Loan Agreement • PLN 650m 2 EIB

• Term Loan Agreement 1 0 • PLN 1,170m

Total corporate financing NET DEBT • PLN 5,370m (PLNm) Net debt/EBITDA - max 3.0x (2020–2023: max 3.5x) 766 NET DEBT Q3 2017 Q3 2018

Total debt ratio (%) 34.0 37.5 327 233 Net debt (PLNm) 608 766 Net debt/EBITDA -0.03x 0.23x 0.28x 0.97x

Net debt/EBITDA 0.53 0.97 -41 for 12 months (ratio) 2015 2016 2017 Sep 2018

* Since November 2nd, the amount of credit facilities granted under agreements and available credit limits has been approximately PLN 320m higher following the execution of a new overdraft facility agreement with PKO BP (EUR 75m), connected with physical cash pooling in the euro. STOCK PRICE 33 2018 EVENTS AND GRUPA AZOTY S.A SHARE PRICE

Share price

Initial offer to purchase COMPO 80 EXPERT shares submitted

70 2017 annual 2017 estimated performancereport Financing Agreement to Agreement agreements purchase Goat Reclassificatio 60 Q1 2018 amending credit with EBRD TopCo GmbH n to MSCI results [SERIES NAME] facility signed shares executed GLOBAL agreements with SMALL CAP PKO BP executed 50 Dividend MSCI indices paymentdate review H1 2018 results

Management Board 40 Change of 2017 annual report recommendation Credit issue date concerning dividend facility agreement with 30 H1 2018 estimated Dividend record date Goat TopCo GmbH 20 Q3 2018 acquisition estimated closed performa Q3 2018 results

10 sty 18 lut 18 mar 18 kwi 18 maj 18 cze 18 lip 18 sie 18 wrz 18 paź 18 lis 18 gru 18 34

Thank you for your attention For more information, visit www.grupaazoty.com Contact: [email protected]