Key figures 2020 Key data Pharmaceuticals Intermediate chemicals Chlorine derivatives 639 million € 3 activity 48% export1 sales1 areas 1,297 10 factories 4 R&D centres workforce1 1 Year 2019 2020 3 Mission and principles . The general purpose of Ercros is the consolidation of a solid and lasting industrial group, that contributes to the wealth and well-being of society, that corresponds to the trust that its shareholders have placed in it and that enable to fully develop the personal and professional capacity of those who are part of it. Ercros' action is aimed at increasing the value of the company and is guided by three basic principles: maximum safety for its employees, neighbors and facilities; absolute respect for the environment, and satisfaction of the needs of its customers and total quality of its products. 2020 4 Estrategia empresarial . To achieve a chemical group with an efficient, healthy and profitable international presence. To achieve productive, industrially integrated installations with a European dimension and placed in efficient locations. Offer high-performance products with greater comparative advantages and higher growth expectations. Objective To adjust the production facilities to changing demand in order to improve the productivity and efficiency of Ercros. 2020 5 FaciliitesCentros de producción Tarragona complex . Vila-seca I . Vila-seca II . Tarragona Sabiñánigo Monzón Flix Cerdanyola Tarragona complex Tortosa Aranjuez Almussafes Chlorine derivatives Intermediate chemicals Pharmaceuticals 2020 6 Markets What do we buy? What do we sell? Methanol PVC Other Other Electricity Caustic soda Ethylene Polyols EDC TCCA Paraformaldehyde Gas Where do we buy? Rest of the world Rest of the OECD countries Spanish market Rest of the EU 2020 7 Centres, products and applications Division Facilities Products Applications Chlorine Flix, Tarragona, Caustic potash Chemical industry derivatives Sabiñánigo, Vila- Caustic soda General Industry Seca I, Monzón Chlorine Derivatives manufacturing and Vila-seca II Chloroisocyanurates Pool water treatment EDC VCM manufacturing Hydrochloric acid General Industry PVC Construction Sodium chlorate Paper pulp bleaching Sodium chloride Water treatment Sodium hypochlorite Water treatment VCM PVC manufacturing Intermediate Almussafes, Formaldehyde Derivatives manufacturing chemicals Cerdanyola Glues and resins Wood industry and Tortosa Moulding compounds Sanitary/electrical equip. Paraformaldehyde Resins Pentaerythritol Paints Sodium formate Tanning industry Pharmaceuticals Aranjuez Erythromycin Antibiotic Fusidic acid Skin infections Fosfomycin Antibiotic 2020 8 Competitive position Spain Europe World Chlorine derivatives TCCA 1st 1st - Sodium chlorate 1st 4th - Sodium hypochlorite 1st 11th - Caustic potash 1st 7th - PVC 1st 9th - Caustic soda 1st 9th - Intermediate chemicals Glues and resins 2nd 7th - Formaldehyde 1st 5th - Paraformaldehyde 1st 1st 1st Polyols 1st 2nd 3rd Moulding compounds 1st 2nd 3rd Pharmaceuticals The data Fusidic acid - 2nd 2nd provided comes from Fosfomycins 1st 2nd 3rd calculations made by Ercros 2020 Erythromycins 1st 1st - 9 Chart of the first executive level Chairman and chief executive officer (CEO) Antonio Zabalza Legal service General secretariat Asunción Loste Teresa Conesa Chief operating officer Chief financial officer (COO) (CFO) Agustín Franco Pedro Rodríguez Integrated logistics Manuel Arce Human resources Systems of Administration Finance Joaquín information Sustainable Josep Rovira Meritxell Alberti development Sanmartín Eduardo Gual Chantal Coll Pharmaceuticals Chlorine derivatives Intermediate division division chemicals division Mª Carmen Francisco España Enric Montserrat Cruzado 2020 10 Chlorine derivatives division Highlights of the division Chlorine is the common link of the chlorine derivatives division. Chlorine and caustic soda are obtained simultaneously in the same process from sodium chloride and electricity, in a fixed ratio of 1 ton of chlorine to 1.12 tons of caustic soda. This set is known as an electrolytic unit ("ECU"). The ECU margin is determined: by the sale price of the co-produced caustic soda and the profitability of the different applications of chlorine; by the price of electric energy, which represents around 45% of the production costs of the ECU; and by the cost of raw materials consumed in the production of chlorinated derivatives. Approximately 60% of the chlorine produced by Ercros is used to manufacture chlorine derivatives and the rest is supplied by pipeline to a customer. Division challenges In the short term: optimize the expansion of the capacity of the electrolysis plants by increasing the sales volume of caustic soda and chlorine derivatives. In the medium term: face the end of the contract with the chlorine client without suffering the profitability of the business. In the long term: assume the costs derived from the decarbonisation of the industry and increase the weight of products with higher added value and expanding markets. 2020 12 Chlorine-caustic soda process scheme 2020 13 Chlorine-caustic soda production scheme 2020 14 Production capacities Products Thousand t/year Applications EDC 349 VCM Manufacturing Sodium hypochlorite 347 Water treatment Caustic soda 242 Chemical industry Chlorine 217 Chemical industry VCM 200 PVC manufacturing PVC suspension 200 Construction Hydrochloric acid (35%) 172 Chemical industry Dicalcium phosphate 98 Animal feeding Caustic soda pearls 66 Chemical industry Caustic potash 47 Pharmaceutical industry Sodium chlorate 46 Paper bleaching Chloroisocyanurates (TCCA + DCCna) 28 Swimming pool purification PVC compounds 22 Construction Potassium carbonate 15 Chemical industry and pharmaceutical Potash scales 14 Pharmaceutical industry Ammonia 13 Chemical industry Peroxide 13 Chemical industry and pharmaceutical Potassium chlorate 10 Chemical industry Sodium chlorite 6 Water treatment 2020 15 Organizational structure Chlorine derivatives division Sales Innovation and technology Water treatment Planning and control Sales Basic chemicals Basic chemicals Planning and control Water treatment Italy + United Kingdom Marketing and + key accounts ROW1+NaClO Planning and control 2 Plastics East zone Germany+Portugal + Industrial ROW1 + Caustic soda pearls West zone Energy Comercial Sabiñánigo factory Plastics Flix factory PVC compounds PVC suspension Monzón factory and specialties Tarragona complex 2020 1 Row: rest of the world. 16 Division directory (I) Division director Francisco España Headquarters Avda. Diagonal, 593-595 08014 Barcelona E-mail: [email protected] Tel.: +34 609 880 630 and 934 393 009 Fax: +34 934 308 073 Plastics Basic chemicals Sales director: Salvador Casals Sales director: Carles Arias E-mail: [email protected] E-mail: [email protected] Tel.: +34 609 880 630 and 933 230 554 Tel.: +34 609 880 630 and 934 446 651 Fax: +34 933 237 921 Fax: +34 932 321 460 Customer attention centre (CAC) Customer attention centre (CAC) E-mail: [email protected] East zone: Tel.: +34 902 518 100 Tel.: +34 934 446 687 934 446 682 Fax: +34 934 517 802 Fax: +34 934 874 058 West zone: Tel.: +34 902 518 400 Water treatment Fax: +34 934 874 058 Product manager: Natàlia Torrents Exports: Tel.: +34 934 445 337 E-mail: [email protected] 934 446 675 Tel.: +34 609 880 630 and 934 532 179 Fax: +34 934 873 445 Fax: +34 934 537 350 Commercial office in France Customer attention centre (CAC) E-mail: [email protected] E-mail: [email protected] Tel.: +33 140 267 480 Tel.: +34 934 532 179 Fax: +34 934 537 350 2020 17 Division directory (II) Production centres Tarragona industrial complex Director: Joan Miquel Capdevila Flix factory Tarragona factory Director: Jaime Molina Polígono Industrial La Canonja C/Afores, s/n Carretera de Valencia, s/n 43750 Flix (Tarragona) 43110 La Canonja (Tarragona) Tel.: +34 977 410 125 Postal address : Fax: +34 977 410 537 Apartado de correos, 450 E-mail: [email protected] 43080 Tarragona Tel.: +34 977 548 011 Monzón factory Fax: +34 977 547 300 Chief of operations: Rafael Mancho E-mail: [email protected] Carretera Nacional 240, km 147 Vila-seca I factory 22400 Monzón (Huesca) Autovía Tarragona - Salou C-31 B, Tel.: +34 974 400 850 km 6 Fax: +34 974 401 708 43480 Vila-seca (Tarragona) E-mail: [email protected] Tel.: +34 977 370 354 Fax: +34 977 370 407 Sabiñánigo factory E-mail: [email protected] Director: Luis Gállego Vila-seca II factory C/Serrablo, 102 Carretera de la Pineda, km 1 22600 Sabiñánigo (Huesca) 43480 Vila-seca (Tarragona) Tel.: +34 974 498 000 Tel.: +34 977 390 611 Fax: +34 974 498 006 Fax: +34 977 390 162 E-mail: [email protected] E-mail: [email protected] 2020 18 Intermediate chemicals division Highlights of the division Formaldehyde is the core product of the intermediate chemicals division and methanol its main raw material (30% of variable costs). 79% of the formaldehyde produced is used to manufacture liquid and solid derivatives. Solid derivatives (paraformaldehyde, polyols and moulding compounds) account for 67% of the business's turnover, have a higher added value than liquids and their market is global. Division challenges In the short term: improve product margins and open markets. In the medium term: consolidate the new ranges of resins (ErcrosGreen+ and ErcrosTech), with better environmental and technological benefits. In the long term: maintain global leadership based on qualitative differentiation from competing products, mainly from Asian origin. 2020 20 Formaldehyde process scheme