Perspectives for PUŁAWY Group

| Prospects & Investment |

Due to specificity of the business in which we are active, general macroeconomic factors have a considerable influence on the functioning of “PUŁAWY” Copmany. Looking from this perspective, let us take a moment to discuss the perspectives that our company faces in the approaching months of 2013.

What 2012 brought

The chief challenges for “PUŁAWY” are: general economic slowdown in 2012, resulting in lower demand home and abroad, lower GDP growth than expected and the forecast of further GDP growth stagnation. However, analysts suggest that slow GDP growth will lead to lower inflation rate, which will bring lower interest rates, and might stimulate demand in the long term. Growth of demand is also likely seeing that is will be necessary to replenish stock used up in 2012. Another factor is the forecast fall of value of the Polish Zloty against EUR (by c. 4%) and USD (by c. 8%). And yet, this trend might be reversed in the second half of the year.

PUŁAWY’s answer

Responding to such factors, “PUŁAWY” Company has decided to react in such a way as to conteract the impact of poor market conditions. In 2013 we are planning to:

• diversify the trade offer,

• introduce new product portfolio,

• compete in the area of pricing, but first and foremost by offering unrivaled quality.

Undoubtedly an important factor, which makes the plans more likely to be a success, is the decrease of the price of natural gas, which is one of the key resources in the Great Chemical Synthesis sector manufacturing.

Stronger in a group

The excellent financial result of “PUŁAWY” Company in the first half of 2012/13 financial year resulted from modernization of the installation (cheaper production, better quality) and constant improvements of customer service through needs analysis as well as diversification of suppliers. This confirms the fact that the Group is bound to reach its target for this year. A major step is also the merger of “PUŁAWY” and Azoty Tarnów CG into “Azoty” CG. Common strategy, joining the potentials and experience bring effects of scale and synergistic effects. Thanks to common work to modernize production and increase the portfolio, the consolidation will help retain the Group’s advantage over competition home and abroad.