Slide 1: Hypothesis vs Facts
LPP SA Hypothesis vs Facts Supplementary information regarding Hindenburg’s report WARSAW, 27-03-2024
Slide 2: Disclaimer
Disclaimer Information presented in this material constitutes a translation of the original Polish content and in the event of any discrepancies between English and Polish versions, the Polish version is the binding one. 2
Slide 3: LPP does not trade in Russia
LPP does not trade in Russia LPP has no operating or trading activities in Russia. LPP divested the Russian business in June 2022. LPP does not own the Russian company, has no control over it and does not manage the structures. The Russian company in its own name and on its own account, sells goods
Slide 4: Transparent and responsible market communication is our priority
Transparent and responsible market communication is our priority • Until March 15th, 2024, i.e. until the date of report release by Hindenburg Research (HR), LPP was not aware of the content of the HR material, nor did have any information on when it would be published. Prior to the publication of t
Slide 5: #1: Investor of Russian Entity
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #1: Investor of Russian Entity • The Russian company, ReTrading was sold in June 2022 to entities not related to LPP. One of the investors is the former CEO of a Russian company. • The company provided the Auditor and and the banks financing LPP with extracts
Slide 6: #2: Export of goods to Kazakhstan /1/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan/1/ • LPP holds official documents from the Polish Customs Office, the Customs Office of Kazakhstan, and Kazakh Tax Office and Kazakh Bank, which state that in 2023 LPP delivered goods to Kazakhstan with a total value of USD12
Slide 7: #2: Export of goods to Kazakhstan /2/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan /2/ 1. Example: INVOICE – FROM LPP POLAND TO LPP KAZAKHSTAN ▪ Number of units of model 4273U – 18 pieces ▪ Value in EUR – 35.28 EUR ▪ Gross Weight– 2.80 kg 7 Information presented in this material constitutes a translation of
Slide 8: #2: Export of goods to Kazakhstan /3/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan /3/ 2. CUSTOMS DECLARATION OF IMPORT CLEARANCE IN KAZAKHSTAN ▪ No of declaration 55302/010623/0096696 ▪ Gross weight in declaration – 2.8 kg – in line with the invoice ▪ No of units – 18 – in line with the invoice ▪ Value EUR
Slide 9: #2: Export of goods to Kazakhstan /4/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan /4/ INFORMATION FROM TRADESPARQ DATABASE: ▪ Master Bol – customs declaration number of LPP invoice - 55302/010623/0096696 ▪ Gross weight – 2.8 kg – in line with the invoice aggregated for the whole lot, but multiplicated in t
Slide 10: #2: Export of goods to Kazakhstan /5/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan /5/ DATABASE OF TRADESPARQ - MULTIPLICATION OF RECORDS 10 Information presented in this material constitutes a translation of the original Polish content and in the event of any discrepancies between English and Polish versio
Slide 11: #2: Export of goods to Kazakhstan /6/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan /6/ OFFICIAL DOCUMENTS FROM THE BANK CONFIRMING THE VALUE OF DELIVERIES TO KAZAKHSTAN – PERIOD OF 09’22-11’23 11 Information presented in this material constitutes a translation of the original Polish content and in the event
Slide 12: #2: Export of goods to Kazakhstan /7/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #2: Export of goods to Kazakhstan /7/ We thoroughly analysed Tradesparq database – all records of LPP invoices: • 87 customs declarations in Tradesparq database • Value in EUR from the invoices, matched with invoices and custom clearance forms • Value in USD
Slide 13: Export of goods to Kazakhstan
Export of goods to Kazakhstan Our proofs: - LPP Kazakhstan revenues - PLN 112m in 2022 and PLN 103m in 2023. - Official data of Polish Statistical Office (GUS) on the total exports from Poland to Kazakhstan (PLN 5.5bn in 2023, including PLN 212m in textiles) - The Official data of the Statistical Of
Slide 14: #3: Trade Activity in Russia /1/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #3: Trade Activity in Russia /1/ • A comparison of the functions and business areas pursued by LPP in Russia prior to 2022 with those pursued today as a part of the performance of the obligations under the sales agreement evidently shows that LPP does not car
Slide 15: #3: Trade Activity in Russia /2/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #3: Trade Activity in Russia /2/ LIST OF BUSINESS ACTIVITIES AND BUSINESS FUNCTIONS DELIVERED FROM LPP TO RUSSIA 15 Information presented in this material constitutes a translation of the original Polish content and in the event of any discrepancies between E
Slide 16: #3: Trade Activity in Russia /3/
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #3: Trade Activity in Russia /3/ LIST OF BUSINESS ACTIVITIES AND BUSINESS FUNCTIONS DELIVERED FROM LPP TO RUSSIA 16 Information presented in this material constitutes a translation of the original Polish content and in the event of any discrepancies between E
Slide 17: #4: Information on goods supply to Russian entity
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH #4: Information on goods supply to Russian entity ▪ LPP informed that divestment contract obliges the company to support the Russian entity during transition period (e.g. Consolidated interim financial report for 1H2022 published on 06.10.2022 or Consolidated
Slide 18: Put option on shares in RE Trading
UNTRUE HYPOTHESIS OF HINDENBURG RESEARCH Put option on shares in RE Trading Put option on shares Information was made Currently, put option Genesis in RE Trading available to the public is virtually unfeasible ▪ Option available only to the Buyer ▪ Russian business divestment was in fact fire sale ▪
Slide 19: LPP will not return to Russia
LPP will not return to Russia WE DO CONFIRM, THAT: 1. Since LPP deeply condemns Russia’s invasion of Ukraine, Russian business was sold in 2022 to parties unrelated to LPP. Transaction that was put in place allowed LPP to recover part of the assets’ value left in Russian Federation. 2. Entities: (1)
Slide 20: Thank You
LPP Thank You RESERVED CROPP House MOHITO sinsay