Grupa Azoty Spolka Akcyjna · GPW:ATT
Grupa Azoty Spolka Akcyjna — Grupa Azoty — Investor Day (October 2021)
46 slides from Grupa Azoty Spolka Akcyjna's investor day presentation, Oct 28, 2021
Slide 1: Grupa Azoty Group Strategy for 2021-2030
GRUPA AZOTY GROUP STRATEGY FOR 2021-2030
Slide 2: Introduction: Grupa Azoty Strategy for 2021−2030
INTRODUCTION Grupa Azoty Strategy for 2021−2030 Ladies and Gentlemen, on behalf of the Grupa Azoty S.A. Management Board, I have the honour to present to you the Grupa Azoty Group New Strategy for 2021–2030, which is our response to the major challenges faced by today’s industry as a one of the lead
Slide 3: Introduction: Management Board of Grupa Azoty
INTRODUCTION Grupa Azoty Strategy for 2021−2030 The Strategy also provides for further consolidation of financial areas, which will facilitate This Strategy confirms that energy transition to address climate change is high on Grupa efficient management of the whole Group at the Business Segments lev
Slide 4: Grupa Azoty 2030 contents
Grupa Azoty 2030 01 Mission, Vision and Values of the Group 6 02 Management strategy based on Business Segments 8 03 ‘Green Azoty’ strategic corporate project 23 04 Financial strategy 29 05 ESG strategy 32 06 Feedstock strategy 38 07 Innovation strategy 40 08 Operational excellence strategy 42 04
Slide 5: Key challenges of the contemporary world defining the new 2030 Strategy
Key challenges of the contemporary The Grupa Azoty New Strategy until world defining the new 2030 2030 addresses key challenges of the contemporary world, with a particular focus on environmental, social and Strategy governance issues Environmental commitment and Food production and sustainable regu
Slide 6: Mission, Vision and Values of the Group
01 MISSION, VISION AND VALUES OF THE GROUP
Slide 7: Grupa Azoty’s Mission, Vision and Values until 2030
MISSION, VISION AND VALUES OF THE GROUP Grupa Azoty’s Mission, Vision Mission 2030 In harmony with the environment, and Values until 2030 we manufacture fertilizers, plastics and chemical products. We improve the well-being of people who live in Europe By 2030, Grupa Azoty will become an EFFECTIVE,
Slide 8: Management Strategy Based on Business Segments
02 MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS
Slide 9: Business Segments
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Enhancing business efficiency through segment management. Business Segments. The Group’s activity until 2030 will focus on Business Segments defined within the three key business areas of AGRO, PLASTICS and CHEMICALS. The new organisational model will h
Slide 10: AGRO: Grupa Azoty as a supplier of sustainable fertilizer systems
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS AGRO: Grupa Azoty as a supplier of sustainable fertilizer systems Grupa Azoty’s priority in the AGRO Segment will be to strengthen its position as a leader in fertilizer production and sales through portfolio expansion: by 2030 the Group will be perceiv
Slide 11: AGRO Segment: Grupa Azoty’s values offered to customers
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS AGRO Segment: Grupa Azoty’s values offered to customers Grupa Azoty’s products are widely available thanks to its solid partnerships with authorised distributors in Poland and traders on foreign markets. In addition, Grupa Azoty trades directly with ind
Slide 12: Plastics – Polyamide (PA) Segment: product portfolio and circular economy
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Plastics – Polyamide (PA) Segment: developing a product portfolio and implementation the principles of circular economy As an environmentally friendly manufacturer, Grupa Azoty will take steps to reduce the consumption of energy and raw materials and to
Slide 13: Plastics – Polyamide (PA) Segment: values offered to customers
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Plastics – Polyamide (PA) Segment: Grupa Azoty’s values offered to customers In response to environmental protection trends prevailing in Europe and growing customer expectations, Grupa Azoty will ensure access to green products, such as recycled polyam
Slide 14: Polyolefins: establishing ourselves as Europe’s major polypropylene producer
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Polyolefins: establishing ourselves as Europe’s major polypropylene producer Grupa Azoty is implementing one of the largest capital investment projects in the European chemical industry, expected to position Poland among Europe’s leaders in polypropylen
Slide 15: Polyolefins Segment: values offered to customers
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Polyolefins Segment: Grupa Azoty’s values offered to customers From the perspective of customers, the location of the segment’s production in Poland and and the proximity of the German market will translate into prompt deliveries, easy access to technic
Slide 16: Tech Grade Urea: maintaining the lead in urea production and portfolio expansion
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Tech Grade Urea: maintaining the lead in urea production and portfolio expansion The Group ranks as the leader of Central Europe’s urea market, controlling nearly 35% of the region’s total production capacity, and NOXy market, accounting for approximate
Slide 17: Tech Grade Urea: values offered to customers
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Tech Grade Urea: Grupa Azoty’s values offered to customers Having established itself as Europe’s leading and Poland’s only producer, Grupa Azoty is able to provide Polish customers with easy access to high- quality products The Group’s priority is to ma
Slide 18: Pigments Segment: maintaining customer trust and brand recognition
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Pigments Segment: maintaining customer trust and brand recognition The Group is the only producer of titanium white in Poland – the priority goal over the Strategy’s time horizon will be to maintain customer trust and recognition of the Grupa Azoty bran
Slide 19: Pigments Segment: values offered to customers
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Pigments Segment: Grupa Azoty’s values offered to customers As the only producer of titanium white in Poland, Grupa Azoty is perceived by its customers as a reliable business partner Its favourable geographic location supports stable working links with
Slide 20: Oxoplast Segment: adjustment to market expectations and regulatory changes
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Oxoplast Segment: adjustment to address market expectations and regulatory changes Given the Oxoplast Segment’s exposure to changes in the regulatory framework, especially those pertaining to plasticizers, Grupa Azoty keeps monitoring market needs on an
Slide 21: Oxoplast Segment: values offered to customers
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Oxoplast Segment: Grupa Azoty’s values offered to customers A priority for the Group is to forge long- term partnership-based relations with customers and uphold its reputation of a reliable business partner It is vital for Grupa Azoty to maintain its p
Slide 22: Energy: journey to become carbon neutral by 2050
MANAGEMENT STRATEGY BASED ON BUSINESS SEGMENTS Energy: Important stage of Grupa Azoty’s journey to become carbon neutral by 2050 The primary objective of the Energy Segment is and will be to support Grupa Azoty’s core business by providing energy carriers powering its chemical processes and by suppo
Slide 23: ‘Green Azoty’ Strategic Corporate Project
03 ‘GREEN AZOTY’ STRATEGIC CORPORATE PROJECT
Slide 24: ‘Green Azoty’ as the cornerstone of Grupa Azoty’s ESG Strategy
‘GREEN AZOTY’ STRATEGIC CORPORATE PROJECT ‘Green Azoty’ as the cornerstone of Grupa Azoty’s ESG Strategy Grupa Azoty’s new business strategy is driven by the energy transition to address climate change. Regulatory changes are seen as an opportunity to take action aimed at cutting harmful environment
Slide 25: Decarbonisation programme as a way to slow down climate change
‘GREEN AZOTY’ STRATEGIC CORPORATE PROJECT Decarbonisation programme as a way to slow down climate change Our Group understands the gravity of climate change and environmental degradation, which present a major threat to Europe and the whole world. Being an important player of the chemical industry,
Slide 26: Grupa Azoty as a green energy producer
‘GREEN AZOTY’ STRATEGIC CORPORATE PROJECT Grupa Azoty as a green energy producer By 2030, Grupa Azoty will seek to implement technological solutions harnessing renewable energy, including solar PV, wind, biomass and waste heat from process units. These investments and upgrades will enable Grupa Azot
Slide 27: Actively participating in the development of Poland’s hydrogen market
‘GREEN AZOTY’ STRATEGIC CORPORATE PROJECT Actively participating in the development of Poland’s hydrogen market The largest hydrogen producer in Poland and a major one in Europe, Grupa Azoty plans to actively engage in advancing the hydrogen market over the coming years and to participate in the del
Slide 28: Implementing R&D projects aligned with the European Green Deal
‘GREEN AZOTY’ STRATEGIC CORPORATE PROJECT Implementing R&D projects aligned with Future – beyond objectives of the European Green Deal the Long-Term Investment Plan: Hydrogen Fertilizers CCS project Adapting the ammonia unit to receive ‘blue’ hydrogen Biodegradable fertilizer streams from the PDH un
Slide 29: Financial Strategy
04 FINANCIAL STRATEGY
Slide 30: Strong EBITDA margin and dividend paying capacity
FINANCIAL STRATEGY Strong EBITDA margin and dividend paying capacity Grupa Azoty’s new strategic plans led to a review of the existing corporate indicators to make sure they accurately measure performance against the Strategy. The indicators provide an appropriate benchmark, reflecting current expec
Slide 31: Ensuring financial security and access to green project funding
FINANCIAL STRATEGY Ensuring financial security and access to green project funding Delivery of the Strategy will require adequate, stable sources of funding. Given the significant pipeline of strategic projects (in particular Polimery Police), additional finance needs to be secured for new projects.
Slide 32: ESG Strategy
05 ESG STRATEGY
Slide 33: Sustainable development as a priority over the 2030 time horizon
ESG STRATEGY Sustainable development as a priority for Grupa Azoty over the 2030 time horizon Sustainable development will be the Group’s priority over the 2030 time horizon, pursued through initiatives seeking to further environmental protection, social good and responsible corporate governance. In
Slide 34: Grupa Azoty’s declaration on sustainable development
ESG STRATEGY Grupa Azoty’s declaration on sustainable development Climate and environment Sustainable products • We mitigate our environmental impact by cutting • We guarantee efficient, innovative and greenhouse gas emissions and decarbonising environmentally friendly production by production prior
Slide 35: The environment: Energy transition and sustainable products
ESG STRATEGY The environment: Energy transition and sustainable products Sustainable Development Goals Pillar: Sustainable products Pillar: Climate and environment Pillar: Sustainable supply chain Grupa Azoty’s priorities Grupa Azoty’s priorities Grupa Azoty’s priorities Green products Decarbonisati
Slide 36: Community engagement: Education and community dialogue
ESG STRATEGY Community engagement: Education and community dialogue Sustainable Development Goals Pillar: Sustainable products Pillar: Sustainable supply chain Pillar: Immediate environment Grupa Azoty’s priorities Grupa Azoty’s priorities Grupa Azoty’s priorities Sustainable agriculture Shared resp
Slide 37: Corporate governance: Equality, diversity and transparent dialogue
ESG STRATEGY Corporate governance: Equality, diversity and transparent dialogue Sustainable Development Goals Pillar: Immediate environment Pillar: Friendly and safe workplace Grupa Azoty’s priorities Grupa Azoty’s priorities Partnership of equals as a key development Professional development driver
Slide 38: Feedstock Strategy
06 FEEDSTOCK STRATEGY
Slide 39: Feedstock strategy
Feedstock strategy Feedstocks and energy carriers account for close to 70% of our total operating expenses. Given Grupa Azoty’s significant reliance on external suppliers, its key strategic objective in feedstocks is to ensure their secure and uninterrupted supplies, with intra-Group activities gear
Slide 40: Innovation Strategy
07 INNOVATION STRATEGY
Slide 41: Innovation perceived as investment
INNOVATION STRATEGY Innovation perceived as investment Grupa Azoty perceives innovation-oriented projects as a remedy for regulatory changes and environmental trends as well as an opportunity to create competitive advantage. Exploration of the market with innovation in mind is done assuming specific
Slide 42: Operational Excellence Strategy
08 OPERATIONAL EXCELLENCE STRATEGY
Slide 43: Operational excellence strategy
OPERATIONAL EXCELLENCE STRATEGY Operational excellence strategy Logistics At Grupa Azoty logistics is an integral part of the supply chain, encompassing planning, management and control of material flows with related information and capital flows. • The overriding goal of logistic operations carried
Slide 44: Grupa Azoty 2030 summary: mission, vision and targets
Mission 2030 Vision 2030 In harmony with the environment, we manufacture Grupa Azoty is a supplier of fertilizers, plastics and chemical effective solutions and a reliable products. We improve the well- manufacturer of fertilizers, being of people who live in plastics and green chemical Europe and a
Slide 45: Disclaimer
Disclaimer This presentation is for information purposes only and does not purport to provide a vary from that described herein. There are many factors that are unpredictable and unknown complete and comprehensive financial or commercial analysis of the Group, nor does it to Grupa Azoty, remaining o
Slide 46: Grupa Azoty locations
Tarnów Puławy Police Kędzierzyn-Koźle Polimery Police Grzybów Tarnów Gdańsk