1. Introduction
The Group is one of the leading producers of chemical raw materials in Central and Eastern Europe. Its registered office is in Poland and the main production facilities in Poland and Czech Republic. According to IHS Chemical data, the Group is a leading European producer of synthetic rubber and a leading producer of expandable and extruded polystyrene. Integration of the Group with raw material suppliers ensures a stable source of raw materials such as C4 fractions, butadiene, benzene and ethylene, which are acquired from local cracking installations. The Group has a broad and diversified customer base from different industries, including in particular from the automotive, construction and packaging industry. The Group has cultivated long-term relations with its key customers, including market leaders, for many decades. By using its proprietary protected technologies the Group has transformed over the years into a modern global producer of synthetic rubber, at the same time developing in other business segments, both through organic growth and its own knowhow and acquisitions. Since 2004 the Company’s shares have been listed on the Warsaw Stock Exchange (WSE). As at 31 Dec 2016, the Company’s market capitalization was PLN 6,113 million.
The Group’s sales revenues were PLN 4,755 million for the year ended 31 December 2016, while its EBITDA result was PLN 662 million. The Group’s business is divided into four main segments: butadiene and rubber (“Synthetic Rubber Segment”), styrene and its derivatives (“Styrene Plastics Segment”), dispersions, adhesives and latex (“Dispersions, Adhesives and Latexes Segment”), and plant protection chemicals (“Agro Segment”). The Group also derives revenues from ancillary activities related to production and distribution of heat from its own power plants and revenues from electricity trading and distribution (“Other Operations”, including “Utilities” which are presented as a separate segment in the consolidated financial statements). Other Operations comprise also revenues and expenses not allocated to other segments.