Slajd 1

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Boryszew Group
Impexmetal Group
4Q 06 and 2006 results
March 1, 2007
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Boryszew one of the largest Polish industry
Groups
Boryszew Group includes several tens of industry
companies employing jointly over 7000
people According to Rzeczpospolita Daily,
Boryszew is the best ever investment on WSE,
delivering the return of ca. 8000 Through the
annual sales of PLN 5.4 billion, Boryszew Group
is one of the most important entities in the
Polish economy Boryszew Group in rankings 2nd
place in the list Locomotives of Polish
Economy in 2007 (HomeMarket) 4th place in
Poland, 2nd place in region in Business
Gazelles (PB Daily) 22nd place in TOP 250
Pearls of Polish Economy (Parkiet Daily) 69th
place in 500 List (Polityka magazine) 88th
place in 500 List (Rzeczpospolita Daily) 90th
place in 2000 List and 4th place in
sub-ranking The most dynamic (Rzeczpospolita
Daily)
Sales of Boryszew Group
Feb 18, 2005
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Structure of Boryszew Group by Divisions
the spheres show the size of entities stakes
are presented in summary approach
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Summary of the activities since the beginning of
2006
The year 2006 was marked by the restructuring
process of Boryszew Group, especially of the
non-ferrous metal assets within Impexmetal
Group In the field of the above mentioned
restructuring, to the most important projects
belonged the following ones clearance of
Boryszews equity structure through the
finalization of the redemption of own
shares beginning of the comprehensive and
long-term restructuring in copper division,
which should finally lead to the optimal
utilization of the held assets continuation of
the investment in the line for thin products
with the value of ca. PLN 230 m at Aluminium
Konin - Impexmetal finalization of the
investment in the line for desulphurization of
lead paste with the value of PLN 35 m at
Baterpol the investment allows for full
recycling of lead from batteries divestment
from Kuag Elana purchase of Aluminium Konin and
ZM Silesia shares change of the structure of
interest-bearing debt to improve the financing
conditions restructuring of sales department at
Impexmetal
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Impexmetal consolidated 4Q 06 and 2006 results
The whole 2006 was the best ever year in the
history of Impexmetal Sizable growth in sales was
accompanied by the improvement in operating and
net results in all large Impexmetal Groups
companies As a result of the restructuring and
substantial capex projects, Impexmetal Group
strengthened its position, gaining a solid base
for further development The large increase in
sales was significantly impacted by growing
prices of metals at LME To the significant
positive one-off events belong surplus on the
increase (PLN 12 m) and the decrease (PLN 21 m)
in stakes in Groups companies
Impexmetal cons. 4Q 06 results
Impexmetal cons. 2006 results
belonging to the dominant entity
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Return od Boryszews investment in Impexmetal
Share performance of Impexmetal
Pro-forma pre-tax profit from Boryszews
investment in Impexmetal, calculated as the
difference between current market cap of the held
stake and its value by the purchase price,
amounts to PLN 1 billion, which means close to
quadrupled return on capital employed by
Boryszew The increase of Impexmetals value
resulted mainly thanks to implemented
restructuring process
Return on Boryszews investment in Impexmetal
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Boryszew consolidated 4Q 06 results
Boryszew cons. 4Q 06 results
4Q 06 Boryszew Groups results were significantly
burdened by one-off events connected with the
restructuring provision for the impairment of
assets of Elana Division (PLN 35 m) provision
for Kuag Elana (PLN 11 m) The net result was
additionally impacted by the drop in market value
of the stake in Skotan (PLN 16 m) From the
operating point of view, positive influence
stemmed from aluminium, copper, zinclead and
Sochaczew divisions Kuag Elana and Elana division
provided substantial negative impact
belonging to the dominant entity
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Boryszew consolidated 2006 results
Results in 2006 mean, first of all, the
improvement in profitability of non-ferrous metal
and chemical companies, and on the other side
very soft period in polymers and number of
one-off events Strong increase in sales and
operating results derived from full
consolidation of Impexmetal Group steep rise in
LME metal prices organic sales volume
growth capex in production assets Among one-off
items, the investment in Skotan shares had a
significant positive impact (PLN 56 m) On the
other side, provisions for Kuag Elana and Elana
division influenced the results negatively
Boryszew cons. 2006 results
Boryszew cons. balance sheet items
belonging to the dominant entity
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Boryszew consolidated results adjusted for Kuag
Elana
Cons. 2006 results adjusted for Kuag Elana
The strongest factor that burdened Boryszew
Groups results in 2006 was the German subsidiary
Kuag Elana, which was sold in January 2007 The
consolidated results adjusted for Kuag Elana
(operating results, provisions) show that the
Groups net profit without the German company
would be over 2 times higher in 2006
Boryszew Groups net profit adjusted for Kuag
Elana (pro-forma)
belonging to the dominant entity
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Results of Aluminium Division
Sales volume in 2006 - 12m trailing
In 2006, the Division improved the sales
structure in favour to thin and alloy products
representing higher margins, which directly and
significantly influenced operating
results Concurrently, an increase in sales volume
was recorded Sales value increased additionally
due to the increase of LME prices Outlook for
2007 finalization of the investment in the line
for thin products significant improvement in
operating results further substantial increase
of the share of high-margin products in the
sales structure further sales volume
increase lower raw material and higher
electricity prices the decrease of customs for
aluminium may constitute the additional positive
effect
Divisions EBIT
sum of Aluminium Konin - Impexmetal and NPA
Skawina
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Results of Copper Division
Sales volume in 2006 - 12m trailing
The year 2006 was the best period in terms of
sales and earnings At the similar volume, sales
value increased substantially, mainly due to rise
in LME prices Improvement in profitability stems,
first of all, from the increase of conversion
margins and consolidation projects An additional
positive impact was the increase of domestic
sales in the total sales value Strengthening of
Polish Zloty constituted the negative factor in
terms of export sales Outlook for
2007 continuation of the good situation in
construction increase in sales volume combined
with further increase of the share of domestic
sales
Divisions EBIT
sum of Hutmen, HMN Szopienice, WM Dziedzice
Hutmens consolidated data
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Results of ZincLead Division
Sales volume in 2006 - 12m trailing
In 2006 all entities among this Division improved
its results The improvement in operating profit
resulted, first of all, from the increase in the
production of refined lead at Baterpol, thanks to
the newly launched state-of-the-art line for
desulphurization of lead paste Huta Olawa
Division improved the results thanks to the rise
in (1) sales volume, (2) conversion margins and
(3) growing metal prices ZM Silesia posted a
significant increase in sales of profitable zinc
sheets and wires Outlook for 2007 further
increase in sales, especially in refined
lead improvement in sales of zinc-titanium
sheets improvement in margins through next
investments
Divisions EBIT
sum of Huta Olawa Division, Baterpol, ZM
Silesia the sales volume do not include the
sales of lead paste which was realized by
Baterpol until the beginning of its
desulphurization
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Results of Polymer Division
Sales volume in 2006 - 12m trailing
The year 2006 was marked as one of the ever worst
for polymers At high increases of raw material
prices, there was observed significant rise in
the market supply stemming from the enhancement
of production capacities in Asia as well as in
Europe Consequently, the above mentioned events
resulted in significant drop in conversion
margins The provision for the deprecation of the
assets of Elana Division (PLN 41 m) had an
additional impact on operating results Outlook
for 2007 stabilization of raw material
prices elimination of products which do not
generate satisfying margins, especially the ones
produced from primary raw materials shift to
the production from recycled raw materials as a
result of the above factors, a drop in sales and
collateral margin improvement is expected
Divisions EBIT
without Kuag Elana, i.e. sum of Elana
Division, Elana PET, Elana Energetyka
comparing to the slide No 7, here the provision
is showed in the pre-tax approach
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Results of Sochaczew Division with Nylonbor
Sales value in 2006 - 12m trailing
The year 2006 was the continuation of consequent
and stable development of Sochaczew works Doubled
EBIT is, first of all, a result of the sales
increase and margin improvement in almost all
business lines The strongest lines in 2006 were
automotive, construction materials, packages
and adhesives Outlook for 2007 continuation of
the good situation in construction merger with
Suwary SA to release existing synergies
EBIT
sum of Sochaczew Division, Nylonbor