Alchemia SACapital Group

Grażyna Wanda Karkosik

SKOTAN SA

Pioneer Pekao IM SA

Others

Roman Karkosik

Poland

Export

ALCHEMIA is a young and dynamically growing group of companies, which operates in the sector of niche steel products, including seamless pipes and tubes, forged ware, forged and rolled ware, as well as rolled ware. The group made its debut on the stock exchange on 19th May 1998.

Structure of the Group of Companies

Employment: 2 thousand peopleRevenues: PLN 670.6 million (2010)Capitalisation: PLN 1.8 billion (July 2011)

Alchemia SA was founded in 2005 as a result of the acquisition of Huta Batory assets (Batory Steelworks). Subsequently, the Group developed consistently with the aim of attaining a strong position in the steel sector of the Polish and European markets. The following years saw further growth of Alchemia SA, with Laboratorium Badań Batory (Batory Research Laboratory) and Batory Serwis (Batory Ser-vice) taken over in 2006. In 2007, Huta Bankowa (Bankowa Steelworks) and Kuźnia Batory (Batory Forge) joined the group. The year 2011 witnessed further milestones in the history of the Group, necessary for it to become independent of the market whims, namely the incorporation of the Rurexpol pipe manufacturer from Częstochowa and Walcownia Rur Andrzej (Andrzej Pipe Mill) from Zawadzkie.

Sales structure: 45% of the revenue of the Alchemia Group comes from the domestic market, while 55% from export, with more than a half of products exported to the European Union. The main markets include: Ger-many, Denmark, Sweden, Norway, the Czech Republic, Austria, Slovakia, Hungary and Romania. Products are also sold to the following markets: Slovenia, Serbia, Croatia, Turkey, Iran, Egypt, Madagascar and Thailand.

About the company

Sales structure in 2010

Building a strong group of companies in metallurgic industry

1998 2005 2007 2008 2009 2011

Debut on the Warsaw

Stock Exchange

Acquisition of the Batory Steelworks

Beginning of a metallurgic holding company

formation

Purchase of the Batory Forge and the

Bankowa Steelworks

Revenues at a level

of approximately PLN 1 billion

Restructuring of companies from the group

Acquisition of Rurexpol

and the Andrzej Pipe Mill

Alchemia SA

Annual production capacity (thousands of tons)

Shareholders of Alchemia SA

Batory– steelworks

Batory– pipe mill

Rurexpol HutaBankowa

Kuźnia Batory

WRA

140

7570

140

25

70

Huta Batory

100%

Batory Serwis

100%

Laboratorium Badań Batory

100%

Rurexpol

100%

WRA

100%

Huta Bankowa

100%

Kuźnia Batory

100%62.07%

12.29%

5.02%

10%

55%

45%

10.88%

Production of seamless steel pipes in Poland in the years 2007–2010 (thousands of tons)

HUTA BATORY is among the major steel plants throughout Europe. Made of best-class alloys, seamless steel pipes by Huta Batory are intended for companies operating in the power industry, in crude oil and gas processing, in the production of machines, tools and arms, as well as in the construction of power plants (including solar power plants). Huta Batory is one of only few producers of P91 steel for the power industry.

Product assortment includes:• large-diameter seamless steel pipes (Ø219-508 mm)• smooth line pipes• structural tubes• ship pipes• boiler tubes• structural tubes intended for machining• drill pipes intended for the primary industry• pipes intended for the construction of crude oil and gas pipelines• seamless boiler pipes in X10CrMoVNb9-1 (P91) and P92 grades• casing pipes• spigot drill pipes

Huta Batory specializes in large-diameter seamless pipes (Ø298–508 mm).

Huta Batory also uses 300 types of steel to manufacture ingots, which in turn are used to produce end-products such as bars, forgings and sheets.

Types of steel used:• carbon and alloy constructional steel• boiler steel• ship steel• carbon and alloy tool steel• spring steel• steel with special physical properties, abrasion-resistant (heat-resistant,

stainless)

Production quality and specialist back-up facilities constitute an asset of the Alchemia Capital Group.

3

Capital Group

2007 2008 2009 2010

214193

151 158

alchemiaGrupa

KUŹNIABATORY

alchemiaGrupa

HUTABANKOWA

alchemiaGrupa

HUTABATORY

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

RUREXPOLalchemia

Grupa

Up to 60% of products by the Rurexpol steelworks is exported, amongst others to Germany, Italy, the USA, and the United Arab Emirates.

RUREXPOL is a manufacturer of specialist pipes of basic diameters 121-298 mm used mainly for carrying and exploiting crude oil and gas.To meet the needs of power industry, Rurexpol produces alloy and structural tubes, which are machined at later stages to make ele-ments of hydraulic servo-motors and load-bearing structures, like halls. Products supplied by the company were used to construct such facilities as the Legia stadium in Warsaw, interchanges and motorway overpasses.

Product assortment includes: • casing pipes, 5 to 9 5/8” in diameter• boiler tubes, 139 to 273 mm in diameter• pipes for machining, 121 to 298 mm in diameter• floor pipes, 168.3 to 273 mm in diameter• structural tubes, 121 to 273 mm in diameter• line pipes used in gas engineering, 168, 219, 273 mm in diameter• pressure line pipes for general purposes, 121 to 273 mm in diameter

Sales structure in 2010

4

Alchemia SA

alchemiaGrupa

KUŹNIABATORY

alchemiaGrupa

HUTABANKOWA

alchemiaGrupa

HUTABATORY

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

RUREXPOLalchemia

Grupa

Poland

Export

60%

40%

WALCOWNIA RUR ANDRZEJ (WRA) manufactures hot-rolled seam-less pipes of small diameters (21.3 mm to 114.3 mm) and 2.0 to 10 mm in thickness. They are used in gas engineering, construction, power, chemical and shipbuilding industries, as well as to build machines for petrochemical purposes.

Product assortment includes:• structural and line tubes for general purposes• pipes for cold treatment (magnifying glasses)• boiler tubes of the 1st and 3rd grade of requirements • pipes for fla mmable gases• pipes for particular purposes (for shipbuilding, for threading, etc.)

A quarter of the mill’s production is exported, mainly to Germany, Spain, Slovakia, and the USA.

The laboratories of the pipe mill make chemical analyses of steel and cast iron, as well as carry out metallographic examinations, and tech-nological and mechanical tests. They are recognised by the Polish Register of Shipping, Lloyd’s Register of Shipping, and the Office of Technical Inspection.

Sales structure in 2010

5

Capital Group

alchemiaGrupa

WALCOWNIA RURANDRZEJ

WRA is the only producer in Poland of hot--rolled seamless pipes in small diameter from 21.3 mm to 114.3 mm.

Export

Poland

75%

25%

HUTA BANKOWA is Poland’s biggest manufacturer of railway wheel tyres and the owner of a state-of-the-art rolling mill for production of forged and rolled rings, used by transport companies. It offers products of the highest quality, indispensible in shipbuilding and power industries, including wind power engineering.

Product assortment includes:• tyres for rail wheel sets used in trains, trams and underground trains• forged and rolled rings• round bars 90-250 mm in diameter• equal-sided angles 200x200 mm• bulb bars for shipbuilding• rolled billets and blooms for forging purposes• square rods for gas bottles

More than a half of the steelworks’ output is exported, amongst others to Germany, Austria, the Czech Republic, and the Benelux.

The central laboratory of Huta Bankowa is highly recognised by the central laboratory of the Office of Technical Inspection in Poznań and by other classification societies like GL, LR, PRS, DNV, BV with regard to the capability of conducting comprehensive tests of metallurgic products.

The scope of quality tests of metallurgic products includes:• chemical analysis of carbon and alloy steel with the use of a spec-

trometer • mechanical properties of metallurgic products • macroscopic and microscopic metallographic examinations and

thorough metallographic tests with the use of optical microscopes.

The share of Huta Bankowa in the

domestic market of forged and rolled tyres

and rings is as high as 100%

Annual production capacity of long

products in thousands of tons

6

Alchemia SA

Huta Bankowa Huta Stali Jakościowych Stalowa Wola

Moravia Steel

300

130

120

alchemiaGrupa

KUŹNIABATORY

alchemiaGrupa

HUTABANKOWA

alchemiaGrupa

HUTABATORY

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

RUREXPOLalchemia

Grupa

KUŹNIA BATORY manufactures forged products, and, as the only company in Poland, produces high-quality ESR steel. Steel elements are made for example for power industry. They are characterised by high metal-lurgic purity. The company has more than a 50% share in the market of forged bars of dimensions of 30-650 mm and a share of almost 30% in the market of forged shapes (weight percentage).

The forge is equipped with a modern flat-die forging press providing a pressure of 20MN, and swaging machines which cannot be found anywhere else in Poland.

Product assortment includes:• bars forged by means of swaging machines (round, square, hexago-

nal, flat) • round and square bars forged by means of the press (made of con-

struction, carbon, alloy and tool steel; designed to work in cold and hot conditions and for special purposes)

• flat bars and blocks forged by means of the press• blocks with punched openings• forged rings• sleeves• flat-die shapes forged in accordance with drawings

Services offered:• forging• heat treatment• machining• electro slag remelting

Annual production capacity in Poland

(in thousands of tons)

More than half of the products are exported

to e.g. Turkey, Germany, the USA, Slovenia,

Austria, Great Britain, Norway, Sweden.

Capital Group

CELSA Huta Ostrowiec

ZARMEN Zdzieszowice

Kuźnia Batory HSW Kuźnia Stalowa Wola

50

32

25 25

alchemiaGrupa

KUŹNIABATORY

alchemiaGrupa

HUTABANKOWA

alchemiaGrupa

HUTABATORY

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

alchemiaGrupa

RUREXPOLalchemia

Grupa

ALCHEMIA SAul. Łucka 7/9

PL 00-842 Warsawtel.: +48 22 658 64 52fax: +48 22 658 64 55

Co MMErCIAL offICEtel.: +48 32 77 22 190tel.: +48 32 77 22 191fax: +48 32 77 22 199

e-mail: chorzow@alchemiasa.pl

www.alchemiasa.plwww.alchemiasa.pl