Kghm Polska Miedz Sa Ord

Good morning, good afternoon, and welcome to the discussion of KGHM post-committee HSA results for 2024. The results will be presented by the management board, CEO, Garza Sivko, deputy, with us today is also director Janusz Krystosiak, the investor relationships director who will be moderating the Q&A session right after the presentation of the results. Our conference is being streamed online. You can ask your questions both from the room as well as via email to er at kghm.com. Over to the CEO, Mr. Szydło.

Good afternoon, ladies and gentlemen.

I hope you can hear me. Ladies and gentlemen, an annual conference, a conference presenting the annual results is an opportunity for us to present the annual results, but also to wrap up the year. I remember our conference a year ago where we discussed the results for 2023. And it's not a secret, no one's gonna be surprised that in discussing the results for 2023, we discussed the results of KGHM, but those were not the results of the work of this management board for 2023. As for 2024, By and large, we are discussing the results of our own, as we might put it. The results were published yesterday and you're aware of them. And by the way, some comments have already appeared in the media. Let me start on an untypical note and start with what the conference looked like a year ago. A year of the management board's work has passed in this composition and in retrospect to allude to the conference that was held in April 24, It will, I think, be a good start to also make a resume of this Board's work and also to present what we were grappling with, what we have identified and what sort of analyses we've performed in the company and how we approach the management of such an organization as KGHM, POSCOM HSA. An organization which in terms of the raw materials, the commodities, is important not only for the region, for the country, but also for the EU or Europe as a whole. Let me just remind you that KGHM when it comes to the primary copper it represents 50% of the EU output which in today's times of uncertainty and the attention put to commodities especially critical commodities and strategic commodities makes a huge difference who are we what are we responsible for and how the responsibility is distributed when it comes to the commodity to Poland's and EU's commodity strategy What did we deal with before we pass on to the results? What did we deal with over the last year? Obviously, it should come as no surprise to anyone, we had to review the company's past and what the ongoing most important problems were. We have prioritized those problems and dealt with them in such a way as to catch up with the time and resolve those issues that were the most urgent ones. And with your permission, let me come back to the conference for 2023 and where we were. Of course, physically we were here in the same conference room, but in terms of our thoughts, we were at the company premises owing to some problems that required very urgent resolution. Without getting into details, for obvious reason, also not to abuse your time, But the problem of water-related threats in KGHM was a problem which in the months of March, April, May and even June was a priority problem that we were dealing with. especially Mr. Laskowski's departments responsible for production. Most companies like ours deal with natural resources. In our case, it was the issues connected with the Oder River and the Golden Algae. KGHM was not responsible for those crises but KGHM is an entity that uses natural resources and we had to be very careful and meticulous to ensure the top environmental safety and security we confronted the status quo in the form of significant filling of the hydrotechnical structure the iron bridge at almost 100 percent of its capacity that's to say at times when kgm should have built a retention facility This year, we will see what the next month shows. We probably have a hydrological drought, low levels of water in the Oder River, so we have to be prepared not to add in any way to possible negative natural phenomena, not to add additional risks. connected with the possible discharge of additional water from technological processes, from water removal from the mines to the other river, which is the natural body of water used by KGHM both when it comes to water intake and discharge. How does it look in brief? Well, in the winter months, the flow of water in the Oder River and the potential changes in the salinity of the Oder water is not very sensitive to whatever is going on at the entities that use those resources. However, in the month In the summer months this body of water is potentially very sensitive to its use. Briefly speaking, spring and late spring and summer months is the time when you need to build technological retention in such a way as to be prepared for significant constraints, especially when it comes to discharge. I've been talking about it quite long, briefly speaking, as compared to last year when our thoughts, well physically we were at the conference and with our thoughts we were at the company and we took a number of action items connected with the retention of water underground including also the restoration of the correct technical condition of the discharge infrastructure to build additional retention facilities where possible to avoid possible negative consequences for the water removal from the mines. I mean the inflow of water from the mountain areas is what affects KGHM in particular. This year we are in such a situation that the retention facility has been built in such a way that we are prepared for such scenarios where we can limit the water discharges to such levels that will in no way impact the environment of course this has also been subject to audit and the further part of the process and the and the answer to the questions why that had happened and what to do to avoid the recurrence of such situations going forward and that such a large entity sk ghm is not prepared or should not be prepared for its operations in the spring and summer months are underway. This is the first issue that has taken a lot of time but it was finalized. I mean it will never end because the proper care for the appropriate balance of technological water across the seasons is a phenomenon that will always take place and you always have to pay attention to that but the question that needs to be answered is why It had happened otherwise previously is a question to which the answer will be provided very soon.