Kghm Polska Miedz Sa Ord

and welcome to the conference devoted to discussing the results of the KGHM group for the first quarter of 2026. The results are going to be presented by Mr. Remigiusz Paszkiewicz, President of the Management Board, and Amna Sobiawej-Khodorkiewicz, Vice President of the Management, Miroslav Laskowski, Vice President of Production, Piotr Krzyzewski, Vice President of the Management Board Finance, and Zbigniew Brya. Vice President for Development. We also have Mr. Janusz Krzysztofek, Director of the Investor Reactions Department. I would like to tell you that our conference is transmitted online, and during the second part we'll have a Q&A, and you'll be able to ask questions here from the room, but you can also ask questions by sending them to the email address er.kjjmp.org. Also, in the results section, all the questions and results will be published. Now, Mr. Paszkiewicz will take the floor. Ladies and gentlemen, welcome. I would like to welcome you all, and I would like to welcome all our online audience. Ladies and gentlemen, well, let me start with the following statement. We know the figures very well. We know the results of the entire KJJ group. For the first quarter, I would like to discuss several aspects of these results, especially the macroeconomic environment in which we obtained record high, very good results that we have not witnessed for even a decade of our activity. As far as the economic factors go, I would like to say that we did have very high levels of volatility and lack of stability in the market.

We have not faced that since 2008. New war that affected the prices of energy factors, especially gas.

Additionally, uncertainty regarding further Fed activities regarding the change of the chief of this committee and these changes also affected the prices of the American dollar and we know that the American dollar is the basic in the market of copper and precious metals. When the war started, gas prices went up, and also we needed to adjust metal prices. As a result, the demand for investment gold rose, and I'm talking about... coins and about bars, and central banks also were engaged in the prices, but also private and public investors affected this demand. As a result, precious metal prices, especially silver, went up. And in our case, it is very, very important because we are the second greatest producer of this metal in the world. And this trend of the high prices of metals, because copper, after the adjustment, actually go back to the high levels, was maintained till the end of Q1. As far as our activities go, how did we react in this situation? First of all, we pursued very feasible, very reliable sales policy. We do have increased inventories, but we also had that in the Chinese copper exchange. So we were very conservative and basically all the players in the world pursued this conservative action, but the demand did not decrease. So, very conservative, very reasonable sales policy. Next. Our results are due not only to the very conducive market, but also better compared to the previous year and previous quarters, better operational and course activity. And here I would like to mention energy factories. When the prices of gas increased, We, for example, switched off our gas dependency and we used energy from the network, from the grid, and as a result we compensated our costs because we only faced a very small increase in the energy practices compared to the last year. And I'm talking about single millions of Polish zlotys compared to the entire pool of costs for energy, for gas, and other fuels. Next, we started using the opportunities offered by the market. So we used the local content, and we are the leader in Poland as far as cooperation with companies and businesses and suppliers go, and also other entities whose services we are using in Poland. we decreased the cost of materials and services, not only because we obtained better prices, but because of the decreased use. And we managed to do that. We were successful in this area despite the fact that the production levels remained the same. As far as the production level goes, it's 8% increase in the payable copper production. In the entire group, we faced a production that was higher by 4%, and the cost side was very well controlled. And even though due to natural reasons and certain factors related to the natural causes, we had a certain volatility in our assets. We did have a 4% increase in the production of stable copper in the grid. So, as a summary, our adjusted EBITDA was over two times higher compared to Q1 last year and three times higher profit for the period compared to the last year and these are record high results starting from 2014 and 2012. So, for over a decade KJHM group has not had these results and I'm talking about the contribution of international assets as well. So, record high results. for over a decade and now I would like to give the floor to Mr. Przyzewski who is going to comment on the financial side and maybe he will talk about more details about the costs and inventories and then I will give the floor to Anna Sobiorek-Kozakiewicz and other vice presidents of the management board so that they can talk about details about our production and development and our international assets. So that will happen in a minute. And now, Vice President. Ladies and gentlemen, welcome. Before I move on to my part, I would like to give you a couple of words of introduction. I'm going to talk about finances. If I were to list three features that a company does in Q1 and that contributed to these record high results, I would say that first, monetization of resilience and we've been talking about that for a long time we've been building this resilience for a long time and we've been doing a lot in that direction and this quarter showed us that we are very well prepared and that we can find our place in this market very well and the second feature the second aspect and I'm sure that you know that the fast is going fast the world is going faster developing faster is we have actually face that as well, and we need to react in a very rapid way. This volatility, this changeability happened, and there were various changes in the world, but this is becoming something normal. This requires resilience from us, preparation from us, but also flexibility and fast decision-making. And we actually face that every day. We make decisions, hundreds of decisions every day, and also through the prism of certain financial aspects. And the third feature may be more personal. I feel like this is an annual conference, not a quarterly conference, because for the first three months we faced numerous, numerous events, and probably they would be enough for an entire year, a quarter. But if we... What you look at single month, January, as Mr. President said, the 29th of January, historical high prices of copper, 14,500 gold. $120,000 and $5,100,000 and silver also record high prices so January and February these were the months that were the points that were optimum for us and from hindsight I could say that these were perfect moments to implement our sales policy and that was the positive information, but negative information in Poland, energy prices were very high in January, not much sunlight, not much wind, very high cost of generating energy, and in a minute we are going to show you that this did not affect negatively our company, and actually we were able to manage our sources of energy very well, and we did not increase our cost base, but actually we used this momentum to optimize our production, and I'm going to show you the production cost in a minute. February, on the one hand, this is winter, obviously, but it surprised us, and it affected our logistics, also from the harbor side, but also we had different challenges in and our railway logistics as well and road logistics as well. And also Mr. President said that we had certain shifts in inventories. However, our deliveries and sales to the customers were successful. We were able to, for example, use railway transport instead of marine transport. So the customer is the most important thing for us. So we tried to focus on that and we tried to address these changes in the environment and we tried to achieve timely delivery, so that's a good thing. And another thing that happened in February, and we discussed that with Mr. President, we visited Denmark in February, and we signed an agreement with one of our NKD. This is a producer of cables. This is one of our customers. This is one of the first agreements that we signed, and this is a special agreement. Why? Volume. five to seven billion euros. This is the value of the agreement, of the contract. And the second element is this is a 10-year contract. So from the point of our strategy and geopolitics, I can say that in five, seven years, we are going to be able to supply this And we are a mining company. We are a metallurgical company. We produce the wire rod, copper wire rod, and we are a producer that can answer this demand. And from the time perspective, long-time perspective, this is something that we can use to build our monetization and value. And in the next quarter, we are going to implement that, and we are going to act accordingly. in this way with our strategic customers and March rollercoaster every day basically something happened the homeless was closed the homeless trade was closed then this affected the prices of gas it grew two times and again in our financial metrics there's no negative impact last year we decided to secure gas prices and this year also we made some transactional decisions and that secured us from the financial side and as a result we safely navigated this conflict and from 14.5 to 1200 prices dropped and you can see this enormous changeability and volatility that accompanies us day by day moment by moment hour by hour maybe let me tell you something about energy prices and this energetic aspect in March. In March, SE, our energy operator, access to join the DSR system and we receive assets because our energy grid actually provides energy to the network. We had a test. This test was very successful, and we were remunerated for that, and this is something that shows that the energy aspect is very important for us, and our energy generating sources are very important. We manage that very well, and we are very flexible in a short period of time. We can react to the changing environment, and last but not least, as far as energy goes, This pertains to the future and also it relates to the European Commission decision from the 23rd of December and non-ferrous mining can actually receive remuneration from the energy high sectors and energy intensive sectors. Poland is obliged by the European Commission to implement that by the 30th June. And as far as finances go, this should be related, we hope, with additional 100 million every year that we should receive. And so far, we did not have this element. So this is a new element that will be very important for us. So if I may summarize all this in one sentence, this quarter in one sentence, I would say that we do not manage a company just quarter by quarter. We focus on a long time horizon and we probably are going to multiply this quarter by four, but maybe you think if this is possible, probably not, but there are so many factors to take into account. I would like to say that this Q1 contributed to these results, business results, and that's why we have this record high performance. We are very positive about the quarters to come. And now I would like to give the floor to Anna Sobieto-Krasakiewicz.