Information on the impact of the invasion of Ukraine by the Russian Federation on the Issuer’s operations

The Management Board of “Orzeł Biały” SA (hereinafter: the “Issuer”, “Company”) informs that in connection with the attack of the Russian Federation on Ukraine, it has identified new risks in the Company’s environment, which may have a potential impact on the Company’s operations, in particular on the financial results and business development prospects.


An important factor directly affecting the Issuer’s operations is the high volatility of natural gas prices and the risk of limiting the supply of this raw material. The growing gas prices will significantly affect the financial result of “Orzeł Biały” SA in the short term. As of the date of this report, due to the dynamics of prices and the unpredictability of the factors that shape them, the Issuer cannot determine the scale of this impact. The company constantly monitors the situation regarding gas supply and its prices and considers potential scenarios for further development of the position in the gas market.


The activity of “Orzeł Biały” SA may also be influenced by the situation in the transport industry. Due to the disruption of international supply chains and the outflow of Ukrainian employees from the transport sector, the Company expects a significant increase in transport costs in the foreseeable time horizon. The company cooperates with partners on an ongoing basis in this respect in order to ensure cost-effective logistics of goods.


The price of crude oil is also a factor directly related to global logistic processes, affecting the Issuer’s operations. The increase in crude oil prices and strategic political decisions of the governments of individual countries may affect the costs of transport services, logistics of goods, and the overall economic environment of the Company.


The unjustified aggression of the Russian troops and the related sanctions and restrictions on the flow of raw materials and goods also affect the supply of batch additives used in the Company’s production processes. Eastern markets (Ukraine, Belarus, and Russia) are important sources of raw materials such as anthracite and iron scrap. The Issuer cannot rule out that due to the current restrictions on the import of these raw materials, prices will increase and their supply will be limited, which will directly translate into the Company’s operations. “Orzeł Biały” SA monitors the situation on the market of charge additives on an ongoing basis and is in constant contact with key suppliers of raw materials.


The Issuer cannot rule out that the conducted hostilities and applied economic sanctions will impact the recipients of the Issuer’s goods and their financial liquidity—several entities from the battery industry actively exported products to the East. With the collapse of the markets, restrictions on the flow of goods, and the termination of production in Russia by some automotive concerns, there was a risk of loss of financial liquidity or delays in the payment of receivables by the Company’s customers present on the Russian market.



legal basis:

Art. 17 sec. 1 of MAR 

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