Questions and answers
In order to provide our shareholders and potential investors with the best possible access to information about the Company, we invite you to ask questions to the following address: firstname.lastname@example.org. The most interesting questions, along with answers, will be published on the website of Investors Relations.
QUESTIONS AND ANSWERS
Publication of annual forecasts – why is it not done by the Company?
Answer: Consciously we decided not to publish forecasts as a rule of our functioning on the market. We do not want to belong to a group of companies which publish forecasts of bewildering revenues only to announce their decrease before a publication of a quarterly report. In a market environment there are so many variables independent of the Company (which has been demonstrated this year) - EUR exchange rate, market’s reaction to the crisis etc. – that a margin of error seems too big. We do not want to mislead the shareholders. We hope that the market will notice our willingness to play fair – we do not announce an issue before specifying acquisition/ investment plans (the third line for manufacturing PE stretch film, German acquisitions), we do not publish forecasts. We simply work to gain profit and I am certain that the market will appreciate such a mature approach.
How do oil prices affect the EBIT yield in the mid- and long term? Can the Company transfer increasing raw material prices to customers or does the competition basically prevent it? Can ERGIS Group buy raw materials more cheaply (by how much?), using the scale of the included German companies?
Answer: Co-relation of oil prices and materials is not proved; in some sectors, where the Company operates, such transferring is possible, in others unfortunately not. The Ergis Group naturally takes advantage of the fact that due to the acquisition of the German companies it enjoys a better negotiating position while purchasing raw materials.
How does a EUR exchange rate affect EBIT? – on one hand prices of imported raw materials are linked with a currency exchange rate, on the other hand the Company exports its products. Moreover, there is also a trade exchange with the Germans. What is on balance significance of the exchange rate for the EBIT yield currently?
Answer: The current result is positive. The Company generates much higher operational profits – with the weakening zloty currency exchange gains occur.
In order to avoid any doubts and to present the Issuer’s full position on the matter, ERGIS S.A. hereby informs and explains that all and any documents, reports, financial information, data presentation and other materials are posted in Polish as well as in English versions, and the Issuer, always acting in good faith, assures that it makes every effort to have the ordered and published translations absolutely coherent with the original (Polish) version of the documents.
However, should there be any discrepancy or incoherence between the Polish version of the document and its English translation, ERGIS S.A. explains that the leading and the correct wording and version is the text prepared and disclosed in Polish.