Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange, d. d., Article 124 and Article 130 of the Financial Instruments Market Act (ZTFI-1, Official Gazette of the Republic of Slovenia, No. 77/2018) and Articles 7 and 17 of Regulation (EU) No. 596/2014 of the European Union (Market Abuse Regulation - MAR), the company CINKARNA Celje, d.d., Kidričeva ulica 26, 3000 Celje, hereby releases the Unaudited report on its performance for the period january-march 2026.

At a time when the world increasingly depends on sustainability and energy efficiency, and Europe seeks greater strategic autonomy, it is becoming evident that modern society largely relies on materials that often go unnoticed, yet have a significant role in the quality, durability and lifespan of products that surrounds us. Materials and chemical products developed in accordance with high European standards are essential for infrastructure protection, energy-efficient construction, improving the durability of coatings, and supporting a wide range of industrial and everyday applications. Preserving domestic expertise and production is therefore of strategic importance, both from the perspective of sustainability and the resilience of European supply chains.

As one Europe’s key producers of titanium dioxide and specialised chemical products, Cinkarna Celje contributes through its development activities, expertise and production to the creation of higher-quality, more resilient and longer lasting solutions for numerous industries, both domestically and internationally.

“In the first quarter of this year, Cinkarna Celje generated sales revenue of EUR 50.4 million, of which EUR 47.1 million was generated in foreign markets. Operating profit amounted to EUR 3.7 million, representing 46% of the operating profit achieved in the same period of 2025, when it totalled at EUR 8.1 million. Net profit for the first three months of 2026 reached EUR 3.1 million, representing 48% of the 2025 net profit, when it amounted to EUR 6.3 million. EBITDA reached EUR 7.4 million and accounted for 14.6% of sales revenue achieved. Compared to the previous year, EBITDA was 36.9% lower,” said Aleš Skok, President of the Management Board of Cinkarna Celje.

Market conditions remained challenging in the first quarter of 2026, as contractual TiO prices in Europe stabilised following a series of price reductions in 2025. While this marked the end of the price erosion cycle, it did not yet signal a genuine market recovery. Aleš Skok further highlighted: “Towards the end of the quarter, costs of sulphur, sulphuric acid and energy began to rise significantly due to escalating tensions in the Middle East, placing additional pressure on the cost structure of sulphate-process producers.”

Compared to the same period last year, the company’s performance was more modest; however, it exceeded the business plan targets for the reporting period. The lower result compared to the previous year was primarily influenced by both lower sales prices and reduced sales volumes of the company’s core product. Considering developments in the global economy, geopolitical circumstances and market conditions in the titanium dioxide pigment market, as well as the results of industry peers, Cinkarna Celje assesses the result as solid and above both plans and expectations.

A structured approach to identifying and monitoring sustainability impacts, risks and opportunities

In 2025, the Company continued to enhance its sustainability reporting, which is being progressively integrated into its governance and business processes. This ensures compliance with European requirements while also developing a more structured approach to identifying and monitoring sustainability-related impacts, risks, and opportunities. The Sustainability Statement has been prepared in accordance with the CSRD Directive and the European Sustainability Reporting Standards (ESRS). In its second year of reporting, the Company continues to further develop and deepen its disclosures, building on acquired experience and the ongoing optimisation of internal processes. In 2025, a regular double materiality assessment (DMA) was also carried out, confirming the continued relevance of the identified impacts, risks, and opportunities, as well as their alignment with the Company’s strategy and the expectations of key stakeholders.

“At Cinkarna Celje, sustainability begins in production, through efficient use of resources, reduced energy and water consumptions, and the reuse of by-products. In 2025, we further reduced our carbon footprint compared to the baseline year. At the same time, we continued to reduce key emission parameters, such as hydrogen sulphide (HS), sulphur dioxide (SO) and dust emissions, with particularly significant reductions achieved in HS emissions. All measured values remain well below the legally prescribed limit values defined by Industrial Emissions Directive (IED) and our environmental permit (IPPC permit),” emphasised Nikolaja Podgoršek Selič, Member of the Management Board – Technical Director.

She also highlighted: “We consider the sale of 38.4 thousand tonnes of CEGIPS in the first quarter of 2026 to be particularly important. This represents an effective example of closing material loops and industrial symbiosis. By using gypsum generated in titanium dioxide production in the cement industry, we reduce the amount of material disposed of at the Za Travnikom facility, thereby directly extending its operational lifespan. Such approaches confirm the company’s commitment to developing solutions with minimal environmental impact and greater material efficiency in industrial processes.”

As part of its sustainability strategy, Cinkarna Celje was also among the first companies in Slovenia to establish a so‑called Community Advisory Council in 2025 as a structured platform for strengthening dialogue with the local community. Recognised as an important sponsor and donor in the local community, the company is further enhancing open exchange of views, better understanding of industrial impacts and mutual cooperation on topics relevant to sustainable development and quality of life in the local environment.

“In 2025, we held the inaugural and first sessions of Council, both of which were conducted in a very positive atmosphere. We transparently presented all sustainability measures, environmental impact reductions, investments in the local community, and support for young people, sports and socially responsible projects. Emphasis was also placed on our existing activities related to cooperation and communication with local communities. We are already planning the next meeting for June this year,” explained Podgoršek Selič.

As the only producer of TiO in Slovenia and an important participant in European industrial value chains, Cinkarna Celje plays an important role in strengthening European industrial resilience, as stable production of basic materials represents one of the foundations of Europe’s economic and technological sovereignty.

The notice will be published on the Company's website (www.cinkarna.si) from 20 May 2026 onwards, for a period of at least 5 years.