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1

2003 Financial Statements Audited

Performance in Q1 2004 Better Than Expected

Completion of Flexpol Disposal

Warsaw, April 2004

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2

Changed Disclosure of Flexpol in the Financial Statements

1. December 2003 – Kęty's first official document indicating our plans to dispose of Flexpol over the following 12 months.

2. Move from the full to equity-method consolidation of Flexpol in Kęty's accounts.

3. Effect on Kęty's 2003 and Q1 2004 accounts.

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3

Quarterly Results Confirmed in the Annual Accounts

[PLNm]Preliminary

2003

Actual

2003Change

Sales 740.2 739.4 -0.1%

EBITDA 120.8 122.4 1.3%

EBIT 85.5 85.9 0.5%

Net profit 69.7 69.1 -0.8%

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4

Performance in Q1 2004 Better Than Expected

[PLNm] IQ 2003 IQ 2004 Change

Sales 147.3 177.9 20.7%

EBITDA 25.5 36.6 43.5%

EBIT 16.7 27.5 64.7%

Net profit 15.1 23.9 58.1%

CAPEX 3.8 10.9 286.8%

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5

Extruded Products

20,9 23,4

101,9

80,1

0

50

100

150

IQ 2003 IQ 2004 IQ 2003 IQ 2004

Sales including exports

• Domestic sales up by 32% - particularly in interior design, advertising and construction segments.

• Export sales up by 12.1%.

• Enhanced position on the markets in Germany, Italy and the US.

• New products: cannon shells, mountaineering equipment

Home appliances

12,0%

Wholesalers18,0%

Constructions35,0%

Automotive20,0%

Interior design15,0%

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6

Extruded Products: Export Markets

GERMANY 42%

SWEDEN 4%

DENMARK 4%

CZECH REP. 12%

LITHUANIA 4%

ITALY 15%

HOLLAND 5%

OTHER 10%

US 4%

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7

Aluminum Systems

• Stable domestic sales – up by 34%.

• Further growth of exports – over 27%.

• Enhanced leading position on the domestic market.

• Higher exports to the Czech Republic and Hungary.

• New products: fire-protection system used in public and general-purpose facilities.

26,1

34,7

2,9 3,7

0

40

IQ 2003 IQ 2004 IQ 2003 IQ 2004

Sales including exports

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8

Aluminum Systems: Export Markets

LITHUANIA 8%

UKRAINE 25%

BIELARUS 4%

HUNGARY 15%

CZECH REP. 14%

RUSSIA 31%

SLOVAKIA 3%

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9

Flexible Packaging

• Sales to domestic customers up by 14%.

• Export sales fell by 4.6%.

• heat-sealable foil and shrink film with printing added to the product offering.

47,351,5

13,0 12,4

0

50

IQ 2003 IQ 2004 IQ 2003 IQ 2004

Sprzedaż w tym eksport

Tobacco12,0%

Chemicals18,0%

Concentrates35,0%

Confectionery20,0%

Milk and dairy15,0%

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10

Flexible Pacakging: Export Markets

CZECH REP. 26%

BIELARUS 11%

OTHER 3%

HUNGARY 8%

UKRAINE 12%

RUSSIA 25%

US 5%

GERMANY 5%

KAZACHSTAN 5%

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11

Kęty Group

• 25% growth in demand from domestic customers was the key driver of sales growth during the quarter.

• Export sales up by 7.4%.

• Higher operating margin.

• Low effective tax rate maintained.

147,3

177,8

36,7 39,5

0

50

100

150

200

1Q 2003 1Q 2004 1Q 2003 1Q 2004

Sales including exports

Consolidated sales [PLNm]

16,7

27,5

15,1

23,9

0

25

50

1Q 2003 1Q 2004 1Q 2003 1Q 2004

EBIT Net profit

Consolidated earnings [PLNm]

11,4

15,5

10,3

13,5

0

5

10

15

1Q 2003 1Q 2004 1Q 2003 1Q 2004

EBIT Net margin

Consolidated margins [%]

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12

Structure of Revenue and Costs at the Kęty Group

Currency structure of revenue [%]

Inne1,0%USD

25,0%

PLN66,0%

EUR8,0%

USD2,9%

PLN81,6%

EUR15,5%

Currency structure of costs [%]

• Growth in demand from domestic customers was the key driver of sales growth during the quarter.

• Higher export sales.

• Higher operating margin.

• Low effective tax rate maintained.

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13

Working Capital Management

• Growth in working capital reflects the growth in sales.

• Continuous improvement of the receivables' term structure.

• Higher stocks driven by aluminum purchases.

153,7 147,5

050

100150200

II I 2003 II I 2004

Trade debtors

147,3

177,9

0

200

1Q 2003 1Q 2004

Sales

-4%

+21%

72,2 90

050

100150200

II I 2003 II I 2004

Stocks

+25%

66,5 53,3

0

50

100

150

II I 2003 II I 2004

Trade creditors

-20%

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14

Kęty Group's Debt

EUR11,6%

PLN77,0%

USD11,4%

Loans' currency structure – March 2004

Debt [PLNm]

• Growth of the Group's debt – net debt (debt less available cash) at ca. PLN 47 m.

• Safe financing structure.

• Negative operating cash flow – material reduction of short-term liabilities.

77,0

54,5

29,9

4,4

56,0 60,0

0

40

80

Dec 2002 Dec 2003 March 2004

Long-term Short-term

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15

Summary

LONG-TERM PROSPECTS FOR GROWTH OF COMPANY VALUELONG-TERM PROSPECTS FOR GROWTH OF COMPANY VALUE

1. Consistent implementation of the strategy.

2. Further potential for growth of sales and earnings.

3. New products and markets.

4. Stable operating cash flow and falling debt.

5. Kęty continues to pay out dividend.

0

2

4

6

8

10

2000 2001 2002 2003 2004F

EPS

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16

Reasons for Disposal of Flexpol

• No operational synergies with the Kęty Group – only 3% of Flexpol's output is processed within the Kęty Group.

• High operating risk related to the operation of a single process line running at 100% capacity utilisation.

• Required significant capital expenditure on increasing the company's capacity, which is not in line with the Group's development strategy.

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17

Transaction Description

• The total selling price of Flexpol and its assets will be PLN 50m, including PLN 32m for the assets leased from PKN Orlen, and PLN 18m for 100% of the company shares.

• Flexpol will pay PLN 3m dividend for 2003 to the existing shareholders.

• Conclusion of the final purchase agreement will depend on transaction's clearance by the Polish Anti-Trust and Consumer Protection Authority and the approval of the disposal of assets by PKN Orlen's General Meeting.

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18

Cash Flows Related to Investment in Flexpol

• - PLN 7,200,000 – acquisition of shares

• + PLN 1,628,284 – 2000 dividend

• + PLN 2,780,600 – 2001 dividend

• + PLN 3,666,915 – 2002 dividend

• + PLN 1,800,000 – 2003 dividend

• + PLN 10,800,000 – selling price for the shares

TOTAL: +PLN 13,475,799 – pre-tax profit on the investment.