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Metalurško-kemična industrija Celje, d. d.
Kidričeva 26, SI-3001 Celje, Slovenia
Annual Report
of Cinkarna Celje, d. d.,
for 2022
March 2023

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1
Index
Highlights of the report ........................................................................................................................... 6
Report of the Management Board ........................................................................................................ 12
Report of the Supervisory Board of Cinkarna Celje d.d......................................................................... 15
Report of the Audit Committee of the Supervisory Board on its work in 2022 and verification of the
Annual Report of Cinkarna Celje d.d. for 2021 .................................................................................. 16
Internal audit report .............................................................................................................................. 19
Important events ................................................................................................................................... 20
Presentation of Cinkarna Celje d.d. ....................................................................................................... 21
Our activities ..................................................................................................................................... 22
Market presence ............................................................................................................................... 24
Organisational structure.................................................................................................................... 25
Corporate Governance Statement ........................................................................................................ 26
Remuneration of members of management and supervisory bodies .............................................. 27
Corporate governance code for listed companies ............................................................................ 28
Code of ethics and conduct ............................................................................................................... 29
Diversity policy .................................................................................................................................. 29
Respecting human rights ................................................................................................................... 30
Policy on prohibition of sexual and other harassment and ill-treatment in the workplace ............. 30
Combating corruption and bribery .................................................................................................... 30
Internal control and risk management system in relation to the financial reporting process ......... 30
Information on the functioning of the Company's General Meeting, including its powers,
shareholders' rights and their exercise ............................................................................................. 31
Identification and management of impacts ...................................................................................... 32
Statement of non-financial performance .............................................................................................. 35
Report on environmentally sustainable economic activities and investments of Cinkarna Celje d.d.
for 2021 and 2022 ............................................................................................................................. 37
Proportion of revenue from products or services related to economic activities aligned with the
taxonomy .................................................................................................................................. 37
Proportion of investment in fixed assets in products or services related to economic activities
aligned with the taxonomy ............................................................................................................ 39
Proportion of investments in working capital in products or services related to economic
activities aligned with the taxonomy ............................................................................................ 40
Strategic orientations ............................................................................................................................ 42
Plan for 2023 ..................................................................................................................................... 42
Investments made and planned ........................................................................................................ 43
Analysis of results and performance ..................................................................................................... 47
Sales ................................................................................................................................................... 47
Operating result ................................................................................................................................ 50

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Shares – value and turnover.............................................................................................................. 50
Dividends ........................................................................................................................................... 51
Expenditure and costs ....................................................................................................................... 51
Assets and resources ......................................................................................................................... 53
Risk management and opportunities .................................................................................................... 56
Corporate risks identified in 2022 ..................................................................................................... 61
Integrated management system ........................................................................................................... 72
Internal audits ................................................................................................................................... 72
External audits ................................................................................................................................... 73
Financial and legal due diligence ....................................................................................................... 74
Information security .......................................................................................................................... 74
Sustainable development ...................................................................................................................... 76
About the sustainability report ......................................................................................................... 76
Areas of priority sustainability activities of Cinkarna Celje in relation to the United Nations
Sustainable Development Goals by 2030 .......................................................................................... 77
Objective in the field of sustainable development in 2022 .............................................................. 80
The chemical industry – a key sector for the green transition .......................................................... 80
Sustainability challenges and opportunities for the titanium dioxide industry ................................ 82
Greener production of chemicals .................................................................................................. 83
Responsible Care ........................................................................................................................... 83
Ecological footprint of TiO
2
products ............................................................................................ 83
Environmental footprint of paints and coatings containing TiO
2
.................................................. 84
REACH Regulation .......................................................................................................................... 84
Health safety of titanium dioxide .................................................................................................. 84
Sustainable use .............................................................................................................................. 85
Titanium dioxide as a catalyst for the transition to a green economy .......................................... 85
Membership in associations .............................................................................................................. 86
Stakeholder relations ........................................................................................................................ 86
Stakeholder involvement .............................................................................................................. 87
Materiality matrix .......................................................................................................................... 89
Employee relations ............................................................................................................................ 92
Collective agreements ................................................................................................................... 95
Remuneration and freedom of association ................................................................................... 96
Supplementary pension insurance and other bonuses ................................................................. 96
Protection of personal data ........................................................................................................... 96

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Employee training and competence development ....................................................................... 96
Moja Cinkarna app ........................................................................................................................ 98
Cinkarnar internal newsletter ....................................................................................................... 98
Open door of the Works Director's office ..................................................................................... 98
Employee engagement and satisfaction survey ............................................................................ 98
Health and safety at work ................................................................................................................. 99
Injuries at work ............................................................................................................................ 101
Absenteeism ................................................................................................................................ 102
COVID-19 ................................................................................................................................. 103
Workplace risk assessment ......................................................................................................... 103
Employee involvement ................................................................................................................ 103
Health promotion at work ........................................................................................................... 104
CC um for many improvements .................................................................................................. 104
Supplier relations ............................................................................................................................ 105
Supplier evaluation ...................................................................................................................... 105
Customer relations .......................................................................................................................... 107
High value-added products ......................................................................................................... 107
Labelling ................................................................................................................................ 108
Customer satisfaction survey ...................................................................................................... 109
Relations with the local community ................................................................................................ 110
Sponsorships and donations ....................................................................................................... 110
Cooperation with schools ............................................................................................................ 111
Open Door Day ............................................................................................................................ 111
Volunteering among employees ................................................................................................. 112
Communicating with the public .................................................................................................. 112
Receiving and resolving complaints from the public .................................................................. 113
Our approach to the environment .................................................................................................. 114
Quality assurance, environmental, health and safety policy ...................................................... 115
Major accident prevention and reduction policy ........................................................................ 115
Environmental communication, issues and complaints .............................................................. 115
Objectives and measures ............................................................................................................ 115
Compliance and standards .......................................................................................................... 116
Environmental monitoring .......................................................................................................... 116
Responsible Care Programme ..................................................................................................... 116

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Environmental due diligence ....................................................................................................... 116
Ecovadis sustainability rating ...................................................................................................... 116
HACCP system management ....................................................................................................... 116
Raw materials management ........................................................................................................... 117
Use of raw materials .................................................................................................................... 117
Packaging materials ..................................................................................................................... 118
Recycled input materials ............................................................................................................. 119
Reused materials ......................................................................................................................... 120
By-product production ................................................................................................................ 121
Waste management ........................................................................................................................ 122
Energy management ....................................................................................................................... 124
Energy consumption .................................................................................................................... 125
Investing in renewable energy .................................................................................................... 129
Project: Heat balance of titanium dioxide production ................................................................ 130
Investing for decarbonisation...................................................................................................... 130
Emissions to air ................................................................................................................................ 131
The Company's carbon footprint ................................................................................................. 131
Carbon footprint of the carrier product ...................................................................................... 132
Monitoring emissions to air ........................................................................................................ 133
Project: Sulphur smelting treatment plant ................................................................................. 135
Water management ........................................................................................................................ 136
Caring for water sources ............................................................................................................. 136
Integrated Water Management project ...................................................................................... 137
Wastewater management ........................................................................................................... 137
Impact of wastewater on the natural environment .................................................................... 138
Biodiversity ...................................................................................................................................... 139
Impact on biodiversity ................................................................................................................. 140
Old riverbed revitalisation project .............................................................................................. 140
Financial report ................................................................................................................................... 142
Financial statements ....................................................................................................................... 142
Condensed statement of financial position ................................................................................ 142
Income statement for the period from 1 January to 31 December ............................................ 144
Statement of other comprehensive income for the period from 1 January to 31 December .... 145
Statement of changes in equity and determination of distributable profit ................................ 146

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Cash flow statement .................................................................................................................... 148
Notes to the financial statements ............................................................................................... 149
Significant events after the end of the financial period ...................................................................... 206
Independent auditor's report .............................................................................................................. 207
General Meeting/capital structure...................................................................................................... 213
Statement by members of the management and persons responsible for drawing up the annual
report ................................................................................................................................................... 214
Company culture ................................................................................................................................. 215
Reporting indicators according to GRI standards ................................................................................ 216

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Introduction
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Highlights of the report
Our business is based on quality and accountability
The net profit in 2022 was EUR 43,396,465, an increase of 31% on the previous year.
18% higher sales in 2022.
The production and marketing of titanium dioxide pigment accounts for 80% of total sales.
As a share of value sales by market, sales in the EU market account for the majority, around 83%.
We provide personal and professional development opportunities for our employees
775 employees in 2022, a decrease of 2.3% compared to 2021.
155 useful suggestions from employees to improve operational and technological processes.
Employee health and safety at work are our priorities
In 2022, we allocated 15% more funds to occupational health and safety measures than in the
previous year.
The number of workplace injuries is decreasing, at 0.9 injuries per 100 employees in 2022, a
decrease of 0.3 workplace injuries per 100 employees compared to the previous year.
6.9% fewer occupational injuries per 1,000 employees than the five-year average for the chemical
industry and 0.7% fewer than the national average (NIJZ data for 2017-2022).
We invest in the local environment and foster creativity
Sponsorships and donations amounted to EUR 755,725, an increase of around 16% compared to
2021.
95% of sponsorship and donations go to sports clubs and associations.
For 15 years, we have been raising awareness among young people in the region about the
importance of chemistry for society and the natural environment through competitions.
We carefully manage all identified environmental impacts
We have been part of the Responsible Care Programme for 24 years.
We have installed two solar power plants with a total capacity of 1.5 MWp on the roofs of our
buildings in Celje.
11% of the total amount of water used to produce titanium dioxide is recycled or reused.
We produced 2.9% more white gypsum by-product than the previous year.

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Social footprint of Cinkarne Celje, d. d.
Cinkarna Celje, d. d.
2022 (in EUR)
Excise duty*
104,787
URE, SPTE and OVE contributions
430,286
Membership fees
48,490
VAT, customs, import duties
18,835,899
Levies on receipts of natural persons
12,222,524
Corporate income tax
8,789,599
Environmental levies**
101,373
Building land use tax (NUSZ), water levies
868,320
Transhipment taxes
773,243
Donations and sponsorships
755,725
Total
42,930,246
* Excise duty figures for the 2018-2022 period are estimated on the basis of the volume supply of EE.
** Environmental levies also include a CO
2
tax.

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A concise overview of performance and alternative performance measures
Cinkarna Celje d.d. also uses Alternative Performance Measures (APM) as defined by ESMA to show the historical
performance. In 2021, we revised the reported indicators in line with the reasonableness of the interpretation
given the practice in the titanium dioxide industry and the absence of debt in the statement of financial position.
The selected performance measures reveal the performance and efficiency of the Company's operations in light
of the cyclicality of the pigment industry.
Operations in EUR 000
2022
2020
2018
Turnover
227,153.12
172,386.90
163,960.90
Operating profit (EBIT)
1
53,175.64
22,534.40
36,408.50
Operating profit plus depreciation and
amortisation (EBITDA)
2
65,326.33
32,467.20
48,580.70
Net operating result
43,396.47
18,950.70
30,558.20
Non-current assets (end of period)
108,559.53
110,888.70
107,594.10
Current assets (end of period)
142,388.47
100,251.70
106,067.40
Equity (end of period)
209,010.15
174,820.90
173,925.50
Non-current liabilities (end of period)
18,831.72
20,876.40
27,763.30
Current liabilities (end of period)
23,106.14
15,442.00
11,407.40
Investments
10,546.50
12,233.00
22,608.30
Indicators
EBIT as a percentage of turnover
0.23
0.13
0.22
EBITDA as a percentage of turnover
0.29
0.19
0.30
Net profit as a percentage of turnover
(ROS)
19.11
10.99
18.64
Return on equity (ROE)
3
21.74
12.50
21.70
Return on assets (ROA)
4
17.61
9.00
14.10
Value added per employee
5
131,431
78,729
90,150
Number of employees
1
The difference between operating income and operating expenses.
2
The difference between operating income and operating expenses, plus depreciation and amortisation. Reflects operating
performance.
3
Net profit/average equity for the year. The indicator reflects the efficiency of the company in generating net profit in
relation to capital. Return on equity is also an indicator of management's performance in maximising the value of the
company for its owners.
4
Net profit/average balance for the year. The indicator reflects the efficiency of the company in generating net profit in
relation to assets. Return on assets is also an indicator of management's performance in using assets efficiently to generate
profits.
5
Operating profit plus depreciation, amortisation and labour costs divided by the average number of employees after
accrued hours. A productivity indicator reflecting the average new value created per employee at Cinkarna.

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Operations in EUR 000
2022
2020
2018
End of year/period
775
824
908
Average end of year/period
776
838
905
Share information*
Total number of shares
8,079,770
8,079,770
8,146,260
Number of own shares
264,650
219,510
21,490
Number of shareholders
2,321
1,920
2,078
Earnings per share in EUR
6
5.37
2.35
3.78
Dividend yield
7
10 %
11 %
13 %
Gross dividend per share in EUR
3.19
1.70
2.65
Share price at end of period in EUR
23.00
17.80
18.10
Book value per share in EUR
8
25.87
21.64
21.35
Market capitalisation in EUR 000 (end
of period)
185,834.71
143,819.91
147,447.30
* Share split recalculated for previous periods.
6
Net profit/average number of shares in issue.
7
Amount of dividend/share value (at the date of the resolution).
8
Capital at end of period/total number of shares in issue.

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Titanium dioxide as an accelerator of the green transition
In 2022, we produced 64,366 tonnes of pigmented titanium dioxide (RC), our main product, an increase
of 1% compared to the previous year.
Environmental and health benefits of titanium dioxide

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Helps create transparent solar cells
• Producing the first transparent solar cells by combining the unique properties of titanium
dioxide (TiO
2
) and nickel oxide (NiO).
• Integration into windows, vehicles, mobile phone screens and other everyday products.
• TiO
2
is an ideal semiconductor for solar cells because it absorbs invisible ultraviolet light while
still transmitting visible light.
Enabling innovation in green hydrogen technology
• TiO
2
enables a new method of hydrogen production for fuel, called photocatalysis, based on
the use of sunlight.
• TiO
2
could enable the production of electrodes that can absorb up to 50% of sunlight, making
the production of green hydrogen more efficient.
Benefits for the circular economy
• Efficiency: high standards of gloss, colour strength and opacity can be achieved with fewer
resources by using TiO
2
.
• Resistance and protection: TiO
2
protects materials from degradation by UV radiation and
weathering, so products last longer and less waste is generated over time.

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Report of the Management Board
Cinkarna Celje d.d., a modern and forward-looking chemical company, has celebrated 150 years of
continuous operation in very good shape, with ambitious sustainability goals. As part of the chemical
industry, which is a vital building block of the European and Slovenian economy, we are aware of our
opportunities, responsibilities and challenges in the context of the green, low-carbon and circular
transformation of European industry.
The green transition is not new to us, as key milestones in our distinguished history testify to a growing
awareness of the shared responsibility of all stakeholders for the success of our economic
performance, an attentiveness to the social environment and a growing sensitivity to the impact on
the natural environment. Through the consistent implementation of a sustainable development
strategy, which is embedded in the company's vision, mission and development plan, we are
continuously striving for improvements in all areas of our operations. In complex circumstances, we
seek innovative solutions and implement them in a successful business model to achieve a balance
between economic performance, social responsibility and environmental protection, with a focus on
the circular economy and decarbonisation.
The Board and staff are aware that our way forward, based on the principles of sustainable
development, must be geared towards strengthening our economic performance and ensuring
corporate responsibility, as well as integrating and achieving the objectives of all our stakeholders.
With this strategic stance, we aim to identify risks of all kinds, including climate risks, early on, while
boldly spreading the wings of opportunity.
The 2022 financial year was marked by two different half-years. The first continued the favourable
market trends and high level of demand of the previous year. The second half of the year, however,
witnessed the impact of increased energy risks, the downturn in the Chinese property market and the
consequent decline in pigment sales in that market, as well as increased export pressure from Asian
pigments to European markets. The second half of the year saw a significant cooling in demand from
European customers across all sales segments due to inflationary pressures on the industry and the
end consumer. Due to weaker demand and high prices in the energy markets, several competing
European producers temporarily reduced or stopped production.
In this environment, we maintained maximum production levels and managed to generate sales
revenue of EUR 227.2 million in the 2022 financial year, an increase of 18% compared to 2021. The
sales increase was mainly driven by higher average selling prices for titanium dioxide pigment and
maximum capacity utilisation. The total value of exports reached EUR 208.4 million in the period
considered, an increase of 19% compared to the same period of the previous year. Net profit
amounted to EUR 43.4 million, 31% higher than the EUR 33.2 million achieved in the corresponding
period of the previous year. Operating profit plus depreciation and amortisation, or EBITDA, amounted
to EUR 65.3 million, representing 29% of sales. EBITDA is up 27% compared to the previous year. We
consider that the operating results achieved are objectively good and exceed the forecasts for the
period.
We are pleased that our good work is delivering the expected returns to our shareholders and
partnership to the wider community.
We have earmarked EUR 10.5 million for investments, the purchase of fixed assets and replacement
equipment, and environmental investments, which represents 70% of the planned budget for 2022.
The under-performance is mainly due to changed circumstances requiring interruption of works and
additional preparation of documentation, longer procedures for selecting the most advantageous

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supplier, pilot tests of various installations, delays in the preparation of project documentation and
administrative procedures. The main focus of the funding was on the production of titanium dioxide
pigment to improve product quality, ensure the planned volume production and reduce environmental
impacts.
Focusing on our core titanium dioxide pigment programme and rationalising our portfolio of strategic
business areas are key building blocks of our business performance. Titanium dioxide pigment is our
most important product and an indispensable raw material in the modern world, and we are
committed to further developing and continuously improving its quality and exploring its use in
sustainable applications. These have many opportunities in the perspective of the transition to a green
economy.
Cinkarna Celje d.d. is a relatively small pigment producer, so we face market conditions and changes
as a typical follower, but of course we try to make the most of the market's potential in terms of level
and time dynamics within the given framework.
What does our view of the future suggest?
The macroeconomic environment remains challenging. Economic growth in the euro area is expected
to slow significantly in 2023, affected by high inflation, tighter financing conditions and lower
consumer confidence. In the context of markets and Cinkarna's carrier products, this situation means
that pigment consumers are facing weaker demand and sentiment, with high costs and inflation being
the key drivers. In addition to European pigment supply, very cheap volumes are emerging from Asia.
This reverses the trend of pigment selling prices in Europe. The difference between the selling price in
China and in Europe is at a historically high level.
Based on our assessment of current market conditions, we estimate that downward pressure on prices
will continue in the coming quarters. In parallel, the prices of some key raw materials are at high levels
or are only moderately valued, which will result in further downward pressure on profit margins.
Increased energy prices will also have an impact. Based on these facts, we have also prepared our plan
for 2023, taking into account the weaker performance and increased capital expenditure in the energy
and sustainability transformation.
Sales in the other business units are above the level of the previous comparable period, mainly in the
metallurgy and coatings segment, where they are higher than in the same period of the previous year
due to higher raw material input costs.
In 2023, Cinkarna Celje d.d. will prepare a new business strategy for a five-year period. It will also
integrate our strategic vision and objectives for the Environment, Society and Governance (ESG) area,
further underlining our commitment to the continuous transformation of the company towards
sustainability.
Our business strategy will be based primarily on an active marketing approach to find and develop the
most profitable customers and markets, increase market share in the highest quality markets and build
long-term partnerships with key customers. We will invest in developments and programmes that
show the potential for responsible and green growth.
We recognise that employees are the most important foundation for long-term business success. We
will continue to pay particular attention to optimising our human resources management and
organisational structure to ensure an appropriate level of employee satisfaction and motivation, and
above all to maximise the safety and health of our employees. We are implementing IT support for the
development of competences, including in terms of sustainability, digitalisation and innovation, and
improving the organisational climate. In agreement with the representative trade unions and

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employee representatives, we will continue to provide employees with work and personal growth, and
remuneration that adequately reflects the company's performance or the quality of its results.
By taking further sustainable steps, we will reduce the material, energy and carbon footprint of our
activities, which in turn means rationalising costs in the long term. We will build on our multi-year
continuous commitment to responsible energy use with a strategic decarbonisation target and plan in
2023. We will reduce our organisational carbon footprint (Scope 1 and Scope 2), which we calculated
last year, in the long term through, among other things, energy efficiency programmes and increasing
the use of renewable energy sources, and we are therefore building solar power plants on our own
facilities in phases.
In the context of making titanium dioxide production as sustainable as possible, we will continue our
multi-year development project on integrated water management and circular economy projects with
the aim of reducing waste. Improvements in the operation or upgrading of waste water treatment
plants and the implementation of measures to reduce emissions in the working environment will
continue to be a constant feature of our activities. We will continue with projects that comprehensively
manage spatial and environmental risks. The most important of these will continue to be the
alternative water supply projects, the harmonisation of the zoning acts at the Za Travnikom red
gypsum filling plant, the rehabilitation of the Bukovžlak Non-Hazardous Waste Disposal Site (ONOB),
and ensuring the stability of dams.
We will also strategically build on our integrated ESG (Environment, Society, Governance) efforts in
the value chain and in cooperation with the local environment.
The rich and at times dramatic history of Cinkarna Celje recounts a telling story of the exceptional
ability of its leaders to identify challenges in time and to courageously find the right answers to difficult
circumstances. The current management of the company, together with all its employees, is also
capable of bold visions and decisive sustainable steps - for a green company, a green wider society and
a promising future for the present generation and all future generations. The management of Cinkarna
Celje d.d. is personally and collectively committed to this. Our efforts, achievements and challenges
are disclosed in this report, and we are confident that in the future, in cooperation with our
stakeholders, we will meet and exceed many of the goals that we are currently still seeking answers
to. This visionary optimism has become part of our DNA over the years.
Management Board of Cinkarna Celje d.d.

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Report of the Supervisory Board of Cinkarna Celje d.d.
In 2022, the Supervisory Board met and took decisions at seven meetings, five of which were ordinary,
one correspondence and one extraordinary. Attendance at meetings was generally full. Within the
legal framework established by laws, regulations, the Company's Articles of Association and relevant
codes, as well as the approach of a prudent steward, we have diligently fulfilled and exercised our
powers, duties and responsibilities. We have considered the materials submitted, the presentations
made, the specific clarifications and explanations provided, and have organised and conducted
interviews with individual external experts. We have sought to further clarify and examine specific
topics through constructive suggestions, questions and requests for additional data, analyses and
reports. In our opinion, the Supervisory Board has acted diligently in its work, in accordance with the
law and with the best of its individual conscience and knowledge, thereby adequately safeguarding the
interests of the Company and its shareholders.
At the end of 2022, the Supervisory Board of Cinkarna Celje d.d. was composed of Dr. Mario Gobbo -
President, Luka Gaberščik, univ. dipl. in law – Deputy President, Mag. David Kastelic, Mitja Svoljšak,
Dušan Mestinšek, dipl. in electrical engineering, and Jože Koštomaj, mechanical engineer, the latter
two as workers' representatives.
The Supervisory Board has devoted time and attention to reviewing current operations, investments,
business plans and regular internal audit activities. Other topics to be highlighted include the
discussion on the implementation of the development strategy, environmental issues, occupational
health and safety issues and energy reporting. The Supervisory Board was kept informed of the
development and progress of environmental projects. The Management Board briefed the Supervisory
Board members in detail on the risk of shortage of process water and possible solutions. Attention was
also paid to monitoring the implementation of the Company's Strategic Plan for 2019-2023, adopted
in 2018.
In 2022, the implementation rate is 70% of the planned value. The under-performance is mainly due
to the occurrence of changed circumstances requiring interruption of works and additional preparation
of documentation, longer procedures for selecting the most advantageous supplier, pilot tests of
various installations, delays in the preparation of project documentation and administrative
procedures. The total value of investments thus amounted to EUR 10.5 million. The main part of the
funds was earmarked for the production of titanium dioxide pigment to improve product quality,
ensure the planned volume production and reduce environmental impacts.
In November, we discussed and adopted our business plan for 2023, based on relatively pessimistic
macroeconomic forecasts and with traditional conservatism. The sales plan amounts to more than EUR
200.6 million and the net profit is planned at EUR 5.9 million. The planned drop in the latter is mainly
due to market pressures towards lower average selling prices and higher purchase prices. The
Supervisory Board considered that the plan was appropriately formulated and that it adequately
reflected both the situation in the business environment and the Company's competitive position and
potential for generating results.
Thanks to the efforts of the employees and the Management Board of the company in extraordinary
circumstances, the results achieved in 2022 are very good and are among the best in the history of
Cinkarna Celje d.d., and at the same time they are above average in the competition of the best
Slovenian industrial companies. International industry comparisons also show once again that the
results achieved are among the very top of the leading global companies in the titanium dioxide
pigment industry. The Company's operating profitability exceeded the operating results of most
competing titanium dioxide pigment producers. Therefore, we consider the reported net profit of EUR

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43.4 million and total sales of EUR 227.2 million to be outstanding achievements. The Company has
traditionally followed a conservative financial management strategy, operating without long-term
borrowings or external financing, and is therefore financially stable and sound.
The strong performance in 2022 is therefore due to still relatively high average prices or margins. We
have also closely monitored progress on physical volume indicators. Particular emphasis will therefore
be placed on improving or raising the competitive position, increasing market shares and increasing
physical volumes. In parallel, the possibility of further diversification of the product portfolio will be
explored.
The Supervisory Board considers that the actions taken by the Management Board have also been
successful in implementing investment plans and targeted development work. A high level of financial
stability has been maintained despite the payment of high dividends. The efficient operation,
sustainability and stability of the system provide an answer to its long-term prospects. The main
directions of the Company's operations and development, as set out in the medium-term strategy,
have been qualitatively fulfilled in the most important points. In 2018, the Supervisory Board was
involved in the preparation and adoption of the development strategy until 2023. The key focus of this
strategy is the Company's focus on the core business of titanium dioxide and the change in the sales
portfolio of this core product towards increasing quality, optical properties and product development
for more demanding customer applications. The Supervisory Board actively supports a business policy
focused on reducing risks and uncertainties and ensuring a stable financial position of the Company.
Together with the Management Board, we pay attention to the requirements and ensure compliance
also with the continuous progress in the environmental and employee health protection areas.
In the opinion of the Supervisory Board, the present Annual Report, which contains the statutory
financial statements, disclosures, explanatory notes and the management report, contains the most
important information and indicators as well as adequate explanations of individual events and facts,
and therefore the Supervisory Board, on the proposal of the Audit Committee of the Supervisory
Board, approves the Annual Report of Cinkarna Celje d.d. for 2022.
The Supervisory Board has also read the independent auditor's report and considers that it adequately
presents the statutory audit of the financial statements and notes and accepts the auditor's opinion
that the financial report is consistent with the audited financial statements. This sufficiently satisfies
the requirement that the information given about the Company's financial position during the period
under review be true and fair.
Report of the Audit Committee of the Supervisory Board on its work in 2022 and verification
of the Annual Report of Cinkarna Celje d.d. for 2021
The Audit Committee of the Supervisory Board of Cinkarna Celje d.d. in 2022, consisting of Mag. David
Kastelic – Chairman, Jože Koštomaj, mechanical engineer – Member, and Gregor Korošec, univ. dipl. in
economics – Independent External Expert, held five regular meetings. The Audit Committee members
focused on their regular and ongoing tasks and commitments.
Members of the Audit Committee were present at all meetings. Aleš Skok, President of the
Management Board, and Mag. Karmen Fujs, Head of the Accounting Department, who presented
documents and answered or clarified questions from the members were also present. Two meetings
were attended by two certified auditors, Sanja Košir Nikašinović and Lidija Šinkovec, from Ernst &
Young, d.o.o. Jure Vezjak, Head of the Internal Audit Department, was also present at the meetings.

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At all meetings, the Audit Committee was informed about the interim results of Cinkarna Celje d.d. and
paid particular attention to financial and accounting data. It paid close attention to the content of the
Company's interim and annual financial statements and made proposals and recommendations for
corrections. As already mentioned, it also reviewed and examined on an ongoing basis the reports of
the Internal Audit Department, which included, inter alia, reporting on the status of action taken on its
recommendations, while at the same time cooperating constructively, suggesting improvements and
guiding the work of the Internal Audit Department.
The Audit Committee again reviewed the system for identifying, evaluating and managing risks in the
operations of Cinkarna Celje d.d. The system is properly integrated into the Company's business
processes in 2022. This has significantly improved its responsiveness and, above all, it represents a
desirable tool for the active management of the Company. The risk management system, which is
integrated into the integrated management system, is based on the regular updating of a risk
catalogue, in which risks are systematically classified according to the assessment of the probability of
occurrence of each type of risk and the amount of potential damage. The system also includes a set of
actions aimed at managing these risks. The Audit Commission assessed the system as satisfactory.
In accordance with its responsibilities, the Audit Committee was active in 2022 in the regular audit
procedures of Cinkarna Celje d.d. The activities were mainly:
− meeting with the auditors and taking note of the progress of the final audit of the 2021
financial statements of Cinkarna Celje d.d.;
− taking note of the findings of the audit of Cinkarna Celje d.d.'s financial statements for 2021
and the auditor's opinion;
− taking note of the letter to management on the findings of the audit of Cinkarna Celje d.d.'s
financial statements for the year ended 31 December 2021.
The meetings and activities in 2022 were aimed at taking note of the final audit of the Company's
financial statements for 2021, reviewing the Annual Report of Cinkarna Celje d.d. and reviewing the
annual report of the Internal Audit Department, as well as taking note of the periodic reports for the
2022 financial year. In 2022, the Internal Audit Department performed all internal audit tasks
successfully and in accordance with the plan, and reported to the Audit Committee on an ongoing basis
on the performance of those tasks.
The Audit Committee received and considered the final Annual Report of Cinkarna Celje d.d. for 2022
at its meeting. The Audit Committee concluded that the Annual Report of Cinkarna Celje d.d. for 2022
was prepared on time and in all material respects in accordance with International Accounting
Standards and the provisions of the Companies Act.
The business section of the Annual Report of Cinkarna Celje d.d. provides a concise overview of the
Company's operations in recent years. The analysis of results and operations provides a detailed
overview of the Company's assets and operating result, with full explanations of sales, operating result,
expenses and costs, assets and resources.
The Company's development is based on people, investment, development activity, quality assurance
and the successful implementation of its strategic plan for the next period up to and including 2023.
The Annual Report also contains a statement of non-financial performance, which, as required by the
amended Companies Act, includes the required information on social responsibility, the environment,
human resources, and anti-corruption and anti-bribery.

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The financial statements of Cinkarna Celje d.d. for 2022, together with the accounting policies and
notes thereto, have been audited by Ernst & Young d.o.o. and approved by the General Meeting of
Shareholders of the Company at its 23rd Ordinary Session on 4 June 2019. The auditor has issued a
positive opinion on the financial statements of Cinkarna Celje d.d. for 2022 and has also confirmed that
the information in the financial statements is consistent with the accompanying financial statements.
In its opinion, the auditor highlighted the key audit matters disclosed in the accounting part of the
report, namely Note 13 - Other provisions to the financial statements, where it is disclosed that the
Company has environmental provisions of EUR 14.8 million as at 31 December 2022, which were
established on the basis of the projects developed, the reports prepared and the estimates made by
the external consultants and the management regarding the costs to be incurred for the rehabilitation
of the landfills and the coverage of future liabilities.
Based on the positive opinion in the auditor's report, additional explanations provided by the auditor
and the departments of Cinkarna Celje d.d., and the information and disclosures in the Annual Report
of Cinkarna Celje d.d., the Audit Committee is of the opinion that the Annual Report for 2022 has been
prepared in accordance with the requirements of the Companies Act (ZGD-1) and that the financial
statements present fairly, in all material respects, the financial position of Cinkarna Celje d.d. as at 31
December 2022 and its operating result and cash flows for the year then ended in accordance with
International Financial Reporting Standards as adopted by the EU.
The Audit Committee considers that the auditor has acted impartially and independently and in
accordance with the Auditing Act. The statutory auditor and the audit firm will provide the Company
with a review of the ESEF Report. The Report on the Remuneration of the Company's Management
and Supervisory Bodies will also be reviewed by them.
The Audit Committee has no comments on the Annual Report of Cinkarna Celje d.d. for 2022 that
would in any way delay it in proposing to the Supervisory Board that it adopt a decision on the approval
of the Annual Report of Cinkarna Celje d.d. for 2022 in accordance with Article 282 of the Companies
Act (ZGD-1).
President of the Supervisory Board
Mario Gobbo

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Internal audit report
Internal auditing at Cinkarna Celje d.d. is performed by the Internal Audit Department, headed by the
Head of the Internal Audit Department. The Department is an independent organisational unit,
organisationally accountable to the Management Board and functionally to the Audit Committee and
the Supervisory Board of the Company, respectively. It operates in accordance with the International
Standards for the Professional Practice of Internal Auditing (hereinafter referred to as the Standards)
and other rules included in the International Framework for the Professional Practice of Internal
Auditing and the Hierarchy of Internal Auditing Rules.
Its role is to provide independent and impartial assurance and advice designed to add value and
improve the performance of the Company. It helps the Company to achieve its objectives by
systematically and methodically assessing and improving the effectiveness of risk management,
control processes and corporate governance. It acts in accordance with the Charter and is guided by
the principles of integrity, expertise, professional due diligence, impartiality and independence.
It undertakes activities in areas where key risks to the Company arise or may arise and where it can
contribute to the improvement of the business and the enhancement of the Company's operational
security and business benefits, where the business is exposed to risks and weaknesses that threaten
its continued existence and development, or where there are opportunities for fraud, error, evasion
or conflict, with the aim of making the Company's operations more efficient, economical and effective.
It carried out its activities in 2022 in accordance with the approved annual work plan. All but one of
the eight planned internal audits were carried out, as were other internal audit activities such as
periodic follow-up of recommendations, internal audit planning, work methodology activities and
others. The results of the audits and other activities were regularly reported by the Head of the Internal
Audit Department to the Auditees-in-Charge and the Management Board, and periodically to the Audit
Committee and the Supervisory Board of the Company.
In 2022, the Internal Audit Department successfully completed an external quality audit of its work
against the Standards.
Head of the Internal Audit Department
Jure Vezjak
Qualified Internal Auditor and CIA (Certified Internal Auditor)

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Important events
Silver Innovation Award for BU Kemija Celje
In June 2022, we received a silver award from the Celje Regional Chamber of Commerce for our
innovation entitled Development of an industrial production process for the active pharmaceutical
ingredient tribasic copper sulphate, developed by employees Dr. Andrej Lubej, Mag. Peter Bastl and
Stjepan Zagorščak. It is a breakthrough innovation, a novelty on a global scale and based on an original
process. Tribasic copper sulphate is a product with a high long-term prospect and could become one
of Cinkarna Celje's leading products with appropriate investment in both the production process and
market development. The production of the active substance generates significantly fewer unwanted
by-products and the product itself is more environmentally friendly, as it is classified as a milder
hazardous chemical compared to other copper-based active substances. Cinkarna Celje's strategy
foresees diversification of production through new programmes and by modernising and increasing
the competitiveness of existing programmes. The innovation, with its potential, relevance for the
business unit and innovative implementation, is fully in line with the Company's strategy.
Cinkarna Celje's firefighters helped to extinguish the fire in the Kras region
In July 2022, when a large fire broke out in the Kras region, several members of Cinkarna Celje's
professional firefighting unit helped to extinguish the blaze. On their return, the Company's
management thanked them for their selfless help and expressed their support for their mission.
Ministers Tanja Fajon and Matjaž Han visited Cinkarna
In September 2022, Cinkarna Celje was visited by the Minister of the Economy Matjaž Han, the Minister
of Foreign Affairs Tanja Fajon and the State Secretary of the Government Office for Development and
European Cohesion Policy, Mag. Marko Koprivc. The management of Cinkarna Celje addressed them
with an initiative to consider incentives for energy-intensive companies, which are becoming less
competitive with foreign producers due to the burden of more expensive raw materials and energy.
The Company still has a lot of potential for development, but the State will have to step in to help it by
speeding up procedures, providing incentives and funding for sustainable development.
Receiving a plaque from the Slovenian Chemical Society
The Slovenian Chemical Society celebrated its 70th anniversary in 2021. Due to the health situation of
the COVID-19 epidemic, a festive meeting was organised in September 2022 as part of the traditional
Slovenian Chemistry Days in Portorož. The ceremony was also attended by Aleš Skok, President of the
Management Board of Cinkarna Celje, who received a plaque on behalf of the Company – a sign of
good cooperation with the chemists' trade union.
Receipt of the fourth Platinum Certificate of Credit Excellence
In 2022, we were awarded our fourth Platinum Certificate of Credit Excellence. It ranks us among the
most trustworthy business entities and demonstrates our commitment to good business practices. The
certificate indicates a low probability of bankruptcy, delisting from the commercial register or inclusion
in the list of tax defaulters. The basis for the Business Excellence rating is financial statements that
predict above-average safety and soundness over the next year.
Award for the new cinkarna.si website
In 2022, we redesigned our website www.cinkarna.si, which was entered in the international Web
Excellence Award competition and won the Web Excellence Award in March 2023 in the category of
corporate & B2B websites, entitled: Moving corporate image towards sustainability. The Web
Excellence Award is an annual international competition that promotes excellence and sets standards
in the field of online communication. The competition, now in its eighth year, attracted agencies from
39 countries and 47 US states, submitting more than 1,200 entries in various categories. The prize is
awarded by the Web Academy of Digital Arts and Media.

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Presentation of Cinkarna Celje d.d.
With its almost 150 years of continuous operation, Cinkarna Celje d.d. is one of the most resilient
companies in the Slovenian economy. Until 1968, the Company's defining activity was metallurgy, but
with the launch of the production of titanium dioxide pigment in 1973 and its subsequent expansion,
Cinkarna Celje d.d. is now a chemical-processing company.
Company
Cinkarna, metalurško-kemična industrija Celje, d. d.
Short name
Cinkarna Celje d.d.
Headquarters
Kidričeva ulica 26, 3000 Celje
Telephone - Central Office
+386 3 427 60 00
Telex
36517 METKEM SI
E-mail
info@cinkarna.si
Website
www.cinkarna.si
Person responsible
Aleš Skok, President of the Management Board
Dislocated business unit
Kemija Mozirje
Headquarters
Ljubija 11, 3330 Mozirje
Telephone
03 837 09 00
Mission
Through the professional and socially responsible application of chemical processes, we produce a
wide range of products essential to our daily lives. We provide work and personal growth for our
employees and expected returns for our shareholders.
Vision
The Company aims for growth and efficiency gains in existing and new technologically demanding, high
value-added products. We will achieve our objectives while respecting the principles of sustainable
development and the circular economy.
Values
• Partnership and trust
• Honesty and respect
• Creativity and development orientation
• Commitment to sustainable development and the circular economy
• Belonging and working together to achieve common goals

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Our activities
Cinkarna Celje d.d. is a company with a broad production and sales programme. The different sales
sub-programmes can be grouped into sales groups, which group together products with similar utility.
In recent years, we have discontinued a number of product-sales programmes which did not meet the
profitability or performance criteria.
Our main activities are:
− Production of titanium dioxide (TiO
2
);
− Production of sulphuric acid;
− Zinc processing, including zinc alloys, anodes and zinc wire;
− Production of agricultural products, including plant protection products and growing media;
− Production of masterbatches and powder varnishes;
− A group of fluorinated polymers and elastomers which have properties useful for the transport
of aggressive media and the protection of process and mechanical equipment;
− Semi-finished products of titanium dioxide pigment production: titanyl sulphate, metatitanic
acid and sodium titanate;
− By-products of titanium dioxide pigment production: white gypsum – CEGIPS (intended for the
cement industry and agricultural applications) and red gypsum – RCGIPS (intended for filling
in low-rise construction, low-rise embankment construction and the production of capping
layers).
The main product and sales group is the titanium dioxide pigment, which combines the sales of
different pigment types. This group also includes ultra-fine forms of titanium dioxide, which are high
value-added products since, depending on their crystalline form, they can act as photocatalysts or UV
absorbers. They are integrated into high-technology products (self-cleaning systems, UV-stabilising
materials, etc.). The production and marketing of titanium dioxide pigments account for 80% of our
total sales.
Plant protection products are a very important sales group and one of the pillars of the Company's
future development. We see this as an opportunity to address the global challenges of ensuring
sufficient and safe food. The flagship products of this group are copper fungicides of different
formulations and different active substances used (copper hydroxide, copper oxychloridin, tribasic
copper sulphate). In the area of plant protection products, we pursue a strategy focusing on product
quality and environmentally safe use.
The powder coatings and masterbatches group represents a vertical extension of the core titanium
dioxide pigment production and is becoming an increasingly important sales group for the Company.
Powder varnishes are sold primarily for anti-corrosion and decorative purposes in the manufacture of
household appliances, heating elements and other metal finishes. Masterbatches are intended for
incorporation into plastics to improve their performance properties.
The other areas are the production of PTFE (polytetrafluoroethylene) products, half for internal
consumption and maintenance, the other half for marketing, mainly in the plant protection and
chemical industries. The production of sulphuric acid is mainly for internal use, with any surplus sold
on the market. As a by-product of the production of TiO
2
pigment, we produce CEGIPS, the so-called
white gypsum, which is sold on the cement and plasterboard markets.

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Chart: Share of value sales by product group in 2022
Paints (including decorative paints) and varnishes comprise the largest value sales chain of Cinkarna
Celje d.d. Together they account for more than 60% of sales. This is followed by plastics and the
incorporation of titanium dioxide pigment in other building materials. Other industries are less well
represented in terms of sales. Paints and varnishes, plastics and building materials account for the
majority of titanium dioxide sales.
Chart: 2022 sales by segment
In the context of the Environmental Permit, we have reviewed the options for achieving the titanium
dioxide production volumes in 2021. We have projected emissions trends for different expansion
volumes and prepared a review of the bottlenecks to achieving a capacity of 71,000 tonnes. The
assessment of the realistic options and the feasibility of further production expansion was also carried
over to 2022 and continued in 2023 due to missing data from the external environment.

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Market presence
We operate mainly in the European market, where we generate the majority of our revenues. To a
lesser extent, we are also present in offset markets, mainly in the US dollar currency area. In terms of
geographical location, we identify the EU Member States as the most important markets, followed by
Slovenia, the so-called third world countries and the markets of the former Yugoslavia. Germany is our
largest sales market, accounting for around one third of our sales, followed by France, Italy, Slovenia,
Turkey and the Netherlands.
The countries where we have the largest presence are Germany, Slovenia, Italy, France, Turkey,
Belgium, the Netherlands, Austria, Poland, Greece, Croatia, Algeria, Serbia, Hungary, Spain, Portugal,
Sweden, the Czech Republic, Ukraine and Romania.
As a share of value sales by market, sales to the EU market account for the majority, around 83.5%.
Sales to third countries account for 16.5%.
Chart: Share of value sales by market in 2022

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Organisational structure
The organisational structure comprises the Company's Management Board, six business units and ten
professional departments.
BU Titanov dioksid: Tomi Gominšek, Director
BU Metalurgija: Miran Špegel, Director
BU Kemija Celje: Andrej Lubej, Director
BU Kemija Mozirje: Irena Vačovnik, Director
BU Polimeri: Roman Deželak, Director
BU Vzdrževanje in energetika: Boštjan Podkrajšek, Director
Joint professional departments:
− Finance: Dejana Starčević, Area Coordinator
− Marketing: Irena Franko Knez, Director
− Human Resources and General Services: Marko Cvetko, Head of Department
− Occupational Safety and Health Department: Otmar Slapnik, Head of Department
− Legal Department: Gregor Gajšek, Head of Department
− Quality Department: Ksenija Gradišek, Head of Department
− Environmental Protection Department: Bernarda Podgoršek Kovač, Head of Department
− Accounting Department: Karmen Fujs, Head of Department
− IT Department: Boris Špoljar, Head of Department
− Internal Audit Deperment: Jure Vezjak, Head of Department

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Corporate Governance Statement
Cinkarna, metallurško-kemična industrija Celje, d. d., is organised as a joint-stock company with its
registered office in Celje. The Company has a two-tier management system - with a Management
Board and a Supervisory Board. The Company is managed by the Management Board for the benefit
of the Company, independently and on its own responsibility. The Management Board represents and
acts for the Company and is accountable to the General Meeting and the Supervisory Board.
The Management Board is the collective body of the Company. It is composed of a President and up
to three members. The President of the Management Board is the Chief Executive Officer, and one of
the members of the Management Board is a Works Director. Within the framework of the general
rights and obligations which all members of the Company's Management Board have under the law
and the Company's Articles of Association, the Works Director represents and acts for the interests of
the employees with regard to personnel and social matters. The conditions and procedure for the
appointment and dismissal of the Works Director and his/her powers are laid down in accordance with
the Law on Workers' Participation in Management (ZSDU).
The President of the Management Board has a deputy, who is one of the members of the Management
Board, but is not a Works Director. The President of the Management Board is appointed by the
Supervisory Board. The members of the Management Board are appointed by the Supervisory Board
on a proposal from the President of the Management Board, with the exception of the Works Director,
who is nominated by the Works Council. The term of office of the President and of the members of the
Management Board is up to five years, with the possibility of reappointment. The members of the
Management Board adopt decisions by resolutions adopted by a majority of the votes cast. In addition
to the statutory conditions, the President or a member of the Management Board must have at least
a university degree and at least five years' professional experience. The President of the Management
Board is also a member of the Management Board and is not a senior manager in the Group. This is an
independent position in Cinkarna Celje d.d.
The Company's Management Board has the following responsibilities:
− prepares information on company matters, technical material and resolutions within the
competence of the General Meeting,
− convenes the General Meeting,
− implements the decisions taken by the General Meeting.
The Management Board reports to the Supervisory Board on:
− the profitability of the Company,
− planned business policy and transactions that have a significant impact on the profitability or
solvency of the Company, and other matters in accordance with the law and if so requested
by the Supervisory Board.
Members of the Management Board of Cinkarna Celje d.d. as at 31 December 2022:
− Aleš Skok, President of the Management Board,
− Nikolaja Podgoršek - Selič, Member of the Management Board – Technical Director,
− Filip Koželnik, Member of the Management Board – Works Director.
All board members are from Slovenia, the Technical Director and the Works Director are from the local
area where the Company is based, which represents 2/3 of the board.
The Supervisory Board is composed of six members. All members of the Supervisory Board have the
same rights and duties. Two members of the Supervisory Board are representatives of the Company's
employees, elected by the Works Council and notified to the General Meeting of Shareholders. A
member of the Supervisory Board cannot be a person who is a member of the Management Board, a

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member of the Supervisory Board of three other companies, a member of the Management Board of
a subsidiary, a proxy or business agent of the Company, an employee of a competing company where
there is a conflict of interest, or a member of the Management Board of another capital company on
whose supervisory board a member of the Management Board of Cinkarna Celje d.d. is a member.
The Supervisory Board is appointed by the General Meeting of Shareholders by a simple majority of
the votes cast by the shareholders present, except for two members appointed by the Works Council.
The powers of the Supervisory Board are laid down by law. The detailed arrangements, modalities and
conditions for the work of the Supervisory Board are governed by the Rules of Procedure of the
Supervisory Board. The Management Board must obtain the Supervisory Board's approval for the
establishment of business policy, the adoption of plans, the creation and co-creation of companies,
the increase and transfer of the Company's founder's deposits in companies, the purchase and transfer
of the Company's shares and interests in companies, the granting of proxies, etc.
Meetings of the Supervisory Board are convened by the President of the Supervisory Board on his/her
own initiative or on the initiative of any member of the Supervisory Board or on the initiative of the
Company's Management Board. The Supervisory Board takes decisions at its meetings. A quorum is
present if at least half of the members are present at the meeting. The Supervisory Board normally
meets five times a year.
Members of the Supervisory Board of Cinkarna Celje d.d. as at 31 December 2022:
− Mario Gobbo, President, representative of capital,
− Luka Gaberščik, Deputy President,
− David Kastelic, representative of capital,
− Mitja Svoljšak, representative of capital,
− Dušan Mestinšek, employee representative,
− Jože Koštomaj, employee representative.
In 2022, the representation of women on the Management Board was one-third. There were no
women on the Supervisory Board. The composition of both the Management Board and the
Supervisory Board aims at heterogeneity in terms of professional profile, gender and age.
The Management Board has appointed an Ethical Business Conduct Committee, composed of Filip
Koželnik, Marko Cvetko and Gregor Gajšek.
The Supervisory Board has an Audit Committee, composed of David Kastelic (Chairman), Jože Koštomaj
and Gregor Korošec (external member), and a Human Resources Committee, composed of Mario
Gobbo (Chairman), Dušan Mestinšek, Luka Gaberščik and Mitja Svoljšak.
The Audit Committee prepares proposals for resolutions, positions and opinions within the
competence of the Supervisory Board in connection with the annual and management reports, reports
and opinions of the external auditors, as well as the preparation of the Supervisory Board's reports to
the General Meeting of Shareholders. The Supervisory Board is required to keep the Supervisory Board
informed of its work and activities and to submit reports on its meetings.
The Human Resources Committee prepares proposals for resolutions, positions and opinions within
the competence of the Supervisory Board, in particular with regard to the preparation of proposals on
criteria and candidates for membership of the Company's Management Board, membership of
Supervisory Board committees and support for the establishment and implementation of the
remuneration system for the Company's Management Board.
Remuneration of members of management and supervisory bodies
The remuneration of the members of the management bodies is defined in individual employment
contracts, which are drawn up taking into account the remuneration policy, legislative constraints, best

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practice guidelines and the definitions in the Statutes. The variable part of the remuneration of the
members of the Management Board is determined in accordance with the rules adopted by the
Supervisory Board of the Company. The final amount of the variable remuneration of the members of
the Management Board is approved in accordance with the rules. The remuneration and allowances
of the members of the Supervisory Board are determined by a resolution of the General Meeting of
Shareholders.
Corporate governance code for listed companies
The Company applies the Corporate Governance Code for Listed Companies adopted by the Ljubljana
Stock Exchange and the Slovenian Association of Supervisors in 2021. In accordance with the business
decision of the Company's Management Board, the Company adopts the Code in the form set out in
the notes. Due to the specificities of the governance of a particular company, the legal basis (ZGD-1,
ZTFI-1, MAR, etc.) is strictly followed in areas deviating from the Code. Below we provide an overview
and explanations of deviations from the individual provisions of the Code.
Point 4 – The Company does not have a specific Diversity Policy document. The Diversity Policy section
outlines the framework guidelines.
Point 5.7 – The Governance Statement has been assessed by the external auditor as part of the regular
audit. No additional external adequacy assessment has been carried out.
Point 6 – The Supervisory Board, in cooperation with the Management Board, developed the
Remuneration Policy for Management and Supervisory Bodies in accordance with the relevant
legislation and best practice recommendations in this area and submitted it to the General Meeting
for approval. The document was not approved by the General Meeting. For more information, see
Remuneration of members of the management and supervisory bodies.
Point 7 – The Company does not have a specific Sustainable Operations Policy document, as
sustainable operations are disclosed in the context of the present report and the Quality Assurance,
Environmental, Health and Safety Policy.
Point 10.1 – The Company has concentrated ownership, where the two largest shareholders hold more
than 20% of the voting rights. The majority of shareholders are also from Slovenia. For the reasons
mentioned herein, we do not allow participation in the General Meeting by electronic means.
Point 16 – The evaluation of the work of the Supervisory Board is carried out by the members
themselves, following the methodology and the Manual for the Evaluation of the Effectiveness of
Supervisory Boards prepared by the Association of Supervisors of Slovenia. The evaluation process was
carried out in a professional and objective manner and therefore there was no need for external expert
support and no external audit of the Supervisory Board's work was carried out in cooperation with a
specialised institution or other experts.
Point 20.5 – The function of Secretary of the Supervisory Board is performed by a person employed by
the Company who receives no additional remuneration for performing this function.
Point 26 – The Company does not yet have pre-established procedures in relation to related party
transactions to assess whether a transaction is one that will be entered into in the ordinary course of
the Company's business and on arm's length terms. The Company did not record any related party
transactions during the reporting period.
Point 30 - The Company does not have a defined corporate communication strategy as an integral part
of the Corporate Governance Policy. The Company's communication or transparency is the
responsibility of the Company's management and professional departments. Public announcements
(SEOnet and the Company's websites) comply with legal requirements and contain information that

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enables an investor in securities to assess the situation and to evaluate the impact of a business event
on the price of a security.
Code of ethics and conduct
The fundamental principles and rules of conduct and behaviour of the management and all employees
of the Company are set out in the Code of Ethics and Conduct. It includes a standard of performance,
management and leadership that contributes to the creation of a corporate culture and excellence.
The Code commits the Company to the highest standards of business and ethical conduct and to the
development of a culture of ethical behaviour based on ethical criteria that are binding on members
of the Management Board and senior executives, as well as on all other employees. Any breach of the
ethical criteria is sanctioned accordingly. In case of ambiguity regarding the Code, doubts as to proper
conduct, open questions and possible borderline cases, employees may seek clarification of the Code
from the management or from a person authorised by the management.
The Company is committed to ethical conduct in all aspects of its business. Employees are required to
conduct their work in an ethical and professional manner, in accordance with the Code and the
Company's values, and in compliance with applicable laws, rules, regulations and the Company's
internal acts. Employees are obliged to refrain from any conduct that materially or morally damages
the business interests and reputation of the Company.
All employees who know of or have received information about violations or actions that may lead to
violations of the Code of Ethics and Conduct are required to report such information to their supervisor
or anonymously by providing the information:
− to razkritja@cinkarna.si,
− in writing to the Management Board,
− in the mailboxes provided for this purpose.
The Management Board promptly forwards the information received on misconduct to a standing
group of at least three members, i.e. the Ethical Conduct Committee, for review and appropriate
consideration.
Diversity policy
The sum total of the individual differences, life experiences, knowledge, ingenuity, innovation, self-
expression, unique skills and talents that our employees bring to their work is an important part not
only of our culture, but also of our corporate reputation and achievements. We accept and encourage
differences among our employees based on age, colour, disability, ethnicity, marital or family status,
gender identity or expression, language, national origin, physical or mental ability, political affiliation,
race, religion, sexual orientation, socio-economic status and other characteristics that make our
employees unique. All employees have a duty to treat others with dignity and respect at all times.
Employees are expected to be inclusive while at work, in or out of their job functions, and at all
company-sponsored events.
A diversity policy for the management and supervisory bodies has been developed but has not yet
been adopted. The aim is to optimise the effectiveness of these bodies, thereby enhancing the
development, competitive advantages and corporate reputation of the Company.
The diversity policy in the management and supervisory bodies is implemented through an appropriate
recruitment and selection process, with the involvement of the Human Resources or Nomination
Committee. The Company's bodies comply with and implement it in accordance with the applicable
legislation under the Labour Relations Act (ZDR-1) and with the principles and provisions of the Codes,
which specify the content and make recommendations in this area.

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Any individual who expresses an interest and meets the criteria laid down by law, the Company's
Articles of Association and the Corporate Governance Code is eligible to apply for membership. The
following aspects of the diversity policy are taken into account in the composition of the Supervisory
Board and the Management Board: gender, age, education and professional experience.
Once adopted, the policy will be published on the Company's website and on the SEOnet portal.
Respecting human rights
We respect human rights as set out in internationally recognised principles and guidelines. We are
committed to tolerance, mutual respect and basic human rights. We reject any form of ill-treatment,
harassment or discrimination. We act ethically and professionally and in accordance with the values of
the Company. We expect this commitment from our management, employees and business partners.
The Company did not experience any cases of human rights violations, nor did we record any cases of
discrimination in 2022.
Policy on prohibition of sexual and other harassment and ill-treatment in the workplace
The Company's Management Board has adopted Rules on the Prohibition of Sexual and Other
Harassment and Ill-Treatment in the Workplace. Accordingly, an Internal Representative is designated
to receive reports, provide assistance and information. The Representative is a trusted person to whom
a person/victim who has suffered sexual or other harassment and ill-treatment in the workplace may
turn for advice, support and information on measures to protect against sexual and other harassment
and ill-treatment.
Combating corruption and bribery
In performing their duties, exercising their rights and obligations and taking business decisions and
actions on behalf of Cinkarna Celje d.d., employees are obliged to consider the best interests of the
Company before their own interests or the interests of third parties. Donations and sponsorships are
made in accordance with the Company's mission, vision and values, mainly in the sports and cultural
fields.
We seek and develop competitive advantages by increasing our own productivity and efficiency, never
through unethical or illegal activities. We compete in the marketplace in a fair and honest way.
Appropriate and expected conduct is further defined in the Code of Ethics and Conduct. A mechanism
is in place to disclose or report possible improper practices and cases of corruption, which have not
been identified to date.
Internal control and risk management system in relation to the financial reporting process
We have a system of operational and supervisory internal controls in place at all levels and in all areas
of our business to manage the risks affecting our ability to achieve our objectives. These are targets
for:
− efficiency and business performance,
− reliability of financial reporting,
− compliance with legal and internal regulations.
The control activities and the persons responsible are set out in internal documents (job descriptions,
authorisations, organisational regulations, internal rules, rules of procedure).
At the Company, we ensure the following:

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− Accounting control of data, which involves assessing the accuracy of accounting data and
correcting any irregularities identified. Implementation is the responsibility of the Accounting
Department and the Finance Department;
− Verification of the reliability of accounting data, carried out by means of an inventory of assets
and debts. The inventory is carried out by a permanent inventory commission in accordance
with the annual inventory schedule. The head of the inventory and the members of the
inventory commission are organised in the Accounting Department. Special inventory
committees may also be appointed by the Company's Management Board for specific types of
inventories or extraordinary inventories;
− Assessing deviations between the magnitude of what has been achieved and what was
planned, which can show shortcomings in implementation, as well as in the planning of
objectives. These activities are carried out within the Accounting Department;
− Internal control over the implementation of the prescribed procedures in the areas of
procurement, storage and consumption of materials and production, storage and sale of
products (control of the use and approval of the prescribed documentation, analysis of any
discrepancies and proposal of measures). These activities are carried out within the
Accounting Department and the management of the Company;
− Internal controls in the computerised information system relating to the management,
infrastructure, security, procurement, development and maintenance of software support are
provided by the IT Department. The completeness and accuracy of data capture and
processing is ensured by application-specific controls or by controls at the users of the
software solutions;
− The system of internal controls is complemented by a system for carrying out assessments
based on:
• ISO 9001 – Quality Management Systems,
• ISO 14001 – Environmental Management Systems and the EMAS regulation for BU
Kemija Mozirje,
• ISO 45001 – Occupational Health and Safety Systems;
− Internal audits of processes, carried out by qualified internal auditors, in order to verify that
activities are performed in accordance with the requirements of the management system and
that the management system in place is adequate and effective to achieve the objectives set.
External audits are carried out by a selected certification company;
− Audit of the annual accounts by an external audit firm;
− Once a year, based on a decision of the Management Board, a review of the functioning of the
operational and supervisory internal controls. The Management Board determines by
resolution the responsible party, the areas of control and the timetable for the control.
The Internal Audit Department was set up in 2016. Based on an adopted core charter, rules of
procedure and plan, it has been fully operational since 2017.
Deviations identified in each form of internal control are analysed by the persons responsible and the
management of the Company and, on that basis, action is taken to eliminate or prevent the causes of
risks that have caused or could cause deviations from the rules and objectives set by the Company.
Information on the functioning of the Company's General Meeting, including its powers,
shareholders' rights and their exercise
The General Meeting is convened by the Management Board of the Company on its own initiative, at
the request of the Supervisory Board or of the shareholders of the Company representing one
twentieth of the share capital. The General Meeting takes note of the annual report and validly decides
at the meeting by a majority of the votes cast, in particular on the following:

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− use of balance sheet profits,
− appointment of the members of the Supervisory Board,
− discharge of the members of the Company's Management Board and Supervisory Board,
− appointment of the auditor, etc.
It decides, in particular, by a three-quarters majority on the following matters:
− amendments to the Articles of Association,
− measures to increase or reduce share capital,
− changes in the Company's status and dissolution, and in any other case provided for by law or
by the Articles of Association.
Shareholders may attend the General Meeting and exercise their voting rights only if they have notified
the Company's Management Board in writing of their attendance at the General Meeting not later
than the end of the fourth day before the General Meeting. At the General Meeting, the number of
votes of each shareholder is determined by the votes of the shares which, according to the share
register, are held by that shareholder as at the end of the seventh day preceding the date of the
General Meeting. Shareholders may exercise the rights attached to their shares directly at the General
Meeting or by proxy. The proxy must be given in writing and lodged with the Company. As a general
rule, one General Meeting is held per year.
Identification and management of impacts
The mission and vision of Cinkarna Celje d.d. is based on sustainable development, which means that
we strategically identify and manage all significant impacts on the environment, society and the
economy, while at the same time identifying and managing all significant impacts that the wider
society has on the Company (environmental-climate, social and economic-political aspects). Due to the
complexity of the impacts, which are dynamically changing, we have identified the key material
impacts according to the three pillars of Environment, Society and Governance (ESG), and ranked them
in order of importance in an inter-stakeholder dialogue with representatives of the stakeholder groups.
More on this is revealed in the Matrix of Importance section.

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Figure: Demonstration of the interdependence of impacts between Cinkarna Celje d.d. and key
stakeholders in the context of sustainable management (Environment, Society, Governance – ESG)
The commitment to sustainability is set out in the Quality Assurance, Environmental, Health and Safety
Policy, which is approved by the CEO, the Code of Ethics and Conduct, and the Integrated Management
System Rules of Procedure, which are prepared by the responsible departments and approved by the
Management Board.
The highest governance body is involved in compliance monitoring and in the processes of identifying
and managing Cinkarna Celje's impacts on the economy, the environment and people in the context
of risk management systems, framework and performance targets, and in communicating the results
of audits, inspections and assessments.
Top management delegates responsibility for managing impacts to the responsible persons in each
department in the Company, either by means of a job description sheet or by delegation of authority.
Identified non-conformities from audits, inspections and assessments are addressed in the relevant
organisational units or processes. The implementation of the correction is monitored by the highest
authority through a reporting system of performance targets, review of the realisation of investments,
projects, measures and the correction of non-conformities. The highest governance body
communicates directly with stakeholders or authorises the responsible departments to do so.
The effectiveness of the organisation's processes is reported to the highest governance body:
− once a year at the annual management review,
− four times a year to the wider College of the Management Board,
− once a year at the meeting of internal auditors of integrated management systems,
− once a year at a meeting with external auditors of integrated management systems,
− at project management team meetings,
− through internal audit reports,
− through records of business units and departments.

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At Cinkarna Celje d.d., we follow and comply with all legal obligations under national and European
legislation. During the reporting period, there were no cases of fines or other sanctions for non-
compliance with legal obligations. As a rule, cases of non-compliance are detected by chance
discoveries and audits by the Internal Audit Department. Appropriate action is taken depending on the
findings.
President of the Management Board
Aleš Skok, univ. dipl. in chemical engineering technology, MBA – USA
Management of the Company
Member of the Management Board – Deputy Chairman of the Management Board – Technical Director
Nikolaja Podgoršek Selič, univ. dipl. in chemical engineering, spec.
Member of the Management Board – Works Director
Filip Koželnik, Master of Business Studies

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Statement of non-financial performance
Responsible management, which takes into account and pursues the objectives of sustainable
development in the areas of corporate performance, social responsibility and respect for the natural
environment, is at the heart of our strategic choices. In 2022, we embarked on an even bolder and
more comprehensive journey to align our business with environmental, social and governance (ESG)
considerations, which will also underpin our strategy for the next five-year period 2024-2028. We
recognise that identifying and effectively managing climate-related risks is a key consideration for our
short- and long-term performance and an important aspect of our relationship with our stakeholders.
We are therefore progressively integrating sustainability considerations more comprehensively into
our strategy and all our processes, depending on their importance.
The highest governance bodies are actively involved in setting and implementing sustainability policies
and are responsible for ensuring that sustainability drives development and is part of the Company's
vision and mission. The responsibilities of the highest governance body are set out in the Corporate
Governance Statement. Governance is based on an ethical approach towards employees, external
stakeholders and competitors, and on recognising the impact on the social and natural environment.
Sustainability due diligence is an ongoing practice at Cinkarna Celje as part of the management and
control systems that identify, prevent, mitigate and address actual and potential negative impacts on
the environment and people (including human rights) associated with our operations. These include
negative impacts directly related to our own activities as well as (potentially) negative impacts of our
products or services through business relationships.
Our sustainability due diligence responds to changes in the Company's activities, business
relationships, operations, purchasing and sales. Our processes are based on the international
instruments of the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for
Multinational Enterprises.
In the report, we disclose the following aspects of the sustainability due diligence:
− All risk areas (under Risk and Opportunity Management)
− Audits - internal and external, financial and legal due diligence (under Integrated
Management System)
− Employee engagement and satisfaction due diligence (under Employee Relations)
− Supplier due diligence, ISO 14000 compliant (under Supplier Relations)
− Customer satisfaction due diligence (under Customer Relations)
− Environmental due diligence (under Our Approach to the Environment)
Our own expectations and those of external stakeholders were tested in 2022 using a materiality
matrix. We prioritised 12 environmental indicators and 18 corporate and governance indicators. In this
way, we identified which areas are most important to us and our stakeholders. We present the
stakeholders and the materiality matrix in more detail in the Stakeholder Relations section.
Our employees are also important stakeholders, and we are committed to providing the right
conditions for their personal and professional development, health, safety and well-being at work.
Recruitment and staffing is based on the principle of non-discrimination and equal opportunities. We
ensure regular professional development and encourage innovation among our employees. We are
aware of the high age structure of our employees and we strive to attract new young and technically
qualified staff, including through a mentoring system and the awarding of scholarships. We respect
the right of employees to freedom of association within the Company's representative trade unions.
We report on our relations with our employees in the Employee Relations section.

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We operate in the chemical industry, which is subject to certain occupational health and safety risks,
so we regularly invest in safety equipment, improve technological processes and update technologies,
educate our employees and introduce activities to prevent workplace accidents. We are ISO 45001 –
Occupational Health and Safety certified and have a system in place to assess workplace risks according
to their incidence and intensity. Our overarching goal is zero injuries at work. We encourage our
employees to lead a healthy lifestyle. As part of our health promotion programme, we offer them
various activations such as various sports activities, preventive health check-ups, training, etc. More
on our approach in this area is defined in the Occupational Health and Safety section.
We operate in a global market and are part of global supply chains. We evaluate our key suppliers
annually. The assessment includes checking whether the supplier is certified to ISO 14001 -
Environmental Management Systems, or whether and how it manages emissions to air and water, raw
material and energy efficiency, packaging waste, and excessive noise. In the future, we will also include
other sustainability indicators in the assessment, taking into account the Environmental, Social and
Governance (ESG) domains, which will be set out in the Supplier Sustainability Code of Conduct. Our
key supplier groups and how we assess our supply chain are set out in the Supplier Relations section.
Our business is mainly focused on the European market, where we have identified an opportunity to
develop high-quality products with higher added value. We are aware that market demands are
increasing and require greater flexibility, so we are developing new solutions in our flagship product
titanium dioxide pigment and other supporting programmes such as copper fungicides, polymers and
metallurgy. We are also launching a new substrate, Humovit EKO. Our customer relations, new product
development and complaint handling are described in the Customer Relations section.
We recognise the importance of developing the local environment in which we operate, which is why
we invest in sport, culture and practical training for young people. We participate in socially
responsible activities in the local environment and support the most vulnerable groups. We
communicate regularly with the external professional and general public and build good neighbourly
relations, including through participation in various events, open days, press conferences and other
socially responsible actions. We regularly work with schools to raise awareness among young people
about the role of the chemical industry in tackling climate change and the low carbon transition. We
explain how we work with the local community in the Local Community Relations section.
We strive to reduce our negative impacts and increase our contribution to society and the natural
environment, which is why we invest in the best available technologies, renewable energy, efficient
energy management, responsible waste management and innovative solutions for the reuse of waste
materials, as described in the section Our Approach to the Environment. We support and carry out
research to protect water resources, soils and natural habitats, and to conserve and restore
biodiversity. We regularly monitor emissions to air and control emissions below the permitted limit.
We also demonstrate our responsible attitude towards the environment by participating in the
Responsible Care Programme for the Chemical Industry, which is our voluntary commitment to ensure
continuous improvements in environmental protection, health and safety at work, often beyond the
regulatory requirements. Environmental and other risks are managed through an established ISO 9001
quality system, ISO 14001 environmental management system and ISO 45001 occupational health and
safety system, and we are registered in the Environmental Management and Audit Scheme (EMAS) at
the business unit Kemija Mozirje. We also regularly comply with legislative requirements in the
environmental field.

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Report on environmentally sustainable economic activities and investments of Cinkarna
Celje d.d. for 2021 and 2022
Cinkarna Celje d.d. discloses information on how and to what extent its activities are related to
economic activities that are considered environmentally sustainable in accordance with Articles 3 and
9 of the Taxonomy Regulation (Regulation (EU) 2020/852 of the European Parliament and of the
Council of 18 June 2020 establishing a framework for the promotion of sustainable investments and
amending Regulation (EU) 2019/2088).
Disclosure refers to Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing
Regulation (EU) 2020/852 of the European Parliament and of the Council by laying down technical
screening criteria for determining the conditions under which an economic activity is considered to
contribute significantly to mitigating or adapting to climate change, and for determining whether that
economic activity does not significantly impair any of the other environmental objectives.
Proportion of revenue from products or services related to economic activities aligned with the
taxonomy
Cinkarna Celje d.d. specialises in the production and marketing of titanium dioxide, an activity that has
not yet been assessed for suitability or compliance with the taxonomy, i.e. it is not listed among the
taxonomically acceptable activities in terms of meeting the climate objectives. This does not in any
way imply that the activity is not carried out with a high degree of environmental responsibility or
decarbonisation efforts, nor does it imply that it does not have actual or potential significant impacts
on the decarbonisation of the economy (in particular as an enabling activity for the construction
industry).
The activities of Cinkarna Celje d.d. are complemented by a wide range of other products such as:
powder varnishes, masterbatches, zinc wires and alloys, agricultural products, manufacture of
chemical process equipment and sulphuric acid, with which the Company also seeks opportunities for
taxonomically aligned revenues in terms of so-called enabling activities.

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Table: Proportion of revenue from products or services related to economic activities aligned with the
taxonomy – disclosure for Cinkarna Celje d.d. for 2021 and 2022
Economic
activity
NACE
Code
Description of
activity according to
the taxonomy
2021
2022
Revenue in
EUR
Revenue
as %
Revenue in
EUR
Revenue
as %
A) Activities aligned with the taxonomy
Waste
management
E38.11
Collection and
transport of source-
separated fractions
of non-hazardous
waste
62,492
0.03
81,123
0.04
Waste
management
E38.32,
F42.99
Material recovery
from non-hazardous
waste (copper
consumption and
recovery)
4,028,476
2.09
4,751,526
2.09
Total revenue from activities aligned to the
taxonomy
4,090,968
2.13
4,832,649
2.13
B) Activities unacceptable for the taxonomy
Revenue from activities not compatible for
the taxonomy
188,371,131
97.87
222,320,467
97.87
Total A + B
192,462,100
100.00
227,153,116
100.00
Net revenues of Cinkarna Celje d.d. amounted to EUR 227,153,116 in 2022 and EUR 192,462,100 in
2021, of which revenues from products or services related to economic activities aligned with the
taxonomy amounted to EUR 4,832,649 (EUR 4,090,968 in 2021), or 2.13%. In 2022, EUR 222,320,467
(2021: EUR 188,371,131) of revenue was from activities not compatible with the taxonomy,
representing 97.87 per cent.
The activity taxonomically aligned to the NACE classification E38.11. is the separate collection of scrap
metals, paper and plastics and sales to processors of Cinkarna Celje d.d., which generated revenues of
EUR 81,123 in 2022 and EUR 62,492 in 2021, or 0.04% of total revenues in 2022 and 0.03% of total
revenues in 2021. All separately collected and transported non-hazardous waste that is separated at
source is intended to be prepared for reuse or recycling.
From material recovery from non-hazardous waste (consumption and recovery of copper), under NACE
classification E38.32, F42.99, Cinkarna Celje d.d. generated revenues of EUR 4,751,526 or 2.09% of
total revenues in 2022, and revenues of EUR 4,028,476 or 2.09% of total revenues in 2021.
Zinc alloys are produced using scrap aluminium and scrap copper as alloying elements. Zamak residues
are used as recycled material in the production of zinc alloys.
We process waste copper, waste copper chloride and copper ash from the sludge from washing fishing
nets. The technological rejects from the production of masterbatches (cakes, spaghetti) are processed
into granules and added in a certain proportion to the input materials for the production of
masterbatches. The rejects from the production of powder varnishes (filter dust, larger particles) are
processed into chips and added in a certain proportion to the materials used in the production of
powder varnishes.

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An essential contribution to climate change mitigation is that the activity converts at least 50% (by
weight) of separately collected non-hazardous waste recovered into secondary raw materials that are
suitable for replacing untreated materials in production processes.
For the activity, we have reviewed the technical criteria set out in the delegated documents. The
activity does not cause significant harm to other environmental objectives.
Indicators are calculated on the basis of the definitions in Annex 1 Key Performance Indicators for Non-
Financial Enterprises of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021
supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying
the content and presentation of the information to be disclosed by undertakings to which Article 19a
or 29a of Directive 2013/34/EU applies on their environmentally sustainable economic activities, as
well as the methodology for fulfilling the disclosure obligation.
The key performance indicator for revenue was calculated as the fraction of net revenue derived from
products or services, including intangible ones, related to economic activities aligned with the
taxonomy (numerator) divided by net revenue (denominator).
Revenue comprises revenue recognised in accordance with paragraph 82(a) of International
Accounting Standard (IAS) 1 as adopted by Commission Regulation (EC) No 1126/2008 (1).
Proportion of investment in fixed assets in products or services related to economic activities
aligned with the taxonomy
Table: Proportion of investments in fixed assets in products or services related to economic activities
aligned with the taxonomy – disclosure for Cinkarna Celje d.d. for 2021 and 2022
Economic
activity
NACE
Code
Investment
description
2021
2022
Investments
in fixed
assets in
EUR
Investments
in fixed
assets as %
Investments
in fixed
assets in
EUR
Investments
in fixed
assets as %
A) Investments in fixed assets aligned with the taxonomy
Energy
D35.11
and
F42.22
Energy
production
using
photovoltaic
technology
313,227
2.77
736,984
6.99
Total investments in fixed assets
aligned with the taxonomy
313,227
2.77
736,984
6.99
B) Investments in fixed assets not compatible with the taxonomy
Total investments in fixed assets not
compatible with the taxonomy
11,012,181
97.23
9,809,511
93.01
Total A + B
11,325,408
100.00
10,546,495
100.00
The total investments in the fixed assets of Cinkarna Celje d.d. amount to EUR 10,546,495 in 2022 and
EUR 11,325,408 in 2021. Investments of Cinkarna Celje d.d. in fixed assets, aligned with the taxonomy,
amounted to EUR 736,984 in 2022 and EUR 313,227 in 2021, representing 7% of total fixed asset
investments in 2022 and 2.77% in 2021. Investments in fixed assets not compatible with the taxonomy
amounted to EUR 9,809,511 in 2022 and EUR 11,012,181 in 2021, representing 93% of total
investments in fixed assets in 2022 and 97.23% in 2021.

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The taxonomically aligned activity is the production of electricity using photovoltaic technology (NACE
Revision 2 statistical classification of economic activities – D35.11 and F42.22).
We have reviewed the technical criteria for the activity. The activity makes a significant contribution
to climate change mitigation. We have assessed the activity from a climate change adaptation
perspective. We have assessed which physical climate risks listed in Appendix A, Section II of the
Commission Delegated Regulation (EU 2021/2139 of 4 July 2021) could affect the viability of the
economic activity during its expected lifetime. We have not identified any risks as material.
The PV power generation facility is not located on biodiversity site land (the location is on the roof of
a building in an industrial setting), and therefore no mitigation measures are required. The equipment
used is durable and potentially at least partially recyclable, thus meeting the objectives of the
transition to a circular economy.
The proportion of investments in fixed assets was calculated by including in the denominator the
increase in tangible and intangible assets during the financial year before depreciation and any
remeasurements, including those arising from revaluations and impairments, and excluding changes
in fair value. The denominator also includes increases in tangible and intangible assets arising from
business combinations. We have included in the numerator the part of fixed asset investments
included in the denominator that is related to assets or processes associated with economic activities
aligned with the taxonomy.
An investment in fixed assets that is aligned with the taxonomy expands the economic activity of the
enterprise aligned with the taxonomy.
Proportion of investments in working capital in products or services related to economic activities
aligned with the taxonomy
Table: Proportion of investments in working capital in products or services related to economic activities
aligned with the taxonomy – disclosure for Cinkarna Celje d.d. for 2021 and 2022
Economic
activity
NACE
code
Investment
description
2021
2022
Investments
in working
capital in
EUR
Investments
in working
capital as %
Investments
in working
capital in
EUR
Investments
in working
capital as %
A) Investments in working capital aligned with the taxonomy
Waste
manage-
ment
E38.32
and
F42.99
Material
recovery from
non-hazardous
waste (copper
consumption
and recovery)
2,695,769
1.72
3,733,945
1.89
Total investment in working capital
aligned with the taxonomy
2,695,769
1.72
3,733,945
1.89
B) Investments in working capital not compatible with the taxonomy
Total investments in working capital
not compatible with the taxonomy
154,322,944
98.28
194,349,114
98.11
Total A + B
157,018,713
100.00
198,083,059
100.00

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Cinkarna Celje d.d. invested EUR 198,083,059 in 2022 and EUR 157,018,713 in working capital in 2021,
of which EUR 3,733,945 in 2022 (EUR 2,695,769 in 2021) were taxonomy-aligned investments in
working capital, representing 1.89% (1.72% in 2021). The investments in working capital were related
to the activity of material recovery from non-hazardous waste (copper consumption and recovery),
which falls under NACE classification codes E38.32 and F42.99.
The proportion of investment in working capital is calculated as the numerator divided by the
denominator.
The denominator includes direct non-funded costs associated with the daily servicing of tangible fixed
assets by the Company or third party to which the activities are outsourced, which are necessary to
ensure the continuous and efficient operation of such assets.
The numerator is equal to the part of investments in working capital included in the denominator,
which is any of the following:
a) Related to the assets or processes associated with the economic activities aligned with the
taxonomy, including training and other human resource adaptation needs, and direct non-
investment costs representing research and development;
b) Part of a fixed asset investment plan to expand economic activities aligned with the taxonomy
or to enable economic activities acceptable to the taxonomy to become aligned with the
taxonomy within a predetermined timeframe;
c) Related to the purchase of output from economic activities aligned with the taxonomy and
individual measures that make the targeted activities low-carbon or lead to reductions in
greenhouse gas emissions, and individual measures for the renovation of buildings listed in
delegated acts adopted pursuant to Article 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of
Regulation (EU) 2020/852, provided that such measures are put in place and implemented
within 18 months.
Management of the Company
President of the Management Board
Aleš Skok, univ. dipl. in chemical engineering technology, MBA – USA
Member of the Management Board – Deputy Chairman of the Management Board – Technical Director
Nikolaja Podgoršek Selič, univ. dipl. in chemical engineering, spec.
Member of the Management Board – Works Director
Filip Koželnik, Master of Business Studies

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Strategic orientations
Our five-year strategy for 2019-2023 expires in 2023. A new strategy for the five-year period 2024-
2028 is under preparation, which will be based on long-term sustainable values and orientations, in
line with circular economy models and the strategic objective of decarbonisation.
The Company will:
• Meet customers' needs comprehensively through the services provided by its business;
• Build partnerships with suppliers and customers;
• Continuously create value for its stakeholders;
• Maintain and develop a supportive environment for its employees; provide training and
development for its staff; and progressively improve its age structure by recruiting young,
professionally qualified staff;
• Create a partnership with the social environment, which is the basis for the long-term
development of both the Company and the social community as a whole;
• Strive for sustainability in its activities.
The strategic objectives are:
• Maintain its position as a reliable supplier in the field of titanium dioxide pigment sales;
• Remain a dynamic, flexible and customer-oriented company;
• Ensure comprehensive customer service;
• Introduce modern technologies for efficient energy use and environmentally sound production;
• Pursue operational excellence, quality, and customer and employee satisfaction.
Plan for 2023
In the next financial period, we intend to stick to our long-term business strategy, which is primarily
based on an active marketing approach to find and develop the most profitable buyers and markets,
to increase market shares in the highest quality markets and to build long-term partnerships with key
customers. We plan to adopt a more restrictive policy in the area of cost management of materials,
raw materials, energy and services. At the same time, we recognise that employees are an important
cornerstone of business success and we will continue to work with the representative trade unions
and employee representatives to ensure that employee remuneration also adequately reflects the
Company's performance and the quality of its results.
We focus on maximising production capacity, exploiting market potential to sell higher value-added
products, optimising production costs and implementing investment plans. Financial management is
traditionally conservative, the Company is financially stable, cash levels are high and allow for a smooth
and timely coverage of all liabilities.
The Company's strategy will continue to be focused on ensuring the highest possible levels of volume
production and sales and on exploiting the potential of the most profitable pigment markets. We will
allocate sales volumes to the most profitable markets with a high degree of flexibility. Traditionally,
we have followed the principles of a conservative financial policy and a sound cash position, conscious
of market volatility and the associated risks. At the same time, good performance, the existence of
cash surpluses and forecasts also imply appropriate and adequate rewards for our owners.
In terms of enabling sales growth, investments will be made mainly in the procurement of new
titanium dioxide production facilities and in maximising the availability of existing ones. Investments
will be made on a programme-by-programme basis according to need, capacity and prospectivity, and

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in line with the five-year strategic plan. We will invest primarily in projects to remove bottlenecks,
increase energy efficiency, reduce negative environmental impacts and improve safe and healthy
working conditions. The largest share of our investments will be in titanium dioxide production.
The Company will also focus on managing the purchasing process in the face of unpredictable business
cycles with significant changes in selling and purchase prices, which can have a significant impact on
the operating result and cash flow.
In the coming years, a new cycle of investment will be made, which we need for stable ongoing
operations. With the investment in expanding production capacity at the existing site, the production
volume of titanium dioxide pigment is approaching the regulatory ceiling and alternative options will
need to be sought in the future to further grow the business.
Investments made and planned
In 2022, we spent EUR 10.55 million on investments, the purchase of fixed assets and replacement
equipment, and environmental investments, representing just under 70% of the planned budget for
2022.
Investment realisation was 56%. We are behind plan due to a number of factors, the most important
of which are the search for an appropriate solution, the documentation procedures, the long delivery
times and a lack of human resources. Realisation for replacement equipment is 108%. Here we slightly
exceeded the plan, mainly due to the sharp increase in delivery times. In fact, stock-outs of materials
can seriously jeopardise our operations. The largest deviations from the plan were in the area of fixed
asset purchases, where we achieved a poor 43% realisation. The reasons for the underperformance
are similar to those for investments.
Investments made in 2022
As usual, in 2022, the largest share of the invested funds was earmarked for titanium dioxide
production to continue the activities of the multi-year project.
The third line of the second stage of neutralisation of waste acid has been successfully completed with
a technical inspection and an operating licence.
An additional sand mill for grinding the calcinate after wetting is supplied. Site preparation and
installation will be completed in 2023. The mill is planned to be commissioned in the second quarter.
We continued with the planned work to implement dust control measures in titanium dioxide
production.
An additional flocculant device has been installed to allow the addition of a different flocculant to
accelerate the settling of the suspensions on the white part and the final processing.
We continue to successfully build solar power plants. In the energy field, we have also invested in
optimising the steam pipeline and carried out activities to enable one of the calcination furnaces to
burn extra-light fuel oil (ELKO).
We also carried out investment work on the rehabilitation of individual facilities (TiO
2
operational
maintenance building – phase III, replacement of windows in the powder varnish production plant at
Kemija Mozirje).

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The main part of the funds planned for the use of environmental provisions (36%) was earmarked for
the rehabilitation of the Bukovžlak Non-hazardous Waste Landfill. A test field for the new C1 drainage
under the Bukovžlak high embankment barrier was carried out and an expert report on the
implementation was obtained, which is the basis for the design of the complete drainage line.
Plans for 2023
The total planned investment in 2023 is EUR 20,479,040, which includes capitalised own products and
services of EUR 1,401,325, but excludes the planned environmental decommitment activities of EUR 2
million. The planned value of investments, including capitalised own products and excluding the
planned environmental decommitment, is 44% higher than the 2022 plan, representing 10.2% of
planned sales in 2023 and 157% of depreciation.
69% of the total investment will be for capital expenditure, 24.6% for the purchase of replacement
equipment and 6.4% for the purchase of individual fixed assets.
Chart: Proportion of funding to planned investments in 2023
Investments will be made on a programme-by-programme basis, according to need, capacity and
prospectivity, and in line with the five-year strategic plan. With the aim of increasing energy efficiency
and self-sufficiency, a significant part of the investment funds will be earmarked for:
• Projects to build additional solar power plants, an electricity grid and transformer substations
to connect the solar power plants to the grid;
• Developing projects to cogenerate electricity from the steam produced by burning sulphur;
• Preparing the project, obtaining the building permit and ordering the equipment to install a
battery storage system;
• Better utilisation of steam peaks;
• Better use of waste heat;
• Implementing measures to reduce electricity consumption (replacing lighting and energy-
wasting electric motors, installing frequency converters, optimising the operation of
compressors for compressed air production).
As a precautionary measure against the foreseen possibility of a partial reduction of natural gas supply,
we will rehabilitate the extra-light fuel oil (ELKO) tank, carry out the necessary installations and equip
one calcination furnace with a burner that allows the consumption of ELKO in addition to natural gas.

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A significant part of the investment will also be devoted to the implementation of connections that
will allow the internal recycling of a large part of the process water.
While our investment focus has shifted to energy transformation in the current circumstances, we
continue to invest significantly in projects to address bottlenecks, reduce negative environmental
impacts and improve safe and healthy working conditions. The largest share of our investments will be
in titanium dioxide production, where we will continue to prepare projects and permits and partially
implement investments:
• Installation of an additional 12.10 C storage tank for the discharge of the solution from the
unloading towers;
• Modernisation of the storage and preparation of lime and calcite slurry;
• Installation of a central vessel for the third vacuum cooling line;
• Installation of a fifth sulphacide reactor for the treatment of calcination flue gases;
• Expansion of capacity in surface finishing 2.
To address the bottlenecks in titanium dioxide production, we continue to invest in:
• Pumping the solution from 12.01 A into the unloading towers;
• A third filter press for spinning metatitanic acid;
• The completion of the project to install a third sand mill for wet grinding of calcinate.
Some major investments are also foreseen in 2023 in the implementation of preventive measures to
reduce dust at BU Titanov dioksid.
We will upgrade the data transmission network for the production processes at BU Titanov dioksid and
upgrade the control and management of at least two processes with the most outdated software. The
upgrade of the production information system Spekter is underway. To enhance information security,
a virtual environment of PCS7 servers and operating stations is planned to be set up, thus enabling the
establishment of a redundancy system.
In the sulphuric acid production unit, absorption tower 1 and heat exchanger IT2 will need to be
replaced during the next overhaul.
At BU Kemija Celje, we will modernise the blowing system of reactors for the production of copper
preparations and set up automated addition of sodium hydroxide.
We are not planning any investments in BU Kemija Mozirje, but we will prepare a project to install a
new line for white masterbatches and purchase some fixed assets.
BU Polimeri will replace an obsolete CNC lathe with a new one.
Investments will also take place at our Bukovžlak and Za Travnikom sites. At Bukovžlak, the design and
construction of drainage C under the high embankment barrier and the sealing curtain on the NE
barrier of the Bukovžlak Non-hazardous Waste Landfill (ONOB) will be carried out. At the Bukovžlak
high embankment barrier, it is planned to design and start construction of a drainage ditch with a
gauging point and a dewatering facility, and at the Za Travnikom high embankment barrier, to design,
obtain permits and possibly to start implementation of the rehabilitation of the eastern and western
flanks. Environmental provisions will be used for these purposes.
The Ministry of the Environment is planning to rehabilitate plot 115/1 of Teharje, where our gypsum
pipeline runs, in the coming year. In order to avoid subsequent restrictions on rehabilitation in the

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event of a leak, we need to relocate our gypsum pipeline at the same time as the rehabilitation of plot
115/1.
In line with plans, actual needs and financial possibilities, we will also develop and implement new
projects during the year, as well as procure replacement and new individual items of fixed assets.
Major investments for the purchase of replacement equipment and fixed assets will include:
• Renewal of at least one processing tower;
• Replacement of the first of two filter presses for pigment wringing;
• Renewal and upgrade of the sand filters in the Water Treatment Plant.
We also invest every year in measures to improve fire safety. We will also purchase some additional
equipment for quality control.
We plan financing from our own resources.
A more detailed overview of the investments foreseen is contained in the Investment, Fixed Assets
and Replacement Equipment Plan for 2023.

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Analysis of results and performance
Sales
Total sales in 2022 are 18% higher than the comparable period in 2021, with total sales or net sales
revenue reaching EUR 227.2 million. One of the highest monthly sales in 2022 was achieved in May,
when sales amounted to EUR 23.6 million, an all-time monthly record.
Total sales to foreign markets increased by 18% compared to the previous year. The increase in sales
to foreign markets is undoubtedly due to higher pigment selling prices. In absolute and relative terms,
the most significant increase in sales is to EU markets.
Table: Sales by market in 2021-2022, in EUR
Marker
2021 (in EUR)
2022 (in EUR)
ΔPY %
Slovenia
17,355,361
18,781,919
+8
EU
142,500,353
173,950,706
+22
Ex-YU
4,383,469
4,959,791
+13
Third countries
24,693,293
27,117,372
+10
Third countries – dollar markets
3,529,624
2,343,328
–34
Total
192,462,100
227,153,116
+18
Chart: Share of sales by market in 2022
Sales to the EU market are 22% higher than in the previous year. The outperformance was mainly
driven by higher pigment sales prices and volumes, as well as higher exchange prices for metals, i.e.
copper and zinc, which consequently impact the sales price of the product groups zinc alloys and wires
and copper fungicides. One of the key markets is Germany, where we generate 29.7% of our export
sales and 27.2% of our total sales. The importance of the German market has decreased slightly
compared to the previous year due to the objective maturity of the market.
Sales to the markets of the former Yugoslavia increased by 13%, due to higher value sales of pigment,
zinc products and copper fungicides.

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Domestic sales are up 8% compared to the same period in 2021. Sales growth was driven by sales
growth in all business units except BU Polimeri.
Sales to third country markets are up 4% overall compared to the same period of the previous year.
Again, the main contributor was the higher selling price of pigment. We continue to maintain minimum
control market shares in the US dollar markets, as larger volumes would be unsustainable due to the
specific conditions, which are certainly less favourable than in the European markets.
Chart: Sales value by market in 2020-2022, in EUR
The share of total exports in the Company's total sales in the year under examination was 91.7%, an
increase of 0.7 percent compared to the previous year. The increased share of exports relates to an
increase in value sales to the key markets of Germany, Italy, France and Turkey. The main share is
achieved through exports of titanium dioxide pigment.
The structure of sales by national market varies quarterly according to the conditions prevailing in each
market. Roughly speaking, the structure is determined by the profitability of the markets, the
marketing strategy, and the political-economic security and reliability of the markets.
Table: Sales by production programme in 2021-2022, in EUR
Production programme
2021 (in EUR)
2022 (in EUR)
ΔPY %
Titanium dioxide
156,788,783
187,495,664
+20
Zinc processing
6,364,355
8,240,209
+29
Varnishes, masters and printing inks
17,687,588
18,516,808
+5
Agro programme
7,990,692
8,399,825
+5
Other
3,630,682
4,500,610
+24
Total
192,462,100
227,153,116
+18
During the period under review, sales of the titanium dioxide pigment flagship programme reached
EUR 187.5 million. The EUR 30.7 million increase in value sales is due to higher average selling prices.
Pigment contract prices in Europe have been rising steeply until 2021, reaching a series of quarterly
records. The upward trend in pigment selling prices has moderated or reversed at the half year. There
is no doubt that consumption is moderating due to inflation in Europe and changing consumer

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sentiment. In industry, reduced purchasing interest is expected, also influenced by the uncertainty of
natural gas supply, which increases concerns about the European industry's operational performance.
Amongst others, some competitors have announced or already reduced pigment production in Europe,
mainly global producers with a portfolio of plants around the world that have leased energy products
at significantly lower prices in America or Asia. The price of energy is correlated with the price of the
ancillary raw materials needed to produce the pigment.
The zinc processing sales programme combines the product groups zinc wire, anodes and alloys. The
performance is 29% higher than in the comparable period of the previous year. The increase in sales is
mainly attributable to higher zinc exchange prices.
During the period under review, there was a 5% increase in sales of the varnishes and masters
programme on a comparable basis, mainly due to higher selling prices of masterbatches and powder
varnishes. This is the result of higher input prices.
Sales of the agro programme, which includes sales of copper fungicides, Pepelin, Copperas and
Humovit, increased by 5% compared to the comparable period in 2021. The increase is due to higher
sales prices of copper fungicides. These are higher on account of higher copper exchange prices and
an improved sales structure. In 2022, we continued to produce the highly marketable active ingredient
tribasic copper sulphate (TBCS). Sales of Humovit are at the level of the comparable period in 2021.
We are dependent on local and nearby market conditions for our soil sales as the product does not
bear the additional cost of transport to enter distant markets.
The "other" programme includes sales of thermoplastics, polymers, elastomers, aggressive media
transport systems (STAM), sulphuric acid, CEGIPS, merchandise, services and sales of discontinued
products and product groups. The value sales of this group are 24 % higher on a comparable basis. The
value sales of STAM are at a similar level. The value sales of sulphuric acid are 34 % higher. In the case
of the programmes of this group or category, it is also worth highlighting CEGIPS, which is 72% higher.
164.4 thousand tonnes of CEGIPS were sold, which is important in the context of the life extension of
the Za Travnikom facility.
Over the period under review, it can be seen that the relative proportions have changed again. The
share of BU Titanov dioksid is higher by 1.3 percent. In line with the higher value sales of metallurgical
products, BU Metalurgija's share is 0.3 percent higher. The other BUs show a decrease in their shares.
BU Polimeri's share declined comparatively, as business volumes coincided with investment activity in
the regional pharmaceutical and petrochemical industries. It is therefore essentially a contract-based,
fully customised production of technological systems, which is directly dependent on the investment
cycles of the industry in the region.
There are changes in the sales structure by business units. In the short term, the substantive changes
result in a smaller number of business units and, in the longer term, an increase in the relative
importance of the core programme, i.e. titanium dioxide.

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Operating result
In 2022, an operating result of EUR 53.2 million was achieved, 33% above the 2021 operating result of
EUR 40 million. Operating performance was therefore better than last year, but significantly above the
level of the business plan. This outperformance was driven by good volume sales and an increase in
the selling prices of the underlying product. The operating result including depreciation and
amortisation, or EBITDA, amounted to EUR 65.3 million, representing 29% of the sales achieved.
Compared to the previous year, EBITDA is 27% higher.
After accounting for the impact of financial income and expenses, a pre-tax result of EUR 52.7 million
is reported in 2022, with a profit of EUR 40 million in 2021. The pre-tax result is up 32% on the previous
year. A negative financing balance of EUR 460.1 thousand is achieved in 2022 (2021: negative financing
balance of EUR 20.1 thousand). This financing balance is the result of a negative exchange rate balance
of EUR 457.6 thousand, a negative balance of investment income, and interest expense of EUR 2.5
thousand. The negative financing balance comes from the forward purchase and sale of dollars. The
negative balance nevertheless represents an effective use of hedging instruments throughout the
financial year to manage the volatile movement of the USD/EUR currency pair in the procurement of
titanium-bearing ores.
The net result for the period amounts to EUR 43.4 million and is 31% higher than the result for 2021
(EUR 33.2 million). Taking into account the developments in the international economy on the titanium
dioxide pigment market and, in particular, the results of our competitors in the titanium dioxide
industry, we consider the result to be above average and above expectations. The net result comprises
the profit before tax and income tax of EUR 8.8 million (effective tax rate of 16.7%).
Shares – value and turnover
The share capital of Cinkarna Celje d.d., amounting to EUR 20,229,769.66, is divided into 8,079,770
ordinary freely transferable bulk shares. The shareholder structure is disclosed in the section General
Meeting/Capital structure.
The shares of Cinkarna Celje d.d. are listed on the standard quotation of the Ljubljana Stock Exchange
under the designation CICG. The single quotation price on the first day of trading, i.e. 6 March 1998,
was EUR 33.71 per share, or EUR 3.37 taking into account the share split in 2022.
The total number of shareholders as at the last day of 2022 was 2,321 and the total number of shares
in issue was 8,079,770, comprising 7,815,120 voting shares and 264,650 treasury shares.
The value of Cinkarna Celje d.d.'s share, listed on the Ljubljana Stock Exchange's first quotation (CICG),
fluctuated between EUR 22.4/share and EUR 32.0/share in 2022.
The market capitalisation of the Company on the last trading day of 2022 was EUR 185.8 million. The
market capitalisation of the Company on the last trading day of 2021 was EUR 209.3 million.

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Table: CICG share price evolution in 2022 by month (single month-end price) and in 2019-2021
Year
2019
2020
2021
2022
Month
12
12
12
1
2
3
4
5
6
7
8
9
10
11
12
CICG
price
in EUR
18.75
17.80
25.90
26.50
24.40
27.80
28.80
29.80
27.40
28.40
27.80
23.60
23.00
26.00
23.00
The average cumulative monthly turnover of Cinkarna Celje d.d.'s shares in 2022 was EUR 1.9 million,
58% higher than the average monthly turnover of EUR 1.2 million in 2021. The total annual turnover
was EUR 22.5 million (EUR 14.2 million in 2021). The Company has a liquidity maintenance agreement
in place for the shares.
Table: Share price and cumulative monthly turnover outliers in 2020-2022, in EUR
Year
2020
2021
2022
Highest
Lowest
Highest
Lowest
Highest
Lowest
Share price in EUR/share
20.30
12.50
25.90
17.40
32.00
22.40
Cumulative monthly turnover in
EUR 000
3,317.1
495.4
1,966.4
701.1
3,381.2
1,231.5
Dividends
On 15 June 2022, the General Meeting of Shareholders of the Company voted in favour of the counter-
proposal of the shareholder, the Association of Small Shareholders of Slovenia, to use the balance
sheet profit for 2021, which amounted to EUR 25.0 million. In accordance with the approved and voted
proposal/agreement, the major part of the balance sheet profit amounting to EUR 24.9 million was
paid out in the form of dividends. The dividend per share amounted to EUR 31.89 gross or EUR 3.19
after the share split, which is 52% higher than the dividend in 2021 and represents a dividend yield of
11%. The remainder, i.e. EUR 0.1 million, was carried forward as a profit carried forward.
The General Meeting of Shareholders granted the Company's Management Board the authority to
acquire treasury shares for a period of 12 months from and including 18 June 2022. The treasury shares
on the last day of 2021 comprised 26,465 shares or 264,650 shares after the split. No repurchases were
made in 2022.
The dividends paid and the P/E ratio with the corresponding calculation are shown in the Condensed
Business and Alternative Performance Measures section.
Expenditure and costs
The analysis of expenditure and costs below relates mainly to the costs of materials, raw materials,
and energy and labour. The most significant impact on the Company's performance is the trend in the
costs of materials, raw materials and energy, as the Company is capital intensive. Labour costs are
mainly determined by constructive dialogue between the social partners and business performance.
The Company did not incur any interest costs in 2022 due to the full deleveraging and cancellation of
financial debts before the end of 2014. The most important factor in the volume and dynamics of costs
is the situation in the global and European economy. Uncertainties related to the energy market and
supply chains are increasing. Prices of key commodities in the so-called "commodities" markets (non-
ferrous metals, steel, energy, basic chemicals) are on an upward trend. The gradual rise in energy prices
has been contained to the best of our ability, but further increases are inevitable. Price levels for
titanium-bearing raw materials are at higher levels.

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The combination of the above macroeconomic situation and the situation in the titanium dioxide
pigment industry has led to a closing of the upstream price cuts, with further closures expected in the
coming quarters. The upward pressure on labour costs has increased due to the situation in Slovenia
and the understandable rise in employee expectations, but the Company's remuneration policy has
enabled us to remain within our business performance plans.
The structure of consumption of raw materials, packaging and energy shows a deviation from 2021.
This is due to the different dynamics of change of the individual categories of direct production costs.
In relative terms, the most significant increase is in energy costs, which have risen significantly by 67%
due to energy risks. Similarly, the increasing bargaining power of suppliers is up by 2%. The dynamics
of raw material costs corresponds to the dynamics of production volumes. Packaging costs are lower
due to the focus on the B2B segment and the associated bulk packaging.
At the end of the period, raw materials accounted for the largest share of production costs (84.6%),
followed by energy (13.9%) and packaging (1.5%). Compared to the previous year, there has been a
marked change in the structure, with an increase of 2.3 percent in the share of energy.
In line with the increase in efficiency and profitability of the titanium dioxide industry and Cinkarna
Celje d.d., we implemented a motivating remuneration policy in 2022 and, within the realistic
possibilities, followed the dynamics of the business results, which exceeded both last year's and the
planned results. The starting points for the formulation of the remuneration policy were the
agreements and guidelines of the social partners at national and company level.
In 2022, we paid employees a holiday allowance of EUR 1,923.92 gross/employee in March. Due to the
excellent performance, we paid a Christmas bonus to all employees up to the average salary of EUR
2,024.03 as at the date of the decision, together with a bonus of EUR 890/employee.
The company-wide labour costs achieved are 2% higher in 2022 compared to 2021, and the labour
costs per employee are 8% higher in 2022 compared to 2021.
In 2022, the amount of depreciation charged is 8% higher than in the previous year, as a result of the
level of investment in 2021, which is below the level of 2018, when the EUR 22.6 million invested
significantly exceeded the amount of depreciation charged in that year. We plan to invest a
comparable amount in 2023.
In 2022, the Company did not incur any interest expense as it had no financial debt (the last time the
Company recorded interest expense was in 2014 for bank borrowings). Interest expense is therefore
not a factor in the Company's performance and the Company is no longer exposed to risk in the context
of potential changes in interest rates. The minimal negative balance of exchange rate differences and
other financial expenses of EUR 460,1 thousand still represents the effectiveness of the use of hedging
instruments to manage the volatile movement of the USD/EUR currency pair in the purchase of
titanium-bearing ores.
Otherwise, we performed above average during the period under review. We generated a net profit
of EUR 43.4 million. Corporate income tax for 2022 was levied at EUR 8.8 million.

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Table: Operating expenses in 2021-2022, in EUR and %
Operating expenses
2022
2021
Value in EUR
Share in %
Value in EUR
Share in %
Cost of materials and services
151,383,601
76
111,491,064
71
Labour costs
29,483,416
15
28,888,986
18
Depreciation and amortisation
12,150,684
6
11,281,415
7
Other expenses
5,265,971
3
5,497,719
3
Total operating expenses
198,283,672
100
157,159,184
100
Assets and resources
The source of financing of the achieved volume of operations in 2022 consisted mainly of own funds
accumulated in the ordinary course of business and, to a lesser extent, of corporate debt. The financing
of the additions and upgrades of production and operating equipment and buildings and of
investments in progress was carried out exclusively using own funds accumulated in the ordinary
course of business. In the past year, we have not used bank resources. We have paid particular
attention to the management of net current or short-term assets, thereby ensuring a reliable, secure
and stable cash position or liquidity at all times.
Table: Funding in 2021-2022, in EUR and %
Assets
2022
2021
Value in EUR
Share in %
Value in EUR
Share in %
Non-current assets
108,559,530
43
110,511,613
46
Current assets:
142,388,473
57
131,373,196
54
– Stocks
72,754,823
29
40,298,476
17
– Trade receivables
24,290,543
10
31,172,903
13
– Cash
45,210,098
18
59,746,594
25
– Other current assets
133,009
0
155,223
0
Total assets
250,948,003
100
241,884,809
100
The share of non-current (long-term) assets in total assets decreased by 2.4 percent to 43.3% in 2022
compared to the end of 2021. The largest category of non-current assets is tangible fixed assets
(95.9%). They decreased in value by EUR 1.8 million or 2% in 2022 for the difference between the
amount invested in tangible fixed assets and the actual depreciation charged. Long-term investments
increased by EUR 0.3 million in 2022 due to the revaluation to fair value and comprise shares and
interests in companies. Deferred tax assets decreased by 36% due to the reversal and utilisation of
provisions and due to the tax-recognised valuation allowance on receivables created in previous years.
Other non-current assets consist of emission allowances obtained free of charge from the State. Their
value as at 31 December 2022 is EUR 15 thousand higher than the value as at 31 December 2021 due
to the positive balance between the acquisition of the allowances for 2022 and their surrender to ARSO
for CO
2
emissions for 2021.
The share of current assets in total assets increased by 2.4 percent compared to the end of the
previous year to 56.7%. The most important categories in the structure of current assets in terms of
value are stocks (51%), cash and cash equivalents (32%), and trade receivables together with other
current assets (17%).
Stocks increased by 81% compared to the end of 2021, with a 68% increase in the value of material
stocks (including advances), a 32% increase in work-in-progress stocks and a 122% increase in the total

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value of the Company's finished goods and merchandise stocks (all compared to the end of 2021). The
main reason for the increase in finished goods stocks is the reduced volume sales of pigment in the
last quarter of 2022.
Current financial receivables have no balance as at 31 December 2022.
Current trade receivables comprise current trade receivables from buyers and current trade
receivables from others (mainly from the State for input VAT). Compared to the situation at the end of
2021, receivables have decreased by 22%. Trade receivables decreased by 24%, while other current
receivables increased by 9%. The maturity breakdown of trade receivables later in the report shows
that the age structure of receivables continues to be of good quality and secured with an external
institution or other form of collateral.
Cash (and cash equivalents) represent 32% of total current assets, with a 24% decrease in cash
compared to the previous year due to the dividend payment of EUR 24.9 million at the end of June
2022 and the repayment of strategic purchase commitments at the end of December 2022. The
remaining value of cash is mainly due to the excellent performance of the full year.
Other current assets comprise prepaid expenses accrued. The value decreased by 14%.
Table: Capital and liabilities in 2021-2022, in EUR and %
Capital and liabilities
2022
2021
Value in EUR
Share in %
Value in EUR
Share in %
Capital
209,010,148
83
190,165,790
79
Non-current liabilities
18,831,718
8
23,273,002
10
Current financial liabilities
59,392
0
197,503
0
Current operating liabilities
19,518,145
8
23,242,724
10
Other current liabilities
3,528,600
1
5,005,790
2
Total capital and liabilities
250,948,003
100
241,884,809
100
The value of capital in the structure of liabilities to sources of funds as at 31 December 2022 represents
83.3%, an increase of 4.7 percent compared to the end of 2021. The amount of capital has increased
by 10% compared to the situation at the end of 2021. The increase (EUR 18.8 million) relates to the
difference between the net profit in 2022 of EUR 43.4 million and the payment of dividends on 24
December 2022. As at 31 December 2022, the Company holds 264,650 treasury shares after the split
of 1:10 on 15 August 2022 (no purchases of treasury shares were made by the Company in 2022).
There were no other significant movements in capital.
In total capital, the share capital amounts to EUR 20,229,769.66 and, as at 15 August 2022, consists of
8,079,770 ordinary freely transferable bulk shares (of which 264,650 are treasury shares, subscribed
in the treasury share pool), after a split of 1:10. The book value per share as at 31 December 2022
amounts to EUR 25.9 (up 10.2% since the beginning of the year, when it stood at EUR 23.5).
Provisions and deferred income account for 7.5% of the liabilities to sources of funds. Provisions for
pensions and similar liabilities were made as at 1 January 2006 (severance and jubilee payments) and
are adjusted annually on the basis of actuarial calculations. Other provisions were established in the
course of the ownership process under the environmental provision. In recent years, the following
additional environmental provisions have been made: EUR 5 million in 2010 for the rehabilitation of
the Bukovžlak solid waste landfill and EUR 7 million and EUR 5 million in 2011 for the rehabilitation of
the Za Travnikom landfill and the destruction of low-level radioactive waste. At the end of 2017, the

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provisions were reviewed in detail, verified and only the provision for the elimination of old burden
risks of EUR 6.4 million was re-established. At the end of 2022, similarly to the end of 2021, the extent
of the provisions was reviewed and the provisions were re-established or eliminated as appropriate in
light of the actual market conditions and the reasons for their existence. The volume of environmental
provisions decreased by 21% or EUR 4 million in the period under review, due to the earmarked
increase and at the same time the earmarked coverage of the costs of the remediation projects
mentioned above, as well as the necessary release of provisions for which the underlying basis for their
creation no longer existed, which occurred in 2022. Non-current deferred income increased by 70%
(obtaining funds for the co-financing of the installation of solar power plants).
Financial and operating liabilities decreased by 19% compared to the end of the previous year due to
a 16% decrease in operating liabilities. Trade payables decreased by 20% due to repayments to
suppliers and a 1% decrease in other current liabilities due to taxes and contributions from payables
to employees. The liability for income tax for the 2022 financial year as at 31 December 2022 is 39%
lower than the balance at the end of 2021 due to prepayments made in 2022. All financial and
operating liabilities are current. The Company's gross gearing ratio is 16.7%, a decrease of 4.7%
compared to the balance as at 31 December 2021.
Current financial liabilities as at 31 December 2022 amount to EUR 59 thousand, compared to EUR
198 thousand at the end of 2021. The Company's gearing ratio is therefore 0.24‰ (0.82‰ at the end
of 2021).
Current trade payables decreased by 16% over the period. Current trade payables to suppliers
amounted to EUR 14.9 million at the end of 2022, down 20% compared to the end of 2021, due to
repayments to suppliers of strategic raw materials. Other payables increased by 1% (or by EUR 67
thousand), mainly consisting of EUR 2.6 million payables for net salaries and other net employment
benefits, EUR 2 million payables for contributions and taxes from and on remuneration, and payables
for VAT and to other institutions.
Other current liabilities decreased by 1% in the period under review, mainly consisting of accrued
liabilities for annual leave and other labour costs, accrued environmental contributions and taxes, and
VAT on advances made.

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Risk management and opportunities
The risk management process is a key process and the cornerstone of the Integrated Management
System (IMS). Risks are managed through regulations, performance targets or objectives, the
implementation of which is tracked through protocols.
The risk management system includes risk identification, risk assessment and classification, action,
monitoring and reporting. Monitoring and analysis of the external and internal environment provides
input for the identification of key risks and opportunities, which is crucial for our operational, tactical
and strategic planning in line with the sustainable development goals.
Identification procedure
The key factors in identifying risks are the uncertainty and significant negative financial consequences
that must be perceived by the risk owners in the business unit.
There are two ways to identify risks:
− Bottom-up recognition is the responsibility and right of all employees in the company. Anyone
who identifies a risk to the business in the course of his or her work must immediately inform
his or her supervisor, who in turn informs the risk owner, who then enters the risk into the risk
database for each risk group.
− Top-down identification is carried out by risk owners on the basis of information they may
receive from the Management Board at the time of any major business decision, project or
material change that may have the effect of altering an existing risk or creating a new one.
The sources for identifying the risks that have occurred and are recorded in the codebook are:
− own observations of risks in the performance of regular work tasks and assignments,
− records and reports on operations,
− statistics and incident investigation reports,
− findings of internal and external audit and inspection services, auditors or assessors,
− analyses of the economic, political, legislative and operational environment,
− brainstorming with staff or external participants,
− business process studies and
− other sources.
We group individual risks into the following categories:
III. Sales and procurement risks
IV. Production risks
V. Financial risks
VI. Spatial and environmental risks
VII. Human resources and organisational risks
VIII. Support process risks

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Risk assessment and classification procedure
For each of the identified risks, we determine what its negative consequences are. The assessment of
risks is carried out by defining the frequency and impact in terms of financial consequences, which are
made up of three factors:
− incurrence or increase of costs,
− loss or reduction of revenue,
− mitigation of financial consequences.
The frequency (probability) of occurrence of risks is based on an assessment of the frequency with
which each adverse event/risk has occurred in the past or is expected to occur in the future. The impact
(financial consequences) of each event is quantified in monetary units according to how the individual
risk affects the Company's results or the amount of damage it may cause.
The basis for calculating the financial implications is the annual revenue plan for the Company and for
the individual organisational units.
The qualitative score is calculated using the following formula:
Risk assessment = frequency or likelihood of occurrence * (incurrence or increase of costs + loss or
reduction of revenue – mitigation of financial consequences)
The assessed risks are classified on the basis of a graduated risk scale, which is defined in terms of
value at two levels:
• Corporate risks are risks that, if they materialise, have a significant impact on the Company as
a whole or even threaten its existence. Their management is the responsibility of the
management of the business units and departments, the Management Board and the
Supervisory Board.
• Operational risks are risks that may affect the performance of individual units, but do not
represent a significant risk to the business as a whole. They are part of day-to-day operations
and work processes. They are managed at the level of one or more organisational units.
Identification of the level of risk (potential impact) – corporate risks
Level
Percentage of revenue at Company level of the annual plan in the current year
1 – Low
> 2.5 % < 5 %
2 – Medium
> 5 in < 10 %
3 – High
> 10 %
Note: The definition of corporate risks at company level represents the sum of the individual
assessments for a given risk at the level of business units (BU).
Identification of the level of risk (potential impact) – operational risks
Level
Percentage of revenue at the level of the business unit of the annual plan in the
current year
1 – Low
< 1 %
2 – Medium
> 1 in < 5 %
3 – High
> 10 %

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The process of identifying, assessing and ranking risks is carried out on a regular basis at the end of
each quarter of the year and, on an exceptional basis, immediately prior to the preparation of the
Company's business plan, whenever a major business decision, project or material change occurs that
may have the potential to change an existing risk or create a new one.
Adoption procedure, implementation of measures
The risks identified and classified in the Risk Register are managed through performance targets (POICs
for the current year) and objectives.
Monitoring and reporting
Risk owners report results in writing and verbally at the Management Board's quarterly Broader Expert
Colleges.
Responsibilities for the risk management system
The Management Board is directly responsible for the risk management system and its effective
functioning. The Board defines the process, oversees it and takes decisions on strategic development,
investments, divestments, portfolio of business lines, etc. The risk management system is managed by
key areas and is the responsibility of the team leaders for each risk group. Risks at the corporate level
are reviewed quarterly by the Risk Committee, which is composed of all team leaders and a member
of the Management Board. The Supervisory Board monitors and is informed of the performance and
findings of the risk management and internal control system in accordance with the provisions of the
Companies Act (ZGD-1). The external audit verifies the establishment, maintenance and operation of
the risk management and internal control system in accordance with the Auditing Act.
The successful operation of a risk and opportunity management system requires the coordinated
action of all stakeholders in the system to ensure the successful integration of risk management into
the Company's strategic, business and operational processes.
We also communicate to external audiences about the risks of our business and how we manage them
in our quarterly and annual reports. The reports are published publicly on SEOnet and on the
Company's website www.cinkarna.si.

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Diagram: Responsibilities in the risk management system of Cinkarna Celje d.d.
Here are the responsibilities and accountabilities at each level:
• Supervisory Board / Audit Committee of the Supervisory Board:
− monitors the effectiveness and efficiency of the overall risk management system,
− supervises risk-taking,
− monitors exposure to particular types of risk,
− monitors the management of key corporate or business risks.
• Management Board:
− sets the strategy and objectives for risk management,
− defines and monitors the risk management process,
− defines and delineates responsibilities and accountabilities in the risk management process,
− defines different responses for each type of risk under certain conditions.
• Risk Management Committee:
− defines the methodology and improvements in the assessment and ranking of risks, with the
aim of ensuring uniform criteria across the Company,
− reviews and defines revenue percentages for determining risk scores at company level and for
organisational units,
− reviews and defines corporate risks at company level,
− reviews and validates the results of the assessment and ranking of mainly corporate risks,
− informs the Management Board on corporate risk management,
− monitors the results of external and internal audits, inspections, assessments and evaluations.
Management Board
Risk Management Committee
Risk management team
Risk owners/organisational
units
Accounting Department
All company employees
Internal Audit
Supervisory Board /
Audit Committee
External audit
Governance,
control
Overview,
control
Management
Identification,
responsibility
Notification
Reporting
Reporting
Reporting

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The Risk Management Committee is composed of the Head of the Risk Management Committee and
the team leaders for each risk group, i.e. the members. The Head and the members of the Committee
are appointed by a resolution of the Company's Management Board.
• Risk management team:
Risk management teams are formed for all the risk groups that the Company manages. Each risk group
has a designated team leader who is part of the wider risk management team and has the following
responsibilities:
− Defines risk designations and generic risk descriptions at company level within the risk group
for which it is responsible;
− Enters the identified and approved risks in a specific group into the risk codebook, which is the
basis for risk owners to then define the relevant specific data in their organisational units;
− Monitors and reviews the risks arising in the risk pool from the organisational units identified
and defined by them into individual groups;
− Coordinates and convenes meetings to identify, define and prioritise individual risks. He/she
may also convene the Risk Management Committee in the case of significant risks;
− Communicates with risk owners on identified risks and changes;
− The team leader ensures, through professional oversight, that risks are appropriately recorded,
classified and managed in his/her team and verifies the appropriateness of the assessment of
individual risks, if they have been identified by different organisational units;
− The risk team leader proposes corporate risks to be defined in the system. The Risk
Management Committee reviews the proposals, agrees on them and aligns the risk type;
− Reports quarterly results to the Risk Management Committee on all corporate risks for the
team's risk group.
• Risk owners:
− Identify risks in their organisational unit process area and communicate this to the team leader
for the specific risk group;
− Define specific risk profiles in their organisational units based on the overall risk identified;
− Are responsible for risk management in their organisational units (they are responsible for the
appropriateness of entries, assessment and management of identified risk);
− Report on the identified risks to the team leader for each risk group over a three-month period
through performance targets or objectives.
Risk owners are Directors and Heads of Departments, or their deputies in their absence. They may also
be team members of individual risk groups.
• Internal Audit Department:
− Audits the risk management process and reports to the Management Board and the
supervisory body on its effectiveness and efficiency;
− Audits the effectiveness and efficiency of internal controls in business processes, focusing on
the management of key risks;
− Assesses the adequacy of reporting on key risks;
− Plans audit reviews based on the applicable risk assessment;
− Communicates to the Management Board, the supervisory body and the responsible auditors
the findings on the management of key risks in the context of the internal audit engagements
performed, and, subject to limitations in accordance with the rules of the internal audit
profession, may advise on the establishment and implementation of a risk management
process.

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• Accounting Department:
− Provides the basic data for calculating revenue and cost shares at company level and by
organisational unit;
− The Head of the Accounting Department coordinates the definition of the revenue
percentages with the Risk Management Committee before the start of the planning process
(revenue percentages are defined for corporate and operational risks);
− The person responsible in the Accounting Department enters the relevant parameters and
values, which are the basis for the further calculation of the risk assessment.
• All company employees
Employees must be involved in identifying risks in their workplaces or in the Company and informing
their supervisors, who are obliged to take appropriate action.
Corporate risks identified in 2022
I. Sales and procurement risks
Risk name
General description at
company level
Risk management
Risk level
Energy sources
Price uncompetitiveness of our
products due to high energy
prices (natural gas and
electricity)
We conclude contracts, monitor trends
and carry out forward purchases of
energy products.
We negotiate PPAs - long-term power
purchase agreements.
We implement measures to increase
energy efficiency.
We systematically increase our own
electricity production from renewable
sources - solar power plants on buildings,
cogeneration of electricity from steam.
We are planning to install an EE battery
storage to balance consumption during
peak periods.
Low
Key buyers
Loss of market share and
revenue due to (price) non-
competitiveness with
customer expectations
compared to price-aggressive
competitors
We choose optimal marketing strategies,
appropriate sales channels, pre and post
sales service, competitive selling prices
and quality products, while increasing
productivity and reducing production
costs. We are also increasing our
customer portfolio in so-called spot
markets.
Low
Work items
Loss of revenue due to
unforeseen extensions of
delivery times throughout the
supply chain
We place orders on time, make supplier
reservations, look for alternative
suppliers and alternative testing
procedures.
We ensure timely planning of raw
material requirements and ordering,
adherence to the experience time
reserve and, where necessary, increase
Low

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I. Sales and procurement risks
Risk name
General description at
company level
Risk management
Risk level
minimum stock levels. We will develop a
"business case" and a "check list" for all
strategic raw materials.
Work items
Loss of production due to
failure to supply work items
from monopoly suppliers
We pursue the objective of adequate
protection by contract. In critical cases,
we provide larger stocks. We carry out
thorough market research on raw
materials and potential substitutes and
act on our findings in a timely manner.
We undertake accelerated procurement
and negotiation activities with existing
suppliers to secure the planned
quantities of PFA material. We are
expanding our supplier base with new
suppliers.
We are looking for alternatives to PFA.
We follow the announcements of
alternative technologies for the
processing of titanium bearing ores.
We are examining the feasibility and
advisability of introducing technological
changes to enable the production of
titanium dioxide from ilmenite alone.
We seek, test and introduce new sources
of raw materials for production.
Low
Legislative
compliance
Loss of revenue due to
proposed changes in
legislation for food contact
materials (packaging)
Through the supply chain, we obtain
information from customers on the
intended use of the product and the
requirement to meet the standard.
We carry out testing and analysis of
titanium migration from masterbatches
into model solutions.
We are looking for opportunities to offset
potential lost sales for incorporation in
food contact products with sales for
other applications (e.g. agro films,
automotive).
As a long term measure, we are looking at
the possibility of manufacturing the
product from suitable raw materials that
allow the obtaining of a
standard/certification (FDA).
Low

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I. Sales and procurement risks
Risk name
General description at
company level
Risk management
Risk level
Legislative
compliance
Revenue loss due to new
chemical sustainability
strategy
Within the Titanium Dioxide
Manufacturers Association (TDMA), we
follow the requirements of the new
legislation with a working group and
initiate the necessary/possible actions
both at the EU level and individually
within the Company.
Within the TDIC consortium, we are in the
process of updating the REACH dossiers
in line with the requirements of the
European Chemicals Agency (ECHA). To
this end, we are also carrying out a broad
scientific programme within TDMA,
which includes studies on the potential
impact of nano and pigmented forms of
titanium dioxide on human health.
Low
II. Production risks
Risk name
General description at
company level
Risk management
Risk level
Storage and
production
capacity
Shortfall in volumes due to
under-utilisation of production
capacity
We are taking measures to increase the
efficiency and availability of facilities.
We organise multi-shift working.
We are increasing our search for missing
staff.
We are adapting storage capacity
(additional silos and tanks) and logistics to
production needs.
Medium

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III. Financial risks
Risk name
General description at
company level
Risk management
Risk level
Credit risk
(payments by
buyers)
Loss of revenue due to non-
payment by buyers whose
receivables are not secured,
which represents about 2% of
receivables.
The Company applies internal credit
control for each individual buyer, who is
assigned an individual credit limit based
on payment discipline, credit rating and
good standing with the Company. The
credit risk monitoring and management
process was further enhanced in mid-2021
with the advent of receivables insurance
with an external institution where credit
limits are set, monitored and changed on
a daily basis.
In addition to the regular monitoring of
the credit limit for each buyer, the
payment discipline of the buyer and the
publication on Ajpes of proceedings under
the Act on Financial Management,
Insolvency and Compulsory Winding-up
Proceedings (ZFPPIPP) are monitored on a
daily basis.
Also, as the receivable becomes due, the
buyer is reminded of the due date of the
receivable by a reminder, firstly by
telephone and then in writing, and default
interest is charged from the due date until
the date of payment.
Updated information is obtained on a
regular basis for more accurate cash flow
planning.
Detailed, well thought out and accurate
cash flow.
Low
Liquidity risk
(payments by
buyers)
Loss of payments within
agreed deadlines due to
customer insolvency or
indiscipline, which may cause
liquidity problems for the
Company
Traditional payment discipline of a
company with no bank debts and stable
cash flows. The Company's business is
traditionally conservative with high cash
flow. Liquidity management comprises,
among other things, planning expected
cash commitments and covering them on
a daily, weekly, monthly and annual basis,
ongoing monitoring of the solvency of
buyers and regular collection of overdue
receivables.
Updated information is obtained on a
regular basis for more accurate cash flow
planning, which is elaborate, deliberate
and precise.
Low

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III. Financial risks
Risk name
General description at
company level
Risk management
Risk level
We have a detailed, well thought out and
accurately designed cash flow.
Currency risk
Loss of revenue and higher
costs due to the euro/dollar
exchange rate on the purchase
of materials and raw materials
in US dollars (titanium-bearing
raw materials, partly copper
compounds)
We continuously monitor the movements
and forecasts regarding the dynamics of
the EUR/USD currency pair. Basically, we
limit the short-term risk of adverse
changes in the dollar exchange rate
through the standardised and consistent
use of financial instruments (dollar
futures).
We regularly obtain more accurate data
for forward purchases of foreign
exchange.
Low
IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk
level
Climate risks
Occurrence of acute or chronic
physical risks caused by
climate change (drought, heat
waves, storms, etc.)
For process water, we are increasing the use
of water from internal recycling, thereby
reducing the use of water from natural
sources such as the Hudinja River and the Za
Travnikom spring. For more information,
see the Integrated Water Management
Project section.
We are implementing a project to supply
production with an alternative source of
process water, namely to test the feasibility
of reusing waste water from the Celje
Central Wastewater Treatment Plant as a
source of process water.
We maintain facilities, address deficiencies,
identify and eliminate potential hazards by
upgrading fire safety and other safety
measures, maintaining existing flood
protection measures, inspecting the
condition of installations and optimising
processes.
High
Security
Negative impact on the
Company's business due to a
natural disaster (such as an
earthquake or major flood,
lightning strike, sleet, etc.)
We carry out activities in accordance with
the preventive actions set out in the
Register of Potential Hazards to the
Environment and Employees (Rules, OP,
compliance with storage instructions in the
flooded part of the site, ongoing cleaning of
shafts and maintenance of facilities, ND,
measurements, preventive and periodic
inspections, etc.).
Medium

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IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk
level
When designing new buildings, we take into
account earthquake protection standards
and regulations. Existing ones are inspected
and maintained.
The Company is flood-proofed with a wall to
prevent water ingress in the event of
flooding. We have pump stations in place to
pump out any excess water.
We regularly inspect and maintain lightning
conductors and earthing systems.
Security
Negative impact on the
Company's operations due to
an industrial accident (fire,
explosion, spillage, etc.)
Risk is managed by systematically
evaluating the impact on the environment
and employees, periodic fire risk
assessments and by organising jobs
according to risk assessment.
In the area of environmental impact
reduction, we have systematically
implemented European environmental
standards by applying the principles of the
"Responsible Care Programme" and
harmonising our operations with the
requirements of the IED and the SEVESO
Directive.
We carry out internal assessments of the
adequacy of the implemented measures
required by the SEVESO permit and remedy
the identified shortcomings.
We update our Environmental Risk
Reduction Plan (ERRP) in light of changes.
We carry out our processes in accordance
with BAT (Best Available Techniques).
With regard to fire safety, we have our own
fire brigade and the Company is adequately
fire-protected.
In the area of accidents at work, we have a
professional service organised to monitor
compliance with health and safety rules and
measures. We provide regular training and
education for our employees. The Company
is insured against liability for damages.
We conclude written agreements with
external contractors and train them. We
have engaged a permanent Health and
Safety Coordinator. We have introduced
work instructions for carrying out
maintenance operations in terms of fire
Low

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IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk
level
prevention, accident prevention and
improving the cleanliness of the working
environment.
Since 2009, we have ISO 14001
environmental management and ISO 45001
health and safety management systems in
place, certified and monitored by an
accredited institution.
Old burdens
Removing old environmental
burdens
The Bukovžlak Non-hazardous Waste
Disposal Site (ONOB) and the barrier bodies,
with their specific materials, are old
burdens. We have also created an
environmental provision for them and are
carrying out rehabilitation activities.
Technical observation and monitoring is
regularly carried out in the area of the high
embankment barriers (Bukovžlak and Za
Travnikom).
Based on the results of the monitoring,
systematic and long-term maintenance
measures are implemented to ensure the
stability of the barrier bodies.
Low
Legislative
compliance
Loss of production and
increase in costs due to non-
compliance with spatial
planning acts
We are in the process of confirming
amendments to the ZN documentation for
the red gypsum fill site at the Za Travnik
waste disposal facility.
We have submitted an amendment petition
to all three municipalities concerned. The
terms and conditions for the signing of the
contract between the municipalities are
being coordinated.
High
Legislative
compliance
Imposition of penalties in the
event of non-compliance with
the requirements of the Soil
Contamination Assessment
We are implementing the measures set out
in the findings of the Report on the Review
of Technical Measures to Prevent
Contamination of Soil and Groundwater.
We need to ensure that catch basins,
platforms, storage soils, drains, and
transport routes are fully sealed to prevent
contamination of soil and groundwater with
the hazardous substances concerned.
Low
Loss of reputation
Loss of reputation of the
Company due to various
factors (inadequate
communication, negative
environmental impacts, etc.)
The Company has processes in place by
department and designated individuals
responsible for investor relations,
environmental prevention, health and
safety, marketing, product sustainability
and recruitment.
We collect and consider stakeholder
feedback and address it in our enterprise
Low

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IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk
level
risk management process. We behave in a
socially responsible way. We are developing
an ESG strategy.
V. Human resources and organisational risks
Risk name
General description at
company level
Risk management
Risk level
Competence and
availability of staff
Loss of production and
revenue due to incomplete
succession policies and
inadequate staff competences
We have a recruitment system in place -
each post has a job training programme and
a mentor.
As part of the 2023 performance targets, we
are establishing a system to inventory all
specific and generic skills in the Company
for all business units/services, a renewed
onboarding system for new hires, and a
verification of existing skills for employees
with a simultaneous revision of the
competency model.
Based on the revised competencies by job,
employees will be trained in areas with
competency gaps.
The training plan includes a number of
additional external training courses for
employees in the areas of planning, lean
production and IT.
We ensure that the active status of existing
approved engineers is maintained.
We have inventoried the key positions in
the Company, identified possible
successors, defined the time until the
necessary replacement and the additional
competences required.
For the most promising candidates, we run
a leadership development programme, the
Leadership Academy.
Low

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V. Human resources and organisational risks
Risk name
General description at
company level
Risk management
Risk level
Competence and
availability of staff
Loss of production and
revenue due to staff shortages,
untimely replacements and
inadequate organisation of
work
We strive to identify staffing and
recruitment needs in a timely manner, with
the aim of ensuring an appropriate
education, skills and age structure.
We continuously implement organisational
change and adapt agilely to new
circumstances.
In addition to traditional recruitment
methods, we use innovative recruitment
solutions via social networks to find new
employees.
We have staff scholarships available. We
have deepened our cooperation with
secondary schools. We provide students
with compulsory internships and student
work. We give students the opportunity to
work on their bachelor's, master's and
doctoral theses in the Company.
Low
Legislative
compliance
Imposing penalties on the
Company and the persons
responsible and compensation
for breaches of labour law
We regularly monitor changes in legislation
and implement them in our system.
We organise meetings with business units,
keep each other informed and take action
to correct any non-compliance.
We maintain an open dialogue with our
social partners.
Low
Corruption, theft,
fraud
Potential loss of credibility and
damage to the business
In making business decisions and in all
actions on behalf of the Company,
employees must consider the best interests
of the Company before their own interests
or those of third parties, subject to
competing only fairly and honestly.
We have a system in place to prevent
corruption in procurement.
The appropriate and expected conduct of
employees is set out in the Code of Ethics
and Conduct. A mechanism is in place to
disclose or report misconduct.
Low

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VI. Support process risks
Risk name
General description at
company level
Risk management
Risk level
Digitalisation
Loss of production and
competent workforce due to
slow digitalisation of control
and management processes
The implementation targets cover the
implementation of a new maintenance
information system and the introduction
of a predictive maintenance system.
We are continuously updating, upgrading
and integrating existing IT systems.
Low
Security
Outage due to failure of the
server system for the
management system
We are continuously upgrading critical
infrastructure.
Low
We also highlight and explain the following risks that the Company faces:
• Risks of cyber attacks
In response to the increased risk of cyber attacks, we have upgraded existing measures and put
in place a number of new measures to ensure cyber security. We are focusing on raising
awareness of information security among our employees (phishing test, dedicated training, etc.).
In 2022, we adopted an internal document on Information Security, which includes the following
key points to increase security:
− MFA – MFA On for all employees for access outside Cinkarna was implemented as part of
Microsoft's MFA On for All Users campaign, which increases the security of systems based
on Microsoft Cloud solutions;
− The upgrade of workstations to Windows 10 and Office 365 was completed in 2022, due
to the delay caused by the COVID-19 pandemic;
− Check Point Harmony Endpoint Protection must be installed on all workstations. The
measure is under implementation. In a phishing attack simulation we carried out in
December 2021, the protection proved its proactivity and level of protection, as it did not
let any malicious messages through from the start. In order to actually run the test on
users, we had to temporarily disable the system with a security exception, which is a
testament to its quality and reliability;
− We piloted CyberVision to monitor the performance of an industrial network. This gave us
a more detailed insight and guidance for improvements in the area of network
cybersecurity;
− We have implemented the Cisco ISE security mechanism, which will protect the internal
network of Cinkarna Celje against intrusions by external actors by connecting
unauthorised devices to our network.
In 2022, we did not record any hacking or attempted cyber attacks.
• Russia's invasion of Ukraine
Cinkarna Celje's exposure to the Ukrainian markets is insignificant as the Company has no sales to
Ukraine. However, indirect exposure is not negligible, as Ukraine is an important supplier of ores
to a number of titanium dioxide producers (Cinkarna Celje does not have any supplies from
Ukraine). A war situation may temporarily prevent or even stop the supply of ores, forcing their

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customers to find an alternative supplier, which may trigger an increase in the price of titanium-
bearing ores and increase the purchase price of Cinkarna Celje's main strategic raw material.
• Risks related to energy sources
Another important factor accounting for a significant share of Cinkarna Celje's costs is energy,
which means that the Company is more exposed to energy prices. Developments on the Russian
market could lead to an increase in the already increased prices of energy products or to the
extreme of interrupting the supply of the energy product natural gas, which would seriously
jeopardise the production and operations of Cinkarna Celje. In order to secure the supply of
electricity and natural gas for the coming years, we have concluded forward contracts with energy
suppliers for the bulk supply of energy products. The Company balances the purchases and sales
of long-term forward products of banded electricity on the German (EEX) or Hungarian (Hudex)
OTC market and the remaining balance of the purchases/sales difference (additional or excess
quantities) of electricity on the daily market (BSP), which is accounted for each hour of the day.
The Company dynamically adjusts its purchases/sales according to the expected electricity
consumption during the year by buying/selling long-term forward products (annual, quarterly,
monthly). The required electricity volumes are adjusted due to the active construction of its own
solar power plants (PS2 connection), the rationalisation of electricity use and the saving of
electricity consumption, which is also a policy of the European Commission and the Republic of
Slovenia.

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Integrated management system
An integral part of the management of Cinkarna Celje d.d. is an integrated management system
covering the basic elements of management and operations for all the Company's activities, in
accordance with the requirements of ISO 9001 – Quality Management System, ISO 14001 –
Environmental Management System, ISO 45001 – Occupational Health and Safety Management
System and, for the Mozirje site, the EMAS regulation. The compliance of the system's operation with
the requirements of the standards is verified on an annual basis by the certification body SIQ (Slovenian
Institute of Quality and Metrology). One non-compliance was identified and corrected in the year 2022.
Recommendations for improvement were made and followed. In accordance with the requirements
of the EMAS Directive, an environmental statement was drawn up for the business unit Kemija Mozirje.
Internal audits
According to the annual internal audit plan, eight audit areas were planned for 2022 (BU TiO
2
, BU
Metalurgija, BU Kemija Mozirje, BU Vzdrževanje in energetika, BU Marketing - Sales, BU Marketing -
Warehouse/Transport, Occupational Health and Safety, IT Department), as well as preliminary audits
(covering 12 organisational units). 24 auditors participated in both internal and preliminary audits. The
internal audits were carried out in the following areas. The internal audits checked compliance with
the requirements of the standards and legislation, and in the case of Kemija Mozirje, with the EMAS
Regulation. The auditors identified 12 non-conformities and made 44 recommendations, totalling 56
findings. The managers of the audited areas did not follow 12 recommendations. The overall
proportion of recommendations not followed amounts to one fifth or 21% of the total findings. For
each recommendation not followed, a detailed justification was provided by each business unit or
organisational unit. The implementation rate of the actions reviewed was 16% by the end of 2022.
As part of a preliminary audit, the implementation of outstanding actions from the 2021 internal audits
and the SIQ audit was reviewed, as well as the implementation of SIQ recommendations in 2022. By
the end of 2022, 80 outstanding non-conformities/recommendations from previous audits had been
reviewed. 45 non-conformities/recommendations have been implemented and 35 are under
implementation. The implementation rate is 56%.
A review of outstanding actions (first time or repeated) was carried out in February 2023 and the
annual audit report will be completed before the annual management review.

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Chart: Internal audits in 2011-2022
External audits
The Company is audited each financial year by an external auditor. Each year we review and submit a
signed list of related parties in accordance with International Accounting Standard 24, a list of officers,
directors and controlling shareholders on the audited side. The Company's Management Board
responds annually to the management questionnaire and declares that it is not related to the external
auditor or its partners, professional staff and individuals who would have a significant role in the
accounting or financial reporting.
Members of the management and supervisory bodies are required by law to declare the absence of
conflicts of interest, disclose potential conflicts of interest or, in the case of conflicts of interest, report
them when taking up their duties.
The external audit of the integrated management system according to ISO 9001, ISO 14001, EMAS
Regulation and ISO 45001 for 2022 was carried out at the end of May 2022. The auditors reported one
non-conformity with the requirements of ISO 14001 and made 25 recommendations. The non-
conformity was corrected within the agreed timeframe and 18 recommendations were implemented
by the end of 2022, which is a 72% implementation rate.

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Chart: Trend of non-conformities and recommendations in external audits in 2011-2022
Financial and legal due diligence
We do not have a specific policy on financial and legal due diligence. In the case of financial and legal
due diligence, the procedures are carried out in accordance with the needs of the Company and
information is disclosed in accordance with positive legislation in the relevant areas.
Information security
At Cinkarna Celje d.d., we are aware of the importance of information security, which is why in 2006
we prepared an information security policy containing the basic rules and principles to ensure the
smooth and secure operation of our Company. The information security policy also established an
information security team, which regularly works on the preparation of measures to mitigate
information security risks. The tasks of the team, which is made up of members from different
organisational units, are:
− validation of strategic guidelines for information security,
− validation of information security policy documents,
− assistance in the implementation of major information security projects,
− monitoring major changes in the exposure of information assets to security threats,
− monitoring and evaluating security effectiveness and performance.
Activities carried out by the information security team in recent years include:
− checking and responding to incidents on an ongoing basis,
− reporting of detected incidents,
− external review of the production information system,
− external review of the business information system with external and internal hacking
attempts,
− implementation of actions and recommendations of external reviews,
− assistance in the implementation of major IT projects,
− preparation of appropriate rules for communication between different networks in the
Company,
− updating the information security policy to ensure regulatory compliance,
− regular communication with management and reporting on identified risks,

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− preparing a report for the annual management review,
− educating employees and raising awareness of the importance of information security,
− organising a targeted phishing attack to raise awareness and educate employees.
We regularly inform employees about information risks, including through leaflets, and ask them to
forward suspicious messages or content to our dedicated e-mail address.

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Sustainable development
We recognise the importance and urgency of implementing the principles of sustainable development,
which we see as a commitment and fundamental responsibility towards society and the environment,
while pursuing diligent corporate responsibility and strengthening economic performance. We are also
driven to do so by the increasing demands of our owners, customers and legislation. In 2022, we have
therefore taken a strategic and holistic approach to sustainability. In our forthcoming five-year
strategy, which we will prepare in 2023, we will place even more emphasis on the areas of
environment, society and governance (ESG) and will also refine our sustainability targets.
The highest decision-making bodies, such as the Management Board and the Supervisory Board, are
also involved in sustainability activities, ensuring that the area receives strategic attention and is
included in operational and decision-making processes. A Sustainability Team was established at the
beginning of the third quarter of 2022 to act as a consultative body and lead the sustainability reporting
project. A tripartite sustainability governance structure has been put in place:
− The Sustainability Team leads the sustainability reporting project and advises the Management
Board;
− The Management Board takes a position on sustainability initiatives and adopts a sustainability
report, which is also presented to the Supervisory Board;
− The Supervisory Board monitors the implementation of ESG factors and discusses this topic at
its meetings.
As part of our sustainability performance, we recognise the impacts we have both in relation to our
key stakeholders and in relation to the natural environment in which we operate. We continuously
strive for improvements in all areas of our operations, seeking innovative solutions that we implement
in our operating model to achieve a balance between economic performance, energy efficiency,
environmental protection and social responsibility.
We have already implemented sustainability indicators to some extent in relation to our suppliers, and
we will further develop this area in the future in order to manage our supply chain and enable our
customers to achieve their sustainability goals, while at the same time encouraging our suppliers to
become more sustainable.
About the sustainability report
In the face of increasing climate change and our competitiveness in the global market, we are
developing a plan for a comprehensive sustainable transformation. We recognise that only through a
strategic approach will we be able to manage and implement it effectively, and we have therefore
taken the approach of preparing a sustainability report, which is included in our regular annual report,
and a sustainability strategy. Accordingly, we have also prepared a sustainability report, where we
present our approach to sustainable management, our relationship with our employees and the wider
social environment, and our management of environmental issues in the context of our annual report.
We report in line with GRI standards. We are committed to transparency in disclosing information,
ensuring the credibility of data and pursuing clarity in reporting.
The reporting includes a materiality matrix, which we have established for the first time. To this end,
we held an internal team workshop to identify our important sustainability themes and conducted an
e-survey among key stakeholders. The matrix shows the attitudes of internal and external stakeholders
towards significant environmental, social and economic issues, by ESG area. We also report in line with
the European Taxonomy Regulation, where we disclose information on how and to what extent our

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activities are linked to economic activities that are considered environmentally sustainable. We report
on the first two environmental objectives, which relate to climate change mitigation and adaptation.
To prepare the sustainability report and to manage the Company in a sustainable way, we have set up
a team of employees from different areas to carry out all the necessary activities in the area of
sustainability. We have also engaged an external consultancy firm to assist in the preparation of the
documents, and to train the management team and employees in key positions. This has included a
number of training sessions on the role of sustainable development and the legislative framework in
this area, presentations on the GRI standards and approach to sustainability reporting, the materiality
matrix and taxonomy regulation compliant reporting. The workshops also included the identification
of the persons responsible for reporting in each area. Bernarda Podgoršek Kovač, Head of the
Environmental Protection Department, is responsible for the implementation of the project.
Areas of priority sustainability activities of Cinkarna Celje in relation to the United Nations
Sustainable Development Goals by 2030
United Nations
Sustainability
Goals
Areas, activities
Objectives
2 Eradicating
hunger
− Manufacture of agro products for
chemical plant protection, also
suitable for organic farming
− Once a year food collection for the
SIBAHE food bank for distribution to
people in need
− Increase organic production through
the production of organic plant
protection products
− Contribute to reducing the
proportion of socially disadvantaged
people in the local environment
3 Health and
well-being
− ISO 45001 – Occupational Health and
Safety Management System
introduced
− Caring for employees' health and
implementing occupational health and
safety measures
− Implementing the Minute for Safety
among production employees
− Implementing a workplace risk
assessment system
− Activities to identify, record and
eliminate potential hazards and near
misses in the work environment
− "CC um" app for employee
suggestions on health and safety at
work
− Getting a Responsible Care
Programme certificate
− Annual development of an employee
health promotion programme
− Funding or co-funding sports activities
for employees outside working hours
− Soil environmental analysis to protect
the local environment
− Supporting socially responsible
actions and sponsorship of sports
activities in the local environment
− Zero injuries at work
− Provide the healthiest and safest
possible environment for employees
and all external visitors
− Minimise employees' exposure to
hazardous working conditions
− Encourage employees to lead healthy
lifestyles and exercise
− Eliminate or reduce potential risks to
the health of the local population as
a result of Cinkarna's operations to a
minimum or below acceptable limits
− Promote health and exercise among
young people and older people in the
local area

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United Nations
Sustainability
Goals
Areas, activities
Objectives
4 High-quality
education
− Conducting regular training courses
for staff in various areas of expertise
− Running a mentoring programme for
new employees
− Scholarship opportunities for
technical students
− Opening up compulsory traineeships
for students
− Organising competitions for young
people in the local environment on
the role of chemistry for sustainable
development
− Maintain and improve employees'
skills and competences to work safely
− Develop staff competences to
manage processes and develop new
products
− Facilitate effective knowledge
transfer between employees
− Develop young people's interest in
chemistry skills and careers and open
up opportunities for their career
development
− Raise awareness among young
people in the regional environment
on the importance of chemistry in
various fields for sustainable
development
5 Gender
equality
− Diversity Policy adopted
− Ensuring equal pay, not according to
gender, but according to position
− Ensure equal opportunities for
employment and promotion
regardless of gender
− Prevent and eliminate discrimination
in the Company
6 Clean water
and sanitation
− Regular monitoring of wastewater,
surface water and groundwater
− Implementation of the projects
Integrated Water Management and
Alternative Source of Process Water
Supply from the Tremerje Sewage
Treatment Plant
− Eliminate or minimise the risks of
pollution of local watercourses from
which water is extracted for
production processes
− Conserve local water resources and
their habitats and maintain the
favourable status of watercourses
− Reduce water extraction from
watercourses and increase internal
water recycling
7 Affordable and
clean energy
− Energy management systems
− Implementing targeted energy
monitoring
− Implementing energy efficiency and
renewable energy measures and
investments
− Installing solar power plants on the
roof of production facilities
− Optimise energy use in the Company
− Increase the share of energy
generated from own renewable
sources
− Lowering energy costs and increasing
business competitiveness
− Reduce CO
2
emissions from our
activities
8 Decent work
and economic
growth
− Employment of people with
disabilities
− Code of Ethics and Conduct adopted
− Coordinating the collective agreement
with the Company's two
representative trade unions
− A funding plan for supplementary
pension insurance for all employees
adopted
− Enable decent work also for people
who have any health limitations due
to the long-term nature of their work
− Develop an excellent culture of
professional and ethical behaviour
among employees in all aspects of
our business
− Create an effective dialogue with
employee representatives on
employee rights

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United Nations
Sustainability
Goals
Areas, activities
Objectives
− Rules on the prohibition of sexual and
other harassment and ill-treatment in
the workplace adopted
− Enable employees to live with dignity
after retirement
− Ensure a safe and decent working
environment for all employees and
prevent any sexual or other
harassment and ill-treatment in the
workplace
9 Industry,
innovation and
infrastructure
− Development of new products with
improved properties in the field of
TiO
2
pigments, powder varnishes,
masterbatches, etc.
− Fostering innovation among
employees by creating an
environment for suggestions (CC um)
− Provide high-quality products with
high added value
− Contribute to the competitiveness of
the European economy in TiO
2
and
the value chain
− Ensure environmentally sound
products
− Get as many useful suggestions as
possible from employees on how to
improve internal processes
− Build partnerships and open new
links for cross-industry networking
− Raise awareness of the importance of
sustainable development and to
promote a culture of responsible
behaviour to bring about the
necessary changes
11 Sustainable
towns and
communities
− Production of TiO
2
as an important
building block for green technologies
and sustainable construction
− Contribute to the sustainable
transformation of society and the low
carbon transition (as an enabling
activity)
12 Responsible
consumption and
production
− Investments in new product
development, best available
technologies and environmental
process improvements
− Reuse of materials in production
processes
− Manufacture of CEGIPS and RCGIPS
by-products
− Optimise the use of materials in the
value chain
− Reduce waste in the value chain
− Reduce environmental impacts from
production processes
− Increase the reuse of waste materials
in the Company
13 Climate
measures
− ISO 9001 – Quality Management
System and ISO 14001 –
Environmental Management System
implemented
− EMAS implemented for the Mozirje
site
− Company carbon footprint calculation
− LCA calculation of the TiO
2
carrier
product at TDMA level
− Monitoring emissions to air
− Monitoring ambient air quality
− Manage and reduce our own climate
and value chain impacts through a
standardised approach
− Measure, monitor and reduce the
carbon footprint of the Company and
individual products
− Control emissions from our activities
− Monitor the impact on air quality

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United Nations
Sustainability
Goals
Areas, activities
Objectives
15 Life on land
− Implementing pollution prevention
measures and controlling our own
impact on the environment through
regular monitoring
− Introducing technological change with
minimum impact on the natural
environment
− Participation in the Nature 2000 LIFE
project for the revitalisation of an old
riverbed
− Contribute to improving the
management of Natura 2000 sites in
Slovenia
− Contribute to improving the status of
species and habitats in the Volčeke
Natura 2000 site
Objective in the field of sustainable development in 2022
Objective
State
Build a power plant to generate at least 2 additional MW of
electricity from a renewable source, i.e. the sun.
Reduce the specific water consumption of our main product –
titanium dioxide.
By 5% in the plan year.
Pursue the goal of re-use. With refurbished equipment and recycled
wastewater. The latter is a medium-term objective that requires in-
depth development work beforehand.
Calculate the carbon footprint of all our main products and
systematically reduce it in the coming years through analysis and
consequent action.
Calculated carbon
footprint of the Company
and of titanium dioxide,
our main product
Reduce energy consumption by recovering waste heat. We will
implement several improvements indicated by the 2021 energy
audit. We will make a mathematical model for the mass and heat
balance of our main production process. We will then use it to
round off our waste heat recovery in a more optimal way.
Achieved In progress Not achieved
The chemical industry – a key sector for the green transition
Cinkarna Celje d.d. is part of the chemical industry, which is a vital building block of the global economy.
The chemical industry is the leading manufacturing sector in the EU, accounting for around 16% of the
total value added of all manufacturing activities. It is one of the key industries in the green and circular
transformation of European industry, economies and society, especially in the development of green
technologies and in ensuring a secure future. It is part of many value chains through its materials,
products and solutions. It develops solutions and products for applications in transport, building
insulation, coatings, packaging, material recycling and many other areas where its solutions contribute

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to climate neutrality. It also plays an important role in ensuring health and safety in the fields of health
and agriculture.
The added value of the chemical industry is reflected in European policy documents and strategies, in
particular in the implementation of the European Green Deal, with the objective of making Europe
climate neutral by 2050. To contribute to the green transformation of society, it must also transform
itself to be green, digital and sustainable. Over the last few decades, the chemical industry has
improved its processes in terms of environmental and human health impacts, including through
voluntary initiatives that go beyond standard levels and regulatory requirements, such as the
international Responsible Care Programme. Cinkarna Celje d.d. is also part of this programme.
The Slovenian chemical industry operates on a global market, generating around 25% of the added
value of Slovenian industry and is the leading manufacturing activity in Slovenia. It generates the
highest average value added per employee, and employees in the chemical industry account for 17%
of employees in all manufacturing activities in Slovenia. Abroad, the Slovenian chemical industry
generates 81% of the value of sales, mostly in Europe, and accounts for 22% of the value of Slovenian
exports. This shows that the Slovenian chemical industry is competitive in the international
environment and is recognised for its expertise and reliability.
9
The chemical industry is an indispensable part of the European and global economy, as suppliers of
raw materials are involved in many key value chains.
9
Source: Chamber of Commerce and Industry - Association of the Chemical Industry, available at
https://kemijska-politika.gzs.si/vsebina/Kemijska-industrija

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Figure: Raw materials and products from the chemical industry are present in many value chains and
play an important role in the path towards climate neutrality (Source: Chamber of Commerce and
Industry - Association of the Chemical Industry).
10
)
Sustainability challenges and opportunities for the titanium dioxide industry
The EU Sustainable Chemicals Strategy is the leading initiative of the European Green Deal. It is a
comprehensive plan to boost innovation in chemicals and the competitiveness of the EU chemical
industry, while ensuring that chemicals are fit for the circular economy. The Titanium Dioxide
Manufacturers Association, of which Cinkarna Celje d.d. is a part, is actively involved in contributing to
the implementation of the European Green Deal.
The EU accounts for 20% of global titanium dioxide production - an estimated market value of €3
billion. Of this, around 68% is sold in the European Economic Area.
10
Source: Chamber of Commerce and Industry - Association of the Chemical Industry, available at
https://www.gzs.si/Portals/306/How%20Can%20Europe.sl.pdf

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We are affiliated to the Titanium Dioxide Manufacturers Association (TDMA), which together
underlines our commitment to ensuring that our products are manufactured and used in a sustainable
way. This is very important as titanium dioxide is used in many different industries due to its unique
properties. It is mainly used in everyday products such as paints, plastics, paper and inks. This wide use
makes the question of its overall impact, particularly on health and the environment, an important
issue.
Figure: Percentage of titanium dioxide use in different industries
Greener production of chemicals
Chemicals are essential to the way we want to live and are also the building blocks of our sustainable
future, which is why the Sustainable Chemicals Strategy aims to implement greener production
processes. The European chemical industry is investing in the decarbonisation of its industrial
processes in close cooperation with the value chain. The industry is a driving force for achieving the
European Green Deal. Titanium dioxide plays an important role in this effort. TiO
2
is an essential
chemical as it is a key ingredient in thousands of products we see and use every day. The TiO
2
industry
is reducing its carbon footprint.
Responsible Care
As members of the European Chemical Industry Council (CEFIC), we strive to respect and promote the
Responsible Care® codes. Responsible Care is a global chemical industry initiative that commits
companies, national chemical industry associations and their partners to continuously improve the
environmental, health, safety and security knowledge and performance of their own technologies,
processes and products. It commits to resource efficiency, responsible handling of chemicals and
honest reporting.
Ecological footprint of TiO
2
products
As members of the Titanium Dioxide Manufacturers Association (TDMA), we support the life cycle
assessment, a rigorous scientific method for assessing the environmental impact of a product
throughout its entire life cycle – from the processes used in its production to the end of its useful life.
In 2022, we refreshed the data within the association, which will be publicly available in 2023.

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We have developed an accounting and reporting method to show the carbon footprint of titanium
dioxide products. The Life Cycle Inventory (LCI) data generated by this method has been verified by an
independent third party and is freely available in the European Life Cycle Database. TDMA also works
in synergy with the European Council of the Paint, Printing Ink, and Artist's Colours Industry (CEPE) to
ensure consistency between the methodology and the data in the relevant LCI databases. We also
encourage our stakeholders to use our LCI data to help assess the carbon footprint of their own TiO
2
applications. LCI data is freely available by sending an email to tdma@cefic.be.
Environmental footprint of paints and coatings containing TiO
2
Paints and coatings are the main applications of TiO
2
. The European Council of the Paint, Printing Ink,
and Artist's Colours Industry (CEPE) has commissioned an environmental product footprint of
decorative paints used for coating interior walls and ceilings, exterior walls, and interior and exterior
cladding, and an environmental product footprint over the lifetime of buildings. The results showed
that high-quality paints formulated with a high TiO
2
pigment content have the lowest PEF compared
to low-quality paints formulated with low TiO
2
and high filler content.
Colours formulated with a high TiO
2
pigment content have the highest opacity. This means that fewer
coats of paint are needed to achieve the same coverage. The use of TiO
2
pigments in paints also helps
to increase their durability, which in turn helps to extend their life.
The use of highly opaque and highly durable paints to decorate the product reduces the need for
recoating over the product's lifetime, helping to reduce its overall environmental footprint.
REACH Regulation
Titanium dioxide is registered under REACH, the EU-wide regulation to protect people and the
environment from the possible risks posed by chemicals.
Health safety of titanium dioxide
Strong scientific evidence shows that titanium dioxide is safe. Cinkarna Celje d.d. has been involved in
industry-led research for decades and has monitored independent studies that have found no evidence
of a potential cancer risk to humans from titanium dioxide. Current scientific evidence shows that the
use of products containing titanium dioxide is safe.
Recently, there have been debates about whether it can be harmful to humans or even cause cancer.
Following a proposal by the French Agency for Food, Environment and Health (ANSES) in 2016, the
European Chemicals Agency's (ECHA) Risk Assessment Committee (RAC) concluded in 2017 that TiO
2
meets the criteria for classification as a suspected cancer-causing substance (category 2) if inhaled. In
2020, the EU classified titanium dioxide in powder form as a suspected carcinogen by inhalation under
the EU's Classification and Labelling Regulation (CLP). In the classification, the EU authorities
highlighted that the suspected hazard could occur if the powder is inhaled in extremely high
concentrations over a long period of time.
The classification is based on one inhalation study in rats conducted under overload conditions. TDMA
(Titanium Dioxide Manufactures Assosiations) considers that this study is not an acceptable scientific
basis for classification. A thorough assessment of the weight of the evidence confirms that TiO
2
does
not cause cancer and does not have the intrinsic property to cause cancer. In addition, the RAC opinion
ignores data for over 24,000 workers demonstrating that there is no association between cancer in
humans and exposure to titanium dioxide. The RAC also concluded that the alleged hazard described
for TiO
2
is not specific to the substance, but is common to all powders known as poorly soluble low
toxic substances.
The titanium dioxide producers therefore took the European Commission to the European Court of
Justice, which in November 2022 confirmed that the classification was unreasonable and annulled it.
The annulled judgment means that titanium dioxide is not hazardous by inhalation and the
classification obligations no longer apply.

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The Regulation applied to titanium dioxide in the form of dust which, when inhaled, contains 1% or
more of particles with an aerodynamic diameter equal to or less than 10 microns. None of the products
of Cinkarna Celje met this criterion and consequently did not fall under the labelling obligation.
The main reasons for repealing the Regulation were therefore:
− that the requirement that the classification of a carcinogen must be based on reliable and
acceptable studies has not been met in the present case,
− that the classification and labelling at issue violated the criterion that only a substance that
has the intrinsic property (a property that a substance has in itself) of causing cancer can be
classified as a carcinogen.
Although there is no direct evidence of harm from titanium dioxide as a food additive E 171, the EFSA
(European Food Safety Authority) banned the use of this additive in June 2022. The decision was mainly
based on a precautionary measure and on the classification of titanium dioxide under the CLP
Regulation (Classification, Labelling and Packaging of Substances and Mixtures thereof), which, as
already mentioned, was repealed at the end of 2022.
Sustainable use
Titanium dioxide can also bring wide-ranging environmental and consequent health benefits. These
benefits can include:
− Energy efficiency in reflective coatings and "cool roofs";
− Cheaper renewable energy with efficient colour-sensitive solar cells;
− Resource efficiency with durable building materials;
− Waste reduction with lightweight packaging films;
− TiO
2
is also being used to tackle one of the planet's most pressing environmental problems
– air pollution, which is thought to cause more than 450,000 premature deaths every year
in Europe alone. The special titanium dioxide particles used in coatings can be activated
by light to neutralise air pollutants.
Titanium dioxide as a catalyst for the transition to a green economy
o Titanium dioxide helps create transparent solar cells
The climate transition requires green energy solutions. A new study has opened the way to the
affordable production of the first transparent solar cells by combining the unique properties of
titanium dioxide (TiO
2
) and nickel oxide (NiO). Thanks to their transparent nature, such solar cells
can be integrated into windows, vehicles, mobile phone screens and other everyday products.
Professor Joondong Kim and his colleagues from Incheon National University in South Korea
published their findings in the Journal of Power Sources in January 2021. The team pointed out
that TiO
2
is an ideal semiconductor in solar cells because it absorbs ultraviolet light invisible to us
while still transmitting visible light. It is also environmentally friendly. The study could lead to a
wave of innovation in the field of photovoltaic cells. Current solar panels tend to be opaque.
o Titanium dioxide drives innovation in green hydrogen technology
Researchers have discovered a new method for producing green hydrogen, made possible by TiO
2
.
The traditional method of producing hydrogen for fuel is based on electrolysis, which splits water
molecules into oxygen and hydrogen. However, industrial electrolysers are energy intensive and
require large investments.
To replace this method, Canadian and French researchers have used a natural mechanism known
as photocatalysis. In a joint study, the team developed specially designed and structured
electrodes that use sunlight to split water molecules into oxygen and hydrogen. TiO
2
was key to

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the development of this scientific advance. TiO
2
is a semiconductor known for being photosensitive
to UV light, but this accounts for only 5% of solar irradiation.
The research team has been working on the atomic composition of TiO
2
to extend its
photosensitivity to visible light, which could enable the production of electrodes that can absorb
up to 50% of sunlight. This could make the production of green hydrogen without electrolysis much
more efficient. Green hydrogen is often referred to as the fuel of the future. It is the building block
to unlock the decarbonisation of industry and heavy vehicles needed to meet ambitious climate
targets. This new technology can help to increase the role of green hydrogen in the energy mix of
the future.
o Titanium dioxide benefits the circular economy
The success of the EU's circular economy agenda depends on components such as titanium
dioxide, which improves the resource efficiency of many products and services. With its Circular
Economy Action Plan, the European Commission aims to lead the EU towards a much more
sustainable future, where resources used for production are minimised, materials are preserved
for as long as possible in the economy, and waste is minimised.
Titanium dioxide (TiO
2
) makes a major contribution to this, as its properties improve our products
in many ways:
− Efficiency: high standards of gloss, colour strength and opacity can be achieved with fewer
resources by using TiO
2
. For example, without TiO
2
in the paint formulation, higher quantities
of paint would be needed to achieve the same level of opacity;
− Resistance and protection: resistance to heat, light and weathering helps extend the life of
products. TiO
2
achieves a high level of performance in these areas by scattering visible and
near-infrared light and absorbing UV radiation, resulting in key protective properties. This
makes products last longer and, over time, generates less waste. The use of TiO
2
in everyday
products increases their durability to the benefit of the environment and the economy.
Membership in associations
We are aware of the importance of partnerships in order to achieve sustainable goals and to act
together in the market, and we are members of several associations, namely CEFIC (European Chemical
Industry Association), ESA (European Sulphuric Acid Association), TDMA (Titanium Dioxide
Manufacturer Association), the European Union Copper Task Force and the Green Network of Slovenia.
In the Association of the Chemical Industry (Chamber of Commerce and Industry of Slovenia), Marko
Cvetko, Head of General Human Resources Department and member of the Management Board, is
also a member of the Management Board of the Chemistry Section of the Association of Employers of
Slovenia. In the Celje Regional Chamber of Commerce, Aleš Skok, President of the Management Board,
is a member of the Management Board. Miran Špegel, Assistant General Director, is a member of the
Management Board of the Association of Metallic Materials and Nonmetals (ZKMN) of the Chamber
of Commerce and Industry.
We are members of the Slovenian Accreditation Council, and the representative of the conformity
assessment bodies is Lorna Fajšman.
We are committed to responsible, safe and sustainable TiO
2
production through the TDMA/Titanium
Dioxide Manufacturers Association.
Stakeholder relations
We cannot operate successfully without good and cooperative relationships with our key stakeholders.
We strive to create honest and long-term relationships at all levels of our business. In doing so, we

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follow our Code of Ethics and Conduct and respect human rights. We communicate regularly with our
stakeholders and involve them in our business processes where appropriate. Stakeholders are also our
source of feedback, so we take all their responses and any complaints with care and address the
content appropriately. We build relationships on constructive dialogue.
Stakeholder involvement
Our activities have an impact on a wide range of stakeholders, the most important of which are our
owners and supervisors, employees, suppliers, customers, the local community and other interested
publics. We communicate with our stakeholders through a variety of communication tools, with the
aim of transparency in the Company's operations and stakeholder engagement in the local and global
environment.
All activities are communicated to external stakeholders in accordance with an annual communication
plan approved by the Company's Management Board. This includes communication tools and channels
such as press conferences, press releases, news releases, publications on the website and social media,
company speeches or articles in the annual reports of sponsorship/donation recipients. We also inform
the public about specific events by e-mail, invitations, and regularly inform the Municipality of Celje,
city councillors and representatives of the city districts or invite the interested (local) public to a public
presentation.
Table: Overview of communication with stakeholders
Stakeholders
Communication objectives
Communication channels
Communication
frequency
Owners and
supervisors
− Effective governance and
strategic decision-making
− Notification of changes
− Monitoring,
implementing and
improving activities
− Identifying and managing
risks and opportunities
Annual management
review
1 time per year
Wider Management
Board College of Experts
4 times per year
Meeting of internal
auditors of integrated
management systems
2 times per year
Meeting with external
auditors of integrated
management systems
1 time per year
Meeting of project
management teams
The frequency of
meetings is set out
separately for each
project in the project
definition
Internal audit reports
For each area audited,
according to the annual
plan
Minutes of business units
and departments
Weekly or monthly
Quarterly and annual
report
Quarterly and annually
Employees
Internal newsletter
Cinkarnar
2 times per year

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Stakeholders
Communication objectives
Communication channels
Communication
frequency
− Strengthening company
loyalty and creating good
team relations
− Building relationships
between employees and
managers
− Creating a good working
climate
− Employee involvement in
work process
improvements
− Building employee
competences
− Professional and personal
growth and staff
development
− Informing employees
about new developments
and changes in the
company, in their field of
work, etc.
− Caring for the health of
our employees
Annual interviews
1 time per year
Regular training courses
Several times per year
Picnic
1 time per year
Electronic notifications
Regularly
CC um
Regularly
Social networks
Several times per week
Regular health checks
Depending on the risk
assessment for the
workplace
Open door to the Works
Director's office
Designated office hours
Suppliers
− Supplier compliance
check
− Notification of changes
and news concerning our
suppliers
− Coordinating purchasing
arrangements, resolving
challenges, etc.
Supplier evaluation
questionnaires
1 time per year
Electronic notifications
Regularly
Phone calls
Regularly
Supplier assessments
Occasionally according
to needs
Customers
− Creating long-term
relationships
− Awareness of new
product developments
− Authentic information
about our products
Satisfaction survey
1 time every two years
Electronic notifications
Regularly
Phone and video calls
Regularly
Personal meetings
Several times per year
Labelling of products
Regularly
Local
community
(municipalitie
s, municipal
communities)
− Building relationships and
cooperation with the
local community
− Communicating how
processes work,
monitoring
environmental impacts,
changes affecting local
populations
Company website
Regularly
Social networks
Several times per week
Press conferences
Several times per year
Open Door Day
Occasionally
Press releases
Several times per year

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Stakeholders
Communication objectives
Communication channels
Communication
frequency
− Supporting activities in
local communities
− Local community
development
Electronic notifications
Occasionally
Specialised
public
(professional
associations,
institutions,
schools,
institutes,
financial
institutions,
etc.)
− Involving the professional
public in research and
development activities
− Raising awareness of
company processes,
products and
environmental impacts
− Participation in events
− Professional skills
development
Company website
Regularly
Social networks
Several times per week
Competitions for schools
1 time per year
Press releases
Occasionally
Electronic notifications
Occasionally
Professional events
Occasionally
Quarterly and annual
report
Quarterly and annually
Investment events of the
Ljubljana Stock Exchange
2 times per year
Materiality matrix
In the context of responsible impact management, identifying the important content and interests of
all key stakeholder groups is central. Relevant topics are those that directly or indirectly affect a
company's ability to create, maintain or reduce environmental, social and economic value for itself, its
stakeholders and society at large. The importance of these topics or themes for Cinkarna Celje d.d. and
its stakeholder groups is shown in the materiality matrix. The creation of the materiality matrix is part
of the sustainability management and reporting of Cinkarna Celje d.d. and reflects the assessment by
internal and external stakeholders of material, environmental, social and economic issues in relation
to the Environment, Society and Governance (ESG) domains and their insight into their real
significance.
Through the materiality assessment, we identify and rank areas where the greatest sustainability
impact and value can be achieved, identify the greatest opportunities and risks from the perspective
of different stakeholders, manage stakeholder relationships and sustainability materiality areas based
on these identifications, and improve our services, products, end-use and disposal over the long term.
We are revealing the materiality matrix for the first time. The process leading up to the materiality
assessment followed the following steps: identification of relevant sustainability themes across the
Environment, Society and Governance (ESG) domains, survey of key stakeholders (e-questionnaire
method), analysis and development of the materiality matrix.
We have identified six main stakeholder groups: owners, supervisors (Cinkarna Celje d.d.), employees,
suppliers, customers, the local community (municipalities, municipal communities) and the specialised
public (professional associations, institutions, institutes, financial institutions, etc.). A total of 362
respondents answered the electronic questionnaire between 20 October 2022 and 18 November 2022.
Stakeholders from Slovenia and abroad participated in the survey. In order to create a materiality
matrix, stakeholders were grouped into two groups when analysing the responses. One group included
owners and supervisors (important for Cinkarna Celje d.d.) and the other group included employees,
suppliers, customers, the local community and other publics (important for stakeholders). The
questionnaire covered all three strands of sustainability management, namely the natural
environment (13 indicators), the social environment (19 indicators) and corporate governance (20
indicators).

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The indicator with the highest scores in all categories is financial stability and long-term growth, which
Cinkarna Celje rates as 92% important, while stakeholders rate it as 80% important. For stakeholders,
quality is the top priority (83%), with Cinkarna placing it a high second (84%). Both agree that ethics
and compliance, commitment to sustainable development and a high level of safety are other priority
categories. For Cinkarna Celje, customer focus is of high importance (80%), while for stakeholders it is
of lower importance (70%). Stakeholders, on the other hand, place higher importance on preventing
corruption and bribery (73%) than Cinkarna Celje (62%), which does not rate this area as high risk.
In the social area, the materiality assessments between Cinkarna Celje and its stakeholders are fairly
consistent. Both rank fair pay as the most important issue (85% for stakeholders and 81% for Cinkarna).
Health and safety at work of employees is a high second for both Cinkarna Celje and stakeholders. This
is followed by equal pay for men and women and equal opportunities for employees. Respect for
human rights also ranks high (74% for Cinkarna Celje and 73% for stakeholders).
Cinkarna Celje's most important environmental indicator is energy consumption (72%), followed by
pollution incidents (70%) and waste management (68%). Respondents rank air pollution highest (79%),
followed by water pollution and protection of water resources (78%). Cinkarna Celje gives these issues
slightly lower importance (64% and 65%), as it considers that these areas are managed at a high
technological level. For the respondents, soil pollution is among the indicators of high importance
(76%), while Cinkarna Celje rates this indicator with 62% importance. Stakeholders rate the
management of harmful substances - 74% (Cinkarna Celje 61%), as well as pollution incidents (73%) -
slightly higher in importance than Cinkarna Celje. Stakeholders rate the use of energy (65%), slightly
lower in importance than Cinkarna Celje, and the carbon footprint of the company and its products
even lower.
All of these aspects are classified as important and are therefore managed strategically by the
Company in the long term.

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Diagram: Materiality matrix of Cinkarna Celje d.d.

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SOCIAL ASPECT
We build genuine relationships with our employees, build long-term partnerships with our suppliers,
open new routes to connect with our customers and engage with the local environment.
Employee relations
We recognise that employees are the engine and heart of the Company and its most important
ambassadors, which is why we create honest and open relationships with our employees, foster
innovation and inclusiveness, and build on positive interpersonal relationships.
Recruitment and staffing is based on the principle of non-discrimination and equal opportunities,
ensuring conditions for the personal and professional development of all staff. We create the
conditions for well-being at work, paying particular attention to the personal and professional
development of our employees. In line with the Diversity Policy, we respect the principle of inclusion
and equal opportunities, including in the composition of supervisory and management bodies. In
recruitment and staffing, we act in accordance with the Recruitment and Training Policy, which
improves and enhances the qualification structure of our employees and facilitates internal transition
between jobs.
In 2022, human resources activities were subordinated to the achievement of the basic objectives of
the business policy, where particular attention was paid to finding innovative ways of recruiting and
to the social cohesion of the Company, which was under considerable pressure in terms of labour costs
due to the situation on the titanium dioxide market, the general situation in the country, high inflation
and the rise in interest rates. We continued our rational policy of external recruitment, covering the
needs of professional and highly-educated workers and university graduates, while most of the other
needs were addressed by internal redeployment and recruitment of professional staff. We have
focused on rejuvenating the workforce in individual organisational units, replacing critical posts,
finding employees with deficit occupations, especially in the natural sciences, and intensively
negotiating retirement with those employees who have already fulfilled their retirement conditions
and those who will be able to meet these conditions at the Employment Service (maximum 25 and 19
months, respectively until the condition is fulfilled).
In the future, further optimisation of the staffing structure is foreseen, through rehiring and
recruitment of new young and technically qualified staff. Investments in development, training and
further improvement of the working environment of employees will also continue.
Table: Employees by gender in 2018-2022
2018
2019
2020
2021
2022
Employees by gender
Number
%
Number
%
Number
%
Number
%
Number
%
Men
706
77.7
655
77.4
640
77.7
629
79.3
617
79.6
Women
202
22.3
191
23.6
184
22.3
164
20.7
158
20.4
Total
908
100
846
100
824
100
793
100
775
100
As at 31 December 2022, Cinkarna Celje d.d. had 775 employees, 79.6% male and 20.4% female. This
gender structure is understandable, as certain production processes involve more demanding working
conditions, as well as specialised technical occupations, which are more popular among the male
gender. The number of men is steadily increasing in relation to women as a result of the optimisation
of the organisational structure. The number of total employees decreased by 2.3%, or 18 employees,
taking into account the business policy of the Company's Management Board, the diversified business

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results of the individual business units, and the planned recruitment. In 2022, 48 employees left the
Company, of which 17 were retirements.
Table: Employees by age in 2018-2022
2018
2019
2020
2021
2022
Percentage of
employees by
age (%)
M
W
T
M
W
T
M
W
T
M
W
T
M
W
T
Under 30 years
9.1
1.3
10.4
10.3
1.5
11.8
9.2
0.1
9.3
10.8
1.0
11.9
12.3
1.4
13.7
30-50 years
31.6
4.6
36.2
35.2
5.6
40.8
37.0
6.6
43.6
35.4
6.2
41.6
35.9
6.3
42.2
Over 50 years
36.0
17.4
53.4
31.9
15.5
47.4
31.4
15.7
47.1
33.0
13.5
46.5
31.5
12.6
44.1
Total
76.7
23.3
100
77.4
22.6
100
77.6
22.4
100
79.3
20.7
100
79.7
20.3
100
M = Men
W = Women
T = Total
The largest age group in 2022 was employees aged 50 and over, accounting for 44.1%. This was
followed by employees aged between 30 and 50, who accounted for 42.2% of the workforce. The
smallest group of employees is made up of employees aged under 30. We are aware of the rising
average age of our employees and we are taking several measures to encourage the recruitment of
younger staff and to enable young people to develop their professional competences, including by
creating a stimulating working environment. We provide students with full-time work placements and
offer scholarships for training as chemical technicians, mechanical technicians, toolmakers, chemical
engineers, mechanical engineers and electrical engineers. We run mentoring programmes for new
recruits to transfer skills, and we try to raise interest in chemistry among young people by engaging
with the wider community.
Table: Employees by level of education in 2018-2022
Level of
education
2018
2019
2020
2021
2022
No
%
No
%
No
%
No
%
No
%
VIII
23
2.5
20
2.4
18
2.2
19
2.4
19
2.4
VII
135
14.9
134
15.8
137
16.6
139
17.5
142
18.3
VI
58
6.4
53
6.3
54
6.5
56
7.1
58
7.5
V
299
32.9
280
33.1
277
33.6
269
33.9
263
34.0
IV, III
291
32.1
275
32.5
265
32.2
250
31.5
236
30.5
II, I
102
11.2
84
9.9
73
8.9
60
7.6
57
7.4
Total
908
100.0
846
100.0
824
100.0
793
100.0
775
100.0
Table: Number of student work placements and scholarships in 2018-2022
2018
2019
2020
2021
2022
Work placements
60
71
52
76
50
Scholarships
20
26
27
19
12
Recruitment and training policies have a positive impact on the skills structure, which is growing
despite long-term staff optimisation. In addition to internal redeployment and job pooling, the
recruitment policy has a slower but positive impact on the matching of actual and required
qualifications. We invest in those staff whose education is of benefit to the Company and meets the
needs of the work process, and in those who are identified as key to the future development and
growth of the Company.
Going forward, we will continue our policy of productive redeployment within the Company,
optimising our organisational structure and reducing the proportion of unskilled labour through

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selective recruitment. We will also seek to optimise the share of administrative staff through
consolidation and redeployment. We will improve the skills structure of our workforce by recruiting at
higher qualification levels and by supporting and promoting education among our employees. In
particular, we aim to reduce the percentage of employees at qualification levels I and II and increase
the number of employees with qualification levels V, VI, VII and VIII, or with secondary and higher
education qualifications.
All employees are assessed on their performance, and 6% of employees have career plans.
Management encourages the search for new solutions and accepts suggestions for improvement.
Innovation is rewarded accordingly.
Table: New employees by gender in 2018-2022
New employees
2018
2019
2020
2021
2022
Men
11
7
7
23
28
Women
31
13
23
2
4
Total
42
20
30
25
32
Table: Staff turnover by gender in 2018-2022
Turnover
2018
2019
2020
2021
2022
Men
17
17
13
30
38
Women
21
66
46
21
10
Total
38
83
59
51
48
Turnover rate (%)
4.2
9.0
6.3
6.3
6.2
In 2022, we recruited 32 new employees in various professional fields such as chemistry, electrical
engineering, mechanical engineering and economics, generally with IV, V and VII level professional
education. The turnover rate was 6.30%. The number of employees in a given year depends on the
needs of the work process, terminations of employment contracts for various reasons, and specific
needs.
The recruitment plan is based on the production and sales plan (including investment plans), taking
into account the possibility of retirement and in correlation with the modification of the change in the
Company's organisational structure, optimising the economics of production processes and increasing
activity in specific areas of expertise. The remaining staff is recruited according to the needs of the
work processes and the introduction of new technologies.
Cinkarna Celje d.d. also employs people with disabilities. In 2022, they accounted for 7.2% of all
employees. This is a relatively high proportion, exceeding the legal quota for companies by less than
one percent. These are employees with varying degrees of disability and their work or workplace is
adapted to enable them to perform their work according to their level of disability, in line with their
abilities.
Table: Percentage of employees with disability status in 2018-2022
Employees with disabilities
2018
2019
2020
2021
2022
Number
76
63
58
55
56
Percentage (%)
8.4
7.4
7.0
6.9
7.2
Over the years, we have seen an upward trend in the number of workers restricted from work due to
a medical condition. Thanks to an active policy of cooperation with the Occupational Medicine,

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Transport and Sport and the ZPIZ Disability Commission, the proportion of disabled people in the total
number of employees has decreased for the fifth consecutive year. The positive trend is therefore
continuing. Taking into account the age structure of the workforce and the changes in legislation,
which is more restrictive towards the retirement of disabled people, we do not expect any significant
improvement in this structure at this stage. The main reason for the increase in the number of people
with disabilities is the nature of production in the past. Despite technological modernisation, no
improvement can be expected in the near future.
Table: Employees by employment status in 2018-2022
Employees by employment status
2018
2019
2020
2021
2022
M
W
T
M
W
T
M
W
T
M
W
T
M
W
T
Permanent
649
184
833
616
181
797
615
180
795
593
158
751
583
155
738
Fixed term
57
18
75
39
10
49
23
4
29
36
6
42
33
4
37
Full-time
703
199
902
652
187
839
636
176
812
625
157
782
612
151
763
Part-time
3
3
6
3
4
7
4
8
12
4
7
11
4
8
12
Agency work
12
7
19
29
9
38
21
7
28
9
22
31
17
11
28
Student work
8
5
13
6
5
11
9
4
13
8
0
8
3
2
5
M = men, W = women, T = total
The majority of employees (95.2%) in 2022 were permanent and full-time (98.5%). A smaller
percentage of employees (1.5%) worked part-time. Employees receive the same benefits regardless of
whether they are permanent or fixed-term, full-time or part-time. We also employ agency workers,
with the possibility of regular employment with the Company. In 2022, agency workers accounted for
3.6% of total employees. These are mainly production, warehouse and cleaning jobs. In this way we
provide more flexibility and screen potential employees.
We also open up work opportunities for school and university students through temporary student
work. In this way, they can gain experience and work habits, as well as new skills, which can lead to a
regular job with the Company later on, after they have finished their studies.
Table: Maternity and paternity leave in 2018-2022
Maternity and paternity leave
2018
2019
2020
2021
2022
Number of employees
7
14
12
6
10
Number of working days
933
1,420
1,656
681
1,088
In 2022, 10 employees took maternity or paternity leave, which is 1.3% of the workforce. This
represented a total of 1,088 working days.
Collective agreements
Employment and working conditions are defined in collective agreements, which cover all employees,
including agency workers and those doing student work. The Company’s collective agreement and the
Employment Relations Act also lay down notice periods.
Active dialogues and collective bargaining are held with the Company's workers' representatives to
define additional rights for workers or to amend and supplement the Company's collective agreement.
We have cooperation agreements with the Company's representative trade unions and the Works
Council, under which we respect employees' right to freedom of association.

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Remuneration and freedom of association
Employee remuneration is also defined in accordance with the Company's collective agreements. For
the management and supervisory bodies, a remuneration policy was adopted in 2022 but not
approved by the General Meeting. Based on the amendments, we are preparing a revised policy which
will be submitted to the General Meeting for approval in 2023.
The minimum wage for employees in 2022 is EUR 1,074.43 gross. The average gross wage was EUR
2,603.06, 22.25 percent higher than the average gross wage (EUR 2,023.92) in Slovenia in 2022 (source:
SURS). All employees are treated equally in wage setting, regardless of sex, nationality, racial or ethnic
origin, national or social origin, gender, colour, health, disability, religion or belief, age, sexual
orientation, marital status, trade union membership, wealth or other personal circumstances. The
value of the standard starting salary is determined according to the evaluation of each position. Over
the years, both the gross minimum wage and the gross average wage in the Company have been
increasing steadily, as a result of keeping up with current national legislation, our responsibility
towards our employees, and negotiating with the social partners to ensure that our employees can live
in dignity in the face of the rising cost of living.
Table: Gross minimum wage and average wage in 2018-2022, in EUR
2018
2019
2020
2021
2022
Gross minimum wage (EUR)
842.79
886.63
975.30
1,024.24
1,074.43
Gross average wage (EUR)
2,203.36
2,296.92
2,316.42
2,421.46
2,603.06
Supplementary pension insurance and other bonuses
Cinkarna Celje d.d. has a supplementary pension insurance financing plan for all employees with Modra
zavarovalnica, which is regularly complied with and the obligations under this plan are settled monthly.
The minimum amount of the premium to be paid into the umbrella pension plan in accordance with
the plan is:
− Employer – 2.90% of the average wage in the RS for the first half of the previous year;
− Employee - 1.45% of the average wage in the RS for the first half of the previous year.
Employees of the Company's professional firefighting unit are entitled to seniority benefits. They are
subject to regular monthly contributions of 8.2%, which are reported to the insurance company
Kapitalska družba pokojninskega in invalidskega zavarovanja d. d.
Protection of personal data
We pay particular attention to the protection of personal data, which we protect in accordance with
EU Regulation 2016/679 (GDPR) or applicable domestic law, if different or stricter rules are required.
In the event of any perception of illegal or unethical conduct that damages the Company's reputation
or business, or violates the dignity and personal integrity of an individual employee, it is our duty to
report it immediately and to initiate appropriate proceedings or measures.
Employee training and competence development
We recognise the importance and value of skilled employees, which is why we provide regular training
and competence development. The largest share of education and training is mandatory, mainly in the
areas of occupational health and safety, handling hazardous chemicals, fire safety, environmental
protection and standards management.
We have not provided human rights training in the past, and every new employee is informed of the
Code of Ethics and Conduct upon recruitment.

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Table: Employee training in 2018-2022
2018
2019
2020
2021
2022
Total number of employees participating in
specific functional training
6,083
4,235
3,519
3,098
3,513
Total number of hours of content-specific
training
17,166
16,488
10,065
6,947
12,316
Average number of training hours per employee
18.97
18.86
11.97
8.67
15.85
Average financial value of training per employee
(in EUR)
466.30
446.10
273.80
206.2 0
435.77
In 2022, employees spent an average of 15.85 hours in training. The increase in the number of training
hours compared to the previous year is due, among other things, to the relaxation of restrictions and
measures in relation to the epidemic of COVID-19. This was also reflected in the content of the training,
which was refocused on advanced training in the specific area of expertise of individuals and on
mandatory regular training. In 2022, 3,513 participants attended specific functional training courses
both in-house and outside the company, and the total number of training hours was 12,316, an
increase of 77.3% compared to the previous year.
Mentorship system
The Company has a well-established mentoring system for all external stakeholders (students,
scholarship holders and pupils) who enter the Company to improve their knowledge and to carry out
practical training. We have 125 internal mentors with a mentoring qualification. For new hires and job
changes, we have a training programme in place for each job and for each individual.
Recognising innovative employees
Motivated and competent employees are one of the most complex challenges of any modern
management. We recognise that the concept of employee performance means that we also need to
ensure that individuals are not only satisfied in their work, but also successful in their work. The idea
"Clarity is the key, kindness is the way" gives us, in a very simple way, the basic guidelines on the way
to achieving high levels of satisfaction, performance and thus employee engagement and motivation.
To achieve this, Cinkarna Celje d.d. has introduced a system of rewarding useful suggestions and
innovations through the innovation office called CC um, where our employees are given the
opportunity to express their innovative ideas and concepts. Through the electronic submission of
ideas, we centrally collect suggestions from employees in all areas of activity, rank them, evaluate
them and reward the useful ones accordingly. Suggestions that do not result in a benefit are also
rewarded with a commendation, and all applicants are entered into a prize draw at the end of the year.
The top innovators who submit the most useful ideas are awarded a bronze, silver or gold CC Mind of
an Innovator badge. The best proposals are also published in Cinkarnar (the internal magazine of
Cinkarna Celje d.d.), and the best innovators are personally received by the Company's Management
Board at the start of the financial year. The best innovators in each year and throughout the lifetime
of the CC um system are publicly praised and rewarded with useful prizes.
Leadership Academy
The main objective of the Leadership Academy development programme is to empower key and
prospective employees to effectively and professionally perform the core competencies of team
leadership, i.e. to develop systems, methods and practical implementation skills for successful
leadership. In parallel with skills training, it is also about developing the personal capabilities to be a
successful leader in the performance of his/her tasks and responsibilities, and in the achievement of
the Company's objectives and strategies.

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The entire development path consists of 10 content modules totalling 80 hours, which complement
each other and together constitute a comprehensive development programme for upgrading
leadership skills and personal development of the individual. These modules are:
• Leadership and its importance
• I must first lead myself in order to lead others
• Professional leadership communication
• Leading different individuals in different situations
• How to motivate an individual
• Effective time management
• Effective conflict management and stress management
• How to prepare an effective business presentation
• How to implement change effectively
• Effective teamwork
The development programme is delivered through live and virtual training sessions, complemented by
individual or group work assignments between sessions and one-to-one coaching for all participants.
Moja Cinkarna app
In April 2022, the Moja Cinkarna web and mobile app was launched and is available to all employees.
Employees can use it on their work and/or personal computer and on their mobile phone. The main
purpose of the app is to give employees easy and secure access to specific parts of the Oracle business
information system. The application allows employees to view their annual leave balances and usage,
view the status of their time registration hours, view and order lunch in all three canteens, issue a
single exit pass, electronically validate documents and publish news for timely information. Employees
have to register in the application to ensure the security of their personal data. The app aims to make
processes quicker, easier and less paper intensive. At the end of 2022, 77.6% of employees were using
the app.
Cinkarnar internal newsletter
Twice a year, we publish an internal newsletter, Cinkarnar, which is distributed to all employees. It
informs employees about news, achievements, events, competitions and other activities in the
Company. At the same time, the newsletter highlights those employees who contribute to the
Company's development through their innovations and dedication, as well as employees who have
retired, certain new hires and others. We also present the work of individual departments and their
role in our Company. We also educate our employees about new developments in the industry and
provide useful information for working safely.
Open door of the Works Director's office
In 2021, we set up formal open hours in the Works Director's office, where employees can come with
suggestions, ideas and initiatives to improve interpersonal relations or other topics of concern to
employees, as well as problems that the Works Director is working to resolve and, where appropriate,
raise.
The response from employees has been positive, as they have direct access to a member of the
Management Board, who passes on certain matters at Management Board meetings.
Employee engagement and satisfaction survey
Well-being in the work organisation, or employee satisfaction, is very important for good quality work.
Only satisfied employees perform optimally and conscientiously in their job and are a direct reflection
of the higher or lower level of quality of working life in the Company. Every year, the Company
conducts a survey entitled Analysis of the Quality of Job Satisfaction at Cinkarna Celje d.d., which is a
very good way to determine either individual satisfaction with the work situation or to analyse the

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organisational climate in the Company and, on the basis of the analyses, to prepare objectives and
measures to improve the state of employee satisfaction.
Employee engagement is measured alongside employee satisfaction, as it is an important factor of
competitive advantage and contributes significantly to the performance of both individual employees
and the Company. Engaged employees are more productive, more focused on quality customer service
and bring more added value to the Company. Engaged employees are also less likely to leave the
Company at the first new job offer.
The results of the survey are carefully reviewed and, based on the findings, tasks and targets are set
to achieve a steady increase in the number of engaged employees and to create a work environment
with happy employees.
Health and safety at work
We are constantly striving for improvement in occupational health and safety and set ourselves targets
every year. Our overarching objective is "zero injuries at work". We regularly monitor progress towards
this target and each year we set short-term performance targets to help us achieve our overarching
goal. We operate in accordance with ISO 45001 – Occupational Health and Safety.
The occupational health and safety tasks are carried out by the Occupational Health and Safety
Department, which is subordinate to the Company's Management Board, in such a way that the
employees who carry out the occupational health and safety tasks are independent of the service users
in their decision-making. We ensure compliance with legislative requirements in the field of
occupational health and safety, and fire safety. We actively work to reduce accidents at work and
improve working conditions by introducing activities to identify, record and eliminate potential hazards
and near misses in the working environment. We take preventive fire-safety measures to prevent fires
and regularly monitor, inspect and service fire-fighting equipment to ensure active fire protection.
In 2022, we again obtained the Responsible Care Programme certification. This demonstrates our
voluntary commitment to continuous improvement in environmental, health and safety performance.
Three main objectives in the field of occupational health and safety:
− Zero injuries at work – overarching objective
It is a long-term objective to which all other objectives are subordinate. It is being pursued step by step
through various preventive actions and improvements.
− Improvements in occupational health, safety and fire safety
We tackle the potential causes of occupational injuries by identifying and breaking down process risks
that can have a negative impact on health and safety at work.
− Organising and implementing employee health promotion
We regularly promote employee health through a programme that is adapted every year.

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Table: Financial investments in occupational health and safety in 2021-2022
Field
Type of cost
2021
2022
Value in
EUR
Value
in %
Value in
EUR
Value
in %
Technical
safety at work
Personal protective equipment
337,819
39.4
266,781
39.7
Direct costs to the Company of work-
related injuries – insurance pay-outs
260,349
30.5
4,673
0.7
Cost of work-related injuries (employer
contribution – BS)
64,705
7.6
44,597
6.6
Warning signs (stickers, boards)
2,238
0.3
1,065
0.2
Measurements in the working
environment
20,260
2.4
17,960
2.7
Health and safety training
3,360
0.4
1,946
0.3
Inspections of work equipment
26,742
3.1
17,126
2.6
Occupational
health
Preventive health checks
56,268
6.6
63,347
9.4
Beverages
15,946
1.9
16,147
2.4
Biological monitoring
2,418
0.3
984
0.2
Health promotion
1,399
0.2
18,974
2.8
First aid costs (lockers, sanitary supplies)
2,879
0.3
2,854
0.4
Disinfection, disinsection, deratisation
5,854
0.7
7,561
1.1
Operational
fire safety
Funds earmarked for fire safety (spare
parts for fire extinguishers, fire
extinguishers, hoses, couplings, protective
mats, inspections, fire safety plans,
installation of fire-fighting systems,
upgrading of fire alarm systems,
inspection of active fire protection
systems, etc.).
52,763
6.2
208,029
30.9
The employer is obliged to provide employees with appropriate personal protective equipment. In
workplaces where the risk of occupational injury and ill-health is higher, employees shall be provided
with all personal protective equipment designed to prevent injury and ill-health. Which personal
protective equipment is required in a particular workplace and what standards the equipment and
employees must meet are set out in the Risk Assessment for each workplace.

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Injuries at work
Occupational injuries are monitored using an index of frequency (IF), which represents the number of
sickness absences per 100 employees. We also monitor the rate of working days lost due to sickness
absence using the so-called PRP factor, which represents the ratio of the number of injuries at work to
the number of sickness absences per number of employees.
Table: Injuries at work in 2018-2022
Event
2018
2019
2020
2021
2022
Number of injuries at work
14
15
13
12
7
Number of days lost
837
346
334
329
451
Number of injuries/100 employees
1.6
1.7
1.5
1.4
0.9
PRP factor*
13.0
5.7
5.0
4.7
4.0
*PRP is a factor representing the ratio of the number of injuries at work to the number of sick days per
number of employees.
Chart: Number of injuries at work per 100 employees in 2018-2022
There were no serious injuries at work in the 5-year period, nor any deaths or occupational diseases.
Injuries at work are also monitored for agency workers. In the 5-year period (2018-2022), there were
15 injuries at work, with a total of 251 working days absent.
As the graph shows, injuries at work per 100 employees are slowly decreasing, falling from 1.7 injuries
per 100 employees in 2018 to 0.9 injuries per 100 employees in 2022.

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Chart: Comparison of injuries at work per 1,000 employees between Cinkarna Celje, C20 sector
(manufacture of chemicals, chemical products) and Slovenia. Data are available on the NIJZ website for
2021, so the comparison refers to the years 2017-2021.
We have a system of rules in place that we use to record and report on incident statistics and to address
identified deficiencies. In the event of an accident at work or sudden illness of a worker, the Company
organises and provides first aid and rescue services at all workplaces, both during regular and shift
working hours. In the event of an injury at work, the employee must immediately inform his/her
supervisor, who must report the accident to the Occupational Health and Safety Department.
In addition to accidents at work, near misses and potential hazards are monitored and the causes or
prevention of accidents are regularly recorded and addressed. In 2022, we identified 85 potential
hazards, which we are addressing on an ongoing basis, and 7 near misses. In 2022, we identified almost
38% more potential hazards than the previous year, which is mainly due to a more systematic approach
to identifying potential hazards in maintenance work. The Minute for Safety activity was conducted
among production workers in various formats and time intervals, with the aim of briefly discussing the
progress of the shift and any potential hazards identified in each production facility before the start of
each shift. In addition, in the event of an injury at work, the causes of the incident are discussed, as
well as other topical issues relating to safe and healthy work.
Identification and breakdown of process risks in the area of occupational health and safety and
measures to reduce emissions into the working environment were carried out in all production
business units.
Table: Identified potential hazards and near misses in 2018-2022
Event
2018
2019
2020
2021
2022
Potential hazards
61
56
47
32
85
Near misses
5
3
3
6
7
Absenteeism
The average absenteeism rate for employees increased by 1.53 percentage points to 23.67% in 2022
compared to the previous year, due to more sickness absences, mainly due to COVID-19, other illnesses
and off-the-job injuries. The structure of the illnesses varied according to the course of the epidemic.

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The causes of absenteeism at Cinkarna Celje d.d. and the related sickness absence were mainly related
to the epidemic of COVID-19 and the nature of the work (heavy, physically demanding work). Injuries
outside work and maternity absences also increased. The high average age of employees (46.98 years),
four- or multi-shift working (42.89% of employees work in several shifts), the higher number of
disabled persons (7.2% of all employees) and the increasing number of long-term sick leaves, mainly
due to serious illnesses, locomotor disorders and cardiovascular diseases, also have a significant impact
on absenteeism.
Table: Absenteeism in 2018-2022
Absenteeism
2018
2019
2020
2021
2022
Sick leave (%)
5.43
6.70
6.43
7.27
7.45
Total volume of absences (%)
23.41
23.71
24.97
22.14
23.67
COVID-19
In the wake of the COVID-19 epidemic, we took a number of actions at the operational risk level, which
were published, updated and managed on our extranet and intranet on an ongoing basis. During the
epidemic, we had all coffee machines closed, banned non-urgent visits by external contractors and
non-urgent travel outside the company, established a protocol of mandatory wearing of protective
masks by drivers when entering freight transport, cancelled all non-urgent trainings, organised work
in a way to keep employees in compliance with Article 137 of the Labour Relations Act (ZDR-1), sent
employees on standby with 100% compensation, ordered homeworking due to exceptional
circumstances, established protocols for the provision of personal protective equipment, and followed
the instructions/recommendations of the NIJZ institute and the Government of the Republic of
Slovenia. On 15 September 2021, the Government of the Republic of Slovenia issued a Decree on how
to comply with the condition of being sick, vaccinated and tested to contain the spread of SARS-CoV-
2 infections, which introduced the PCT condition for all employees and external visitors working at the
Company and was further supplemented during the year. The decree and the introduction of self-
testing and the accompanying documentation and records were implemented accordingly. We also
monitored all intervention laws and regulations issued by the Government of the Republic of Slovenia
and, in certain parts, enforced or successfully implemented them in the Company.
Workplace risk assessment
We have a system in place to assess workplace risks according to their incidence and intensity, which
is ongoing. Based on the results, we produce a Risk Assessment for all workplaces and an Occupational
Health and Safety Risk Register, which shows employees' exposure to physical, chemical, social and
biological risks. Where risks are identified, we identify and take appropriate action to reduce
employees' exposure to hazardous working conditions, assigning responsible persons and setting
deadlines for the elimination or reduction of individual risks.
The Risk Assessments show that risks related to increased noise (list of noisy workplaces), unfavourable
microclimatic conditions (increased temperature in workplaces during the summer months), and
chemical and mechanical hazards stand out in individual workplaces.
Employee involvement
Workers and their representatives are given the opportunity to participate in all matters relating to
ensuring safe and healthy work. They are involved in the assessment of risks for individual workplaces
and in the preparation of Risk Assessments.
The Works Council has an Occupational Health and Safety Committee, which includes a safety engineer
as an external contributor to help solve occupational health and safety issues.

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Health promotion at work
Good health is a prerequisite for a good and successful life and work – both for the individual and for
the organisation. Our annual health promotion programme aims to maintain and improve the physical
and mental health and well-being of our employees, as well as to help with early detection of various
medical conditions. It involves active support from the employer to improve the overall health and
well-being of employees. The health promotion programme is developed on the basis of an assessment
of employees' needs. Thus, the programme takes into account an analysis of the health status of
employees based on periodic health checks and an analysis of sickness absence by disease group and
economic activity.
Some of the most important activities:
− cardiovascular disease prevention (body composition measurements, blood fat control, no-
cigarette day),
− support for the SVIT programme (lectures, leaflets, gut model),
− vaccination (tick-borne meningoencephalitis, influenza, COVID-19),
− sports games for employees,
− cycling to work,
− coping with stress – workshop with a psychologist,
− prostate screening,
− participation in the Zdravi project, organised and implemented by the Chamber of Commerce
and Industry of Slovenia - Association of the Chemical Industry.
We also give employees the opportunity to take part in various sports activities outside working hours,
such as working out at a gym, table tennis, badminton, boxing, tai bo, basketball, bowling, swimming,
and fund their participation in sports activities, such as transport for the mountaineering section, entry
fees for the cycling section or funding for the business football league. We also provide them with the
possibility to use holiday facilities at a good price in various locations (Rogla, the sea, Atomske toplice,
Logarska dolina) and co-finance subscriptions to the Slovenian Folk Theatre in Celje.
Cycling to Work
For several years now, Cinkarna Celje has been encouraging its employees to take part in the Cycling
to Work campaign. Every year, more than 150 cyclists cycle to work. Each of them receives a practical
gift, a T-shirt with the Company logo and a healthy breakfast. They come from near and far around
Celje, Slovenske Konjice, Laško, Rimske Toplice, Vinske Gora and even from Radeče, 30 kilometres
away. Many employees cycle to work regularly.
The Cycling to Work campaign aims to encourage employees to use their bicycles to get to work, as it
has many environmental and health advantages over other modes of transport.
CC um for many improvements
Continuous improvement, dictated by quality standards and guidelines, is the driving force behind
progress and continuous improvement in all areas of the Company's operations. Employees can also
submit their ideas and suggestions for improving health and safety at work via the CC um app. The
system for collecting useful suggestions has triggered 0.17 improvements per employee. The highest
number of improvements was in the areas of work organisation and process, occupational health and
safety, and reduction of energy and material consumption.

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Supplier relations
Our products and raw materials are part of global supply chains. The supply chain includes suppliers of
raw materials, packaging, spare parts, technical supplies and services. Suppliers and their activities vary
by business unit. Suppliers are divided into five key groups:
− suppliers of titanium-bearing ores,
− suppliers of other raw materials,
− suppliers of packaging materials,
− suppliers of spare parts and technical materials,
− service suppliers.
Chart: Breakdown of procurement by five key groups in 2022
Supplier evaluation
We evaluate our key suppliers annually on commercial and technical terms and whether the supplier
is certified to ISO 14000 – Environmental Management Systems. If they are not ISO 14000 certified,
we also check certain environmental indicators: whether their activities cause emissions to air or water
and how they control these emissions. We also check the use of raw materials and energy inputs, the
collection and recovery system for packaging waste and whether their activities cause excessive noise.
In 2022, we also included supplier distance as an assessment indicator, which is also important in terms
of reducing transport emissions.
A Supplier Sustainability Code of Conduct is in preparation, setting out our basic requirements of
suppliers in line with our sustainability guidelines and targets. We aim to have at least 50 key existing
and new suppliers familiar with the Code by 2023, and to have them declare their acceptance of the
Code's terms and conditions.
In the context of the annual supplier evaluation, we evaluated 56 suppliers in 2022. In terms of
location, 24 of the suppliers evaluated are from Slovenia, 12 are within 500 km, 6 are between 501 and
1,000 km, 7 are between 1,001 and 2,000 km, 3 are between 2,001 and 3,000 km and 4 are above
3,001 km. 64% of the suppliers are less than 500 km from our company.
35 suppliers are ISO 14000 certified and the remaining 21 suppliers were verified by a questionnaire
that included environmental criteria. 20 suppliers answered the questions, 1 supplier did not answer.

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Highlights of the supplier assessment against environmental criteria in 2022 show that 32% of the
suppliers included in the assessment cause air emissions through their activities. The majority of these
suppliers also monitor and control their emissions. 11% of suppliers have emissions to water from their
activities and also monitor and control these emissions.
77% of the assessed suppliers manage their input material and energy recovery to the highest possible
level, the rest do not or did not answer this question. 84% of the suppliers are involved in a system for
collection and recovery of packaging waste, the rest are not. None of the suppliers assessed generates
excessive noise and ionising or other non-ionising radiation to the surroundings.
Based on the results, we have assessed two suppliers as having a potential negative impact on the
environment. Otherwise, we did not identify any significant actual or potential negative environmental
impacts in the supply chain. In the event that any of our suppliers do not meet the criteria that we
consider necessary, we inform them and encourage them to improve in the interest of a longer-term
partnership.
The greatest risk of child labour is with suppliers from third countries such as African countries and
China. Two of the 50 leading materials are thus exposed. One is ilmenite (titanium-bearing ore), which
is mined in Mozambique. The supplier of this material, with whom we cooperate, has a zero tolerance
policy for child or forced labour. The other material is zirconium oxychloride, for which we have several
suppliers from China, so we consider that there is a risk here. We have not taken action in this area
with these suppliers in the past, but we will include this area in the future as part of the process of
familiarisation and endorsement of our Code of Ethics and Conduct on the part of suppliers.

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Customer relations
We aim to maintain long-term relationships with existing customers, and to attract new customers
mainly by developing higher value-added products based on higher product quality combined with the
right mix of speed, flexibility and price. We will continue to focus our sales mainly on European
markets. Our customers are mainly companies (B2B).
Research and development activities are key to achieving our strategic objectives, maintaining our
position and reputation in global markets, and finding new business opportunities, through which we
develop new products and solutions in line with customer requirements and expectations.
High value-added products
In the titanium dioxide business, our core programme, we are focusing on winning new customers
from the plastics and printing ink sectors. Higher customer sophistication allows us to achieve higher
profitability in the long term and indirectly acts as a hedge against possible new entrants into the
European market with lower quality products.
In other programmes, we are also focusing our development on new products with high added value
and on vertically integrated products that offer technical, revenue and cost synergies and best exploit
the competitive advantages of the business environments of the individual product programmes.
Development of biopolymer-based masterbatches
Due to the negative impacts caused by synthetic polymers embedded in products (unstable global
fossil hydrocarbon reserves and pollution caused by such plastic materials), we have taken a
sustainable and more environmentally friendly approach to their replacement. We have developed a
white PBAT-based masterbatch that can be produced by incorporating up to 75% titanium dioxide
pigment. In addition to the biopolymer properties, white masterbatches also have the property of
biodegradability, which is why we have obtained a biodegradability certificate for the 75% filled
masterbatch. We are in the process of obtaining the Bio-compostable Soil certificate. This type of
masterbatch has great potential for installation in the packaging industry, as more and more customers
are switching to biodegradable materials.
Powder varnish with enhanced outgassing capability
A powder varnish with enhanced outgassing capability has been developed for the niche market of
customers who powder coat hot-dip galvanised surfaces. Its specific formula allows the release of
gases which form in the hot-dip galvanised layer at elevated temperatures before crosslinking of the
powder-coated layer occurs. As a result, no anomalies such as bubbles or tiny bumps are present on
the coated surface. It is estimated that this product could account for 25% of our sales of conventional
polyester grades of powder varnishes.
Matte smooth powder varnish quality with Qualicoat Class 1.5 requirements
The Qualicoat Class 1.5 range of façade powder varnishes was further expanded in 2022 with the
development and certification of a matte smooth version. This means that Qualicoat Class 1.5 is now
certified for Category 1 for gloss smooth and (fine and coarse) textured varnishes and Category 3 for
matte smooth powder varnishes. The sales potential is in areas where high weather or light fastness
of the coated products is required (e.g. façade elements).
Application of chemically resistant thin-film dispersions suitable for explosion hazardous areas
With the aim of finding materials on the market in the group of thin-film dispersions resistant to
chemical influences and suitable for explosion hazardous areas, we have been working to find a
suitable material, PFA MJ-610, and put it into production. With the successful implementation of the
coating in production, we have managed to cover a segment of chemical protection that was currently
not covered by our existing coatings. We estimate that it could account for 10% of sales in the

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fluoroplastics product range. A thin-film coating with good chemical resistance and suitability for
installation in explosion hazardous areas is particularly suited for the protection of components for
customers who require a very tight tolerance range for the protective coating.
Labelling
We pay particular attention to the classification and labelling of our products to ensure their health
and safety. We regularly monitor current legislation and any changes related to labelling. When there
is a change in classification and labelling, we align safety data sheets with them, revise safe working
instructions and inform customers of the change. We publish safety data sheets, technical data sheets
and other information on our website, which is accessible to everyone (customers and other interested
parties), further enabling access to information about our products for their safe and healthy use. Our
sales professionals are also informed of any changes and provide technical information and advice to
customers on the use of the products. We place great emphasis on the feedback from our customers
in the field and have not yet received any comments about negative impacts from the use of our
products.
All our products are properly labelled in accordance with current legislation. The label on the packaging
must be visible and the information on the label legible. Products labelled in this way provide the
customer with all the information they need to work safely and healthily. In 2021, a regulation also
introduced the inclusion of a unique formula identifier (UFI) on the label for hazardous mixtures to
enable poison control centres to act quickly and efficiently in the event of poisoning. We also pay
attention and care to packaging waste and unused products – to ensure that they are properly sorted,
properly labelled and handed over to authorised collectors.
There have been no non-compliances with the labelling of our products by customers or inspectors.
We have also had no incidents related to marketing communication. In the event that a non-
conformity is identified internally, it is quickly rectified.
Certificates of product conformity
We follow market trends and requirements in the production of copper-based products for the
protection of plants against diseases and pests, complementing other preventive and cultural
measures in agriculture, respecting the principles of good agricultural practice.
Humovit EKO is certified (003/2022) by the Institute of Organic Agriculture as suitable for use in organic
production.
The number of customer complaints, claims and comments is regularly monitored and responded to
with corrective action. In 2022, there were 8 complaints, 5 of which were unjustified, which were
resolved to ensure customer satisfaction. The complaints related mainly to shipping errors and a
smaller proportion to quality. A major increase in complaints was observed in 2019. This was due to
damage to the packaging during transport, which was successfully resolved with corrective action.

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Chart: Number and financial value of complaints in 2016-2022
Customer satisfaction survey
Every two years, we conduct an online survey on customer satisfaction. Seven sales programmes
were included in the survey, which was carried out in 2022. The survey was sent to 243 email
addresses, with a response rate of just over 50%, which we consider a success.
The survey showed a similar level of satisfaction as in previous years. Average customer ratings in 2022,
on a satisfaction scale of 1-5:
• 4.1 for satisfaction with the products/offer: the highest score (4.4) was given to "Delivery times
meet our expectations" and the lowest (3.9) to "Value for money is adequate";
• 4.4 for satisfaction with the professionalism of the sales staff: the highest score (4.7) was given
to "As individuals they are tidy and well organised", the lowest (4.1) to "Product presentations
are helpful";
• 4.5 for satisfaction with sales operations, sales promotion, consultancy, warehousing and
logistics: the highest score (4.6) was given to "If they make promises, they keep them", while
the lowest score (4.4) was given to a number of answers on complaints and dispatch of goods.
The words that customers used to describe their view of Cinkarna Celje d.d. were professionalism,
reliability, quality, punctuality and trust. The majority of the respondents, 76%, did not perceive any
problems in their cooperation or did not mention them, while a few had a comment on the price (9%)
and on the delivery and sales conditions (6%).
The suggestions for improvement from the customers' side mainly concern the extension of the
product range, the improvement of delivery conditions and product quality, and keeping abreast of
market conditions, especially in terms of price comparability with competitors.
The results of the survey and detailed analysis by product programme provide sales managers with a
more objective assessment of customer satisfaction (CSI – Customer Satisfaction Index) and
improvement actions. The customer questionnaire is also modified or updated as necessary.

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Relations with the local community
We are part of the wider and immediate local environment, in which we are actively involved and
support its development in sports, culture and other areas. We also invest in projects to preserve and
enhance the natural environment in which we operate. We promote social and environmental
responsibility and creativity.
Sponsorships and donations
Each year, we sponsor major basketball, football and handball clubs, and make donations to support
fire brigades, the parish office, music schools, gymnasiums and other organisations.
In the past, we have contributed EUR 40,000 to the purchase of a defibrillator at Celje General Hospital
and have also contributed to various infrastructure projects, such as the construction of the Bukovžlak
pavement.
In 2022, as the general sponsor of the Kladivar Celje Athletics Association, we made it possible to
purchase new athletics equipment, such as cushions and measuring devices for the pole vault. The
new equipment was officially handed over for use during the Christmas Meeting of the Kladivar Celje
Athletics School in December 2022. The equipment will provide better training conditions for the
club members.
Sponsorships and donations are made to organisations that share our values, including:
− Sports associations and clubs: we are the general sponsor of the Celje Women's Basketball
Club and the Kladivar Athletics Club, we financially support the Celje Pivovarna Laško Handball
Club, the Gorenje Velenje Handball Club, the Celje Football Club, the Celje Basketball Club, the
Šentjur Basketball Club, and the Celje Hockey Club;
− Art, cultural institutions and associations: SLG Celje, the Institute for Cultural Events and other
cultural and artistic associations;
− Educational, training and charitable organisations and associations: voluntary fire brigades,
schools, etc.
Table: Share of sponsorships and donations by area
Sponsorship and donations
Share of funds
Sports
95%
Culture
3%
Other
2%
Table: Financial commitments for sponsorships and donations in 2018-2022
2018
2019
2020
2021
2022
Donations and
sponsorships (in EUR)
735,116
739,164
688,053
637,131
755,725
Over the last five years, we have provided around EUR 3.5 million in sponsorships and donations to
sports clubs, associations, educational institutions and local communities. We will continue this policy
of supporting the local environment in the future, given the appropriate growth and necessary
development of the Company.
Assistance to vulnerable groups
Traditionally, in the pre-Christmas period, at the initiative of our kitchen, we participate in the food
collection campaign of the SIBAHE (Slovenian Food Bank) association, where we collect a larger
amount of food for people in need. In the central dining room of our Company, we offer the Sonček
Association for Cerebral Palsy a place to sell their handmade gifts.

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Cooperation with schools
We are proud of our multi-year project of intensive cooperation with primary and secondary schools,
whose main objectives are to stimulate children's creativity in making and thinking, and to promote
awareness of the wider societal importance of industrial production and development. Fourteen
successive competitions have been held so far, and a fifteenth is under way.
Each year, the competition highlights a different theme related to our Company's products and our
care for the environment. We invite all primary and secondary schools in the region where we have
production to participate. Among the topics and areas we have addressed in the competition are the
animals found at our waste disposal facilities. As part of this, we have donated a teaching beehive to
one of the schools, from which they produce enough honey to use for their own snacks, make various
products and even enough honey to take home, thus raising awareness of environmental responsibility
among their parents, grandparents and neighbours. In competitions, young people painted flower
pots, made benches out of scrap wooden pallets, reflected on the steps towards sustainability that the
Company has taken over 150 years, refurbished scrap chairs, sowed honey plants, thought about
protecting water resources, etc. At the end of each competition, we organise a closing ceremony to
award prizes to the best ideas. The location of the ceremony and the prizes are also chosen in a
meaningful way according to the content, making sure that local stakeholders are involved and
informed about the competitions and the young people's creative ideas.
On average, up to 35 schools in the region respond to the competition, which means up to 1,400 young
people taking part.
We open the door to students for their compulsory practical training and visits to production
processes, waste disposal plants, water measurement (chemical technician programme, construction
technician programme), and respond to the local needs of educational institutions, with whom we
collaborate on project days, research assignments, presentations on professions, etc.
Local CFA Research Challenge
In November 2022, Cinkarna Celje d.d. was selected as a case study for the CFA Research Challenge,
which provides students with practical knowledge in the field of business valuation from the
perspective of financial analysis and professional ethics. Filip Koželnik, a member of the Management
Board, presented Cinkarna Celje d.d. to the students and their mentors. The presentation was followed
by questions from the students and mentors, with whom representatives of Cinkarna also participated
throughout the competition process. The result of the collaboration is a detailed report and a model
for the evaluation of Cinkarna Celje d.d., which the students developed with the help of their mentors
from the faculty and industry. The competition involved teams from the Faculty of Economics at the
University of Ljubljana, the Faculty of Economics and Business at the University of Maribor and the Ss.
Cyril and Methodius University of Skopje.
The team of the Faculty of Economics of the University of Ljubljana consisted of students Ana Šenk,
Gjorgji Gjorshevski and Viktor Kukunesh, and was advised by Prof. Dr. Igor Lončarski from the Faculty
of Economics and a practical advisor, Matija Filiplič, CFA. The management members of Cinkarna Celje,
Aleš Skok and Filip Koželnik, helped the students with valuable feedback after the local competition.
The winning team advanced to further competition at the level of the Southern Europe sub-region.
Open Door Day
We organise an Open Door Day for external visitors. Due to coronavirus restrictions, we had a break
of a few years, but in 2022 we organised it again and opened the doors of our production units in Celje
and Mozirje to all interested parties. More than 600 people attended and visited the stands where
employees from each of the Company's units presented sustainable solutions in each process (waste
separation, water reuse, solar panels, etc.). Visitors were taken by bus on a tour of the production site
and the Bukovžlak and Za Travnikom sites, where they could also see how gypsum filling is carried out.

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In total, about half of the visitors took part in the guided tour through the production and to the landfill
site. The reaction of visitors and the media to the event was positive.
The Open Door Day was also attended by representatives of ŽKK Cinkarna Celje, NK Celje, RK Celje
Pivovarna Laško, Celje Hockey Club, Kladivar Celje Athletic Association and many others.
With the Open Door Day, we want to show visitors our products and their use in everyday life in as
practical a way as possible, while at the same time strengthening relations with the local environment.
Volunteering among employees
Volunteering is encouraged, valued and supported among our employees. Professional and volunteer
firefighters employed by the Company can respond to a call for help in the local area at any time, with
the full support of Cinkarna Celje. Our employees also took part in the fire intervention in the Kras
region in 2022.
In the past, we have also organised a blood donation campaign among our employees, which we plan
to organise again next year. Volunteering among employees is also encouraged through various
activities throughout the year, such as the annual end-of-year food collection for the SIBAHE food
bank, the purchase of items for donation from the Sonček Association of Cerebral Palsy Associations
of Slovenia, and other activities that we carry out when the need arises.
Communicating with the public
We communicate regularly and transparently with the public through various communication
channels, such as our website, social networks, press conferences, direct contact via emails and phone
calls, etc.
Events and other relevant information are communicated by invitations and press releases to the
Municipality of Celje and surrounding municipalities, local and national media, and other relevant
stakeholders in the local environment, depending on the topic and purpose of the message.
We also reach out and inform the local public through social media:
− Facebook: 49.2% of male followers and 50.8% of female followers. The highest proportion of
men is between 25 and 34 years old, the highest proportion of women is between 35 and 44
years old. Approximately half of all followers are located in Celje and a post reaches an average
of 5,000 people.
− Instagram: 56.5% men (28.6% aged 25-34) and 43.4% women (31.3% aged 35-44) follow our
profile. 39.2% of followers are from Celje.
We use social media to communicate with internal and external audiences in a civil manner. Our posts
explain the importance of the chemicals industry, and provide updates on renewable investments and
sustainable solutions. We encourage followers to submit comments and feedback. In the last two
years, we have recorded fewer than ten negative comments.
Short film series
To make the local community and wider society aware of the importance of our products, we produced
a series of short films in 2021, which present our individual products in a simple way, where they are
present in everyday life and how they affect us. Each product is introduced with an interview with one
of the famous Celje athletes we support. They were all happy to let us into their home and look for an
item containing our product. Celje basketball players were excited to discover that masterbatches are
also "hidden" in the basketball, Celje footballers discovered the importance of titanium dioxide in
jerseys, Celje handball players found parts of the stands coated with powder varnishes, and Celje
athletes enthusiastically talked about how, although it is difficult to maintain the flowers in their
apartments because of their preparations, they love all home-grown fruit and vegetables when their
parents take care of them.

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By the end of 2022, the videos on our YouTube channel and on Facebook and Instagram had a total of
around 12,000 views. You can watch the videos on our YouTube channel @cinkarnacelje.
Celje Firefighters' Association competition in Cinkarna
In June 2022, the Celje Firefighters' Association organised a memorial competition in the area of
Cinkarna Celje, which takes place every four years. The two-day event included the Celje Firefighters'
Association Youth Competition and the Celje Regional Youth Cup Competition on the first day, and the
Celje Firefighters' Association Members' Competition on the second day. We have already provided
the venue for this type of competition at Cinkarna Celje twice before, in 2009 and 2017.
Receiving and resolving complaints from the public
We have a system in place to receive and resolve complaints. Complaints are received via the email
address of our PR or Environmental Protection department. All messages received are forwarded to
the relevant authorities. We coordinate our decisions on individual complaints and the preparation of
responses to them with the various responsible parties in the Company (depending on the content of
the complaint), such as management, the Legal Department, the Environmental Protection
Department or specific business units.
We receive up to three complaints or petitions a year via our public relations email address, mainly
related to the resolution of a specific issue related to the living environment of the petitioner or
complainant, land owned by the Company, etc.
In 2022, we received two complaints from the public about the Celje production site, one about black
smoke, which, after checking the operation of the treatment and other facilities, did not come from
Cinkarna Celje. The second complaint was about brown spots on a car that had been parked for several
days in the car park of the Mercator Hudinja shopping centre. It was found to have no connection with
the Company, as no sewage treatment plant outages or other irregularities were recorded at the time.
We also regularly monitor comments and messages on social media. We see 2-3 cases of negative
comments per year, but not specific complaints. We never block social media messages or delete
comments.
At Kemija Mozirje, we had one noise complaint in 2022. A silencer was installed at the outlet of the
ACM10/ACM 25 mills, thus eliminating the cause of the complaint.
Table: Public complaints in the environment in 2018-2022
Year
Public complaints by area
Odour
Dust
Noise
Other
Total
2018
1
0
0
0
1
2019
1
0
1
0
2
2020
0
1
1
0
2
2021
1
0
1
0
2
2022
0
0
1 (Kemija Mozirje)
2
3

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ENVIRONMENTAL ASPECT
Cinkarna Celje d.d., as part of the chemical processing industry, is aware of its role in the transition to
a green economy, and is part of a value chain that already plays an important role in raw materials for
low-carbon, energy-efficient and long-lasting products, and may play an even greater role in the future.
Our activities have multiple environmental impacts, which we manage holistically within our own
Company and, increasingly, along the value chain. We strategically manage raw materials, energy, air
emissions, water, soil and biodiversity, all in light of responsible environmental management, a green
and low-carbon economy.
Our approach to the environment
Our environmental policy is part of the Integrated Management System Rules of Procedure, so that
elements of the environmental management system are interwoven with all business processes in the
Company. From the outset, we have been part of the Responsible Care Programme, the chemical
industry's global initiative to improve health, safety and environmental management. It is a voluntary
commitment that demonstrates our dedication to these areas, which often goes beyond just
regulatory requirements. We regularly monitor and measure our environmental impact and put in
place measures to reduce our own impact. Our approach also aims to influence our supply chain and
the wider social environment through the integration of environmental criteria in the evaluation and
selection of suppliers, and through various education and awareness-raising projects.
We improve our technological processes by investing in the best available technologies, thus
minimising our impact on the environment. We integrate renewable energy sources and implement
energy efficiency measures. We integrate tools and approaches for integrated energy management
into our technological and business processes. In the development of existing and new products, we
look for environmentally friendly solutions and opportunities for the beneficial use of by-products. We
reduce water and energy consumption, greenhouse gas emissions, and develop a process to recycle
waste water as much as possible. We follow a five-step waste management scale, where we aim to
make the best use of materials, minimising waste and separating, recovering and reusing waste
appropriately. We look for reuse potentials of secondary raw materials in our technological processes
or other applications that can be sold on the market.
As part of our environmental policy, we are also addressing our commitment to climate change
mitigation and adaptation, and the conservation of biodiversity in ecosystems. We demonstrate
responsible environmental and climate stewardship by:
− Complying with environmental legislation;
− Identifying the hazards and risks of environmental impacts;
− Managing risks and implementing actions to prevent potential environmental damage;
− Planning and implementing activities to mitigate risks and responding and communicating
quickly in emergency situations to prevent environmental pollution;
− Monitoring the life cycle of products;
− Calculating our carbon footprint at organisational and product levels;
− Contributing to climate change mitigation through various activities.
In 2023, we will develop our strategic commitments in the area of climate change, which are based on
environmental business compliance, comprehensive identification and management of environmental
impacts, risk management, implementation of activities to prevent environmental damage, and
effective management and communication in emergency situations to prevent pollution of the
environment.

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Quality assurance, environmental, health and safety policy
The policy is based on a vision for growth and the achievement of the Company's key strategic
objectives, which are in line with the principles of sustainable development and aimed at achieving
satisfaction of owners, employees, business partners and the environment in which we operate. The
management system is designed to continuously improve the efficiency and effectiveness of the
Company's operations, identifying opportunities and risks, taking into account the needs and
requirements of all relevant stakeholders, ensuring adequate resources and compliance with
legislative requirements. In doing so, we adhere to the fundamental principles of responsible
management of employees and the environment. Through the implementation of the established
management system and personal example, managers and executives motivate and involve all
employees in contributing to improvements. The adequacy, sufficiency, effectiveness and ongoing
implementation of the management system are regularly verified through internal audits and
management reviews.
The policy defines basic principles and objectives in the areas of quality assurance, environmental
management, safety and health, which relate to customer satisfaction of our products and services,
selection of suppliers, consideration of the needs of relevant stakeholders such as employees, owners,
the social community and others, qualified and motivated staff, ensuring the health and safety of our
employees, responsible environmental management, energy management, ensuring the control and
measurement of our products, services and processes, as well as planned development and continuous
improvement in order to achieve the set objectives.
The full policy is available on our website at: https://www.cinkarna.si/en/sustainability.
Major accident prevention and reduction policy
We also handle hazardous substances in our operations, so we establish and maintain a high level of
major accident prevention and mitigation in our processes as part of our safety management system.
This commitment is reflected in the policies we implement with the support of management and the
participation of all employees. The policy defines the activities we undertake to ensure safe operations,
risk mitigation, adequate preparedness for major accidents, and public information. Incidents are also
monitored, but there have been no significant spills or major accidents in the last five years.
The full policy is available on our website at: https://www.cinkarna.si/en/sustainability.
Environmental communication, issues and complaints
We regularly communicate our plans and achievements to all our stakeholders through various forms
of communication. Comments and complaints on environmental impacts are accepted at
varstvo.okolja@cinkarna.si, which is published on the Company's website
https://www.cinkarna.si/en/sustainability.
The Environmental Protection Department is responsible for receiving, registering and responding to
questions or complaints from the civil public about environmental impacts. A register of questions and
complaints received from the public is kept. Complaints are reported to the Management Board and
are also addressed at the annual management review. The details of the accident and emergency
notification system and the system for recording public issues and complaints are set out in OP 183 -
Emergency Management and Safety and Response System. Communication with the external public is
the responsibility of the Management Board.
Objectives and measures
Each year, the Company's management defines the main environmental policy objectives that we
pursue in a particular year and on the basis of which we plan and implement actions. In 2022, we
therefore focused on the following areas:

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− Taking action to address environmental risks;
− Sustainable development and circular economy;
− Maintaining or ensuring regulatory compliance.
Compliance and standards
We comply with legal requirements and environmental permits. Environmental and other risks are
managed through an established ISO 9001 quality system, ISO 14001 environmental management
system and ISO 45001 occupational health and safety system, and at the Kemija Mozirje site we are
registered in the EMAS environmental management and audit scheme, which is designed to assess and
improve the environmental performance of organisations and to inform the public about its impact.
Over the last five years and more, we have not been fined or sanctioned for non-compliance with
environmental legislation and regulations.
Environmental monitoring
We regularly monitor wastewater, surface water, groundwater, soil, air emissions, noise sources,
waste assessment, tank tightness and other required environmental monitoring. We are authorised to
carry out environmental monitoring of wastewater (No 35435-19/2021-4) and accredited for sampling
and testing (LP-050 Cinkarna Celje d.d.).
In 2022, the accreditation of the Quality Department's and the Environmental Protection Department's
laboratories to ISO 17025 in the field of wastewater sampling and testing was reconfirmed with a
successful external audit.
Responsible Care Programme
We are members of the Responsible Care Programme® (RCP) group of the Chemical Industries
Association. Each year we meet all our obligations, as evidenced by our Responsible Care Report. This
demonstrates our voluntary commitment to continuous improvement in environmental, health and
safety performance. We have been participating in the programme since the initiative's inception in
1998.
Environmental due diligence
We are very conscious of our environmental responsibility in the environment in which we operate,
which is why we carried out an environmental due diligence as early as 2013, when the risk of old
burdens in the current production area was identified. We continued our investigations in this area in
2015-2019 with an external contractor, CDM Smith. The data will be taken into account in the
preparation of the Baseline Report in accordance with the Environmental Protection Act 2 (ZVO-2).
Ecovadis sustainability rating
For 2021, we were awarded the Ecovadis Sustainability Rating Silver Medal, for which sustainable
purchasing is assessed alongside environmental protection, protection of human rights and employee
health and ethics. The rating for 2022 will be available at the end of April 2023.
HACCP system management
In 2004, we introduced the HACCP system in the food preparation unit, which was completely
overhauled in 2017 in cooperation with the National Laboratory for Health, Environment and Food
(NLZOH). The system is rigorously implemented to reduce the risk of contamination and is continuously
being improved. Supervision and advice is provided by the NLZOH, which carries out two inspections
per year in the central kitchen and one inspection per year in the Marketing and Maintenance
distribution units. No non-compliances were detected during the inspections in 2022. To ensure the
successful implementation of the HACCP system, we organise bi-annual training for our employees in
cooperation with NLZOH.

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Raw materials management
Ensuring the availability of high-quality raw materials is of strategic importance for our smooth
operation on the market and for the production of our products. When selecting new or alternative
raw materials, we take into account not only the suitability (functionality) factor, but also the
environmental, safety and health impact of the raw material, which is verified during the development
phase. We take into account constraints to ensure biodiversity and the preservation of ecosystems by
minimising environmental impacts. We are selective in the raw materials we use. We have
discontinued the use of certain raw materials which, according to new analyses and research, no longer
meet the criteria, we have replaced certain raw materials with less or non-hazardous ones and we
have reduced the proportions of certain raw materials in our products.
We ensure compliance with REACH and GHS regulations for the classification and labelling of
hazardous chemicals. All raw materials and products classified as hazardous chemicals are registered
with the Chemicals Office, where we send annual records of their movements. For other hazardous
and non-hazardous chemicals, we have safety data sheets in accordance with the requirements of the
legislation. We regularly monitor the published SVHC list, i.e. the list of substances of very high concern
subject to authorisation, on the ECHA (European Chemical Agency) website.
Our business model is to produce as much of the highest quality product as possible in the most
efficient way, while minimising our impact on the environment and climate. Unprofitable activities are
being phased out. We look for innovative and sustainable solutions to reuse raw materials and thus
reduce waste. Two examples are CEGIPS and RCGIPS, and we are developing new products. The
photocatalytic properties of our ultrafine TiO
2
, when incorporated into various end-use applications,
contribute to reducing indoor and outdoor pollution, in water and air, break down harmful volatile
organic compounds (VOCs) and other pollutants, provide a self-cleaning effect, prevent algae and
mould growth, and act as an antiviral and antibacterial agent, thus improving the quality of life and
environmental conditions.
We are also expanding the range and quantity of copper-based plant protection products, also suitable
for organic farming, various types of masters and powder varnishes, as well as processing fluorinated
polymers and elastomers.
Use of raw materials
By using raw materials to make our products, we impact the environment through the use of natural
resources by the producers of each raw material. We are conscious of their efficient use and carefully
manage our processes to minimise waste. We strive to maximise the efficiency of the raw materials
we use, thus demonstrating a rational attitude towards natural resources and generating fewer by-
products or waste.
In terms of invoice value, we analysed the 50 most used raw materials across all business units in 2022,
which together account for 86% of the purchase invoice value. Our main materials used in the
production process are titanium-bearing ores, sulphur, limestone flour, lime, polymer materials,
copper and zinc. In addition to the raw materials used for production, we also use as non-renewable
materials the various materials needed for packaging our products.
Within the group analysed, wood pallets and paper bags can be identified as renewable materials,
representing 1% of the value analysed.
At Kemija Mozirje, we use a variety of raw materials to supply individual technological processes,
which are divided into binders, pigments, fillers and additives. The binders are mainly various resins

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(mainly polyester and epoxy) and polymer carriers (polyethylene, polystyrene, polypropylene, ABS,
EVA, EMA, etc.). The majority of pigments are titanium dioxide, which is produced by the parent
company in Celje (from the Company's point of view, this is a semi-finished product). We also use a
range of other pigments, both inorganic and organic, all of which are free of heavy metals. The fillers
are mainly calcium carbonate and barium sulphate. We also use various additives that determine the
properties of the products, such as rheological additives, degassing additives, matting agents, waxes,
etc.
Since 2018, when we stopped producing coatings and thinners, we do not incorporate solvents into
our products. They are used only in small quantities for cleaning production equipment in both
production programmes and are listed under the group related process materials. Most binders,
additives, pigments and fillers are solid and, in terms of quantity, are mostly non-hazardous chemicals.
Hazardous chemicals include used cleaning solvents which are in a liquid state.
Titanium-bearing ores
The use of raw materials depends entirely on production quantities and recipes. For pigment
production, the key raw materials are titanium-bearing ores, where deposits are limited and we source
them from more distant countries. Due to longer transport routes, we operate on the principle of
larger orders 2-3 times a year, within the limits of our warehouse capacity. We use only rail transport
to transport ore from the port of Koper to our site in Celje. Sulphur is also an important raw material
and can be used in liquid or granulated form. By ensuring sufficient quantities of liquid sulphur, we can
reduce the need for granulated sulphur, which is otherwise supplied in larger quantities by ship from
Mediterranean countries. For other raw materials and packaging for all programmes, we prioritise
closer suppliers, so the transport route is one of the factors in the choice of supplier. The technologists
of each area, together with the purchasing department, regularly examine alternatives that could have
a positive impact on the environment.
Sulphuric acid
The production of titanium dioxide in the process of decomposition or smelting of titanium-bearing
ores (ilmenite and slag) requires sulphuric acid, which is prepared by pure sulphur combustion
technology. Most of the sulphuric acid produced is consumed in the production of TiO
2
, in the process
of decomposition of titanium-bearing ores, which is the primary use of the sulphuric acid produced.
Surplus quantities are sold on the market, mainly to the chemical and pharmaceutical industries.
Other raw materials
In the production of powder varnishes and masterbatches, we do not follow trends in the consumption
of individual groups of raw materials, as the proportions of individual raw materials can vary
considerably from year to year, depending on the range of finished products (in particular, the
production of masterbatches has a major impact on this). In order to evaluate the efficient use of raw
materials, we look at the yield, which is the ratio between the output of products and the consumption
of raw materials.
Packaging materials
We use paper and cardboard, plastic, wood, metal and composite packaging.
We use paper and cardboard packaging made from recycled materials, including octabins, cardboard
leaflets, cardboard and paper labels. For tertiary packaging purposes, we use wooden pallets for
transport.
Plastic packaging includes polythene bags, film and labels, polypropylene bags (big bags), strapping,
ties, plastic bottles, plastic buckets, etc. Some plastic packaging is made from recycled plastics.
We keep records of all the packaging we put on the market, separated by material and by volume. We
are part of a packaging scheme, which regulates the handling of packaging that is placed on the market
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Table: Consumption of packaging materials by packaging type in 2018-2022, in tonnes
Year
Type of packaging in tonnes
Total
Paper
Plastic
Wooden
Metal
Composite
2018
296.46
423.34
2,017.18
43.29
60.31
2,840.58
2019
268.98
455.53
2,210.34
35.41
57.00
3,027.26
2020
223.37
466.85
2,078.62
42.62
44.43
2,855.89
2021
195.37
455.15
1,782.64
21.35
13.50
2,468.01
2022
151.23
393.57
1,616.71
6.49
21.54
2,189.54
The consumption of packaging materials is largely linked to the volume of sales. Over the years, the
amount of packaging used has been decreasing, mainly due to the discontinuation of certain
production programmes, which in turn reduces packaging consumption. However, packaging reuse
measures are also being implemented, in particular of wooden pallets and big bag sacks, which is
reflected in the consumption of wooden and plastic packaging.
Recycled input materials
We do not buy recycled input materials in large quantities, mainly scrap copper, iron and zinc. We have
a licence to process nine types of waste, according to the following processes:
− R04 – Recycling/recovery of metals and their compounds;
− R05 – Recycling/recovery of other inorganic materials;
− D13 – Merging or mixing prior to any of the operations indicated by D1 (disposal in or on land,
e.g. landfilling) to D12 (permanent storage, e.g. emplacement of containers in a mine).
Processed waste replaces virgin raw materials (non-ferrous metal scrap, scrap iron, including one
hazardous waste) in the production of plant protection products, secondary zinc and titanium dioxide
(see table Recycled input materials used). All of these materials come to us in bulk or without
packaging.
In 2022, BU Kemija Mozirje processed two tonnes of polymethylmethacrylate (PMMA) recyclate at the
request of a customer who supplied the recyclate to be incorporated into a product purchased from
us.
The amount of recycled input materials used depends on the volume of production, the availability
and the price of other raw materials that may affect the use of recycled materials.
Table: Recycled input materials used in 2018–2022, in kilograms
Raw material consumption (kg)
2018
2019
2020
2021
2022
For processing under R4
228,935
386,079
269,112
294,891
179,683
For processing under R5
1,015,419
1,311,456
1,204,164
953,440
1,476,238
Total
1,244,354
1,697,535
1,473,276
1,248,331
1,655,921
R04 – Recycling/recovery of metals and their compounds
R05 – Recycling/recovery of other inorganic materials
At BU Kemija Mozirje, we occasionally add finished products to our input materials which, for various
reasons, we cannot place on the market, such as:
− Products that have been held for a long time without stock movement and sales are not
expected;
− Products that are packaged in different packaging than the buyer wants;
− Non-conforming products incorporated in small proportions into conventional products after
a preliminary test.

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Reused materials
In addition to rational use of raw materials, technical and organisational measures to prevent or reduce
waste, we also aim to reduce waste through internal or external waste recycling and reuse of waste
and materials.
We reuse certain materials in our production process, namely a certain proportion of wooden pallets
and packaging, and we also return to the production process technological waste that would otherwise
end up as waste. We also try to reuse as much as possible of the waste generated during construction
work, or to recover and reuse it on construction sites.
Table: Reused wooden pallets in relation to total wooden pallets purchased in 2020-2022
2020
2021
2022
Purchase of pallets (pcs)
60,692
60,138
57,036
Reused pallets (pcs)
100
906
2,010
Share of used pallets
0.16 %
1.51 %
3.52 %
Note: Reused pallets do not include pallets returned from customers.
The production of powder varnishes generates filter powder at the mills, most of which is treated as
process rejects, some of which is also disposed of as waste. Most of it is incorporated in the production
of existing products:
− As a filter powder (i.e. in powder form), which is added by weight at the same product quality;
− As chips: the filter powder collected is pre-extruded by shade (white, yellow, red, blue, etc.)
and crushed into chips on a cooling belt. After preliminary testing, it is incorporated as one of
the input materials in the individual grades of powder varnishes.
We do not monitor the amount of embedded technological discard on a programme-by-programme
basis. However, according to separate records, in the powder coatings programme, 69,469 kg of filter
powder were incorporated into our existing products in 2022.
Masterbatch production is subject to technological waste during line starts and stops. The rejects take
the form of cakes, spaghetti and granules of irregular sizes and shapes. All rejects are collected by
shade (white, blue, red, yellow, etc.), ground or granulated and returned as one of the input materials
in the production of existing products.
The Z6 filter produces a powdery process reject, which is a mixture of pigment and filler. It is
incorporated in the production of white "CC master off-grade", together with the process reject of
white masterbatches.
We also optimise the use of packaging materials by reusing them in our processes. Paper and
cardboard packaging (folders) are used instead of cardboard cut-offs, which are placed on the pallet
before the finished product is stacked on it. The used octabins are used for packaging new product or
for collecting process rejects from masterbatches.
Polypropylene bags, which include all big bags, are reused for packaging or collecting process rejects,
either at powder mills or in the production of masterbatches.
At BU Metalurgija, we carefully plan and manage the reuse of both production and packaging
materials. In the production of zinc products, various technological rejects occur that do not meet
customer requirements, or are simply rejects at the beginning or end of the process. There is also the
possibility of contamination by unwanted elements, which make the product itself exceed the values
defined in the standards and thus unfit for sale. All such rejects are recovered in a controlled manner

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and used in the manufacturing process. When zinc is smelted, zinc oxides are formed on the surface,
which must be carefully removed before the casting process, as they would otherwise constitute
unwanted inclusions in the final product. These can cause cracking and breakage of the material at the
end customer, so the removal of zinc oxides is particularly important. The reuse of these skimmings is
carried out in a special rotary furnace where, by means of higher temperature, rotating contact and in
the absence of oxygen, most of the bound zinc is removed. The process yields a recovery of
approximately 90% and the resulting melt is used as secondary zinc in the production of alloys.
Similarly, with packaging materials, we work with individual customers to find and implement circular
solutions. At BU Metalurgija, we provide a remelting service for extrusions. This is a high-volume reject,
so we have worked with the customer to purchase special bins that are rotated continuously. This
avoids significant costs and facilitates easier handling. Once the remelting is complete, the product is
transported on specially designed pallets of the appropriate dimensions, which also circulate, replacing
only the pallets that are completely destroyed. Pallets that can be repaired are restored accordingly.
Packaging is also rotated in the production of endless zinc wire in cooperation with one of our
customers, who regularly takes at least six tonnes or more per month.
BU Polimeri is also committed to reusing materials. We carefully separate waste materials from metal
machining and polytetrafluoroethylene (PTFE) materials. We sell this separately collected waste for
recycling. An important part of the reused materials is our good practice of refurbishing valves and
piping components, which we have extended from our internal service to external customers. It is a
kind of repair service of damaged elements. First we assess the condition of the element by inspection,
then we reuse the undamaged parts and replace the others with new components. The value of the
service is 65-80% of the price of a new product.
By-product production
RCGIPS red gypsum
RCGIPS is our trademark, a by-product of the production of titanium dioxide. It is the neutral product
of neutralising the residual sulphuric acid from TiO
2
production with limestone flour and lime milk. It
is reddish-brown in colour, coarse-grained, partially bondable and of a moist character. In addition to
gypsum (CaSO
4
× 2H
2
O), it contains iron oxides, titanium dioxide and traces of silica and magnesium
hydroxides.
RCGIPS can be treated in a similar way to natural soils of excavation category 2-3. This product has
better strength properties, embankments can be formed at stable slopes of 1:2 to 1:1.5, and its
surfaces can be driven on by trucks or other vehicles. The layers of compacted, packed titanium
gypsum have low to very low permeability to water. Compacted titanium gypsum is an excellent
alternative to natural soils for the following uses: backfilling in low-rise construction, especially for
controlled backfilling of old wet landfills (Za Travnikom accumulation), for flood and noise barriers,
capping layers on landfills, and for structural embankments up to 5 m high which are not subject to
dynamic (traffic) loads. The material is suitable if its moisture content does not exceed 35%
(geotechnical moisture content). All the material produced since 2008 is used for the dry fill of the Za
Travnikom waste disposal plant. In 2022, 190,400 tonnes of RCGIPS were produced.
CEGIPS white gypsum
CEGIPS is our trademark white to slightly brownish powder with a moisture content of 6-12%, which is
purified by a suitable separation technique to above 95% calcium sulphate dihydrate, known as
gypsum. Gypsum is a neutral inorganic salt with an average particle size between 80 and 100 microns.
According to the Regulation in force, the levels of hazardous substances are below the annual soil
intake limits. In industry, it can be used directly in the cement industry as an alternative to natural
gypsum or gypsum produced from the desulphurisation of flue gases from thermal power plants (REA-
gypsum, FGD-gypsum), and indirectly by further calcination in the production of gypsum building

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products (gypsum plasters, self-levelling floor screeds). In cement works, it is used as an additive to
cement to prevent mortar from setting too quickly or falsely at a rate of 3-5%. CEGIPS has been
successfully marketed since 2006. 167,200 tonnes of CEGIPS were produced in 2022.
Waste management
We follow a five-step waste management scale, where we aim first and foremost to manage materials
efficiently, minimising the amount of discarded materials that can be returned to the production
process or reused, and handing over the rest to authorised waste collectors and processors for
treatment or disposal. We are looking for innovative solutions to efficiently use gypsum and other
waste materials as a raw material with new added value for our own needs and to offer it on the
market.
At both the Celje and Mozirje sites, we are implementing measures or pursuing waste management
improvement targets to reduce specific waste volumes. We operate according to a source separation
system. For certain wastes, we have a recovery permit, which allows us to reuse them in our
production processes, replacing a certain proportion of natural resources with recovered materials.
Gypsum represents the largest proportion of the waste disposed, but it has a special disposal status as
it is used for dry filling.
The Company also generates hazardous waste. All hazardous waste is handed over to authorised waste
collectors. The waste is either sent for treatment (following one of the R3-R13 processes) or disposal
(D1-D13).
Table: Production waste generated per unit of product in 2018-2022
2018
2019
2020
2021
2022
Specific waste quantity (kg/EU)
0.0037
0.0042
0.0037
0.0039
0.0039
EU = equivalent unit per unit of product

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Table: Production waste generated at the Celje and Mozirje sites in 2018-2022, in tonnes
Celje site
Type of waste (tonnes)
2018
2019
2020
2021
2022
Non-hazardous waste – R
367.07
342.02
396.33
364.27
378.29
Non-hazardous waste – D*
153,026.50
182,125.00
171,106.98
176,108.50
176,589.00
Hazardous waste – R
19.88
11.34
6.27
9.40
7.38
Hazardous waste – D
25.56
123.38
86.45
19.41
36.75
Total
153,439.01
182,601.74
171,596.03
176,501.58
177,011.42
Mozirje site
Type of waste (tonnes)
2018
2019
2020
2021
2022
Hazardous waste
2,512
29.54
1.73
2,533
1,628
Non-hazardous waste
70,868
71,241
72,595
46,840
45,628
Total
73.38
100,781
74,325
49,373
47,256
Celje and Mozirje together
153,439.01
182,702.52
171,670.36
176,550.95
177,058.68
R – waste for recovery
D – waste for disposal
* The waste tonnage also includes red gypsum, which is dry-filled at the Za Travnikom waste disposal
facility.
In 2022, the Company sent 9,323 kg of organic waste (food preparation waste and food waste) for
treatment, slightly more than in 2021 (8,548 kg). The slight increase is due to the higher quantity of
hot snacks prepared for employees. All of this was converted into renewable energy, saving a
calculated 839 kg of CO
2
.
In the area of waste management, five improvements were made in 2022 to find solutions to reduce
or reuse waste. The specific amount of waste from production was the same in 2022 compared to
2021. There is an upward trend in the amount of waste going to recovery and a slight downward trend
in the amount of waste going to landfill. However, there are fluctuations between years. The higher
waste in 2022 is due to a slight increase in production or also due to the success of the recovery and
sale of white gypsum as a by-product. The more white gypsum is extracted and sold, the less red
gypsum is produced and dry-filled.
We also pursued an objective related to the implementation of measures to extend the availability of
waste disposal facilities, with the aim of removing larger quantities of CEGIPS, selling it and thus
reducing the burden on the Za Travnikom waste disposal facility. The amount of CEGIPS recovered in
2022 was slightly higher (2.86 t/t TiO
2
) than in the previous year, by 3.1%. The amount of RCGIPS dry-
filled was also slightly higher (2.9 t/t TiO
2
) than in 2021, by 0.3 per cent.

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Energy management
Active energy management in our business and production processes ensures compliance with
European guidelines and the ISO 50001 – Energy Management Systems standard, which we follow at
Cinkarna Celje d.d. This approach optimises energy use while reducing energy costs, increasing the
Company's competitiveness and introducing investments for the transition to a low-carbon society.
Since 2006, we have been systematically implementing energy efficiency measures by investing in the
best available technologies, implementing a number of organisational measures, systematically
replacing outdated metering and energy supply equipment, rehabilitating pipelines (steam, water) and
replacing and installing efficient electrical and electronic equipment. We are also involved in the
greenhouse gas (TGP) trading scheme. We carry out targeted monitoring of energy use (CSRE) using
target lines based on standard energy consumption (energy consumption vs. production). We have
carried out a comprehensive energy audit of the Company, which is the basis for further steps in energy
management. The selected external contractor carried out a review of the situation and a set of
possible measures which, depending on the impact, were included in the 2022 plan. These measures
include:
− Organisational measures to save and use energy efficiently;
− Replacing old electric motors with energy-efficient IE3 motors
− Renewal of lighting - replacement with LEDs;
− Compensation of reactive energy;
− Installation of frequency regulators;
− Installation of solar power plants: three 1.5 MWp solar power plants were built in 2022, with
an annual production of 1,650 MWh.
The results of the measures are monitored, but not evaluated according to recognised methods for
monitoring the effectiveness of the measures. More than 90 energy efficiency measures have been
implemented between 2005 and 2022, and here are some of the ones with the biggest savings:
− Installation of a compressed air pressure vessel;
− Installation of a steam accumulator;
− Installation of steam exchangers in the pre-drying process
− Modernisation of the Siemag pre-roll line pos. 04.01 in the rolling mill;
− Optimum use of heat sources from sulphuric acid – phase one;
− Replacement of lamps for external lighting at Cinkarna Celje in accordance with the regulation
on limit values for light pollution – UREE1 tender;
− Utilisation of condensate heat sources – TiO
2
thermal substation;
− Construction of thermal insulated façades on marketing and operational maintenance
buildings;
− Renovation of obsolete interior lighting – replacement with LEDs, etc.
Table: Investments and savings in 2018-2022
2018
2019
2020
2021
2022
Investment value in EUR
2,780,848
4,560,390
192,061
50,215
108,252
Total annual
savings
EUR
111,630
103,339
235,591
16,274
35,945
MWh
1,652.6
774.6
1,493.72
166.00
275.9

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Energy consumption
Cinkarna Celje d.d. is an energy-intensive company because the energy intensity percentage (EIP) of
the Company is more than 3% (according to Article 96(2) of ZTro-1). The energy intensity is calculated
as the quotient between the annual cost of purchasing energy products and electricity in EUR and the
production value in EUR, or with the AOP codes from the income statement as a percentage of EIP =
(AOP 132/ AOP 126) × 100.
In 2022, EIP's share in the Company was 7.18%. This means that the annual cost of energy and
electricity procurement was 7.18% of the total production value. The cost of energy purchases includes
natural gas, electricity and fuel for vehicles (trucks and cars).
Since 2006, we have been systematically implementing measures to use energy efficiently and reduce
energy consumption. The implementation of energy efficiency measures is based on a plan of
indicative targets set each year by the Company's management. The four most important areas in
which we regularly optimise energy use in the Company are waste heat recovery, compressed air
production and consumption, frequency control of electric motor drives, and the replacement of
lighting with LED lighting.
Production is optimised through new technological approaches, the planned replacement of obsolete
metering and energy supply equipment, the planned rehabilitation of pipelines (steam, water), and
the replacement and installation of efficient electrical and electronic equipment.
We use gas, electricity, steam and, from 2022, solar energy from our own solar power plant as energy
sources in our business and production processes.
Chart: Share of energy consumed by source in 2022
The largest energy consumer is titanium dioxide production, where the savings are also the largest.
Energy consumption is highly dependent on production volumes and various disturbances in the
production process. Nevertheless, the specific energy consumption for TiO
2
production is decreasing
(see chart Specific energy consumption for titanium dioxide production in 2005-2022). This is
significantly influenced by the implementation of energy efficiency and conservation measures.

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Table: Energy consumption in 2018-2022, in kWh
Type of energy
(in kWh)
2018
2019
2020
2021
2022
Steam
142,390,400
132,593,600
183,349,600
190,456,800
193,180,000
Electricity
93,537,365
100,327,039
101,350,402
98,480,843
97,470,677
Natural gas
126,043,993
137,129,268
145,776,927
144,443,478
135,988,503
Compressed air
9,919,187
11,030,267
12,040,832
11,232,542
15,950,618
Solar energy
0
0
0
0
1,189,055
Total:
371,890,945
381,080,174
442,517,761
444,613,663
443,778,853
Table: Specific energy consumption for production per equivalent unit (EE) in 2018-2022, in MWh/EE
Specific energy
consumption
(MWh/EE)
2018
2019
2020
2021
2022
Index
2022/2021
Electricity
0.0023
0.0023
0.0022
0.0022
0.0021
95 %
Natural gas
0.0027
0.0026
0.0027
0.0032
0.0030
94 %
Renewables
(steam, solar)
0.0032
0.0043
0.0042
0.0043
0.0042
98 %
Compressed air
0.00024
0.00026
0.00026
0.00025
0.00035
140 %
Total
0.00844
0.00946
0.00936
0.00995
0.00965
97 %

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Chart: Specific energy consumption for titanium dioxide production in 2005-2022
Chart: Specific energy consumption for production per equivalent unit (EE) in 2018-2022
Specific energy consumption (electricity, natural gas, steam, solar) for the production per equivalent
unit (EE) is slightly increasing from 2018, with a slight decrease in 2022, mainly due to the systematic
implementation of energy efficiency measures.

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Chart: Specific electricity consumption for production per equivalent unit (EE) in 2018-2022
Chart: Specific natural gas consumption for production per equivalent unit (EE) in 2018-2022
Specific consumption of natural gas shows a positive trend in 2018-2022. This is because until 2021 we
billed natural gas internally according to the lower heating value, and from 2021 onwards we started
to bill natural gas monthly at the upper heating value. The change due to a different calculation has
worsened the energy efficiency, which is why the specific consumption for 2021 is also higher than the
previous three years. In 2022, a decrease in specific consumption is already observed.
In 2022, the energy efficiency measures did not include any sulphuric acid production outage, which
means that only 1% of the total natural gas purchased was used in Energetika's boiler house in 2022.
In 2021, consumption was 8%. Waste steam from sulphuric acid production is also used in other
production processes, and during outages in sulphuric acid production, this steam must be replaced
by natural gas consumption in Energetika's boiler house.

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Chart: Specific consumption of renewables for production per equivalent unit (EE) in 2018-2022
In 2022, we started to use electricity from solar power plants alongside steam. This is a multi-year
project, which is described in more detail in the section Investing in renewable energy.
Investing in renewable energy
We have been demonstrating our commitment to rational and efficient use of energy for decades, and
in 2021, in line with the guidelines of the Slovenian Development Strategy 2030 and EU directives, the
Company's Management Board decided to start implementing our commitment to increase the use of
renewable energy sources by building solar power plants, thereby reducing the share of fossil energy
consumption.
In 2022, we invested in the construction of two solar power plants with a total capacity of 1.5 MWp
and 1.65 MWh, respectively. This is the first phase of the solar power plants planned in the project,
with completion scheduled for the end of 2027. The total amount of electricity generated is expected
to represent just over 1.5% of our annual electricity consumption, with a reduction of around 800
tonnes of CO₂ emitted to the atmosphere per year.
The project includes the second and third phases of the construction of solar power plants with a total
installed capacity of 4.2 MWp and 4.62 MWh, respectively. At the same time, we are preparing a
project to build a solar power plant in the parking area at the main entrance of the Company. By the
end of 2023, we will have increased our share of electricity self-supply to about 5.7 percent in terms
of installed capacity and about 8.5 per cent in terms of MWh of energy produced.
We will continue to build solar power plants on available roofs up to the 9 MWp envisaged, but this
will require renovation of the roof surfaces, either in terms of replacing the roofing or improving the
structural soundness of the structure itself. At the same time, we are preparing documentation and
gathering information for construction in degraded areas. We see an opportunity at the Bukovžlak
non-hazardous waste landfill site after the rehabilitation is completed. Positive approvals would allow
the construction of a large-scale solar power plant. The size of the site allows for up to 6 MWp or 6.6
MWh, but the final installed capacity depends on a number of factors, starting with the possibility of
connecting to the existing electricity grid. In this way, a degraded area, which is not suitable for other
activities, could be beneficially used for the generation of electricity from RES.

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Building solar power plants on the roofs of our buildings is our long-term business interest. We plan to
operate the solar power plants on a grid basis, with our own electricity production being used for self-
supply, depending on the needs of the Company.
The main objectives and reasons for building solar power plants are:
− Own electricity production;
− Long-term cost reduction and increase of the Company's competitiveness;
− Increasing the share of RES in the Company's energy consumption;
− reduction of CO₂ emissions.
Project: Heat balance of titanium dioxide production
The project to prepare mass and energy balances for the production process of sulphuric acid and
titanium dioxide pigment was completed. The aim of the project was to inventory the mass flows in
the production process, to which an energy balance was applied. This allowed us to verify the energy
potential of the flows, which allows us to reduce and optimise the energy use by process. Mathematical
models were also developed for the most energy-consuming processes.
This led to a set of possible energy solutions and improvements:
− Reduction of gas consumption in the pre-drying process;
− Reduction of gas consumption in the calcination process;
− Reduction of gas consumption in the pigment drying process 2;
− Possibility to recover heat losses from the calcination flue gases;
− Possibility of using waste heat generated in the H
2
SO
4
production process.
Investing for decarbonisation
As part of our strategic planning for decarbonisation, we are investing in projects to increase energy
efficiency and the use of renewable energy. Some investments are already underway, others are in
preparation or undergoing feasibility studies.
Table: Investments in progress
Investment
Estimated value of
investment in EUR
(excluding VAT and
subsidy)
Estimated annual
energy savings in
MWh
Investment status
Renewable energy sources
Installing a solar power plant on the
buildings of Polimeri and Valjarna
886,000
1,650
Implemented
Solar power plant installation: area of
Kemija Celje, Graphics, Dining Hall,
Hall A
1,352,000
2,310
Ongoing, expected
implementation in
2023
Installation of solar power plants: part
of the Marketing, Transport,
Multipurpose, Energy, Chemistry,
Mozirje and Maintenance buildings -
Hall B
1,090,227
2,310
Contract in the
process of being
concluded, foreseen
implementation in
2023
Solar power installations: parking
spaces in front of the main entrance
and the Marketing building, grassy
area behind the Alloy Hall
2,200,000
1,320
Verification of
effectiveness, if
positive, foreseen
implementation in
2024
Installation of a solar power plant at
the Bukovžlak non-hazardous waste
Approx. 6,500,000
5,500–6,600
Verification of
effectiveness, in case

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Investment
Estimated value of
investment in EUR
(excluding VAT and
subsidy)
Estimated annual
energy savings in
MWh
Investment status
landfill (ONOB) – the possibility of
construction is being verified due to
the constraints of the degraded
environment, the spatial planning act,
the ordinance on post-war graves, the
possibility of connection to the grid.
of a positive outcome,
implementation by
2030
Installation of battery E
3,900,000
No energy
savings, financial
savings
Phase 1 in 2024,
Phase 2 by 2030
Co-generation of electricity and steam
14,000,000
16,728
By 2025
Efficient use of energy
Replacing old electric motors with
energy-efficient IE3 motors
852,500
3,135
Gradually by 2030
Replacement of two old transformers
in TP 7-10, neutralisation
99,272
52
By 2024
Rehabilitation of obsolete lighting –
replacement with LED
440,000
864
Gradually by 2030
Replacing compressors with energy-
efficient ones
1,985,000
1,766
Gradually by 2030
Optimisation of an existing steam
pipeline
83,352
9,486
In 2023
Replacement of the heat exchanger on
the IKT2 acid
586,558
Operational
safety
In 2023
Emissions to air
In the long term, the management of air emissions is one of the central aspects of the environmental
management of Cinkarna Celje d.d., for which we have already made a number of significant
investments and will continue to be one of the priority environmental areas. At the same time, we are
following the European Union's commitments and guidelines for reducing GHG emissions and
transitioning to a low-carbon society. An important step towards managing GHG emissions and the
transition to a low-carbon economy is the calculation of the organisational carbon footprint of
Cinkarna Celje d.d., which will enable us to make measurable business decisions towards
decarbonisation in a strategic manner in the future.
The Company's carbon footprint
We have calculated the Company's carbon footprint for 2021 under GHG Protocol Scopes 1 and 2. The
Company's carbon footprint report serves as a basis for decision-making and making important
business decisions going forward, to reduce climate risks and increase opportunities related to climate
change, and to optimise our own operations in terms of reducing operating costs.
The carbon footprint has been developed based on the guidelines, recommendations and principles
defined in the EN ISO 14064-1:2019 standard for calculating carbon footprints at the organisational
level, and the GHG Protocol. The reference year for the data collected and taken into account in the
calculation of the carbon footprint is 2021. The tools used for the calculation of GHG emissions,
including the development of the methodology, are consistent with those developed by the
Intergovernmental Panel on Climate Change (IPCC) at the national level. The basic calculation of the
carbon footprint of Cinkarna Celje d.d. includes direct emissions and emissions from leased electricity.

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The standard emission factors of the Jožef Stefan Institute and the IPCC (April 2022) were used for the
CO
2
calculations.
We calculated the carbon footprint for Scopes 1 and 2. Scope 1 includes direct emissions from
stationary and mobile sources of GHG emissions, Scope 2 includes leased electricity (location-based
method).
The calculations show that Scope 1 GHG emissions amount to 6,586.67 Mt of CO
2
eq. and Scope 2
emissions amount to 33,045.36 Mt of CO
2
eq. Scope 2 contributes 83% to the total carbon footprint of
Cinkarna Celje d.d., while Scope 1 contributes only 17%.
Table: Carbon footprint by Scopes 1 and 2 in 2021
Scope
Type of activity
Year
Uncertainty
analysis
2021
Mt of CO
2
eq.
Scope 1
Stationary sources (stationary combustion)
6,109.23
Good
Mobile sources (mobile combustion)
477.44
Good
Scope 1 – total
6,586.67
/
Scope 2
Purchased electricity (all three sites of Cinkarna Celje)
33,004.70
Good
Electricity losses at the Celje site due to losses in the
network and distribution facilities
40.66
Good
Scope 2 – Total (location method)
33,045.36
/
Biogenic carbon
Mt of C
Scope 1
1,778.40
Scope 2
8,922.25
Mt = metric tonne
C = carbon
In 2023, we will also produce a GHG emissions report under the GHG Protocol for our 2005 baseline
year, when we started the continuous implementation of energy efficiency activities, which will give
us an insight into progress to date and a starting point for the preparation of a sustainability strategy,
decarbonisation commitments, policy updates and the integration of sustainability into all key levels
of our operations.
Carbon footprint of the carrier product
At Cinkarna Celje d.d., the carbon footprint of the titanium dioxide carrier product was calculated four
times at the level of the TDMA (Titanium Dioxide Manufacturers Association). The data for 2021 are in
the process of verification and are expected to be available at the end of March 2023. The association
provides an average carbon footprint value for all companies that are part of the association and
produce titanium dioxide. As agreed at the association level, we publish the average carbon footprint
of titanium dioxide publicly, which is also published on the TDMA website. For calculations from 2016
onwards, the upgraded method of determining the Life Cycle Inventory (LCI), expressed as the Product
Environmental Footprint (PEF), is used.

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Table: Average carbon footprint of titanium dioxide at TDMA level
Year
TDMA average (t of CO
2
eq./t of TiO
2
)
2010
5.2
2012
5.3
2016
4.9
2021
Under verification, expected at the end of March 2023
Data shows that the industry's carbon footprint has been declining over the years, driven by increased
investment and action in energy efficiency, as well as by improving technological solutions and
digitalisation.
Monitoring emissions to air
At the Celje site, we monitor air emissions at 38 outlets in accordance with a monitoring programme
carried out by authorised external organisations. The parameters monitored are SOx, H
2
S, NOx, CO,
total dust, sum of Group II substances Pb, Co, Ni, Se, Te, sum of Group III substances Sb, Cr, CN, F, Cu,
Mn, V, Sn and total organic carbon (TOC). Technological measurements are also carried out from time
to time.
Total annual dust emissions from all sources, including diffuse sources, decreased by 6% in 2022
compared to 2021. Total dust concentrations are well below the permissible limit value at all outlets.
The total dust emission from the production of pigmented titanium dioxide (the largest source),
expressed as an annual average per tonne of TiO
2
produced (specific quantity), was 0.21 kg/t, which is
lower than the previous year (0.23 kg/t TiO
2
) and does not exceed 0.45 kg/t TiO
2
as set in the limit
value of the Environmental Permit (OVD).
We also monitor fugitive dust emissions from leaks in production equipment and facilities, bulk
handling of raw materials, emissions from trucks and industrial vehicles, open warehouses, etc. In
2022, they were estimated at 149.3 kg, which represents a percentage of total emissions.
The total annual amount of sulphur oxides (expressed as SO
2
) from all sources in 2022 was 118,700 kg,
an increase of 13.5% compared to the previous year. Concentrations, mass flow limits and emission
quantities were not exceeded. The sum of the sulphur oxides emissions, expressed as an annual
average, from the decomposition and dissolution emission sources (Z8, Z9 and Z62) and the calcination
source (Z12) also did not exceed the OVD limit value of 6 kg/t TiO
2
. The increase in total emissions is
due to slightly higher SO
2
emissions at the sulphuric acid production and TiO
2
production outfalls due
to increased production and other factors affecting emissions.
The sum of the H
2
S emissions, expressed as an annual average, from the decomposition and dissolution
emission sources (Z8, Z9 and Z62) also does not exceed 0.05 kg/t TiO
2
, which is the limit value set in
the OVD permit.
Other parameters (NOx, CO, Pb and Ni) in total dust are also monitored. Again, the measured mass
fluxes do not exceed the prescribed limits in the OVD permit.

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Table: Emissions of substances to air at the Celje site in 2018-2022, in kg
Emission type (kg)
2018
2019
2020
2021
2022
Sulphur dioxide (SO
2
)
140,800
149,500
117,700
102,500
118,700
Nitrogen oxides (NO
x
)
13,900
10,300
16,700
18,800
12,690
Dust
11,460
12,250
12,640
13,970
13,120
Total emissions
166,158
175,050
147,040
135,270
144,510
Table: Emissions of substances to air by equivalent unit at the Celje site in 2018-2022
Emission type (kg/EE)
2018
2019
2020
2021
2022
Index
2022/
2021
Sulphur dioxide (SO
2
)
0.0034
0.0035
0.0026
0.0023
0.0026
113.04 %
Nitrogen oxides (NO
x
)
0.0003
0.0002
0.0004
0.0004
0.0003
75.00 %
Dust
0.00028
0.00028
0.00028
0.00031
0.00029
93.55 %
Total emissions
0.00398
0.00398
0.00328
0.00301
0.00319
105.98 %
EE = production in equivalent units
At the Mozirje site, air emissions are monitored at 11 outlets by an authorised external organisation.
The parameters monitored are total dust and volatile organic compounds (TOC). Annual emissions are
low and far below the limit values. Compared to 2018, the estimated value of TOC emitted in kg of
C/year in 2019 has increased by a factor of 6.79. The increase is due to emissions at measurement site
Z4, which represent the TOC emitted from the coloured masterbatch lines, which was not yet present
in 2018, as masterbatch production at the new site was established in 2019.
Then, compared to 2020, the estimated value of TOC emitted in kg of C/year in 2021 was reduced by
52.96%, or the emissions were 63.30% lower in quantity (g/h) after monitoring. Again, this is a
reduction in emissions at outlet Z4.
In 2022, emissions at individual outlets in g/h were the same or lower per outlet than in 2021. Due to
fewer operating hours than in 2021, the absolute quantities emitted in 2022 were lower than in 2021.
However, as the quantity of products produced in 2022 was 10.91% lower than in the previous year,
the quantities emitted in kg/tonne of product increased.
Table: Emissions to air at the Mozirje site in 2018-2022, in kg
Emission type (kg)
2018
2019
2020
2021
2022
Dust emitted
62.1
35.6
37.7
144.7
138.6
TOC emitted
178.5
1,212.4
1,364.4
641.8
596.8
Total substances emitted
240.6
1,248.0
1,402.1
786.5
735.4
Table: Emissions of substances into the air per tonne of product at the Mozirje site in 2018-2022
Emission type (kg/t of
product)
2018
2019
2020
2021
2022
Index
2022/
2021
Dust emitted
0.0128
0.0060
0.0060
0.0221
0.0238
107.69 %
TOC emitted
0.0367
0.2038
0.2163
0.0981
0.1024
104.38 %
Total substances emitted
0.0495
0.2097
0.2222
0.1203
0.1262
104.90 %

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Project: Modernisation of the calcination plant
The Company is striving for cleaner production, increased operational safety and reliability of the
waste water treatment plants, which is why we have invested in an additional (fourth) electrostatic
precipitator – a waste water treatment plant for cleaning flue gases produced during the calcination
of titanium dioxide gel. Three electrostatic precipitators are used in the existing production and will
have to be gradually renewed. The additional electrostatic precipitator will increase the operational
safety of the waste gas treatment system and allow for the rehabilitation of the three existing
electrostatic precipitators. In 2022, we installed flow meters on all four electrostatic precipitators,
which allow us to distribute the gases from the two furnaces more evenly to the four filters, thereby
increasing the efficiency of the treatment.
Project: Sulphur smelting treatment plant
At Cinkarna Celje, sulphuric acid is produced by burning liquid sulphur. The first source is refinery
sulphur, which is supplied to the company in liquid form, and the second source is solid sulphur, which
must be liquefied in a solid sulphur smelting sub-process before combustion. The smelting of sulphur
releases gases as a by-product that need to be cleaned up before they can be released into the
atmosphere, which is why in 2018 we started a project to install a sulphur smelting treatment plant.
First, we chose the appropriate technology to treat the waste gas produced, followed by a long period
of obtaining all the necessary permits for the installation of the plant and the facility in which it is
located. The existing environmental permit had to be amended and, due to the size of the plant and
the building, a building permit had to be obtained. Construction and installation of the equipment
started in June 2020 and the plant was successfully commissioned following a technical inspection in
April 2021.
The newly installed treatment plant purifies the gases released during the transition of sulphur from a
solid to a liquid aggregate in two stages – in the first, the gas from the sulphur melting is washed with
water to cool it down, while removing any dust particles that may be present. The main cleaning effect
occurs in the second stage, where the gases present are absorbed in an alkaline solution and the
cleaned gas leaves the plant through the stack and exits to the atmosphere. By cleaning the gas, the
emissions from the sulphur smelting process are further reduced, and levels below the required limit
value are achieved.
The system is fully automated. In the design and implementation of the project, we have combined
Italian technology with our own expertise in electrical engineering, mechanical engineering and
technology.

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Water management
Water is a precious commodity, so we manage it carefully throughout the whole cycle, from
abstraction at source to the return of treated wastewater to nature.
For technological purposes, the production processes use surface water drawn from the nearby
Hudinja watercourse and groundwater from three springs at the Za Travnikom waste disposal plant.
The quantity of water pumped from the Hudinja river is regularly monitored using appropriate meters
in accordance with ISO 9001, and the quantity of drinking water pumped is read using meters
calibrated in accordance with the MID standard (Rules on Measuring Instruments, Official Journal of
the Republic of Slovenia 19/16, Water Meters (MI-001)). We hold the relevant water permits for the
use of process water.
Drinking water from the public water supply network is used for sanitary purposes and partly for
technological processes.
Table: Water consumption by source in 2018-2022
Za Travnikom
spring (m
3
)
River water
(Hudinja) (m
3
)
Drinking water
(m
3
)
Total water
consumption (m
3
)
2018
55,966
2,459,814
62,324
2,578,104
2019
44,339
2,668,720
39,908
2,752,967
2020
38,795
2,899,335
35,253
2,973,383
2021
43,573
3,023,581
35,957
3,103,110
2022
38,110
2,737,182
64,964
2,840,256
Table: Water consumption per equivalent unit by source in 2018-2022
Za Travnikom
spring (m
3
/EE)
River water
(Hudinja) (m
3
/EE)
Drinking water
(m
3
/EE)
Total water
consumption (m
3
/EE)
2018
0.0014
0.0594
0.0015
0.0623
2019
0.0010
0.0618
0.0009
0.0637
2020
0.0008
0.0634
0.0008
0.0650
2021
0.0010
0.0667
0.0008
0.0685
2022
0.0008
0.0601
0.0014
0.0623
EE = production in equivalent units
We manage projects and investments to increase recycling rates of process water. We are reducing
the use of drinking water for technological purposes, as shown by the downward trend in use until
2022. In 2022, the share of drinking water used for technological purposes increased and the use of
technological water from the Hudinja river decreased proportionally, due to hydrological conditions
which did not allow for abstraction from the river at certain times (prolonged dry period) and we were
forced to use an alternative. A project is underway to provide alternative water supplies to replace the
use of fresh water from the river or the use of drinking water.
Caring for water sources
Most of the process water is collected in the Hudinja river, which is a right tributary of the Voglajna
river. The Hudinja rises on the western forested slope of Kraguljišče hill in the central Pohorje region.
The surface of the catchment area is 207 km
2
and the long-term average flow of the Hudinja at the
Šmarjeta water gauging station is 2.94 m
3
/s.
The groundwater source in the Za Travnikom area is derived from three sandstone springs and is fed
from the hillside in the Blavše area to the west and south-west of the intake. The source area of the
springs ranges from 0.75 to 1.00 km
2
and the average annual flows vary between 0.7 and 4 l/s
(respectively 0.0007 m
3
/s and 0.004 m
3
/s).

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The upper Hudinja with its tributaries up to Vitanje is classified as a nature conservation site of local
importance, while the Socka gorge is a nature conservation site of national importance. The Hudinja
Waterfall on the Hudinja in the Socka gorge is also recorded as a nature conservation site of local
importance. The lower part of the watercourse is regulated and is not specifically identified as a nature
conservation value in the area of water abstraction by Cinkarna Celje d.d. The clear waters of the upper
Hudinja and tributaries above Vitanje are inhabited by the native brown trout (Salmo trutta) and,
downstream of Vitanje, by the rainbow trout (Oncorhynchus mykiss). The slower-flowing water in the
middle and lower reaches is inhabited by the common nase.
The groundwater source at Za Travnikom is not in a protected area and there are no special protected
species in its area.
Integrated Water Management project
At Cinkarna Celje d.d., we are aware of the value of the natural water resources from which we draw
water for our technological processes, which is why we have been implementing the Integrated Water
Management (IWM) project for several years. Its main purpose is to:
− Reduce fresh water consumption in titanium dioxide production or reduce the amount of
water abstracted from the Hudinja river;
− Introduce internal water recycling, thereby reducing specific consumption per tonne of
product;
− Verify the feasibility of reusing wastewater from the Celje Central Wastewater Treatment Plant
as a source of process water;
− Reduce sulphate emissions to wastewater and consequently to the Dobje, Vzhodna Ložnica
and Hudinja watercourses.
As part of the project activities, two measures were implemented to reduce water consumption. By
recycling wastewater – clear neutralised water (BNVT) or overflow after sedimentation (CWW BREF
3.3.2.3.3.3.4), we reduced the consumption of fresh water from the Hudinja River in the titanium
dioxide production process in 2022. The total amount of water recycled and reused is just over 11% of
the total amount of water used for titanium dioxide production.
Wastewater management
The Celje site generates wastewater and cooling water as part of the production processes. The waste
water is treated at the Company's own waste water treatment plants and is suitable for discharge into
watercourses after treatment. Where possible, procedures are implemented to recover and reuse
water in the processes. Municipal wastewater is treated at the Celje Central Wastewater Treatment
Plant (Tremerje). Most cooling systems are closed, so there are no discharges. Rainwater is discharged
separately into the watercourse, either indirectly (treated in oil traps and grit chambers) or directly.
Ten wastewater discharges are monitored in accordance with the environmental permit. Based on the
monitoring, no exceeding concentrations of substances in wastewater were detected in 2022.
Concentrations of Cu (copper), COD (chemical oxygen demand) and to some small extent AOX
(organically bound halogens), Ni (nickel) and total P (phosphorus) contribute to the effluent loading
units. The other measured parameters are below the limit of quantification or so low that they do not
contribute to the load units (Cr
6+
, Pb, Hg). The quantities discharged to wastewater fluctuate slightly
over the years. These are small variations due to changes in input raw materials, additives and
production volumes.

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Table: Emission of substances into wastewater in 2018-2022
Parameter (ton)
2018
2019
2020
2021
2022
Chemical oxygen demand (COD)
161.6
132.4
188.4
114.3
137.9
Heavy metals (Cu)
0.09
0.06
0.04
0.04
0.03
Heavy metals (Zn)
0.21
0.13
0.12
0.09
0.15
Table: Sulphate emissions from titanium dioxide production and unit load in 2018-2022
Emission type
2018
2019
2020
2021
2022
EO
N
3,171.0
2,541.1
3,640.3
2,149.9
2,828.7
SO
4
2-
(kg/t TiO
2
)
168.5
164.8
162.1
155.7
165.4
EO
N
= load units
SO
4
2-
= sulphate concentration per TiO
2
product unit
The emission of sulphate from titanium dioxide production was 7% higher in 2022 than in 2021, but
still far below the limit value (the limit value is 550 kg/t of TiO
2
according to the OVD or TiO
2
regulation).
There has also been an increase in unit loads (by 24%) due to a slightly higher concentration of chemical
oxygen demand in the waters. The fluctuation is also largely due to the impact of rainwater on the
large catchment areas of the Za Travnikom and Bukovžlak waste disposal plants and the solubility of
the filled gypsum that comes into contact with the water and then flows out with the overflow waters
from these facilities.
The Mozirje site generates wastewater and sewage as part of its production processes. The waste
water is treated at its own waste water treatment plants (IČN1 and IČN2) and is suitable for discharge
into a watercourse after treatment. Where possible, water recovery and reuse processes are
implemented in the process. Sewage is treated at three small sewage treatment plants (MKČN), each
with its own outfall (MKČN1-V3, MKČN2-V4 and MKČN3-V5). Thus, there are four discharges to water
and measurements are made at five outfalls. For the MKČNs, JP Komunala Mozirje produced an
Operational Assessment of small sewage treatment plants. The concentrations of substances in the
wastewater are low or below the limit of determination. The number of load units is minimal (1.14 EO)
and has decreased by 0.16 EO in 2022 compared to the previous year.
We carry out the operational monitoring at this site ourselves, as we are duly authorised by the
Ministry of the Environment and Spatial Planning in accordance with the requirements of the
legislation, and we are accredited according to SIS EN 17025, which allows us to demonstrate and
guarantee the quality, accuracy and independence of the monitoring and reporting.
Impact of wastewater on the natural environment
At the Celje site, wastewater is discharged into three streams: Dobje, Vzhodna Ložnica and Hudinja.
Part of Vzodna Ložnica and Dobje are included in the Natura 2000 area. The basin of Vzodna Ložnica
has a total area of 43 km
2
and forms part of the northern boundary of the habitat. The other part of
the habitat is its largest, left tributary, Dobje. Vzhodna Ložnica is part of the Hudinja river basin and,
more broadly, part of the Savinja river basin, and covers a distance of 14.3 km. The part of the
watercourse belonging to the Volčeke Natura 2000 site is 1.6 km long. The Vzhodna Ložnica river basin
is geographically located in eastern Slovenia and lies in the north-eastern part of the Savinja river basin.
The Dobje watercourse, which is 6.3 km long, is the largest tributary of Vzhoda Ložnica. The part of the
watercourse belonging to the Volčeke Natura 2000 site is 1.35 km long. It originates in Marija Dobje
and on its way down into the valley collects water from unnamed tributaries originating in the hills to
the south of Razgor and Marija Dobje on the one hand and the Voglajna Hills on the other. Its largest
tributary is an unnamed watercourse with the local name Proseniški Brook, which lies 1.93 km long in
the Volčeke Natura 2000 site. Part of the watercourses Vzhodna Ložnica and Dobje are regulated along
their entire length, as is Proseniški Brook in some sections within the project area. Two target species

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are important in the area – the common mussel (Unio crassus) and the brook lamprey (Eudontomyzon
spp.).
Cinkarna Celje d.d. carries out operational monitoring upstream and downstream of discharges 12
times a year on all watercourses where wastewater is discharged. Parameters are set to determine the
chemical and ecological status of the waters, and fish are sampled and analysed once a year (two-year-
old chub are caught for analysis of the parameter Hg and its compounds). Based on the monitoring,
we conclude that there are no negative impacts on natural habitats.
Biodiversity
Cinkarna Celje d.d., at the Celje site, where the Company's headquarters are also located, is situated
on the south-eastern edge of the Celje basin, along the Celje-Šentjur regional road in the north-eastern
part of Slovenia. The production plant (metallurgical and chemical plant) is located in a flat area of the
valley in the town of Celje, where the altitude ranges between 238 metres and 240 metres above sea
level. To the south of the plant, the terrain rises to an altitude of approximately 450 metres and forms
the northern slopes of the Posavje hills. To the east lie the Teharje hills, on which are the smaller
settlements of Za Travnikom and Bukovžlak. The site is bounded in the north by the Vzhodna Ložnica
river and in the west by the Hudinja river. The Voglajna river, into which the Hudinja flows, flows
slightly to the south. It is an industrial area with no protected areas. However, the Voglajna river from
the Tratna barrier to its confluence with the Savinja is a Natura 2000 site, for the river mussel (Unio
crassus) and the fish species asp (Aspius aspius), souffia (Leuciscus souffia), bitterling (Rhodeus amarus)
and golden loach (Sabanejewia aurata).
The Bukovžlak plant for the disposal of waste from TiO
2
production and the Za Travnikom plant for the
disposal of liquid waste from TiO
2
production are located at the foot of the Teharje hills, on the south-
eastern edge of the Celje basin, along the Celje-Teharje-Proseniško regional road in the north-eastern
part of Slovenia, and are approximately 600 metres apart. They are approximately 5.5 km from the
town of Celje. The hills on which the two installations are located extend in an east-west direction. The
hills are bounded to the north by the valley of the Ložnica river and to the south by the Voglajna river.
The disposal facilities for waste from TiO
2
production Bukovžlak and Za Travnikom are part of a wider
disposal area, which also includes the Železarna Štore landfill, the Bukovžlak municipal waste landfill
and the Bukovžlak solid waste landfill. The Bukovžlak TiO
2
waste disposal facility is located in direct
contact with the Bukovžlak solid waste area, which is also managed by Cinkarna Celje d.d., and in close
proximity to the Bukovžlak municipal landfill, which is located on its eastern side.
To the south of the plant is the Volčeke wetland, which has the status of a nature conservation area of
national importance and is a Natura 2000 site. The area is a special oasis of wet meadows, where the
purple moor-grass, one of the most endangered habitat types in Slovenia, grows. It is also home to
many species of butterflies.
The Cinkarna Celje d.d. site in Mozirje is located in the town of Ljubija in the Municipality of Mozirje.
The stream of the same name (Ljubija) flows into the Savinja river nearby. Mozirje is located in a basin
surrounded by the Alpine foothills - the Golte mountains in the north and the high karst plateaus of
Menina and Dobrovlje in the south. To the west is the Alpine world of the eastern part of the Kamnik-
Savinja Alps.
Aware of the importance of preserving protected areas, we take all necessary measures to prevent
pollution and regularly monitor our impact. Several times a year, we carry out operational monitoring
of groundwater chemistry at the Celje site and at the Bukovžlak and Za Travnikom waste disposal
facilities. Groundwater levels are continuously monitored using groundwater level monitors. In

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November 2022, we also produced a Soil Contamination Assessment and a report on the review of
technical measures to prevent soil and groundwater contamination.
We also ensure that invasive non-native species are eradicated and prevented from spreading in our
areas, thereby eliminating their negative impact on biodiversity.
Impact on biodiversity
The Company's business unit at the Celje site covers a total area of 45.7 hectares, of which 46% is
paved, including the buildings used for its operations, and the remainder is grassland.
The site in Mozirje covers a total land area of approximately 2.8 hectares. Approximately 60% of the
area is paved, the remainder is grassland.
There are watercourses in the vicinity of both sites, namely the Hudinja and Vzhodna Ložnica
watercourses at the Celje site, which are channelized, cleaned and regularly maintained (removal of
invasive plants) at our site. The area of the watercourses in Mozirje is mostly grass-covered.
Our operations do not have a significant impact on the existence of, or changes to, the diversity of
living nature (biodiversity) in terms of emissions and environmental impacts, as evidenced by the
following facts:
− Design of technological change or construction takes into account and ensures that the impact
on the ecosystem is kept to a minimum;
− We do not use chlorinated organic substances, which contribute significantly to climate change;
− Our activities do not affect the introduction or extinction of species;
− We do not pollute the soil, air and water excessively, as we have built-in treatment plants, and
indirectly our products are not a major polluter of the ecosystem.
As a result, we have not caused any changes that would affect biodiversity and ecosystems. Our
responsible and controlled management of the environment means that our activities do not upset
the environmental balance.
Old riverbed revitalisation project
Although we do not have protected habitat areas on our sites, we are aware of the wider importance
of biodiversity conservation. At the initiative of the Ministry of Natural Resources and Spatial Planning
(formerly the Ministry of the Environment and Spatial Planning), which is leading the LIFE Integrated
Project for Enhanced Management of Nature 2000 (LIFE-IP NATURA.SI) in Slovenia, we have therefore
taken an active role in this area. The main purpose of the project is to contribute to improving the
management of Natura 2000 sites in Slovenia through cooperation between different sectors and
stakeholders. In addition to systemic improvements, concrete actions will be implemented to improve
the status of species and their habitats in eight Natura 2000 sites.
Specific actions include measures to improve the status of species and habitats in the Volčeke Natura
2000 site. These actions will simultaneously contribute to the objectives of reducing flood risk and
achieving good water status. In particular, a section of the revitalisation of the old riverbed of the
Vzhoda Ložnica is planned in Volčeke. It is envisaged that the revitalisation of the old channel will be
carried out through the existing dead water channels, thus diversifying the channel and also allowing
passage for fish, which are prevented from passing through the current regulated channel due to the
barrier. The newly created channel will be planted with riparian vegetation, which will further
contribute to the objectives of improving water status.
The measure also includes the development of a small tributary from Cinkarna Celje, which flows via
another dead watercourse into the current regulated channel of Vzhoda Ložnica. The tributary will be
widened and planted with riparian and marsh vegetation to reduce the impact of pollution on the
water. The current regulated channel of Vzhodna Ložnica will remain only as a relief channel during

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high water in the revitalised section. The revitalisation of the watercourse is planned precisely in the
section where the upstream measuring point on the Vzhodna Ložnica LGP is located (the measuring
point where operational monitoring of the impact of waste water from the Bukovžlak waste disposal
plant of Cinkarna Celje is carried out). To this end, we have initiated the procedure for the amendment
of the OVD permit and will also be involved in the arrangement of a new measuring point that will
allow for the above-mentioned amendment. The amendment of the OVD is foreseen for early 2023
and the project itself is expected to be completed in 2024/2025.

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Financial report
Financial statements
Condensed statement of financial position
In EUR
Notes
31/12/2022
31/12/2021
ASSETS
Non-current (long-term) assets
Intangible assets
1
1,208,224
980,672
Tangible fixed assets
2
104,083,017
105,896,129
Financial assets at fair value through other
comprehensive income
3
1,973,765
1,651,099
Other non-current assets
4
68,049
53,028
Deferred tax assets
5
1,226,475
1,930,685
Total non-current (long-term) assets
108,559,530
110,511,613
Current assets
Stocks
6
72,754,823
40,298,476
Trade receivables
8
24,290,543
31,172,903
Cash and cash equivalents
9
45,210,098
59,746,594
Other current assets
10
133,009
155,223
Total current assets
142,388,473
131,373,196
Total assets
250,948,003
241,884,809

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In EUR
Notes
31/12/2022
31/12/2021
CAPITAL AND LIABILITIES
Owners' capital
11
Called-up capital
20,229,770
20,229,770
Capital reserves
44,284,976
44,284,976
Profit reserves
120,290,401
101,824,169
Fair value reserve
–809,390
–1,179,701
Retained earnings
25,014,391
25,006,577
Total capital
209,010,148
190,165,790
Non-current liabilities
Provisions for employee benefits
12
3,651,696
4,256,064
Other provisions
13
14,816,968
18,801,189
Non-current deferred income
14
363,054
215,749
Total non-current liabilities
18,831,718
23,273,002
Current liabilities
Financial liabilities
15
59,392
197,503
Trade payables
16
19,518,145
23,242,724
Income tax payable
2,367,161
3,852,235
Liabilities under contracts with buyers
17
157,520
136,087
Other current liabilities
18
1,003,919
1,017,468
Total current liabilities
23,106,137
28,446,017
Total liabilities
41,937,855
51,719,019
Total capital and liabilities
250,948,003
241,884,809
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

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Income statement for the period from 1 January to 31 December
In EUR
Notes
2022
2021
Revenue from contracts with buyers
20
227,153,116
192,462,100
Change in the value of stocks of products and work in
progress
14,113,923
–463,845
Capitalised own products and own services
2
2,442,358
3,750,475
Cost of goods and materials sold
22
200,613
140,470
Cost of materials
22
134,953,778
97,519,612
Cost of services
22
16,229,210
13,830,982
Labour costs
22
29,483,416
28,888,986
Depreciation
22
12,150,684
11,281,415
Other operating revenue
21
7,749,919
1,387,062
Other operating expenditure
22
5,264,418
5,468,743
Impairments and write-offs of trade receivables
1,553
28,975
Operating profit or loss
53,175,643
39,976,608
Financial revenue
23
1,564,464
809,100
Financial expenditure
23
2,024,533
829,203
Financial result
–460,070
–20,103
Profit or loss before tax
52,715,574
39,956,505
Accrued tax
8,789,599
7,006,296
Deferred tax
–529,510
276,914
Income tax
24
9,319,109
6,729,381
Net profit for the year
43,396,465
33,227,124
Basic and diluted earnings per share
5.37
4.11
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

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Statement of other comprehensive income for the period from 1 January to 31 December
In EUR
2022
2021
Net profit
43,396,465
33,227,124
Other comprehensive income for the year
0
0
Other comprehensive income for the year that will not be
recognised in the income statement in the future
0
0
Other comprehensive income for the year that will be
recognised in the income statement in the future
0
0
Change at fair value through other comprehensive income
322,666
–103,927
Translation of post-employment benefits
222,345
–408,216
Impact of deferred taxes
–174,700
–19,746
Net other comprehensive income in the year that will not
be recognised in the income statement in the future
370,311
–531,889
Total other comprehensive income for the year (after tax)
370,311
–531,889
Total comprehensive income for the year (after tax)
43,766,777
32,695,234
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

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Statement of changes in equity and determination of distributable profit
In EUR
Year 2022
Called-up
capital
Capital
reserves
Profit reserves
Fair value
reserve
Retained earnings
Statutory
reserves
Reserves
for own
shares
Own
shares
Other
profit
reserves
Profit or
loss carried
forward
Net profit
for the
period
Total capital
Opening balance of the period
20,229,770
44,284,976
16,931,435
4,814,794
–4,814,794
84,892,734
–1,179,702
86,234
24,920,343
190,165,790
Changes in equity – transactions
with owners
24,922,418
24,922,418
Purchase of own shares
0
Withdrawal of own shares
0
Payment of dividends
24,922,418
0
24,922,418
Total comprehensive income for
the period
370,012
0
43,396,465
43,766,777
Entry of net profit or loss for the
period
43,396,465
43,396,465
Other components of
comprehensive income for the
period
370,012
370,312
B3. Changes in equity
18,466,232
24,920,343
–
43,386,575
0
Allocation of the residual part of
net profit for the period to other
components of capital
0
Allocation of part of reported net
income to other components of
capital as decided by management
and supervisory bodies
18.,466,232
0
24,920,343
–
43,386,575
0
Creation of reserves for own
shares
0
Release of reserves for own shares
Closing balance of the period
20,229,770
44,284,976
16,931,435
4,814,794
–4,814,794
103,358,966
–809,390
84,159
24,930,232
209,010,148
DISTRIBUTABLE PROFIT
84,159
24,930,232
25,014,391
In EUR
Year 2021
Called-up
capital
Capital
reserves
Profit reserves
Fair value
reserve
Retained earnings
Total capital
Statutory
reserves
Reserves
for own
shares
Own shares
Other profit
reserves
Profit or loss
carried
forward
Net profit for
the period
I/1
II
III/1
III/2
III/3
III/5
V
VI
VII/1
VIII
Opening balance of
the period
20,229,770
44,284,976
16,931,435
3,900,280
–3,900,280
77,500,437
–647,812
5,151,743
11,370,393
174,820,942
Changes in equity –
transactions with
owners
914,484
–914,484
16,435,902
16,435,902
Purchase of own shares
914,484
–914,484
Payment of dividends
16,435,902
16,435,902
Total comprehensive
income for the period
–531,890
0
33,227,124
32,695,234
Entry of net profit or
loss for the period
33,227,124
33,227,124
Other components of
comprehensive income
for the period
–531,890
–531,890
B3. Changes in equity
0
0
0
0
0
7,392,297
0
11,370,393
–19,677,173
–914,484
Allocation of the
residual part of net
profit for the period to
other components of
capital
Allocation of part of
reported net income to
other components of
capital as decided by
8,306,781
11,370,393
–19,677,173
0

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management and
supervisory bodies
Creation of reserves for
own shares
–914,484
–914,484
Release of reserves for
own shares
0
0
Closing balance of the
period
20,229,770
44,284,976
16,931,435
4,814,764
–4,814,764
84,892,734
–1,179,702
86,234
24,920,343
190,165,790
DISTRIBUTABLE
PROFIT
86,234
24,920,343
25,006,577
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

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Cash flow statement
In EUR
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit or loss before tax
52,715,574
39,956,505
Adjustments for:
8,918,973
11,808,838
– Amortisation and depreciation +
12,150,685
11,281,415
– Profit/loss on sale of fixed assets
–7,253
–3,331
– Impairment/write-down (reversal of impairment) of assets
475,817
521,883
– Net decrease/increase in allowance for receivables
1,553
28,975
– Net financial income/expenditure
–493,615
–20,103
– Long-term provisioning
3,483,991
0
– Reversal of long-term provisions
-6,692,205
0
Cash flow from operating activities before change in net current assets
(working capital)
–40,604,786
–1,177,784
Change in trade receivables
6,880,807
–4,413,917
Change in other non-current and current assets
7,194
0
Change in stocks
–32,788,789
–4,773,871
Change in trade payables
–7,278,748
9,910,735
Change in provisions
–1,158,030
1,743,878
Change in deferred income
147,334
–95,964
Change in other current liabilities
–13,549
–62,336
Change in liabilities under contracts with buyers
21,432
–56,695
Income tax paid
–6,422,438
–3,429,614
Net cash flow from operating activities
21,029,760
50,587,559
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
43,513
59,749
Income from interest earned
20,235
7,446
Income from interest earned on dividends
16,025
13,915
Income from disposal of tangible fixed assets
7,253
3,331
Income from disposal of current financial assets
0
35,056
Expenditure on investments
–10,546,496
–11,325,408
Expenditure on acquisition of intangible assets
–436,676
–105,479
Expenditure on acquisition of tangible fixed assets
–10,109,820
–11,219,929
Net cash flow from investing activities
–10,502,983
–11,265,659
Cash flows from financing activities
Income from financing activities
0
137,412
Income from increase in financial liabilities
0
137,412
Expenditure on financing activities
–25,063,273
–17,370,542
Expenditure on repayment of financial liabilities
–138,140
–3,552
Expenditure on interest paid
–2,715
–4,189
Expenditure on purchase of own shares
0
–914,484
Expenditure on repayment of dividends and other profit shares
–24,922,418
–16,448,317
Net cash flow from financing activities
–25,063,273
–17,233,130
Closing balance of cash and cash equivalents
45,210,098
59,746,595
Net increase/decrease in cash and cash equivalents
–14,536,496
22,088,771

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Opening balance of cash and cash equivalents (01/01)
59,746,594
37,657,824
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.
Notes to the financial statements
I. Introductory notes to the financial statements
Cinkarna, metallurško-kemična industrija Celje, d. d., is organised as a joint stock company, with its
registered office at Celje, Kidričeva 26, and entered in the Court Register of the Court of Celje under
number I-402-00. The Company's main activity is chemical (SKD 20.120), namely the production of
titanium dioxide.
The financial part of the Annual Report is prepared for Cinkarna Celje d.d. and comprises the financial
statements with notes of Cinkarna Celje d.d. By the decision of the 25th General Meeting of
Shareholders of Cinkarna Celje d.d., the Company switched from Slovenian Accounting Standards to
International Financial Reporting Standards on 15 June 2021. As a result, all the Company's financial
statements are prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union.
The financial statements of Cinkarna Celje are presented in euros, without decimals. They form an
integral part of the Annual Report 2022, which is published on the Ljubljana Stock Exchange's electronic
information system SEOnet and on the website of Cinkarna Celje d.d.
(https://www.cinkarna.si/en/investor-information/fillings).
II. Introductory notes on reporting standards
In accordance with the transition of the share on 4 February 2021 to the First Quotation, Cinkarna Celje
d.d. has prepared its financial statements as at 31 December 2022 in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union.
A. DECLARATION OF COMPLIANCE WITH IFRS
The financial statements of the Company as at 31 December 2022 are prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union. For previous
years, including the year ended 31 December 2021, the Company has prepared its financial statements
in accordance with Slovenian Accounting Standards. For the first time, the Company has prepared its
first complete set of financial statements for the financial year ended 31 December 2021 with a date
of transition to IFRS as at 1 January 2020 in accordance with IFRS with related interpretations adopted
by the International Accounting Standards Board (IASB) and interpretations of the International
Financial Reporting Interpretations Committee (IFRIC) adopted by the European Union (EU) and in
accordance with the provisions of the Companies Act (ZGD).
The financial statements for the financial year 2022 were approved by the Management Board on 14
March 2023.
The Company prepares its financial statements on a going concern basis. The accounting policies
applied are the same as those used in previous years.

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Initial application of new amendments to existing standards issued by the IASB and adopted by the
EU that are effective for the current reporting period
The accounting policies applied by the Company in the preparation of its financial statements are the
same as those applied in the preparation of the financial statements for the previous financial year.
The exceptions are the revised standards and interpretations adopted by the Company on 1 January
2022 and described below:
A) Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those adopted last year, with the exception of the
following changes to IFRS adopted by the Company on 1 January 2022, which are described below:
• IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions,
Contingent Liabilities and Contingent Assets, and annual improvements for 2018-2020
(amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022, with earlier
application permitted. The IASB board issued the amendments to the narrow scope IFRSs as follows:
• IFRS 3 Business Combinations (amendments) updates the references in IFRS 3 from the
previous version of the International Accounting Standards Board's Framework for Financial
Reporting to the current version issued in 2018 without materially affecting the accounting
requirements for business combinations.
• IAS 16 Property, Plant and Equipment (amendments) prohibits a company from deducting
from the cost of property, plant and equipment amounts received from the sale of products
that have been manufactured while the company is putting the property, plant and equipment
into the location and condition necessary for it to operate as intended by management.
Instead, the company recognises those amounts received from the sale of products and the
related costs in profit or loss.
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets (amendments) specifies what
costs an entity includes in determining the cost of performing a contract for the purpose of
assessing whether the contract is onerous. The Amendments clarify that the costs of
performing a contract are costs that relate directly to the contract and include incremental
costs of performing that contract and the allocation of other costs that relate directly to the
performance of the contract.
The annual improvements for 2018-2020 introduce minor amendments to IFRS 1 First-time Adoption
of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture, and
illustrative examples accompanying IFRS 16 Leases.
These amendments had no impact on the financial statements of Cinkarna Celje d.d.
• IFRS 16 Leases - Rent Adjustments in respect of COVID-19 after 30 June 2021 (amendment)
The amendment applies for annual reporting periods beginning on or after 1 April 2021, with permitted
application before that date, including in financial statements that have not yet been authorised for
issue at the date of issue of the amendment. In March 2021, the Board amended the terms of the
practical expedient in IFRS 16 to provide lessees with assistance in applying the guidance in IFRS 16 on
lease amendments to lease rent adjustments that are a direct result of the COVID-19 pandemic.
Following the amendment, the practical expedient is now applied to lease rent adjustments if the
reduction in lease rentals affects only payments that would have been originally due on or before 30
June 2022 and the other conditions for applying the practical expedient are also met.
These amendments had no impact on the financial statements of Cinkarna Celje d.d.

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B) Standards that are not yet effective and have not been early adopted by the Company
• IFRS 17 Insurance Contracts
The Standard is effective for annual periods beginning on or after 1 January 2023 with permitted
application before that date if the entity also applies IFRS 9 Financial Instruments on or before the date
it first applies IFRS 17. This is a comprehensive new accounting standard covering the recognition,
measurement, presentation and disclosure of insurance contracts. IFRS 17 applies to all types of
insurance and reinsurance contracts issued and to investment contracts with discretionary
participation. The Company does not issue contracts under IFRS 17 and, therefore, the application of
this standard does not affect the Company's financial performance, financial position or cash flows.
IFRS 17, which aims to provide a comprehensive approach to accounting for insurance contracts that
is more useful and consistent for insurers, sets out principles for the recognition, measurement,
presentation and disclosure of all types of insurance, reinsurance and investment contracts with
discretionary participation. The comprehensive approach is complemented by specific adaptations for
direct participation contracts (the variable remuneration approach) and a simplified approach (the
premium allocation approach), particularly for short-term contracts.
The main features of the new accounting approach include the measurement of the present value of
an estimate of future cash flows, including an adjustment for non-financial risk, which is re-measured
each reporting period. The model also includes a contractual service margin, which represents the
unearned profit on insurance contracts that the company will recognise when it provides services on
the insurance contract in the future. Changes in expected future cash flows affect the contractual
service margin and are recognised in profit or loss over the remaining period of cover. Amounts
payable to the policyholder in all circumstances, regardless of whether an insured event occurs
(investment components that are not separable), are not presented in the income statement but are
recognised directly in the statement of financial position.
In addition, the presentation of insurance income and expenses from insurance services in the
statement of comprehensive income was based on the concept of services provided during the
reporting period. The results of insurance services are presented separately from financial income or
expenses from insurance services. In the statement of financial position, the carrying amounts of
portfolios of insurance contracts that are assets and those that are liabilities are presented separately,
with the same requirement applying to portfolios of reinsurance contracts held. IFRS 17 also requires
extensive disclosures to provide companies with information about the amounts recognised for
insurance contracts and the nature and extent of the risks arising from those contracts. The IASB
decided to use a retrospective approach to estimate the contractual service margin at the date of
transition. However, if the retrospective approach, as defined in IAS 8, is not fully practicable for a
group of insurance contracts, the company must choose either the modified retrospective approach
or the fair value approach. Both allow for generalisation at transition.
In December 2021, the International Accounting Standards Board issued amendments to IFRS 17,
adding a transition option for an 'optional classification overlay' to address potential accounting
mismatches between financial assets and liabilities arising from insurance contracts in the comparative
information presented when IFRS 17 was initially applied. A company that applies an optional
classification overlay to a financial asset presents comparative information as if the classification and
measurement requirements in IFRS 9 had been applied to that financial asset. The management of the
Company has assessed that there will be no material impact on the financial statements of Cinkarna
Celje d.d.
• IAS 1 Presentation of Financial Statements and IFRS Practice Guidance No 2: Disclosure of
Accounting Policies (amendments)

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The amendments are effective for annual periods beginning on or after 1 January 2023, with earlier
application permitted. The amendments provide guidance on the application of materiality
judgements to accounting policy disclosures. In particular, the amendments to IAS 1 replace the
requirement to disclose 'significant' accounting policies with a requirement to disclose 'material'
accounting policies. The application guidance also adds guidance and illustrative examples to assist in
applying the concept of materiality in assessing disclosures about accounting policies. The Company's
management has assessed that there will be no material impact on the financial statements of
Cinkarna Celje d.d.
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates (amendments)
The amendments are effective for annual periods beginning on or after 1 January 2023, with earlier
application permitted, and apply to changes in accounting policies and changes in accounting
estimates that occur on or after the beginning of that period. The amendments introduce a new
definition of accounting estimates, defined as monetary amounts in the financial statements that are
subject to measurement uncertainty if they do not result from the correction of a prior period error.
The amendments also clarify what changes in accounting estimates are and how they differ from
changes in accounting policies and corrections of errors. The Company's management has assessed
that there will be no material impact on the financial statements of Cinkarna Celje d.d.
• IAS 12 Income Taxes: Deferred Tax on Assets and Liabilities Arising from a Single Transaction
(amendments)
The amendments are effective for annual periods beginning on or after 1 January 2023, with earlier
application permitted. They limit and further clarify the scope of the exceptions to initial recognition
under IAS 12 and specify how entities should account for deferred tax associated with assets and
liabilities arising from a single transaction, such as leases and decommissioning obligations. The
amendments clarify that, for payments that settle a liability and are deductible for tax purposes, an
assessment is required, subject to applicable tax law, as to whether such deductions are attributable
for tax purposes to the liability or to a related component of the asset. Under the amendments, the
initial recognition exception does not apply to transactions that give rise to the same taxable and
deductible temporary differences on initial recognition. It applies only if the recognition of a leased
asset and a leased liability (or an element of a decommissioning liability and a decommissioning asset)
gives rise to taxable and deductible temporary differences that are not the same. The Company's
management has assessed that there will be no material impact on the financial statements of
Cinkarna Celje d.d.
• IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-
current (amendments)
The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with
earlier application permitted, and apply retrospectively in accordance with IAS 8. The objective of the
amendments is to clarify the principles in IAS 1 for classifying liabilities as current or non-current. The
amendments clarify the meaning of the right to defer settlement of a liability, the requirement that
the right exists at the end of the reporting period, that the management's intention does not affect
the classification of the liability as current or non-current, and that counterparty options that could
lead to settlement by transfer of the entity's own equity instruments do not affect the classification of
the liability as current or non-current. The amendments also specify that only commitments that are
due to be fulfilled by the entity on or before the reporting date will affect the classification of liabilities.
Additional disclosures are also required for non-current loan commitments that are subject to
covenants to be fulfilled within 12 months of the reporting period. These amendments have not yet

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been endorsed by the European Union. The Company's management has assessed that there will be
no material impact on the financial statements of Cinkarna Celje d.d.
• IFRS 16 Leases: Lease Liability on Sale and Leaseback (amendments)
The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with
earlier application permitted. The aim of the amendments is to improve the requirements that a seller-
lessee applies in measuring lease liabilities in sale and leaseback transactions under IFRS 16, while not
changing the accounting for leases other than sale and leaseback leases. In particular, the seller-lessee
determines the lease payments or adjusted lease payments so that the seller-lessee would not
recognise any amount of gain or loss relating to the right-of-use that it retains. Applying these
requirements does not prevent the seller-lessee from recognising in profit or loss a gain or loss relating
to the partial or complete termination of a lease. In accordance with IAS 8, a seller-lessee applies the
amendment retrospectively to sale and leaseback transactions entered into after the date of initial
application, which is the beginning of the annual reporting period in which the entity first applies IFRS
16. The Company's management has assessed that there will be no material impact on the financial
statements of Cinkarna Celje d.d.
• Amendment to IFRS 10 Consolidated Financial Statements, and IAS 28 Investments in
Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
The amendments address a recognised inconsistency between the requirements of IFRS 10 and those
of IAS 28 in the treatment of a sale or distribution of assets between the owner and an associate or
joint venture. The main effect of the amendments is that the full gain or loss is recognised if the
transaction involves a plant (whether or not it is part of a subsidiary). A partial gain or loss is recognised
if the transaction involves assets that do not constitute a plant, even if those assets are deposited with
the subsidiary. In December 2015, the IASB postponed the effective date of this amendment
indefinitely pending the completion of its research project on the equity method. The European Union
has not yet endorsed these amendments. The Company's management has assessed that there will be
no impact on the financial statements of Cinkarna Celje d.d.
B. APPLICATION OF THE GOING CONCERN ASSUMPTION
In preparing the financial statements for the financial year 2022 of Cinkarna Celje, the Management
Board of Cinkarna Celje has taken into account the going concern basis of accounting, which assumes
that the Company has the knowledge, information and actions that enable it to continue as a going
concern and to be able to generate sufficient cash flow to meet its liabilities and provide investors with
an adequate return on equity.
C. MEASUREMENT BASES
The financial statements are prepared on a historical cost basis, except for derivatives, financial
instruments at fair value through profit or loss and financial instruments at fair value through other
comprehensive income, where fair value is taken into account.
Č. FUNCTIONAL AND PRESENTATION CURRENCY
The financial statements and notes are drawn up in euro, excluding cents. Financial information
presented in the financial report in euro is rounded.
D. USE OF ESTIMATES AND JUDGEMENTS

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The preparation of financial statements requires management to make estimates, judgements and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
The estimates include the determination of the useful lives and residual values of property, plant and
equipment and intangible assets, the recoverable amount of plant and equipment, estimates of the
fair value of financial assets at fair value through other comprehensive income, valuation allowances
for inventories and receivables, estimates of amounts payable under contracts with customers,
estimates of the recoverability of deferred tax assets, assumptions relevant for the actuarial
calculation of employee benefits, assumptions included in the calculation of the provision for
environmental purposes, and legal and personal claims.
The estimates and assumptions are reviewed regularly. Revisions to accounting estimates are
recognised for the period in which the estimates are revised, to the extent that they affect only that
period, and for future periods affected by the revisions. Information about significant estimation
uncertainties and critical judgements made by the Management Board of Cinkarna Celje in the process
of applying the accounting policies that have the most significant effect on the amounts recognised in
the financial statements is described in the following notes:
• Note 2 Impairment Testing of Non-financial Assets
The Company reviews individual cash-generating units for indicators of impairment at least annually,
and the recoverable amount of non-financial assets is determined on the basis of the present value of
future cash flows, which is based on both an estimate of the expected cash flows from the cash-
generating unit and the determination of an appropriate discount rate.
• Note 21 Revenue from Contracts with Buyers
Revenue from contracts with buyers is recognised based on the terms of the individual sales contract
with the buyer, at the time control of the goods and services is transferred to the buyer, in an amount
that reflects the consideration to which Cinkarna Celje believes it will be entitled in exchange for such
goods or services. Revenue from contracts with buyers is reduced by bulk allowances (volume
discounts granted) where the Company verifies accurately that the contractually agreed quantities are
taken up. If the contracted quantities are taken up, the Company grants the customer a discount on
the quantity taken up. The percentage of the discount is agreed in the contract with the individual
buyer. The payment criterion is also taken into account when assessing the granting of discounts. If
outstanding debts due to the buyer, who would be entitled to compensation for the higher volumes,
are not settled, the discount is not granted and is only assessed.
• Impairment test for trade receivables in Note 8 Current Trade Receivables
At the time of preparation of the financial statements (quarterly and annual), the Company makes an
allowance or impairment for receivables that are not expected to be settled in full or at all. The basis
for the calculation of the allowance is a uniform methodology applicable to the Company and is based
on the probability or estimate of default by the buyer. The methodology includes the following
quantitative and qualitative criteria: an analysis of the buyer's payment record, an analysis of the
buyer's financial statements - credit report, qualitative assessments of the buyer prepared by the sales
staff, and the collateralisation of the receivables through the granting of a credit limit with an insurance
company. On the basis of the above, which includes all criteria, an impairment allowance is calculated
for each buyer.

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• Note 3 Fair Value Measurement of Financial Assets at Fair Value through Other Comprehensive
Income
Fair value is used for financial assets measured at fair value through other comprehensive income and
financial assets measured at fair value through profit or loss. All other items in the financial statements
represent cost or amortised cost. The fair value of assets is reviewed annually based on known market
data or comparable data in the industry in which the entity has investments.
• Note 13 Estimate of Provisions Made
A provision is recognised when, as a result of a past event, the entity has a legal or constructive
obligation that can be measured reliably and it is more likely than not that an outflow of resources
embodying economic benefits will be required to settle the obligation. Contingent liabilities are not
recognised in the financial statements because their actual existence will be confirmed by the
occurrence or non-occurrence of events only in the unknowable future, which is beyond the
Company's control. The Company's management regularly reviews whether an outflow of resources
embodying economic benefits is probable to settle a contingent liability. If it becomes probable, the
contingent liability is reclassified to a provision in the financial statements when the degree of
probability changes. The Company's management, on the basis of the legal or other basis for
recognition, critically assesses whether the present obligation, which arises from past events and could
result in future outflows to the Company, is supported by external legal experts and the remediation
activities required in light of current knowledge, the measurements made, as well as the amount of
the cost and the estimate of the timetable for carrying out the activities, using the written opinions of
external specialists in the relevant field in making the assessment. This assessment mainly relates to
environmental provisions.
• Note 13 Provisions for Post-employment Benefits and Other Long-term Employee Benefits
The present values of retirement gratuities and jubilee awards are recorded within the defined post-
employment and other benefit obligations. They are recognised based on an actuarial calculation
prepared by a certified actuary and approved by the Management Board. The actuarial calculation is
based on assumptions and estimates that are valid at the time of the calculation and, due to changes
in the future, may differ from the actual assumptions then in effect. This relates primarily to the
determination of the discount rate for the employee turnover estimate, the mortality estimate and
the salary growth estimate. Defined benefit obligations are sensitive to changes in those estimates due
to the complexity of the actuarial calculation and the long-term nature of the item.
• Note 17 Current Liabilities under Contracts with Buyers
Cinkarna Celje accounts for contractual discounts when preparing its annual financial statements in
cases where buyers only become entitled to a discount on sales achieved in the current year in the
following year, i.e. when the contractually agreed conditions for obtaining the discount have been met.
The basis for estimating the amount of these discounts is the facts known at the time the annual
accounts are prepared, past experience with individual buyers, and other relevant facts.
Assessment of the recoverability of deferred tax assets in Note 5 Deferred Tax Assets and Liabilities
The Company recognises deferred tax assets in respect of: provision for jubilee and retirement
benefits, impairment of investments, impairment of receivables, unused tax credits and tax losses. The
Company verifies the amount of tax receivables and tax payables recorded at the date of the financial
statements. Deferred tax assets are recognised when it is probable that future taxable profit will be
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tax is reversed for the amount for which it is not probable that the tax benefit associated with the asset
will be available.
Critical assessment of the macroeconomic situation (inflation and economic downturn)
Due to the deterioration of the macroeconomic environment caused by inflation, the situation in
upstream and downstream markets and the situation related to the war in Ukraine, the Company
reviews significant accounting policies and estimates in areas that could be adversely affected by the
situation, in particular impairment of assets/receivables due to deterioration in payment discipline,
provisions, fair value measurement, leases, labour costs, and the recoverability of deferred tax assets.
III. Significant accounting policies
The Company has applied accounting policies in accordance with IFRS for the period presented in the
accompanying financial statements. The Company has not changed the accounting policies published
in the Annual Report 2021. The accounting policies and methods of computation used are the same as
those used in the last annual reporting.
A. TRANSLATION OF FOREIGN CURRENCIES
For transactions originally denominated in a foreign currency, the commercial bank rate or the
European Central Bank mid-rate (reference rate) is used for the translation of transactions during the
year. Assets and debts denominated in a foreign currency are recorded at their translated value at the
European Central Bank mid-rate at the reporting date. Exchange differences, whether positive or
negative, are the differences between the amortised cost in the functional currency at the beginning
of the period and the amortised cost of payments during the period, and the amortised cost in the
foreign currency translated at the exchange rate at the end of the period. Non-monetary assets and
liabilities denominated in a foreign currency and measured at fair value are translated into the
functional currency at the exchange rate at the date the fair value is determined. Non-monetary items
denominated in a foreign currency and measured at historical cost are translated into the functional
currency at the exchange rate at the date of the transaction. Exchange differences are recognised in
the income statement.
B. INTANGIBLE ASSETS
Development costs incurred by the Company are recognised as an intangible asset. An intangible asset
is derecognised and removed from the balance sheet and statement of financial position on disposal
or when no further economic benefits are expected from its use and subsequent disposal.
Other intangible assets have finite useful lives and are carried at cost less accumulated amortisation
and accumulated impairment losses. The cost also includes borrowing costs until the intangible asset
is created.
Subsequent expenditure on intangible fixed assets is capitalised when it increases the future economic
benefits of the asset to which it relates.
The Company applies the straight-line method. Amortisation rates are based on expected useful lives.
Amortisation is charged on a straight-line basis until the amortised cost base is fully recovered and
amortisation commences when the intangible asset with a finite useful life is available for use.
The estimated useful lives for the current and comparative period are:

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− Computer programmes: 2 to 10 years
− Technical and project documentation: 8 to 40 years
− Easements: 20 years and more
The amortisation rates in 2022 remain unchanged from the previous year.
C. TANGIBLE FIXED ASSETS
The Company's tangible fixed assets comprise land, buildings, manufacturing equipment, other
tangible fixed assets, small inventories, tangible fixed assets under construction, and advances for the
acquisition of tangible fixed assets.
The Company uses the cost model. Cost includes costs directly attributable to the acquisition of each
tangible fixed asset (import and non-refundable purchase duties and costs directly attributable to its
qualification for its intended use, in particular import and installation costs). Under the cost model,
tangible fixed assets are carried at cost less accumulated depreciation allowances and accumulated
impairment losses. The cost includes borrowing costs related to the acquisition of a tangible fixed asset
until it is ready for use.
The cost of tangible fixed assets constructed or manufactured by the Company consists of the costs
directly attributable to their construction or manufacture (costs of materials, labour, services of
external contractors and services of the Company's business units) and those general costs of
construction or manufacture that are attributable to their qualification for their intended use.
The cost of tangible fixed assets is allocated to their components if their value is significant, they have
different useful lives that are significant in relation to the total cost of the tangible fixed asset, and they
are accounted for as individual assets.
Subsequent expenditure on a tangible fixed asset increases its cost if it is a replacement and it is
probable that its future economic benefits will be greater than those originally estimated. Subsequent
expenditure on a fully depreciated tangible fixed asset is recognised as a new asset with a new useful
life.
We capitalise own products and own services when they enhance the future benefits of an asset or
increase its useful life. These are goods and services that are created or rendered and then recorded
at cost as tangible fixed assets or intangible assets. At the same time, these effects of capitalising own
goods and services are recorded in other operating income.
The Company applies the straight-line method. Amortisation rates are based on expected useful lives.
Amortisation is charged on a straight-line basis until the asset is fully recovered from its value, which
forms the basis for amortisation, and commences to be amortised on the first day of the month
following the month in which it is available for use. Land and fixed assets of artistic and cultural interest
are not depreciated.
The estimated useful lives for the current and comparative period are:
− Buildings: 5 to 71 years
− Production equipment: 2 to 30 years
− Other equipment: 2 to 5 years

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The amortisation rates in 2022 remain unchanged from the previous year.
In estimating the useful lives of assets, the Company considers expected physical wear and tear,
technical obsolescence, economic obsolescence and expected legal and other restrictions on use. The
Company also reviews the useful lives of major assets in the event that circumstances change and
require a change in the useful life and therefore a revaluation of depreciation expense.
Leases
The Company assesses whether a contract is a lease or contains a lease at the time the contract is
entered into. A contract is a lease or contains a lease if it transfers the right to control the use of an
identified asset for a fixed period in exchange for compensation. The Company determines the term
of a lease as the period during which the lease cannot be terminated, together with (a) the periods for
which the option to extend the lease is exercisable if it is reasonably certain that the option will be
exercised and (b) the periods for which the option to terminate the lease is exercisable if it is
reasonably certain that the option will not be exercised.
The Company as lessee
As a lessee, the Company has no leases.
The Company as lessor
Lease contracts that do not involve a significant transfer of the risks and rewards of ownership are
classified as operating leases. Rental income is accrued on a straight-line basis over the lease term and
recognised in income in the income statement. Initial direct costs are incremental costs directly
attributable to negotiating and agreeing the lease, increase the carrying amount of the leased asset
and are recognised over the lease term in the same way as rental income. Contingent lease payments
are recognised as income in the period in which they are earned.
D. OTHER NON-CURRENT ASSETS
The Company recognises as other non-current assets emission allowances received free of charge from
the government. The Company records the receipt and use of emission allowances as follows:
• Emission allowances granted by the State (the Ministry of the Environment and Spatial Planning
and the Environment Agency of the Republic of Slovenia) from 2013 onwards are shown in the
statement of financial position at a value of EUR 1 per emission allowance;
• Revenue from the sale of allocated emission allowances is shown in other operating income in the
income statement;
• Purchases of emission allowances in the market are recorded as non-current assets at cost if they
involve actual issuances that will occur in future periods;
• Current trade payables are expensed when the estimated amount of actual emissions exceeds the
number of emission allowances the Company has either allocated or purchased to cover the actual
emissions;
• If the market value of the purchased allowances at the year end is lower than their carrying amount,
the allowances are revalued for impairment;
• The Company first uses all the allowances acquired from the State on the balance sheet cut-off
date, and then uses all the allowances it has purchased on the market at the average price to cover
any shortfall.
E. FINANCIAL INSTRUMENTS

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Financial instruments include non-derivative financial assets, non-derivative financial liabilities and
derivative financial instruments. Financial instruments are carried at fair value and amortised cost. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
On initial recognition, the Company classifies financial assets as subsequently measured at amortised
cost, fair value through comprehensive income and fair value through profit or loss. The classification of
financial assets at initial recognition depends on the contractual cash flow characteristics of the financial
asset and the Company's business model for managing them. Except for trade receivables that do not
have a significant financial component or for which the Company has applied a practical expedient, the
Company measures financial assets at fair value on initial recognition, which, in the case of a financial
asset not recognised at fair value through profit or loss, is the fair value plus transaction costs.
Trade receivables that do not have a significant financial component or for which the Company has
applied a practical expedient are measured at transaction price determined in accordance with IFRS
15 (see accounting policies in the section Revenue from contracts with buyers).
Non-derivative financial assets
Financial assets are classified into one of the following groups on initial recognition:
• Financial assets measured at amortised cost
• Financial assets at fair value through other comprehensive income
• Financial assets at fair value through profit or loss
• Cash and cash equivalents.
Non-derivative financial assets include cash and cash equivalents, receivables, loans and investments.
The Company recognises receivables, loans and deposits at the date they are incurred. It recognises
other assets when the transaction is entered into or when it becomes a party to the contractual
provisions of the instrument. The Company derecognises a financial asset when the contractual rights
to the cash flows from the financial asset expire or when the rights to the contractual cash flows from
the financial asset are transferred in a transaction that transfers all the risks and rewards of ownership
of the financial asset.
Impairment of financial assets is described in more detail in Note G below.
Financial assets at fair value through other comprehensive income
Financial assets measured at fair value through other comprehensive income that are debt instruments
are those financial assets that are held by the Company for the purpose of receiving contractual cash
flows that represent solely payments of principal and interest on the principal outstanding. For debt
instruments that are recognised at fair value through other comprehensive income, interest income,
exchange differences and impairment or reversal losses are recognised in the income statement and
accounted for in the same way as financial assets at amortised cost. All other changes in fair value are
recognised in the statement of other comprehensive income. On derecognition, the cumulative change
in fair value recognised in other comprehensive income is reclassified to profit or loss. Financial assets
measured at fair value through other comprehensive income that have the characteristics of an equity
instrument are those financial assets that meet the definition of equity in accordance with IAS 32
Financial Instruments and that the Company has elected to designate irrevocably as equity instruments
at fair value through other comprehensive income and that are not held for trading purposes. The
classification is determined on an instrument-by-instrument basis. Profits and losses on these financial
assets are never allocated to the income statement.

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Dividends on equity instruments are recognised as financial income in the income statement when the
right to receive payment is established.
Financial assets at amortised cost
The Company classifies as financial assets at amortised cost financial assets held for the purpose of
generating contractual cash flows that represent solely payments of principal and interest on the
principal outstanding. The Company classifies loans, trade and other receivables as financial assets at
amortised cost. Depending on their maturity, they are classified as either current (maturity up to 12
months after the statement of financial position date) or non-current (maturity more than 12 months
after the statement of financial position date). Loans and receivables are initially recognised at fair
value plus direct transaction costs. Subsequent to initial recognition, loans and receivables are
measured at amortised cost using the effective interest rate method less expected credit losses. Gains
and losses are recognised in profit or loss when eliminated, modified or impaired. Insurance of trade
receivables is not treated as a separate financial instrument but as an integral part of the receivables.
Insurance policies are taken out on a periodic (annual) basis and relate to specific receivables and/or
counterparties. The insurance policy taken out is flexible, whereby business partners can be added or
removed from the insurance for the duration of the insurance policy. The insurance policies relate
exclusively to the insurance of trade receivables.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial
assets at fair value through profit or loss or financial assets that are required to be measured at fair
value. Financial assets are classified as held for trading if they are acquired with a view to being sold
or repurchased in the foreseeable future. Derivative financial instruments, including separate
embedded derivatives, are classified as held for trading unless they are effective hedging instruments.
Financial assets that generate cash flows other than payments of principal and interest are classified
and measured at fair value through profit or loss, regardless of the business model. Financial assets at
fair value through profit or loss are carried at fair value in the statement of financial position, with net
changes in fair value recognised in the income statement.
Cash and cash equivalents
Cash and cash equivalents comprise: cash in hand, balances in transaction and foreign currency
accounts, bank deposits with a maturity of 3 months or less, and similar investments held to ensure
solvency. Cash is recognised at initial recognition at the amount resulting from the relevant
instruments that give rise to control over the rights attaching to it.
Non-derivative financial liabilities
The Company's non-derivative financial liabilities comprise trade, financial and other payables. The
Company initially recognises these liabilities on the trade date when it becomes a party to the
contractual provisions of the instrument. The Company derecognises the liability when the obligations
under the contract are discharged, cancelled or become time-barred. Unliquidated obligations are
initially recorded at fair value plus transaction costs directly attributable to the transaction. After initial
recognition, they are measured at amortised cost. Depending on their maturity, they are classified as
either current (maturity up to 12 months after the statement of financial position date) or non-current
(maturity over 12 months after the statement of financial position date).
Derivative financial instruments

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Derivative financial instruments are initially recognised at fair value. Transaction costs are recognised
in the income statement as incurred. Subsequent to initial recognition, derivative financial instruments
are measured at fair value, with the related changes recognised in the income statement. Fair value is
defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. If the transaction price does not
equal the fair value at the measurement date, the difference for marketable assets is recognised in
profit or loss or deferred and subsequently released to profit or loss in accordance with the policy.
Investments or financial liabilities measured at fair value through profit or loss are remeasured at fair
value at least annually, at the time of the preparation of the annual financial statements. Gains or
losses arising from changes in fair value are recognised in the income statement.
The Company purchases strategic raw materials in US dollars and also sells into US dollar markets,
which are significantly lower in value than purchases. Purchases and sales in different currencies result
in discrepancies between purchase and sale prices due to the constantly changing euro/dollar
exchange rate; the Company balances this with forward transactions to maintain the correct
euro/dollar ratio and to reduce currency risks.
F. ASSETS (DISPOSAL GROUPS)
Assets or disposal groups comprising assets and liabilities that are expected to be settled principally
through sale and for which it is probable that a sale will occur are classified as held for sale. Impairment
losses on reclassification of assets as held for sale and subsequent losses or gains on remeasurement
are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment losses.
Intangible assets and tangible fixed assets cease to be amortised when they are classified as held for
sale. On disposal, the Company derecognises the asset (disposal group) and recognises the effect of
the disposal, less costs directly attributable to the sale, in other operating income or expense.
G. STOCKS
The Company's stocks are valued at the lower of cost and net realisable value. Cost comprises the
purchase price, import duties and direct acquisition costs. The purchase price is less any discounts
obtained. Direct acquisition costs are transport, loading, handling, unloading, monitoring and other
costs directly attributable to the trade goods, materials or services acquired. Purchase price discounts
include both those stated on the invoice and those obtained subsequently and relating to a particular
purchase.
The Company carries stocks of raw materials and consumables, ancillary materials, packaging and
merchandise at cost plus any related acquisition costs. The Company uses constant prices with offsets
to record inventories and consumption of materials. Consumption of basic raw materials is recorded
using the FIFO method and consumption of other inventories of materials and supplies is recorded
using the weighted average cost method. Stocks of raw materials and supplies with no movement are
revalued for impairment by writing down the value according to the following criteria:
− Third year: 25%;
− Fourth year: 50%;
− Fifth year: 100%.
Stocks of work in progress, semi-finished and finished goods are valued at production cost, which
includes direct costs of materials, wages, salaries and production services, depreciation and
amortisation, and a portion of the general production costs of production cost centres, comprising the
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uses constant prices (PVS) with offsets to record stocks of work in progress and finished goods. Cost
transfers from stocks are made using the weighted average price method.
Stocks of work in progress and finished goods without movement are revalued for impairment by
writing down the value according to the following criteria:
− Second year: 25%;
− Third year: 50%;
− Fourth year: 100%.
H. IMPAIRMENT OF ASSETS
Financial assets
In accordance with IFRS 9, the Company uses an expected loss model to recognise not only losses
incurred but also losses expected to be incurred in the future. The Company assesses evidence that
financial instruments are impaired. If, at the reporting date, the credit risk of a financial instrument
has not increased significantly since initial recognition, the impairment assessment is based on the
expected credit losses associated with the probability of default of the financial instrument within the
next 12 months.
For financial assets, such as trade receivables, that do not have a significant financing component, a
simplified approach is used whereby the valuation allowance is calculated as an amount equal to the
expected credit losses over the life of the financial asset. The Company forms groups of receivables
based on their collateralised/uncollateralised status, maturity, similar risk characteristics and historical
recoverability, adjusted for the management's assessment of whether actual losses due to current
economic conditions may be greater or less than the losses projected by historical development.
If credit risk has increased significantly since initial recognition but the assets do not yet show objective
evidence of impairment, the impairment assessment is based on the probability of default over the life
of the financial asset. Expected credit losses represent the difference between the contractual cash
flows that are contractually due and all cash flows that the Company expects to receive. For financial
assets that show objective evidence of impairment at the reporting date, a full allowance for expected
credit losses is provided for based on a decision of the Management Board. The Company recognises
a write-down of a financial asset when it has a reasonable expectation that it will not be able to collect
the contractual cash flows. Objective evidence that a financial asset is impaired may include: default
or breach by the debtor; indications that the debtor is about to enter bankruptcy or is subject to
proceedings under the Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act
(ZFPPIPP).
Claims that are presumed to be unsettled or not settled in full need to be considered doubtful and, if
they are the subject of legal proceedings, disputed. The Company records an allowance for these
receivables as a charge to operating expenses in respect of the receivables. The establishment of an
allowance for trade and other receivables is based on an individual assessment of their riskiness, taking
into account historical payment dynamics, past payment delays, the credit rating of the business
partner, and the status of the business partner in insolvency proceedings.
Investments in equity securities or interests in other companies for which an irrevocable decision has
been made at initial recognition that they are not held for trading are accounted for as financial assets
at fair value through other comprehensive income. The fair value of quoted securities is measured at
the exchange rate at the reporting date. Gains or losses arising from changes in fair value are
recognised in other comprehensive income and reported directly in equity as a reserve for fair values
of financial instruments, net. Amounts presented in other comprehensive income may not be
subsequently transferred to profit or loss. The cumulative gain or loss is transferred within equity.

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Non-financial assets
The Company reviews the carrying amount of significant non-financial assets at each reporting date to
determine whether there is any indication of impairment. If such indicators exist, the recoverable
amount of the asset is estimated. The recoverable amount of an asset or cash-generating unit (CGU)
is the higher of its value in use and its fair value less costs to sell. In determining the value in use of an
asset, the expected future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In allocating impairment to an individual CGU asset, the carrying amount of the individual asset
is not reduced below the higher of fair value less costs of disposal (if measurable), value in use (if
determinable) or nil. An impairment of an asset or cash-generating unit is recognised when its carrying
amount exceeds its recoverable amount. Impairment is recognised in profit or loss. The Company
evaluates impairment losses in prior periods at the end of the reporting period to determine whether
the loss has been reduced or no longer exists. An impairment loss is reversed if there has been a change
in the estimates used by the Company to determine the asset's recoverable amount. An impairment
loss is reversed to the extent that the increase in the carrying amount of the asset does not exceed the
carrying amount that would have been determined, net of amortisation, if no impairment loss had
been recognised for the asset in prior years.
I. FAIR VALUE MEASUREMENT
The Company's accounting policy requires the determination of the fair value of both non-financial
and financial assets and liabilities, either for the measurement of individual assets or for additional fair
value disclosures. Fair value is the amount for which an asset could be sold or a liability exchanged
between knowledgeable, willing parties in an arm's length transaction.
The methods used to determine the fair value of each class of assets for measurement or reporting
purposes are described below.
Financial assets at fair value through profit or loss and financial assets at fair value through other
comprehensive income
The fair value of financial assets at fair value through profit or loss and financial assets at fair value
through other comprehensive income is determined using comparable market data from companies
in the electricity industry.
Receivables and loans
The fair value of receivables and loans is calculated as the present value of future cash flows,
discounted at the market rate of interest at the end of the reporting period. The estimate takes into
account the credit risk of these financial assets.
Non-derivative financial liabilities
For reporting purposes, fair value is calculated based on the present value of future principal and
interest payments discounted at the market interest rate at the end of the reporting period.
J. CAPITAL

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The Company's total capital is made up of: called-up capital, capital reserves, profit reserves, fair value
reserves, retained earnings or undiscounted losses from previous years, and retained earnings or
undistributed losses for the year.
The called-up capital is the share capital, nominally defined in the Company's Articles of Association,
consisting of ordinary shares.
Treasury shares: When treasury shares that are accounted for as part of share capital are redeemed,
the amount of consideration paid, including costs directly attributable to the redemption, net of any
tax effects, is recognised as a change in capital. The repurchased shares are accounted for as treasury
shares and deducted from capital. When treasury shares are sold or subsequently reissued, the
amount received is recognised as an increase in equity and the resulting surplus or deficit on the
transaction is transferred to capital reserves or retained earnings, as appropriate.
The capital reserves consist of the capital reserves created in the course of the ownership procedure
and the general capital revaluation adjustments, which include the revaluation of the share capital
prior to 2002, in accordance with the then applicable SRS standards. The general capital revaluation
adjustment of the Company was transferred to the capital reserves on 1 January 2006 as a
consequence of the changeover to the new SRS standards (2006) on 1 January 2006.
Profit reserves are a portion of net profit from previous years that is retained for a specific purpose,
mainly to offset possible future losses. They consist of: legal reserves, reserves for own shares/own
interests, own shares/own interests (as a deductible item), statutory reserves and other profit
reserves.
Retained earnings from previous years are the residual of the then current net profit that is neither
distributed as dividends or other distributions to equity holders nor earmarked as a reserve.
The fair value reserve relates to the change in fair value of equity investments in other companies
measured at fair value through equity. The fair value reserve also includes the cost of remeasuring
post-employment benefits (actuarial gains/losses) arising from the change in the present value of the
retirement benefit obligation.
Dividends: Until dividends are approved by the General Meeting, deemed dividends are treated as
retained earnings, i.e. dividends are recognised in the financial statements in the period in which the
resolution of the General Meeting to pay dividends is passed.
K. CURRENT EMPLOYEE BENEFITS
Obligations for current employee benefits are measured on an undiscounted basis and are recognised
as an expense when the employee's service in respect of the defined benefit is rendered.
L. NON-CURRENT EMPLOYEE BENEFITS
Provisions for post-employment and other long-term employee benefits
The Company is obliged by law, collective agreement and internal rules to pay jubilee bonuses and
severance payments to employees on retirement, for which provisions are made. There are no other
pension obligations. Provisions are made for estimated future payments of severance and jubilee
benefits, discounted at the reporting date. The calculation takes into account the cost of severance
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interest costs are recognised in the income statement and the translation of post-employment benefits
or unrealised actuarial gains or losses is recognised in other comprehensive income.
M. PROVISIONS
Provisions are recognised when, as a result of a past event, the Company has a legal or constructive
obligation that can be measured reliably and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation. The amount recognised as a provision is
the best estimate at the reporting date of the expenditure required to settle the obligation. The
Company recognises a provision when the conditions for the provision are met and it is charged to the
relevant costs or expenses.
The environmental provision is established as a best estimate of the costs, based on external
independent environmental experts' assessments, associated with the operation of landfills and
facilities owned by the Company to cover long-term liabilities. The Company's management assesses
whether there is a legal, contractual or constructive obligation to replenish/release the provision.
Provisions are discounted at a risk-free rate, according to the estimated timing of the execution of the
works, which is projected by means of external experts' estimates, taking into account the structure of
the land, the activities required and the statutory provisions. In 2022, a review of the provisions was
carried out to reassess the execution of the necessary works, to define the timetable for the execution
of the works and the value of the execution of the works, taking into account inflation, and based on
the timetable, the provisions were discounted accordingly using the discount factor of the government
bond yields. This was done on the basis of an assessment by external experts and the annual
management review. Cost adjustments were made in line with the increase in prices of materials and
services to carry out the necessary rehabilitation.
N. STATE AIDS
Revenue from state aids is recognised in the financial statements of Cinkarna Celje d.d. when they are
received and there is reasonable assurance that the Company will comply with their terms and
conditions. The Company recognises state aids from the epidemic in Slovenia in current operating
income. Remaining state and other subsidies received to cover costs are recognised consistently as
income in the periods in which the related expenses are incurred to be compensated by the subsidies.
Asset-related state aid is recognised in the income statement on a strictly consistent basis within other
operating income over the useful life of the asset.
State aid received for the acquisition of fixed assets or the recovery of certain costs remains
temporarily in deferred income and is transferred to operating income in accordance with the
depreciation of the fixed assets acquired or the costs incurred for which they are intended.
O. OTHER CURRENT ASSETS AND OTHER LIABILITIES
Under other current assets, the Company recognises current deferred charges or expenses. In
accordance with the methodology set out for the deferral of the cost of annual commitments, deferred
costs for annual leave, insurance premiums paid and other current costs are recognised during the
year. At the reporting date, the Company recognises prepaid raw material costs and costs relating to
a future balance sheet period. The Company also recognises VAT on advances received as other current
assets.

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Under other current liabilities, the Company recognises accrued costs or expenses and deferred
income. In accordance with the established methodology for the delimitation of the cost of annual
liabilities, planned trade payables are delimited during the year. Accrued income during the year from
the sale of products and services is recorded as deferred income. The Company also recognises accrued
unused annual leave entitlement as well as VAT on advances made as other current liabilities.
P. REVENUE
Revenue from contracts with buyers
Revenue is recognised under IAS 15 if the increase in economic benefits during the period is
attributable to an increase in the value of an asset or a decrease in a debt and the increase can be
measured reliably. Revenue is recognised when it is reasonably expected to give rise to benefits, if
those benefits are not realised when they arise.
Revenue from contracts with buyers is the result of sales of chemical, metallurgical and other
manufactured goods and materials, where the performance obligation is discharged when the goods
are shipped or accepted by the buyer. In the case of revenue from contracts with buyers where the
sale results in the provision of services, the performance obligation is discharged when the service is
rendered. Revenue from sales is revenue arising from contracts with buyers for the sale of goods or
services. Revenue from sales reflects transfers (deliveries) of contractually agreed goods or services to
buyers in the amount of the expected consideration to which the Company will be entitled in exchange
for those goods or services. Amounts collected for the benefit of third parties, such as value added tax
and other taxes levied at the time of sale, are not a component of sales revenue. Similarly, amounts
collected for the benefit of the principal are not part of the proceeds of the sale (the proceeds of the
sale are only that part of the consideration due to the principal for the agency service provided). The
goods or services are transferred when the buyer obtains (or acquires) control of them. The buyer
obtains control of the good or service when he or she acquires the right to determine its use and the
right to substantially all of its residual benefits. Such control includes the ability to prevent others from
directing the use of the good or service and obtaining benefits from it. Benefits from goods or services
are potential cash flows (receipts or expenditure savings) that can be obtained directly or indirectly in
a variety of ways. The Company transfers control of the good or service and thereby discharges or
satisfies the performance obligation, either at a point in time or gradually. When entering into a
contract with a buyer, the Company is required to specify all performance obligations contained in the
contract. Each obligation to transfer goods or services to the buyer is identified as a separate (distinct)
performance obligation:
• Which, under the IFRS criteria, can be identified in the context of a contract separately from
other contractual obligations to transfer goods or services;
• The buyer can use the contractually agreed good or service alone or in conjunction with other
available or readily available resources (assets). For example, the fact that the Company
regularly sells the good or service separately would indicate that the buyer can use the good
or service alone or in conjunction with other readily available resources.
Proceeds from the sale are recognised at an amount reflecting the transaction price allocated to the
stand-alone performance obligation. The transaction price is the amount of consideration to which the
Company expects to be entitled in exchange for transferring the goods or services to the buyer,
excluding amounts collected on behalf of third parties.
The control of goods and services depends on the terms of the sales contract, and the transfer takes
place at the moment the goods are taken over by the buyer or the service is rendered. The normal
payment period is between 30 and 90 days.

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Assets from contracts with buyers
A contractual asset is a right to compensation in exchange for goods or services that are transferred to
the buyer but have not yet been invoiced to the buyer. The Company recognises unbilled revenue for
goods and services supplied to customers as a contract asset.
Obligations under contracts with buyers
A contractual obligation is an obligation to transfer goods or services to a buyer in return for
consideration received by the Company from the buyer. The Company recognises obligations under
contracts with buyers in respect of volume discounts granted. Contractual obligations are recognised
as revenue when the Company has fulfilled its performance obligation under the contract.
Other sales revenue
Revenue and other operating income are recognised when the service is rendered and the buyer has
obtained control of the goods or services in accordance with IFRS 15.
Other operating income arises on the disposal of intangible assets and tangible fixed assets as the
excess of their sale value over their carrying amount and on the occurrence of other unusual items. It
is recognised in the amounts actually incurred.
Financial revenue
They include interest income on investments, dividend income, gains on disposal of available-for-sale
financial assets, foreign exchange gains and gains on hedging instruments recognised in the income
statement. Interest income is recognised when earned using the effective interest method. Dividend
income is recognised in the income statement when the right to receive payment is established.
Q. EXPENDITURE
Expenditure is recognised to the extent that a decrease in economic benefits during the period is
associated with a decrease in an asset or an increase in a debt and that decrease can be measured
reliably.
Operating expenses are recognised when the material is consumed or the service rendered, in the
period to which they relate. The normal valuation of stocks of products and work in progress at
production cost takes into account operating expenses consisting of production costs that are no
longer retained in those stocks, as well as purchase and selling costs and general operating expenses
accrued during the accounting period. The transfer of costs from stocks of products and work in
progress to quantities sold and the transfer of the cost of merchandise and supplies to quantities sold
are made using the constant (estimated, standard) price method, taking into account the
proportionate share of variances.
Operating expenses are equal to the costs accrued during the accounting period, plus the costs
retained in opening stocks of products and work in progress, less the costs retained in closing stocks
of products and work in progress, valued at production cost.

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Operating expenses are increased by the cost of goods and materials sold. Service costs relate mainly
to costs incurred for maintenance of assets, transport services, services of intermediaries in the sale
of products, advertising (sponsorship) costs, research costs and costs of intellectual services.
Impairment charges within operating expenses arise in respect of tangible fixed assets, intangible
assets and working capital due to their impairment. Other expenses consist of unusual items which are
stated at the amounts actually incurred.
Financial expenses comprise interest expense on borrowings, foreign exchange losses and impairment
losses on financial assets recognised in the income statement. Borrowing costs are recognised in the
income statement using the effective interest method.
R. TAXATION (income tax)
Income tax for the year comprises both current and deferred tax. Income tax is recognised in the
income statement except to the extent that it relates to items recognised directly in equity. Taxable
profit differs from net profit reported in the income statement because it excludes items of income or
expense that are taxable or deductible in other years and items that are never taxable or deductible.
The tax assessed is the tax expected to be paid on the taxable profit for the financial year using tax
rates enacted or substantively enacted at the reporting date.
Deferred tax is accounted for using the liability method in the statement of financial position, taking
into account temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes, and amounts for tax reporting purposes. Deferred tax is provided at the amount
expected to be payable when the temporary differences reverse, based on laws enacted or
substantively enacted at the reporting date.
Deferred tax liabilities are recognised in full using the liability method of the statement of financial
position for temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the Company's separate financial statements. Deferred tax is provided using tax
rates (and laws) that are expected to apply when the deferred tax liability is settled. Deferred tax is
also not recognised for taxable temporary differences on initial recognition of investments. The
amount of deferred tax is based on the expected manner of recovery or settlement of the carrying
amounts of assets and liabilities using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if there is a legal right to set off tax assets and
income tax liabilities.
A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be
available against which the deferred tax asset can be utilised in the future. Deferred tax assets are
reduced by the amount for which it is no longer probable that the tax benefit associated with the asset
will be available.
S. REPORTING BY SEGMENT
A segment is an identifiable component of a company that is engaged in specific products or services
(an operating segment) or in products and services in a specific, geographically defined economic
environment (an area segment); these are differentiated by their risks and rewards. Segment
information is presented by the Company's geographical and business segments. The Company's

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segment reporting is based on its geographical segments, which are also supported by the Company's
corporate governance and internal reporting system.
The Company's geographical segments are Slovenia, the European Union, third countries and the
markets of the former Yugoslavia. The Company's business segments are Titanium Dioxide, Zinc
Processing, Varnishes, Masters and Inks, Agro Programme and Others. Segment information is
presented in the Revenue from contracts with buyers segment in the Accounting part of the report.
Segment profit/loss is reported as the difference between operating income and expenses, taking into
account those revenues and expenses that are directly attributable to each segment, excluding
revaluation income and expenses that cannot be allocated to the segment in a meaningful way. Smaller
operating segments are aggregated into one category because they are insignificant and detailed
disclosures could cause significant harm to the Company.
T. EARNINGS PER SHARE
Cinkarna Celje d.d. reports basic earnings per share, which is calculated by dividing the profit/loss
attributable to ordinary shareholders by the number of ordinary shares in issue during the financial
year. Diluted earnings per share is equal to basic earnings because all Cinkarna Celje shares belong to
the same class of ordinary registered bulk shares.
U. FINANCIAL RISK MANAGEMENT IN THE USE OF FINANCIAL INSTRUMENTS
Cinkarna Celje d.d. uses various instruments to manage financial risks in its use of financial instruments
to manage credit, liquidity, market, currency and operational risks, which are described in more detail
in Note VI Financial Instruments and Financial Risks.

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IV. REPORTING BY SEGMENT
Cinkarna Celje d.d. reports revenue from contracts with buyers by geographically defined segments
and sales programmes. Revenue from contracts with buyers is reported by geographical location of
the buyers and by sales programme. The Company monitors the following segments in the preparation
and presentation of the income statement and revenue from contracts with buyers:
‒ Titanium dioxide, comprising the sale of titanium dioxide pigment;
‒ Zinc processing, comprising sales of metallurgical products;
‒ Paints, varnishes, mastics and printing inks;
‒ Agro programme, comprising sales of copper fungicides and Humovit;
‒ Other, comprising sales of CEGIPS, sulphuric acid, polymers, service activities, holiday
accommodation, etc.
Sales by business segment
In EUR
2022
2021
Titanium dioxide
187,495,664
156,788,783
Zinc processing
8,240,209
6,364,355
Paints, varnishes, mastics and printing inks
18,516,808
17,687,588
Agro programme
8,399,825
7,990,692
Other
4,500,610
3,630,682
TOTAL
227,153,116
192,462,100
Sales by geographical segment
In EUR
2022
2021
Slovenia
18,781,919
17,355,361
European Union
173,950,706
142,500,353
Market of the former Yugoslavia
4,959,791
4,383,469
Third countries
27,117,372
24,693,293
Third countries – dollar market
2,343,328
3,529,624
TOTAL
227,153,116
192,462,100

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Operating profit by business segment
The Company also monitors segment results by sales programme, which are regularly reviewed and
used to inform decisions on the future performance of the individual programme. The Company
monitors operating profit by segment. However, the Company monitors financial result, income tax,
deferred tax assets and net profit or loss at the level of the Company as a whole, and the Company's
statement of financial position is monitored only at the company level.
In EUR
Titanium dioxide - pigments
Zinc processing
Varnishes, mastics, inks
Agro programme
Other
Total
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
Revenue
from contr.
with buyers
156,788,783
187,495,664
6,364,355
8,240,209
17,687,588
18,516,808
7,990,692
8,399,825
3,630,681
4,500,610
192,462,100
227,153,116
Other
operating
income
1,152,824
7,297,949
2,058
7,467
20,812
34,273
30,340
21,777
3,931,503
2,830,810
5,137,537
10,192,276
Change in
value of
stocks
–709,213
13,624,957
55,962
45,758
–76,227
767,982
275,758
–494,589
–10,125
169,815
–463,845
14,113,923
Operating
costs
–117,981,010
–155,281,120
–6,259,407
–8,112,153
–15,351,019
–16,451,077
–8,338,342
–7,864,834
–9,229,407
–10,574,488
–157,159,184
–198,283,672
-of which
depreciation
–6,142,369
–7,367,314
–95,229
–79,813
–479,852
–395,688
–330,947
–292,084
–4,233,017
–4,015,785
–11,281,415
–12,150,684
Operating
result
39,251,384
53,137,450
162,969
181,281
2,281,154
2,867,986
17,172
62,179
–1,736,071
–3,073,253
39,976,608
53,175,643
Interest
income
12,284
20,235
Other
financial
income
13,915
16,025
Interest
expense
–4,189
–2,714
Other
financial
expenses
–42,113
–493,615
Financial
result
0
0
0
0
0
0
0
0
0
0
–20,103
–460,069
Deferred
taxes
276,914
–529,510
Income tax
–7,006,296
–8,789,599
Net profit
0
0
0
0
0
0
0
0
0
0
33,227,124
43,396,465

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V. NOTES
1 Intangible assets
In EUR
Group of intangible
assets for 2022
Acquisition value
Value adjustment
Undepreciated value
31/12/2022
31/12/2021
31/12/2022
31/12/2021
31/12/2022
31/12/2021
Property rights
5,845,554
5,633,593
4,907,487
4,744,346
938,067
889,248
Assets under
acquisition
270,158
91,424
0
0
270,158
91,424
TOTAL
6,115,711
5,725,018
4,907,487
4,744,346
1,208,224
980,672
In EUR
Group of intangible
assets for 2021
Acquisition value
Value adjustment
Undepreciated value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Property rights
5,633,593
5,537,658
4,744,346
4,519,833
889,248
1,017,825
Assets under
acquisition
91,424
17,646
0
0
91,424
17,646
TOTAL
5,725,018
5,555,304
4,744,346
4,519,833
980,672
1,035,471
Intangible assets have finite useful lives. The Company has reviewed their values and determined that
their present value does not exceed their recoverable amount. In 2022, the Company invested in long-
term property rights from investments in software and project documentation. The decreases in
intangible assets relate to amortisation and write-off of other intangible assets.
67% of the total intangible assets in use at 31 December 2022 were fully amortised (81% at 31
December 2021). The percentage is calculated based on the cost of the intangible assets.
No intangible assets are pledged as guarantees for liabilities as at 31 December 2022 and 31 December
2021. The Company also has no commitments under contracts for the purchase of intangible assets.

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Movements in intangible assets
In EUR
2022
Property rights
Assets under
acquisition
TOTAL
ACQUISITION VALUE
Situation at 31 Dec 2021
5,633,593
91,424
5,725,017
Increases
0
436,676
436,676
Transfer from assets under
acquisition
257,942
–257,942
0
Situation at 31 Dec 2022
5,891,535
270,157
6,161,693
VALUE ADJUSTMENT
Situation at 31 Dec 2021
4,744,345
0
4,744,345
Current year depreciation
209,124
0
209,124
Situation at 31 Dec 2022
4,953,469
0
4,953,469
UNDEPRECIATED VALUE
Situation at 31 Dec 2021
889,248
91,424
980,672
Situation at 31 Dec 2022
938,066
270,157
1,208,224
In EUR
2021
Property rights
Assets under acquisition
TOTAL
ACQUISITION VALUE
Situation at 31 Dec 2020
5,537,658
17,646
5,555,304
Increases
0
169,713
169,713
Transfer from assets under
acquisition
95,935
–95,935
0
Situation at 31 Dec 2021
5,633,593
91,424
5,725,017
VALUE ADJUSTMENT
Situation at 31 Dec 2020
4,519,832
0
4,519,832
Current year depreciation
224,513
0
224,513
Situation at 31 Dec 2021
4,744,345
0
4,744,345
UNDEPRECIATED VALUE
Situation at 31 Dec 2020
1,017,826
17,646
1,035,471
Situation at 31 Dec 2021
889,248
91,424
980,672
Part of the non-current assets relate to easements with definitive useful lives, which are recorded
under Land.
2 Tangible fixed assets
In EUR
Group of tangible
fixed assets for
Acquisition value
Value adjustment
Undepreciated value
2022
31/12/2022
31/12/2021
31/12/2022
31/12/2021
31/12/2022
31/12/2021
Land
10,803,263
10,803,263
1,198,754
1,126,413
9,604,509
9,676,850
Buildings
128,674,115
126,487,363
87,057,629
84,187,165
41,616,487
42,300,197
Equipment
225,138,242
227,909,652
183,644,286
183,515,529
41,493,957
44,394,123
Assets under
acquisition
10,276,338
9,172,421
0
0
10,276,338
9,172,421
Advances
1,091,727
352,537
0
0
1,091,727
352,537
TOTAL
375,983,686
374,725,236
271,900,668
268,829,107
104,083,017
105,896,130

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In EUR
Group of
tangible fixed
assets for
2021
Acquisition value
Value adjustment
Undepreciated value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Land
10,803,263
10,803,263
1,126,413
1,054,071
9,676,850
9,749,192
Buildings
126,487,363
124,538,191
84,187,165
81,177,713
42,300,197
43,360,477
Equipment
227,909,652
221,895,740
183,515,529
179,915,685
44,394,123
41,980,055
Assets under
acquisition
9,172,421
10,492,059
0
0
9,172,421
10,492,059
Advances
352,537
821,380
0
4,158
352,537
817,222
TOTAL
374,725,236
368,550,632
268,829,107
262,151,627
105,896,130
106,399,005
The Company does not have any assets under finance leases and, as at 31 December 2022 and 31
December 2021, the Company does not have any assets pledged as collateral for any guarantees.
Movements in property, plant and equipment
In EUR
2022
Land
Buildings
Production and
other equipment
TOTAL
Assets under
acquisition
Advances
TOTAL
ACQUISITION
VALUE
Situation at 31 Dec
2021
10,803,263
126,487,363
227,909,652
365,200,278
9,172,421
352,537
374,725,236
Increases
0
0
0
0
9,532,635
1,199,362
10,731,997
Transfer from ass.
under acquisition
0
2,230,260
6,198,459
8,428,719
–8,428,719
0
0
Decreases
0
43,507
8,969,869
8,969,869
0
460,172
9,430,041
Situation at 31 Dec
2022
10,803,263
128,674,115
225,138,243
364,615,621
10,276,338
1,091,726
375,983,685
VALUE
ADJUSTMENT
Situation at 31 Dec
2021
1,126,413
84,187,166
183,515,529
268,829,108
0
0
268,829,108
Depreciation
72,342
3,271,577
8,597,642
11,941,561
0
0
11,941,561
Decreases
0
41,539
8,468,885
8,510,425
0
0
8,510,425
Increases
0
359,575
0
359,575
0
0
359,575
Situation at 31 Dec
2022
1,198,755
87,057,628
183,644,286
271,900,668
0
0
271,900,668
UNDEPRECIATED
VALUE
Situation at 31 Dec
2021
9,676,850
42,300,197
44,394,123
96,371,170
9,172,421
352,537
105,896,129
Situation at 31 Dec
2022
9,604,509
41,616,487
41,493,957
92,714,953
10,276,338
1,091,726
104,083,017
As at 31 December 2022, the Company has performed an impairment test of its non-current assets in
accordance with IAS 16 and has therefore had the assets valued by a certified business valuator. The
valuation (value in use for financial reporting purposes) shows that the assets are not overvalued due
to the inflationary environment and the general deterioration in the Company's macroeconomic
conditions and their valuation value exceeds their carrying amount.
The impairment test of the non-current assets of the cash-generating unit of Cinkarna Celje d.d. was
performed due to indications that the asset might be impaired due to the impact of inflation on the

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economic environment and the general deterioration of the economic conditions. In the fourth quarter
of 2022, the Company faced a decline in sales prices and volumes on the market of the carrier product
titanium dioxide, it was confronted with a reduced demand for the carrier product and, at the same
time, with the intrusion of Chinese pigment. Nevertheless, Cinkarna Celje closed the 2022 financial
year with excellent results and achieved above-average profits in recent years.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For the purpose of the impairment test, the recoverable amount of the cash-generating unit was
determined on the basis of a value-in-use calculation, i.e. using cash flow projections based on the
cash-generating unit's five-year financial plans, which assume a gradual normalisation of the situation.
The projection uses a discount factor of 10.26 % (2023-2027) and an annual long-term growth rate of
the residual cash flow of 2.6 %. In management's assessment, a reasonable change in the discount rate
or growth rate would not result in an impairment of the assets held by the cash-generating unit. Based
on the above assumptions, the calculated estimate of the value of the assets of the cash-generating
unit Cinkarna Celje exceeds the carrying amount and therefore no impairment of the cash-generating
unit is required.
In the value assessment, the impact of a change in the key parameters discount rate, NOPLAT, CAPEX
and long-term growth rate on the value of the total capital of the company being valued was tested in
a simulation. The impact of these changes is shown below: a change in the discount rate of +/-0.5%, a
change in the long-term growth rate of +/-1%, a change in the NOPLAT of +/-5% and a change in the
CAPEX. In view of these changes and the impact on the change in the estimated value, none of the
changes would imply that the assets would need to be impaired.
Sensitivity analysis of the main variables
Change in the discount rate
Difference in % of estimated value
Increase by
0.5%
-10%
Decrease by
0.5%
11%
Change in the long-term growth rate
Increase by
1.0%
7%
Decrease by
1.0%
-5%
Change in profitability
Increase in NOPLAT by
5.0%
9%
Decrease in NOPLAT by
5.0%
-9%
Change in investments
Increase in CAPEX by
5.0%
-12%
Decrease in CAPEX by
5.0%
12%
Upper limit
9.6%
Lower limit
-9.0%
In 2022, the Company recognised a decrease in tangible fixed assets as a result of the difference
between the value of the invested assets and the accumulated depreciation. In 2022, the Company
invested EUR 10 million (EUR 11.2 million in 2021) in the modernisation of production equipment and
EUR 10 million (EUR 11.2 million in 2021) in replacement equipment, mainly in the titanium dioxide
field, the most significant of which are as follows: Installation of solar power plants (EUR 0.7 million),
installation of a third sand mill (EUR 0.7 million), elimination of dust sources (EUR 0.5 million), C-line
neutralisation second stage (EUR 0.5 million), upgrade of the calcination plant (EUR 0.2 million),
upgrade of the storm water drainage system with oil traps (EUR 0.2 million), installation of an extra-
light fuel oil management system (EUR 0.2 million), etc.

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As at 31 December 2022, the Company owns EUR 10.5 million of ongoing investments, mainly related
to the maintenance and modernisation of the titanium dioxide production, the key ones being:
modernisation of the calcination plant (EUR 1.8 million), replacement of the sulphur combustion
furnace (EUR 1.6 million), elimination of dust sources (EUR 0.7 million), installation of a third sand mill
(EUR 0.7 million), and others.
In EUR
2021
Land
Buildings
Production
and
other
equipment
TOTAL
Assets under
acquisition
Advances
TOTAL
ACQUISITION VALUE
Situation at 31 Dec
2020
10,803,263
124,538,191
221,895,740
357,237,194
10,492,059
821,379
368,550,632
Increases
0
0
0
0
11,155,694
410,018
11,565,713
Transfer from ass.
under acquisition
0
1,949,172
9,421,240
11,370,412
–12,475,332
0
–1,104,920
Decreases
0
0
3,407,328
3,407,328
0
878,861
4,286,189
Situation at 31 Dec
2021
10,803,263
126,487,363
227,909,652
365,200,278
9,172,421
352,537
374,725,236
VALUE ADJUSTMENT
Situation at 31 Dec
2020
1,054,071
81,177,714
179,915,685
262,147,470
0
4,157
262,151,627
Depreciation
72,342
3,203,086
7,781,475
11,056,902
0
0
11,056,902
Decreases
0
193,634
4,181,631
4,375,264
0
4,157
4,379,421
Situation at 31 Dec
2021
1,126,413
84,187,166
183,515,529
268,829,108
0
0
268,829,108
UNDEPRECIATED
VALUE
Situation at 31 Dec
2020
9,749,192
43,360,477
41,980,055
95,089,725
10,492,059
817,222
106,399,006
Situation at 31 Dec
2021
9,676,850
42,300,197
44,394,123
96,371,170
9,172,421
352,537
105,896,129
Also included in tangible fixed assets is a reported increase in the cost of assets of EUR 2,026,125 (EUR
3,263,831 in 2021) from capitalised own products and services, where the Company capitalises its own
maintenance services and consumables for maintenance. Within this, materials, labour and purchase
of other assets were required to realise the capitalised own effects and are recorded in detail per
individual existing fixed assets that were either repaired or renewed during the year and during the
annual overhaul in the last quarter of 2022. Key investments within the in-house maintenance team
were: Installation of a third sand mill (EUR 0.1 million), C-line neutralisation second stage (EUR 0.2
million), upgrade of the calcination plant (EUR 0.1 million), installation of an extra light fuel oil
management system, etc., the remaining difference in the value of the works to the total was due to
the rehabilitation of individual existing assets; the intervention works carried out increased either the
efficiency or the service life of these assets – these are important for the ongoing provision of the
production process of the carrier product.
The land also includes easements amounting to EUR 262,020 (EUR 334,362 in 2021). The easements,
with a final useful life of 20 years or more, relate to the laying and maintenance of pipelines, cables
and water mains, and to the need to carry out wet-to-dry gypsum filling works. There was no increase
in the cost of land in 2022, the decrease in land relates to the depreciation charged on the easements
for the financial year 2022 in the amount of EUR 72,342.

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No borrowing costs were attributed to property, plant and equipment in 2022. 73% of the total
property, plant and equipment in use as at 31 December 2022 was fully depreciated (31 December
2021 – 71%). The percentage is calculated based on the cost of the property, plant and equipment,
excluding land.
As at 31 December 2022, the Company has outstanding commitments for the purchase of tangible
fixed assets for EUR 1,660,953 (31 December 2021 – EUR 1,699,831).
3 Financial assets at fair value through other comprehensive income
The Company carries investments in shares of Elektro Celje and Elektro Maribor as financial assets at
fair value through other comprehensive income for the purpose of enjoying cash flows from dividends
received and sales of securities. Both equity securities are quoted on the multilateral trading facility
(MFT) SI ENTER (https://sienter.si), which is operated by the Ljubljana Stock Exchange. Based on the
quotation of both equity securities on 31 December 2022, it can be concluded that both securities have
a known market price, which is not indicative of the fair value of these investments, as the shares have
a very low turnover.
The Company reviewed the fair value of the assets and measured the financial assets at fair value
through other comprehensive income. The financial assets were increased by EUR 322 thousand (31
December 2021 – impairment of EUR 104 thousand) from the fair value revaluation to the fair value
reserve. Dividends received in 2022 amounted to EUR 16,025 (31 December 2021 – EUR 13,915).
In EUR
Group of non-current
financial investments
for 2022
Acquisition value
Revaluation
Fair value
31/12/2022
31/12/2021
31/12/2022
31/12/2021
31/12/2022
31/12/2021
Other investments
2,077,692
1,755,026
103,927
103,297
1,973,765
1,651,099
Total
2,077,692
1,755,026
103,927
103,927
1,973,765
1,651,099
The members of the Management Board and Supervisory Board have not received any long-term
loans. Cinkarna Celje d.d. has no other subsidiaries or associates and does not deal with any related
parties.
Movements in non-current financial investments
In EUR
2022
Other financial investments
ACQUISITION VALUE
Situation at 31 Dec 2021
1,755,026
Increases during the year
322,667
Situation at 31 Dec 2022
2,077,692
REVALUATION
Situation at 31 Dec 2021
103,927
Situation at 31 Dec 2022
103,927
FAIR VALUE
Situation at 31 Dec 2021
1,651,099
Situation at 31 Dec 2022
1,973,765

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In EUR
2021
Other financial investments
ACQUISITION VALUE
Situation at 31 Dec 2020
1,755,026
Situation at 31 Dec 2021
1,755,026
REVALUATION
Situation at 31 Dec 2020
0
Increases during the year
103,927
Situation at 31 Dec 2021
103,927
FAIR VALUE
Situation at 31 Dec 2020
1,755,026
Situation at 31 Dec 2021
1,651,099
4 Other non-current assets
In EUR
Group of intangible assets
for 2022
Acquisition value
Revaluation
Undepreciated value
31/12/2022
31/12/2021
31/12/2022
31/12/2021
31/12/2022
31/12/2021
Other intangible assets
68,049
53,028
0
0
68,049
53,028
Total
68,049
53,028
0
0
68,049
53,028
In EUR
Group of other non-
current assets for 2021
Acquisition value
Revaluation
Undepreciated value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Emission allowances
53,028
25,629
0
0
53,028
25,629
Total
53,028
25,629
0
0
53,028
25,629
Other assets comprise emission allowances, securities and other non-current assets. Other intangible
assets include emission allowances acquired free of charge from the State, which are valued at EUR 1.
In 2022, the Company acquired 40,397 allowances (all allowances acquired free of charge from the
State in accordance with ZVO-1). In Q1 2021, the Company sold 13,000 allowances, in 2022 there were
no sales of allowances. The impact of the sale of allowances in 2021, amounting to EUR 0.4 million, is
recorded in other operating income (Note 21).
The Company still owns the remainder of the allowances amounting to 68,049. The market (fair) value
of one allowance as at 31 December 2022 is EUR 79.70 per allowance (https://belektron.eu/sl/novice),
representing a value of EUR 5,423,505. The Company will submit a part of these allowances (24,017)
to the Ministry for CO2 emissions in April 2023, while the remainder represents the surplus of the
allowances (Cinkarna Celje d.d. is a net recipient of the allowances).

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5 Deferred tax assets and liabilities
In EUR
Description
Receivables
Payables
2022
2021
2022
2021
Situation at 1 January
1,950,431
1,673,517
19,746
0
Increase during the year
322,650
410,663
174,700
19,746
Decrease during the year
852,160
133,748
0
0
Total
1,420,921
1,950,431
194,446
19,746
Offsetting
–194,446
–19,746
–194,446
–19,746
Situation at 31 December
1,226,475
1,930,685
0
0
The decrease in deferred tax assets relates to the utilisation of provisions for: jubilee bonuses and
severance payments, environmental and other provisions amounting to EUR 738,232, and the reversal
of valuation allowances on receivables amounting to EUR 113,928. The increase in deferred tax assets
relates to half of the provision made for environmental purposes amounting to EUR 322,365 and the
valuation allowance on receivables amounting to EUR 285. No deferred tax assets were created for
jubilee bonuses and retirement gratuities in 2022 as their creation is fully tax recognised in 2022. As at
31 December 2022, the Company accrued deferred tax liabilities of EUR 174,700 on investments held
or carried at fair value (EUR 19,746 deferred tax liabilities on impairment of investments as at 31
December 2021). The Company tested the recoverability of the deferred taxes by reference to a
projection of expected taxable profits for the period 2023 to 2027.
Changes in the balance of deferred tax assets had a negative impact on the income statement of EUR
529,510. The balance of deferred tax assets as at 31 December is as follows.
In EUR
31/12/2022
31/12/2021
Provisions for environmental purposes
1,130,587
1,491,515
Provisions for post-employment and other long-term
benefits
290,049
367,967
Receivables
285
90,948
Total
1,420,921
1,950,431
Liabilities for financial assets at fair value through
other comprehensive income
–194,446
–19,746
Total deferred tax assets
1,226,475
1,930,685
6 Stocks
In EUR
Group of stocks
31/12/2022
31/12/2021
Realisable value
Materials
45,206,025
26,842,350
45,206,025
Work in progress
3,266,936
2,471,875
3,266,936
Products
24,187,102
10,868,240
36,883,181
Merchandise
29,786
52,992
29,786
Advances made
64,974
63,018
64,974
Total
72,754,823
40,298,476
85,450,902
In the financial year 2022, an additional write-down of EUR 332,443 (EUR 386,724 in 2021) was made
to the value of inventories of materials and supplies due to the revaluation to net realisable value,

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obsolescence and unserviceability of inventories of materials and spare parts. There were no
significant stock differences identified in 2022 or the previous year.
The valuation allowance for obsolescence and unusability of work-in-progress and finished goods
stocks amounted to EUR 1,443 in the current year (EUR 16,094 in 2021) and the reversal of the
valuation allowance for non-moving inventories amounted to EUR 33,018 in 2022. There were no
shortages or overages identified in 2022 (in 2021, shortages of EUR 3,018 were identified). The value
of finished goods and work in progress stocks increased by 105% compared to 2021 due to lower sales
of titanium dioxide pigment in the fourth quarter of 2022. No guarantees are pledged on stocks. The
net realisable value of stocks as at 31 December 2022 is determined by their sales value less costs to
sell and exceeds their carrying amount.
7 Current financial investments
As at the balance sheet date of 31 December 2022, the Company has no financial investments.
8 Current trade receivables
In EUR
Group of current trade receivables
31/12/2022
31/12/2021
Trade receivables
22,087,040
29,148,099
Other receivables
2,203,503
2,024,804
Total
24,290,543
31,172,903
Current trade receivables
In EUR
Group of current
trade receivables for
2022
Value of receivables
Value adjustment
Net receivables
31/12/2022
31/12/2021
31/12/2022
31/12/2021
31/12/2022
31/12/2021
Buyers in the country
2,947,578
4,063,142
266,985
267,017
2,680,593
3,796,125
Buyers abroad
19,407,517
24,868,008
371,794
381,437
19,035,723
24,486,571
Indirect exporters
368,044
865,403
0
0
368,044
865,403
Receivables on
foreign account
2,681
0
0
0
2,681
0
Total
22,725,820
29,796,553
638,780
648,454
22,087,040
29,148,099
The Company's receivables from buyers are secured with an external institution as of 1 June 2021 and
are not given as guarantees for liabilities. The amount of unsecured receivables as at 31 December
2022 and 31 December 2021 is EUR 465,565 and EUR 658,688, respectively.
In EUR
Group of current
trade receivables for
2021
Value of receivables
Value adjustment
Net receivables
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Buyers in the country
4,063,142
3,730,884
267,017
367,302
3,796,125
3,363,582
Buyers abroad
24,868,008
21,012,811
381,437
360,960
24,486,571
20,651,851
Indirect exporters
865,403
718,749
0
0
865,403
718,749
Total
29,796,553
25,462,444
648,454
728,262
29,148,099
24,734,182

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181
Other trade receivables
In EUR
Group of other receivables
31/12/2022
31/12/2021
VAT receivable
1,984,953
1,789,384
Receivables from State institutions
167,293
186,642
Receivables from employees
23,060
26,027
Other receivables
28,197
22,751
Total
2,203,503
2,024,804
The Company has no receivables from members of the Management Board and Supervisory Board.
9 Cash and cash equivalents
In EUR
Group of assets
31/12/2022
31/12/2021
Cash in hand
30
30
Cash in accounts
24,210,068
53,622,153
Short-term deposits at call
21,000,000
6,124,412
Total
45,210,098
59,746,594
Cash is invested with domestic banks and bears interest at a fixed annual rate.
10 Other current assets
In EUR
Description
31/12/2022
31/12/2021
Prepaid expenses
100,859
153,862
VAT on advances received
32,150
1,362
Total
133,009
155,223
11 Capital
In EUR
Capital items
31/12/2022
31/12/2021
Called-up capital
20,229,770
20,229,770
Capital reserves
44,284,976
44,284,976
Statutory reserves
16,931,435
16,931,435
Reserves for own shares
4,814,764
4,814,764
Own (treasury) shares
–4,814,764
–4,814,764
Other profit reserves
103,358,966
84,892,734
Fair value reserve
–809,390
–1,179,701
Retained earnings
25,014,391
25,006,577
Total capital
209,010,148
190,165,790
The Company's share capital consists of 8,079,770 freely transferable bulk shares of the same class.
All of the ordinary shares have the same nominal value and are fully paid up. As at the balance sheet
date of 31 December 2022, the value of the called-up capital amounts to EUR 20,229,770.

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The capital reserves may be used under the conditions and for the purposes laid down by law and
amount to EUR 44,284,976 as at 31 December 2022. They were created by a special regulation in the
course of the ownership transformation of Cinkarna Celje and did not change in 2022 compared to
2021.
The statutory reserves as at 31 December 2022 amount to EUR 16,931,435 and did not change in 2022.
As at 31 December 2022, the Company holds 264,650 treasury shares (264,650 shares as at 31
December 2021) following the share split of 15 August 2022 in a ratio of 1:10. The Company did not
acquire any treasury shares in 2022.
The reserves for own shares as at 31 December 2022, similar to the last day of the previous year,
amount to EUR 4,814,764.
Other profit reserves increased in 2022 on account of a transfer of current profits to reserves of EUR
18,466,232 and amount to EUR 103,358,966 as at 31 December 2022.
Fair value reserve
The fair value reserve includes the cost of remeasuring post-employment benefits (actuarial
gains/losses) arising from the change in the present value of the retirement benefit obligation and the
change in the fair value of financial assets.
In EUR
2022
31/12/2021
Increase
Decrease
31/12/2022
Change in reserves arising from the
fair value measurement of
investments
702,013
322,666
0
1,024,679
Adjustment to deferred tax surplus
–19,746
–174,700
0
–194,446
Unrealised actuarial gains/losses
–1,861,968
222,345
0
–1,639,623
Total
–1,179,701
370,311
0
–809,390
The fair value reserve comprises the cumulative change in the fair value of financial assets and post-
employment benefits. The fair value reserve increased by EUR 222,345 from 2021 due to the
restatement of post-employment benefits and EUR 322,666 due to the change in fair value of financial
assets, and decreased by deferred tax liabilities of EUR 174,700 to EUR -809,390 at the end of 2022.
In EUR
2021
31/12/2020
Increase
Decrease
31/12/2021
Change in reserves arising from the
fair value measurement of
investments
805,940
0
103,927
702,013
Adjustment to deferred tax surplus
0
–19,746
0
–19,746
Unrealised actuarial gains/losses
–1,453,752
0
408,216
–1,861,968
Total
–647,812
–19,746
512,413
–1,179,701
Retained earnings

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183
Retained earnings were increased by the current year's profit of EUR 21,782,391 and decreased by the
use of the balance-sheet profit for the payment of dividends, following the decision of the Company's
General Meeting of Shareholders on 15 June 2022 to vote on a proposal for the use of the 2022
balance-sheet profit of EUR 25,006,577. In accordance with the adopted proposal, a part of the
balance-sheet profit amounting to EUR 24,922,418 (EUR 3.19 per share) was paid out in the form of
dividends. The remainder, i.e. EUR 84,159, was not distributed and remained as retained earnings.
Dividend per share
The gross dividend per share paid was EUR 3.19 in 2022 and EUR 2.1 in 2021.
Basic and diluted earnings per share
Items
31/12/2022
31/12/2021
(a) Net profit for the year
43,396,465
33,227,124
(b) Number of shares
8,079,770
8,079,770
(c) Basic earnings per share (a/b)
5.37
4.11
(d) Diluted earnings per share (a/b)
5.37
5.37
Determination of balance sheet profit
In EUR
31/12/2022
31/12/2021
Mandatory use of profits
Net profit
43,396,465
33,227,124
Coverage of losses carried forward
0
0
Creation of statutory reserves
0
0
Profit after statutory application
43,396,465
33,227,124
Other reserves as decided by the Management Board
–18,466,232
–8,306,781
Residual profit
24,930,232
24,920,343
Determination of balance sheet profit
Residual profit
24,930,232
24,920,343
Profit carried forward
84,159
86,234
Balance sheet profit
25,014,391
25,006,577
12 Provisions for employee benefits
The Company recognises a provision for gratuities and retirement benefits made in accordance with
the requirements of IAS 19 as amended. The actuarial calculation is made using the book-entry method
and was performed by an external certified actuary. The assumptions used were: Company salary
growth of 4.7% (2.5% in 2021), a discount rate of 4.41% per annum (0.95% in 2021), retirement
conditions, mortality tables 2000-2002 and turnover of the Company's workforce in 2022 (the
assumptions used in 2022 are the same as those used in 2021).
In EUR
Post-employment benefits of employees for 2022
31/12/2022
31/12/2021
Provisions for severance payments
3,204,640
3,693,949
Provisions for jubilee awards
447,056
562,115

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Financial report
184
Total
3,651,696
4,256,064
In EUR
Post-employment
benefits of employees for
2022
31/12/2021
Formation
Intended use
Release
31/12/2022
Provisions for severance
payments
3,693,949
164,358
367,568
286,099
3,204,640
Provisions for jubilee
awards
562,115
51,467
13,203
153,323
447,056
Total
4,256,064
215,825
380,771
439,422
3,651,696
In EUR
Post-employment benefits of employees
2022
2021
Situation at 1 January
4,256,064
3,984,428
Ongoing service costs
179,825
169,236
Interest expenses
36,000
16,443
Utilisation of provisions for benefits
-158,426
-225,023
Staff departures (termination)
-314,273
-124,892
Actuarial deficit/surplus
-347,494
435,872
Situation at 31 December
3,651,696
4,256,064
In EUR
Post-employment
benefits of employees
for 2021
31/12/2020
Formation
Intended use
Release
31/12/2021
Provisions for severance
payments
3,443,816
546,512
184,866
111,513
3,693,949
Provisions for jubilee
awards
540,612
75,039
40,157
13,379
562,115
Total
3,984,428
621,551
225,023
124,892
4,256,064
Sensitivity analysis
In EUR
Sensitivity analysis 31 Dec 2022
Discount rate
Wage growth
Change in
percent
percent
Change by
+0.5
–0.5
+0.5
–0.5
Impact on the balance of liabilities
–124,376
–134,323
133,461
–124,797

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Financial report
185
In EUR
Sensitivity analysis 31 Dec 2021
Discount rate
Wage growth
Change in
percent
percent
Change by
+0.5
–0.5
+0.5
–0.5
Impact on the balance of liabilities
–167,295
–181,585
177,821
–165,640
13 Other provisions
Other provisions as at 31 December 2022 represent environmental provisions.
Movement in provisions
In EUR
Provisions
2022
31/12/2021
Formation
Intended use
Release
31/12/2022
Environmental
provisions
18,801,189
3,393,320
999,609
6,377,932
14,816,968
Total
18,801,189
3,393,320
999,609
6,377,932
14,816,968
In EUR
Provisions 2021
31/12/2020
Formation
Intended use
Release
31/12/2021
Provisions for legal actions
242,705
0
242,705
0
0
Accrued expenses
15,692
0
0
15,692
0
Environmental provisions
16,349,530
3,701,214
1,249,555
0
18,801,189
Total
16,607,928
3,701,214
1,491,261
15,692
18,801,189
Environmental provisions
For environmental provisions, the primary consideration is whether there is a legal or other basis for
recognising the provision due to past events, and an assessment of any changes in circumstances in
the current year that may affect the preparation of the accounting estimate. Long-term provisions
were reviewed with the assistance of external experts as at 31 December 2022 in light of general
inflation, price increases, material substitution and new circumstances arising in 2022 for their
release/formation. All the necessary rehabilitation activities were verified, using various spot
measurements of the terrain and the identification of appropriate activities and their evaluation by
external geological specialists. Taking into account inflation (based on consumer price inflation and
UMAR estimates for the 2023-2026 period) as well as the best estimate of the timing of the activities,
which served as the basis for discounting, the provisions were discounted to present value with a
discount factor of 2.28, using the yield of Slovenian bonds maturing at the end of 2025, since the
majority of the works will be carried out in the 2023-2025 period, according to the experts' estimates.
The reasons for maintaining, releasing and further building up the level of the provisions and the
reasons for maintaining the provisions where it is more likely than not that there will be possible
outflows in the future are set out below.
I. The provision for the environmental investment in the field of titanium dioxide production
(change in the method of disposal of neutralisate) was originally created in June 1994 in the

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course of the ownership transformation process. The revalued amount at 31 December 2006
was EUR 8.7 million, representing 47% of the invested assets. The value of the provision is
reduced annually by the same percentage of the value of the accumulated depreciation of the
invested assets. The balance of the reserved assets at the end of 2022 is EUR 2.7 million and
at the end of 2021 EUR 3.1 million.
II. The rehabilitation of the high embankment barrier at the Za Travnikom waste disposal facility
was originally budgeted at €7 million, based on the cost estimate for the rehabilitation of the
barrier at the Bukovžlak non-hazardous waste landfill (ONOB). Following the establishment of
the provision, some urgent measures were carried out in recent past years (dewatering of the
backwaters on the eastern flank - Phase I, construction of a reinforcement embankment on
the second berm of the barrier), and in the following years we mainly expanded and renewed
the network of piezometers for technical observation and drilled some exploratory boreholes.
Based on the results of the observation boreholes, the condition of the barrier body was found
to be better than estimated at the time of the establishment of the provision and there was
no need for additional establishment of the provision at the end of 2021. In 2022, on the basis
of the work carried out by the contractors, we spent EUR 64,949. The surveys carried out and
the regular technical observation at the moment indicate two measures needed: drainage
arrangements on the eastern side of the barrier and reinforcement with drainage on the
western side of the barrier, but these are not critical. Based on a rough estimate of the cost of
the necessary works, we increased the provision by EUR 579,782. This brings the balance of
the provision as at 31 December 2022 to EUR 888,133 and at the end of 2021 to EUR 373,300.
To give a better idea of the reason for the occasional restatement of the long-term provisions,
we provide the following explanations. It is a fact that the barriers at Za Travnikom and
Bukovžlak are constructed as earth barriers, built of different materials, which partly represent
old burdens. They hold back and contain millions of tonnes of material, making removal
physically impossible. The barriers are exposed to natural phenomena (precipitation, drainage,
underground water flows, etc.) and are constantly tending towards entropy. As a diligent and
legally obliged operator, we carry out regular technical observation and all the required
monitoring. We react to the findings by taking the measures deemed necessary by the experts
to prevent the risk of harmful emissions or damage from materialising. Cinkarna has set up a
permanent project team, which, in addition to its own employees, includes experts from the
Chair of Geotechnical Engineering (KGT) at the Faculty of Civil and Geodetic Engineering of the
University of Ljubljana and the design company Hydrosvet d.o.o. The project team meets on a
regular basis to review the agreed work and to discuss any new developments. The expert
findings form the basis for assessing the adequacy of the provisions made.
III. For the rehabilitation of the Bukovžlak non-hazardous waste landfill (ONOB), a long-term
provision of EUR 5 million was originally made in 2011 on the basis of a rough estimate. In
2017, at the time of the project preparation, the need for an additional provision of EUR 1
million became apparent. At that time, the specific implementation technique required was
already known, as were the installation materials. The balance at the end of 2019, after partial
utilisation, was EUR 4.5 million. Investigations into the impact of contamination due to
embedded old burdens (CDM Smith, KGT) showed the need for a sealing curtain on the north-
east side of the ONOB barrier and the rehabilitation of the C1 drainage under the high
embankment of the Bukovžlak barrier. In 2023, the designer was asked to revise the estimate
as at 31 December 2022, covering the necessary additions and subtractions to the
implemented facility, design supervision, geodetic monitoring, necessary measurements and
quality control of the installed materials. At the same time, the timeframe for completion of
all the works was estimated and, accordingly, an adjustment for expected inflation was taken
into account. Together with the drainage facility C1 and the sealing curtain, the amount of
funds still needed for the rehabilitation of ONOB is therefore EUR 8,541,868 (EUR 6,187,523

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at the end of 2021). In view of the estimates of all the works needed, the long-term provision
was further increased by EUR 2,813,531 at the cut-off date of 31 December 2022, and the
expenditure for rehabilitation purposes in 2022 amounted to EUR 459,186 (EUR 6,187,523 at
the end of 2021).
IV. The results of regular technical monitoring of the high Bukovžlak barrier show a trend of
deteriorating safety on the eastern flank of the barrier. As in the case already described in
point II, the earth barrier is reacting to the effects of natural phenomena. In order to avoid a
critical deterioration of the safety situation, the designer foresaw two parallel interventions in
2017 - rehabilitation of the eastern flank and preparation of the embankment to start lowering
the water level in the reservoir. The estimated cost amounted to EUR 3,032,000, for which a
long-term provision was made as at 31 December 2017. In 2022, we spent EUR 48,602. Based
on new findings, the assessment in 2022 and the projects set out accordingly, a way of
lowering the level by lowering the spillway structure is now envisaged with the help of external
experts, which is a cheaper and easier solution than building a dike. This fact was taken into
account by the designer in the revision of the estimate in January 2023. The revision also
included the necessary additions for design supervision, geodetic monitoring, measurements
and quality control of the installed materials. At the same time, the designer has estimated
the timeframes for completion of all works and has taken into account the correction for
projected inflation accordingly. On the basis of this estimate, a provision of EUR 389,757 was
released, leaving a balance of EUR 2,712,809 as at 31 December 2022 (EUR 3,151,168 as at 31
December 2021).
V. Removal of risks due to old burdens at current production sites of Cinkarna Celje: the
contractor of the Assessment of risks to human health and the environment due to old burdens
at current production sites of Cinkarna Celje d.d. foresaw possible remediation measures and
estimated them financially at a total amount of EUR 6.4 million. We made a new provision for
this amount as at 31 December 2017. Based on the new known circumstances as at 31
December 2022, we fully released this provision (EUR 6 million) as there is no longer any
likelihood of future outflows from this provision. In this respect, we provide below the key
reasons for the release of the provision.
The key events in 2022 were the adoption of the judgments of the court of first instance and the higher
court in the case of the plaintiff MOC (Municipality of Celje), the adoption of the ZVO-2 act, and the
unsuccessful legislative process of the Act on the remediation of the historically polluted environment
in the area of the Municipality of Celje in the Celje Basin (ZSOOCK). With regard to the MOC judgment,
while rejecting the MOC's claim based on contractual grounds (the MOC's claim was based on the
handover report), the court at both levels (first instance and appeal) also elaborated on other potential
legal bases for the Company's liability outside the framework, which have not been highlighted or
clarified in the legal and judicial practice so far. The decision in the case of the claimant MOC, in
conjunction with the circumstances set out in the external legal opinion obtained by the Company on
the issue of the provisions made, therefore not only affects the relations in the specific case (inter
partes), but in this context also has legal implications for all similar cases, including the Company's
liability for the land at the current production site. In its judgment, the court decided that "the current
environmental quality standards cannot be applied to environmental pollution before 1970". As the
decision of the court of first instance has been confirmed by the higher court (both judgments were
adopted in 2022), whose judgment is publicly published and has weight in the development of case-
law, it establishes a new basis on which the courts will rely in future decisions as well.

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Given the nature of the burdens on the land for which the provisions were made, the same conclusions
can be drawn with regard to the Company's obligation, which was originally derived from the belief
that there was an obligation to remedy the pollution on the basis of a general liability for damages.
In the above context, it is therefore also relevant (almost in parallel with the court's decision) the
adoption of the ZVO-2 act, the regulation of which is a reasonable adaptation of the regulation of the
ZVO-1 act and therefore does not constitute a change which would disqualify the interpretations of
the court or which are also relevant in the context of the validity/application of the ZVO-2 act.
All the circumstances highlighted have led to the assessment that the probability of the claims for
which the provision was made being substantiated is less than 50% and, as a result, the Company is
releasing the provision.
The Management Board of the Company received sufficient information through the successful action
against MOC for the release of the provision for the elimination of old burden risks at the current
production sites of Cinkarna Celje and also sufficient information regarding the other provisions made,
not only taking into account the environmental aspects, but also sufficient information on the changed
circumstances and the uncertainties related to the assumptions used, where there are still some
uncertainties that may lead to changes in the future in the amounts made, as they are in all cases
subject to an estimation of these uncertainties. The estimates were made with the involvement of
experts in the field. According to the analyses and the experts' opinions, the provisions made are
sufficient, subject to change in the future due to the structure of the land, the consumption of
materials, which may be subject to discounts, or other commitments. At present, there is no need to
change the level of provisions made at 31 December 2022, which we estimate to be more than 50%
likely to result in outflows in the future.
Given that the provisions under items II to V were revised in 2017, reassessed at the end of 2021 and,
as at the end of 2022, reassessed by external experts with regard to the timing of their implementation,
due to the increase in the price of specific services and materials and new circumstances, the
Management Board considers that the level of the provisions is appropriate.
In EUR
Environmental provisions
2022
Situation
at 31 Dec
2021
Intended
use plan
2022
Formation
2022
Utilisation
2022
Removal
2022
Situation
at 31 Dec
2022
Provisions for the Za
Travnikom landfill
373,300
23,000
579,782
64,949
0
888,133
Provisions for the
Bukovžlak landfill (ONOB)
6,187,523
2,110,000
2,813,531
459,186
0
8,541,868
Provision for the
Bukovžlak high
embankment barrier
3,151,168
260,000
0
48,602
389,757
2,712,809
Provision for the removal
of risks from old burdens –
CDM SMITH
5,988,176
10,000
0
0
5,988,176
0
Environmental provision -
Environmental investment
in TiO
2
production
3,101,022
0
7
426,872
0
2,674,157
Total
18,801,189
2,403,000
3,393,320
999,609
6,377,932
14,816,968
The utilisation of the provisions in 2022 is represented by the contractors' costs for the works carried
out amounting to EUR 572,417 and the accrued depreciation of EUR 320, which are directly charged

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to the provisions made (items II, III and IV of the environmental provisions), and the accrued
depreciation of the invested assets amounting to EUR 426,872 (item I of the environmental provisions).
The additional provisioning amounting to EUR 3,393,320 (taking into account the foreseen inflation
rate) relates to the re-verification of the balance of the provision with the documentation of the
external provider Hydrosvet. The external contractors estimate a completion time of 3 to 4 years.
While the timetable for the works is predetermined, the actual execution of the works is subject to
change due to unforeseen events or factors.
In EUR
Environmental provisions 2021
Situation
at 31 Dec
2020
Intended
use plan
2021
Formation
2021
Utilisation
2021
Situation
at 31 Dec
2021
Provisions for the Za Travnikom
landfill
360,774
100,000
15,921
3,395
373,300
Provisions for the Bukovžlak landfill
(ONOB)
3,539,065
2,000,000
3,452,592
804,135
6,187,523
Provision for the Bukovžlak high
embankment barrier
2,928,922
200,000
232,700
10,454
3,151,168
Provision for the removal of risks
from old burdens – CDM SMITH
6,002,275
300,000
0
14,100
5,988,176
Environmental provision -
Environmental investment in TiO
2
production
3,518,494
0
0
417,471
3,101,022
Total
16,349,530
2,600,000
3,701,214
1,249,555
18,801,189
The utilisation of the provision in 2021 is represented by the contractors' costs for the work carried
out amounting to EUR 831,083 and the accrued depreciation of EUR 320, which are directly charged
to the provision (items II, III and IV of the environmental provision), and the accrued depreciation of
the invested assets amounting to EUR 417,471 (item I of the environmental provision). The additional
provisioning relates to the re-verification of the provisioning balance with the documentation of the
external contractor Hydrosvet.
14 Non-current deferred income
In 2007, the Company obtained Decision No PIZ-06/0245 to be exempted from paying pension and
invalidity insurance contributions under Article 74 of the Act on Employment Rehabilitation and
Employment of Disabled Persons. In 2022, we fully earmarked the ceded contributions and bonuses of
the period to cover the wage costs of persons with disabilities.
In EUR
Deferred income
31/12/2022
31/12/2021
Deferred contributions for employment of people with disabilities
1,947
913
Long-term deferred income for equipment
1,345
1,776
Funds received from EU funds
133,335
161,172
Equipment and vehicles acquired free of charge
9,013
24,221
Emission allowances
44,074
27,667
Subsidies for photovoltaics
173,367
0
Total
363,054
215,749
In EUR

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190
Deferred income 2022
31/12/2021
Formation
Allocated
use
31/12/2022
Deferred contributions for
employment of people with disabilities
914
32,833
31,799
1,947
Long-term deferred income for
equipment
1,776
0
431
1,345
Funds received from EU funds
161,171
0
27,836
133,335
Subsidies for photovoltaics
0
176,555
3,189
173,367
Emission allowances
27,667
40,397
24,017
44,047
Equipment and vehicles acquired free
of charge
24,221
0
15,208
9,013
Total
215,749
249,785
102,480
363,054
In EUR
Deferred income 2021
31/12/2020
Formation
Allocated
use
31/12/2021
Deferred contributions for
employment of people with disabilities
1,799
29,324
30,210
914
Long-term deferred income for
equipment
2,516
0
740
1,776
Funds received from EU funds
189,073
0
27,902
161,171
Emission allowances
51,228
40,397
63,958
27,667
Equipment and vehicles acquired free
of charge
39,429
0
15,208
24,221
Total
284,045
69,721
138,017
215,749
15 Current financial liabilities
In EUR
Group of liabilities
31/12/2022
31/12/2021
Current financial liabilities - accruals, cessions
59,392
191,886
Current derivative liabilities - forwards
0
5,616
Total
59,392
197,503
Movement in financing liabilities in 2022
In EUR
Situation at 31
Dec 2021
Monetary changes
Non-monetary changes
Situation at 31
Dec 2022
Acquisitions/disposals
Dividends
0
–24,922,418
24,922,418
0
Assignments,
cessions, interest,
forwards
197,503
–138,111
0
59,392
Interest
0
–2,715
2,715
0
Total
197,503
–25,063,243
24,925,133
59,392

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191
Movement in financing liabilities in 2021
In EUR
Situation at 31
Dec 2020
Monetary changes
Non-monetary
changes
Situation at 31
Dec 2021
Acquisitions/disposals
Dividends
12,415
–16,448,317
16,435,902
0
Assignments,
cessions, interest,
forwards
47,675
–7,741
157,569
197,503
Interest
0
–914,484
914,484
0
Total
60,090
–17,370,542
17,507,955
197,503
16 Current trade payables
In EUR
Trade payables
31/12/2022
31/12/2021
Payables to suppliers
14,898,860
18,690,237
Other liabilities
4,619,285
4,552,487
Total
19,518,145
23,242,724
In EUR
Group of liabilities
31/12/2022
31/12/2021
Current payables to in-country suppliers
11,372,481
9,547,147
Current payables to suppliers abroad
3,526,380
9,137,478
Current payables for unbilled goods and
services
0
5,611
Current payables against advances
170,164
70,165
Current payables to employees
2,602,550
2,517,024
Current payables for payer's contributions
1,326,675
1,299,826
Current payables to government and other
institutions
509,838
656,587
Other current liabilities
10,057
8,886
Total
19,518,145
23,242,724
17 Current liabilities arising from contracts with buyers
Liabilities under contracts with buyers arose from contractual commitments to buyers for discounts or
volume rebates.
In EUR
Liabilities under contracts with buyers
31/12/2022
31/12/2021
Liabilities under contracts with buyers
157,520
136,087
Total
157,520
136,087

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192
18 Other current liabilities
Under other current liabilities, the Company recognises current deferred costs or expenses and VAT
on advances.
In EUR
Description
31/12/2022
31/12/2021
Accrued unused annual leave
797,395
823,198
Accrued costs
150,090
180,596
VAT on advances made
54,766
10,889
Other
1,668
2,785
Total
1,003,919
1,017,468
19 Contingent assets and liabilities
In EUR
Description
31/12/2022
31/12/2021
Guarantees given
2,275,179
2,345,729
Forward transactions
50,953
4,650,283
VISA and Mastercard payment cards
40,000
40,000
Material in finishing and processing
59,725
59,725
Total
2,425,857
7,095,737
The guarantees given represent an obligation to Nova kreditna banka Maribor d.d. and UniCredit Bank
d.d. in the amount of EUR 2,275,179 in respect of customs and excise duties (EUR 1,030,000) and a
performance guarantee for ARSO's contractual obligations in the amount of EUR 1,245,179.
On 27 October 2017, the Municipality of Celje filed a lawsuit against Cinkarna Celje d.d. in the amount
of EUR 1.3 million for the remediation of contaminated soil. The Company's management, with the
help of external legal experts' assessments, assessed that the probability of the outcome of the lawsuit
is in the Company's favour and therefore the Company has not made a provision for this purpose. On
2 February 2022, the lawsuit was settled in favour of the Company by a final decision of the court of
first instance. The Municipality of Celje appealed against the judgment, but on 29 June 2022 the High
Court ruled in favour of the Company.
20 Revenue from contracts with buyers
Revenue from contracts with buyers consists of the sales values of products, merchandise, materials
and services sold during the accounting period. A breakdown of net sales revenue by business segment
and area is shown below.
In EUR
2022
2021
Net revenue from contracts with buyers of
products and services
226,584,095
192,179,884
Net revenue from contracts with buyers of goods
and materials
569,021
282,216
Total
227,153,116
192,462,100

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193
21 Other operating income
In EUR
Revenue
2022
2021
Sales of emission allowances
0
436,560
Revenue from depreciation of assets acquired free
of charge
505,649
507,543
Gains on sale and write-down of assets
7,253
3,331
Proceeds from COVID-19 state support*
334,430
35,149
Recoveries of written-off receivables
0
8,498
Compensation received
23,763
109,289
Reversal of long-term provisions**
6,817,354
124,892
Other operating income
61,471
161,801
Total
7,749,919
1,387,062
* The revenue relates to reimbursement claims received for isolation (COVID diseases). The Company
also received in May 2022 EUR 300,000 in aid under the Act on Measures to Mitigate the Effects of the
Rise in Energy Prices in the Economy and Agriculture (ZUOPDCE), published in the Official Journal of
the Republic of Slovenia No 29, of 19 December 2022. The beneficiary of the aid due to the increase in
energy prices was a legal entity whose energy costs will increase by more than 40% in 2022 compared
to 2021. The amount of the aid was determined on the basis of the actual size of the net turnover in
2019 and the share of energy costs in the total operating expenditure in 2019. Taking into account the
criteria and the calculated amount, the aid was granted in the amount of EUR 300,000 and was also
paid into the Company's transaction account in May 2022.
** The amount of EUR 6,377,932 relates to the reversal of environmental provisions as the Company's
management assessed, based on evidence and re-examination, that there were grounds to reverse
them and transfer them to income in 2022 (see Note 13 – Other provisions).
In EUR
Revenue
2022
2021
Reversal/release of environmental provisions
6,377,932
0
Reversal/release of provisions for jubilee bonuses
and severance payments
439,422
124,892
Total
6,817,354
124,892
22 Operating expenses
Operating expenses
In EUR
2022
2021
Cost of materials and goods sold
200,613
140,470
Cost of materials
134,953,778
97,519,612
Cost of services
16,229,210
13,830,982
Labour costs
29,483,416
28,888,986
Depreciation
12,150,684
11,281,415
Other operating expenses
5,264,418
5,468,743
Impairments and write-offs of trade
receivables
1,553
28,975
Total
198,283,671
157,159,184

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194
Research and development costs amounted to EUR 233,759 in 2022 and EUR 120,045 in 2021.
Depreciation
The Company depreciates fixed assets on a straight-line basis over the expected useful life of each
fixed asset. Depreciation is charged to the cost of each fixed asset.
In EUR
Depreciation
2022
2021
Intangible assets
209,123
224,513
Easements
72,342
72,342
Buildings
3,271,577
3,203,086
Production equipment
8,592,476
7,775,865
Other equipment
5,166
5,610
Total
12,150,684
11,281,415
Labour costs
In EUR
Labour costs
2022
2021
Wages and reimbursements
20,807,538
20,157,542
Social security contributions
3,718,924
3,611,188
Expenses reimbursements and other employee
benefits
4,529,314
4,709,667
Supplementary pension insurance
427,640
410,590
Total
29,483,416
28,888,986
Labour costs include accrued liabilities to employees under the Company's collective agreement and
under individual employee contracts, and reimbursements of work-related expenses in accordance
with the collective agreement. Work-related reimbursements do not include food costs to the extent
that they relate to the cost of preparing food in the Company's own kitchen. These costs amounted to
EUR 978,237 in 2022 (EUR 846,552 in 2021). The costs are shown according to their nature and
purpose, i.e. between the costs of materials and services consumed, labour costs, depreciation
(amortisation) and other operating expenses. The Company has accounted for unused annual leave
entitlement in accordance with IAS 19. The Company is registered in the register of pension plans as
an employer sponsoring a pension plan designated PNMZ K, which is implemented by the Modri
Umbrella Pension Fund, an open-ended pension fund with the administrator Modra zavarovalnica. In
2022, the Company earmarked EUR 427,640 (2021: EUR 410,775) for supplementary pension
insurance.
As at 31 December 2022, the Company employed 775 people. The average number of employees was
776 and the average number of employees based on accrued hours was 725.
The Company also incurred costs of services not treated as labour costs in 2022 in respect of labour
placement agencies under placement contracts amounting to EUR 788,002 (2021: EUR 819,140). The
number of employees was 27.67 (2021: 30.17), taking into account the number of hours worked under
these contracts.

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195
Other operating expenses
In EUR
Other operating expenses
2022
2021
Provisioning for the environment
3,393,314
3,701,214
Environmental fees and refunds
393,070
464,162
Awards to students and trainees
225,487
265,503
Building land use allowance
562,120
367,738
Revaluation of stocks of materials and goods
332,443
386,724
Loss on sale (disposal) of fixed assets
143,377
135,159
Other costs and expenses
214,609
148,243
Total
5,264,418
5,468,743
The audit of the 2022 financial statements of Cinkarna Celje d.d. was carried out by Ernst & Young
revizija, d.o.o. The contract value for the agreed audit services amounted to EUR 29,100 plus VAT and
travel expenses. In addition, the audit firm Ernst & Young for 2023 also carried out the audit of the
verification of the 2022-ESEF accounts (EUR 2,100) in electronic form and the audit of the 2022
Remuneration Report (EUR 3,100) for the financial year 2022. Other expenses mainly consist of losses
on the settlement of reported claims and indemnities paid to natural persons.
23 Financial income and expenses
In EUR
2022
2021
Net exchange differences
0
0
Interest income
20,235
12,284
Dividend income
16,025
13,915
Total financial income
36,259
26,199
Net exchange differences
–457,614
–25,670
Interest expense
–2,715
–4,189
Interest on provisions for severance grants and
jubilee bonuses
–36,000
–16,443
Total financial expenses
–496,329
–46,302
Net financial result
–460,070
–20,103
Financial income consists of interest received on investments and receivables, income from non-
current investments and foreign exchange gains on operating and financing activities. Financial
expenses represent the accrued liabilities for the year on non-current and current financial and
operating liabilities, and foreign exchange losses arising on operating and financing activities (forward
foreign exchange purchases and sales).
24 Corporate income tax
The corporate income tax return is prepared in accordance with the Rules on Corporate Income Tax
Returns at a rate of 19% of the tax base, which is unchanged from the previous year and the year
before. The tax base in 2022 is reduced by allowances for investments in research and development,
for employment of disabled persons, for tax-unrecognised adjustments of past claims initiated under
the ZFFPPIPP act, for voluntary supplementary pension insurance, and for investments in equipment
and donations.

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Financial report
196
In EUR
2022
2021
Tax levied
10,015,959
7,591,736
Deferred tax
0
276,914
Total income tax
10,545,469
7,314,822
Change in tax base due to change to a new
method of accounting, changes in accounting
policies, corrections of errors and revaluations
–42,246
–38,781
Tax on increase in expenses
–11,718
–129,226
Tax on unrecognised expenses
213,617
523,711
Tax on tax credits
–821,480
–925,329
Tax on income reducing the tax base and other
–35,024
–15,816
Total income tax
9,319,109
6,729,381
Effective tax rate
17.7 %
17.5 %
The effective tax rate, calculated as the ratio of tax expense to accounting profit, is 17.7% and 17.5%
in 2021 and 2021, respectively. Changes in deferred taxes in 2022 relate to additional provisions
made/used for environmental, jubilee and severance payments and decreases/increases due to the
reversal of valuation allowances on receivables.
The Company recorded a decrease in deferred tax assets arising from temporary differences. The
decrease in 2022 relates to the difference between:
In EUR
Description
2022
2021
Consumption of provisions
–738,232
–112,290
Reversal of valuation allowances on receivables
–113,928
–21,459
Provisions made
322,365
410,663
Allowance for receivables (investments)
established
285
0
Total
–529,510
276,914

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Financial report
197
VI. CASH FLOW STATEMENT
The cash flow statement shows the changes in cash and cash equivalents for the financial year as the
difference between the balance as at 31 December 2022 and 31 December 2021. It is drawn up using
the indirect method from the statement of financial position as at 31 December of the financial year
and the statement of financial position as at 31 December 2021, together with the supplementary
information necessary to adjust the income and expenditure and to break down the significant items
appropriately. Theoretically possible items are not shown, but the values are shown for the current
and the prior period.
VII. STATEMENT OF CHANGES IN EQUITY
The statement of changes in equity takes the form of a composite table of changes in all components
of equity. Theoretically possible items are not shown. Changes in equity relate to the decision of the
General Meeting to allocate the previous year's balance sheet profit to the payment of dividends to
owners which have been or will be paid and to the purchase of own shares. Pursuant to Article 64(14)
of the Companies Act, a statement of the balance sheet profit is added to the statement of changes in
equity.
VIII. FINANCIAL INSTRUMENTS AND FINANCIAL RISKS
Financial risks (liquidity and interest rate)
Liquidity risk
Cinkarna Celje d.d. is a business partner known for its payment discipline both domestically and
abroad, a company with no bank debts and stable cash flows. The Company's business is traditionally
conservative with high cash flow. Liquidity management includes, inter alia, planning and covering
expected cash commitments, ongoing monitoring of customer solvency and regular collection of
overdue receivables. The credit rating is AAA (platinum excellence). The following tables show financial
and operational liabilities by maturity.
Maturity of financial liabilities as at 31 December 2022
In EUR
Carrying amount
Contractual cash flows
Total
Up to half a year
Payables to suppliers net of
advances
14,898,860
14,898,860
14,898,860
Commitments under contracts
with buyers net of advances
157,520
157,520
157,520
Total
15,056,380
15,056,380
15,056,380

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Maturity of financial liabilities as at 31 December 2021
In EUR
Carrying amount
Contractual cash flows
Total
Up to half a year
Payables to suppliers net of
advances
18,690,236
18,690,236
18,690,236
Commitments under contracts
with buyers net of advances
136,087
136,087
136,087
Total
18,826,323
18,826,323
18,826,323
Interest rate risk
Interest rate risk is the potential for losses due to adverse movements in market interest rates. The
Company does not have any long-term financial commitments and has no measures in place to address
them. If this were to change, appropriate measures would be put in place to manage this type of risk.
Due to its strong business performance and favourable financial position, the Company enters into
deposit agreements with banks at positive interest rates in order to reduce the cost of bearing
deposits. At the last balance sheet date, the balance of deposits with a maturity of up to one year
amounted to EUR 21 million. If the bank interest rate were to decrease by 1%, this would result in an
increase in financial expenses of EUR 210 thousand, whereas if it were to increase by 1%, this would
result in an increase in financial income of EUR 210 thousand on an annual basis.
Credit risk
The key credit risk of Cinkarna Celje d.d. is the risk that buyers will not settle their obligations when
they fall due.
The risk is limited as we deal mainly with long-standing partners, often well-known traditional
European industrial companies with high credit ratings. In recent years, we have noticed that payment
discipline in Slovenia, the Balkans and Eastern Europe has been relatively poor, but we do not expect
any further problems in this geographical area in the coming period, or the risk potential has
significantly decreased. With the realignment/reorganisation of the portfolio of the Company's
strategic business areas, specifically the discontinuation of the Graphic Repro Materials programme,
the Rolled Titanium Sheet programme, the Anti-Corrosion Coatings programme and the Building
Materials programme, the exposure to credit risk has significantly decreased, as evidenced by the
maturity of receivables and the fact that we have virtually no further allowance for doubtful or
defaulted receivables from buyers.
For many years, Cinkarna Celje has been carrying out internal credit control for each individual
customer, who has been assigned an individual credit limit based on payment discipline, credit rating
and good performance with the Company. The credit risk monitoring and management process was
further enhanced in mid-2021 with the introduction of receivables insurance with an external
institution, where credit limits are set, monitored and changed on a daily basis.
In addition to the regular monitoring of the credit limit for each buyer, the payment discipline of the
buyer and the announcements made on the Ajpes register in connection with the announcement of
proceedings under the Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act
(ZFPPIPP) are monitored on a daily basis. The buyer is also reminded of the due date of the receivable
by a reminder, firstly by telephone and then in writing, and interest is charged from the due date until
the date of repayment, with interest being calculated on late payment interest from the due date until

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the date of repayment of the debt. The process of regular monitoring and control of the portfolio of
trade receivables is a permanent feature of the Company, resulting in a low proportion of write-offs
or impairments of receivables in relation to the proportion of sales.
The carrying amount of financial assets most exposed to credit risk at the reporting date was as
follows:
In EUR
Notes
31/12/2022
31/12/2021
Financial investments
3
1,973,765
1,651,099
Trade receivables
4
22,087,040
29,148,099
Cash and cash equivalents
5
45,210,098
59,746,594
Total
69,270,903
90,545,792
As at the balance sheet cut-off date of 31 December 2022, the Company has, in addition to EUR 21
million, an additional EUR 24.2 million of cash to support its day-to-day operations. In order to
mitigate credit risk and exposure to banks, the Company has assets spread across five banks with
excellent credit ratings and strong balance sheets.
The Company has a healthy trade receivables structure, as shown in the table of trade receivables by
maturity and in the table of the movement in the valuation allowance on current trade receivables.
Movement in valuation allowances on current trade receivables
In EUR
2022
Situation at
Valuation allowance
Write-downs of valuation
Situation at
31 Dec 2021
Formed 2022
allowances of prior years
31 Dec 2022
Buyers in country
267,017
0
32
266,985
Buyers abroad
381,437
1,500
11,142
371,794
Total
648,454
1,500
11,174
638,780
In EUR
2021
Situation at
31 Dec 2020
Valuation
allowance
formed 2021
Write-downs of valuation
allowances of prior years
Written-off
receivables
paid
Situation at
31 Dec 2021
Buyers
in
country
367,302
0
100,285
0
267,017
Buyers
abroad
360,960
28,975
0
8,498
381,437
Total
728,262
28,975
100,285
8,498
648,454

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Trade receivables by maturity
In EUR
Group of receivables by maturity
Gross value
31/12/2022
Adjustment
31/12/2022
Gross value
31/12/2021
Adjustment
31/12/2021
Not past due
19,743,148
15,763
26,683,460
21,346
Past due under 15 days
1,960,633
1,569
1,240,457
994
Past due from 16 to 60 days
345,946
1,633
1,252,916
6,635
Past due from 61 to 180 days
56,335
56
240
0
Past due over 180 days
619,758
619,759
619,479
619,479
Total
22,725,819
638,779
29,796,552
648,454
In EUR
Group of receivables by maturity
Gross value
31/12/2021
Adjustment
31/12/2021
Gross value
31/12/2020
Adjustment
31/12/2020
Not past due
26,683,460
21,346
23,925,001
0
Past due under 15 days
1,240,457
994
448,553
0
Past due from 16 to 60 days
1,252,916
6,635
360,628
0
Past due from 61 to 180 days
240
0
0
0
Past due over 180 days
619,479
619,479
728,262
728,262
Total
29,796,552
648,454
25,462,444
728,262
All trade receivables are secured with an external institution as from 1 June 2021. As at 31 December
2022, 95.4% of the receivables are secured with an external institution (Coface PKZ, d.d.) (90.68% at
the end of 2021), 2.5% of the receivables are secured with another form of insurance (letter of credit,
advance) (7.06% at the end of 2021) and only 2.1% of the total receivables are not secured (2.3% at
the end of 2021). The Company determines the concentration of the receivables by means of IT tools
and the limits entered in the system. The information system for monitoring receivables allows us to
keep track of the collateralisation of receivables, as the information system is updated daily according
to changes in the type of collateral and changes in credit limits. At the end of the year, 6 titanium
dioxide customers from the European Union accounted for 35% (29% in 2021) of the total fully secured
receivables. The customers are spread across different markets and hence there is no significant
exposure of the Company to any single customer.
Currency risk
Cinkarna Celje d.d. purchases and sells on the world market and is therefore exposed to the risk of
unfavourable cross-currency exchange rates. In particular, the EUR/USD exchange rate. As most sales
are made in euro, the exposure is particularly acute for dollar purchases of titanium-bearing raw
materials and, exceptionally, sulphur and copper compounds. The exposure is significantly lower in
dollar-denominated sales.
We continuously monitor the movements and forecasts regarding the dynamics of the EUR/USD
currency pair. Basically, we limit the short-term risk of adverse changes in the dollar exchange rate
through the standardised and consistent use of financial instruments (dollar futures). We achieve
virtually complete coverage of relevant business events involving the EUR/USD currency pair.

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Exposure to foreign exchange rate risk
In EUR
31/12/2022
31/12/2021
EUR*
USD
EUR*
USD
Trade receivables
21,673,232
413,838
28,269,239
878,860
Advances given
1,168,851
0
396,433
36,099
Cash and cash equivalents
45,210,098
0
59,746,594
0
Current financial liabilities
–59,392
0
–197,503
0
Current trade payables
–19,450,525
–67,620
–17,093,801
–6,148,923
Statement of financial position exposure (net)
48,542,264
346,218
71,120,962
–5,233,964
EUR* is the functional currency and does not represent an exposure to exchange rate risk.
In addition to the functional currency EUR, the Company uses the USD (US Dollar), which was used in
the translation of the balance sheet items as at 31 December 2022 and is equal to the European Central
Bank's reference rate of 1 national currency for 1 Euro as at 31 December 2022 of 1.0666 and as at 31
December 2021 of 1.1326.
Sensitivity analysis
A 1% change in the value of the USD against the EUR as at 31 December 2022 and 31 December 2021
would change profit before tax by the amounts shown in the table below. The analysis, which is carried
out in the same way for both years, assumes that all variables, in particular interest rates, remain
constant. In calculating the impact of the change in the US dollar exchange rate, account is taken of
the stock of receivables and payables denominated in dollars.
In EUR
31/12/2022
31/12/2021
USD currency change
1 %
–1 %
1 %
–1 %
Impact on profit before tax
3,693
–3,693
302,125
–302,125
Any further change of 1% in the USD exchange rate against the EUR would result in a further change
in profit before tax of the above amounts.
Capital management
The primary objective of Cinkarna Celje's capital management is to ensure a high credit rating and
adequate funding ratios to ensure the proper development of its business and to maximise value for
its shareholders.
Cinkarna Celje aims to keep pace with changes in the economic environment by managing and
adjusting its capital structure. Dividends are paid in accordance with the revised dividend policy
adopted at the December 2022 Supervisory Board meeting. Cinkarna Celje d.d. has no specific
employee ownership targets and no share option programme. There were no changes in the capital
management policy in 2021 and 2022. Cinkarna Celje uses a leverage ratio to control capital, which
shows the ratio of net debt to capital and total net debt. Net indebtedness includes financial and
operational liabilities less cash and cash equivalents.

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In EUR
31/12/2022
31/12/2021
Financial liabilities
59,392
197,503
Trade and other current liabilities
23,046,745
28,248,514
Cash and cash equivalents
45,210,098
59,746,594
Net indebtedness
–22,103,961
–31,300,577
Capital
209,010,148
190,165,790
Capital and net indebtedness
186,906,187
158,865,213
Leverage ratio
–12 %
–20 %
IX. FAIR VALUE
In EUR
31/12/2022
31/12/2021
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets at fair value through
other comprehensive income
1,973,765
1,973,765
1,651,099
1,651,099
Trade receivables
22,087,040
22,087,040
29,148,099
29,148,099
Cash and cash equivalents
45,210,098
45,210,098
59,746,594
59,746,594
Financial liabilities
–59,392
–59,392
–197,503
–197,503
Trade payables
–14,898,860
–14,898,860
–18,690,237
–18,690,237
Payables under contracts with buyers
–157,520
–157,520
–136,087
–136,087
Total
54,155,131
54,155,131
71,521,965
71,521,965
Investments are classified into three groups based on the fair value calculation:
‒ Asset group 1 – assets at market price;
‒ Asset group 2 – assets not classified in group 1, the value of which is determined directly or on the
basis of comparable market data;
‒ Asset group 3 - assets for which market data cannot be obtained.
In EUR
Fair value of assets
31/12/2022
31/12/2021
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Financial assets at fair
value through other
comprehensive income
0
1,973,765
0
1,973,765
5
1,651,099
0
1,651,099
Total assets measured at
fair value
0
1,973,765
0
1,973,765
0
1,651,099
0
1,651,099
Assets for which fair value
is disclosed
Trade receivables
0
0
22,087,040
22,087,040
0
0
29,148,099
29,148,099
Cash and cash equivalents
0
0
45,210,098
45,210,098
0
0
59,746,594
59,746,594
Total assets for which fair
value is disclosed
0
0
67,297,138
67,297,138
0
0
88,894,693
88,894,693
Total
0
1,973,765
67,297,138
69,270,903
0
1,651,099
88,894,693
90,545,792
In EUR
Fair value of liabilities
31/12/2022
31/12/2021
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Financial liabilities
0
0
59,392
59,392
0
0
197,503
197,503

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Trade payables
0
0
14,898,860
14,898,860
0
0
18,690,237
18,690,237
Liabilities under contracts
with buyers
0
0
157,520
157,520
0
0
136,087
136,087
Total liabilities for which
fair value is disclosed
0
0
15,115,772
15,115,772
0
0
19,023,827
19,023,827
The assumptions used in determining the fair value of investments and other items are set out in the
introductory notes in Chapter II Significant accounting policies.
X. RELATED PARTY TRANSACTIONS – INFORMATION ON GROUPS OF PERSONS
Management's participation in capital
At the end of 2022 and 2021, one member of the Management Board held 1,860 shares in Cinkarna
Celje, representing 0.023% of the Company's total capital or 0.023% of voting rights. No Supervisory
Board members held shares at the balance sheet cut-off date.
31/12/2022, 31/12/2021
Number of
shares
Share in
capital (%)
Nikolaja Podgoršek Selič
1860
0.023
Gross remuneration of groups of persons
In EUR
2022
2021
Members of the Management Board
661,946
594,141
Members of the Supervisory Board
152,540
113,060
Total gross remuneration of groups of persons
814,486
707,201
Employees on the basis of contracts not covered by the tariff
part of the collective agreement
3,134,933
3,252,549
Total gross remuneration of groups of persons and
remuneration of employees on the basis of contracts not
covered by the tariff part of the collective agreement
3,949,419
3,959,750
Remuneration of the members of the Management Board in 2022
In EUR
Name and
surname
Function
(President,
Member)
Fixed
remuneration
– gross (1)
Variable
remuneration –
gross based on
quantitative criteria
Bonuses
Other
remunera
tion
Total
gross
Aleš Skok
President
275,977
64,680
7,829
4,133
352,619
Nikolaja Podgoršek
Selič
Deputy
President
220,069
51,537
8,873
3,179
283,659
Filip Koželnik
Member
16,234
4,116
2,602
2,715
25,668
Total
512,281
120,333
19,304
10,028
661,946

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Remuneration of the members of the Management Board in 2021
In EUR
Name and surname
Function
(President,
Member)
Fixed
remunerati
on – gross
(1)
Variable
remuneration –
gross based on
quantitative
criteria
Bonuses
Other
remunerati
on
Total gross
Aleš Skok
President
264,000
22,277
9,150
4,849
300,276
Nikolaja Podgoršek
Selič
Deputy
President
210,354
43,753
10,622
4,576
269,305
Filip Koželnik
Member
15,981
582
3,367
4,630
24,560
Total
490,335
66,612
23,139
14,055
594,141
Remuneration of Supervisory Board members in 2022
In EUR
Name and
surname
Function (President, Deputy,
Member, External Committee
Member)
Remuneration for
the performance
of duties – gross
per year (1)
NS and
Commissions'
meeting fees -
gross per year
(2)
Total gross
(1 + 2)
Travel
expens
es
Total
remunerati
on
Mario
Gobbo
SB Member + SB President
+ HR Chair
28,125
1,815
29,940
8,635
38,575
Luka
Gaberščik
SM Member + SB Deputy
President + HR Member
20,250
1,815
22,065
239
22,304
David
Kastelic
SB Member + AC Chair
20,625
2,695
23,320
384
23,704
Mitja
Svoljšak
SB Member
17,385
1,540
18,925
162
19,088
Dušan
Mestinšek
SB Member + AC Member
18,750
1,595
20,345
0
20,345
Jože
Koštomaj
SB Member + AC Member
18,750
2,695
21,445
0
21,445
Gregor
Korošec
External Member
0
5,000
5,000
0
5,000
Žiga
Gregorinčič
External Member
0
1,040
1,040
0
1,040
Lea Peček
External Member
0
1,040
1,040
0
1,040
Total
123,885
19,234
143,120
9,420
152,540
SB = Supervisory Board
AC = Audit Committee
HR = Human Resources Committee

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Remuneration of Supervisory Board members in 2021
In EUR
Name
and
surname
Function (President, Deputy,
Member, External Committee
Member)
Remuneration for the
performance of duties
– gross per year (1)
NS and
Commissions'
meeting fees -
gross per year
(2)
Total
gross
(1 + 2)
Travel
expenses
Total
remunera
tion
Mario
Gobbo
SB Member + SB President
+ HR Chair
23,352
1,595
24,947
344
25,290
Luka
Gaberšči
k
SM Member + SB Deputy
President + HR Member
16,813
1,595
18,408
58
18,467
David
Kastelic
SB Member + AC Chair
17,124
2,915
20,039
114
20,153
Mitja
Svoljšak
SB Member
6,875
770
7,645
80
7,725
Dušan
Mestinše
k
SB Member + AC Member
15,568
1,595
17,163
17,163
Jože
Koštoma
j
SB Member + AC Member
15,568
2,695
18,263
18,263
Gregor
Korošec
External Member
0
6,000
6,000
6,000
Total
95,299
17,165
112,464
596
113,060
SB = Supervisory Board
AC = Audit Committee
HR = Human Resources Committee
The bonuses of the members of the Management Board include the bonus related to the use of a
company car also for private purposes and any other bonuses. Expenses allowances include
reimbursement of travel expenses to work and of meals during work.

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Significant events after the end of the financial period
On 7 March 2023, as dictated by Article 78 of the Act on Employee Participation in Management, at a
meeting of the Works Council, in accordance with Article 16 of the aforementioned Act and the Rules
of Procedure of the Works Council, elections were held for a new employee representative on the
Supervisory Board of Cinkarna Celje.
Aleš Stevanovič was voted as the employee representative on the Supervisory Board of the Company
and took up the full position on 8 March 2023.
At the same time, the company's management board announces that in 2023 the company is the
recipient of aid in accordance with the Act on Aid to the Economy to Mitigate the Consequences of the
Energy Crisis (ZPGOPEK), according to which the consequences for the cases defined in paragraph 12
of Article 16 apply.

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Independent auditor's report

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General Meeting/capital structure
Share ownership structure of Cinkarna Celje d.d.
No of shares
%
SDH, d. d.
1,974,540
24.44
Modra zavarovalnica, d. d.
1,629,630
20.17
UNICREDIT BANK AUSTRIA AG – FID
364,840
4.52
TR5, d. o. o.
318,170
3.94
Own shares
264,650
3.28
KRITNI SKLAD PRVEGA POKOJNINSKEGA SKLADA
167,050
2.07
RAIFFEISEN BANK AUSTRIA, D. D. – FID
161,460
2.00
CITIBANK N.A. – FID
111,600
1.38
NLB SKLADI – SLOVENIJA MEŠANI
100,990
1.25
Generali Rastko Evropa, equity fund
85,110
1.05
Generali Galileo, mixed flexible fund
84,302
1.04
Internal shareholders – FO
59,932
0.74
External shareholders – FO
1,812,539
22.43
Other
944,957
11.69

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Statement by members of the management and persons responsible for
drawing up the annual report
We, the above-mentioned and the undersigned members of the Management Board and the persons
responsible for the drawing up of the Annual Report pursuant to Article 134(2) of the ZTFI-1 act,
confirm that to the best of our knowledge:
I. The financial report is in accordance with the relevant financial reporting standards, i.e.
International Financial Reporting Standards. Such gives a true and fair view of the assets, liabilities,
profit or loss and financial position of the Company;
II. The financial report includes a fair review of the development and results of the Company's
business and of its financial position, including a description of the material risks to which the
Company is exposed.
The Annual Report 2023 is hereby adopted and approved by the Management Board on 27 March
2023.
Management Board of the Company
President of the Management
Member of the Management
Member of the Management
Board
Board – Deputy Chairman of the
Board – Works Director
Management Board – Technical
Director
Aleš SKOK,
Nikolaja PODGORŠEK SELIČ,
Filip KOŽELNIK,
univ. dipl. in chemical
engineering technology,
MBA – USA
univ. dipl. in chemical engineering,
spec.
master of business studies
Persons responsible for drawing up the Annual Report
Member of the Management –
Head of Accounting
Works Director
Filip KOŽELNIK,
master of business studies
mag. Karmen FUJS,
univ. dipl. in econ.

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Company culture
BUSINESS PARTNERS
We will continuously focus our efforts on meeting our
customers' needs fairly, with quality and on time. We will
develop relationships of mutual trust, cooperation and
business friendship. We will meet our obligations to suppliers,
banks and contractors with the utmost responsibility.
OWNERS
We will strive to ensure that owners' investment, and thus
their confidence in the correctness of this decision, is rewarded
with the expected and appropriate returns. We will ensure the
long-term viability and profitability of the Company by
investing in development and in our employees. We
understand that our responsibility is proportionate to the trust
placed in us.
EMPLOYEES
All employees will be treated with honesty. Fair pay for a job
well done is an inalienable right. We will ensure that the rights
to adequate information, personal security and equal
treatment are implemented. The Company's management has
a duty to promote a positive working atmosphere and to
ensure that the rules and principles of ethical business conduct
are developed and implemented.
LOCAL COMMUNITY
Within the philosophy of sustainable development, investment
in environmental projects and targeted technology design, we
will work to find the most optimal ways and means to protect
the environment and the health of our fellow citizens. Where
possible, we will care for and participate in the development
and progress of the local community in the fields of education,
sport and culture.

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Reporting indicators according to GRI standards
In the report on non-financial reporting, we cover all the indicators that we have identified as material.
Reporting limits are indicated for each indicator. Indicators that are not material for Cinkarna Celje are
not listed and are not reported.
Table: GRI indicators
Page
General disclosures
2-1
Information about the organisation
21
2-2
Entities involved in the organisation's sustainability reporting
35, 41, 76-77
2-3
Reporting period, frequency and contact point
76-77
2-4
Recurrent information
76
2-5
External control
15-18, 58, 59, 72-
74
2-6
Activities, value chain and other business relationships
22-24, 47-49, 105-
106, 107-108
2-7
Employees
6, 35, 68-69, 92-
104
2-8
Workers who are not employees
93, 95
2-9
Structure and composition of management and governance
25, 26-27
2-10
Appointment and selection of the highest governance and management
body
26-27, 29-30
2-11
Chairperson of the highest governance body
21, 26, 34, 41
2-12
Role of the highest governance body in the control of the management
of influence
32-34, 87-91
2-13
Delegation of responsibility for the management of influence
32-34, 87-89
2-14
Role of the highest governance body in sustainability reporting
35-36, 76-77
2-15
Conflict of interest
26-27
2-16
Communicating critical concerns
29, 58, 98, 113, 115
2-17
Collective knowledge of the highest governance body
26
2-18
Evaluation of the work of the highest governance body
15-18, 32-34
2-19
Remuneration policies
28, 95-96
2-20
Remuneration setting process
28, 95-96
2-21
Total annual compensation rate
28
2-22
Sustainable development strategy statement
12-14, 35-36, 42,
76
2-23
Commitments in line with the organisation's policies
29-30, 114-117
2-24
Incorporation of commitments in line with the organisation's policies
29-30, 114-117
2-25
Processes to address negative impacts
72-75
2-26
Mechanisms for seeking advice and raising concerns
29, 59-61, 98, 113
2-27
Compliance with legislation and regulations
30, 62-63, 67, 69,
108, 115-116, 117
2-28
Membership of associations
86
2-29
Approach to stakeholder involvement
87-91
2-30
Collective agreements
78, 95

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Important topics
3-1
Process for identifying important topics
89-90
3-2
List of important topics
89-91
Economic performance
201-1
Direct economic value created and distributed
6, 8-9, 47-50
201-2
Financial implications and other risks and opportunities of climate
change
65
201-3
Supplementary pension plan and other additional benefits
96
Market presence
202-1
Ratio of the standard basic wage level to the national minimum wage
96
202-1
Proportion of top management from local (national) background
26
Indirect economic impacts
203-1
Investment in infrastructure and support services
43-44, 124, 130-
131
203-2
Significant indirect economic impacts
7, 8-9
Anti-corruption
205-1
Activities with corruption risks
30, 69
205-2
Communication on anti-corruption policies and procedures
29, 30
205-3
Corruption incidents and actions taken
30
Taxes
207-1
Taxes
7, 55
Materials
301-1
Materials used
117-119
301-2
Recycled input materials used
119
301-3
Processed products and their packaging materials
118-119, 120-122
Energy
302-1
Energy consumption within the organisation
131-132
302-3
Energy intensity
125-129
302-4
Reduction of energy consumption
124, 130-131
302-5
Reduction of energy requirements for products and services
126-129
Water and wastewater
303-1
Attitudes towards water as a common resource
136-137
303-2
Managing impacts related to water discharge
137-139
303-3
Water abstraction
136
303-4
Water discharge
138
303-5
Water consumption
136
Biodiversity
304-1
Protected areas with high biodiversity value
139-141
304-2
Significant impacts of activities and products on biodiversity
137, 138, 139, 140-
141
304-3
Habitats protected or restored
138-141
304-4
National species conservation list
139
Emissions
305-1
Direct (Scope 1) greenhouse gas emissions
131-132
305-2
Energy indirect (Scope 2) greenhouse gas emissions
131-132

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305-4
Greenhouse gas emission intensity
131-134
305-5
Reduction of greenhouse gas emissions
83-84, 129-130,
135
305-7
Nitrogen oxides (NOX), sulphur oxides (SOX) and others
133-134
Waste
306-1
Waste generation and significant waste-related impacts
67, 122-123
306-2
Managing significant waste impacts
14, 36, 38-39, 44,
45, 54-55, 67, 79,
105, 106
306-3
Waste generated
122-123
306-4
Waste diverted from landfill
38-39, 117, 119-
122
305-5
Waste disposed of
122-123
Environmental assessment of suppliers
308-1
New suppliers screened against environmental criteria
105-106
308-2
Negative environmental impacts in the supply chain and actions taken
105-106
Employment
401-1
New employees and employee turnover
94
401-2
Benefits for full-time and temporary or part-time employees
95
401-3
Parental leave
95
Worker-management relations
402-1
Management's attitude towards employees in terms of communication
30, 88, 92, 95, 97-
99
Health and safety at work
403-1
Occupational health and safety management system
77, 99-102
403-2
Hazard identification, risk and accident assessment
102, 103
403-4
Worker participation, consultation and information on occupational
health and safety
102, 103, 104
403-5
Training of workers in occupational health and safety
96-97, 100
403-6
Promotion of workers' health
77, 99, 104
403-7
Prevention and mitigation of occupational health and safety impacts
directly related to business relations
99-104
403-8
Workers involved in the occupational health and safety management
system
99-104
403-9
Injuries at work
99, 101-102
403-10
Work-related diseases
94-95, 103
Training and education
404-1
Average number of training hours per year per employee
97
404-2
Programmes for upskilling and transitions of employees
96-98
404-3
Percentage of employees working full-time
95
Diversity and equal opportunities
405-1
Diversity of management bodies and employees
26, 29-30, 92-94
Non-discrimination
406-1
Non-discrimination
30, 78, 92
Freedom of association and collective bargaining
407-1
Freedom of association and collective bargaining
35, 95
Child labour

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408-1
Activities and suppliers at significant risk of child labour incidents
106
Forced or compulsory labour
409-1
Activities and suppliers exposed to a significant risk of forced or
compulsory labour incidents
106
Local communities
413-1
Activities involving local communities, impact
110-113
413-2
Activities with significant actual and potential negative impacts on local
communities
32-33, 36, 113,
133, 134, 136, 138-
139, 140
Health and safety of customers
416-1
Ensuring customer health and safety
83-85, 108, 115,
116
416-2
Ensuring product safety on health and safety
63, 83, 84, 85, 107-
108
Marketing and labelling
417-1
Product and service information and labelling requirements
108
417-2
Product and service complaints
108-109
Customer privacy
418-1
Ensuring the privacy of customers and their data
74-75