Graphics
Metalurško-kemična industrija Celje, d. d.
Kidričeva 26, SI-3001 Celje, Slovenia
Annual Report
of Cinkarna Celje d.d.
for 2023
April 2024
Graphics
2
Index
Key highlights for 2023 ........................................................................................................ 4
Concise overview of performance and alternative performance measures ................................... 5
Report of the Management Board .......................................................................................... 6
Report of the Supervisory Board of Cinkarna Celje d.d. ............................................................ 8
Report of the Audit Committee of the Supervisory Board on its work in 2023 and verification of the
Annual Report of Cinkarna Celje d.d. for 2022 ..................................................................... 9
Internal audit report ........................................................................................................... 12
Highlighted events in 2023 .................................................................................................. 13
Presentation of Cinkarna Celje d.d. ....................................................................................... 14
Organisational structure................................................................................................... 15
Activities, value chain and other business relationships ........................................................ 16
Market presence ............................................................................................................. 18
Corporate Governance Statement ......................................................................................... 19
Procedure for determining the remuneration of members of management and supervisory bodies
.................................................................................................................................... 21
Corporate Governance Code for Listed Companies .............................................................. 21
Code of Ethical Conduct and Practice ................................................................................. 22
Diversity policy ............................................................................................................... 23
Respect for human rights ................................................................................................. 23
Policy on prohibition of sexual and other harassment and ill-treatment in the workplace .......... 23
Combating corruption and bribery ..................................................................................... 24
Internal control and risk management system in relation to the financial reporting process ...... 24
Information on the functioning of the Company's General Meeting, including its powers,
shareholders' rights and their exercise ............................................................................... 25
Identification and management of impacts ......................................................................... 25
Statement of non-financial performance ................................................................................ 28
Report on environmentally sustainable economic activities and investments of Cinkarna Celje d.d.
for 2023 ........................................................................................................................ 30
Strategic orientations .......................................................................................................... 37
Plan for 2024.................................................................................................................. 38
Investments implemented and planned ............................................................................. 39
Investments made in 2023 ........................................................................................... 39
Plans for 2024 ............................................................................................................. 40
Analysis of results and performance ...................................................................................... 43
Sales ............................................................................................................................. 43
Operating result .............................................................................................................. 45
Shares – value and turnover ............................................................................................ 45
Dividends ....................................................................................................................... 46
Expenses and costs ......................................................................................................... 47
Assets and resources ....................................................................................................... 49
Risk management............................................................................................................... 52
Corporate risks identified in 2023 ...................................................................................... 56
Integrated management system ........................................................................................... 68
Internal audits ................................................................................................................ 68
External audits ............................................................................................................... 68
Financial and legal due diligence ....................................................................................... 69
Information security ........................................................................................................ 69
Sustainable development .................................................................................................... 71
Graphics
3
Key Sustainable Development Goals in 2023 ...................................................................... 71
Areas of priority sustainability activities of Cinkarna Celje in relation to the United Nations
Sustainable Development Goals by 2030............................................................................ 72
Membership in associations .............................................................................................. 75
Approach to stakeholder involvement ................................................................................ 76
Stakeholder involvement .............................................................................................. 76
Materiality matrix ........................................................................................................ 78
Environmental aspect ...................................................................................................... 80
Environmental management ............................................................................................. 80
Objectives and measures .............................................................................................. 82
Compliance and standards ............................................................................................ 82
Ecological monitoring ................................................................................................... 82
Responsible Care Programme ........................................................................................ 82
HACCP system management ......................................................................................... 82
Environmental due diligence ......................................................................................... 83
Ecovadis Sustainability Rating ....................................................................................... 83
Climate change ............................................................................................................... 83
Energy consumption in the organisation ......................................................................... 83
Reduction of energy consumption .................................................................................. 85
Investing in renewable energy ...................................................................................... 86
Energy intensity .......................................................................................................... 87
Company's carbon footprint .......................................................................................... 88
Carbon footprint of the carrier product ........................................................................... 90
Pollution ........................................................................................................................ 90
Water resources ............................................................................................................. 92
Integrated Water Management Project ........................................................................... 93
Biodiversity and ecosystems ............................................................................................. 95
Resource use and circular economy ................................................................................... 96
By-product production ................................................................................................ 100
Social aspect ................................................................................................................ 103
Own workforce ............................................................................................................. 103
Value chains and workers in value chains ......................................................................... 114
Local and other communities .......................................................................................... 116
Customers ................................................................................................................... 119
Financial report ................................................................................................................ 123
Financial statements ..................................................................................................... 123
Condensed statement of financial position of the Company ............................................. 123
Income statement for the period from 1 January to 31 December .................................... 125
Statement of other comprehensive income for the period from 1 January to 31 December .. 126
Statement of changes in equity and determination of distributable profit .......................... 127
Cash flow statement .................................................................................................. 128
Notes to the financial statements................................................................................. 129
Significant events after the end of the financial period .......................................................... 187
Statement by members of the management and persons responsible for drawing up the annual report
188
Ownership structure ......................................................................................................... 189
Reporting indicators according to GRI standards................................................................... 190
Independent auditor’s report ............................................................................................. 197
Graphics
4
Key highlights for 2023
Responding to market changes and maintaining business stability
EUR 176.5 million in turnover and EUR 12.7 million in net operating result.
Sales to the EU market (excluding Slovenia) account for 76% of value sales by market.
60% of sales by value are paints (including decorative paints) and varnishes.
97% of planned investments were realised, i.e. almost EUR 20 million was earmarked for
investment.
A responsible approach to managing our environmental impacts
18% reduction in total energy consumption*.
3% of the total electricity needed comes from solar energy from own sources.
32% reduction in total annual dust emissions from all sources*.
1,700,000 kWh of energy saved through energy efficiency measures.
No significant spills or major accidents in the environment in the last five years.
Providing training and competence development for our employees
6% of employees have a career plan.
16 hours of training per employee.
125 internal mentors with a mentoring qualification.
A safe working environment is our priority
18% fewer days lost due to work-related injuries.
38% more potential hazards identified than the year before, mainly due to a more systematic
approach to identifying potential hazards.
Supporting the development of the local environment
EUR 706,035 was allocated to sponsorships and donations.
95% of sponsorships and donations go to sports clubs and associations.
* Note: Lower energy consumption and total dust emissions from all sources are due to lower
production as a result of major overhauls in titanium dioxide and sulphuric acid production in the
last quarter.
Graphics
Business report
5
Concise overview of performance and alternative
performance measures
Cinkarna Celje d.d. also uses Alternative Performance Measures (APMs) as defined by ESMA to show
the past performance of the company. The selected performance measures reveal the performance
and efficiency of the Company's business in the context of the cyclical nature of the pigment industry.
OPERATIONS (in 000 EUR)
2023
2021
2020
2019
Turnover
176,464.29
192,462.10
172,386.90
172,587.00
Operating profit (EBIT)
1
12,722.75
39,976.60
22,534.40
25,726.90
Operating profit + depreciation and amortisation (EBITDA)
2
25,078.12
51,258.00
32,467.20
32,296.30
Net operating result
12,653.41
33,227.10
18,950.70
21,436.40
Non-current assets (end of period)
114,522.70
110,511.61
110,888.70
107,753.80
Current assets (end of period)
145,392.97
131,373.20
100,251.70
100,516.50
Equity (end of period)
221,230.46
190,165.80
174,820.90
170,806.10
Non-current liabilities (end of period)
18,844.14
23,273.00
20,876.40
22,578.00
Current liabilities (end of period)
19,841.07
28,446.00
15,442.00
14,886.20
Investments in intangible and tangible fixed assets
19,825.30
11,325.40
12,233.00
11,956.00
INDICATORS
EBIT as a percentage of turnover
0.07
0.21
0.13
0.15
EBITDA as a percentage of turnover
0.14
0.27
0.19
0.19
Net profit as a percentage of turnover (ROS)
7.17
17.26
10.99
12.42
Return on equity (ROE)
3
5.88
21.40
12.50
14.70
Return on assets (ROA)
4
4.95
14.70
9.00
10.20
Value added per employee
5
80,305
106,181
78,729
80,896
NUMBER OF EMPLOYEES
End of year/period
742
793
824
846
Average end of year/period
754
801
838
874
SHARE INFORMATION*
Total number of shares
8,079,770
8,079,770
8,079,770
8,079,770
Number of own shares
264,650
264,650
219,510
106,520
Number of shareholders
2,651
2,077
1,920
1,920
Earnings per share in EUR
6
1.57
4.11
2.35
2.65
Dividend yield
7
n. a.
9 %
11 %
13 %
Gross dividend per share in EUR
n. a.
2.10
1.70
2.83
Share price at end of period in EUR
20.50
25.90
17.80
18.75
Book value per share in EUR
8
27.38
23.54
21.64
21.18
Market capitalisation in EUR 000 (end of period)
165.635,29
209.266,04
143.819,91
151.495,69
* Share split recalculated for previous periods.
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.
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.
Graphics
Business report
6
Report of the Management Board
Cinkarna Celje d.d., a modern and forward-looking chemical company, has entered its 150th year 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 and the dynamics of the pigment industry.
In 2023, we realised 22% lower sales than in 2022, mainly due to lower sales volumes and, to a
lesser extent, lower average selling prices for titanium dioxide pigment. European pigment producers
are facing lower demand, partly due to cheaper Chinese imports, partly due to unused inventory,
and partly due to lower demand for pigment-embedded products. This is particularly evident in the
construction sector and the do-it-yourself (DIY) segment. The consideration of possible anti-dumping
measures and the logistical hurdles in the Red Sea towards the end of the year prompted some
European buyers to consider changing their sourcing strategies.
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 is an indispensable raw material in the modern world, and we are
committed to its further development and continuous quality improvement, as well as exploring its
use in sustainable applications.
We estimate that the achieved operating results are in line with the forecasts for the period. 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 potentials within the given
framework, both in terms of level and time dynamics. In the market conditions at the end of the
year, we adjusted our production volumes to market needs. The period of reduced production was
used to a greater extent to carry out major overhauls or maintenance work.
We are committed to a long-term business strategy based primarily on an active marketing approach
to find and develop the most profitable customers and markets, to increase market share in the
highest quality markets, and to build long-term partnerships with key customers. We plan to adopt
a more restrictive policy in the management of material, raw material, energy and service costs. At
the same time, we recognise that employees are the most 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 or the
quality of its results.
Sentiment indicators point to weak momentum in economic activity. Economic growth in the euro
area is expected to be slightly stronger over the next two years. This will be driven by a further
gradual decline in inflation, low unemployment and strengthening private consumption. Changes in
forecasts and scenarios will be largely linked to developments in the conflicts in the Middle East and
Ukraine.
The macroeconomic situation mentioned above, in the context of the specific markets and products
of Cinkarna, means that we are facing weaker demand and sentiment. In addition to European
pigment supply, very low-priced volumes from Asia emerged in 2023, linked to the downturn in
construction activity and the bankruptcy of the largest property developer in China. The unravelling
or redevelopment has not yet had a clear impact on Chinese demand for pigment. The difference
between the selling price in China and Europe has been at historically high levels over the last two
years. Recently, the Red Sea conflicts have increased the cost of container transport between Asia
and Europe, which is helping to improve somewhat the competitiveness of pigment of European
origin. We are closely monitoring these factors and adjusting our marketing activities accordingly.
Nevertheless, we estimate that weaker demand and price pressure will continue in the coming
quarters. In parallel, the prices of some key raw materials are at high levels or are declining only to
a lesser extent, resulting in a similar profit margin to that which would have been achieved in 2023
without taking into account the State aid for energy products. In view of these facts, we formulated
a plan for 2024 which takes into account the weaker performance and the increased capital
expenditure in the energy and sustainability transformation.
Graphics
Business report
7
The main emphases of the Company's business policy remain unchanged. We focus on maximising
production capacity, exploiting market potential to sell products with higher added value, optimising
production costs and implementing investment plans. Financial management is traditionally
conservative and the Company is financially stable.
Cinkarna Celje d.d. generated sales revenues of EUR 176.5 million in the period under consideration,
22% less than in 2022. The total value of exports reached EUR 161.6 million in the period under
consideration. Net profit amounted to EUR 12.7 million, 71% lower than the EUR 43.4 million
achieved in the comparable period of the previous year. Operating profit plus depreciation and
amortisation, or EBITDA, amounted to EUR 25.1 million, representing 14% of sales. EBITDA is down
62% year-on-year.
In the area of employee relations and human resources management, we are focusing on optimising
the organisational structure, with the aim of ensuring the smooth operation of the Company and, as
a result, the conditions for maximum safety and health for our employees. We follow the principle of
a positive and motivating remuneration policy and of ensuring an appropriate level of employee
satisfaction and motivation. We implement IT support for competence development and
improvement of the organisational climate. At the end of 2023, we presented a project to the social
partners to renew the competency and pay model. The aim is to have a modern system that will be
co-designed by employees and will provide the basis for the Company's future growth.
In 2023, we spent EUR 19.8 million on investments in tangible and intangible assets, acquisition of
fixed assets and replacement equipment. We invest in programmes that show growth potential. Our
investments in production are primarily aimed at reducing operating costs, ensuring profitable
volumes of volume production, and achieving higher quality, regulatory compliance and energy
sustainability.
Our development activity follows a five-year strategy. At the end of 2023, we approved our strategy
for the period 2024-2028, which is based on four pillars: sustainable development, energy
transformation, increasing capacity and product quality, and digitalisation. Development activities
were carried out according to the perceived opportunities in the areas of our expertise, trends and
customer expectations.
We have a number of interlinked projects to manage spatial and environmental risks in a
comprehensive way. The most important of these are: the alternative water supply project, the
harmonisation of zoning acts at the Za Travnikom Red Gypsum Filling Plant, the remediation of the
Bukovžlak Non-Hazardous Waste Landfill (ONOB) and ensuring the stability of barrier structures.
All our activities are planned and implemented with the principles of sustainable development and
the circular economy in mind. In the context of ensuring the sustainable development of titanium
dioxide production, we continued with our multi-year development project on integrated water
management and waste minimisation. We also set up and implemented new activities in the areas
of carbon footprint reduction, use of renewable energy and re-use of materials. We drafted an ESG
strategy with a particular focus on climate strategy, which will be complemented in 2024 with the
requirements of the ESRB standards.
The rich and at times dramatic history of Cinkarna Celje speaks eloquently about the exceptional
ability of its leaders to identify challenges in time and to courageously find the right answers in
challenging 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 objectives to which we are
currently still seeking answers. This visionary optimism has become part of our DNA over the years.
The following sections of the report provide more detailed information by business area, as well as
an overview of the Company's financial position and performance.
Management Board of Cinkarna Celje d.d.
Graphics
Business report
8
Report of the Supervisory Board of Cinkarna Celje d.d.
In 2023, the Supervisory Board met and took decisions at six meetings, five of which were ordinary
and one of which was a correspondence meeting. 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 diligently fulfilled and exercised
our powers, duties and responsibilities. We considered the materials submitted, the presentations
made, the specific clarifications and explanations provided, and organised and conducted interviews
with individual external experts. We 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 acted diligently in its work, in accordance with the law and in
accordance with the best conscience and knowledge of the individual, thereby adequately
safeguarding the interests of the Company and its shareholders.
At the end of 2023, the Supervisory Board of Cinkarna Celje d.d. was composed of Dr. Mario Gobbo
– Chairman, Luka Gaberščik, Univ. Dipl. in Law – Deputy Chairman, Mag. David Kastelic, Mitja
Svoljšak, Aleš Stevanovič and Jože Koštomaj, Mech. Eng., the latter two appointed by the Works
Council.
The Supervisory Board devoted time and attention to reviewing current operations, investments,
business plans and regular internal audit activities. 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 the setting of the new strategic business plan for the period 2024-2028.
The efforts of the employees and the Management Board in an exceptional situation resulted in good
results in 2023. The Company maintained its market shares despite the challenging market
conditions and actively pursued new opportunities in industries and markets. In 2023, investment
realisation was 97% of the planned value. The total value of investments thus amounted to EUR 19.8
million, mainly for the production of titanium dioxide pigment to improve product quality, ensure the
planned volume production and reduce environmental impacts. The Company traditionally follows a
strategy of conservative financial management, operating without long-term borrowings or external
financial resources, and is therefore financially stable and sound.
In November 2023, we discussed and adopted our business plan for 2024, based on relatively
pessimistic macroeconomic forecasts and with traditional conservatism. The sales plan amounts to
more than EUR 186.6 million and the planned net profit to EUR 4.0 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 is appropriately formulated and that it
adequately reflects both the situation in the business environment and the competitive situation, and
the Company's potential for generating results.
The focus will therefore continue to be on improving or raising the competitive position, increasing
market shares and increasing the physical volume of business. 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 were also
successful in implementing the investment plans and targeted development work. The efficient
operation, sustainability and stability of the system provide an answer to its long-term prospects.
The main lines of business and development of the Company, as set out in the medium-term strategy,
were implemented to a high standard at the most important points. In 2018, the Supervisory Board
was involved in the preparation and adoption of the development strategy until 2023. A key focus of
this strategy was 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
Graphics
Business report
9
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, on the proposal of the Audit Committee of the Supervisory Board, the Supervisory
Board approves the Annual Report of Cinkarna Celje d.d. for 2023.
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 2023 and
verification of the Annual Report of Cinkarna Celje d.d. for 2022
The Audit Committee of the Supervisory Board of Cinkarna Celje d.d., composed of Mag. David
Kastelic – Chairman, Jože Koštomaj – Member, and Gregor Korošec – Independent External Expert
held five regular meetings in 2023. The Audit Committee members focused on their regular and
ongoing tasks and responsibilities.
Members of the Audit Committee were present at all meetings. Aleš Skok, President of the
Management Board, and Karmen Fujs, Head of Accounting, were also present at the meetings to
present documents and to answer or clarify questions from members. Two of the meetings were
attended by two certified auditors, Sanja Košir Nikašinović and Lidija Šinkovec, from Ernst & Young
d.o.o. The Head of Internal Audit, Mateja Rupnik, was also present at the meetings.
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 internal
audit reports, 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 adequately integrated into the Company's
business processes in 2023. This significantly improves 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 Committee assessed the system
as satisfactory.
In accordance with its responsibilities, the Audit Committee was active in the regular audit procedures
of Cinkarna Celje d.d. in 2023. The main activities were:
− Meeting with the auditors and taking note of the progress of the final audit of the financial
statements of Cinkarna Celje d.d. for 2022;
− Taking note of the findings of the audit of the financial statements of Cinkarna Celje d.d. for
2022 and the auditor's opinion;
− Taking note of the management letter on the findings of the audit of the financial statements
of Cinkarna Celje d.d. for the year ended 31 December 2022.
Graphics
Business report
10
The meetings and activities in 2023 were aimed at familiarisation with the final audit of the Company's
financial statements for 2022, review of the Annual Report of Cinkarna Celje d.d. and review of the
annual internal audit report, as well as familiarisation with the periodic reports for the financial year
2023. In 2023, the Internal Audit Department performed all internal audit tasks successfully and in
accordance with its plan, and reported to the Audit Committee on an ongoing basis.
The Audited Annual Report of Cinkarna Celje d.d. for 2023 was received and examined by the Audit
Committee at its meeting. The Audit Committee concluded that the Annual Report of Cinkarna Celje
d.d. for 2023 was prepared in accordance with International Accounting Standards and the provisions
of the Slovenian Companies Act.
The business section of the Annual Report of Cinkarna Celje d.d. provides a concise overview of the
business in 2023, including a comparison with previous years. The analysis of results and operations
provides a detailed picture of the Company's financial position, with full explanations of assets and
resources, sales, operating result, expenses and costs.
The annual report also contains a statement of non-financial performance, which includes the
required information on social responsibility, the environment, human resources, and anti-corruption
and anti-bribery.
The financial statements of Cinkarna Celje d.d. for 2023, together with the accounting policies and
notes thereto, were audited by Ernst & Young d.o.o. and approved by the General Meeting of
Shareholders of the Company at its 23rd Ordinary Meeting held on 4 June 2019. The auditor issued
a positive opinion on the financial statements of Cinkarna Celje d.d. for 2023 and also confirmed that
the information in the business report is consistent with the accompanying financial statements. In
the auditor's 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 14.2 million as at 31 December 2023, which were
established on the basis of projects developed, reports prepared and estimates made by
external consultants and management of the costs that will be incurred in the remediation
of landfill sites and the coverage of future liabilities.
• Note 21 - Other operating income, where it is disclosed that in the financial year 2023, the
company recognized subsidies for mitigating the growth of energy prices in the amount of
7.6 million euros as part of other operating income. Revenues recognized from subsidies for
mitigating the growth of energy prices, based on the Act Governing Aid to Businesses to
Mitigate Impact of Energy Crisis (ZPGOPEK), are important due to their impact on the
company's net profit in the current financial year. All conditions for their recognition are met.
Based on the positive opinion in the auditor's report, additional explanations provided by the auditor
and Cinkarna Celje d.d.'s professional services, and the information and disclosures in the Annual
Report of Cinkarna Celje d.d. for 2023, the Audit Committee is of the opinion that the Annual Report
was 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 the Company as
at 31 December 2023 and the results of its operations and its cash flows for the year then ended in
accordance with International Financial Reporting Standards.
The Audit Committee considers that the auditor acted impartially and independently and in
accordance with the Audit Act. The auditor will provide the Company with the service of reviewing
the European Single Electronic Format (ESEF) Report and will also review the Remuneration Report
of the Company's Management and Supervisory Bodies.
The Audit Committee reported to the Supervisory Board on the outcome of the statutory audit and
explained that the statutory audit contributed to the integrity of the financial reporting. The Audit
Committee has no comments on the Annual Report of Cinkarna Celje d.d. for 2023 that would in any way
Graphics
Business report
11
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 2023 in accordance with Article 282 of the Companies Act (ZGD-1).
Chairman of the Supervisory Board
Dr Mario Gobbo
Graphics
Business report
12
Internal audit report
Internal auditing at Cinkarna Celje d.d. is performed by the Internal Audit Department, which is an
independent organisational unit, organisationally responsible to the Management Board and
functionally to the Audit Committee and the Supervisory Board of the Company. In his/her work, the
Head of the Internal Audit Department complies with the International Standards for the Professional
Practice of Internal Auditing and other rules included in the hierarchy of internal auditing rules.
He/she acts in accordance with the Charter and is guided by the principles of impartiality,
professionalism, professional diligence and independence. The Department's role is to provide
independent and impartial assurance and advice, focusing on the Company's key risks and on areas
where it can contribute to the improvement of the Company's performance, the transparency and
reliability of information and the achievement of the Company's objectives.
In 2023, the internal audit activities were interrupted due to staff changes. The work was based on
an approved annual plan and all six planned internal audits were carried out in accordance with this
plan, one with the involvement of an external expert. The engagements carried out resulted in
recommendations, evaluated according to risk levels, which are subject to regular monitoring and
verification of their implementation. The implementation of internal audit recommendations
contributes to improving the internal control systems in place and their functioning. The results of
the audits were regularly reported to the responsible auditors and to the Management Board. The
audits carried out, significant findings and the implementation of recommendations were reported
periodically to the Audit Committee and the Supervisory Board.
In addition to the assurance engagements, other internal audit activities were carried out in 2023,
such as regular follow-up of the implementation of recommendations from the previous and current
period, a management succession activity, the preparation of the annual plan for 2024, and the
provision of regular training. Activities in the form of internal audits were carried out as part of the
quality assurance and improvement programme and the last external quality audit of the Department
was carried out in 2022.
Mag. Mateja Rupnik,
Head of the Internal Audit Department
Graphics
Business report
13
Highlighted events in 2023
European Coatings Show 2023
At the European Coatings Show 2023 in Nuremberg, Germany, we strengthened our market presence
with our most important product group (titanium dioxide).
150th anniversary celebrated with a commemorative exhibition of Pelikan's photographs
In the photographs on display, photographer Josip Pelikan depicts the motifs of life and work in the
factory in the years from 1920 to 1970, when he settled in Celje. As the Company transformed over
150 years from a predominantly metallurgical to a chemical company, the motifs of the long-gone
zinc smelter with its old rolling mill, the production of lead oxide, better known as minium, zinc
bleach, lithopone and copperas are of particular interest.
Open Doors Day
The Open Doors Day in 2023 was held under the slogan Our products in your home. Using a 3D
house simulation, we showed visitors where all the Company's products are in the objects we all
have at home. Visitors were pleasantly surprised by what they saw. In addition to the Company's
management, the gathering was addressed by the Deputy Mayor of Celje, Uroš Lesjak, and in Mozirje
by the Mayor of Mozirje, Ivan Suhoveršnik. In Celje, the visitors were taken by bus through the
production site to Za Travnikom, and by train to Cinkarna's exhibition through the lens of Mr Pelikan.
16th Competition
The aim of the competition was to encourage the search for the most original solutions to show how
water works on our planet, and to bring the best idea to life or make it so that it could be tested later
by all visitors to Tehnopark Celje. More than a thousand pupils from the Celje region take part in the
Cinkarna Celje competition every year, and as such it is certainly one of the most visible in the
region.
Staff-organised "An Hour for Culture"
Painter Amina Kolarič, photographer Dušan Mastnak, sculptor Ilija Kelavić and writer Bojan
Ekselenski joined forces in the exhibition An Hour for Culture. By presenting original artworks and
accompanying short stories, the amateur artists, who share the commonality of being our colleagues
in the morning, conveyed a message about culture as the foundation of interpersonal relations. The
artists celebrated the Company's 150th anniversary in the language of art.
Platinum Certificate of Rating Excellence 2023
The certificate shows that the Company has an excellent track record of performance and payment
discipline over the last five years, and has a very low probability of going bankrupt, going into
receivership, having a blocked transaction account or being listed as a tax defaulter in the next 12
months.
Graphics
Business report
14
Presentation of Cinkarna Celje d.d.
Cinkarna Celje d.d., with its 150-year tradition of continuous operation, 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. now operates in the chemical processing industry.
Company
Cinkarna, metalurško-kemična industrija Celje, d. d.
Short name
Cinkarna Celje, d. d.
Headquarters
Kidričeva ulica 26, 3000 Celje, Slovenia
Telephone – Central Office
03 427 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
Ownership
03 837 09 00
Presented in the financial report
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
Graphics
Business report
15
Organisational structure
The organisational structure comprises the Company's management, six business units and 11
professional departments.
From 2024, BU Metalurgija is no longer included in the organisational structure. The Marketing
department was reorganised into Marketing and Procurement & Logistics at the end of 2023.
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, Head of Finance
− Marketing: Irena Franko Knez, Director
− Procurement & Logistics: Dejan Skok, 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 Department: Mateja Rupnik, Head of Department
Graphics
Business report
16
Activities, value chain and other business relationships
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 and sales programmes which did
not meet the profitability or performance criteria.
Our major product and sales programmes are:
− titanium dioxide (TiO
2
) production;
− sulphuric acid production;
− zinc processing, covering zinc alloys, anodes and zinc wire;
− manufacture of agricultural products, including plant protection products and growing media;
− production of masterbatches and powder varnishes;
− a group of fluorinated polymers and elastomers whose properties make them useful for the
transport of aggressive media and the protection of process and hardware equipment;
− intermediates of titanium dioxide pigment production: titanyl sulphate, metatitanic acid and
sodium titanate;
− by-products of titanium dioxide pigment production: white gypsum CEGIPS and red gypsum
RCGIPS (47% : 53%, calculated on the dry matter of these by-products).
Figure: Production process
The core product and sales group is 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-
Graphics
Business report
17
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 83% of our
total turnover.
Plant protection products are a very important sales group, as they are 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 varnishes 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 metalware. 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. CEGIPS, the so-called white gypsum, is sold on the cement and plasterboard markets
and for agricultural use. The RCGIPS by-product is used entirely for dry filling at the Za Travnikom
Waste Disposal Facility. Given its properties, it can be used for backfilling in low-rise construction,
low-rise embankment construction and the construction of cover layers.
Chart: Share of value sales by product group in 2023
In terms of end use, paints (including decorative paints) and varnishes comprise the largest value
sales chain of Cinkarna Celje d.d. Together they account for 60% of sales. This is followed by plastics
and the incorporation of titanium dioxide pigments into other building materials. Other areas are less
well represented in terms of sales. Paints and varnishes, plastics and building materials account for
the majority of titanium dioxide sales. Our sales product does not go to end-users, but to companies
that process the product to a finished product.
Graphics
Business report
18
Chart: Share of sales by end use for 2023
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 most important markets as EU Member States (excluding
Slovenia), followed by the domestic market (Slovenia), the so-called third world countries and the
markets of the former Yugoslavia (excluding Croatia and Slovenia).
The countries where we have the largest presence and a sales share of more than 1% are: Germany
(26%), Italy (11%), France (10%), Slovenia (8%), Turkey (7%), Poland (5%), the Netherlands
(3%), Greece (2%), Croatia (2%), Hungary (2%), Austria (2%), Serbia (1%), USA (1%), Sweden
(1%), Spain (1%), Romania (1%) and Denmark (1%).
As a share of value sales by market, sales to the EU market (excluding Slovenia) account for the
majority.
Map of presence in a market where the share of sales is more than 1%
Graphics
Business report
19
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. 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
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 Slovenian Act 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 the 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 the members of the
Management Board is up to five years, with the possibility of reappointment. The members of the
Management Board take their 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 may be a
person who fulfils two other conditions, namely that he or she has 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 the Chief Executive Officer. Conflicts of interest of the members of
the Management Board are defined by sectoral legislation, according to which the members of the
Management Board are obliged to disclose conflicts of interest upon taking office and thereafter
whenever such circumstances potentially arise. The interrelationships, powers and responsibilities
are set out in the Company's Articles of Association and the Rules of Procedure of the Management
Board.
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 resolutions adopted 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 2023:
− 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 headquartered, representing two thirds of the board.
The Supervisory Board is composed of six members. All members of the Supervisory Board have the
same rights and responsibilities. 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
Graphics
Business report
20
Shareholders. A member of the Supervisory Board cannot be a person who is a member of the
Management Board, a 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 interests, 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 a procuration, etc.
Meetings of the Supervisory Board are convened by the Chairman 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 meets, as
a rule, five times a year.
Members of the Supervisory Board of Cinkarna Celje d.d. as at 31 December 2023:
− Mario Gobbo, Chairman, appointed by the General Assembly,
− Luka Gaberščik, appointed by the General Assembly,
− David Kastelic, appointed by the General Assembly,
− Mitja Svoljšak, appointed by the General Assembly,
− Aleš Stevanovič, appointed by the Works Council,
− Jože Koštomaj, appointed by the Works Council.
In 2023, the proportion of women on the Management Board was one-third. There were no women
on the Supervisory Board. Both the composition of the Management Board and the composition of
the Supervisory Board aim at heterogeneity in terms of professional profile, gender and age.
The Management Board appointed an Ethical Business Conduct Committee, composed of Filip
Koželnik, Marko Cvetko and Gregor Gajšek. In 2023, the Committee did not meet due to the absence
of reports or cases related to its work.
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), Aleš Stevanovič, Luka Gaberščik and Mitja Svoljšak.
The Audit Committee:
− Monitors the financial reporting process and makes recommendations and proposals to
ensure its integrity;
− Monitors the effectiveness and efficiency of the Company's internal control, internal audit
and risk management systems;
− Monitors the statutory audits of the annual accounts, in particular the performance of the
statutory audit, taking into account any findings and conclusions of the competent authority;
− Reviews and monitors the independence of the auditor of the Company's annual report, in
particular with regard to the provision of additional non-audit services;
− Is responsible for the auditor selection process and proposes to the Supervisory Board the
appointment of a candidate as auditor of the Company's annual report;
− Monitors the integrity of the financial information provided by the Company;
Graphics
Business report
21
− Assesses the drafting of the annual report, including the drafting of the proposal to the
Supervisory Board;
− Is involved in the identification of major audit areas;
− Participates in the drafting of the contract between the auditor and the Company, subject to
the prohibition of any contractual provision that restricts the choice of the auditor's
appointment by the General Meeting. All such provisions are null and void;
− Reports to the Supervisory Board on the outcome of the statutory audit, including an
explanation of how the statutory audit has contributed to the integrity of the financial
reporting and what role the Audit Committee has played in this process;
− Performs any other tasks set out in the Statutes or by resolution of the Supervisory Board;
− Cooperates with the auditor in the audit of the Company's annual report, in particular by
informing each other of the main matters relating to the audit;
− Cooperates with the internal auditor, in particular by informing each other of the main
matters relating to the internal audit.
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.
Key policies, standards and other corporate governance documents include:
− Code of Ethics for Procurement (2023)
− Code of Ethical Conduct and Practice (2015)
− Policy on the Prohibition and Prevention of All Forms of Workplace Violence, which replaced
the Policy on the Prohibition of Sexual and Other Harassment and Workplace Bullying (2023)
− Information Security Policy of Cinkarna Celje (2021)
− Diversity Policy (in preparation, expected 2024)
Procedure for determining the remuneration of members of
management and supervisory bodies
The remuneration of the members of management bodies is defined in individual employment
contracts, which are drawn up taking into account the remuneration policy, legislative constraints,
best practice guidelines and the definitions in the Articles of Association. 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 policy. The
remuneration and allowances of the members of the Supervisory Board are determined by resolutions
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.
Graphics
Business report
22
Point 5.6 – The compliance of the components of the Governance Statement with the provisions of
ZGD-1 was verified by the external auditor as part of the regular audit. No additional external
compliance audit was 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 from Slovenia.
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 services. Public announcements
(SEOnet and the Company's websites) comply with legal requirements and contain information that
enables an investor in securities to assess the situation and to evaluate the impact of a business
event on the price of securities.
Code of Ethical Conduct and Practice
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 Ethical Conduct and Practice. 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 for
members of the Management Board and senior executives as well as for all other employees. Any
breach of the ethical criteria is sanctioned accordingly. In case of ambiguity about the Code, doubts
regarding 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 documents. Employees are obliged to refrain from any conduct that materially or morally
damages the business interests and reputation of the Company.
Graphics
Business report
23
If employees know of or receive information about violations or actions that could lead to violations
of the Code of Ethical Conduct and Practice, they must report them to their superior or report them
anonymously by providing the information:
− to razkritja@cinkarna.si,
− in writing to the address of the Management Board, or
− in the mailboxes provided for this purpose.
The Management Board immediately 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.
A Policy on Diversity of Management and Supervisory Bodies has been developed but not yet
adopted. The aim is to optimise the performance of these bodies in order to enhance 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.
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, expected in April 2024, the policy will be published on the Company's website and on
the SEOnet portal.
Respect for 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 2023.
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 give information. The Representative is a
trusted person to whom a person/victim who has suffered sexual or other harassment and ill-
Graphics
Business report
24
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 field of sports.
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:
− 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,
Graphics
Business report
25
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 the adopted core charter, rules of
procedure and plan, it has been fully operational since 2017. Its purpose is to review and assess the
adequacy and effectiveness of the system of internal controls in achieving the Company's significant
objectives by performing internal audit engagements.
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:
− 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
Graphics
Business report
26
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.
Figure: Interdependence of impacts between Cinkarna Celje d.d. and key stakeholders that can
contribute to sustainability
The commitment to sustainability is set out in the Policy on Quality Assurance, Environmental, Health
and Safety Management and Sustainable Development, the Code of Ethical Conduct and Practice and
the Integrated Management System Rules of Procedure, which are drawn up by the responsible
departments and approved by the Company's Management Board. The Management Board appointed
a Sustainable Development Team to assess impacts, prepare the basis for the strategy and for
reporting.
The Management Board and the Supervisory Board are involved in compliance monitoring and
processes to identify and manage the environmental, social and governance impacts of Cinkarna
Celje in the context of risk management systems, framework and performance targets, and to
communicate the results of audits, inspections and assessments.
Top management delegates responsibility for managing impacts to the responsible persons of each
organisational unit within the company, either by means of a job description or by delegation. Non-
conformities identified in audits, inspections and assessments are addressed in the relevant
organisational units or processes. The implementation of the correction is monitored by the
Management Board and the Supervisory Board through the reporting system. The Management
Board and the Supervisory Board communicate directly with stakeholders or authorise the
responsible departments to do so.
The effectiveness of the organisation's processes is reported to the Management Board and the
Supervisory Board:
− once a year at the annual management review,
− three times a year at the wider Expert Panel 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 business unit and department minutes.
At Cinkarna Celje d.d., we follow and comply with all legal obligations under national and European
regulations. 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
Graphics
Business report
27
discoveries and audits by the Internal Audit Department. Appropriate action is taken in response to
the findings.
Management Board
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
Graphics
Business report
28
Statement of non-financial performance
Responsible management that respects and pursues the sustainable development objectives applies
to the entire Company's business and is reflected in the way it relates to the social and natural
environment. In 2023, we embarked on a more comprehensive journey to align our business with
sustainable development considerations and have taken into account the Environment, Society and
Governance (ESG) areas in our Business Strategy for the next five-year period 2024-2028. We
recognise that identifying and effectively managing the risks associated with climate change is a key
aspect of our short- and long-term performance and an important consideration in 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. We are
preparing to report in line with the European Sustainability Reporting Standards (ESRS) and are
working on a sustainability strategy, where we will also address our climate change adaptation and
mitigation objectives.
Governance bodies are actively involved in setting and implementing policies and are responsible for
ensuring that sustainability is a driver of development and 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 recognising the impact on the social and natural environment.
At Cinkarna Celje, the Sustainability Review is an integral part of the integrated management system
review, which identifies, prevents, mitigates and addresses actual and potential negative impacts on
the environment and people (including human rights) associated with our operations. These include
both negative impacts directly related to our own activities and (potentially) negative impacts of our
products or services through business relationships.
The Sustainability Review responds to changes in the Company's activities, business relationships,
operations, procurement and sales approach.
In the company-wide report, we disclose the following aspects of the Sustainability Review:
− all risk areas (section “Managing risks and opportunities”),
− integrated management system audits - internal and external and other reviews (section
“Integrated management system”),
− review of employee engagement and satisfaction (section “Own workforce”),
− ISO 14000 supplier review (section “Value chain and value chain workers”),
− customer satisfaction review (section “Consumers and end-users”),
− environmental review (section “Environmental aspects”).
Our own expectations and those of external stakeholders were tested in 2022 using a materiality
matrix. In 2023, an assessment was made of possible changes in circumstances, which did not affect
the 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. The
stakeholders and the materiality matrix are presented in more detail in the section “Stakeholder
relations”. However, we are still working on identifying all the important indicators.
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 staff 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 section “Employee relations”.
Graphics
Business report
29
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 section “Occupational health and safety”.
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 management and excessive noise. We also
included other sustainability indicators in the assessment, which take into account the areas of
environment, society and governance (ESG) and are laid down in the Code of Sustainable Business
for Business Partners. Our key supplier groups and how we assess our supply chain are set out in
the section “Value chain and value chain workers”.
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 on our core product,
titanium dioxide pigment, and other ancillary programmes such as copper fungicides and polymers.
Our customer relations, new product development and complaints handling are described in the
section “Customers”.
We recognise the importance of developing the local environment in which we operate, which is why
we invest in sport and culture and provide practical training for young people. We take part in socially
responsible activities in the local environment and support the most vulnerable groups. We regularly
communicate with external professionals and the general public and build good neighbourly relations,
including through participation in various events, open doors 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 section “Community relations”.
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 re-use 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 the 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 a voluntary commitment to ensure
continuous improvements in environmental protection, health and safety at work, often going beyond
what is required by law. 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 EMAS environmental management and audit
scheme at the Kemija Mozirje site. We also regularly comply with legislative requirements in the
environmental field.
Graphics
Business report
30
Report on environmentally sustainable economic activities and
investments of Cinkarna Celje d.d. for 2023
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,
Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021, and amending Regulation (EU)
2019/2088). The disclosure of information relates to Commission Delegated Regulation (EU)
2023/2486 of 27 June 2023 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 the sustainable use and
protection of aquatic and marine resources, the transition to a circular economy, the prevention and
control of pollution or the protection and restoration of biodiversity and ecosystems, and for
determining whether that economic activity does not significantly harm any of the other
environmental objectives, and amending Commission Delegated Regulation (EU)2021/2178 as
regards specific public disclosures for those economic activities.
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
and a commitment to decarbonisation. Nor does it mean 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, sulphuric acid, with which the Company also
seeks its opportunities for taxonomically aligned revenues in terms of so-called enabling activities.
For the disclosures and the presentation of the indicators, we used the formats set out in EU
Regulation 2023/2486.
In calculating the indicators shown in the tables, care was taken to ensure that there was no
duplication in economic activities that make a significant contribution to multiple environmental
objectives.
The taxonomically aligned activities shown in the first table are:
• Collection and transport of non-hazardous waste 5.5
• Material recovery of non-hazardous waste 5.9
• Manufacture of equipment for the production and use of hydrogen 3.2
• Photovoltaic power generation 4.1
The largest share of taxonomically aligned activities as a proportion of revenue is generated by the
material recovery of non-hazardous waste, which is down by just over 4% compared to the 2022
benchmark year. This is clearly due to reduced volume production, which is also evident from the
Kemija Celje performance statement. The problems with the distribution of our products are largely
due to unforeseen adverse weather phenomena (droughts, floods, storms, etc.), the general
economic and political climate in the country and beyond, as well as a partial loss of market. The
collection and transport of non-hazardous waste showed a positive trend, with an increase of 1.22
percentage points. Progress was recorded in the production of equipment for the production and use
of hydrogen. We have been present in this field for a shorter period, but comparative indicators show
a growing demand and an increasing market share. Significant growth is reflected in the production
of energy using photovoltaic technology. The fact that we are investing relatively large amounts of
money in the construction of solar power plants and will continue to do so in the future has a
Graphics
Business report
31
significant impact on the calculation of the percentage as a share of total revenue. This indicator is
2.08% higher than in the previous period. All figures are also presented in more detail in the financial
disclosures and the targets for future periods in the business section of this report.
Graphics
Business report
32
Table: Share of revenues from products or services related to economic activities aligned with the taxonomy – 2023 disclosure
Financial year
2023
Criteria for material contribution
Criteria for non-material contribution (
h
)
Economic
activities (1)
Code (
a
)(2)
Revenue (3)
Revenue
share, 2023
Mitigating climate
change (5)
Adapting to climate
change (6)
Water (7)
Pollution (8)
Circular economy
(9)
Biodiversity (10)
Mitigating climate
change (11)
Adapting to climate
change (12)
Water (13)
Pollution (14)
Circular economy
(15)
Biodiversity(16)
Minimum protection
measures (17)
Share of
revenues
aligned with the
taxonomy (A.1)
or acceptable for
the taxonomy
2023
Share of
revenues
aligned with the
taxonomy (A.1)
or acceptable for
the taxonomy
2022
Enabling
activity
category
(19)
Transitional
activity
category
(20)
Text
NACE
EUR
%
YES;
NO;
N/A
(
b
)
(
c
)
YES;
NO; N/A
(
b
) (
c
)
YES;
NO;
N/A
(
b
) (
c
)
YES;
NO;
N/A
(
b
)
(
c
)
YES;
NO;
N/A
(
b
) (
c
)
YES;
NO;
N/A
(
b
) (
c
)
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
%
%
E
T
A. ACTIVITIES ACCEPTABLE FOR THE TAXONOMY
A.1 Environmentally sustainable activities (aligned with the taxonomy)
Collection and transport
of non-hazardous waste
E38.11
89,948
0.05%
NO
YES
N/A
N/A
YES
N/A
/
/
NO
YES
NO
NO
YES
2.87
1.65
/
/
Material recovery of non-
hazardous waste
E38.11F42.99
2,889,260
1.64%
NO
YES
N/A
N/A
NO
NO
/
/
NO
NO
NO
NO
YES
92,13
96,30
/
/
Manufacture of
equipment for the
production and use of
hydrogen
C28.14
63,098
0.04%
NO
YES
N/A
N/A
N/A
NO
/
/
/
/
NO
NO
YES
2,01
1.14
E
/
Production of energy
using photovoltaic
technology
D35.11
F42.22
93,628
0.05%
NO
YES
N/A
N/A
NO
N/A
/
YES
NO
/
NO
/
YES
2.98
0.90
/
/
Revenue from environmentally sustainable
activities (aligned with the taxonomy) (A.1)
3.135.934,00
1,78%
100
0%
0%
0%
0%
0%
YES
YES
YES
YES
YES
YES
YES
100%
100%
Of which enabling
63.096
0.04%
NO
0%
0%
0%
0%
0%
/
/
/
/
NO
NO
YES
2,01%
1,14%
E
Of which transitional
0
0%
NO
0%
0%
0%
0%
0%
/
/
NO
/
/
NO
YES
0,00%
0.00%
T
A.2 Activities that are acceptable for the taxonomy but are not environmentally sustainable (activities not aligned with the taxonomy) (
g
)
SP;
N/A
(
f
)
SP; N/A
(
f
)
SP;
N/A (
f
)
SP;
N/A
(
f
)
SP;
N/A (
f
)
SP;
N/A (
f
)
/
/
0
0.00%
/
/
/
/
/
/
0%
Revenue from activities that are
acceptable for the taxonomy but are not
environmentally sustainable (activities
not aligned with the taxonomy) (A.2)
0
0.00%
0%
0%
0%
0%
0%
0%
0%
A. Revenue from activities
acceptable for the taxonomy (A.1 + A.2)
3,135,934,00
1.78%
0%
0%
0%
0%
0%
0%
0%
B. ACTIVITIES UNACCEPTABLE FOR THE TAXONOMY
Revenue from activities unacceptable
for the taxonomy
173,268,778
98.22%
TOTAL
176,404,712,00
100 %
Graphics
Business report
33
Share of investments in fixed capital in products or services related to economic activities
aligned with the taxonomy
The taxonomically aligned activities for investments in fixed assets are as follows:
• Energy production through photovoltaic technology 4.1
• Installation, maintenance and repair of energy efficient equipment 7.3
• Data processing and data hosting 8.1
The increase in the percentage of investments in fixed assets of the taxonomically aligned activities
is in the case of investments in the construction of solar power plants, which represents an increase
of 17.64% and accounts for 93.28% of total investments. In energy-intensive economic activities,
the supply of green energy is not only important in terms of reducing energy costs, but also in terms
of reducing the carbon footprint, energy consumption is also important in terms of reducing energy
costs. Green energy consumption aims to adapt production processes so that the largest electricity
consumers are switched on at the times of the day when the most energy is available and at the
lowest cost. This adaptation requires a great deal of organisational know-how, adapting to market
conditions, customer preferences and purchasing channels. A negative trend is seen in the
installation, maintenance and repair of energy efficient equipment such as energy efficient drive
motors and frequency controllers. This share is down by 57%. This is due to the gradual replacement
of a large number of drive installations, which can be carried out at the time of breakdowns and
planned overhauls. The share of investments is also lower than in the comparable period for
investments in data processing and data hosting, where there were no planned purchases or other
investments in the year under review.
SHARE OF INVESTMENTS IN FIXED ASSETS IN PRODUCTS OR SERVICES RELATED
TO ECONOMIC ACTIVITIES ALIGNED WITH THE TAXONOMY
The table on investments in working capital shows that the trend for the activity Non-hazardous
waste recovery (5.9), which is aligned with the taxonomy, is negative compared to the previous
reporting year. Similarly to the share in revenue, this is due to a decrease in volume production and
thus lower consumption of basic raw materials and processing materials. Despite the difficult
economic situation, we are planning a significant increase in both volume production and planned
sales, which will undoubtedly have a positive impact on the calculations of investment ratios in the
coming reporting year.
Graphics
Business report
34
Table: Share of fixed asset investment in products or services related to economic activities aligned with the taxonomy – 2023 disclosure
Financial year
2023
Criteria for material contribution
Criteria for non-material contribution (
h
)
Economic activities (1)
Code
(
a
)(2)
Investments
in fixed
assets (3)
Share of
investments
in fixed
assets (4)
Mitigating climate change (5)
Adapting to climate change (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Mitigating climate change (11)
Adapting to climate change (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity(16)
Minimum protection measures
(17)
Share of
investment in
fixed assets
aligned with
the
taxonomy
(A.1) or
acceptable
for the
taxonomy
(A.2), 2023
Share of
investment in
fixed assets
aligned with
the
taxonomy
(A.1) or
acceptable
for the
taxonomy
(A.2), 2022)
Enabling
activity
category
(19)
Transitional
activity
category
(20)
Text
NACE
Currency
%
YES;
NO; N/A
(
b
) (
c
)
YES;
NO; N/A
(
b
) (
c
)
YES;
NO; N/A
(
b
) (
c
)
YES;
NO; N/A (
b
)
(
c
)
YES;
NO; N/A
(
b
) (
c
)
YES;
NO; N/A
(
b
) (
c
)
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
YES/-
NO
%
E
T
A. ACTIVITIES ACCEPTABLE FOR THE TAXONOMY
A.1 Environmentally sustainable activities (aligned with the taxonomy)
Energy production using
photovoltaic technology
D35.11
F42.22
3,181,959
16.05%
NO
YES
N/A
N/A
NO
N/A
/
YES
NO
/
NO
/
YES
93.28
75,98
/
/
Installation, maintenance
and repair of energy
efficient equipment
C33.20
92,346
0.47%
NO
YES
N/A
N/A
NO
NO
NO
YES
NO
NO
NO
NO
YES
2.71
4,73
E
Data processing and data
hosting
J62.03
J63.11
136,823
0.69%
NO
YES
N/A
N/A
N/A
N/A
NO
YES
NO
/
NO
/
YES
4.01
19,29
E
Investments in fixed assets in
environmentally sustainable
activities (aligned with the taxonomy)
(A.1)
3.411.128
17.21%
%
%
%
%
%
%
0
0
0
0
0
0
0
100
100
Of which enabling
229.169
1.16%
%
%
%
%
%
%
0
0
0
0
0
0
0
6.72%
24.02%
E
Of which transitional
0
0%
%
0
0
0
0
0
0
0
0.00%
0.00%
T
A.2 Activities that are acceptable for the taxonomy but are not environmentally sustainable (activities not aligned with the taxonomy) (
g
)
Investments in fixed assets in
activities that are acceptable for the
taxonomy but are not
environmentally sustainable
(activities not aligned with the
taxonomy) (A.2)
0
0%
0%
0%
0%
0%
0%
0%
%
A. Investments in fixed assets in
activities acceptable for the
taxonomy (A.1+ A.2)
3,411,128
17.21%
0%
0.00%
0%
0%
0%
0%
%
B. ACTIVITIES UNACCEPTABLE FOR THE TAXONOMY
Investments in fixed assets in
activities not acceptable for the
taxonomy
16,414,176
82.79%
TOTAL
19,825,304
100 %
Graphics
Business report
35
Table: Share of working capital investment in products or services related to economic activities aligned with the taxonomy in 2022 and 2023
Financial
year
2023
Criteria for material contribution
Criteria for non-material contribution (
f
)
Economic
activities (1)
Code (
a
)(2)
Investments in
working capital (3)
Share of
investments in
working capital
(4)
Mitigating climate change (5)
Adapting to climate change (6)
Water (7)
Pollution (8)
Circular economy (9)
Biodiversity (10)
Mitigating climate change (11)
Adapting to climate change (12)
Water (13)
Pollution (14)
Circular economy (15)
Biodiversity(16)
Minimum protection measures (17)
Share of
investment in
working capital
aligned with
taxonomy (A.1) or
acceptable for
taxonomy (A.2),
2023
Share of
investment in
working capital
aligned with
taxonomy (A.1) or
acceptable for
taxonomy (A.2),
2022
Enabling
activity
category (19)
Transitional
activity
category (20)
Text
Currency
%
YES;
NO; N/A
(
b
) (
c
)
YES;
NO; N/A (
b
)
(
c
)
YES;
NO; N/A
(
b
) (
c
)
YES;
NO; N/A (
b
)
(
c
)
YES;
NO; N/A (
b
)
(
c
)
YES;
NO; N/A (
b
)
(
c
)
YES/- NO
YES/- NO
YES/- NO
YES/- NO
YES/- NO
YES/- NO
YES/- NO
%
E
T
A. ACTIVITIES ACCEPTABLE FOR THE TAXONOMY
A.1 Environmentally sustainable activities (aligned with the taxonomy)
Material recovery
of non-hazardous
waste
E38,11F42,99
1.975.589
1.16%
NO
YES
N/A
N/A
NO
NO
/
/
NO
NO
NO
NO
YES
1.16
1.89
/
/
Investment in working capital in
environmentally sustainable activities
(aligned with the taxonomy) (A.1)
1,975,589
1.16%
%
%
%
%
%
%
0
0
0
0
0
0
0
100%
100
Of which enabling
1,975,589
1.16%
%
%
%
%
%
%
0
0
0
0
0
0
0
0%
E
Of which transitional
0
0.00%
%
0
0
0
0
0
0
0
0%
T
A.2 Activities that are acceptable for the taxonomy but are not environmentally sustainable (activities not aligned with the taxonomy) (
f
)
SP; N/A (
e
)
SP; N/A (
e
)
SP; N/A (
e
)
SP; N/A (
e
)
SP; N/A (
e
)
SP; N/A (
e
)
/
/
0
0%
/
/
/
/
/
/
Investment in working capital in
activities that are acceptable for the
taxonomy but are not environmentally
sustainable (activities not aligned with
the taxonomy) (A.2)
0
0%
0%
%
%
%
%
%
0%
A. Investments in working capital in
activities acceptable for the taxonomy
(A.1+ A.2)
1,975,589
1.16%
0%
1.16%
%
%
%
%
0%
B. ACTIVITIES UNACCEPTABLE FOR THE TAXONOMY
0
Investments in working capital in
activities not acceptable for the
taxonomy
167.691.448
98.84%
TOTAL
169.667.037
100 %
Graphics
Business report
36
Management Board
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
Graphics
Business report
37
Strategic orientations
The Strategic Business Plan lays the foundations for the Company's activities in the period from 2024
to 2028. By setting new strategic objectives and defining new strategies to achieve them, we are
building on the achievements made by the Company in the past period. The Strategy sets out the
paths and ways to give the Company new business momentum for the period ahead.
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.
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. The
future development of the Company is based on the following four pillars:
− energy transformation,
− digitisation,
− sustainable development,
− increasing capacities.
Sales will continue to be oriented mainly towards European markets. The Company's presence in
existing markets will be strengthened in the key strategic business area of titanium dioxide, as well
as in ancillary areas and in the programmes of Kemija Mozirje (Masterbatches, Powder Varnishes),
Kemija Celje (Agro programme combining Humovit and copper fungicides) and Polimeri.
In the future, the Company will continue to strive to work closely with its employees, business
partners and the local community to continue the success of its business and to ensure adequate
returns for its owners. It is planned to continue optimising the human resources structure by rehiring
and recruiting new young and technically qualified staff. Investments in development, training and
further improvement of the working environment of employees will also continue.
In the coming years, the investment cycle necessary for stable ongoing operations and growth will
continue. We will continue to seek and implement additional ways to reduce potential adverse
environmental impacts, while continuing to monitor and adapt to the requirements of environmental
legislation and regulation. However, a tightening in this area could pose an additional risk in terms
of the time and cost of immediate adaptation.
The new five-year strategic period 2024-2028, which takes into account the peak of the cycle in
2028.
The dividend policy will be stable. 50% of net profit will be paid out as dividends.
Graphics
Business report
38
Plan for 2024
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 customers 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 the
smooth and timely coverage of all liabilities.
In 2024, in line with industry expectations and cycles, we will achieve a turnover of EUR 186.6
million. The planned net operating result for 2024 is a net profit of EUR 4.0 million. The lower net
profit is a direct consequence of the falling selling prices of titanium dioxide pigment and the high
level of purchase prices. The EBITDA margin is expected to reach 10%. The Company's strategy will
continue to focus 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 follow the principles of a
conservative financial policy and care for a sound cash position, being aware 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 reward for 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 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
total planned investment amounts to EUR 18.4 million.
The Company will also focus on managing the purchasing process in the face of unpredictable
business cycles with significant changes in selling and purchasing prices, which can have a significant
impact on the operating result and cash flow.
In the coming years, a new investment cycle will be implemented, which we need for stable ongoing
operations. By investing in the expansion of production capacity at the existing site, the production
volume of titanium dioxide pigment is approaching the limits of the environmental permit and
alternative options will have to be sought in the future to further grow the business volume.
Graphics
Business report
39
Investments implemented and planned
In planning and implementing investments, we focus on our strategic objectives, removing
bottlenecks and technological upgrades to ensure quality work, efficient product production, reduced
environmental impact and a low-carbon transition. We are introducing the best available technologies
in our production processes, circular resource use models, increasing energy efficiency and energy
self-sufficiency. Ensuring a safe working environment for our employees is an important factor, so
we regularly update our work equipment and introduce digitalisation where possible.
Table: Planned and implemented investments and percentage of realisation in 2019-2023 and plan
for 2024
Year
Planned investments
(EUR million)
Implemented investments
(EUR million)
Percentage of
realisation (%)
2019
11,209,417
11,955,998
107
2020
19,897,510
12,232,990
61
2021
14,361,931
11,325,408
79
2022
14,229,490
9,969,311
70
2023
20,479,040
19,825,304
97
Plan 2024
18,378,200
/
/
Investments made in 2023
The total planned amount of investments in 2023 was EUR 20,479,040 – 97% of the planned amount,
or EUR 19,825,304, was realised.
During the autumn maintenance of the sulphuric acid plant, the absorption tower and the IT2 heat
exchanger were replaced.
The basic engineering for cogeneration of electricity from the steam produced by burning sulphur
was developed. A total of 5.7 MWp of installed solar power capacity is in regular operation.
Implemented investments in titanium dioxide production:
− installation of dust suppression pipes at the Za Travnikom waste disposal plant,
− storage tank for vacuum cooling of hydrolysate,
− third sand mill,
− dust extraction system for captured dust sources at the Black Mill and Final Processing.
As a precautionary measure against the foreseen possibility of a partial reduction of natural gas
supply, we rehabilitated the extra-light fuel oil (ELFO) tank, carried out the necessary installations
and equipped one calcination furnace with a burner that would allow the use of ELFO in addition to
natural gas. We carried out a trial run.
The Ministry of the Environment, Climate and Energy is rehabilitating plot 115/1 of the Teharje
cadastral area, where our gypsum pipeline runs. In order to avoid subsequent restrictions on the
rehabilitation in the event of a leak, we started the relocation of our gypsum pipeline at the same
time as the rehabilitation of plot 115/1. The investment will be completed in 2024.
A filter press for pigment spinning was supplied. Installation will take place in the first half of 2024.
The installation of the additional storage tank 12.10 C was carried out as planned.
In 2024, the investments in the modernisation of the storage and preparation of lime and calcite
slurry and the upgrading of the storm water drainage system with oil traps, which started in 2023,
will also continue.
Graphics
Business report
40
Upgrades to the data transmission network of the production processes at BU TiO
2
are underway, as
well as upgrades to the control and management of the processes with the most outdated software.
The upgrade of the production information system Spectrum was also ongoing and will be completed
in 2024.
Due to the market situation, titanium dioxide production volumes were rather limited throughout the
year. We took advantage of the downturn to carry out more extensive overhauls on a number of
positions.
The planned 10% of the funds from the environmental provisions were realised for design activities,
while implementation will take place in 2024.
Plans for 2024
The total amount of planned investments in 2024 is EUR 18,378,200. This includes capitalised own
products and services of EUR 1,505,090, but excludes planned activities for the release of
environmental provisions of EUR 3,475,100. The planned value of investments, including capitalised
own products and excluding planned funds for the release of environmental provisions, is 11% below
the 2023 plan. It represents 10% of planned sales in 2024 and 138% of depreciation.
51% of the total investment will be for capital expenditure, 33% for the purchase of replacement
equipment and 16% for the purchase of individual fixed assets.
Chart: Proportion of funding by planned investments in 2024
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 energy self-sufficiency, we will:
− Continue with the solar power project;
− Continue the preparation of projects for cogeneration of electricity from the steam generated
by burning sulphur, if a feasibility study confirms the expected return;
− Renovate the Marketing transformer substation to allow the connection of a solar power
plant;
− Invest in a project for better use of waste heat (preheating of secondary and primary air in
the calcination process);
− Implement measures to reduce electricity consumption (replacement of lighting and energy-
wasting electric motors, installation of frequency converters, cooling of process water);
− Replace the compensation at TP Ljubija 1.
We will continue to invest in increasing the share of process water re-use and alternative water
supplies from the Tremerje WWTP. We will also replace the rubber bag on the soft dam at Hudinja,
where we pump water for our process needs.
In addition to investing in energy transformation, we continue to invest significantly in projects to
remove 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
Graphics
Business report
41
continue to prepare projects and permits and to implement pending and new investments. These
include:
− Construction of a pumping station for sulphuric acid tankers;
− Installation of an additional 12.10 C storage tank for the discharge of the solution from the
unloading towers;
− Modernisation of lime and calcite slurry storage and preparation;
− Installation of a central vessel for the third vacuum cooling line;
− Third filter press for metatitanic acid spinning;
− Capacity expansion in Surface Treatment 2.
With the aim of reducing the amount of waste disposed of from titanium dioxide production, we will
initiate the process of preparing the project documentation for the installation of a 7th centrifuge for
the extraction of Cegips.
We will rebuild one of the key technological bridges and start the systematic renewal of the structural
joints of the TiO
2
steel hall.
We will continue our multi-year project to upgrade the data network for the production processes at
BU TiO2 and to upgrade the control and management of the processes with the most outdated
software. We will complete the upgrade of the Spectrum production information system and the
maintenance information system. To enhance information security, we started an investment in 2023
to prepare the platform for setting up a virtual environment of PCS7 servers and operating stations,
thus enabling the establishment of a redundant system, which will take place in 2024. We will renew
the server system for business systems.
At BU Kemija Celje, we will continue our investment in automated sodium hydroxide addition and
blowdown reactors for the preparation of copper oxychloride, and will purchase a new filter press for
the filtration of dissolved cupric ash.
At BU Kemija Mozirje, we will start an investment to install an additional line for the production of
white masterbatches. We will set up digital warehouse operations and, as a prerequisite, reinforce
the Wi-Fi system and purchase scanners.
We will also purchase some individual fixed assets for quality control (DSC device for the
characterisation of polymeric materials, FTIR device for the determination of individual substances
in polymeric materials, dryer for biodegradable masterbatches).
BU Polimeri is about to start investing in the construction of an automated coating line.
Investments will also take place at our Bukovžlak and Za Travnikom sites. In Bukovžlak, the
construction of a sealing curtain on the NE barrier of the Bukovžlak Non-Hazardous Waste Disposal
Site (ONOB) and the construction of drainage C1 will take place. In the Bukovžlak high embankment
barrier, activities are foreseen on the drainage ditch with a gauging point and a level lowering facility,
and in the Za Travnikom high embankment barrier, the construction of a reinforcement embankment
with drainage on the western flank, drainage ribs on the eastern flank, and the rehabilitation of a
landslide triggered during heavy rainfall in August 2023. The environmental provisions will be used
for these purposes.
We will continue with the phased construction of oil traps on storm drains and rehabilitation of part
of the sewer network.
Major investments for the purchase of replacement equipment and fixed assets will include:
− Renewal of one electrostatic precipitator to clean the flue gases from the calcination process;
− Replacement of the first of two filter presses for pigment spinning;
− Replacement of part of the vehicles (cars, forklift trucks) with electric ones;
Graphics
Business report
42
− Setting up a 5G network.
Each year, we also invest in measures to improve fire safety (renewal of external and replacement
of internal hydrants with Euro hydrants, installation of AJP systems, fire doors).
We will purchase some additional equipment for quality control (sonifier, particle size and distribution
measuring device).
In line with plans, actual needs and financial possibilities, we will also prepare and implement new
projects, procure replacements and new individual items of fixed assets during the year.
We plan to finance the project from our own resources and, to a lesser extent, from external sources.
Graphics
Business report
43
Analysis of results and performance
Sales
Total sales in 2023 were 22% lower than the sales achieved in the comparable period of 2022. Total
sales or net sales revenue amounted to EUR 176.5 million. Total sales to foreign markets decreased
by 22% compared to the comparable period of the previous year. The decrease in sales to foreign
markets is undoubtedly due to lower pigment volumes. In absolute and relative terms, the most
significant drop in sales is to the EU market, which is our most important market. The breakdown of
countries by market is explained in the section “Market presence”.
Table: Sales by market 2022-2023, in EUR
Market
2022
2023
ΔPY %
Slovenia
18,781,919
14,889,861
–21
EU
173,950,706
134,006,280
–23
Ex-YU
4,959,791
3,395,401
–32
Third countries
27,117,372
19,504,886
–28
Third countries – dollar markets
2,343,328
4,667,861
+99
Total
227,153,116
176,464,289
–22
Sales to the EU market were 23% below the previous year. The fall in sales was due to lower pigment
volumes and, to a lesser extent, lower selling prices. The latter is due to cheaper Chinese pigment
volumes and also to lower demand in general due to lower economic activity. Germany is one of our
key markets, accounting for 27.9% of export sales and 25.6% of total company 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 decreased by 32%, due to lower value sales of pigment
and powder varnishes.
Domestic sales were 21% lower than in 2022, with all business units (BUs) experiencing a drop in
sales, with the exception of the Polimeri BU.
Sales to third country markets are 18% lower overall compared to the same period of the previous year.
As already mentioned, the main contributor to the decrease in sales in this segment was the lower
pigment volumes. We are gaining market share in the US dollar markets. In the next medium term, we
intend to focus our marketing activities more on these markets as they offer us good geographical
diversification. The 99% increase in sales is the result of accelerated activities in US markets.
Chart: Sales value by market in 2020-2023, in EUR million

Graphics
Business report
44
The share of total exports in the Company's total sales in the year under review was 91.7%, a
decrease of 0.1 percentage points compared to the previous year. The lower share of exports relates
to a decrease in value sales to the key markets of Germany, Italy, France and Turkey. The main
export performance 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 at a given time. Roughly speaking, the structure is determined by the profitability of
the markets, the marketing strategy and the political-economic stability and reliability of the markets.
Table: Sales by product programme in 2022-2023, in EUR
Product programme
2022
2023
ΔPY %
Titanium dioxide
189.740.282
146,042,369
–23
– of which TiO
2
pigment
186,385,200
143,356,887
–23
Zinc processing
8,240,209
5,637,539
–32
Varnishes, masters and printing inks
18,516,808
16,579,785
–10
Agro programme
8,481,917
5,443,530
–36
Polymers
1,647,402
2,148,761
+30
Other
526,498
612,307
+16
Total
227,153,116
176,464,289
–22
In the period under review, sales of the flagship titanium dioxide pigment programme amounted to
EUR 146 million. The EUR 41.5 million lower sales in value terms is due to significantly lower volumes
and, to a lesser extent, lower average selling prices. A decline in customer orders was already
observed at the end of 2022, and the challenging market situation continued throughout 2023. The
downturn in economic activity in most industries, in particular the decline in new investments, led to
a high drop in demand. In addition to lower demand from pigment buyers, the economic slowdown
in China and the resulting excess inventories in Asia also led us to face very aggressive competition
from China, which directed most of its pigment inventories to European markets, which, unlike the
US, are not protected by import duties. Chinese competition was taking market shares from European
producers at a lower price, against an already reduced demand for pigment. Recently, in light of the
consideration of anti-dumping measures against Chinese pigment and the conflicts in the Red Sea,
the purchasing strategy of European buyers has been changing in favour of European pigment
producers.
CEGIPS should also be highlighted in the programmes of this sectoral section. We sold 128.9
thousand tonnes of CEGIPS, which is important in the context of extending the lifetime of the Za
Travnikom facility.
The zinc processing sales programme combines the product groups zinc wire, anodes and alloys. The
performance was 32% below that of the comparable period of the previous year. Due to low added
value and poor prospects, the programme was discontinued at the end of 2023.
During the period under review, there was a 10% decrease in sales of varnishes and masters on a
comparable basis. The main reason for the decline in sales of powder varnishes, in addition to the
general downturn in economic activity, was mainly the restrained attitude of consumers towards the
purchase of household and home furnishings. In fact, the market experienced a general decline in
sales in the home furnishings, household appliances and warehouse and shop equipment segments.
In the masterbatches business, we increased sales volumes by shifting in time to more demanding
application segments and entering the personal care business, where consumption is above average.
Sales of the agro programme, which includes sales of copper fungicides, Pepelin, copperas and
Humovit, decreased by 36% compared to the comparable period in 2022. The reduced sales volume
is due to the extreme drought in 2022, which affected the whole of Europe, and as a result, all

Graphics
Business report
45
distributors in Europe sold old inventory of plant protection products in 2023. In addition, there was
a decline in sales to Eastern European distributors who exported copper fungicides to the Ukrainian
market. Towards the end of 2023, a higher demand was observed, which is expected to be
maintained in early 2024. Humovit sales are at the level of the comparable period in 2022. Sales of
soil are dependent on local and nearby market conditions, as the product does not withstand the
additional transport costs to enter distant markets.
For the period under review, we find that the relative proportions have changed again. With the
exception of BU Kemija Celje, the other business units recorded an increase in their share of sales.
BU Polimeri's share increased 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.
Operating result
In 2023, an operating result of EUR 12.7 million was achieved. This result represents only 24% of
the 2022 operating result of EUR 53.2 million. Operating performance was therefore below the
previous year, while exceeding the business plan by 65%. This underperformance of the previous
year was due to significantly weaker sales in volume and value terms, and to the decline in the sales
prices of the flagship product. The over-performance of the plan is due to State aid of EUR 7.6 million
for the purpose of mitigating energy prices under the Act Governing Aid to Businesses to Mitigate
Impact of Energy Crisis (ZPGOPEK). The operating result with write-downs, or EBITDA, amounted to
EUR 25 million, representing 14.2% of the sales achieved. Compared to the previous year, EBITDA
is 62% lower.
After accounting for the impact of financial income and expenses, a pre-tax result of EUR 13.8 million
is reported in 2023, with a profit of EUR 52.7 million in 2022. The pre-tax result compared to the
previous year is only 26%.
In 2023, a positive financing balance of EUR 1.1 million was achieved (in 2022 the negative financing
balance was EUR 460 thousand). The resulting financing balance is due to a positive exchange rate
balance (forward purchase and sale of dollars) of EUR 105 thousand and a positive balance of
investment and interest income and expenses of EUR 977 thousand. The positive exchange rate
balance throughout the financial year represents the effective use of hedging instruments to manage
the volatile movement of the USD/EUR currency pair in the purchase of titanium-bearing ores.
The net operating result for the period is EUR 12.7 million, 71% lower than the result for 2022 (EUR
43.4 million). Taking into account developments in the international economy, the titanium dioxide
pigment market and, above all, the results of competitors in the titanium dioxide industry, we
consider the result to be satisfactory and above expectations. The net result comprises the profit
before income taxes of EUR 1.1 million (effective tax rate of 8.3%).
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.

Graphics
Business report
46
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 on the last day of 2023 was 2,628 and the total number of issued
shares was 8,079,770, of which 7,815,120 are voting shares and 264,650 are treasury shares.
The value of the share of Cinkarna Celje d.d., listed on the Ljubljana Stock Exchange's first quotation
(CICG), fluctuated between EUR 20.0/share and EUR 30.2/share. From the last trading day of 2022
to the last trading day of the period under consideration 2023, the share is down 12%.
Table: Movement of the CICG share value in 2023 by month (single end-of-month price) and in 2020-
2022
Year
2020
2021
2022
2023
Month
12
12
12
1
2
3
4
5
6
7
8
9
10
11
12
CICG
price
in EUR
17.80
25.90
23.00
25.80
28.20
28.80
27.80
24.40
24.80
24.80
23.20
22.60
23.90
22.00
20.50
The average cumulative monthly turnover of Cinkarna Celje d.d. shares in 2023 was EUR 1.5 million,
23% lower than the average monthly turnover in 2022, which was EUR 1.9 million. The total annual
turnover was EUR 17.4 million (EUR 22.5 million in 2022). The Company has a liquidity maintenance
agreement in place for the shares.
Table: Share price and cumulative monthly turnover outliers in 2021-2023, in EUR
Year
2021
2022
2023
Highest
Lowest
Highest
Lowest
Highest
Lowest
Share price in EUR/share
25.90
17.40
32.00
22.40
30.20
20.00
Cumulative monthly turnover in
EUR 000
1,966.4
701.1
3,381.2
1,231.5
2,384.9
826.1
Figure: Comparison of monthly turnover of Cinkarna Celje d.d. shares by month in 2022-2023, in
EUR
Dividends
In 2023, the Company was a beneficiary of aid under the Act Governing Aid to Businesses to Mitigate
Impact of Energy Crisis (ZPGOPEK), according to which the consequences apply to the cases defined

Graphics
Business report
47
in Article 16(12). According to the cited provision, a beneficiary (company) that has claimed economic
aid under this Act, if it has, since the entry into force of this Act in 2023 or for the year 2023, made
a payment of profits, purchases of its own shares or its own business holdings, payments of bonuses
to the management or part of the performance-related salaries to the management, must notify the
competent authority thereof no later than two months after the payment. It must repay the funds
received within 30 days of notification of the decision issued by the competent authority, together
with statutory interest at the statutory rate of interest from the date of expiry of the time limit for
repayment of the aid received until the date of repayment.
By adopting the 2022 Annual Report, the Management Board and the Supervisory Board generated
a balance sheet profit in an amount that allows for a payout in line with the dividend policy and, in
this respect, did not prejudice shareholders' dividend rights by proposing the use of the balance sheet
profit.
The Company convened an Extraordinary General Meeting in early 2024, where a counter-proposal
was voted, namely to use the balance sheet profit, not including 2023 net profit, of EUR 25 million
for the following purposes:
− Part of the balance sheet profit to pay a dividend of EUR 3.2 gross per share;
− The remaining part of the balance-sheet profit of EUR 6,007.4 remains unallocated.
The Company paid the dividend on 23 February 2024 to shareholders registered with the KDD on 22
February 2024.
The total amount earmarked for dividend payments is shown below. Dividends paid, with the
corresponding calculation, are shown in the section Summary of performance and alternative
performance measures. No dividends were paid in 2023 due to the restrictions of the ZPGOPEK act.
Chart: Total value of dividends to be paid in 2020-2024, in EUR 000
Expenses and costs
The analysis of expenses and costs relates mainly to the costs of materials, raw materials, energy
and labour, which also have the greatest impact on the Company's performance, as the Company is
capital intensive. Labour costs are mainly determined by the constructive dialogue between the social
partners and the business performance. The Company did not incur any interest costs in 2023 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 was contained to the best of
our ability, but further increases are inevitable. Titanium-bearing raw material procurement prices
are at similar levels.

Graphics
Business report
48
The combination of the above macroeconomic situation and the situation in the titanium dioxide
pigment industry led to a closing of the cut-offs of the bid-ask spreads. Further closures are expected
in the coming quarters. The upward pressure on labour costs increased due to the situation in
Slovenia and the understandable rise in employee expectations, but the Company's remuneration
policy enabled us to remain within our performance plans.
The structure of consumption of raw materials, packaging and energy in 2023 shows deviations
compared to 2022. 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 the cost of energy, which
has risen significantly by 23% due to energy risks. The cost of raw materials is 28% lower due to
lower production. This and the focus on bulk packaging results in a 19% lower cost of packaging.
At the end of the period, raw materials accounted for the largest share of production costs (77.1%),
followed by energy (21.3%) and packaging (1.6%). Compared to the previous year, there was a
marked change in the structure, with an increase in the share of energy by 56 percentage points.
The starting points for the wage policy were the agreements and orientations of the social partners
at national and company level. In 2023, an annual leave allowance of EUR 2,000 gross/employee
was paid to employees in May. As a result of the good performance of the business, a Christmas
bonus of EUR 850 gross/employee was paid to all employees at the date of the decision. The
company-wide labour costs achieved are 4% higher compared to 2022.
In 2023, the amount of depreciation charged is 2% higher than in the previous year, as a result of
the level of investment in previous periods. We plan to invest a comparable amount in 2024.
In 2023, the Company did not incur any interest expense as it did not have any financial debt (the
last time the Company recorded interest expense was in 2014 for bank loans received). Interest
expense is therefore not a factor in the Company's operating performance and the Company is no
longer exposed to risk in the context of potential changes in interest rates.
We generated a net profit of EUR 12.7 million. Corporate income tax for 2023 was levied at EUR 1.1
million.
Table: Operating expenses in 2022-2023, in EUR and %
Operating expenses
2023
2022
Value in EUR
Share in %
Value in EUR
Share in %
Cost of materials and services
122,720,736
72
151,383,601
76
Labour costs
30,656,494
18
29,483,416
15
Depreciation and amortisation
12,355,367
7
12,150,684
6
Other expenses and impairment of
business receivables
3,934,440
3
5,265,971
3
Total operating expenses
169,667,037
100
198,283,672
100

Graphics
Business report
49
Assets and resources
The source of financing of the achieved volume of operations in 2023 consisted mainly of own funds
accumulated in the course of current operations and, to a lesser extent, of corporate debt. The
financing of the additions and upgrading of production and operating equipment and buildings, and
of investments in progress was carried out exclusively using own funds accumulated in the course of
current operations. In the past year, we did not use bank resources. We paid particular attention to
the management of our net current or short-term assets, thereby ensuring a reliable, secure and
stable cash position and liquidity at all times.
Table: Assets in 2022-2023, in EUR and %
Assets
2023
2022
Value in EUR
Share in %
Value in EUR
Share in %
Non-current assets
114,522,696
44
108,559,530
43
Current assets:
145,392,966
56
142,388,473
57
– Inventory
53,841,480
21
72,754,823
29
– Financial receivables
38,616,117
15
0
0
– Trade receivables
31,545,008
12
24,290,543
10
– Cash
15,687,805
6
45,210,098
18
– Income tax receivable
5,493,528
2
0
0
– Other current assets
209,028
0
133,009
0
Total non-current and current assets
259,915,662
100
250,948,003
100
The share of non-current (long-term assets) in total assets increased by 0.8 percentage points
to 44.1% in 2023 compared to the end of 2022. The largest category of non-current assets is tangible
fixed assets (96%), which increased by EUR 5.8 million or 6% in 2023 for the difference between
the amount invested in tangible fixed assets and the actual depreciation charged. Long-term
investments decreased by EUR 0.4 million in 2023 due to revaluation and comprise shares and
interests in companies. Deferred tax assets increased by 17% due to higher provisioning than release
and utilisation, and recalculation to a 22% tax rate. Other non-current assets consist of emission
allowances obtained free of charge from the State. Their balance as at 31 December 2023 is EUR 16
thousand higher than the balance as at 31 December 2022 due to the positive balance between the
acquisition of the allowances for 2023 and their surrender to the Slovenian Environment Agency,
ARSO, for CO
2
emissions for 2022.
The share of current assets in total assets decreased by 0.8 structural points compared to the end
of the previous year to 55.9%. The most important categories in the structure of current assets in
terms of value are inventory (37%), financial receivables (27%), trade receivables together with
other current assets and income tax receivables (26%), and cash (11%).
Inventory decreased by 26% in 2023 compared to the end of 2022, with a 27% decrease in the
value of material inventory (including advances), a 24% decrease in work-in-progress inventory and
a 24% decrease in the total value of the Company's finished goods and merchandise inventory (all
compared to the end of 2022). The main reason for the decrease in finished goods inventory is the
lower volume production of pigment in the last quarter of 2023.
Current financial receivables as at 31 December 2023 are investments in treasury bills with a
maturity of up to 6 months in order to use cash efficiently.
Current trade receivables comprise current trade receivables from customers and current trade
receivables from others (mainly from the State for input VAT). Compared to the balance as at the
end of 2022, receivables in 2023 increased by 30%. Trade receivables also increased by 24%, while
other current receivables increased by 86% due to receivables from the State. The maturity profile

Graphics
Business report
50
of trade receivables shows that the age structure of receivables continues to be of good quality and
secured by an external institution or other form of collateral.
Cash (and cash equivalents) represent 11% of total current assets. Cash decreased by 65%
compared to the previous year due to accelerated investment, weaker operating performance and
the transfer of funds to current investments. The remaining cash is necessary to ensure the day-to-
day operations.
Income tax receivable arise from the excess of advance payments in 2023 over the actually
calculated profit tax for 2023.
Other current assets comprise prepaid expenses accrued. The value increased by 57%.
Table: Capital and liabilities in 2022-2023, in EUR and %
Capital and liabilities
2023
2022
Value in EUR
Share in %
Value in EUR
Share in %
Capital
221,230,458
85
209,010,148
83
Non-current liabilities
18,844,136
7
18,831,718
8
Current financial liabilities
103,692
0
59,392
0
Current operating liabilities
18,530,350
7
19,518,145
8
Other current liabilities
1,207,025
0
3,528,600
1
Total capital and liabilities
259,915,662
100
250,948,003
100
The value of capital in the structure of the liabilities to resources as at 31 December 2023 represents
85.1%, a decrease of 1.8 percentage points compared to the end of 2022. The amount of capital
increased by 6% compared to the end of 2022. The increase (EUR 12.2 million) relates to the
difference between the net profit in 2023 of EUR 12.7 million and the EUR 0.5 million decrease in the
fair value reserve. As at 31 December 2023, the Company holds 264,650 treasury shares (after a
split of 1:10 as at 15 August 2022). The Company did not make any purchases of treasury shares in
2023. As at 31 December 2023, on the basis of a decision of the Management Board, EUR 7,033,608
was transferred to retained earnings from other reserves arising before 2023. There were no other
significant movements in capital.
In total capital, the share capital amounts to EUR 20,229,769.66 and consists of 8,079,770 ordinary
freely transferable bulk shares after a split of 1:10 as at 15 August 2022 (of which 264,650 are
treasury shares subscribed in the treasury shares pool). The book value of the share as at 31
December 2023 is EUR 27.4 (increased by 5.8% since the beginning of the year when it was EUR
25.9).
Provisions and deferred income account for 7.3% of the payables. Provisions for pensions and
similar liabilities were made as at 1 January 2006 (retirement and jubilee bonuses) and are adjusted
annually on the basis of actuarial calculations. Other provisions were established in the course of the
ownership process under the Ecology provision. In recent years, we additionally made the following
environmental provisions: EUR 5 million in 2010 for the rehabilitation of the Bukovžlak non-
hazardous waste landfill and EUR 7 million and again EUR 5 million in 2011 for the rehabilitation of
the Za Travnikom waste disposal facility and the destruction of low-level radioactive waste. At the
end of 2017, the 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 2023, similarly to the end of
2022, the scope of the provisions was reviewed and the provisions were re-established/re-adjusted
accordingly, based on the actual market conditions and the reasons for their existence. The volume
of environmental provisions decreased by 4% or EUR 0.6 million over the period due to the
earmarked increase and at the same time the earmarked coverage of the costs of the above
mentioned rehabilitation projects, as well as the necessary reversal of provisions for which there is

Graphics
Business report
51
no longer an underlying basis for their creation. Non-current deferred income increased by 111%
due to the funds obtained for the co-financing of the installation of solar power plants.
Short term trade payables decreased by 14% compared to the end of the previous year due to a
decrease in other current liabilities. Trade payables decreased by 2% due to repayments to suppliers
and other current liabilities decreased by 16% due to lower payables to employees and government
institutions. There is no liability for income tax for the financial year 2023 as at 31 December 2023
as the advance payments made during 2023 exceed the tax liability for 2023. All financial and trade
payables are of a current nature. The Company's gross gearing ratio is 8%, a decrease of 1%
compared to the situation as at 31 December 2022.
Current financial liabilities as at 31 December 2023 amount to EUR 104 thousand, compared to
EUR 59 thousand at the end of 2022. The Company's gearing ratio is therefore 0.4 ‰ (0.2 ‰ at
the end of 2022).
Current trade payables decreased by 5% over the period. Current trade payables to suppliers
amounted to EUR 14.7 million on the last day of 2023, down 2% compared to the end of 2022, due
to the repayment of payables to raw material suppliers. Other payables decreased by 16% (or by
EUR 746 thousand), mainly consisting of EUR 2 million payable for net salaries and other net
employment benefits, EUR 1.9 million payable for contributions and taxes from and on remuneration,
and payables for VAT and to other institutions.
Other current liabilities decreased by 66% in the period under review, mainly comprising accrued
liabilities for annual leave and other staff costs, accrued ecological contributions and taxes, VAT on
advances and deferred income tax. In 2022, the obligation to pay profit tax was included.

Graphics
Business report
52
Risk management
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 to identify key risks and opportunities, which is crucial for our operational, tactical and strategic
planning.
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:
I. Sales and procurement risks
II. Production risks
III. Financial risks
IV. Spatial and environmental risks
V. Human resources and organisational risks
VI. Support process risks
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.

Graphics
Business report
53
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 % and < 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 (BUs).
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 % and < 5 %
3 – High
> 10 %
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 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 risk management process involves the Supervisory Board, the Management Board, the Risk
Management Committee, the Internal Audit Department, directors or heads of departments and
employees at all levels of the Company. The Management Board is directly responsible for the risk

Graphics
Business report
54
management system and its effective functioning. The Management 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, with responsibility for
each risk group being assigned to team leaders. Risks at the company level are reviewed quarterly
by the Risk Committee, which is composed of all team leaders and a member of the Management
Board. In accordance with the Companies Act (ZGD-1), the Supervisory Board monitors and is
informed of the performance and findings of the risk management and internal control system.
The successful operation of a risk 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.
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
Risk Management Committee
Risk management team
Risk owners/organisational
units
Accounting Department
All company employees
Internal Audit
Supervisory Board /
Audit Committee
Governance,
control
Overview,
supervision
Management
Identification,
responsibility
Notification
Reporting
Reporting
Reporting

Graphics
Business report
55
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.
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 tasks:
− 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.

Graphics
Business report
56
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 findings on the management of key risks to the Management Board, the
supervisory body and the responsible auditors as part of the internal audit engagements
performed;
− May advise on the establishment and implementation of a risk management process, subject
to limitations under the rules of the internal audit profession.
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 2023
I. Sales and procurement risks
Risk name
General description at
company level
Risk management
Risk level
Energy sources
Price non-competitiveness
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 regularly rebalance our energy consumption
structure, implement energy management and
ongoing energy optimisation measures or projects.
Low
Key customer
Loss of market share and
revenue due to (price)
non-competitiveness with
customer expectations
compared to price-
aggressive competitors
We choose optimal marketing strategies and
appropriate sales channels. We provide pre- and
after-sales service to increase the added value of
our service. We ensure competitive selling prices
and align ourselves as far as possible with the
selling prices of our European competitors. We
Low

Graphics
Business report
57
I. Sales and procurement risks
Risk name
General description at
company level
Risk management
Risk level
provide quality products while increasing
productivity and reducing production costs. We are
increasing our presence in spot markets.
Competition
Loss of market share and
revenue due to (price)
non-competitiveness with
customer expectations
and with price-aggressive
competitors from China
and Eastern Europe
We limit risk by expanding our sales network,
diversifying our product and sales portfolio,
introducing new sales channels, developing
marketing partnerships and developing new
products to enter new markets and industries.
Through targeted technology investments, we are
focusing our sales portfolio on applications and
markets that are more demanding in content, high
in quality and represent a departure from the so-
called "commodity" markets, which are
characterised by lower added value and high
exposure to low-priced Chinese and Eastern
European pigments.
We choose optimal marketing strategies,
appropriate sales channels, pre- and after-sales
service, ensuring quality products while increasing
productivity and reducing production costs. We are
also increasing our customer portfolio in so-called
spot markets.
We also indirectly manage sales risks through
systematic monitoring and benchmarking of
relevant industries (competitors and customers),
participation in marketing and industry meetings
and the introduction of quality, safety,
environmental and health management standards.
Medium
Work items
Loss of revenue due to
unforeseen extensions of
delivery times throughout
the supply chain
We place orders on time, make bookings with
suppliers, look for alternative suppliers and
alternative testing procedures.
We ensure timely planning of requirements and
procurement of raw materials, taking into account
the time reserves of experience and increasing
minimum inventory where necessary. We will
develop a business case and checklist for all
strategic raw materials.
Low
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 inventory. We
carry out thorough market research on raw
materials and potential substitutes, and act on our
findings in a timely manner.
We search for, test and introduce new sources of
raw materials into production. We also evaluate
alternative raw material sources by producing
catalogues of verified alternative raw materials and
Low

Graphics
Business report
58
I. Sales and procurement risks
Risk name
General description at
company level
Risk management
Risk level
suppliers. We build long-term and stable
partnerships in a targeted manner. We monitor and
analyse the state of international markets ourselves
and with the help of market specialists. We also
maintain regular contact with suppliers that we do
not deal with operationally, but which represent a
quality potential alternative.
Legislative
compliance
Loss of revenue due to the
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
The Kemija Mozirje business unit obtained a
conceptual design (IDZ) for the installation of an
additional line of white masterbatches:
• in an existing building that would be
renovated,
• a new building on the Mozirje site.
An IDZ for a third option – to be located at the Rolling
Mill site in Celje – is also under preparation.
The risks in the Titanium Dioxide business unit are
managed through the following activities:
• optimising the performance of devices and
lines,
• increasing the efficiency of slag and
ilmenite discharges,
• updating and establishing cleaning
protocols for reactors, storage vessels,
settling tanks and clarifiers.
In order to increase the capacity to 71,000 tonnes,
the decision was taken to demolish the Final
Processing 2 extension and to install a spinning and
drying line in the newly built facility.
Low

Graphics
Business report
59
III. Financial risks
Risk name
General description at
company level
Risk management
Risk level
Credit risk
(payments by
customer)
Decrease of expenses due
to non-payment by
customer whose
receivables are not
secured, which represents
about 2% of receivables.
We carry out internal credit control for each
individual customer, who is assigned an
individual credit limit based on payment
discipline, credit rating and good standing with
the Company. The process of monitoring and
controlling credit risk is enhanced due to the
collateralisation of receivables 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 customer, the customer's
payment discipline and the announcements
made on the AJPES in connection with the
announcement of proceedings under the Act
on Financial Management, Insolvency and
Compulsory Winding-up Proceedings
(ZFPPIPP) are monitored on a daily basis.
We also remind the customer of the due date
of the receivable by reminder, first by telephone
and then in writing. We charge interest from the
due date until repayment.
We regularly obtain up-to-date information for
more accurate cash flow planning.
Low
Liquidity risk
(payments by
customer)
Loss of payments within
agreed deadlines due to
customer insolvency or
indiscipline, which may
cause liquidity problems for
the Company
We ensure a stable cash flow. The Company's
business is traditionally conservative with a
high level of cash. Liquidity management
includes, inter alia, planning and covering
expected cash commitments on a daily,
weekly, monthly and annual basis, ongoing
monitoring of customer solvency and regular
collection of overdue receivables. Updated
information is obtained on a regular basis to
allow for more accurate cash flow planning.
The cash flow is produced in a detailed,
deliberate and accurate manner on a daily,
monthly and annual basis.
Low
We are working on a technology project to expand
production.
We are carrying out pilot tests of pigment drying,
steam micronisation and decanter centrifuge
equipment.

Graphics
Business report
60
III. Financial risks
Risk name
General description at
company level
Risk management
Risk level
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 also 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.)
The company identifies the potential lack of
water to power production as both the biggest
risk from drought and an opportunity to pursue
sustainable business principles.
It is fed by the Hudinja River, partly also from
water wells at Za Travnikom. The water
abstraction licence limits the amount that does
not pose a risk in relation to production needs.
On the Hudinja watercourse, the ecologically
acceptable flow rate (Qes) is also included as
a limitation for pumping. In the case of a water
level below Qes, pumping is not allowed.
To ensure that the Company can survive even
in such extreme cases, we have already
increased our re-use rate, and with the
additional activities planned, we will increase
this rate even further in the near future. This
would allow us to keep production to a
minimum and avoid negative environmental
impacts due to unplanned stoppages.
In the past, several possible solutions for
alternative supply were examined (reservoirs,
groundwater pumping, use of the existing
reservoirs of the lakes Slivniško and
Šmartinsko jezero, relocation of the pumping
site to the confluence of the Hudinja and
Vzhodna Ložnica or from the Savinja). The
most suitable, and above all sustainable,
solution was the use of wastewater from the
Celje Central Wastewater Treatment Plant
(WWTP). This source is sufficient in quantity
for the long term, but needs additional
treatment. Its use results in an improvement of
High

Graphics
Business report
61
IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk level
both the biological and hydromorphological
status of the watercourse.
Together with an external contractor, the
Company prepared an IDZ design for the
pipeline layout and a conceptual design for the
additional treatment. Pilot trials are currently
underway at the WWTP site. We also obtained
an opinion from the Ministry of the
Environment, Climate and Energy (MOPE)
that the planned pipeline siting and pumping
does not require an environmental impact
assessment. We obtained project conditions
from Slovenian Railways and the Water
Directorate of the Republic of Slovenia for the
pipeline siting. In accordance with the decision
of the Municipality of Celje, we prepared a
petition for the adoption of a decision on the
initiation of the procedure for the preparation
of a Municipal Detailed Spatial Plan (OPPN)
for the installation of the pipeline.
For the other climate risks in this class, we
maintain the facilities, identify and address
potential hazards and rectify deficiencies (e.g.
additional cooling of rooms with electronic
equipment).
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 for the Environment and
Employees (regulations, organisational rules,
compliance with storage instructions in the
flooded part of the site, ongoing cleaning of
manholes and maintenance of facilities, work
instructions, measurements, preventive and
periodic inspections, etc.).
New buildings are designed to comply with
earthquake standards and regulations.
Existing buildings are inspected and
maintained. The Bukovžlak high embankment
barrier is equipped with seismic monitoring.
The Company is flood-proofed with a wall to
prevent water ingress in the event of a flood.
We have pumping stations in place to pump
out any excess water.
Based on our experience during the August
2023 floods, we are preparing or putting in
Low

Graphics
Business report
62
IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk level
place a series of preventive measures. We
have also increased our insurance coverage.
Lightning conductors and earthing systems
are regularly inspected and maintained.
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 systematically introduced European
environmental standards by implementing the
principles of the Responsible Care
Programme and harmonised our operations
with the requirements of the IED and SEVESO
Directives.
We carry out internal audits of the adequacy
of the implementation of the measures
required by the SEVESO permit and remedy
the deficiencies identified.
We update the Environmental Risk Reduction
Design (ZZTO) to reflect the changes and
implement operational safety assurance when
changes are introduced. We implement our
processes taking into account the Best
Available Technique (BAT).
In the area of fire safety, we have our own fire
brigade and the Company is adequately
covered by fire insurance.
In the area of accidents at work, a professional
service is organised to monitor compliance
with health and safety rules and measures.
Regular training and education for employees
is provided. The Company is insured against
liability for damages.
We enter into written agreements with
external contractors and train them. We have
a permanent Health and Safety Coordinator.
We have introduced work instructions for
carrying out maintenance interventions in
terms of fire prevention, accident prevention
and improving the cleanliness of the working
environment.
Low

Graphics
Business report
63
IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk level
Old burdens
Removing old
environmental burdens
The Bukovžlak Non-hazardous Waste
Disposal Facility (ONOB) and the barriers,
with their specific materials, are old burdens.
We have an environmental provision for them
and are carrying out remediation 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 observations,
systematic and long-term maintenance
measures are taken to ensure the stability of
the barriers or, where necessary, to remedy
the consequences of adverse weather
conditions.
One of these is the triggering of a landslide
after heavy rainfall in August on the lower
western part of the high embanked barrier of
the Za Travnikom site. The landslide is being
monitored by measurements and urgent
remediation is being carried out, followed by
full rehabilitation, for which an environmental
provision will be made.
Low
Legislative
compliance
Loss of production and
increase in costs due to
non-compliance with spatial
planning acts
The Company fills waste red gypsum from
titanium dioxide production into the Za
Travnikom waste disposal facility. The existing
zoning plan (ZN) and the building permit allow
filling up to an elevation of 300 metres above
sea level, which will be reached in about 7-8
years.
Due to the new circumstances and lessons
learnt during the infilling process, the
implementation as conceived by the project is
not possible or could lead to the demolition of
the planned structures in certain parts.
Another negative point is the planned
inadequate drainage, which would lead to the
partial re-flooding of the site with rainwater.
The engineer, together with the expert support
of the Faculty of Civil Engineering and
Geodesy in Ljubljana (UL FGG), Department
of Geotechnics, prepared an amendment of
the project. The new design provides for
increased quantities of red gypsum and a
different form of backfill. The planned volumes
were already registered in the environmental
permit and the MOPE issued a decision that
the planned modification does not require a
High

Graphics
Business report
64
IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk level
reassessment of the environmental impact.
However, an amendment to the zoning plan
and building permit is required.
We submitted an initiative for a revision of the
ZN to all three municipalities concerned. The
conditions for the signing of the contract
between the municipalities are being
coordinated, followed by the submission of the
rezoning petition to the MOPE.
According to the Šentjur Municipality Decree,
the filling of the Cinkarna site should have
ceased on 27 October 2023. Due to the
leaching of white gypsum and the large
subsidence not foreseen in the filling project,
this deadline was not achievable in practice.
Representatives of the Municipality of Šentjur
and KS Blagovna have been informed about
this since 2017, but they insisted on
understanding the need to respect this date.
We obtained a legal opinion on the validity of
such a decree. This concludes that the decree
is incompatible with the applicable legislation,
and we therefore sent a petition to the Ministry
of Natural Resources and Spatial Planning for
a review of the legality of the Decree on
Amendments and Additions to the Decree on
the Za Travnikom ZN. The Ministry of Natural
Resources and Spatial Planning referred the
application to the Ministry of the Environment,
Energy and Climate for consideration, which
agreed with the legal opinion and called on the
Municipality of Šentjur to bring the Decree into
line with the applicable legislation.
The Company is also developing processes to
reduce the amount of red gypsum and is
looking for other options for filling in different
locations, with the aim of sustainable
development and a circular economy, as well
as extending the time available for disposal.
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. The plan of measures
Low

Graphics
Business report
65
IV. Spatial and environmental risks
Risk name
General description at
company level
Risk management
Risk level
to be taken was sent to supplement the
requirements for the partial baseline report.
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 also prepared a sustainability report for
2023 as part of the annual report.
We collect and consider stakeholder feedback
and feed it into our corporate risk
management process. We behave in a
socially responsible way. We prepared a draft
ESG strategy, which will be upgraded in 2024
in line with the European Sustainability
Reporting Standards (ESRS).
Low
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
A recruitment system is in place, with a job-
training programme and a mentor for each
post.
As part of the 2023 implementation targets, we
are setting up a system to inventory all specific
and generic skills in the Company for all
business units/departments, a renewed system
of onboarding for new hires and a review of
existing skills for employees, along with a
revision of the competency model.
Based on the revised competences per job, we
will train staff in areas where competences are
lacking.
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.
Low

Graphics
Business report
66
V. Human resources and organisational risks
Risk name
General description at
company level
Risk management
Risk level
We inventoried the key positions in the
Company, identified possible successors, and
defined the time to replacement and the
additional competences needed.
For the most promising candidates, we run a
leadership development programme called the
Leadership Academy. In addition, we provide
coaching for employees.
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 are continuously implementing
organisational change and adapting with agility
to new circumstances.
In addition to traditional recruitment methods,
we use innovative social recruitment solutions
to find new employees.
We offer scholarships. 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 our business units,
keep each other informed and take action to
resolve any non-compliance.
We have 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 Ethical
Conduct and Practice. A mechanism is in place
to disclose or report misconduct.
Low

Graphics
Business report
67
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
We continue to implement a number of
performance targets that increase the level of
digitisation and computerise and simplify
business processes:
− we are upgrading the modules in Power
BI business analytics as planned,
− we increased the share of users and
upgraded modules in Moja Cinkarna,
− we are continuing with the roll-out of the
new document system,
− we are continuing the migration of Oracle
Forms 6 to 12,
− activities related to the modernisation of
the maintenance information system are
progressing according to plan.
Low
Risk of cyber
attacks (Security)
Outage due to a cyber-
attack on the workstation
and/or the server system for
the management system by
malware with the intent to
extort or steal data
The "phising" test we carried out alerted us to
certain shortcomings, which we are
addressing.
We placed an order for the purchase of two
advanced network monitoring systems to
monitor the network against possible
intrusions.
With the help of an external expert, we carried
out an internal audit process in this area. We
will put the improvement opportunities
identified into practice in the coming months.
Low
Risk of server
system failure
(Security)
Production downtime due to
failure of the server system
for the management system
(fire, earthquake, water,
etc.)
We are setting up a virtualised back-up server
system for management systems in two
locations. Until the project is completed, we are
managing the risk with physical backup
servers.
We are continuing with electrical and network
modifications in both server rooms and adding
other components where there are delays.
Low

Graphics
Business report
68
Integrated management system
An integral part of the management of Cinkarna Celje d.d. is an integrated management system,
which covers 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 at the BU Kemija Mozirje site, we are registered in the EMAS environmental
management and assessment system. For more information on compliance with the standards,
please see the section Compliance and standards.
Internal audits
According to the annual internal audit plan, 11 audit areas were planned for 2023:
− Seven areas by organisational unit: BU Kemija Celje, BU Kemija Mozirje, BU Polimeri,
Marketing-Nabava, HR and General Services, Environmental Protection Department and
Quality Department;
− Three horizontal audits: Corporate Risks and Objectives, Information Security, Risk
Assessment for Employees and the Environment, and Fire Safety;
− One horizontal audit reviewing actions from previous audits – Preliminary Audits.
Chart: Number of non-compliances and internal audit recommendations in 2019-2023
External audits
The external audit of the integrated management system according to ISO 9001, ISO 14001, EMAS
Regulation and ISO 45001 for 2023 was carried out at the end of May 2023. No non-compliances
were found. The auditors made 17 recommendations.
Chart: Number of non-compliances and recommendations from external audits in 2019-2023
Graphics
Business report
69
Chart: Comparison of the number of internal audits and external audits carried out by SIQ in 2019-
2023
Other audits and reviews
The Company's annual accounts are audited each financial year by an external auditor. 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 is reviewed and submitted annually. 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.
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 client 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 key to the
smooth and secure operation of the Company. Our Information Security Policy, which was established
in 2006, contains the basic rules and principles for ensuring security.
The Information Security Team, made up of members from different organisational units, plays an
important role in monitoring information security risks and developing measures to mitigate them.
Their tasks include:
− approving strategic guidelines for information security,
− approving information security policy documents
− assisting 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.
Over the past year, we carried out a number of activities that have contributed to improving
information security:
− checking and responding to incidents on an ongoing basis,
− educating staff and raising awareness,
Graphics
Business report
70
− systematic review of business IT systems, showing risks and recommendations to address
them,
− implementing actions and recommendations from external reviews,
− development of rules for communication between networks to ensure secure
communication,
− updating the information security policy to ensure compliance with legislation,
− regular communication with the management and risk reporting,
− organising a phishing attack simulation to raise awareness and educate staff.
We regularly inform employees about information risks and encourage them to be vigilant against
suspicious messages.
An e-mail address is set up to forward suspicious reports, which are then professionally examined.
No information security incidents were reported in 2023.
Graphics
Business report
71
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 increasing demands from owners, customers and
legislation. In 2023, we continued our activities in the area of sustainable development.
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 build on this in the future in order to manage our supply chain, encourage our suppliers
to be more sustainable and enable our customers to achieve their sustainability goals.
Key Sustainable Development Goals in 2023
In the face of increasing climate change and our competitiveness in the global market, we also
included sustainability activities in our Strategic Business Plan for the 5-year period. We recognise
that only by taking a strategic approach will we be able to meet the challenges and implement
adaptations effectively.
Goal
Status
Build solar power plants with a total capacity of 6,300 kWp of renewable
electricity, using solar energy.
Eleven additional solar power
plants were built in 2023,
amounting to 3,979 kWp. Due
to some of the Company's
buildings being structurally
unsuitable, it was not
possible to reach this goal.
The total capacity of the
plants in 2023 is 5,793 kWp.
Reduce the specific water consumption of our main product, titanium dioxide,
by 5% in the plan year.
In 2023, we did not reach the
planned reduction goal due to
lower utilisation of the
production line (overhaul).
To pursue the goal of re-use - with elements of the equipment we will refurbish
and by recycling waste water. The latter is a medium-term objective that
requires prior in-depth development work (ongoing), as well as the acquisition
of the necessary documentation.
In progress.
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 (Scope 1 and
2) 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 produce a
mass and heat balance of our main production process. We already achieved
Graphics
Business report
72
energy improvements in the pre-drying process. We are continuing with the
energy improvement project in 2024.
For a more detailed
description, see the section
on climate change.
Achieved In progress Not achieved
We prepared a draft ESG strategy, with a particular focus on the climate strategy, which will be
complemented in 2024 by the requirements of the ESRB standards. It will further define the
environmental, social and governance objectives.
We prepared a sustainability report for 2023, which is included in our regular annual report and is
the second such report (the first was for 2022). The Company's Sustainability Report follows the
Guidelines for Non-Financial Reporting (Methodology for Reporting Non-Financial Information),
adopted and published in the Official Journal of the European Union in July 2017, and takes into
account the provisions of the Directive on disclosure of non-financial and diversity information by
certain undertakings. We report in accordance with the GRI (2021) standards for the whole Company,
and references to the indicator are given at the end of the report. We are committed to transparency
in our disclosures, ensuring the credibility of the data and pursuing clarity in reporting.
To prepare the Sustainability Report, we set up a cross-functional team of staff responsible for
carrying out all the necessary sustainability activities. We also brought in an external consultancy
firm to help us prepare the groundwork and to train the management team and key staff. This
included a number of training sessions on the role of sustainable business and the legislative
framework in this area, presentations on the ESRB standards and the approach to preparing
sustainability reporting and reporting compliant with the Taxonomy Regulation. Bernarda Podgoršek
Kovač, Head of the Environmental Protection Department, is responsible for the implementation of
the project.
Due to errors identified in the 2022 report, we added certain corrections to the information in the
chapters on climate change, water resources and waste management.
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
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
Health and well-
being
− ISO 45001 - Occupational Health
and Safety Management System
implemented
− Taking care of employees' health
and implementing occupational
health and safety measures
− We are working towards the goal of
zero workplace injuries
− Provide the healthiest and safest
possible environment for
employees and all external visitors
− Minimise employee exposure to
hazardous working conditions
Graphics
Business report
73
United Nations
Sustainability
Goals
Areas, activities
Objectives
− Implementation of the Minute for
Safety activity among production
employees
− Implementation of a workplace risk
assessment system
− Activities to identify, record and
eliminate potential hazards and
near misses in the work
environment
− "CC um" application for employee
suggestions in the field of
occupational health and safety
− Annual development of an
employee health promotion
programme
− Financing or co-financing of sports
activities for employees outside
working hours
− Supporting socially responsible
actions and sponsorship of sports
activities in the local environment
− Encourage employees to lead
healthy lifestyles and exercise
− Minimise or reduce potential risks
to the health of the local population
as a consequence of Cinkarna's
operations to a minimum or below
the permissible limit.
− Promote health and exercise
among young people and older
people in the local community
High-quality
education
− Conduct regular training for staff in
various areas of expertise
− Conduct a mentoring programme
for new recruits
− Staff scholarship opportunities for
technical students
− Opening up compulsory internship
opportunities 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 employee competences
for adequate process control and
new product development
− Facilitate effective knowledge
transfer between employees
− Develop young people's interest in
chemical skills and professions
and open up opportunities for their
career development
− Raise awareness among young
people in the regional environment
of the importance of chemistry in
various fields for sustainable
development.
Gender equality
− Diversity policy in preparation
− Ensuring equal pay, not on the
basis of gender, but on the basis of
workplace
− Ensuring equal opportunities for
employment and promotion
regardless of gender
− Prevent and eliminate any
discrimination within the Company
Clean water and
sanitation
− Regular monitoring of wastewater,
surface water and groundwater
− Implementation of the projects
Integrated Water Management
and Alternative Source of Process
− Minimise the risks of contamination
of local watercourses from which
water is abstracted for production
processes.
Graphics
Business report
74
United Nations
Sustainability
Goals
Areas, activities
Objectives
Water Supply from the Tremerje
Municipal WWTP
− Conserve local water resources
and their habitats, and maintain the
good status of watercourses
− Reduce water abstraction from
watercourses and increase internal
water recycling
Affordable and
clean energy
− Energy management systems
− Implementing targeted energy
monitoring
− Implementing energy efficiency
and renewable energy measures
and investments
− Installation of 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
− Reduce energy costs and increase
the competitiveness of the
Company
− Reduce CO
2
emissions from our
activities
Decent work and
economic growth
− Employment of people with
disabilities
− Adopted Code of Ethical Conduct
and Practice
− Coordination of the collective
agreement with the Company's
two representative trade unions
− Funding plan for supplementary
pension insurance for all
employees established
− Adoption of the Policy on the
Prohibition of Sexual and Other
Harassment and Mistreatment in
the Workplace
− 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
business and ethical conduct
among employees in all aspects of
our business
− Create an effective dialogue with
employee representatives on
employee rights
− Enable employees to live with
dignity after their working life
− Provide a safe and decent working
environment for all employees and
prevent any sexual or other
harassment and ill-treatment in the
workplace
Industry,
innovation and
infrastructure
− Development of new products with
improved properties in the field of
TiO
2
pigments, powder varnishes,
masterbatches, etc.
− Encouraging innovation among
employees by creating an
environment for suggestions (CC
um app)
− Provide high quality products with
high added value
− Contribute to the competitiveness
of the European economy in TiO
2
and in the value chain
− Provide environmentally sound
products
− Obtain as many useful suggestions
as possible from employees for
internal process improvements
− Build partnerships and open new
links for cross-industry networking
− Strengthen awareness of the
importance of sustainable
Graphics
Business report
75
United Nations
Sustainability
Goals
Areas, activities
Objectives
development and spread a culture
of responsible behaviour to bring
about the necessary changes.
Responsible
consumption and
production
− Investments in new product
development, best available
technologies and environmental
process improvements
− Re-use of materials in production
processes
− Manufacture of CEGIPS and
RCGIPS by-products
− Optimising the use of materials in
the value chain
− Reduce waste in the value chain
− Reduce environmental impacts
from production processes
− Increase the re-use of waste raw
materials in the Company
Climate
measures
− ISO 9001 – Quality Management
System and ISO 14001 –
Environmental Management
System implemented
− EMAS implemented for the Mozirje
site
− Calculation of the carbon footprint
of the Company (Scope 1 and 2)
− TiO
2
carrier product LCA
calculation (for our product and at
TDMA level)
− Air emissions monitoring
− Ambient air quality monitoring
− 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
− Manage emissions from our
activities
− Monitor our impact on air quality
Life on land
− Implementing pollution prevention
measures and monitoring its own
impact on the environment through
regular monitoring
− Introducing technological change
with minimum impact on the
natural environment
− 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
Membership in associations
We are aware of the partnership links we need to achieve sustainable goals and to act together on
the market, and we are members of several associations, namely CEFIC (European Chemical Industry
Council), ESA (European Sulphuric Acid Association), TDMA (Titanium Dioxide Manufacturer
Association), the European Union Copper Task Force and the Green Network of Slovenia.
Aleš Skok, President of the Management Board, is a member of the Management Board of the
Association of the Chemical Industry (Chamber of Commerce and Industry of Slovenia - GZS) and
the Celje Regional Chamber of Commerce. Marko Cvetko, Head of the HR and General Services, is a
member of the Supervisory Board of the Chamber of Commerce and Industry and a member of the
Management Board of the Chemistry Section of the Association of Employers of Slovenia. Cinkarna
is also a member of this association. Miran Špegel, Assistant General Manager, is a member of the
Management Board of the Association of Metallic Materials and Nonmetals (ZKMN) of the Chamber
of Commerce and Industry.
Graphics
Business report
76
We are also members of the Slovenian Accreditation, with Lorna Flajšman representing the
compliance assessment bodies.
We are committed to responsible, safe and sustainable TiO
2
production through the TDMA/Titanium
Dioxide Manufacturers Assocciation.
Approach to stakeholder involvement
We cannot operate successfully without good and partnership relationships with our key
stakeholders. We strive to create honest and long-term relationships at all levels of our business. In
doing so, we follow our Code of Ethical Conduct and Practice and build on our respect for 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. The table below presents our key stakeholders and how we communicate with them.
Information is provided through the channels presented in accordance with established procedures
and rules, most of which are produced on a regular periodic basis (annual, quarterly, monthly, etc.)
or as the need arises or is triggered.
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
Company's annual report
1 time per year
General Meeting
Normally 1 time per year
Meeting of internal auditors
of integrated management
systems
1 time per year
Meetings of the Supervisory
Board and its Committees
5 times per year
Materials and minutes for
the General Meeting of
Shareholders, Supervisory
Board and Committees
meetings
For each general meeting
or session
Quarterly report on
operations
Every quarter
Ljubljana Stock Exchange's
electronic information
system (SEOnet)
Regularly
Quarterly reports and annual
report
Quarterly and annually
Employees
− Strengthening company
loyalty and creating good
team relations
− Building relationships
between employees and
managers
Cinkarnar internal newsletter
2 times per year
Annual interviews
1 time per year
Regular training
Several times per year
Picnics or other forms of
employee socialising
Normally 1 time per year
Electronic notifications
Regularly
Graphics
Business report
77
Stakeholders
Communication objectives
Communication channels
Communication frequency
− 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
CC um
Regularly
Social networks
Several times per week
Regular health check-ups
Depending on the risk
assessment for the
workplace
Open door of 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.
− Communicating the code of
conduct for sustainable
business partners to key
suppliers and obtaining
confirmation of adherence to
it
Supplier evaluation
questionnaires
1 time per year
Electronic notifications,
website
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
(municipalities,
municipal
communities)
− Building relationships and
cooperation with the local
community
− Communicating how
processes work, monitoring
environmental impacts,
changes affecting local
populations
− Supporting activities in local
communities
− Local community
development
Company website
Regularly
Social networks
Several times per week
Press conferences
Several times per year
Open Doors Day
Occasionally
Press releases
Several times per year
Electronic announcements
Occasionally
Specialised
public
(professional
associations,
institutions,
schools,
institutes,
− Involving the professional
public in research and
development activities
− Raising awareness of
company processes,
Company website
Regularly
Social networks
Several times per week
Competitions for schools
Normally 1 time per year
Press Releases
Occasionally
Electronic announcements
Occasionally
Professional events
Occasionally
Graphics
Business report
78
Stakeholders
Communication objectives
Communication channels
Communication frequency
financial
institutions, etc.)
products and environmental
impacts
− Participation in events
− Professional skills
development
Quarterly reports and annual
report
Quarterly and annually
Investment events of the
Ljubljana Stock Exchange
2 times per year
Environmental Statement for
BU Kemija Mozirje
1 time per year
Materiality matrix
In the context of responsible impact management, identifying the relevant 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 stakeholders is presented in the materiality matrix that we prepared in 2022. The creation
of the materiality matrix is part of Cinkarna Celje d.d.'s sustainability management and reporting
and reflects the assessment of 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 in the long
term.
In 2024, it is foreseen to carry out an assessment of the significance of impacts and the financial
significance and, on this basis, to prepare a dual significance matrix in line with the European
Sustainability Reporting Standards (ESRS).
The process leading up to the materiality assessment in 2022 followed the following steps:
identification of material sustainability themes across the Environment, Society and Governance
(ESG) domains, survey of key stakeholders (e-questionnaire method), analysis and development of
a materiality matrix.
For the preparation of the materiality matrix, we identified six main stakeholder groups: owners,
supervisors (Cinkarna Celje d.d.), employees, suppliers, customers, local community (municipalities,
municipal communities) and specialised public (professional associations, institutes, financial
institutions, etc.). A total of 362 respondents answered the e-questionnaire, including both Slovenian
and international stakeholders. In order to create the materiality matrix, we grouped the
stakeholders into two groups when analysing the responses. One group includes owners and
supervisors (important for Cinkarna Celje d.d.), the other group includes employees, suppliers,
customers, local community and other publics (important for stakeholders). The questionnaire
covered all three strands of sustainable management, namely the natural environment, the social
environment and corporate governance. Indicators were determined based on an impact assessment.
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.
On the social front, the importance ratings between Cinkarna Celje and its stakeholders are fairly
aligned, with both putting fair remuneration first. Both Cinkarna Celje and stakeholders rank health
and safety at work of employees as a high second priority. Among environmental indicators, energy
consumption is the most important for Cinkarna Celje, followed by pollution incidents and waste
Graphics
Business report
79
management. Air pollution is by far the most important issue, followed by water pollution and
protection of water resources. Soil pollution is also ranked fairly highly by stakeholders, and the
management of harmful substances and pollution incidents are ranked much higher in importance
than by Cinkarna Celje. As Cinkarna Celje considers the management of these areas to be at a high
technological level, it gives these topics slightly lower importance. In terms of importance,
stakeholders rate energy use slightly lower than Cinkarna Celje, and the carbon footprint of the
Company and products even lower.
As all of these aspects are classified as important, the Company manages them strategically in the
long term.
Diagram: Materiality matrix of Cinkarna Celje d.d..
Graphics
Business report
80
Environmental aspect
As part of the chemical industry, we are aware of our role in the transition to a green economy. We
are part of a value chain that already plays an important role in raw materials for low-carbon, energy-
efficient and long-lasting products, and this importance may increase in the future.
Our activities cause multiple environmental impacts, which are managed holistically within the
Company and increasingly along the value chain. We take a strategic approach to energy
management, prevention of pollution to air, water and soil, conservation of water resources and
wastewater management, conservation and restoration of biodiversity and ecosystems, and efficient
management of raw materials and waste. We develop circular models and deploy the best available
technologies for responsible environmental management and a low-carbon economy.
Key policies, standards and other documents on environmental management include:
− Quality Assurance, Environmental, Health & Safety and Sustainable Development Policy
(latest version 2023)
− Major Accident Prevention and Mitigation Policy (latest version in force 2020)
− ISO 9001 - Quality Management System (1999)*
− ISO 14001 - Environmental Management System (2009)*
− EMAS - Environmental Management and Audit Scheme (2009, registration is renewed
annually; BU Kemija Mozirje)
− Responsible Environmental Management Programme (POR) (1998)
− HACCP - Hazard Analysis and Critical Control Points (2004)
− Environmental Risk Reduction Design (latest version 2020)
− Protection and Rescue Plan (2007)
− ISO 50001 (2024)
* Policies for ISO 90001, ISO 14001, ISO 45001 systems are combined in the Quality Assurance,
Environmental, Health & Safety and Sustainability Policy since 2015.
Environmental management
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 are 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 commitment to these areas, which often go 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.
As part of our environmental policy, we are 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 taking action to prevent potential damage to the environment;
− planning and implementing activities to mitigate risks and responding and communicating
quickly in emergency situations to prevent environmental pollution;
− monitoring the life cycle of the carrier product;
− calculating the carbon footprint at organisational level;
− contributing to climate change mitigation through various activities.
In 2023, as part of our Strategic Business Plan, we formulated our strategic commitments in the area
of sustainable development and energy transformation, which are based on environmental
compliance, comprehensive identification and management of environmental impacts, requirements
Graphics
Business report
81
for green transformation, mitigating energy costs, chemical legislation requirements and, in relation
to the above, risk management.
Quality Assurance, Environmental, Health & Safety and Sustainable Development Policy
The policy is based on a vision of growth and achievement of the Company's key strategic objectives,
which are focused on sustainable development and on 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.
Managers and executives motivate and involve all employees in contributing to improvements
through the implementation of the established management system and personal example. The
adequacy, sufficiency, effectiveness and ongoing implementation of the management system are
regularly verified through internal audits and management reviews.
The policy sets out basic principles and objectives in the areas of quality assurance, environmental
management, health & safety and sustainable development, which relate to customer satisfaction
with our products and services, supplier selection, consideration of the needs of relevant stakeholders
such as employees, owners, the social community and others, trained and motivated staff, ensuring
the health and safety of employees, responsible environmental management, energy management,
ensuring the control and measurement of our products, services and processes, and planned
development and continuous improvement to achieve the set objectives.
The Policy is yearly reviewed and updated (the latest version is valid from 25 April 2023). The full
Policy is available on our website https://www.cinkarna.si/okolje-in-skupnost.
Major Accident Prevention and Mitigation Policy
We also handle hazardous substances in our operations and therefore 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 were no significant spills or major accidents in the last five
years.
The Policy is reviewed and updated (last version 15 October 2020). The full Policy is available on our
website https://www.cinkarna.si/okolje-in-skupnost.
Environmental communication, issues and complaints
We regularly communicate our plans and achievements to all our stakeholders through various forms
of communication. Comments and complaints regarding environmental impacts are accepted at
varstvo.okolja@cinkarna.si, which is published on the Company's website
https://www.cinkarna.si/okolje-in-skupnost.
The Environmental Protection Department is responsible for receiving, registering and responding to
questions or complaints from the civil public concerning environmental impacts. A register of public
questions and complaints received is kept. Complaints are reported to the Management Board and
are also addressed at the annual management review. The details of the system of notification in the
event of accidents and emergencies and the system of recording public questions and complaints are
laid down in the organisational rules - Incident Management and Safety and Emergency Response
System. The responsibility for communication with the external public lies with the Management
Board.
Graphics
Business report
82
Objectives and measures
Each year, the Company's management defines the main environmental policy objectives that we
specifically pursue in each year and on the basis of which we plan and implement actions. In 2023,
we have focused on the following areas:
− taking action to address environmental risks,
− sustainable development and circular economy,
− maintaining or ensuring regulatory compliance.
Compliance and standards
In the field of the environment, we act in accordance with the requirements of legislation and
environmental permits. Environmental and other risks are managed through our well-established
ISO 9001 quality system, ISO 14001 environmental management system and ISO 45001
occupational health and safety system. At the BU Kemija Mozirje site, we are registered in the EMAS
environmental management and audit scheme, designed to assess and improve the environmental
performance of organisations and to inform the public about this performance.
The effectiveness of the systems in place, including the requirements of the EMAS Regulation and
the Environmental Statement, are verified annually by the SIQ (Slovenian Institute of Quality and
Metrology) certification company. On the basis of the environmental verification and all documented
evidence, the Environmental Agency of the Republic of Slovenia (ARSO) issued on 17 September
2021 a Decision on the renewal of the EMAS registration with registration number SI-00003 and the
corresponding EMAS Registration Certificate valid until 30 November 2024. Information on significant
environmental aspects is provided to interested external publics via the Environmental Statement
for Cinkarna Celje BU Kemija Mozirje.
Over the last five years and more, we have not been fined or sanctioned for non-compliance with
environmental legislation and regulations.
Ecological monitoring
We regularly monitor wastewater, surface water, groundwater, soil, air emissions, noise sources,
waste assessment, tank leakage and other required environmental monitoring. We are authorised to
carry out ecological monitoring of wastewater (No 35435-19/2021-4) and accredited for sampling
and testing (LP-050 Cinkarna Celje d.d.).
In 2023, the accreditation of the Quality Department and the Environmental Protection Department
laboratories to ISO 17025 for wastewater sampling and testing was reconfirmed with a successful
external audit.
Responsible Care Programme
We are members of the Responsible Care Programme® (POR) group of the Association of the
Chemical Industry. Each year we meet all our obligations, as evidenced by our Responsible Care
Report. Based on this, we are awarded the Responsible Care® (POR®) certification every year. This
demonstrates our voluntary commitment to continuous improvement in the areas of environmental
protection, health and safety at work. We have been participating in the programme since the
initiative's inception in 1998.
HACCP system management
In 2004, we introduced the HACCP system in the food facility, which was completely overhauled in
2017 in cooperation with the National Laboratory for Health, Environment and Food (NLZOH). The
system is rigorously implemented and continuously improved to reduce the risk of contamination.
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 rooms. No
non-compliances were detected during the inspections in 2023. To ensure the successful
implementation of the HACCP system, we organise bi-annual training for our staff in cooperation with
NLZOH.
Graphics
Business report
83
Environmental due diligence
We are very conscious of our environmental responsibility in the environment in which we operate,
and we carried out environmental due diligence as early as 2013, when risks from legacy burdens in
areas of current production were identified. We continued our investigations in this area in 2015-
2019 with an external contractor, CDM Smith. The information was taken into account in the
preparation of the Baseline Report in accordance with the Environmental Protection Act (ZVO-2). In
the period between 2019 and 2022, due diligence according to environmental standards was not
carried out.
Ecovadis Sustainability Rating
For 2022, we received the Ecovadis Sustainability Rating Silver Medal, which assesses sustainable
sourcing alongside environmental protection, human rights and employee health and ethics. The
rating for 2023 will be available at the end of April 2024.
Climate change
As an energy-intensive company, climate change is an important aspect of Cinkarna Celje's
management and a priority strategic focus for the green transition, which is why energy
transformation is one of the pillars of the Company's development strategy. The business strategy
for the period 2024-2028 was adopted in November 2023 and foresees the implementation of
activities in the field of energy efficiency, as well as the expansion of renewable energy systems and
the cogeneration of electricity from steam generated by sulphur incineration, and other projects such
as the preparation of process water from waste water from the municipal wastewater treatment
plant. We continue to actively manage energy and energy sources in our business and production
processes in line with European guidelines (Fit for 55, REPowerEU) and ISO 50001 - Energy
Management Systems. Activities are underway for the certification according to this standard, which
is planned for 2024.
A comprehensive energy audit of the Company was carried out in September 2021, which was the
basis for the next steps in energy management. These activities optimise energy use while reducing
energy costs, increasing the Company's competitiveness and introducing investments for the
transition to a low-carbon society.
Energy consumption in the organisation
The implementation of energy efficiency measures is based on a roadmap of indicative targets set
each year by the Company's management. These are then supported by the implementation of
performance targets. The four most important areas in which we regularly optimise the Company's
energy use 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, wood biomass and, from 2022, solar energy from our own solar power
plants as energy sources in our business and production processes.
Graphics
Business report
84
Table and chart: energy consumption by source in 2023
Energy source
2023
Share
(v kWh)
%
Steam
142,156,000
42.6
Electricity
69,168,858
20.7
Natural gas
110,013,125
32.9
Compressed air (2.5 bar and 7.5 bar)
9,155,290
2.7
Wood biomass
804,516
0.3
Solar energy
2,598,365
0.8
TOTAL
333,896,154
100
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.
Table: Energy consumption in 2019-2023, in kWh*
Energy source
(kWh)
2019
2020
2021
2022
2023
Steam
172,681,600
178,464,800
181,619,200
171,077,600
142,156,000
Electricity
91,559,142
91,591,880
89,677,581
83,719,239
69,168,858
Natural gas
137,129,268
145,776,927
144,443,478
135,988,503
110,013,125
Compressed air
11,030,267
12,040,832
11,232,542
15,950,618
9,155,290
Wood biomass
756,952
534,100
450,310
420,880
804,516
Solar energy
0
0
0
1,189,055
2,598,395
TOTAL
413,157,229
428,408,539
427,423,111
408,345,895
333,896,184
* Note: In the 2022 report, there was an error in the reporting of energy consumption, namely in the case of steam consumption
due to an error in data capture and input, and in the case of electricity consumption in the case of company-wide data capture
and double counting of a part of the electricity (electricity used to produce compressed air). Also, the reporting of wood biomass
consumption was omitted.
We provide the corrected information on energy consumption for the reported period 2018-2022 in
the 2022 Annual Report, the reported information 2023 (correction) and the difference. An error
occurred during data capture and entry.
Graphics
Business report
85
Correction of information
Energy type
(kWh)
2018
2019
2020
2021
2022
Steam (reported 2022)
142,390,400
132,593,600
183,349,600
190,456,800
193,180,000
Steam (correction 2023)
125,077,600
172,681,600
178,464,800
181,619,200
171,077,600
Difference
17,312,800
-40,088,000
4,884,800
8,837,600
22,102,400
Electricity (reported 2022)
93,537,365
100,327,039
101,350,402
98,480,843
97,470,677
Electricity (correction 2023)
85,679,088
91,559,142
91,591,880
89,677,581
83,719,239
Difference
7,858,277
8,767,897
9,758,522
8,803,262
13,751,438
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
Wood biomass
416,500
756,952
534,100
450,310
420,880
Solar energy
0
0
0
0
1,189,055
Total (reported 2022)
371,890,945
381,080,174
442,517,761
444,613,663
443,778,853
Total (correction 2023)
347,136,368
413,157,229
428,408,539
427,423,111
408,345,895
Difference
24,754,577
-32,077,055
14,109,221
17,190,552
35,432,958
Reduction of energy consumption
In 2023, there is a significant decrease in total energy consumption of 18% compared to 2022. The
decrease is largely due to the autumn overhaul of titanium dioxide and sulphuric acid production. At
that time, production was carried out on only one calcination furnace (out of two), which is reflected
in a reduction in gas consumption. The two calciners account for 65% of the Company's total gas
consumption. The reduction in energy consumption was also achieved by implementing efficiency
measures and modernising equipment. Consumption of wood biomass (in BU Kemija Mozirje)
increased by 48%, due to the longer heating season.
In 2023, we continued with the solar power plant project. In addition to the two plants already built
in 2022, eleven more solar power plants were built on the roofs of the Cinkarna's buildings in 2023,
with a total capacity of 5,793.22 kWp, amounting to 6,082,860 kWh of electricity generated annually.
The share of energy generated by photovoltaic systems amounts to just over 3% of the total
electricity needed or consumed by Cinkarna.
Energy efficiency measures and equipment upgrades implemented:
− Organisational measures on energy saving and efficiency, including:
o motivating staff;
o providing information on energy use characteristics to all employees;
o implementing and monitoring soft measures such as:
▪ correct lighting, taking daylight into account;
▪ switching off lights in rooms when not in use;
▪ switching off work equipment and accumulating operation over a shorter
period of time;
▪ introducing correct temperature control and monitoring values;
▪ correct use of appliances and work equipment;
▪ rapid fault reporting system (air/water leakage points, appliance servicing,
etc.).
The estimated annual savings from the implementation of these measures amount to 1,249,000
kWh.
− Replacement of old electric motors with energy-efficient IE3 motors: 21 old motors were
replaced with new IE3 motors in 2023, saving 173,000 kWh per year.
− Lighting renewal - LED replacement: in 2023, 340 old luminaires were replaced with 329 LED
luminaires in the TiO
2
BU. The annual energy savings amount to 160,027 kWh. At the other
sites, 356 old luminaires were replaced with LED luminaires. The total annual saving of the
replaced lighting is 278,527 kWh.
Graphics
Business report
86
− Reactive energy compensation: in 2023, we optimised the regulation of reactive energy
compensation at the Cinkarna 1-5 metering point (RTP TiO
2
) and at the gypsum
desulphurisation plant metering point, so that the operator does not charge us for reactive
energy. However, the compensation at the BU Kemija Mozirje metering point is outdated and
will be replaced with a new one in 2024. Corrective measure KM 01/2024 was issued.
− Installation of frequency controllers: frequency controllers are fitted to electric motor drives
where speed variation is required. For example, reducing the speed of the pumps by 20%
reduces the power required by 50%.
In 2023, of the major consumers, a frequency converter was installed for the NETZSCH sand mill in
TiO
2
production and a frequency-controlled compressor was purchased for the gypsum filtration plant
– Za Travnikom Waste Disposal Facility.
We estimate that the measures implemented will save at least 1,700,000 kWh in 2023. The remaining
lower energy consumption compared to 2022, of 71,754,000 kWh, can be attributed to reduced
production due to overhauls and reduced customer orders.
Investing in renewable energy
The construction of solar power plants on the roofs of our buildings is our long-term business interest,
and we continue to invest in order to fulfil our commitment to increase the use of renewable energy
sources, thereby reducing the share of fossil energy consumption in line with the guidelines of the
Slovenian Development Strategy by 2030 and EU directives.
The construction of the solar power plants planned in the project is expected to be completed by the
end of 2027. The total amount of electricity generated is expected to represent just over 6% of
annual electricity consumption, reducing CO
2
emissions by around 2,900 tonnes per year. This
represents a 4.68% reduction compared to the 2021 baseline year, when total CO
2
emissions
amounted to 61,910.43 tonnes CO
2
eq.
In 2024, we will build a solar power plant with a total installed capacity of 1,300 kWp and 1,365 kWh
respectively. We will continue to build solar power plants on available roofs up to the 9,000 kWp
envisaged, but this will require some renovation of the roof surfaces, either in terms of replacing the
roofing or improving the structural integrity of the structure itself. At the same time, we are working
on a project to build a solar power plant on the car park at the main entrance of the Company. By
the end of 2024, we will have increased the share of self-supply of electricity to around 7.8% of the
total annual energy consumption, which is close to 100,000,000 kWh.
We are also gathering information for the construction of solar power plants in degraded areas. We
see an opportunity at the Bukovžlak non-hazardous waste landfill site, once the rehabilitation is
complete. This includes the installation of impermeable cover and drainage arrangements and is
expected to take another four years. Positive approvals would allow the construction of a solar power
plant with a capacity of up to 4,000 kWp, which would generate approximately 4,200,000 kWh per
year, the final installed capacity depending on a number of factors, primarily the possibility of
connecting to the existing electricity grid. This, in addition to obtaining permits, represents a major
risk for the project, as the nearest transformer substation is a good kilometre away. In this way, a
degraded area that is not suitable for other activities could be put to good use for the generation of
electricity from renewable energy sources.
We plan to operate a network of solar power plants, with our own electricity generation expected to
be used for self-supply, depending on the Company's needs.
The main objectives and reasons for building solar power plants are:
− electricity generation amounting to 10% of total electricity needs till 2030,
− long-term cost reduction and increased competitiveness of the Company,
− increase the share of RES in the Company's energy consumption,
Graphics
Business report
87
− reduction of CO
2
emissions till 2030.
Actions contributing to decarbonisation
As part of our strategic planning for decarbonisation, we are investing in projects to increase energy
efficiency (EE) and the use of renewable energy (RES). Certain investments are already underway,
while others are in the pipeline or undergoing feasibility studies.
Table: RES and EE measures that were implemented or are in the process of implementation
Investment
Estimated value of
investment in EUR
(excluding VAT and
subsidy)
Estimated annual
energy savings in
kWh
Investment status
Renewable energy sources
Installing a solar power plant on the
Polymeri and Rolling Mill building
886,000
1,650,000
Implemented in 2022
Solar power plant installation: Kemija
Celje, Graphics, Dining room, Hall A
1,352,000
2,310,000
Implemented in 2023
Installation of solar power plants: part
of the Marketing, Transport,
Multipurpose, Energy, Kemija Mozirje
and Maintenance buildings - Hall B
1,090,227
2,310,000
Implemented in 2023
Installation of solar power plants:
parking spaces in front of the main
entrance and the Marketing building
2,200,000
1,320,000
In 2024
Installation of a solar power plant at the
Bukovžlak non-hazardous waste landfill
site (ONOB) - the feasibility of
construction is being verified due to the
constraints of the degraded
environment, the zoning act, the decree
on post-war graves, the possibility of
connecting to the grid.
Approx. 6,500,000
5,500,000–
6,600,000
Viability check, in case
of a positive outcome,
implementation by
2030
Installation of battery E
3,900,000
No energy
savings, financial
savings
First phase in 2025,
second phase by 2030
Co-generation of electricity and steam
14,000,000
16,728,000
By 2025
Energy efficiency
Replacing old electric motors with
energy-efficient IE3 motors
852,500
3,135,000
Progressively by 2030
Replacement of two old transformers in
TP 7-10, neutralisation
99,272
53,000
Implemented in 2023
Replacement of obsolete lighting with
LEDs
440,000
864,000
Progressively by 2030
Replacing compressors with energy-
efficient ones
1,985,000
1,766,000
Progressively by 2030
Optimisation of the existing steam
pipeline
83,352
9,486,000
Implemented in 2023
Replacement of the heat exchanger on
the IKT2 acid
586,558
Operational
safety
Implemented in 2023
Energy intensity
Cinkarna Celje d.d. is an energy-intensive company because the Company's energy intensity
percentage (EIP) 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 all energy products in EUR and the
Graphics
Business report
88
production value in EUR, or with the AOP codes from the income statement: % EIP = Item G b
(energy costs)/Item F (gross operating profit) × 100.
In 2023, EIP's share in our Company was 12.10%. This means that the annual cost of energy
procurement was 12.10% of the total production value. The cost of energy purchases includes all
energy costs, namely natural gas, electricity and fuel for vehicles (trucks and cars) and others.
Company's carbon footprint
Managing greenhouse gas (GHG) emissions to air is one of the central aspects of Cinkarna Celje's
environmental management in the long term, for which we already made several important
investments and will continue to be one of the priority environmental areas in the future. 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 organisation carbon footprint of
Cinkarna Celje d.d., which will enable us to make measurable business decisions towards
decarbonisation in the future.
For 2021, we calculated the Company's carbon footprint according to the GHG Protocol for Scope 1
and Scope 2. The Company's carbon footprint report serves as a basis for decision-making and taking
important business decisions in the future, as well as for optimising our own operations in terms of
reducing operating costs.
The carbon footprint is based on the guidelines, recommendations and principles set out in the EN
ISO 14064-1:2019 standard for the calculation of carbon footprints at the organisational level and
the GHG Protocol
9
. 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
10
at the national level. The basic calculation of the carbon footprint of
Cinkarna Celje d.d. includes direct emissions and emissions from leased electricity. The standard
emission factors of the Jožef Stefan Institute and the IPCC (April 2022) were used for the CO2
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
covers leased electricity (location-based method).
Chart: Market-based carbon footprint share by Scope 1 and Scope 2 in 2021
9
SIST EN ISO 14064–1:2019 (Specification with guidance at organisation level for quantification and reporting of greenhouse gas emissions and removals):
o PAS 2060 (Carbon Neutrality),
o PAS 2050:2011,
o PAS 2060,
o JRC4 Guidelines (Guide for organisations).
10
Intergovernmental Panel on Climate Change [Core Writing Team, R. K. Pachauri and L. A. Meyer (eds.)].IPCC, Geneva, Switzerland, 151 pp.
Graphics
Business report
89
The calculations show that Scope 1 GHG emissions are 78,612 tonnes CO
2
eq., Scope 2 emissions
are 33,045 tonnes CO
2
eq. (site-based method) and 80,324 tonnes CO
2
eq. (market-based method).
According to the location method, Scope 1 contributes 70% to the total carbon footprint of Cinkarna
Celje d.d., while Scope 2 contributes 30%. The results show that the Company's electricity
consumption is lower compared to the consumption of fossil fuels and the chemical neutralisation
process.
According to the market-based method, Scope 2 contributes 51% to the total carbon footprint of
Cinkarna Celje d.d., while Scope 1 contributes 49%. The calculated indirect emissions of the
Company's leased electricity have almost the same impact on the environment as the emissions from
stationary and mobile sources and chemical processes of Scope 1.
Scope 2 GHG emissions vary between the methods used due to the emission factors specified.
Emission values can be more than 2 times higher. For the reporting of carbon footprint or GHG
emissions, Cinkarna Celje will use the carbon footprint results according to the location method (the
so-called emission factors for Slovenia).
Table: Carbon footprint by Scopes 1 and 2 in 2021*
Scope
Type of activity
2021
Uncertainty analysis
Tonnes CO
2
eq.
Scope 1
Stationary sources
(stationary combustion)
25,902,79
Good
Mobile sources (mobile
combustion)
2,962,28
Good
Neutralisation process
(process emissions)
49,747,15
Good
Scope 1 – total
78,612,22
/
Scope 2
Purchased electricity –
location method (all three
sites of Cinkarna Celje
d,d,)
33,045,37
Good
Purchased electricity –
market method (all three
sites of Cinkarna Celje
d,d,)
80,324,46
Good
Scope 2 – total (location
method)
33,045,37
/
Scope 2 – total (market
method)
80,324,46
/
Total
Scope 1 and Scope 2
(location method)
111,657,58
/
Scope 1 and Scope 2
(market method)
158,897,49
/
Biogenic carbon
tonnes C
Scope 1
21,439,70
Scope 2 (location method)
9,012,37
Biogenic carbon
tonnes C
Scope 1
21,439,70
Scope 2 (location method)
21,906,67
C = carbon
Graphics
Business report
90
* Note: In the 2022 report, there was an error in the Scope 1 carbon footprint of 76,833.82 tonnes
CO2 eq. due to incorrect use of units of measurement and process emissions not being taken into
account. The table below shows the correct values. The calculation of Scope 2 using the market
method has also been added.
In 2024, we will prepare a carbon footprint calculation also for Scope 3.
By implementing the envisaged energy efficiency measures and investing in renewable energy
sources, we estimate that by 2030 we will have reduced the carbon footprint of Scope 1 and Scope
2 by 7,386.5 tonnes CO
2
eq. and 14,353.4 tonnes CO
2
eq. respectively, compared to the baseline
year 2021.
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 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 titanium dioxide
carbon footprint 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.
Table: Average carbon footprint of titanium dioxide at TDMA level
Year
TDMA average (tonnes CO
2
eq./tonne TiO
2
)
2010
5.2
2012
5.3
2016
4.9
2021
4.8
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.
In 2023, Cinkarna Celje d.d., with the help of an external expert, independently calculated the carbon
footprint of the titanium dioxide product or made an assessment of the environmental footprint of
the product (LCIA) for 2021, which amounts to 4.02 t CO
2
eq./tonne TiO
2
.
Pollution
Preventing and reducing pollution requires an integrated approach and the implementation of various
measures at different levels, including impact assessment, identification of risks and legislative
requirements, technological innovation and awareness-raising.
The section on environmental management lists the key policies, standards and other documents
adopted to guide action in this area.
Emissions to air
Reducing emissions to air is key to improving air quality and reducing negative impacts on human
health and the environment. To do this, we set targets and reduce the sources of emissions that we
can influence and monitor.
We monitor emissions of substances to air at all outlets, in accordance with a monitoring programme
carried out by authorised external organisations. The key parameters are SO
x
, H
2
S and total dust.
We also measure NO
x
, CO, the sum of Group II substances Pb, Co, Ni, Se, Te, the sum of Group III
Graphics
Business report
91
substances Sb, Cr, CN, F, Cu, Mn, V, Sn and total organic carbon (TOC). From time to time we also
carry out process measurements.
The total annual dust emissions from all sources are reduced by 31% in 2023 compared to 2022.
The reduction is largely due to lower production due to the extensive overhaul in the last quarter of
titanium dioxide production, which is a significant contributor to emissions. Total dust concentrations
are well below the permissible limit at all outlets. The emission of total dust from the production of
pigmented titanium dioxide (the largest source), expressed as an annual average per tonne of TiO
2
produced (specific quantity), was 0.20 kg/t, which is almost the same as the previous year (0.21
kg/t TiO
2
) and does not exceed the 0.45 kg/t TiO
2
limit set in the Environmental Permit (OVD).
The total annual amount of sulphur oxides (expressed as SO
2
) from all sources in 2023 was 66,739
kg, a decrease of 43% compared to the previous year. Again, the decrease is largely due to lower
production as a result of the extensive overhaul in the last quarter of titanium dioxide and sulphuric
acid production, which contributes significantly to emissions. Concentrations, mass flow and emission
limits were not exceeded. The sum of the sulphur oxides emissions, expressed as an annual average,
from the emissions of the Decomposition and Dissolution emission source (Z8, Z9 and Z62) and the
Calcination emission source (Z12) also did not exceed the OVD limit value of 6 kg/t TiO
2
.
Other parameters (NO
x
, CO, Pb and Ni) in total dust are also monitored. Again, the measured mass
flows do not exceed the prescribed limit values in the OVD.
Table: Emissions to air at the Celje site in 2019-2023, in kg
Emission type (kg)
2019
2020
2021
2022
2023
Sulphur dioxide (SO
2
)
149,500
117,700
102,500
118,700
66,739
Nitrogen oxides (NO
x
)
10,300
16,700
18,800
12,690
10,355
Dust
12,288
12,679
14,116
13,260
9,118
Total emissions
172,088
147,079
135,416
144,650
86,212
Noise emissions
Noise in the living environment is an important factor that can affect people's quality of life and the
environment. The Company's activities generate noise. We manage noise emissions by regularly
maintaining equipment, insulating noise sources where necessary or installing equipment with lower
noise emissions.
Noise measurements are carried out once every three years, or a reassessment is carried out in the
event of changes (e.g. installation of new equipment that may increase noise levels). An authorised
organisation uses appropriate equipment to measure the noise level at a number of limit points, and
prepares a report and a monitoring programme for the next foreseen measurement period.
All of these measures ensure that our results comply with regulatory requirements, as demonstrated
by monitoring results at all production sites.
Emissions to soil and groundwater
Contamination of soil and groundwater is an important environmental challenge that we are
addressing with care. When assessing the risk of soil and groundwater contamination, we take into
account various factors such as the nature of the hazardous substances, the amount of the substance
stored or used, and the area of the installation. In accordance with the Environmental Protection Act,
we, as operators of activities and installations likely to cause pollution of a significant scale, prepared
and submitted to the Ministry of the Environment and Spatial Planning in 2023 an assessment of the
potential for pollution, a partial baseline report with a draft proposal for an operational monitoring
programme for soil and a draft proposal for an operational monitoring programme for groundwater.
The assessment of the potential for soil and groundwater contamination is an important step in risk
assessment and pollution prevention.
Graphics
Business report
92
At the Celje site, at the Za Travnikom and Bukovžlak waste disposal facilities and at the Bukovžlak
non-hazardous waste landfill, groundwater monitoring is carried out in accordance with the
environmental permit. The Bukovžlak non-hazardous waste landfill site was found to have an impact
on groundwater. In addition to the regular groundwater monitoring, the works foreseen in the Landfill
Reconstruction Project are being carried out to reduce this impact. The work is expected to be
completed in 2027.
Preventing major accidents
Our operations involve the handling of hazardous substances. As a low-risk facility, we establish and
maintain a high level of major accident prevention and mitigation within our safety management
system. This commitment is reflected in the policy we implement with the support of management
and the participation of all employees. The policy is regularly reviewed and updated (the latest one
in force is dated October 2020). We also have an Environmental Risk Reduction Plan, where different
scenarios of possible accidents are elaborated and all possible precautionary measures are taken to
ensure safety and prevent incidents, as well as a Protection and Rescue Plan. In the area of safety
management, the Company has its own fire brigade and cooperates with the Celje Fire Brigade,
volunteer fire brigades, rescue services, police, inspection authorities and the media.
In 2023, we had no accidents with hazardous substances.
Water resources
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 pumped from the nearby
Hudinja watercourse and groundwater from three springs at the Za Travnikom waste disposal plant.
The amount of water pumped from the Hudinja river is regularly monitored by us using appropriate
meters in accordance with ISO 9001, and the amount of drinking water pumped is read using meters
calibrated in accordance with the MID standard (Regulation 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 water for technological purposes.
Drinking water from the public water supply network is used for sanitary purposes and partly for
technological processes.
Table: Water abstraction by source in 2019-2023
Groundwater
abstraction (from the
Za Travnikom springs)
(m
3
)
Surface water
abstraction (from the
Hudinja watercourse)
(m
3
)
Drinking water
abstraction (m
3
)*
Total water
abstraction (m
3
)
2019
44,339
2,668,720
43,442
2,756,501
2020
38,795
2,899,335
40,292
2,978,422
2021
43,573
3,023,581
39,206
3,106,360
2022
38,110
2,737,182
68,036
2,843,328
2023
36,683
2,018,636
45,758
2,101,077
Total water abstraction has decreased over the last two years, due to the impact of lower production
and measures to increase water recycling within processes.
We manage projects and investments to increase recycling rates of process water. In 2022, the share
of drinking water used for process water increased and the use of process water from the Hudinja
watercourse decreased proportionally due to hydrological conditions that did not allow for water
abstraction from the watercourse at certain times (prolonged dry period), and we were forced to use
an alternative. In 2023, the weather and hydrological conditions were more favourable, so there was
no additional use of drinking water for technological purposes. A project is underway for an

Graphics
Business report
93
alternative water supply to replace the use of fresh water from the watercourse or the use of drinking
water for technological purposes.
Note: In the 2022 report, there was an error in the data for drinking water abstraction, i.e. the data
capture did not take into account the water consumption of the Kemija Mozirje BU.
We provide the corrected information for the reported period 2018-2022 in the 2022 Annual Report,
the reported information 2023 (correction) and the difference.
Correction of information
Drinking water abstraction (m
3
)
(reported 2022)
Drinking water abstraction (m
3
)
(reported 2023)
Difference
2019
39,908
43,442
–3,534
2020
35,253
40,292
–5,039
2021
35,957
39,206
–3,249
2022
64,964
68,036
–3,072
Care for water resources
Most of our process water is drawn from the Hudinja watercourse, 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 area of the catchment area is 207 km
2
and the long-term average flow of the Hudinja at
the water gauging station Šmarjeta 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 recharge 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
(or 0.0007 m
3
/s and 0.004 m
3
/s).
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 classified as a source of drinking
water and is not specifically identified as a nature conservation value in the area of water abstraction
on the side of 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 also
inhabited by the brown trout.
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 watercourse,
− introduce internal water recycling, thereby reducing specific consumption per tonne of
product,
− verify the feasibility of reusing waste water from the Celje Central Wastewater Treatment
Plant as a source of process water,
− reduce sulphate emissions to waste water and consequently to the Dobje, Vzhodna Ložnica
and Hudinja watercourses.

Graphics
Business report
94
Water discharges
The Celje site generates wastewater and cooling water as part of the production processes. The
wastewater is treated at the Company's own wastewater treatment plants and, after treatment, is
suitable for discharge into a watercourse. Where possible, procedures are implemented to recover
and re-use water in the processes. Municipal wastewater is treated at the Central Wastewater
Treatment Plant Celje (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.
Table: Water discharge by source in 2019-2023
Discharge to surface water (m
3
)
Discharge to public sewer (m
3
)
2019
2,623,566
12,375
2020
2,923,836
12,120
2021
2,759,948
12,300
2022
2,575,483
10,980
2023
2,525,322
12,000
In accordance with the environmental permit, we monitor a total of fifteen wastewater outlets, ten
at the Celje site and five at the Mozirje site. At the Celje site, wastewater is discharged into three
water bodies: the Dobje, the Vzhodna Ložnica and the Hudinja, and at the Mozirje site into the Ljubija
and Savinja watercourses.
The amount of water discharged to surface waters depends partly on the amount of water consumed
(production and efficient use) and partly on the amount of rainwater, as a result of the catchment
area of waste disposal facilities, from where excess water is discharged into watercourses. A
decreasing trend is observed from 2020 onwards. The discharge of urban water depends on several
factors, namely the rational use of water for sanitary purposes and partly for technological purposes,
and losses in the internal water supply system.
No exceedances of concentrations of substances in waste water were detected from monitoring in
2023. Concentrations of Cu (copper), COD (chemical oxygen demand) and to a small extent AOX
(organically bound halogens), Ni (nickel) and total P (phosphorus) contribute to the effluent loading
units (EO
N
). The other measured parameters are below the limit of quantification or so low that they
do not contribute to the loading 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.
Table: Emission quantities to waste water in 2019-2023
Parameter (tonnes)
2019
2020
2021
2022
2023
Chemical oxygen demand (COD)
132.4
188.4
114.3
137.9
67.0
Heavy metals (Cu)
0.06
0.04
0.04
0.03
0.04
Heavy metals (Zn)
0.13
0.12
0.09
0.15
0.15
Table: Sulphate emissions from titanium dioxide production and loading unit in 2019-2023
Emission type
2019
2020
2021
2022
2023
EO
N
2,542.7
3,641.3
2,150.2
2,829.8
1,717.8
SO
4
2-
(kg/t TiO
2
)
164.8
162.1
155.7
165.4
187.9
EO
N
= loading unit
SO
4
2-
= sulphate concentration per TiO
2
product unit

Graphics
Business report
95
*The reported data in the Annual Report for the financial year 2022 differ from 2019 to 2022 for the
added quantities of PE Kemija Mozirje, which the then data tables for PE Kemija Mozirje did not
contain. The table below shows the reported data in 2022 by individual years.
Table: Reported Emission Amount of Sulfate Released from Titanium Dioxide Production in Years and
Load Unit 2019-2022
Emission type
2019
2020
2021
2022
EO
N*
2.541,1
3.640,3
2.149,9
2.828,7
SO
4
2-
(kg/t TiO
2
)
164,8
162,1
155,7
165,4
The emission of sulphate from titanium dioxide production was 12% higher in 2023 than in 2022,
but still far below the limit value (the limit value is 550 kg/t TiO
2
according to the OVD or the TiO2
Decree). The reduction in loading units (34%) is due to the significantly lower 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 plants.
Impact of wastewater on the natural environment
Cinkarna Celje d.d. carries out operational monitoring upstream and downstream of the discharge
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.
Water consumption
The Company does not measure water consumption because it is not a significant quantity (estimated
at 1-5% of total water abstraction). The water consumed includes water incorporated in the product
(the largest proportion is contained in RCGIPS and CEGIPS), evaporated water and water for drinking.
Biodiversity and ecosystems
Cinkarna Celje d.d., at the Celje site, which is also the Company's headquarters, is located on the
south-eastern edge of the Celje basin, along the Celje-Šentjur regional road in the north-eastern
part of Slovenia. It is an industrial area with no protected or conservation areas.
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 non-hazardous waste landfill.
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 village of Ljubija in the Municipality of Mozirje.
The stream of the same name (Ljubija) flows into the Savinja river in the vicinity. It is an area where
there are no protected areas.
Aware of the importance of preserving protected areas, we take all necessary measures to prevent
pollution and monitor our impact through regular monitoring. 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 November 2022, we also produced a Soil Contamination Assessment
and a report on the review of technical measures to prevent soil and groundwater contamination for

Graphics
Business report
96
the Celje site. We are in the process of obtaining an amendment to the environmental permit, which
will complete the groundwater and soil monitoring.
We also take care of suppressing ragweed and implementing measures to prevent the spread of
invasive alien species in our areas, thereby eliminating the negative impact on biodiversity.
Impact on biodiversity
The Company's business unit at the Celje site covers a total area of 45.7 ha, of which 46% is paved,
including the buildings used for its operations, and the remainder is grassland.
The Mozirje site occupies approximately 2,8 ha of the total land area. Approximately 60% of the area
is paved, the remainder is grassland.
There are watercourses in the vicinity of both sites, namely the Hudinja and the Vzhodna Ložnica
watercourses at the Celje site, which are channelized and regulated and regularly maintained
(removal of invasive plants) at the site of our activity. The area of the watercourses in Mozirje is
mainly grassland.
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, arising from periodic environmental impact assessments:
− When designing technological changes or construction, we take into account and ensure that
the impact on the ecosystem is minimal;
− We do not use chlorinated organic substances, which have a significant impact on climate
change;
− Our activities do not affect the settlement or displacement of animal species;
− We do not pollute the soil, air and water excessively, as we have built-in treatment plants.
As a result, we have not caused any changes that would affect biodiversity and ecosystems. Due to
our responsible and controlled management of the environment, our activities do not cause any
disturbance to the environmental balance and the impact is not identified as significant, as we
monitor surface waters, sediments and fish..
Resource use and circular economy
Ensuring the availability of quality raw materials and supplies is strategic for the production of
products and the smooth operation of the market.
The use of raw materials and materials to make our products has an impact on the environment
through the use of natural resources. We recognise the importance of using them efficiently and
carefully manage our processes to minimise waste. We strive to maximise the efficiency of the raw
materials and materials we use, thus demonstrating a rational attitude towards natural resources
and generating fewer by-products or waste, in line with our Quality Assurance, Environmental, Health
& Safety and Sustainable Development Policy, which we refer to in the section Environmental
management.
When selecting raw materials and materials that are hazardous chemicals, we ensure compliance
with the REACH and GHS regulations for the classification and labelling of hazardous chemicals. All
materials and products classified as hazardous chemicals are registered with the Chemicals Office,
where we send annual records of 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 SVHC (Substance of very high concern) list, i.e. the list of substances of very high
concern subject to authorisation, published on the ECHA (European Chemical Agency) website. When
selecting new or replacement raw materials and materials, we consider not only the suitability
(functionality) factor, but also their environmental, safety and health impact, which is checked during
the development phase.

Graphics
Business report
97
We look for innovative and sustainable solutions to re-use materials and thus reduce waste. Two
examples are CEGIPS and RCGIPS, and we are also developing new products.
We are expanding the range and quantity of copper-based plant protection products. In this
production, we use waste materials (waste copper and waste mordant) instead of clean materials
and process them into products that are also suitable for organic farming.
In terms of invoice value, we analysed the 50 most used raw materials and consumables in all
business units in 2023, which together account for 86% of the purchase invoice value. Our main raw
materials in the production process are titanium-bearing ore (ilmenite) and limestone flour, as well
as materials such as slag, sulphur, lime, copper, zinc, polymer materials, binders, pigments (titanium
dioxide, which we produce ourselves, accounts for the majority of pigment), fillers and additives.
Binders are mainly various resins (mainly polyester and epoxy) and polymer carriers (polyethylene,
polystyrene, polypropylene, ABS, EVA, EMA, etc.). These are non-renewable materials. In addition
to those used for production, we also use as non-renewable materials the various materials needed
for packaging products.
Within the group analysed, wood pallets and paper bags can be identified as renewable materials,
representing one percent of the value analysed.
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 ore and slag, which are limited and supplied
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 storage capacity. We use only rail transport to
transport ore from the port of Koper to our site in Celje.
Sulphuric acid
Sulphur is also an important material, which can be used in liquid or granulated form and is the basis
for the production of sulphuric acid. By ensuring sufficient quantities of liquid sulphur, we can reduce
the need for granulated sulphur, which is otherwise supplied in large quantities by ship from
Mediterranean countries.
The production of titanium dioxide in the process of decomposing titanium-bearing ore (ilmenite)
and slag requires sulphuric acid, which is prepared by clean sulphur combustion technology. Most of
the sulphuric acid produced is consumed in the production of TiO
2
. Surplus quantities are sold on the
market, mainly to the chemical and pharmaceutical industries.
Other materials
In the production of powder varnishes and masterbatches, we do not follow trends in consumption
by material group, as the proportions of each material can vary considerably from year to year,
depending on the range of finished products (this is particularly influenced by the production of
masterbatches). To evaluate the efficient use of materials, we look at yield, which is the ratio of
product output to material consumption. The same is true for all other production. In sourcing, we
also take into account the proximity of the supplier, so the transport route is one of the factors for
choosing a supplier. The technologists of each area, together with the procurement department,
regularly examine alternatives that could have a positive impact on the environment.
Packaging materials
We use paper and cardboard, plastic, wood, metal and composite packaging.
Paper and cardboard packaging is made from recycled material, including octabins, cardboard boxes,
cardboard and paper labels. For tertiary packaging purposes, we use wooden pallets for transport.

Graphics
Business report
98
Plastic packaging includes polythene bags, film and labels, polypropylene bags (big bags), strapping,
ties, plastic bottles, plastic buckets, etc. Certain plastic packaging is made from recycled plastic.
We keep records of all the packaging we place on the market, separated by material and quantity.
We are part of a packaging scheme, which regulates the handling of packaging that is placed on the
market with the product.
Table and chart: Packaging material consumption by packaging type in 2019-2023, in tonnes
Year
Type of packaging in tonnes
Total
Paper
Plastic
Wooden
Metal
Composite
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
1,616.70
6.49
21.54
2,189.54
2023
143.40
334.51
1,474.62
2.50
7.95
1,962.98
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 re-use
measures are also being implemented, in particular of wooden pallets and big bags, which is reflected
in the consumption of wooden and plastic packaging.
Recycled input materials used
Recycled input materials are not purchased in large quantities, mainly waste copper, waste mordant,
iron and zinc. We are authorised to process nine types of waste, according to the following processes:
− R4 – Recycling/recovery of metals and their compounds,
− R5 – Recycling/recovery of other inorganic materials,
− D13 - Combining or mixing before carrying out 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 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 these materials come to us in bulk or without
packaging.
The amount of recycled input materials used depends on the volume of production, the availability
and the price of other materials that may affect the use of recycled materials.
Table: Recycled input materials used in 2019-2023, in tonnes

Graphics
Business report
99
Material consumption (tonnes)
2019
2020
2021
2022
2023
For recovery under R4
386.08
269.11
294.89
214.25
184.70
For recovery under R5
1,311.46
1,204.16
953.44
1,476.24
590.98
Total
1,697.54
1,473.27
1,248.33
1,690.49
775.68
R4 – Recycling/recovery of metals and their compounds
R5 – Recycling/recovery of other inorganic materials
At BU Kemija Mozirje, we occasionally add finished products to our inputs that we cannot place on
the market for various reasons, 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 which are incorporated in small proportions into normal products
after prior testing.
Re-used materials
In addition to the rational use of raw materials, the implementation of technical and organisational
measures to prevent or reduce waste, we also aim to reduce waste through internal or external waste
recycling (for example reusing pallets) and the re-use of waste and materials.
We re-use certain materials in our production process, reusing a certain proportion of wooden pallets
(98% of which are returned in internal logistics) and packaging, and we also return to the production
process technological waste that would otherwise have ended up in the waste stream. We are
implementing solutions for the return of textile containers in internal logistics (up to 5 times). We
are also trying to re-use as much as possible of the waste generated by construction work, or to
recover it and use it on construction sites.
Table: Re-used wooden pallets in relation to total wooden pallets purchased in 2020-2023
Wooden pallets
2020
2021
2022
2023
Purchase of pallets (pcs)
60,692
60,138
58,64
45,272
Re-used pallets (pcs)
100
906
17,284
16,229
Share of used pallets (%)
0.16
1.51
29.48
35.85
Note: Most re-used pallets are used in titanium dioxide production. Re-used pallets do not include
pallets returned from customers.
The production of powder varnishes generates filter dust 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. In the powder coating programme, 46,059 kg of filter dust was
incorporated into our existing products in 2023.
In the production of masterbatches, process rejects are generated during line starts and stops. The
rejects are in 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 rejects in powder form, which is a mixture of pigment and filler. It is
incorporated in the production of white "CC master off-grade", together with the process rejects of
white masterbatches. We do not have data on the amount of reject used on an annual basis on the
masterbatch programme.
We also optimise the use of packaging materials by re-using them in our processes. Paper and
cardboard packaging (boxes) 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 to package new product or
to collect process rejects from masterbatches.

Graphics
Business report
100
Polypropylene bags, which include all big bags, are re-used for packaging or for the collection of
process rejects, either in powder varnish mills or in the production of masterbatches.
At laboratory level, we are testing possible recovery processes for waste 23% sulphuric (IV) acid.
Also at laboratory level, a process for the recovery of copper-tin sludge was developed and research
will continue at semi-industrial and industrial level.
At BU Metallurgija, we carefully planned and managed the re-use 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 itself. 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 these rejects were melted down in a
controlled manner and used in the manufacturing process. The melting of the zinc produced zinc
oxides on the surface, which were carefully removed before the casting process, as they would
otherwise have constituted 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 re-use of these skimmings was carried out in a special rotary furnace, where the majority of the
bound zinc was removed by means of higher temperature, rotating contact and in the absence of
oxygen. The process yield was approximately 90% and the resulting melt was used as secondary
zinc in the production of alloys.
Similarly, packaging materials were used to find and implement circular solutions in cooperation with
individual customers. In BU Metallurgija, we provided a re-melting service for blanks. This is a high-
volume reject, so we worked with the customer to purchase special bins that circulate continuously.
This avoided significant costs and facilitated handling. Once the re-melting was completed, the
product was transported on specially designed pallets of the appropriate dimensions, which were also
circulated, replacing only the pallets that were completely destroyed. The pallets that could be
repaired were rehabilitated accordingly. Circulation of packaging was also carried out in the
production of continuous zinc wire, in cooperation with one of the customers, which had a regular
offtake of at least six tonnes or more per month.
BU Polimeri is also committed to the re-use of materials. We carefully separate the waste materials
from metal machining and polytetrafluoroethylene (PTFE) materials. We sell this separately collected
waste for recycling. An important part of the re-used materials is our good practice of refurbishing
valves and piping components, which we extended from our internal service to our service for
external customers. It is a kind of service for damaged elements. First we assess the condition of
the element by inspection, then we re-use 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 TiO2 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, the embankments can be formed at stable slopes of 1:2 to 1:1.5 and its
surfaces can be trafficked by lorries 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: for backfilling in low-rise construction, in particular
for controlled backfilling of old wet landfills (Za Travnikom waste disposal facility), for anti-flood and
anti-noise embankments, landfill capping layers and for structural embankments of up to 5 metres

Graphics
Business report
101
in height which are not subjected 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 facility. In 2023, 128,898.4 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 products (gypsum plasters, self-levelling floor-esters). In cement works, it is used as an
additive to cement to prevent mortars from setting too quickly or falsely at a rate of 3-5%. CEGIPS
has been successfully marketed since 2006. 125,898.9 tonnes of CEGIPS were produced in 2023.
Copper recovery from waste fishing nets
Fishing nets that are discarded or lost at sea pose a major threat to marine life and can cause
irreparable damage. Recycling these nets and reusing them in industry is therefore crucial for a
sustainable future.
Cinkarna Celje d.d. is working with AquafilSlo, a leading company in the field of Nylon recovery.
AquafilSlo specialises in the recycling of fishing nets and their conversion into high-quality products.
One of the key challenges in recycling fishing nets is the presence of copper in the form of an
algaecide coating, which accounts for approximately 10% of the net's weight.
When the nets arrive at the AquafilSlo plant, they are first thoroughly washed to remove impurities
and the algaecide deposit. During this process, a sludge containing copper oxide is generated.
AquafilSlo then incinerates the sludge, releasing the copper oxide.
Our Company continues the process by dissolving the copper oxide with hydrochloric acid. This
process produces copper chloride, which is a key ingredient in our production of copper oxychloride,
a chemical widely used in agriculture as a fungicide.
Sketch: Process for extracting copper from waste fishing nets

Graphics
Business report
102
Waste management
Waste management follows a five-step waste management scale, where the first priority is to manage
materials efficiently, minimising the amount that can be discarded, returned to the production
process or re-used, 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.
In line with the objectives of the circular economy (to reduce the amount of waste generated and
increase re-use), we are implementing measures or pursuing improvement objectives in waste
management to reduce waste. We operate in line with the source separation system. We have a
recovery licence for certain wastes, which allows us to re-use 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 amount of landfilled waste is therefore being reduced by increasing the capacity to recover
the white gypsum by-product (CEGIPS). In 2023, the planned specific amount of white gypsum
recovered was increased to an average of 2.95 tonnes of white gypsum per tonne of calcinate. The
preparation of the project documentation and obtaining of the building permit for the construction of
the 7th centrifuge is also underway, which will further contribute to the increase in the amount of
white gypsum recovered. Processes were also put in place to increase yields in TiO
2
production. An
activity was implemented to reduce the amount of waste plastic from coloured masterbatches by
returning and reusing, reducing and reusing waste from PFA processing. The planning and
optimisation of snack meals is reducing the amount of food waste. A contract was concluded with a
contractor for CO
2
capture and compression from Neutralisation and project preparation is underway.
Waste generation is not entirely avoidable, despite the implementation of many measures. The
Company separates the non-hazardous and hazardous waste generated and prepares most of it for
recovery (following one of the R3-R13 processes) or disposal (following one of the D1-D13
processes). All hazardous waste is handed over to authorised waste collectors. We also hand over to
authorised collectors the remainder of separately collected non-hazardous waste that we do not
recover or dispose of ourselves.
Table: Production waste generated in 2019-2023, in tonnes*
Type of waste generated (tonnes)
2019
2020
2021
2022
2023
Non-hazardous waste – R
1,016.46
2,856.01
4,070.64
889.79
2,018.33
Non-hazardous waste – D**
181,269.68
171,056.37
176,135.50
176,603.86
129,303.68
Hazardous waste – R
10.66
5.94
9.40
9.04
7.24
Hazardous waste – D
145.29
126.13
54.81
66.61
28.05
Total
182,442.09
174,044.45
180,270.35
177,569.30
131,357.30
R – separately collected waste that is sent for recovery rather than landfill.
D – separately collected waste that is sent for disposal.
** The waste tonnage also includes red gypsum, which is dry-filled at the Za Travnikom waste
disposal facility.
As a result of the above measures and objectives, there is a clear trend towards less non-hazardous
waste going to disposal. In 2023, the amount decreased by almost 27%, mainly due to a reduction
in the amount of red gypsum produced (partly as a result of the objectives, partly due to lower
production of titanium dioxide). The amount of non-hazardous waste going to recovery fluctuates
mainly as a result of investment and renovation waste (mainly construction waste). There is also a
downward trend in hazardous waste (going to disposal), as a result of the abandonment of some
production processes that generated higher amounts of it and, in 2019 and 2020, the comprehensive
cleaning of oil traps due to the required leak checks.

Graphics
Business report
103
* Note: In the 2022 report, there was an error in the reporting of the amount of waste generated,
namely in capturing the data at the level of the whole Company and an error in the calculation.
We provide the corrected information for the reported period in the 2022 Annual Report (reported
2022), the corrected reported information (corrected 2023) and the difference.
Correction of information
Type of waste generated (tonnes)
2018
2019
2020
2021
2022
Non-hazardous waste – R (reported 2022)
367.07
342.02
396.33
364.27
378.29
Non-hazardous waste – R (corrected 2023)
5,461.13
1,016.46
2,856.01
4,070.64
889.79
Difference
-5,094.06
-674.44
-2,459.68
-3,706.37
-511.50
Non-hazardous waste – D* (reported 2022)
153,026.50
182,125.00
171,106.98
176,108.50
176,589.00
Non-hazardous waste – D* (corrected 2023)
153,039.98
181,269.68
171,056.37
176,135.50
176,603.86
Difference
-13.48
855.32
50.61
-27.00
-14.86
Hazardous waste – R (reported 2022)
19.88
11.34
6.27
9.40
7.38
Hazardous waste – R (corrected 2023)
20.42
10.66
5.94
9.40
9.04
Difference
-0.54
0.68
0.33
0.00
-1.66
Hazardous waste – D (reported 2022)
25.56
123.38
86.45
19.41
36.75
Hazardous waste – D (corrected 2023)
130.83
145.29
126.13
54.81
66.61
Difference
-105.27
-21.91
-39.68
-35.40
-29.86
Total (reported 2022)
153,439.01
182,601.74
171,596.03
176,501.58
177,011.42
Total (corrected 2023)
158,652.36
182,442.09
174,044.45
180,270.35
177,569.30
Difference
-5,213.35
159.65
-2,448.42
-3,768.77
-557.88
Social aspect
Employees are the cornerstone of our success, so we invest in their professional and personal
development and ensure the right conditions for safe working. We choose our suppliers carefully and
check them against certain environmental and social criteria. We also focus our sustainability efforts
on our relationship with our customers and develop high-quality products. We are aware of our role
in the local community and invest in the development of the local environment and create dialogue.
Key policies, standards and other documents in the field of corporate social management include:
− Collective agreement (1998)
− ISO 45001 - Occupational Health and Safety Management System (2020)
− Risk assessment for all workplaces (2001)
− Occupational Health and Safety Risk Register (2006)
− Code of Conduct for Sustainable Business Partners (2023)
Own workforce
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. These are also the
objectives and principles of our Quality Assurance, Environmental, Health & Safety and Sustainable
Development Policy.
Recruitment and staffing is based on the principle of non-discrimination and equal opportunities,
ensuring the conditions for the personal and professional development of all employees. We create
conditions for well-being at work and pay particular attention to the personal and professional
development of our employees. We comply with 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 our Recruitment and Training Policy, which improves and enhances the
qualification structure of our staff and facilitates internal transition between jobs.

Graphics
Business report
104
In 2023, the Company's 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 focused on rejuvenating the workforce in each of our 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, it is foreseen to continue optimising the staffing structure by rehiring and recruiting
new young and technically qualified staff. Investments in development, training and further
improvement of the working environment of the staff will also continue.
Table: Employees by gender in 2019-2023
Employees by
gender
2019
2020
2021
2022
2023
Number
%
Number
%
Number
%
Number
%
Number
%
Men
655
77.4
640
77.7
629
79.3
617
79.6
589
79.4
Women
191
23.6
184
22.3
164
20.7
158
20.4
153
20.6
Total
846
100
824
100
793
100
775
100
742
100
As at 31 December 2023, Cinkarna Celje d.d. had 742 employees, 79.4% male and 20.6% 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 4.3% or
33 employees, taking into account the business policy of the Company's Management Board, the
diversified performance of the individual business units and the planned recruitment. In 2023, 82
employees left the Company, of which 49 were retirements.
Table: Employees by age in 2019-2023
Percentage of
employees by
age (%)
2019
2020
2021
2022
2023
M
W
T
M
W
T
M
W
T
M
W
T
M
W
T
Under 30 years
10.3
1.5
11.8
9.2
0.1
9.3
10.8
1.0
11.9
12.3
1.4
13.7
12.5
1.3
13.9
30–50 years
35.2
5.6
40.8
37.0
6.6
43.6
35.4
6.2
41.6
35.9
6.3
42.2
36.5
6.9
43.4
Over 50 years
31.9
15.5
47.4
31.4
15.7
47.1
33.0
13.5
46.5
31.5
12.6
44.1
30.3
12.4
42.7
Total
77.4
22.6
100
77.6
22.4
100
79.3
20.7
100
79.7
20.3
100
79.4
20.6
100
M = men, W = women, T = total
The largest age group in 2023, with 43.4%, is the 30-50 year olds, which represents a significant
shift in the Company's approach to rejuvenating the workforce, taking into account demographic
trends. This is followed by employees aged 50+, who accounted for 42.7% of the workforce. The
smallest group of employees is made up of those under 30 years of age. 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 supportive working environment. We provide students with regular 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

Graphics
Business report
105
recruits to transfer skills, while at the same time trying to raise interest in chemistry among young
people by engaging with the wider community.
Table: Employees by level of education in 2019-2023
Education
level
2019
2020
2021
2022
2023
%
%
Number
%
%
%
VIII
2.4
2.2
19
2.4
2.4
2.8
VII
15.8
16.6
139
17.5
18.3
18.9
VI
6.3
6.5
56
7.1
7.5
7.4
V
33.1
33.6
269
33.9
34
34.4
IV, III
32.5
32.2
250
31.5
30.5
30.3
II, I
9.9
8.9
60
7.6
7.4
6.2
Total
100.0
100.0
793
100.0
100.0
100.0
Table: Number of compulsory student placements and staff fellowships in 2019-2023
2019
2020
2021
2022
2023
Compulsory practice
71
52
76
50
48
Staff scholarships
26
27
19
12
10
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 or
growth of the Company.
In the future, we will continue our policy of productive redeployment within the Company, optimising
our organisational structure and reducing the proportion of unskilled labour through selective
recruitment. We will also seek to optimise the share of administrative labour through consolidation
and redeployment. We will improve the skills structure of our workforce by recruiting at higher
qualification levels and by supporting and promoting training among our employees. In particular,
we aim to reduce the percentage of employees with qualifications levels I and II and increase the
number of employees with qualifications 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. The
Company's management encourages the search for new solutions and accepts suggestions for
improvement. Innovation is rewarded accordingly.
Table: New employees by gender in 2019-2023
New employees
2019
2020
2021
2022
2023
Men
7
7
23
28
36
Women
13
23
2
4
7
Total
20
30
25
32
43
Table: Staff turnover by gender in 2019-2023
Turnover
2019
2020
2021
2022
2023
Men
17
13
30
38
71
Women
66
46
21
10
11
Total
83
59
51
48
82
Turnover rate (%)
9.0
6.3
6.3
6.2
10.8

Graphics
Business report
106
In 2023, we recruited 43 new staff in various professional fields such as chemistry, electrical
engineering, mechanical engineering and economics, generally with IV, V and VII level qualifications.
The turnover rate was 10.8%. 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
organisational structure of the Company, while 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 persons with disability status. In 2023, they accounted for 6.5% of
all employees. This is a relatively high proportion, exceeding the legal quota for companies by less
than a percentage point. These are employees with varying degrees of disability, and their work or
workplace is adapted to enable them to perform according to their level of disability, in line with their
abilities.
Table: Percentage of employees with disability status in 2019-2023
Employees with disabilities
2019
2020
2021
2022
2023
Number
63
58
55
56
48
Percentage (%)
7.4
7.0
6.9
7.2
6.5
Over the years, we have seen an upward trend in the number of workers restricted from work due
to a medical condition. Through an active policy of cooperation with the Occupational Medicine,
Transport and Sport and the Disability Commission of the Social Insurance Institution for the
Disabled, the proportion of disabled people in the total number of employees has been decreasing
for the fifth consecutive year, with the exception of 2022. The positive trend continues. Taking into
account the age structure of the workforce and the changes in legislation, which is more restrictive
towards the retirement of people with disabilities, we do not expect a 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 2019-2023
Employees by
employment status
2019
2020
2021
2022
2023
M
W
T
M
W
T
M
W
T
M
W
T
M
W
T
Permanent
616
181
797
615
180
795
593
158
751
583
155
738
553
151
704
Fixed term
39
10
49
23
4
29
36
6
42
33
4
37
36
2
38
Full-time
652
187
839
636
176
812
625
157
782
612
151
763
585
146
731
Part-time
3
4
7
4
8
12
4
7
11
4
8
12
4
7
11
Agency work
29
9
38
21
7
28
9
22
31
17
11
28
10
14
24
Student work
6
5
11
9
4
13
8
0
8
3
2
5
3
2
5
M = men, W = women, T = total
The majority of employees (94.9%) in 2023 were permanent and full-time (98.5%). A smaller
percentage of employees (1.5%) worked part-time. Employees receive the same benefits irrespective
of whether they are permanent or fixed-term, full-time or part-time. Agency workers are also
employed, with the possibility of regular employment with the Company. In 2023, agency workers
accounted for 3.1% of the total workforce. These are mainly production, warehouse and cleaning
jobs. This way we provide more flexibility and screen potential employees.
We also offer work opportunities to school and university students through temporary student work
and compulsory internships as part of their education programmes. This way, they can gain

Graphics
Business report
107
experience and work habits, as well as new skills, which can lead to a regular job with the Company
later on, when they have finished their education.
Table: Maternity leave take-up in 2019-2023
Maternity leave
2019
2020
2021
2022
2023
Number of employees
14
12
6
10
6
Number of working days
1,420
1,656
681
1,088
832
In 2023, 0.8% of employees took maternity leave.
Collective agreements
Employment and working conditions are defined in collective agreements, which cover all employees,
including agency workers and student workers. The Collective Agreement and the Labour Relations
Act also lay down notice periods.
Active dialogues and collective bargaining agreements are held with the Company's workers'
representatives to establish additional workers' rights or to amend and supplement the 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.
Remuneration and freedom of association
Employee remuneration is defined in accordance with the Company's collective agreements. For the
management and supervisory bodies, we adopted a remuneration policy in 2023, which was not
approved by the General Meeting. Based on the amendments, we are preparing a revised policy,
taking into account the recommendations of the Slovenian State Holding, which will be submitted to
the General Meeting for approval in 2024.
The minimum salary for employees in 2023 is EUR 1,203.36 gross. The average gross salary in the
Company was EUR 2,690.81, which is 18.13% higher than the average gross salary (EUR 2,209.33)
in Slovenia in 2023 in the period January-November (source: SURS). All employees are treated
equally in the determination of salaries. The value of the standard starting salary is determined
according to the job evaluation of each post. Over the years, 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 our negotiations 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 in the Republic of Slovenia and average wage in Cinkarna Celje d.d. in
2019-2023, in EUR
2019
2020
2021
2022
2023
Gross minimum wage (EUR)
886.63
975.30
1,024.24
1,074.43
1,203.36
Gross average wage (EUR)
2,296.92
2,316.42
2,421.46
2,603.06
2,690.81
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
on a monthly basis. The minimum premium to be paid into the umbrella pension plan under 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 service are entitled to a period of seniority.
They are subject to regular monthly contributions at the rate of 8.2%, which are reported to the
company Kapitalska družba pokojninskega in invalidskega zavarovanja d.d.

Graphics
Business report
108
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) and applicable domestic legislation, insofar as the latter prescribes
different or stricter rules.
In the event of perceived illegal or unethical practices that damage the Company's reputation or
business, violate the dignity and personal integrity of an individual employee, it is our duty to
immediately report and initiate the appropriate procedures or measures.
Employee training and competence development
We recognise the importance and value of skilled employees and provide them with regular training
and competence development. The majority 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.
Human rights training was not provided in the past, but each new employee is informed of the Code
of Ethical Conduct and Practice upon recruitment.
Lack of knowledge is often a barrier to a sustainable future, and we pay attention to it. We educate
employees on understanding sustainability and how to integrate sustainability into more holistic and
strategic management and reporting.
Table: Staff training in 2019-2023
2019
2020
2021
2022
2023
Total number of staff attending specific
functional training courses
4,235
3,519
3,098
3,513
4,350
Total number of hours of specific training
16,488
10,065
6,947
12,316
12,380
Average number of training hours per employee
18.86
11.97
8.67
15.85
16.37
Average financial value of training per employee
(in EUR)
446.10
273.80
206.20
435.77
412.36
In 2023, employees spent an average of 16.37 hours in training. The increase in training hours
compared to the previous year is due, among other things, to the focus on additional professional
training and soft management skills. This was also reflected in the content of the training sessions,
which again focused on upgrading individuals' specific areas of expertise and on mandatory regular
training. In 2023, 4,350 participants attended specific functional training courses both inside and
outside the Company. The total number of training hours was 12,380, approximately the same level
as the previous year.
Mentoring 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
internships. 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 tasks 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. introduced a system of rewarding useful suggestions and
innovations through an innovation office, called CC um, where our employees are given the
opportunity to express their innovative ideas and concepts. Through the electronic submission of

Graphics
Business report
109
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
um innovator badge. The best proposals are also publicised 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.
In 2023, 244 useful suggestions were put forward by employees. The useful suggestion collection
system triggered 0.33 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.
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 the systems, methods and practical implementation skills to successfully
perform the role of a leader. 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.
The overall development path comprises ten content modules totalling 80 hours, which complement
each other and together constitute a comprehensive development programme for the upgrading of
leadership skills and personal development of the individual. These modules are:
− Leadership and its importance,
− First, I must 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,
− Effective change management.
− Effective teamwork
The development programme is delivered through live and virtual training sessions, complemented
by individual or group work assignments between sessions and individual coaching for all
participants.
Moja Cinkarna app
In 2023, we further upgraded the Moja Cinkarna web and mobile app, which 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 app allows employees to view their annual leave balances
and usage, view their timesheets, view and order lunch in all three canteens, submit pay slips,
calculate leave for the current year, 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 faster, simpler and reduce paper
consumption. At the end of 2023, 86% of employees were using the app.
Cinkarnar internal magazine
Twice a year, we publish an internal magazine, 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 magazine highlights those employees who contribute to the

Graphics
Business report
110
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 the Company. We also educate employees about new developments in the industry and
provide useful information for working safely.
Open Door for the Works Director
Also in 2023, open office hours were established at 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 with problems that the Works Director is working to resolve and,
where appropriate, raise.
The response of the staff is positive, as they can directly access a member of the Management Board,
who passes on certain issues at Management Board meetings.
Staff engagement and satisfaction survey
Employee well-being or job satisfaction is very important for good and quality work. Only satisfied
employees perform optimally and conscientiously in their profession and are a direct reflection of a
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 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.
We carefully review the results of the survey and use the data to set targets and objectives to achieve
a steady increase in the number of engaged employees and to create a work environment with happy
employees.
Occupational health and safety
We continuously strive for improvement in the area of occupational safety and health and set targets
every year. Our overarching goal 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 Department, which reports to the Company's management,
carries out professional tasks in the area of occupational health and safety, so that the employees
who carry out professional tasks in the area of occupational health and safety 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.
The occupational health and safety management system covers all those who work for the Company
under an employment contract or any other legal basis (outsourced workers), including employees
who work for training purposes.
Three main objectives in the field of occupational safety and health:
− Zero injuries at work – the overarching objective

Graphics
Business report
111
This is a long-term objective to which all other objectives are subordinate. It is pursued step by step
through various prevention activities and improvements.
− Improvements in occupational health, safety and fire safety
We address the potential causes of occupational injuries by identifying and disaggregating process
risks that can have a negative impact on occupational health and safety.
− Organising and implementing employee health promotion
We regularly carry out employee health promotion according to a programme that is adapted
annually.
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 have access to
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.
Injuries at work
Occupational injuries are monitored using the so-called frequency index (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
occupational injuries to the number of sickness absences per number of employees.
Table: Injuries at work in 2019-2023
Event
2019
2020
2021
2022
2023
Number of work-related injuries
15
13
12
7
12
Number of days lost
346
334
329
451
371
Number of injuries/100 employees
1.7
1.5
1.4
0.9
1.6
Number of deaths due to work-related injuries
0
0
0
0
0
Number and rate of work-related injuries with
major consequences
0
0
0
0
0
PRP factor*
5.7
5.0
4.7
4.0
5.6
* PRP is a factor representing the ratio of the number of occupational injuries to the number of sick
days per number of employees.
Chart: Number of work-related injuries per 100 employees in 2019-2023
There were no serious occupational injuries in the 5-year period, and no fatalities or occupational
diseases. Work-related injuries are also monitored for agency workers. There were 11 work-related
injuries in the 5-year period (2019-2023).
As the graph shows, from 2019-2022, work-related injuries fell from 1.7 to 0.9 per 100 employees,
rising to 1.6 injuries per 100 employees in 2023. The increase in work-related injuries is observed in

Graphics
Business report
112
the maintenance processes. Despite the increase in work-related injuries, the number of days lost
decreased by 80 or 18%.
In terms of the cause of work-related injuries, trips, slips and falls are the leading causes, followed
by chemical burns and cuts.
Chart: comparison of occupational injuries per 1,000 employees between Cinkarna Celje, the C20
industry (manufacture of chemicals, chemical products) and Slovenia. Data are available on the
NIJZ website for the year 2021, so the comparison refers to the years 2018-2022.
We use an established system to record and report on incident statistics and to address identified
weaknesses. 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 worker must immediately seek first aid from
qualified persons and inform the worker's supervisor, who must report the accident to the
Occupational Health and Safety Department.
In addition to accidents at work, we also monitor near-misses and potential hazards, which are
regularly recorded and their causes are eliminated or prevented. In 2023, we identified 117 potential
hazards, which we are addressing on an ongoing basis, and ten near misses. In 2023, we identified
almost 38% more potential hazards than the year before, 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 having employees
in each plant briefly discuss the progress of the shift and any potential hazards identified before the
start of each shift. In addition, in the event of an injury at work, they discuss the causes that led to
the particular incident and other topical issues relating to safe and healthy work.
Identification and analysis of process risks in the area of occupational safety and health 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 2019-2023
Event
2019
2020
2021
2022
2023
Potential hazard
56
47
32
85
117
Near misses
3
3
6
7
10
Absenteeism
The average absenteeism rate for employees increased by 0.75 percentage points to 24.42% in 2023
compared to the previous year, due to more sickness absences, other illnesses and injuries outside

Graphics
Business report
113
work. The pattern of sickness absence varied according to the duration of sick leave. Causes of
absenteeism at Cinkarna Celje d.d. and the related sickness absence were linked to illnesses and
injuries resulting in short- or long-term sick leave and the nature of the work (multi-shift and
physically demanding work). The high average age of employees (47.24 years), the four- or multi-
shift nature of work (42.7% of employees work multiple shifts), the high number of people with
disabilities (6.5% of all employees) and the increasing number of long-term sick leaves, mainly due
to serious illnesses, impairments of the locomotor system and cardiovascular diseases, also have a
significant impact on absenteeism.
Table: Absenteeism in 2019-2023
Absence from work
2019
2020
2021
2022
2023
Illnesses (%)
6.70
6.43
7.27
7.45
8.34
Total absenteeism (%)
23.71
24.97
22.14
23.67
24.42
Risk assessment for workplaces
We have a system in place to assess workplace risks in terms of incidence and intensity, which is
ongoing. Based on the results, a Risk Assessment for all workplaces and an Occupational Health and
Safety Risk Register are produced or revised, showing the exposure of employees to physical,
chemical, mechanical, social and biological risks. Where risks are identified, appropriate measures
are determined and taken to reduce employees' exposure to hazardous working conditions, and
responsible persons and deadlines are set to eliminate or reduce individual risks.
The risk assessments carried out 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 in individual workplaces stand out.
Employee involvement
Workers and their representatives are given the opportunity to be involved in all issues relating to
ensuring safe and healthy work. They are involved in the assessment of risks for specific jobs and in
the production of risk assessments.
The Works Council has an Occupational Safety and Health Committee, which includes a safety
engineer as an external contributor to help solve occupational safety and health problems.
Workers can report work-related hazards and suggestions for improving working conditions to the
Works Council, through the reporting of potential hazards and near misses and through the CC um
app.
Health promotion at work
Good health is a prerequisite for a good and successful life and work - both for the individual and for
the work organisation. Our annual health promotion programme aims to maintain and improve the
physical and mental health and well-being of our employees, and to detect various medical conditions
at an early stage. It is about actively supporting the employer in improving 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.
We carried out the following activities:
1. Cardiovascular disease prevention - risk factors: body composition measurements, control
of fats and blood sugar, elevated blood fats (workshop in cooperation with the Health
Promotion Centre);

Graphics
Business report
114
2. Sports activities: cycling to work (GAMSI cycling section), organised sports activities
(badminton, table tennis, boxing, bowling, etc.), 20% discount on facilities at local spas,
teambuilding;
3. Cancer prevention activities - support for the SVIT programme (article in the internal
magazine);
4. Healthy breakfast - promotion of the traditional Slovenian breakfast;
5. First aid at the workplace: first aid procedures for chemical injuries (use of Difotherin), basic
CPR procedures;
6. Protection against infectious diseases - seasonal flu vaccination.
Occupational health services
Together with the contracted occupational health provider, we audit risk assessments and conduct
ergonomic workplace visits, as well as biological monitoring of employees. In addition, the
occupational health provider carries out preventive health checks on employees and issues a
certificate of fitness for work. Preventive health checks are carried out at the intervals specified in
the risk assessment for each workplace (24-60 months).
Value chains and workers in value chains
By properly managing the labour chain and respecting workers in the value chain, a company can
achieve greater efficiency, quality and competitiveness in the market and contribute to more
sustainable business.
The objectives of the quality assurance policy on environmental, health and safety management and
sustainable development, and the commitments set out in the Code of Sustainable Business for
Business Partners, are elements that contribute to sustainability in our Company's value chain. With
the adoption of the Code of Sustainable Business Conduct for Business Partners at the end of 2023,
we are setting clear guidelines and expectations for our business partners throughout the value
chain. They commit to the same standards of quality, sustainability and social responsibility that we
uphold.
Our products and raw materials are part of global supply chains. The supply chain includes suppliers
of raw materials (primary and secondary), packaging, equipment, spare parts, technical service
materials and energy. Suppliers and their activities vary by business unit. Suppliers are divided into
six key groups:
− suppliers of titanium-bearing ores,
− suppliers of other raw materials,
− suppliers of packaging materials,
− suppliers of equipment, spare parts and technical supplies,
− suppliers of services,
− energy suppliers.
Chart: Breakdown of procurement by key groups in 2023

Graphics
Business report
115
Evaluating suppliers
Key suppliers are evaluated annually against commercial, technical and supplier certifications (ISO
9001, 14001, 45001, 50001, etc.), and from 2022 onwards, we are gradually including sustainability
indicators such as:
− Distance from the supplier, which is important in terms of reducing transport emissions;
− Supplier's commitment to the Code of Conduct for Sustainable Business for Business Partners
of Cinkarna Celje;
− Receipt of the Ecovadis label;
− Supplier's carbon footprint or product life cycle analysis (LCA).
Based on the total score, suppliers are ranked A, B or C, with A being the highest score. We confirm
cooperation with suppliers in A and B ranks, with exceptions in C rank (if they are strategic, hard-
to-swap suppliers).
For 2023, we evaluated 69 major suppliers and 81 service providers.
Within the supplier portfolio, 57% of the assessed suppliers are ISO 14001 certified and 30% of the
assessed suppliers are ISO 45001 certified. The proportion is lower for service providers (15% and
7% of the assessed suppliers are ISO 14001 and ISO 45001 certified respectively).
Chart: Supplier percentages by distance in 2023
More than 72% of our estimated suppliers come from Slovenia or nearby countries (within 500 km).
A higher proportion of our suppliers are therefore located in our vicinity, significantly reducing our
environmental impact and avoiding logistical risks in our supply chains.
Chart: Percentages of suppliers having signed the Code of Sustainable Business for Business Partners
Almost 70% of all suppliers assessed have signed the Code of Sustainable Business for Business
Partners, which helps us to create and implement sustainable and socially responsible commitments

Graphics
Business report
116
together with our suppliers. We have an agreed and established channel of communication and
awareness-raising with our suppliers (upstream) through regular business visits, provision of
requested information, supplier assessments, etc.
When assessing suppliers, we also asked them:
− whether they have ISO 50001 (13% answered yes),
− whether they have the Ecovadis label (19% have one of the labels (platinum, gold, silver or
bronze)),
− whether they have a calculated LCA and/or carbon footprint (10% have a calculated LCA
and/or carbon footprint).
We also evaluated six new suppliers in the assessment process, three in the A-rank and three in the
B-rank. All of the new suppliers are ISO 9001 certified, four are ISO 14001 certified, three are ISO
45001 certified and none are ISO 50001 certified. These are suppliers located in nearby countries
(Italy, Croatia, Bosnia and Herzegovina, and Serbia). Two of these suppliers have already signed the
Sustainability Code and two have the Ecovadis label, one of them even platinum.
We assess that there are no significant actual or potential negative environmental and negative social
impacts in the supply chain, which comes from communication channels with suppliers. The highest
risk of child labour is with suppliers from third countries, such as China. Among the 50 leading
materials, we can highlight one material for which we have three suppliers from China - in 2023,
there was one supplier who, however, signed the Code of Sustainable Business Conduct for Business
Partners.
Local and other communities
At Cinkarna Celje, we recognise both the positive and negative impacts on the local and other
communities in which we operate. By understanding interdependence and interconnectedness, we
place a premium on creating a balance between the economy, the business performance of the
Company and cooperation, integration and consideration of the needs and demands of local and
other communities.
We adhere to high standards of social ethics and build a transparent culture of communication that
is the basis for successful integration and cooperation, which is also the commitment of our Quality
Assurance, Environmental, Health & Safety and Sustainable Development Policy and Code of Ethical
Conduct and Practice.
Below we present some of the key aspects of our cooperation and efforts to improve the social,
environmental and economic situation in our community. The channels of communication and
frequency are given in the section Stakeholder engagement.
Cooperation with the community
We regularly work with local authorities and other stakeholders to identify needs and opportunities
for improvement. We organise public events such as open doors days and meetings with journalists,
and work with schools and associations to encourage dialogue and participation.
We inform the Municipality of Celje and surrounding municipalities, local and national media and
other relevant stakeholders in the local environment about events and other relevant information
through invitations and press releases, depending on the topic and the purpose of the message.
We also use social media to reach and inform the local public. We record about ten negative
comments per year, but most of the comments are positive and encouraging.
Projects and initiatives and social investments

Graphics
Business report
117
We invest in the development and education of young people and promote healthy attitudes of
individuals and institutions towards the environment. We promote and support recreational sports,
cultural, humanitarian, environmental and educational activities.
In cooperation with the Celje Museum of Contemporary History, we organised a photographic
exhibition "The History of Cinkarna through the Lens of Mr Pelikan" at the Pelikan Photo House. The
Company organised the exhibition of numerous, previously unpublished photographs to
commemorate the 150th anniversary of the founding of Cinkarna Celje and the 50th anniversary of
the beginning of the production of titanium dioxide pigment.
To celebrate the 150th anniversary of the Company, an internal exhibition, called Minute for Culture,
was also organised by four employees at the Celje and Mozirje locations, displaying their visual arts,
sculptures, photography and literary works.
Each year, sponsorships support the activities of major basketball, football and handball clubs, as
well as donations to fire brigades, parish offices, music schools, gymnasiums and other organisations.
Sponsorships and donations are given to those organisations that help us to pursue and realise our
values, which include:
− 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 Celje Football Club, the Celje Basketball Club, the Šentjur Basketball Club,
the Celje Hockey Club, the Z'dežele Women's Handball Club, the Domžale Basketball Club,
and the Nivo Celje Kayak Canoe Club;
− Artistic creation, the work of cultural institutions and associations: SLG Celje, the Institute
for Cultural Events and other cultural and artistic associations;
− Aducational, pedagogical and charitable organisations and associations: Volunteer Fire
Brigade, schools, etc.
Table: Share of sponsorship and donations by area
Sponsorship and donations
Share
Sports
95 %
Culture
2 %
Other
3 %
Table: Funding for sponsorships and donations in 2019-2023
2019
2020
2021
2022
2023
Donations and
sponsorships (EUR)
739,164
688,053
637,131
755,725
706,035
Over the last five years, we have provided around €3.5 million in sponsorship and donations to sports
clubs, associations, educational institutions and local communities. We will continue this policy of
supporting the local environment in the future, provided that the Company grows and develops as
necessary.
Cooperation with schools
We respond to invitations from schools and local stakeholders and attend the increasingly popular
Career Fairs at schools, youth centres and the Community of Higher Professional Schools of Slovenia.
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. Fifteen
successive competitions have been held so far, and a 16th competition is under way.

Graphics
Business report
118
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. The theme of the 15th competition was the importance of water for the
existence of all living things. This was also to showcase one of our activities that follow our
commitment to sustainability. Among other things, we have been looking for ways to reduce the
extraction of fresh water from the watercourse for the production process by introducing the re-use
of internal and external flows. A record 46 schools and 1,700 schoolchildren took part in the
competition. 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 sensitively according to the
content, and we make sure that local stakeholders are involved and informed about the competitions
and young people's creative ideas.
We open the door to students for compulsory practical training and visits to production processes,
waste disposal plants, water measurement (chemical technician programme, construction technician
programme), and respond to the needs of local educational institutions, with whom we cooperate in
project days, research assignments, presentations on professions, etc.
From the second semester of 2023, a new competition entitled Every Drop of Water Counts is being
launched in cooperation with the local Technopark Celje.
Social responsibility
We work with social institutions to help vulnerable groups in our community, including through
donations and volunteering.
Traditionally, in the pre-Christmas period, at the initiative of our kitchen, we participate in a 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
Association of Cerebral Palsy Sonček a place to sell their handmade gifts.
In the past, we also held a blood donation campaign among our employees, which we are planning
to do again next year.
Last year, Cinkarna Celje joined the third round of the Charity Catharsis. With this donation we
wanted to help and raise as quickly as possible the EUR 2 million needed to treat the rare
neurodevelopmental disorder of 4-year-old Urban.
Feedback and reviews
We regularly gather feedback from local communities and other stakeholders and work to improve
our relationships based on this feedback.
We have a system in place to receive and resolve complaints. Complaints are received via the email
address of the Public Relations Officer or the Environmental Protection Department. All messages
received are dealt with accordingly. 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, legal, environmental protection or specific
business units.
In 2023, we received one comment to our PR email address, which related mainly to the resolution
of a specific issue concerning the living environment of the petitioner or complainant, a piece of land
owned by the Company.
We also received four complaints from the public in relation to the Celje production site. Three of
these concerned perceived odours. Based on our investigation of the complaint, we found that one
complaint was clearly related to a malfunction in the operation of the Company's sewage treatment
plant and was also reported to the inspection service and remedied as soon as possible. For the other

Graphics
Business report
119
two we found no link to malfunctions in the Company as we did not record any downtime or other
malfunctions in the treatment plant at the time. One complaint was due to a perceived smoke which
was not due to a malfunction in the Company, but to a small fire at a nearby location outside the
boundaries of the Company.
Table: Public complaints in the environment in 2019-2023
Year
Public complaints by area
Odour
Dust
Noise
Other
Total
2019
1
0
1
0
2
2020
0
1
1
0
2
2021
1
0
1
0
2
2022
0
0
1
2
3
2023
3
0
0
1
4
We also regularly monitor comments and messages on social media. We record about ten negative
comments a year, but not specific complaints. Most of the comments are not deleted, as
recommended by digital marketing experts, but are commented on and explained in a constructive
manner. In the past year, we removed three posts due to an internal agreement, as they could have
damaged the reputation of the individual, and deleted three user comments that crossed the line of
constructive "debate". There were no new reactions to this action.
At Cinkarna Celje d.d., we believe that communication and engagement with the community is key
to building strong, sustainable relationships and creating positive change in our local environment.
We will continue our efforts for sustainable development and the well-being of all our stakeholders.
Customers
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 business-to-business (B2B).
Research and development activities are key to achieving our strategic objectives, maintaining our
position and reputation in global markets and seeking new business opportunities, where we keep
pace with customer requirements and expectations by developing new products and solutions. In
doing so, we take into account the commitments and objectives of the Quality Assurance,
Environmental, Health & Safety and Sustainable Development Policies. Maintaining customer
satisfaction and implementing our sustainability strategy in the supply chain are also among our
priorities in sales. To maintain the long-term sustainability of our business, we pursue sustainability
objectives and address our customers through the development of high-quality, sustainable products.
We pay particular attention to the recovery of excellent quality by-products that customers can use
in their own production, thus contributing to the re-use of materials. In 2023, we also aimed to
maintain a satisfaction index (CSI) of 90%.
High value-added products
In the titanium dioxide business, our core programme, we are focusing on winning new customers
in the plastics and printing inks businesses. Higher customer sophistication allows us to achieve
higher profitability in the long term and indirectly acts as a hedge against potential new entrants into
the European market with lower-end products.
In other programmes, we also focus our development on new products with high added value and
on those vertically integrated products that allow for professional, revenue and cost synergies and
best exploit the competitive advantages of the business environments of the individual product
programmes.

Graphics
Business report
120
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 took a sustainable
and more environmentally friendly approach to their replacement. We 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 integration in the packaging industry, as more and more customers are switching to biodegradable
materials.
Powder varnish with enhanced outgassing capability
Powder varnish with enhanced outgassing capability was developed for the niche market of
customers who powder coat hot-dip galvanised surfaces. Its specific formula allows the evolution of
gases that form in the hot-dip galvanised layer at elevated temperatures before crosslinking of the
powder-coated layer occurs. This results in the absence of anomalies such as bubbles, tiny bumps
on the lacquered surface. It is estimated that this product could account for 25% of our sales of
conventional polyester grades of powder varnishes.
Matte smooth quality powder varnish with Qualicoat Class 1.5 requirements
The Qualicoat Class 1.5 range of façade powder varnish qualities was completed in 2022 with the
development and certification of a matt smooth version. This means that we have Qualicoat Class
1.5 certification for Category 1 for gloss smooth and (fine and coarse) textured varnishes and for
Category 3 for matt 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 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
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 in
customers who have requirements for a very narrow tolerance range of the protective coating.
Product information and labelling
We pay special attention to classification and labelling to ensure the health and safety of our products.
We regularly monitor current legislation and any changes related to labelling. When changes in
classification and labelling occur, we bring safety data sheets and labels into line with them, revise
safe working instructions and inform customers of the change. Safety and technical data sheets and
other instructions are published on the website of each product (https://www.cinkarna.si/izdelki-in-
resitve) and are accessible to everyone (customers and other interested parties). This further enables
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 reactions of 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 appropriately 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. By the end of 2023, we harmonised labels and safety data sheets in line with current

Graphics
Business report
121
legislation. We are also paying 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 were no non-compliances related to the labelling of our products by customers or inspections.
We also had no incidents related to marketing communication. In the event that a non-compliance
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 ECO is
certified (003/2022) by the Institute of Organic Agriculture as suitable for use in organic production.
Complaints
Customer complaints, objections and comments are regularly monitored and responded to with
corrective action. In 2023, there were a total of five complaints, two of which were unjustified (40%).
These were resolved to the satisfaction of the customer. Compared to 2022, the number of
complaints decreased.
Chart: Number and financial value of complaints in 2019-2023
Customer satisfaction survey
Every two years, we conduct an online customer satisfaction survey. 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:
− Score of 4.1 for satisfaction with the products/offer: the highest score (4.4) was given to the
statement "delivery times meet our expectations" and the lowest (3.9) to "the price/quality
ratio is adequate";
− Score of 4.4 for satisfaction with the professionalism of the sales staff: the highest score
(4.7) was given to the statement "as individuals they are tidy and well organised" and the
lowest (4.1) to "product presentations are helpful";
− Score of 4.5 for satisfaction with sales operations, sales promotion, consultancy, warehouse
and logistics: the highest score (4.6) was given to the statement "if they promise something,
they keep it", and the lowest (4.4) to several answers on the topic of complaints and dispatch
of goods.

Graphics
Business report
122
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%).
Suggestions for improvement on the part of the customers 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 the 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.

Graphics
Financial report
123
Financial report
Financial statements
Condensed statement of financial position of the Company
In EUR
Notes
31 Dec 2023
31 Dec 2022
ASSETS
Non-current (long-term) assets
Intangible assets
1
1,585,108
1,208,224
Tangible fixed assets
2
109,855,569
104,083,017
Financial assets at fair value through other comprehensive income
3
1,558,531
1,973,765
Other non-current assets
4
84,444
68,049
Deferred tax assets
5
1,439,044
1,226,475
Total non-current (long-term) assets
114,522,696
108,559,530
Current assets
Inventory
6
53,841,480
72,754,823
Financial receivables
7
38,616,117
0
Trade receivables
8
31,545,008
24,290,543
Income tax receivable
5,493,528
0
Cash and cash equivalents
9
15,687,805
45,210,098
Other current assets
10
209,028
133,009
Total current assets
145,392,966
142,388,473
Total assets
259,915,662
250,948,003

Graphics
Financial report
124
In EUR
Notes
31 Dec 2023
31 Dec 2022
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
119.583.496
120,290,401
Fair value reserve
–1,242,486
–809,390
Retained earnings
38,374,703
25,014,391
Total capital
221,230,458
209,010,148
Non-current liabilities
Provisions for employee benefits
12
3,843,523
3,651,696
Other provisions
13
14,233,199
14,816,968
Non-current deferred income
14
767,414
363,054
Total non-current liabilities
18,844,136
18,831,718
Current liabilities
Financial liabilities
15
103,692
59,392
Trade payables
16
18,530,350
19,518,145
Income tax payable
0
2,367,161
Liabilities under contracts with customers
17
11,352
157,520
Other current liabilities
18
1,195,674
1,003,919
Total current liabilities
19,841,067
23,106,137
Total liabilities
38,685,203
41,937,855
Total capital and liabilities
259,915,662
250,948,003
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

Graphics
Financial report
125
Income statement for the period from 1 January to 31 December
In EUR
Notes
2023
2022
Revenue from contracts with customers
20
176,464,289
227,153,116
Change in the value of inventory of products and work in progress
–6,549,243
14,113,923
Capitalised own products and own services
2
3,019,539
2,442,358
Cost of goods and materials sold
22
-296,838
-200,613
Cost of materials
22
-106,375,957
-134,953,778
Cost of services
22
-16,047,941
-16,229,210
Labour costs
22
-30,656,494
-29,483,416
Depreciation
22
-12,355,367
-12,150,684
Other operating income
21
9,455,201
7,749,919
Other operating expenses
22
-3,909,344
-5,264,418
Impairments and write-offs of trade receivables
-25,096
-1,553
Operating profit or loss
12,722,749
53,175,643
Financial income
23
1,226,596
36,259
Financial expenses
23
-143,743
-496,329
Financial result
1,082,853
–460,070
Profit or loss before tax
13,805,602
52,715,574
Current income tax
-1,304,115
-8,789,599
Deferred income tax
151,920
–529,510
Income tax
24
1,152,195
9,319,109
Net profit for the year
12,653,407
43,396,465
Basic and diluted earnings per share
1.57
5.37
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

Graphics
Financial report
126
Statement of other comprehensive income for the period from 1 January to 31 December
In EUR
2023
2022
Net profit
12,653,407
43,396,465
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
–415,234
322,666
Translation of post-employment benefits
–78,512
222,345
Impact of deferred taxes
60,649
–174,700
Net other comprehensive income in the year that will not be recognised in the
income statement in the future
–433,096
370,311
Total other comprehensive income for the year (after tax)
–433,096
370,311
Total comprehensive income for the year (after tax)
12,220,311
43,766,777
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

Graphics
Financial report
127
Statement of changes in equity and determination of distributable profit
In EUR
Profit reserves
Retained earnings
2023
Called-up
Capital
Statutory
Reserves
Own
Other
Fair value
Profit or
Net profit
Total
capital
reserve
reserves
for own
shares
profit
reserve
loss carries
For the
Capital
shares
reserves
forward
period
Opening 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
24,930,233
209,010,148
Changes in equity – transactions with
owners
0
Purchase of own shares
0
Withdrawal of own shares
0
Payment of dividends
0
0
0
Total comprehensive income for the
period
-433,096
0
12,653,407
12,220,311
Entry of net profit or loss for the
period
12,653,407
12,653,407
Other components of comprehensive income
for the period
-433,096
-433,096
B3. Changes in equity
-706,905
31,963,840
-31,256,936
0
Allocation of the residual part of net profit for
-7,033,608
7,033,608
0
the period to other components of capital
Allocation of part of reported net income to
6,326,703
24,930,232
-31,256,936
0
other components of capital as decided by
management and supervisory bodies
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
102,652,061
-1,242,486
32,047,999
6,326,704
221,230,458
DISTRIBUTABLE PROFIT
32,047,999
6,326,704
38,374,703
In EUR
Profit reserves
Retained earnings
2022
Called-up
Capital
Statutory
Reserves
Own
Other
Called-up
Capital
Statutory
Reserves
capital
reserve
reserves
for own
shares
profit
capital
reserve
reserves
for own
shares
reserves
shares
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
370,312
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
545,012
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
0
the period to other components of capital
Allocation of part of reported net income to
18,466,232
24,920,343
-43,386,575
0
other components of capital as decided by
management and supervisory bodies
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
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.

Graphics
Financial report
128
Cash flow statement
In EUR
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit or loss before tax
13.805.602
52.715.574
Adjustments for:
15.678.565
8.918.973
− Amortisation and depreciation +
12.355.367
12.150.685
− Profit/loss on sale of fixed assets
130.529
–7.253
− Impairment/write-down (reversal of impairment) of assets
1.227.035
475.817
− Net decrease/increase in allowance for receivables
25.096
1.553
− Net financial income/expenses
1.082.853
–493.615
− Long-term provisioning
1.797.223
3.483.991
− Reversal of long-term provisions
–939.538
–6.692.205
Cash flow from operating activities before change in net current
assets (working capital)
–1.728.285
–40.604.786
Change in trade receivables
–7.279.560
6.880.807
Change in other non-current and current assets
–76.019
7.194
Change in inventory
17.730.678
–32.788.789
Change in trade payables
–987.794
–7.278.748
Change in provisions
–391.942
–1.158.030
Change in deferred income
404.361
147.334
Change in other current liabilities
–3.456.228
–13.549
Change in liabilities under contracts with customer
–146.169
21.432
Income tax paid
–7.525.611
–6.422.438
Net cash flow from operating activities
27.755.882
21.029.760
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
1.119.833
43.513
Income from interest earned
1.119.833
20.235
Income from interest earned on dividends
0
16.025
Income from disposal of tangible fixed assets
0
7.253
Expenditure on investments
–58.441.421
–10.546.496
Expenditure on acquisition of intangible assets
–621.559
–436.676
Expenditure on acquisition of tangible fixed assets
–19.203.744
–10.109.820
Expenditure on acquisition of financial investments
–38.616.117
0
Net cash flow from investing activities
–57.321.588
–10.502.983
Cash flows from financing activities
Income from financing activities
0
0
Expenditure on financing activities
43.413
–25.063.273
Expenditure on repayment of financial liabilities
44.300
–138.140
Expenditure on interest paid
–887
–2.715
Expenditure on repayment of dividends and other profit shares
0
–24.922.418
Net cash flow from financing activities
43.413
–25.063.273
Closing balance of cash and cash equivalents
15.687.805
45.210.098
Net increase/decrease in cash and cash equivalents
–29.522.293
–14.536.496
Opening balance of cash and cash equivalents (01/01)
45.210.098
59.746.594
The notes to the financial statements are an integral part of the financial statements and should be
read in conjunction with them.
Due to rounding, differences of +/- 1 € are possible.

Graphics
Financial report
129
Notes to the financial statements
I. Introductory notes to the financial statements
Cinkarna, metalurško-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 2023, 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 2023 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 2023 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 prepared its financial statements
in accordance with Slovenian Accounting Standards. For the first time, the Company prepared its
first complete set of financial statements for the 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), with the date of transition to IFRS at 1
January 2020.
The financial statements for the financial year 2023 were approved by the Company's Management
Board on 4 April 2024.
The Company prepares its financial statements on the going concern basis. The accounting policies
applied are the same as in previous years.
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
2023 and described below:

Graphics
Financial report
130
A) Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those adopted last year, with the exception of
the following amendments to IFRS adopted by the Company on 1 January 2023, which are described
below:
− IFRS 17 Insurance Contracts,
− IAS 1 Presentation of Financial Statements and IFRS Practice Guidance No 2: Disclosure of
Accounting Policies (Amendments),
− IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of
Accounting Estimates (Amendments),
− IAS 12 Income Taxes: Deferred Tax on Assets and Liabilities Arising from a Single Transaction
(Amendments),
− IAS 12 Income Tax: International Tax Reform - Model Rules under Pillar 2 ( Amendments).
The newly adopted IFRS and amendments to IFRS did not have a material impact on the accounting
policies of Cinkarna Celje d.d.
• IFRS 17 Insurance Contracts
The Standard is effective for annual periods beginning on or after 1 January 2023. It is a
comprehensive new accounting standard for insurance contracts, covering recognition and
measurement, presentation and disclosure. IFRS 17 applies to all types of insurance contracts issued
and to certain guarantees and financial instruments with discretionary participation contracts. The
Company does not issue contracts under IFRS 17 and therefore the application of this standard has
no impact on the Company's financial performance, financial position and cash flows.
The amendments did not have any impact on the financial statements of Cinkarna Celje, d.d.
• IFRS 17 Insurance Contracts
The Standard is effective for annual periods beginning on or after 1 January 2023. IFRS 17, which
aims to provide an accounting model for insurance contracts that is more useful and consistent for
insurers, establishes principles for the recognition, measurement, presentation and disclosure of all
types of insurance contracts and certain guarantees and financial instruments with discretionary
participation features. The accounting model is complemented by a specific adaptation for contracts
with direct participation elements (variable fee approach) and a simplified approach (premium
allocation approach), mainly for short-term contracts.
The main features of the new accounting model include the measurement of the present value of
future cash flows, including an explicit risk adjustment that is re-measured for each reporting period
(fulfilment cash flows). The model also includes a Contractual Service Margin (CSM), which is equal
and opposite to the profit on initial recognition on the fulfilment of the cash flows of a group of
contracts, representing the unearned profit on insurance contracts that is recognised in the income
statement on the basis of the services provided by the insurance contract during the period of
coverage. Certain changes in the expected present value of future cash flows adjust the CSM balance
and are therefore recognised in the income statement over the remaining coverage period of the
group of contracts. Amounts payable to the policyholder in all circumstances, irrespective of whether
an insured event occurs (non-differentiated investment components), are not shown in the income
statement but are shown directly in the statement of financial position.
In addition, the presentation of income and expenses from insurance services in the statement of
comprehensive income is based on the services provided during the reporting period. The results of
insurance services (premiums earned less claims incurred) are presented separately from financial

Graphics
Financial report
131
income and expenses from insurance contracts. The statement of financial position presents
separately the carrying amounts of portfolios of insurance contracts issued as assets and liabilities
respectively, with the same requirement applying to portfolios of reinsurance contracts held. IFRS
17 also requires extensive disclosures to provide information about the amounts recognised under
insurance contracts and the nature and extent of the risks arising from those contracts.
With respect to transition, the CSM Review Panel decided to apply a retrospective approach at the
date of transition. If the retrospective approach, as defined in IAS 8, is not fully practicable for a
group of insurance contracts, the entity shall choose either the modified retrospective approach or
the fair value approach. Both provide transitional simplifications.
In December 2021, the International Accounting Standards Board issued amendments to IFRS 17 to
add the option to transition to a '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. An entity that applies a classification
overlay to a financial asset shall present the comparative information as if the classification and
measurement requirements in IFRS 9 had been applied to that financial asset.
The Standard and its amendments had no 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)
The amendments are effective for annual periods beginning on or after 1 January 2023. The
amendments provide guidance on the application of materiality judgements to disclosures about
accounting policies. 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 assessed its
accounting policies for disclosures and did not identify any 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 reporting periods beginning on or after 1 January 2023 and
apply to changes in accounting policies and changes in accounting estimates that occur at or after
the beginning of the 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 amendments did not have a 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. The
amendments limit the scope and further clarify the scope of the initial recognition exemptions under
IAS 12 and specify how entities should account for deferred tax related to assets and liabilities arising
from a single transaction, such as leases and decommissioning obligations. The amendments clarify
that, for payments to settle a liability deductible for tax purposes, judgement is required, subject to
applicable tax law, as to whether such deductions are attributable for tax purposes to the liability or

Graphics
Financial report
132
to the related asset component. 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 the leased asset and the lease liability (or the
decommissioning liability and decommissioning asset components) give rise to taxable and
deductible temporary differences that are not the same. The amendments did not have a material
impact on the financial statements of Cinkarna Celje d.d.
• IAS 12 Income Tax: International Tax Reform - Model Rules under Pillar 2 (
Amendments)
The amendments come into force immediately after their issue, but some disclosure requirements
come into force at a later date. In December 2021, the Organisation for Economic Co-operation and
Development (OECD) published model Pillar 2 rules to ensure a minimum 15% tax rate for large
multinational companies. On 23 May 2023, the International Accounting Standards Board issued
International Tax Reform - Pillar 2 - Model Rules - Amendments to IAS 12. The amendments
introduce a mandatory temporary exemption from accounting for deferred taxes arising from the
implementation of the Pillar 2 model rules in individual countries and disclosure requirements for the
entities concerned regarding their potential exposure to Pillar 2 income taxes. The amendments
require disclosure, for periods in which Pillar 2 legislation is (substantively) enacted but not yet
effective, of known or reasonably estimable information that assists users of financial statements in
understanding an entity's exposure to Pillar 2 income taxes. To meet these requirements, an entity
must disclose qualitative and quantitative information about its exposure to Pillar 2 income taxes at
the end of the reporting period. Disclosure of current tax expense related to Pillar 2 income taxes
and disclosures relating to periods before the enactment of the legislation are required for annual
reporting periods beginning on or after 1 January 2023, but are not required for any interim period
ending on or after 31 December 2023. The amendments did not have a material impact on the
financial statements of Cinkarna Celje d.d.
B) Standards issued but not yet effective and not early adopted
B.1) Applicable standards/amendments not yet in force but endorsed by the European
Union
• 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 are to be applied retrospectively in accordance with IAS 8.
The management of the Company assessed that there will be no material impact on the financial
statements of Cinkarna Celje d.d.
• IFRS 16 Leases
Lease Obligation 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
management of the Company 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 are to be applied retrospectively in accordance with IAS 8.

Graphics
Financial report
133
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, 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 liabilities under
loan facilities that are subject to commitments to be fulfilled within 12 months after the reporting
period. The management of the Company 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 amendments are intended to improve the requirements that
a vendor-lessee applies in measuring lease liabilities in sale and leaseback transactions in IFRS 16,
while not changing the accounting for leases that are not related to sale and leaseback transactions.
In particular, the vendor-lessee designates 'lease payments' or 'adjusted lease payments' so that the
vendor-lessee would not recognise any amount of gain or loss relating to the right-of-use it retains.
The application of these requirements does not prevent a vendor-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, the vendor-lessee applies the amendment retrospectively to sale and leaseback transactions
entered into after the date of initial application, being the beginning of the annual reporting period
in which the entity first applies IFRS 16.
B.2) Applicable standards/amendments not yet in force and not yet endorsed by the
European Union
• IAS 7 Statement of Cash Flows and IFRS 7 Disclosure of Financial Instruments:
Vendor Financing Arrangements (Amendments)
The amendments are effective for annual reporting periods beginning on or after 1 January 2024,
with earlier application permitted. The management of the Company assessed that there will be no
material impact on the financial statements of Cinkarna Celje d.d.
• IAS 21 Effects of Changes in Foreign Exchange Rates: Inability to Exchange
(Amendments)
The amendments are effective for annual reporting periods beginning on or after 1 January 2025,
with earlier application permitted. The management of the Company 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
In December 2015, the IASB Board postponed the effective date of this amendment indefinitely,
pending the completion of its research project on the equity method.
• IAS 7 Statement of Cash Flows and IFRS 7 Disclosure of Financial Instruments:
Vendor Financing Arrangements (Amendments)

Graphics
Financial report
134
The amendments are effective for annual reporting periods beginning on or after 1 January 2024,
with earlier application permitted. The amendments supplement the requirements in IFRSs and
require an entity to disclose the terms of supplier financing arrangements. In addition, entities are
required to disclose, at the beginning and end of the reporting period, the carrying amounts of
financial liabilities under supplier financing arrangements and the items in which those liabilities are
presented, and the carrying amounts of financial liabilities and items for which the financing providers
have already settled the related trade payables. Entities also need to disclose the nature and effect
of non-cash changes in the carrying amounts of financial liabilities under vendor financing
arrangements that make the carrying amounts of the financial liabilities non-comparable. In addition,
the amendments require an entity to disclose, at the beginning and end of the reporting period, the
range of payment dates for financial liabilities due to financing providers and for comparable trade
payables that are not part of those arrangements. These amendments were not yet endorsed by the
European Union. The management of the Company assessed that there will be no material impact
on the financial statements of Cinkarna Celje d.d.
• IAS 21 Effects of Changes in Foreign Exchange Rates: Inability to Exchange
(Changes)
The amendments are effective for annual reporting periods beginning on or after 1 January 2025,
with earlier application permitted. The amendments specify how an entity should assess whether a
currency is convertible and, if it is not convertible, how it should determine the spot exchange rate.
A currency is considered convertible to another currency if the entity can acquire the other currency
within a period that allows for normal administrative delay and through a market or exchange
mechanism that would give rise to enforceable rights and obligations upon conversion. If the currency
cannot be exchanged into another currency, the entity is required to estimate the spot exchange
rate at the measurement date. An entity's objective in estimating the spot exchange rate is to reflect
the rate at which a regular exchange transaction between market participants would have been made
at the measurement date under prevailing economic conditions. The amendments state that an entity
may use the observed exchange rate without value adjustments or other valuation techniques. The
amendments were not yet endorsed by the European Union. The management of the Company
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 contribution of assets between an investor and its associate
or joint venture. The main effect of the amendments is that the full gain or loss is recognised when
the transaction involves an entity (whether or not it is hosted by a subsidiary). A partial gain or loss
is recognised when the transaction involves assets that do not represent an entity, even if those
assets are deposited with a subsidiary. In December 2015, the IASB Board postponed the effective
date of this amendment indefinitely pending the completion of its research project on the equity
method. The European Union did not yet endorse these amendments. The management of the
Company assessed that there will be no material impact on the financial statements of Cinkarna Celje
d.d.
C. APPLICATION OF THE GOING CONCERN ASSUMPTION
In preparing the financial statements for Cinkarna Celje d.d. for the financial year 2023, the
Management Board of Cinkarna Celje d.d. took into account the going concern basis of accounting
which assumes that the Company has the knowledge, information and actions that enable it to

Graphics
Financial report
135
continue as a going concern and to be able to generate sufficient cash flow to meet its liabilities and
provide investors with an appropriate return on equity.
D. MEASUREMENT BASES
The financial statements are prepared on the 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.
E. 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. Due to rounding, differences of +/- 1 € are
possible.
F. USE OF ESTIMATES AND ASSESSMENTS
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.
Estimates include the determination of the useful lives and residual values of property, plant and
equipment and intangible assets, the recoverable amount of property, plant and equipment,
estimates of the fair value of financial assets at fair value through other comprehensive income,
valuation allowances for inventory and receivables, estimates of amounts payable under contracts
with customers, estimates of the recoverability of deferred tax assets, assumptions relevant to the
actuarial calculation of employee benefits, assumptions included in the calculation of the provision
for ecological purposes, and legal and constructive damages.
Other important assessments include the subsidy to mitigate the energy crisis under the ZPGOPEK
Act, i.e. the assessment with respect to reasonable assurance that the future conditions for receiving
and maintaining the subsidy received will be met.
The assessments and the assumptions made are regularly reviewed. 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:
• In 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.
• In Note 21 – Revenue from contracts with customers
Revenue from contracts with customers is recognised based on the terms of the individual sales
contract with the customer, when control of the goods and services is transferred to the customer,
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 customers is reduced by bulk

Graphics
Financial report
136
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 customer who would be entitled to
compensation for the higher volumes are not settled, the discount is not granted and is only assessed.
• Impairment testing of trade receivables in Note 8 - Short-term 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 customer. The methodology includes the
following quantitative and qualitative criteria: an analysis of the customer's payment record, an
analysis of the customer's financial statements - credit report, qualitative assessments of the
customer 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
allowance for doubtful accounts is calculated for each customer.
• In 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 Company has investments.
• In 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 makes a critical assessment, based on the legal
or other basis for recognition, of whether the present obligation, which arises from past events and
could result in future outflows for the Company, is supported by external legal experts and also by
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 timing of those activities and the discount itself,
using the written opinions of external specialists in the relevant field in making the assessment. The
assessment is mainly linked to environmental provisions.
• In Note 12 – Provisions for post-employment benefits and other long-term
employee benefits
The present values of retirement benefits and jubilee bonuses are recorded within the defined benefit
obligations. They are recognised based on an actuarial calculation prepared by a chartered 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

Graphics
Financial report
137
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.
• In Note 17 – Current liabilities under contracts with customers
Cinkarna Celje accounts for contractual discounts when preparing its annual financial statements in
cases where customers 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 customers 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, 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
available within five years against which the deferred tax asset can be utilised in the future. Deferred
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 – impairment of receivables, provisions, fair value
measurements, leases, labour costs and the deductibility of deferred tax assets.
III. Significant accounting policies
The Company applied accounting policies in accordance with IFRS for the period presented in the
accompanying financial statements. The Company did not change the accounting policies disclosed
in the Annual Report for the financial year 2022.
In selecting the accounting policies, deciding on their application and preparing the financial
statements, the management considered the following three requirements: the financial statements
are understandable if they are readily understandable by users; the information is relevant if it assists
the user in making economic decisions; and the information is material if its omission or
misstatement could affect the economic decisions of users. The financial statements contain
comparative information.
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

Graphics
Financial report
138
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. Cost also includes borrowing costs until the intangible asset is
created.
Subsequent expenditure relating to intangible fixed assets is capitalised to the extent that it increases
the future economic benefits of the asset to which it relates.
The Company applies the straight-line method. Amortisation rates are determined by reference to
the expected useful lives. Amortisation is charged on a straight-line basis until the amortised cost
base is fully recovered and begins to be amortised when the intangible asset with the finite useful
life is available for use. The estimated useful lives for the current and comparative periods are:
− computer software: 2 to 10 years,
− technical and project documentation: 8 to 40 years,
− easements: 20 years and more.
The amortisation and depreciation rates in 2023 remain unchanged from the previous year.
C. TANGIBLE FIXED ASSETS
The Company's tangible fixed assets comprise land, buildings, manufacturing equipment, other
property, plant and equipment, small inventories, property, plant and equipment under construction
or in the course of construction, and advances for the acquisition of property, plant and equipment.
The Company uses the cost model. Cost includes costs directly attributable to the acquisition of an
individual 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 and
accumulated impairment losses. The cost includes borrowing costs related to the acquisition of the
tangible fixed asset until it is ready for use.
The cost of a tangible fixed asset constructed or manufactured in the Company consists of the costs
directly attributable to its construction or manufacture (costs of materials, labour, services of external
contractors and services of the Company's business units) and those general construction or
manufacturing costs that are directly attributable to its qualification for its intended use.
The cost of a tangible fixed asset is allocated to its 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.

Graphics
Financial report
139
Subsequent expenditure relating to a tangible fixed asset increases its cost if it is its 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 determined according to the
expected useful lives. Amortisation is charged on a straight-line basis until the asset is fully recovered
from the asset, which forms the basis for depreciation, and commences on the first day of the month
after 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.
The amortisation and depreciation rates in 2023 remain unchanged from the previous year.
In estimating the useful lives of assets, the Company takes into account 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 consideration. 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
The Company as lessee has no leases.
The Company as lessor
Leases in connection with which there is no significant transfer of the risks and rewards of ownership
are classified as operating leases. Lease 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 lease income. Contingent lease
payments are recognised as income in the period in which they are earned.
D. OTHER NON-CURRENT ASSETS

Graphics
Financial report
140
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 one euro per emission allowance;
− Income from the sale of allocated emission allowances is shown in other operating income in
the income statement;
− Purchases of emission allowances on the market are recorded as non-current assets at cost
if they cover actual issuances that will take place in future periods;
− Current liabilities are expensed when the estimated amount of actual emissions exceeds the
number of emission allowances of the Company that have been either allocated or purchased
to cover the actual emissions;
− If the market value of the emission allowances purchased at the year-end is lower than their
carrying amount, the allowances are revalued for impairment;
− The Company first applies all the allowances acquired from the government at the balance
sheet cut-off date and applies any shortfall to allowances purchased on the market at average
cost.
E. FINANCIAL INSTRUMENTS
Financial instruments include non-derivative financial assets and 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 the financial asset on initial recognition at fair value, which, in
the case of a financial asset not 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 customers).
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; or
− cash.
Non-derivative financial assets include cash and cash equivalents, receivables, loans and
investments. The Company recognises receivables and 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.

Graphics
Financial report
141
Impairment of financial assets is described in more detail in note H below.
Financial assets at fair value through other comprehensive income
Financial assets 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 for financial assets at amortised cost. All other changes in fair
value are recognised in the statement of other comprehensive income. On de-recognition, the
cumulative change in fair value recognised in other comprehensive income is reclassified to profit or
loss. Financial assets 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 entity 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. Gains and losses
on these financial assets are never allocated to the income statement.
Dividends on equity instruments are recognised as financial revenue 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 the Company is required to measure
at fair value. Financial assets are classified as held for trading if they are acquired with a view to
selling or repurchasing 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.

Graphics
Financial report
142
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 outstanding 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
Derivative financial instruments are initially recognised at fair value. Transaction costs are recognised
in profit or loss as incurred. Subsequent to initial recognition, derivative financial instruments are
measured at fair value, with the related changes recognised in profit or loss. 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 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 makes purchases of strategic raw materials in US dollars and also makes sales to US
dollar markets that are significantly lower in value than purchases. Purchases and sales in different
currencies result in mismatches between purchase and sale prices and in a constantly changing
euro/dollar exchange rate; the Company balances this through forward transactions to maintain the
correct euro/dollar exchange rate and to minimise 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. INVENTORY
The Company's inventory 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

Graphics
Financial report
143
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 inventories 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. Inventories 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%.
Inventories of work in progress, semi-finished and finished goods are valued at production cost,
which includes direct costs of materials, wages and salaries and production services, depreciation
and amortisation, and a portion of the general production costs of production cost centres, comprising
the cost of materials, maintenance, insurance and a portion of the cost of other services. The
Company uses constant prices (PVS) with offsets to record inventories of work in progress and
finished goods. Cost transfers from inventories are made using the weighted average price method.
Inventories of work in progress and finished goods without movements 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 impairment 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 Board's assessment of whether actual
losses due to current economic conditions are likely to 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

Graphics
Financial report
144
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 Management, Insolvency and Compulsory
Liquidation Proceedings Act (ZFPPIPP).
Claims that are presumed to be unsettled or not settled in full are considered doubtful and, if they
are the subject of legal proceedings, questionable. 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.
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 indications 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 of determining 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

Graphics
Financial report
145
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 based on comparable market data of 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.
Outstanding financial commitments
For reporting purposes, fair value is calculated based on the present value of future principal and
interest payments discounted at the market rate of interest at the end of the reporting period.
J. CAPITAL
The Company's total capital consists of: called-up capital, capital reserves, profit reserves, fair value
reserves, retained earnings or undiscounted losses from previous years and interim undistributed
earnings or loss for the year.
Called-up capital represents the share capital, nominally as 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 capital 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 transfer
and the general revaluation adjustments to capital, which, in accordance with the then applicable
SRS, included the revaluation of the share capital prior to 2002. As a result of the changeover to the
new SRS (2006), the general revaluation adjustment to the Company's capital was transferred to
the capital reserves on 1 January 2006.
The profit reserve is a portion of the net profit of previous years retained for a specific purpose,
mainly to offset possible future losses. They consist of: legal reserves, reserves for own shares or
own interests, own shares or own interests (as a deductible item), statutory reserves and other profit
reserves.
Retained earnings from previous years are the residual of the then net profit which 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
that are 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.

Graphics
Financial report
146
K. CURRENT EMPLOYEE BENEFITS
Current employee benefit obligations are measured on an undiscounted basis and are recognised as
an expense when the employee's service related to the defined short-term benefit is rendered.
L. NON-CURRENT EMPLOYEE BENEFITS
Provisions for post-employment and other non-current employee benefits
The Company is obliged by law, collective agreement and internal rules to pay jubilee bonuses and
retirement benefits to employees, for which provisions are made. There are no other pension
obligations. Provisions are made for estimated future payments of retirement and jubilee benefits,
discounted at the reporting date. The calculation takes into account the cost of severance payments
on retirement and the cost of any expected jubilee awards until retirement. Personnel and 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. OTHER 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 the best estimate of the costs, as well as other activities
required, based on the assessments of external independent environmental experts related to the
operation of the landfills and facilities owned by the Company to meet the long-term obligations. The
Company's management assesses whether there is a legal, contractual or constructive obligation to
replenish/release the provision. The 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 by a discount factor of the government bond yield. 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. In 2023, a review of all provisions was carried out again with the help of external
experts who estimated the new works needed (landslide rehabilitation, sealing curtain). The value of
the works carried out took inflation into account and, on the basis of the timetable, discounting of
the provisions was carried out accordingly by discounting the provisions by the government bond
yield factor.
N. GOVERNMENT GRANTS
Revenue from government grants is recognised in the financial statements of Cinkarna Celje d.d.
when received and when there is reasonable assurance that the Company will comply with the terms
and conditions of the grant. The Company recognises government grants related to the epidemic in
Slovenia in current operating income. Remaining government and other subsidies received to cover
costs are recognised as revenue on a consistent basis in the periods in which the related expenses

Graphics
Financial report
147
are incurred to be compensated by the subsidies. Asset-related government grants are recognised
in the income statement on a strictly consistent basis within other operating income over the useful
life of the asset.
Revenue from government subsidies to mitigate the energy crisis is recognised initially if there is
reasonable assurance that Cinkarna Celje will receive the revenue and that it will meet the conditions
related to receiving and retaining the revenue. Revenue from government subsidies is consistently
recognised in other operating income in the income statement.
Government grants received for the acquisition of fixed assets or the recovery of certain costs remain
temporarily in deferred income and are transferred to operating income in accordance with the
depreciation of the fixed assets acquired or the costs incurred for which they are intended to be
recovered.
O. OTHER CURRENT ASSETS AND OTHER CURRENT LIABILITIES
Under other current assets, the Company recognises short-term deferred costs 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.
Within other current liabilities, the Company recognises accrued costs or expenses and deferred
income. In accordance with the established methodology for the allocation of the cost of annual
commitments, planned commitments are deferred 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 customers
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 customers is the result of sales of chemical, metallurgical and other
manufacturing products and materials where the performance obligation is settled when the goods
are shipped or accepted by the customer. In the case of revenue from contracts with customers,
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 customers for the
sale of goods or services. Revenue from sales reflects transfers (deliveries) of contractually agreed
goods or services to customers 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 customer obtains (or
acquires) control of them. The customer obtains control of the good or service when the customer
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

Graphics
Financial report
148
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 customer, the
Company specifies all performance obligations contained in the contract. Each obligation to transfer
goods or services to the customer is identified as a separate (distinct) performance obligation:
− Which, under the IASB's criteria, can be identified in the context of a contract separately
from other contractual obligations to transfer goods or services;
− The customer 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 customer 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 treatment of goods and services depends on the terms of the purchase contract, and the transfer
occurs when the goods are accepted by the customer or the service is rendered. The normal payment
period is between 30 and 90 days.
Assets from contracts with customers
A contract asset is a right to consideration in exchange for goods or services that have been
transferred to the customer but not yet billed to the customer. The Company recognises unbilled
revenue for goods and services supplied to customers as contract assets.
Liabilities from contracts with customers
A contract liability is an obligation to transfer goods or services to a customer in exchange for
consideration received by the Company from the customer. The Company recognises a contract
liability for volume discounts granted. Contract liabilities 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 customer
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
Comprises 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.

Graphics
Financial report
149
Q. EXPENSES
An expense 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 the 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 inventory 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 inventory, as well as purchase and selling costs and general operating
expenses accrued during the accounting period. The transfer of costs from inventory 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 inventories of products and work in progress, less the costs retained in closing
inventories of products and work in progress, valued at production cost.
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.
Operating expenses - impairments 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)
Corporate 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 capital.
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.
Current tax is the tax expected to be payable on the taxable profit for the year using tax rates
enacted or substantively enacted at the reporting date.
Deferred tax is recognised 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.
The deferred tax liability is 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

Graphics
Financial report
150
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
The Company discloses information by segment. An operating segment is an identifiable component
of the 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 operating area); these
segments are distinguished by their risks and rewards. Segment information is presented by the
Company's geographical and business segments. The Company's 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 units are the business units that produce the key products Titanium Dioxide,
Zinc Processing, Varnishes, Masters and Inks, Agro Programme, Polymers and Others.
Operating profit by operating segment is stated as the difference between operating income and
expenses, taking into account those revenues and expenses that are directly attributable to each
segment, excluding those revenues and expenses that cannot be allocated to the operating segment
in a meaningful way. Smaller business segments are aggregated into one category, the business
unit, 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 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 uses various instruments to manage financial risks when using financial instruments
to manage credit, liquidity, market, currency and operational risks, which are presented in more
detail in Note VI Financial instruments and financial risks.
IV. REPORTING BY SEGMENT
Cinkarna Celje d.d. reports revenue from contracts with customers by geographically defined
segments and sales programmes. Revenue from contracts with customers is reported by
geographical location of customers and sales programmes. The Company monitors the following
segments in the preparation and presentation of the income statement and revenue from contracts
with customers:

Graphics
Financial report
151
− Titanium dioxide, comprising sales of titanium dioxide pigment together with other sales of
the TiO
2
business unit including sales of CEGIPS and sulphuric acid.
− Zinc processing, comprising all sales of metallurgical products.
− Paints, varnishes, masters and printing inks.
− Agro programme, comprising all sales of copper fungicides and Humovit.
− Polymers, covering all polymer sales of the business unit.
− Other, comprising sales of service activities and other unallocated items.
Sales by operating segment
In EUR
2023
2022
Titanium dioxide
146,042,369
189,740,282
− of which TiO
2
pigment
143,356,887
186,385,200
Zinc processing
5,637,539
8,240,209
Varnishes, masters
16,579,785
18,516,808
Agro programme
5,443,530
8,481,917
Polymers
2,148,761
1,647,402
Other
612,307
526,498
TOTAL
176,464,289
227,153,116
In the Annual Report 2022, we reported by the following segments:
− Titanium dioxide, comprising the sale of titanium dioxide pigment;
− Zinc processing, comprising sales of metallurgical products;
− Paints, varnishes, masters and printing inks;
− Agro Programme, comprising sales of copper fungicides and Humovites;
− Other, comprising sales of CEGIPS, sulphuric acid, polymers, service activities, holiday
accommodation, etc.
Sales by operating segment reported in Annual Report 2022
In EUR
2022
2021
Titanium dioxide
187,495,664
156,788,783
Zinc processing
8,240,209
6,364,355
Varnishes, masters 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
The change in segment reporting in 2023 compared to 2022 is that in 2023 reporting refers to the
business units that make up an individual segment, rather than to the sales groups as reported in
2022. The main change is in the reporting of the Titanium Dioxide segment, which contains CEGIPS,
sulphuric acid, in addition to the main product, which in 2022 was reported under Other. Also new is
the reporting of the Polymers section, which in 2022 was reported under Other.
Sales by regional segment
In EUR
2023
2022
Slovenia
14,889,861
18,781,919
European Union
134,006,280
173,950,706
Market of the former Yugoslavia
3,395,401
4,959,791
Third countries
19,504,886
27,117,372
Third countries – dollar market
4,667,861
2,343,328
TOTAL
176,464,289
227,153,116

Graphics
Financial report
152
Operating result by segment with modified reporting
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 result 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 level of the
Company.
In EUR
Titanium dioxide
Zinc processing
Varnishes and masters
Agro programme
Polymers
Other
Total
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
Revenue from contracts with
customers
189,740,282
146,042,369
8,240,209
5,637,539
18,516,808
16,579,785
8,399,825
5,443,530
1,647,671
2,148,761
608,321
612,306
227,153,116
176,464,289
Other operating income +
capitalised own products
7,297,949
9,659,305
7,467
1,953
34,273
16,354
21,777
66,134
287,853
260,983
2,542,957
2,899,413
10,192,276
12,474,740
Change in value of inventory
13,804,333
–6,293,658
45,758
–10,368
767,982
–117,437
–494,589
–118,274
0
–9,561
–9,506
14,113,923
–6,549,243
Operating expenses
–160,479,827
-135,929,022
–8,112,153
–5,553,788
–16,451,079
–16,577,133
–7,864,834
–6,415,451
–1,637,649
–1,939,868
–3,738,133
–3,681,175
–198,283,673
–169,667,038
– of which depreciation
–8,521,698
–8,788,685
–79,813
–65,421
–395,688
–385,472
–292,084
–270,655
–187,876
–188,449
–2,673,525
–2,656,685
–12,150,684
–12,355,367
Operating result
50,362,737
13,478,993
181,281
75,335
2,867,986
-98,431
62,179
-1,024,061
297,876
469,875
–596,416
–178,962
53,175,643
12,722,749
Interest income
20,235
1,121,471
Other financial income
16,025
0
Interest expense
2,714
887
Other financial expenses
493,615
37,730
Financial result
0
0
0
0
0
0
0
0
0
0
0
0
–460,069
1,082,853
Deferred taxes
–529,510
151,920
Income tax
8,789,599
1,304,115
Net profit
0
0
0
0
0
0
0
0
0
0
0
0
43,396,465
12,653,407

Graphics
Financial report
153
V. NOTES
1 Intangible assets
In EUR
Group of intangible assets
for 2023
Acquisition value
Value adjustment
Undepreciated value
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Property rights
6,161,514
5,845,554
5,093,263
4,907,487
1,068,251
938,067
Construction in progress
516,856
270,158
0
0
516,856
270,158
TOTAL
6,678,369
6,115,711
5,093,263
4,907,487
1,585,108
1,208,224
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
Construction in progress
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
Intangible assets have finite useful lives. The Company reviewed their values and determined that
their present value does not exceed their recoverable amount. In 2023, the Company invested in
long-lived property rights from investments in software and project documentation. Decreases in
intangible assets relate to amortisation and write-off of other intangible assets.
49.1% of the total intangible assets in use as at 31 December 2023 are fully amortised (51.2% as
at 31 December 2022). The percentage is calculated according to the cost of the intangible assets.
No intangible assets are given as guarantees for liabilities as at 31 December 2023 and 31 December
2022. The Company also has no commitments under contracts for the purchase of intangible assets.
Movements in intangible assets
In EUR
2023
Property rights
Construction in
progress
TOTAL
ACQUISITION VALUE
Balance as at 31 Dec 2022
5,845,554
270,158
6,115,712
Increases
0
621,559
621,559
Transfer from construction in progress
374,861
–374,861
0
Decreases
58,901
0
58,901
Balance as at 31 Dec 2023
6,161,514
516,856
6,678,370
VALUE ADJUSTMENT
Balance as at 31 Dec 2022
4,907,487
0
4,907,487
Current year depreciation
244,677
0
244,677
Decreases
58,901
0
58,901
Balance as at 31 Dec 2023
5,093,262
0
5,093,262
UNDEPRECIATED VALUE
Balance as at 31 Dec 2022
938,067
270,158
1,208,224
Balance as at 31 Dec 2023
1,068,252
516,856
1,585,108
In EUR

Graphics
Financial report
154
2022
Property rights
Construction in
progress
TOTAL
ACQUISITION VALUE
Balance as at 31 Dec 2021
5,633,593
91,424
5,725,018
Increases
0
436,676
436,676
Transfer from construction in progress
257,942
–257,942
0
Decreases
45,982
0
45,982
Balance as at 31 Dec 2022
5,845,554
270,158
6,115,711
VALUE ADJUSTMENT
Balance as at 31 Dec 2021
4,744,345
0
4,744,345
Current year depreciation
209,124
0
209,124
Decreases
45,982
0
45,982
Balance as at 31 Dec 2022
4,907,487
0
4,907,487
UNDEPRECIATED VALUE
Balance as at 31 Dec 2021
889,248
91,424
980,673
Balance as at 31 Dec 2022
938,067
270,158
1,208,224
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
2023
Acquisition value
Value adjustment
Undepreciated value
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Land
10,803,263
10,803,263
1,271,096
1,198,754
9,532,167
9,604,509
Buildings
130,042,752
128,674,115
90,433,245
87,057,629
39,609,507
41,616,487
Equipment
239,932,766
225,138,242
188,822,401
183,644,286
51,110,365
41,493,957
Construction in progress
9,603,529
10,276,338
0
0
9,603,529
10,276,338
Advances
0
1,091,727
0
0
0
1,091,727
TOTAL
390,382,311
375,983,686
280,526,742
271,900,668
109,855,569
104,083,017
In EUR
Group of tangible fixed 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
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
Construction in progress
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
105.896.129
The Company does not have any assets under finance leases and, as at 31 December 2023 and 31
December 2022, the Company does not have any assets pledged as collateral for any guarantees.

Graphics
Financial report
155
Movements in property, plant and equipment
In EUR
2023
Land
Buildings
Production and
other equipment
TOTAL
Construction in
progress
Advances
TOTAL
ACQUISITION VALUE
Balance as 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
Increases
0
0
0
0
19,203,744
1,741,207
20,944,952
Transfer from ass. under acq.
0
1,368,637
18,291,937
19,660,574
-19.717.374
-2,832,934
-2,889,734
Decreases
0
3,497,413
3,497,413
159,179
3,656,592
Balance as at 31 Dec 2023
10,803,263
130,042,752
239,932,767
380,778,782
9,603,529
0
390,382,311
POPRAVEK VRED.
Balance as at 31 Dec 2022
1,198,755
87,057,628
183,644,286
271,900,669
0
0
271,900,668
Depreciation
72,342
3,399,172
8,634,426
12,105,939
0
0
12,105,939
Decreases
0
41,862
3,476,856
3,518,718
0
0
3,518,718
Increases
0
0
4,751
4,751
0
0
4,751
Impairments+/-
18,307
15,795
34,102
34,102
Balance as at 31 Dec 2023
1,271,097
90,433,245
188,822,401
280,526,743
0
0
280,526,743
NEODPISANA VRED.
Balance as 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
Balance as at 31 Dec 2023
9,532,167
39,609,507
51,110,365
100,252,039
9,603,529
0
109,855,569
As at 31 December 2023, the Company carried out an impairment test of the value of non-current
assets in accordance with IAS 36 and therefore had the assets valued by a certified 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 of the Company's macroeconomic
situation and their valuation value exceeds their carrying amount.
The impairment test of the non-current assets of the cash-generating unit of Cinkarna Celje was
performed due to indications that the asset may be impaired due to the impact of inflation on the
economic environment and the general continuation of the deterioration of the economic conditions.
In the last half of 2023, the Company faced a decline in sales prices and volumes in 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 invasion of the Chinese pigment. Nevertheless, Cinkarna Celje closed
the financial year 2023 with a positive result and achieved a satisfactory operating result within
expectations and in line with the results of its industry competitors.
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 8.92% (2024-2028) and an annual long-term
growth rate of the residual cash flow of 2.3%. In the opinion of the management, a reasonable
change in the discount rate or the rate of growth would not result in an impairment of the assets of
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: change in the discount rate +/-
0.5%, change in the long-term growth rate +/-1%, change in the NOPLAT +/-5%, and change in the

Graphics
Financial report
156
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 %
12 %
Change in the long-term growth rate
Increase by
1.0 %
8 %
Decrease by
1.0 %
–6 %
Change in profitability
Increase in NOPLAT by
5.0 %
8 %
Decrease in NOPLAT by
5.0 %
–8 %
Change in investments
Increase in CAPEX by
5.0 %
–12 %
Decrease in CAPEX by
5.0 %
12 %
Upper limit
9.8 %
Lower limit
–9.0 %
In 2023, the Company recognises an increase in tangible fixed assets as a result of the difference
between the value of the invested assets and the accumulated depreciation. In 2023, the Company
invested EUR 19.8 million (EUR 10 million in 2022) in the modernisation of production equipment
and replacement equipment, mainly in the titanium dioxide sector, of which the most significant
investments are as follows: installation of solar power plants (EUR 3.2 million), which represent
sustainable investments related to climate change and the sustainable operation of the Company,
replacement of the pigment spinning press (EUR 2.4 million), replacement of the AS1 intermediate
absorption tower (EUR 0.9 million), replacement of the sulphur combustion furnace (EUR 0.5 million),
installation of a third sand mill (EUR 0.6 million), purchase and replacement of the 02.08 heat
exchanger (EUR 0.6 million), installation of the 12.10.C vessel (EUR 0.5 million), optimisation of the
steam system and increase of production capacity (EUR 0.2 million), etc.
As at 31 December 2023, the Company has EUR 9.6 million construction in progress, mainly related
to the maintenance and modernisation of the titanium dioxide production, the key ones being:
replacement of the pigment spinning press (EUR 2.4 million), installation of the 12.10.C vessel (EUR
0.5 million), optimisation of the steam system and increase of the production capacity (EUR 0.3
million), etc.

Graphics
Financial report
157
In EUR
2022
Land
Buildings
Production and
other equipment
TOTAL
Construction in
progress
Advances
TOTAL
ACQUISITION VALUE
Balance as 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
Balance as 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
Balance as 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
Balance as at 31 Dec 2022
1,198,755
87,057,628
183,644,286
271,900,668
0
0
271,900,668
UNDEPRECIATED VALUE
Balance as at 31 Dec 2021
9,676,850
42,300,197
44,394,123
96,371,170
9,172,421
352,537
105,896,129
Balance as 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
Balance as 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
Also included in tangible fixed assets is a reported increase in the cost of assets of EUR 2,612,708 (
EUR 2,026,125 in 2022) from capitalised own products and services, where the Company capitalises
its own maintenance services and materials used for maintenance. Within this, the material, labour
and purchase of other assets and directly related overheads required to realise the capitalised own
effects are recorded in detail per individual existing fixed assets that were either repaired or
refurbished during the year and during the regular annual overhaul (in the last quarter) in 2023. Key
investments within the in-house maintenance team were: overhaul of the calcination furnace (EUR
0.4 million), improvement of the energy efficiency of the pre-drying (EUR 0.12 million), overhaul of
the unloading tower, the neutralisation basin and the 50.16 A tank (EUR 0.16 million), migration of
the neutralisation process control system (EUR 66 thousand), replacement of the pigment spinning
press (EUR 22 thousand), replacement of the AS1 intermediate absorption tower (EUR 33 thousand),
installation of a third sand mill (EUR 52 thousand), elimination of dust sources (EUR 70 thousand),
installation of vessel 12.08.C (EUR 80 thousand), etc. The remaining difference in the value of the
works to the total is due to the rehabilitation of individual existing assets and the overhaul of the
sulphuric acid and TiO
2
plant; the intervention works carried out increased either the efficiency or
the lifetime of these assets, which are important for the ongoing production process of the carrier
product.
The land also includes easements of EUR 189,679 (EUR 262,020 in 2022). The easements, which
have a final useful life of 20 years or more, relate to the installation 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 2023, the decrease in land relates to the amortisation of the easements
accrued for the financial year 2023 in the amount of EUR 72,342.
No borrowing costs were attributed to property, plant and equipment in 2023. 48.5% of the total
property, plant and equipment in use at 31 December 2022 was fully depreciated (31 December
2022 – 48.1%). The proportion is calculated on the cost of property, plant and equipment, excluding
land. As at 31 December 2023, the Company has outstanding commitments for the purchase of
tangible fixed assets for EUR 2,247,455 (31 December 2022 – EUR 1,660,953).

Graphics
Financial report
158
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 2023, it can be concluded
that both securities have a known market price, but that this price is not indicative of the fair value
of these investments, as the shares have a very low turnover.
The Company has verified the fair value of the assets and has valued the financial assets at fair value
through other comprehensive income based on the return on the shares of the electrical companies
in which the Company has a significant investment and taking into account the PVB of the electrical
industry. The financial assets were reduced (impaired) by the fair value revaluation amounting to
EUR 322 thousand (as at 31 December 2022 - increase of EUR 415 thousand) against fair value
reserves. The Company did not receive any dividends in 2023 (dividends received in 2022 amounted
to EUR 16,025).
In EUR
Group of non-current financial
investments for 2023
Acquisition value
Revaluation
Fair value
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Other investments
2,077,692
2,077,692
519,160
103,927
1,558,531
1,973,765
TOTAL
2,077,692
2,077,692
519,160
103,927
1,558,531
1,973,765
The members of the Management Board and Supervisory Board did not receive 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 investments
In EUR
2023
Other financial investments
ACQUISITION VALUE
Balance as at 31 Dec 2022
2,077,692
Increases during the year
0
Balance as at 31 Dec 2023
2,077,692
REVALUATION
Balance as at 31 Dec 2022
103,927
Increases during the year
415,233
Balance as at 31 Dec 2023
519,161
FAIR VALUE
Balance as at 31 Dec 2022
1,973,765
Balance as at 31 Dec 2023
1,558,531
In EUR
2022
Other financial investments
ACQUISITION VALUE
Balance as at 31 Dec 2021
1,755,026
Increases during the year
322,667
Balance as at 31 Dec 2022
2,077,692
REVALUATION
Balance as at 31 Dec 2021
103,927
Balance as at 31 Dec 2022
103,927
FAIR VALUE
Balance as at 31 Dec 2021
1,651,099
Balance as at 31 Dec 2022
1,973,765

Graphics
Financial report
159
4 Other non-current assets
In EUR
Group of intangible assets for
2023
Acquisition value
Revaluation
Undepreciated value
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Other intangible assets
84,444
68,049
0
0
84,444
68,049
Total
84,444
68,049
0
0
84,444
68,049
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
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 2023, the Company acquired 40,397 allowances (all allowances acquired free of charge from
the State in accordance with the ZVO-1 act). At the beginning of 2023, the Company surrendered
24,002 CO2 emission allowances for 2022 to Arso. The Company did not sell any surplus allowances
in 2023.
The Company retains ownership of the remaining 84,444 allowances. The market (fair) value of one
allowance as at 31 December 2023 was EUR 74.62 (EUR 79.70 as at 31 December 2022) per
allowance (https://belektron.eu/sl/novice), representing a value of EUR 6,301,211 (EUR 5,423,505
as at 31 December 2022). The Company will submit a part of these allowances (19,324) to the
Ministry in April 2024 for the 2023 CO2 emissions, the remainder being the surplus allowances
(Cinkarna Celje d.d. is a net recipient of emission allowances).
5 Deferred tax assets and liabilities
In EUR
Description
Receivables
Payables
2023
2022
2023
2022
Balance as at 1 January
1,420,921
1,950,431
194,446
19,746
Increase during the year
369,724
322,650
174,700
Decrease during the year
217,803
852,160
60,649
0
Total
1,572,842
1,420,921
133,797
194,446
Offsetting
–133,797
–194,446
–133,797
–194,446
Balance as at 31 December
1,439,044
1,226,475
0
0
The decrease in deferred tax assets relates to the consumption of provisions for: jubilee and
retirement bonuses, ecological and other provisions amounting to EUR 217,803. The increase in
deferred tax assets relates to half of the provision made for ecological purposes amounting to EUR
140,871. No deferred tax assets were created for jubilee and retirement bonuses in 2023 as their
creation is fully tax recognised in 2023. The Company also recalculated the balance of the prior
provisions from 19% to a tax rate of 22%, which will be applicable for 2024. The general corporate
tax rate as at 31 December 2023 is 19% and, notwithstanding this, in accordance with Article 64 of
the Law on Reconstruction, Development and Provision of Financial Assets (ZORZFS), tax is payable
at a rate of 22% on the tax base for 2024, 2025, 2026, 2027 and 2028, amounting to EUR 228,853
As at 31 December 2023, the Company reduced the deferred tax liability on investments or their fair
value by EUR 60,649, resulting in a deferred tax liability of EUR 133,797 as at 31 December 2023
(31 December 2022: deferred tax liability on impairment of investments of EUR 194,446). The
Company tested the recoverability of the deferred taxes by reference to a projection of the expected
taxable profits for the period 2024 to 2028.

Graphics
Financial report
160
Changes in the balance of deferred tax assets had a positive impact on the income statement of EUR
151,920. The balance of deferred tax assets as at 31 December is as follows.
In EUR
31/12/2023
31/12/2022
Provisions for environmental purposes
1,290,368
1,130,587
Provisions for post-employment and other long-term benefits
275,464
290,049
Receivables
7,009
285
Total
1,572,841
1,420,921
Liabilities for financial assets at fair value through other comprehensive income
–133,797
–194,446
Total deferred tax assets
1,439,044
1,226,475
6 Inventory
In EUR
Group of inventory
31/12/2023
31/12/2022
Realisable value on
31/12/2023
Materials
32,611,021
45,206,025
32,611,021
Work in progress
2,469,985
3,266,936
2,469,985
Products
18,434,810
24,187,102
21,323,982
Merchandise
31,669
29,786
31,669
Advances made
293,996
64,974
293,996
Total
53,841,480
72,754,823
56,730,652
In the financial year 2023, an additional write-down of EUR 1,182,665 (2022: EUR 332,443) was
made to the value of inventory of materials and supplies due to the revaluation to net realisable
value, obsolescence and unserviceability of inventory of materials and spare parts. Of this, the write-
down of inventory of materials and finished goods due to the August floods amounts to EUR 303,851.
There were no significant stock take differences identified in 2023 and the previous year.
The valuation allowance for obsolescence and unusability of work-in-progress and finished goods
inventory amounted to EUR 1,857 in the current year (EUR 1,443 in 2022) and the reversal of the
valuation allowance for non-movement of inventory in 2023 amounted to EUR 14,828.17 (EUR
33,018 in 2022). The value of finished goods and work in progress inventory decreased by 24%
compared to 2022 due to lower production and increased volume sales of titanium dioxide pigment
in December 2023. No guarantees are pledged against the inventory. The net realisable value of
inventory as at 31 December 2023 is determined by their sales value less costs to sell and exceeds
their carrying amount.
7 Current financial investments
In EUR
Group of current financial
receivables for 2023
Value of investments
Adjustment of investments
Net investments
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Current financial receivables –
treasury bills
38,616,117
0
0
0
38,616,117
0
TOTAL
38,616,117
0
0
0
38,616,117
0
Investments in treasury bills have maturities of between one and six months.
8 Current trade receivables
In EUR
Group of current trade receivables
31/12/2023
31/12/2022
Trade receivables
27,437,194
22,087,040
Other receivables
4,107,814
2,203,503
Total
31,545,008
24,290,543

Graphics
Financial report
161
Current trade receivables
In EUR
Group of current
trade receivables for
2023
Value of receivables
Value adjustment
Net receivables
31/12/2023
31/12/2022
31/12/2023
31/12/2022
31/12/2023
31/12/2022
Customers in the
country
2,841,398
2,947,578
266,985
266,985
2,574,413
2,680,593
Customers abroad
25,012,549
19,407,517
394,858
371,794
24,617,691
19,035,723
Indirect exporters
242,410
368,044
0
0
242,410
368,044
Receivables on
foreign account
2,681
2,681
0
0
2,681
2,681
Total
28,099,037
22,725,820
661,843
638,780
27,437,193
22,087,040
The Company's receivables from customers 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 2023 is EUR 2,327,871 (currently exceeding the agreed insurance limit with certain
customers) and as at 31 December 2022 EUR 465,565.
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
Customers in the
country
2,947,578
4,063,142
266,985
267,017
2,680,593
3,796,125
Customers 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
Other trade receivables
In EUR
Group of other receivables
31/12/2023
31/12/2022
VAT receivable
2,210,850
1,984,953
Subsidy for aid received under the ZPGOPEK act*
1,521,872
0
Receivables from State institutions
77,506
167,293
Receivables from employees
6,771
23,060
Other receivables
290,815
28,197
Total
4,107,814
2,203,503
* A more detailed explanation is provided in Section 21 Other operating income.
The Company has no receivables from members of the Management Board and Supervisory Board.
9 Cash and cash equivalents
In EUR
Group of assets
31/12/2023
31/12/2022
Cash in hand
30
30
Cash in accounts
5,687,775
24,210,068
Short-term deposits at call
10,000,000
21,000,000
Total
15,687,805
45,210,098
Cash is invested with domestic banks and bears interest at a fixed annual rate.

Graphics
Financial report
162
10 Other current assets
In EUR
Description
31/12/2023
31/12/2022
Prepaid expenses
142,307
100,859
VAT on advances received
1,681
32,150
Other
65,040
0
Total
209,028
133,009
11 Capital
In EUR
Capital items
31/12/2023
31/12/2022
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
102,652,061
103,358,966
Fair value reserve
-1,242,486
-809,390
Retained earnings
38,374,703
25,014,391
Total capital
221,230,458
209,010,148
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 2023, the value of the called-up capital amounts to EUR 20,229,770.
The capital reserves may be used under the conditions and for the purposes laid down by law and
amounted to EUR 44,284,976 as at 31 December 2023. They were created by a special regulation in
the course of the ownership transformation of Cinkarna Celje d.d. and did not change in 2023
compared to 2022.
The legal reserves amounted to EUR 16,931,435 as at 31 December 2023 and did not change in
2023.
As at 31 December 2023, the Company holds 264,650 treasury shares (264,650 shares as at 31
December 2022) following the share split of 15 August 2022 in a ratio of 1:10. The Company did not
acquire any treasury shares in 2023.
The reserves for treasury shares as at 31 December 2023, similar to the last day of the previous
year, amount to EUR 4,814,764.
Other reserves on profits increased in 2023 on account of a 50% transfer of current profits to reserves
of EUR 6,326,703 and decreased on account of the decision of the Management Board to transfer
reserves created before 2023 to the balance sheet profit of EUR 7,033,60 in order to ensure a stable
dividend policy in the coming year, and amounted to EUR 102,652,061 as at 31 December 2023.
Fair value reserve
The fair value reserve includes the cost of re-measuring 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

Graphics
Financial report
163
2023
31/12/2022
Increase
Decrease
31/12/2023
Change in reserves arising from the fair value
measurement of investments
1,024,679
0
415,233
609,446
Adjustment to deferred tax surplus
–194,446
0
–60,649
–133,797
Unrealised actuarial gains/losses
–1,639,623
–78,512
0
–1,718,135
Total
–809,390
–78,512
354,584
–1,242,486
The fair value reserve comprises the cumulative change in the fair value of financial assets and post-
employment benefits. The fair value reserve decreased by EUR 78,512 from 2022 due to the
recalculation of post-employment benefits and EUR 415,233 due to the change in fair value of
financial assets, and decreased by deferred tax liabilities of EUR 60,649 and amounted to EUR
-1,242,486 at the end of 2023.
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
Retained earnings
Retained earnings from previous years, amounting to EUR 25,014,391, were increased in 2023 by
the current year's profit of EUR 6,326,704, but not decreased, as a resolution was voted at the
General Meeting of the Company's shareholders held on 14 June 2023 not to use the retained
earnings of EUR 25,014,391 for the purpose of dividend payments, but to keep them undistributed
or retained. The increase in retained earnings also results from the transfer of other reserves from
earnings generated before 2023 amounting to EUR 7,033,608.
Dividend per share
No dividends were paid in 2023.
Basic and diluted earnings per share
In EUR
Items
31/12/2023
31/12/2022
(a) Net profit for the year
12,653,407
43,396,465
(b) Number of shares
8,079,770
8,079,770
(c) Basic earnings per share (a/b)
1.57
5.37
(d) Diluted earnings per share (a/b)
1.57
5.37
Determination of balance sheet profit
In EUR
31/12/2023
31/12/2022
Mandatory use of profits
Net profit
12,653,407
43,396,465
Coverage of losses carried forward
0
0
Creation of statutory reserves
0
0
Profit after statutory application
12,653,407
43,396,465
Other reserves as decided by the Management Board and the
Supervisory Board
-6,326,703
-18,466,232
Residual profit
6,326,703
24,930,232
Decrease in other profit reserves
-7,033,608
0
Determination of balance sheet profit
Residual profit
6,326,703
24,930,232
Transfer from other profit reserves
7,033,608
0
Profit carried forward
25,014,392
84,159
Balance sheet profit
38,374,703
25,014,391

Graphics
Financial report
164
12 Provisions for employee benefits
The Company recognises a provision for jubilee awards and retirement benefits made in accordance
with the provisions of IAS 19 revised. The actuarial calculation is made using the book-entry method
and was carried out by an external chartered actuary. The assumptions used were: company salary
growth of 4.0% (4.7% in 2022), discount rate of 3.51% per annum (discount rate of 4.41% in 2022),
retirement conditions, mortality tables 2000-2002 and turnover of the Company's workforce in 2023
(the assumptions used are the same in 2023 as those used in 2022).
In EUR
Post-employment benefits of employees for 2023
31/12/2023
31/12/2022
Provisions for retirement bonuses
3.101.653
3.204.640
Provisions for jubilee awards
741.870
447.056
Total
3.843.523
3.651.696
In EUR
Post-employment benefits of
employees for 2023
31/12/2022
Formation
Intended use
Release
31/12/2023
Provisions for retirement bonuses
3,204,640
342,712
327,271
118,427
3,101,653
Provisions for jubilee awards
447,056
395,233
79,308
21,111
741,870
Total
3,651,696
737,945
406,580
139,538
3,843,523
In EUR
Post-employment benefits of employees
2023
2022
Balance as at 1 January
3,651,696
4,256,064
Ongoing service costs
197,808
179,825
Interest expenses
142,856
36,000
Utilisation of provisions for benefits
–406,580
–158,426
Staff departures (termination)
–139,538
–314,273
Actuarial deficit/surplus
397,281
–347,494
Balance as at 31 December
3,843,523
3,651,696
In EUR
Post-employment benefits of
employees for 2022
31/12/2021
Formation
Intended use
Release
31/12/2022
Provisions for retirement bonuses
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
Sensitivity analysis
In EUR
Sensitivity analysis 31 Dec 2023
Discount rate
Wage growth
Change in
percentage points
percentage points
Change by
+0.5
–0.5
+0.5
–0.5
Impact on the balance of liabilities
–128,719
+138,788
+138,748
–129,886
In EUR
Sensitivity analysis 31 Dec 2022
Discount rate
Wage growth
Change in
percentage points
percentage points
Change by
+0.5
–0.5
+0.5
–0.5
Impact on the balance of liabilities
–124,376
–134,323
133,461
–124,797

Graphics
Financial report
165
13 Other provisions
Other provisions as at 31 December 2023 represent environmental provisions.
Movement in provisions
In EUR
Provisions 2023
31/12/2022
Formation
Intended use
Reversal
31/12/2023
Environmental provisions
14,816,968
851.245
635,015
800,000
14,233,199
Total
14,816,968
851,245
635,015
800,000
14,233,199
In EUR
Provisions 2022
31/12/2021
Formation
Intended use
Reversal
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
Environmental provisions
For environmental provisions, the primary consideration is whether there is a legal or other basis for
recognising them as a result of past events, and an assessment of any changes in circumstances in
the current year that may affect the preparation of the accounting estimate. The long-term provisions
were re-examined with the assistance of external experts as at 31 December 2023 due to general
inflation, additional works and new circumstances in 2023 (landslide) for their reversal/formation.
All the necessary rehabilitation activities were verified, with the help of various spot measurements
of the terrain and the identification of the appropriate activities and their evaluation by external
geological specialists. Taking into account inflation (based on consumer price inflation and UMAR
estimates for the period 2024-2028), as well as the best estimate of the timing of the implementation
of the activities, which served as the basis for the discounting, the provisions were discounted to
present value with an average discount factor of 2.79, using the yield of a 10-year Slovenian bond
maturing in the period 2024-2028. Additional landslide remediation works are estimated by experts
to be carried out in the period 2024-2025, and at ONOB in 2027 and 2028.
The reasons for the reversal and additional provisioning are set out below, as well as the reasons for
maintaining the provisioning where it is more likely than not that there will be outflows in the future.
I. The provision for the Titanium Dioxide Environmental Investment (change in the method of
disposal of neutralisate) was originally created in June 1994 in the course of the ownership
transformation process. The revalued amount as 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 provision at the end of 2023 is EUR 2.2 million and at the end of 2022
EUR 2.7 million.
II. The rehabilitation of the high embankment barrier at the Za Travnikom waste disposal facility
was originally provisioned in 2011. At that time, the amount was based on the estimated
cost of 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 the
previous 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,
in particular, the network of piezometers for technical observation was expanded and
renewed, and some exploratory boreholes were drilled. Based on the results of the
observation boreholes, the condition of the barrier body was better than estimated at the
time of the provisioning and there was no need for additional provisioning at the end of 2021
and the provisioning was increased by EUR 520 thousand in 2022 with the help of external
contractors. In 2023, during heavy rainfall in early August, a landslide occurred directly under

Graphics
Financial report
166
the barrier, requiring a multi-phase rehabilitation to be carried out in 2024. All other works
for which provision has been made will also be carried out in 2024. The provision was
increased by EUR 792,894 to take account of the above additional provisions made in
previous years and the partial utilisation of the provision, resulting in a provision balance of
EUR 1,637,234 as at 31 December 2023 (EUR 888,133 at the end of 2022). In order to give
a better idea of the reason for the periodic restatement of the long-term provisions, the
following explanations are provided. It is a fact that the barriers at Za Travnikom and
Bukovžlak are constructed as earthen barriers, built of different materials in their
composition, 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. In addition to its own employees, Cinkarna has set
up a permanent project team, which includes experts from the Department of Geotechnics
(KGT) at the Faculty of Civil Engineering and Geodesy 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 non-current
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 well as the materials to be used in the installation. 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 engineer 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 engineer
estimated the timeframe for completion of all the works, and a correction for expected
inflation was taken into account accordingly. We made a similar adjustment for 2023. We
spent EUR 121,755 for rehabilitation purposes and increased the provision by EUR 117,418,
mainly due to the need to rehabilitate the sealing curtain, as the estimates showed that we
had under-reserved the funds for its rehabilitation. Together with the facilities Drainage C1
and the Sealing Curtain, the amount of funds still needed for the rehabilitation of the ONOB
thus amounts to EUR 8,537,531 (at the end of 2022 it amounted to EUR 8,541,868). The
implementation of Drainage C1 together with the Sealing Curtain will be mainly carried out
in 2024 and 2025, and the implementation of the project for the reconstruction of the closed
ONOB will be carried out in 2027 and 2028.
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 earthen barrier is reacting to the effects of natural phenomena. In order to avoid
a critical deterioration of the safety situation, the engineer 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. In 2022, we spent EUR 48,602 of the funds. Based
on new findings and 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 an embankment. This

Graphics
Financial report
167
fact was taken into account by the engineer in the revision of the estimate as at 31 December
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 engineer estimated the timeframe for completion of all the works and took into account
the correction for projected inflation accordingly. Similarly, the engineer made the above
assessment based on the situation as at 31 December 2023, where he concluded that the
drainage of the substantial water from the western flank of the Bukovžlak barrier no longer
needs to be rehabilitated, and therefore, on the basis of this assessment, we are releasing a
provision of EUR 800,000. On the basis of the study "Expert opinion on the condition of the
western flank of the Bukovžlak barrier with a proposal for rehabilitation", UL FGG KGT, Report
E-13-23, June 2023, it was concluded that no special measures are needed for the drainage
of the Bukovžlak barrier's western flank. Instead, the westernmost shaft (JC1) of the
envisaged C1 drainage was designed as a grit chamber to facilitate cleaning of the drainage
system. Thus, the balance of the provision including utilisations of EUR 98,038 as at 31
December 2023 amounts to EUR 1,814,771 (as at 31 December 2022 the balance was EUR
2,712,809).
The Company's Management Board received sufficient information on changed circumstances and
what the uncertainties are in relation to the assumptions used, where there are still some
uncertainties that may lead to future changes in the amounts formed, as in all cases these are
estimates. 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 use of materials which may be subject to loosening, or other
obligations which may arise. At present, there is no need to change the level of the provisions made
as at 31 December 2023, for which we estimate that there is more than a 50% probability of future
outflows.
In EUR
Environmental provisions
2023
Balance as at 31
Dec 2022
Intended use
plan 2023
Formation 2023
Utilisation
2023
Removal 2023
Balance as at 31
Dec 2023
Provisions for the Za
Travnikom landfill
888,133
250,000
792,894
43,794
0
1,637,234
Provisions for the Bukovžlak
landfill (ONOB)
8,541,868
1,500,000
117,418
121,755
0
8,537,531
Provision for the Bukovžlak
high embankment barrier
2,712,809
250,000
-59,067
38,971
800,000
1,814,771
Environmental provision -
Environmental investment in
TiO
2
production
2,674,157
0
0
430,494
0
2,243,663
Total
14,816,968
2,000,000
851,246
635,015
800,000
14,233,199
Given that the provisions under items II-IV were revised, reassessed at the end of 2022 and, as at
the end of 2023, reassessed by external experts on the timing of their implementation, due to the
increase in the price of specific services and materials and new circumstances such as the landslide
caused by the heavy rainfall in August, the Management Board considers that the level of the
provisions is appropriately formulated.
The drawdown of the provision in 2023 is represented by the contractors' costs for the works carried
out amounting to EUR 204,200 and the accrued depreciation of EUR 320, which are charged directly
to the provision (item II, The reversal of EUR 800,000 relates to the part of the work estimated in
the past that is no longer needed in the future, for which the previously earmarked funds are being
released. An additional provisioning of EUR 851,246 (taking into account expected inflation) relates
to the re-verification of the provisioning balance with documentation from the external contractor
Hidrosvet. The external contractors estimate completion of the works within 3 to 4 years. While the
timetable for the works is fixed in advance, the actual execution of the works is subject to change
due to unforeseen events or factors.
In EUR

Graphics
Financial report
168
Environmental provisions 2022
Balance as
at 31 Dec
2021
Intended use
plan 2022
Formation
2022
Utilisation
2022
Removal
2022
Balance as
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 drawdown of the provision 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
to the provision (items II, III and IV of the environmental provision), and the accrued depreciation
of the invested assets amounting to EUR 426,872 (item I of the environmental provision). The
additional provisioning amounting to EUR 3,393,320 (taking into account the foreseen inflation rate)
relates to the re-checking of the balance of the provision with the documentation provided by the
external provider Hidrosvet. The external contractors estimate completion of the works within 3-4
years. While the timetable for the works is fixed in advance, the actual execution of the works is
subject to change due to unforeseen events or factors.
* Remediation 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. 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 claimant MOC (Municipality of Celje), the adoption of the
ZVO-2 act, the failed 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 High Court
(both judgments were delivered 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.
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 that (almost in parallel with the Court's
decision) the ZVO-2 act was adopted, the regulation of which is a reasonable mapping of the
regulation of the ZVO-1 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.

Graphics
Financial report
169
All the circumstances highlighted led to the assessment that the probability of the claims for which
the provision in question was made being substantiated is less than 50% and, as a consequence, the
Company is releasing the provision.
The Management Board of the Company received sufficient information through the MOC claim
obtained for the release of the provision for the elimination of the risks of old burdens 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 future changes in the amounts made, since in all cases it is an
estimation of them. 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 use of materials which may be subject to loosening,
or other commitments.
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 disabled persons.
In EUR
Deferred income
31/12/2023
31/12/2022
Deferred contributions for employment of people with disabilities
780
1,947
Long-term deferred income for equipment
1,345
1,345
Funds received from EU funds
105,499
133,335
Equipment and vehicles acquired free of charge
0
9,013
Emission allowances
65,120
44,074
Subsidies for photovoltaics*
594,670
173,367
Total
767,414
363,054
* In 2023, the Company received subsidies of EUR 431,931 thousand from the solar power plants
installed, representing 20% of the investments in photovoltaics. The funds received will be used in
accordance with the depreciation calculated for each individual solar power plant over its useful life.
In EUR
Deferred income 2023
31/12/2022
Formation
Dedicated use
31/12/2023
Deferred contributions for employment of people with
disabilities
1,947
31,339
32,505
780
Long-term deferred income for equipment
1,345
0
0
1,345
Funds received from EU funds
133,335
0
27,836
105,500
Emission allowances
44,047
40,397
19,324
65,120
Subsidies for photovoltaics
173,367
431,931
10,627
594,670
Equipment and vehicles acquired free of charge
9,013
0
9,013
0
Total
363,054
503,667
99,306
767,414
In EUR
Deferred income 2022
31/12/2021
Formation
Dedicated 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

Graphics
Financial report
170
15 Current financial liabilities
In EUR
Group of liabilities
31/12/2023
31/12/2022
Current financial liabilities - accruals, cessions
100,651
59,392
Current derivative liabilities - forwards
3,041
0
Total
103,692
59,392
Movement in financing liabilities in 2023
In EUR
Balance as at 31 Dec
2022
Monetary changes
Non-monetary changes
Balance as at 31 Dec
2023
Acquisitions/disposals
Assignments, cessions,
interest, forwards
59,392
44,300
0
103,692
Interest
0
–887
887
0
Total
59,392
43,413
887
103,692
Movement in financing liabilities in 2022
In EUR
Balance as at 31 Dec
2021
Monetary changes
Non-monetary changes
Balance as 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
16 Current trade payables
In EUR
Trade payables
31/12/2023
31/12/2022
Payables to suppliers
14,656,554
14,898,860
Other liabilities
3,873,796
4,619,285
Total
18,530,350
19,518,145
In EUR
Group of liabilities
31/12/2023
31/12/2022
Current payables to in-country suppliers
12,215,153
11,372,481
Current payables to suppliers abroad
2,435,198
3,526,380
Current payables for unbilled goods and services
6,203
0
Current payables against advances
407,334
170,164
Current payables to employees
2,059,725
2,602,550
Current payables for payer's contributions
1,005,215
1,326,675
Current payables to government and other institutions
389,631
509,838
Other current liabilities
11,891
10,057
Total
18,530,350
19,518,145
17 Current liabilities arising from contracts with customers
Commitments under contracts with customers arose from contractual commitments to customers for
discounts or volume rebates.
In EUR
Liabilities under contracts with customers
31/12/2023
31/12/2022
Liabilities under contracts with customers
11,351
157,520
Total
11,351
157,520

Graphics
Financial report
171
18 Other current liabilities
Under other current liabilities, the Company recognises current deferred charges or expenses and
VAT on advances.
In EUR
Description
31/12/2023
31/12/2022
Accrued unused annual leave
914,887
797,395
Accrued costs
260,042
150,090
VAT on advances made
16,627
54,766
Other
4,118
1,668
Total
1,195,674
1,003,919
19 Contingent assets and liabilities
In EUR
Description
31/12/2023
31/12/2022
Guarantees given
2,202,183
2,275,179
Forward transactions*
1,867,592
50,953
VISA and Mastercard payment cards
40,000
40,000
Material in finishing and processing
59,726
59,725
Total
4,169,501
2,425,857
*The transaction value is the contractual value of the transaction and fair value measurement is
recognised in the financial receivables and/or financial liabilities accounts (Note E. Financial
Instruments).
The guarantees given represent a liability to Nova kreditna banka Maribor d.d. and UniCredit Bank
d.d. of EUR 2,202,183 in respect of customs and excise duties (EUR 1,030,000) and a performance
guarantee for ARSO's contractual obligations of EUR 1,172,183.
20 Revenue from contracts with customers
Revenue from contracts with customers consists of the sales values of products, merchandise,
materials and services sold during the accounting period. A breakdown of net sales revenue by
business and geographical segment is shown below.
In EUR
2023
2022
Net revenue from contracts with customers for products and services
175,954,207
226,584,095
Net revenue from contracts with customers for goods and materials
510,082
569,021
Total
176,464,289
227,153,116
21 Other operating income
In EUR
Revenue
2023
2022
Revenue from depreciation of assets acquired free of charge
510,795
505,649
Gains on sale and write-down of assets
60,045
7,253
Proceeds from COVID-19 state support
0
34,430
Revenue from government grants – Energy Law
0
300,000
Recoveries of written-off receivables
2,011
0
Compensation received
27,562
23,763
Allowance to cover indirect costs due to the cost of greenhouse gas emissions
in the previous year
277,257
0
Reversal of non-current provisions *
939,538
6,817,354
Subsidies to mitigate energy price increases – ZPGOPEK**
7,609,359
0
Other operating income
28,634
61,471
Total
9,455,201
7,749,919

Graphics
Financial report
172
* The amount of EUR 800,000 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 2023 (see Note 13 – Other provisions).
In EUR
Revenue
2023
2022
Reversal/release of environmental provisions
800,000
6,377,932
Reversal/release of provisions for jubilee and retirement bonuses
139,538
439,422
Total
939,538
6,817,354
** Cinkarna Celje d.d. received EUR 6.1 million or exactly EUR 6,087,487 in subsidy income in 2023
based on the application under the Act Governing Aid to Businesses to Mitigate Impact of Energy
Crisis (ZPGOPEK), which is included in operating income based on the transfers received (80% of the
amount reported in the application), where we estimate that the amount is appropriately included in
operating income. At the time of the application, the Company was entitled to EUR 7,609,359 of
subsidies, i.e. the amount of EUR 1,521,872 million has not yet been received. The Company
recalculated the eligible amount of aid with all known realised and available data and it is expected
or there is a very high degree of certainty that the Company will receive the remaining amount of
subsidy in 2024. Thus, the Company recorded the remaining EUR 1.5 million as operating income
and established a receivable from the State.
Cinkarna Celje d.d., as a good economic operator, as a result of the growing economic crisis due to
the enormous increase in energy prices in 2023, submitted an application for aid under the adopted
ZPGOPEK act on 28 February 2023. The Company applied for special aid for energy-intensive
companies in specific sectors, where it had to comply with the following:
− It is an energy-intensive undertaking (an energy-intensive undertaking is an undertaking
that is exempt from excise duty or has been granted a refund of excise duty paid for energy-
intensive undertakings under the law governing excise duties);
− In 2023, the price of its energy products increased by at least 1,5 times the beneficiary's
average price for 2021;
− Its EBITDA, excluding aid, has decreased by at least 40% over the eligible period compared
to 2021 or is negative;
− It operates in one of the specific NACE code sectors or subsectors.
On the basis of the application, the Company received in 2023 advance payments equal to 80% of
the funds in the application, namely a first payment in March (three instalments of EUR 507,291)
and then an advance payment of EUR 507,291 each month, the last instalment being received on 27
December 2023, for a total amount of EUR 6,087,487.
The Company has deferred the inflows during the year and transferred them to operating income at
the end of the year, together with the difference up to the total amount in the application, as the
Company considers that it fulfils, or has so far fulfilled, all the conditions required under the ZPGOPEK
for obtaining and retaining the aid (income recognition), or considers that the risk of repayment of
the aid is very low, or nil, as confirmed by the evidence and explanations of the fulfilment of the
provisions of the ZPGOPEK for the retention of the aid, as set out below:
1. No profit payments, purchases of own shares or own business holdings were made by the
beneficiary, Cinkarna Celje d.d., which has claimed aid for the economy under this Act, since
the entry into force of this Act in 2023 or for the year 2023.
The Company did not pay out any profit in or for 2023, nor did it purchase any of its own shares on
the basis of the resolution of the General Meeting of 14 June 2023. The 2022 balance sheet profit
was paid out following the resolution of the General Meeting of 13 February 2024, on 23 April 2024.
The majority state-owned shareholders voted in favour of the resolution that the 2022 profit in 2023
should not be distributed or used for the payment of dividends, but should be recorded as a carry-

Graphics
Financial report
173
forward. Similarly, for 2023, when the General Meeting on 14 June 2024 will decide on the
reallocation/distribution of the balance sheet profit for 2023, we expect the majority State-owned
shareholders to act similarly and responsibly. Based on the public announcement by one of the State-
owned owners (SDH), which has published on its website https://www.sdh.si/ a commitment not to
support the payment of dividends in 2023 in the cases mentioned above, we expect that the majority
State-owned owners will take the prudent decision and behave as good businessmen and vote to
transfer the remainder of the net profit in 2023 to reserves and not to distribute it.
On the basis of this, the board can conclude that the remaining 50% of the net profit of the financial
year 2023 will not be shared at the June 2024 general meeting for 2023 or the dividends for the
financial year 2023 will not be paid out in 2024 or later, and thus the aid from this title will not be
returned.
2. The beneficiary, Cinkarna Celje d.d., which has claimed aid under this Act, did not pay any
management bonuses or part of the salaries for managerial performance to the management
as of the entry into force of this Act in 2023 or for the year 2023, accordingly.
No management bonus and no 2022 performance salary were paid to the members of the
Management Board in 2023.
3. The time-limit for transmitting the information referred to in the third, fourth and fifth
paragraphs of this Article to the competent authority was complied with.
Cinkarna Celje d.d. reported realised data to SPIRIT Slovenia on time, for the first time by 31 July
2023 for the period January-June 2023 and for 2021, and by 31 January 2024 for the second half of
2023.
4. The Company meets the following other conditions:
− It is an energy-intensive undertaking (it is exempt from excise duty and has been entitled to
a refund of excise duty paid for energy-intensive undertakings under the law governing
excise duties). For 2023, the calculation of the energy intensity is equal to 12%;
− The price of its energy products increased in 2023 by at least 1.5 times the beneficiary's
average price in 2021. The increase in the average price of electricity compared to 2021 was
more than 1.5 times in 2021; for natural gas, the Company did not fulfil the condition for
obtaining the aid;
− Its EBITDA, excluding aid, decreased by 52% in the eligible period compared to 2021
(statutory condition of at least 40% EBITDA decrease);
− Its EBITDA including aid, over the eligible period, is 63% of its EBITDA in 2021 (this
percentage must not exceed 70% of the EBITDA generated in 2021 according to the Act).
22 Operating expenses
Operating expenses
In EUR
2023
2022
Cost of materials and goods sold
296,838
200,613
Cost of materials
106,375,957
134,953,778
Cost of services
16,047,941
16,229,210
Labour costs
30,656,494
29,483,416
Depreciation
12,355,367
12,150,684
Other operating expenses
3,909,344
5,264,418
Impairments and write-offs of trade receivables
25,096
1,553
Total
169,667,037
198,283,671
Other operating expenses include the cost of making non-current environmental provisions of EUR
851,246 (EUR 3,393,314 in 2022), as the Company's management assessed, on the basis of evidence

Graphics
Financial report
174
and re-examination, that there were reasons to make additional provisions in 2023 (see Note 13 -
Other provisions).
Research and development costs in 2023 amount to EUR 270,387, compared to EUR 233,759 in 2022.
Depreciation and amortisation
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
Description
2023
2022
Depreciation
− Intangible assets
244,677
209,123
− Easements
72,342
72,342
− Buildings
3,399,172
3,271,577
− Production equipment
8,634,426
8,592,476
− Other equipment
4,751
5,166
TOTAL
12,355,367
12,150,684
Labour costs
In EUR
Labour costs
2023
2022
Wages and reimbursements
22,408,797
20,807,538
Social security contributions
3,706,668
3,718,924
Expenses reimbursements and other employee benefits
4,121,862
4,529,314
Supplementary pension insurance
419,167
427,640
Total
30,656,494
29,483,416
Labour costs include accrued liabilities to employees under the Company's collective agreement and
under individual employee contracts, reimbursements of work-related expenses in accordance with
the collective agreement. Work-related remuneration costs do not include food costs to the extent
that they relate to the cost of preparing food in the Company's own canteen. These costs amount to
EUR 1,037,076 in 2023 (EUR 978,237 in 2022). The costs are shown according to their substance
and purpose, i.e. between the costs of materials and services consumed, labour costs, depreciation
(amortisation) and other operating expenses. The Company accounted for unused annual leave
entitlement in accordance with IAS 19. The Company is registered in the register of pension plans
as the employer sponsoring the pension plan designated PNMZ K, which is implemented by the
pension fund Modri krovni pokojninski sklad with the administrator Modra zavarovalnica. In 2023,
the Company earmarked EUR 419,167 (2022: EUR 427,640) for supplementary pension insurance.
As at 31 December 2023, the Company employed 742 persons. The average number of employees
was 754 and the average number based on accrued hours was 712.
The Company also incurred costs for services not treated as labour costs in 2023 in respect of labour
brokerage agencies under labour brokerage contracts of EUR 729,906 (2022: EUR 788,002). The
number of employees was 25.3 (2022: 27.7), taking into account the number of hours worked under
these contracts.

Graphics
Financial report
175
Other operating expenses
In EUR
Other operating expenses
2023
2022
Provisioning for the environment
851,245
3,393,314
Environmental fees and refunds
427,275
393,070
Awards to students and trainees
247,804
225,487
Building land use allowance
565,939
562,120
Revaluation of inventory of materials and goods*
1,182,665
332,443
Loss on sale (disposal) of fixed assets
234,944
143,377
Other costs and expenses
399,472
214,609
Total
3,909,344
5,264,418
*On 5 August 2023, Slovenia was struck by floods, which affected the Savinjska region, where our
Kemija Mozirje business unit operates. Finished products, raw materials and production materials
were flooded. Write-downs and impairments of flooded materials amount to EUR 304,726.
The audit of the financial statements of Cinkarna Celje d.d. for 2023 was performed by Ernst & Young
Revizija d.o.o. The contract value for the agreed audit services amounted to EUR 29,800, plus VAT
and travel expenses. Ernst & Young also carried out the audit of the verification of the electronic
form of the 2022-ESEF financial statements (EUR 2,300) and the audit of the 2023 Remuneration
Report (EUR 3,100) in 2024 for the 2023 financial year. Other expenses mainly consists of losses on
the settlement of reported claims and compensation paid to individuals.
23 Financial income and expenses
In EUR
2023
2022
Net exchange differences
105,125
0
Interest income
1,121,471
20,235
Dividend income
0
16,025
Total financial income
1,226,596
36,259
Net exchange differences
0
–457,614
Interest expense
–887
–2,715
Interest on provisions for severance grants and jubilee bonuses
–142,856
–36,000
Total financial expenses
–143,743
–496,329
Net financial result
1,082,853
–460,070
me consists of interest received on investments and receivables, income from long-term 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 Regulation 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 2023 is reduced by deductions for investment in research and
development, employment of disabled persons, voluntary supplementary pension insurance,
investment in equipment, and donations.

Graphics
Financial report
176
In EUR
2023
2022
Tax levied
2,623,064
10,015,959
Total income tax
2,623,064
10,015,959
Change in tax base due to change to a new method of accounting,
changes in accounting policies, corrections of errors and revaluations
–14,917
–42,246
Tax on increase in expenses
-228,698
–11,718
Tax on unrecognised expenses
250,063
213,617
Tax on tax credits
-1,463,776
–821,480
Tax on income reducing the tax base and other
–13,541
–35,024
Income on which withholding tax was deducted
3,396
0
Total income tax
1,152,196
9,319,109
Effective tax rate
8.3%
17.7%
The effective tax rate, calculated as the ratio of tax expense to accounting profit, is 8.3% in 2023
and 17.7% in 2022. The changes in deferred taxes in 2023 relate to additional provisioning/utilisation
of environmental, jubilee and retirement bonuses, and an increase due to the recalculation of the
balance from a tax rate of 19% to 22%.
The Company recorded an increase in deferred tax assets due to temporary differences. The increase
in 2023 relates to the difference between the following items:
In EUR
Description
2023
2022
Consumption of provisions
–217,804
–738,232
Reversal of valuation allowances on receivables
0
–113,928
Conversion/corporate income tax rate (19 > 22)
228,853
0
Provisions made
140,871
322,365
Allowance for receivables (investments) established
0
285
Total
151,920
–529,510
25 Impact of climate change on the financial statements
Cinkarna Celje d.d. discloses the effects of climate change and the transition to sustainable and
peaceful change in its 2023 financial statements, with particular emphasis on the discussion of
management's estimates and significant judgements in accordance with IAS 1 (IAS 1 requires
disclosure of information about assumptions and other key sources of estimation uncertainty at the
end of the reporting period that have a significant risk of causing an adjustment to the carrying
amounts of assets and liabilities).
Management estimates and judgements
The key estimates and accounting judgements made by the management of Cinkarna Celje d.d. in
the preparation of the annual financial statements for 2023 in relation to the expected impacts of
climate change and the energy transition are described below.
In relation to the effects of climate change related impacts, the Company considers that climate
change is an implicit element in the methodologies and models used to make estimates in the
valuation and/or measurement of certain accounting items. In addition, the Company took into
account the impact of climate change in the significant judgements made by its management. In this
respect, the main items included in the financial statements as at 31 December 2023 that are affected
by the use of management estimates and judgements relate to the impairment assessment of non-
financial and energy transition assets and liabilities.

Graphics
Financial report
177
The reference to estimates and judgements used by the management in relation to climate change
(taking into account their significance in the context of financial reporting) is as follows:
− Emphasis on estimating the expected cash flows from certain assets (Note 2 H Impairment
of non-financial assets).
− Focus on the effects under the Paris Agreement and their impact on the estimation of the
useful lives of the assets concerned (Note Determining the useful lives of assets for assets).
The useful lives of tangible fixed assets are regularly reviewed in light of the transition to all-electric
vehicles and sustainable green investments (solar power plants, battery storage, etc.). There was no
need to adjust the useful lives of the Company's assets in use.
Climate change disclosures
The transition to net zero is underway worldwide and the processes of decarbonisation and
electrification of the global economy are crucial to avoid serious consequences of a temperature
increase of more than 1.5 °C.
Verification of funds
As described in Note 2 – Tangible fixed assets, the cash flow projections on a cash-generating unit
basis used in the impairment tests for non-current assets are based on the best available forward-
looking information and reflect the Company's 2024-2028 investment plans to maintain its business
capacity, prepared based on a range of economic conditions that could exist in the near future in
relation to climate change and energy transition. The projections took into account expected
electricity price effects resulting from the start-up of photovoltaics and new renewable generation
installations, the evolution of gas, oil and emission allowance prices, and expected demand.
Transition risk – GHG emissions
Cinkarna Celje's measures to limit the impacts of transition risk include (described in more detail in
the business section of the annual report):
− Scope 1 emissions reduction (from CO
2
emissions): the Company's innovation capacity and
technological know-how enable it to offer cleaner and more sustainable solutions to reduce
its industrial emissions. The Company focuses on technologies for climate solutions and the
energy transition;
− Scope 2 reduction mainly through the use of renewable electricity: the installation of solar
power plants will reduce Scope 2 emissions. Investments in renewable technology in 2023
amounted to EUR 3.2 million, which will facilitate the transition as the emission reductions
will be managed with renewable energy from the Company's own solar power plants (current
self-supply represents 6% of total energy use, target is 10% by 2030).
Emission allowances for CO
2
emissions under the EU Emissions Trading Scheme (EU ETS) are
reflected in the balance sheet at their carrying amount of EUR 1 and are valued under other non-
current assets (Note 4 - Other non-current assets). Accrued liabilities for CO
2
emissions required to
cover emissions to date are also valued at EUR 1. The allowances are acquired by the State to cover
own emissions and can be retained to cover emissions in future years. The allowances acquired
exceed their surrender, which will be realised until the end of 2025. A decision was issued for the
acquisition of free allowances for the period 2021-2025, which allocated to the Company a total free
quantity of 201,985 emission allowances (see table below). The share of free allowances (quotas) is
expected to decrease significantly in the future.

Graphics
Financial report
178
Table: Emission allowance balances by year
2021
2022
2023
2024
2025
Balance as at 1 January
25,629
53,028
68,049
84,444
105,517
Acquisition (current decision)
40,399
40,397
40,397
40,397
40,397
Surrender/Sale*
13,000
25,376
24,002
19,324
25,000*
Balance as at 31 December
53,028
68,049
84,444
105,517
120,914
* Estimate.
The free emission quota for Cinkarna Celje will expire in 2025. After 2025, the Company will no
longer be able to acquire allowances, but it is not definitively known whether it will be able to use
the surplus for emissions in the following years or whether it will have to buy green allowances. As
the future impacts related to emission allowances from 2026 onwards cannot be measured or
estimated by the Company, the impact of the transition on the financial statements as at 31
December 2023 cannot be estimated with certainty, and there are several possible scenarios.
Assets and climate risks
The Company's main assets affecting its CO2 footprint are those used for the production of its core
business (see section 2 Tangible fixed assets). Assets are depreciated over their useful lives, which
limits the risk of impairment. For decarbonisation of existing production units, the following solutions
will only be implemented in the coming years (2024-2028): the use of low-emission automotive
assets, battery storage and electric motors. As these assets are not yet electrified, we need to make
the transition investments identified in the Company's 2024-2028 strategy, which amount to EUR 40
million.
An impairment test of the recoverable amount as at 31 December 2023 was performed (see Note 2
Tangible assets). This reassessment did not result in any impairment of the assets. The main tangible
assets of the Company that are exposed to climate change and energy transition risk are:
− motorised vehicles,
− generating electricity from their own solar power plants,
− replacing existing electric motors.
In 2023, the Company has not yet procured any e-drive vehicles or battery storage (foreseen in the
2024-2028 strategy). The motorised vehicles, electric motors and other devices to be replaced,
including all other assets, are mostly depreciated as of 31 December 2023, or will be fully depreciated
at the time of their replacement due to the green transition, and have no present value. Similarly,
any further replacements will have no impact on the write-down of present value or the
implementation of impairment, as those assets that no longer have present value and are obsolete
will be replaced.
Renewable energy assets – photovoltaics
As at 31 December 2023, the carrying amount of these fixed assets amounted to EUR 4.2 million.
The main perceived risk is the potential negative future development of solar sources, which are key
variables in the success of this business sector. The Company considers that the opportunities arising
from the decarbonisation of the global economy (growth of renewable energy, investment in smart
grids, electrification of transport, green hydrogen, etc.) outweigh the risks.
Climate change impacts
The potential impact of future regulatory requirements, in particular the related shift to electric
mobility (replacement of the current fleet with e-vehicles and installed charging stations charged
from already installed solar power plants – the latter currently covering 6% of own energy needs,
the target is 10% self-supply by 2030), was taken into account in the preparation of the financial

Graphics
Financial report
179
statements, in particular the five-year strategic plan, and thus the derivation of future cash flows for
impairment testing.
Exposure to climate risks
Given its geographical location, the Company may potentially be exposed to physical risks related to
climate change, such as floods (2023 flood expenses are disclosed in section 22 Operating expenses),
heat waves, fires and droughts. As at 31 December 2023, the carrying amount of these assets is
EUR 104 million (EUR 105.9 million in 2022), as disclosed in Note 2 – Tangible fixed assets. There
are no impairment needs.
Amortisation and other impairment losses
Climate-related matters are also relevant for consideration in light of IAS 16 and IAS 38 because
they may result in potential changes in the amount of depreciation or amortisation recognised in the
current period or future periods. Therefore, because some assets may become obsolete, unavailable
or subject to regulatory restrictions due to climate change, the estimated residual (terminal) value
and expected useful life of the assets are potentially affected. There is no change in the estimated
residual (terminal) value and expected useful life of assets, and hence the depreciation charged, as
a result of the transition.
The business forecasts for the period 2024-2028 with calculated EBITDA margin and CAPEX also
include the impact of energy prices, photovoltaics and take into account energy efficiency through
energy saving equipment and energy savings.
The potential impacts of transition risk were analysed in the context of the closure of the 2023
financial statements on the basis of the facts and assumptions set out above. No significant impact
was identified, either on the useful life, on the value of the assets, on the customer portfolio, on the
cash flows generated by the existing activities or on the necessary provisions for risks and costs.
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 balances as at 31 December 2023 and 31 December 2022. 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 2022, together with the
supplementary information necessary to adjust the income and expenses and to break down the
significant items appropriately. Theoretical contingent items are not shown, but 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

Graphics
Financial report
180
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 excellent). The following tables show financial
and operational liabilities by maturity.
Maturity of trade payables as at 31 December 2023
In EUR
Carrying amount
Contractual cash flows
Total
Up to half a year
Payables to suppliers net of advances
14,656,554
14,656,554
14,656,554
Commitments under contracts with
customer net of advances
11,351
11,351
11,351
Other liabilities
5,069,470
5,69,470
5,069,470
Total
19,737,375
19,737,375
19,737,375
Maturity of trade payables 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
customer net of advances
157,520
157,520
157,520
Other liabilities
7,990,365
7,990,365
7,990,365
Maturity of financial liabilities as at 31 December 2023
Carrying amount
Contractual cash flows
Total
Up to half a year
Assignments, cessions
100,651
100,651
100,651
Fair value of forward transactions
3,041
3,041
3,041
Total
103,692
103,692
103,692
Maturity of financial liabilities as at 31 December 2022
Carrying amount
Contractual cash flows
Total
Up to half a year
Assignments, cessions
59,307
59,307
59,307
Fair value of forward transactions
85
85
85
Total
59,392
59,392
59,392
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 non-current financial liabilities 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 favourable financial situation, the Company enters into deposit agreements with banks at
positive interest rates in order to increase its financial income. At the balance sheet date of 31
December 2023, deposits with a maturity of up to one year amount to EUR 10 million. Also, in order

Graphics
Financial report
181
to use excess cash efficiently, the Company invests it in treasury bills with a short-term maturity,
which amount to EUR 38.6 million at the last day of 2023.
A decrease of 1% in the bank interest rate would result in an increase of financial expenses of EUR
100 thousand, while an increase of 1% would result in an increase of financial income of EUR 100
thousand on an annual basis.
Credit risk
The key credit risk of Cinkarna Celje d.d. is the risk that customers will not settle their obligations
when they fall due.
The risk is limited as we operate mainly with long-standing partners, which are often well-known
traditional European industrial companies with a high credit rating. In recent years, we have
perceived that payment discipline in Slovenia, the Balkans and Eastern Europe has been relatively
poor, but we do not expect any further problems in this geographic area in the coming period, or
the risk potential has been significantly reduced. 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-Zinc Sheet programme, the Anti-Corrosion Coatings
programme and the Building Materials programme, the exposure to credit risk was significantly
reduced, as evidenced by the maturity of receivables and the fact that we have virtually no further
allowance for doubtful or defaulted receivables from customers.
Cinkarna Celje has for a number of years been carrying out internal credit control for each individual
customer, to whom it has set 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 customer, the customer's payment
discipline and the publication on the Ajpes website 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 customer 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 date of the due date until the date of payment. The process of regular monitoring and
control of the portfolio of trade receivables is a constant feature of the Company, resulting in a small
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
31/12/2023
31/12/2022
Financial investments
3
1,558,531
1,973,765
Financial receivables
7
38,616,117
0
Trade receivables
8
27,437,194
22,087,040
Cash and cash equivalents
9
15,687,805
45,210,098
Total
83,299,647
69,270,903
At the balance sheet cut-off date of 31 December 2023, in addition to the EUR 10 million of cash
on deposit, the Company has an additional EUR 5.7 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.

Graphics
Financial report
182
The Company has a healthy trade receivables structure, as can be seen in the table of trade
receivables by maturity and in the table of the movement in the valuation allowance for current
trade receivables.
Movement in valuation allowances on current trade receivables
In EUR
2023
Balance as at
31 Dec. 2022
Valuation allowance
formed 2023
Write-downs of valuation
allowances of prior years
Written-off
receivables paid
Balance as at
31 Dec. 2023
Customers in country
266,985
0
0
0
266,985
Customers abroad
371,794
25,075
0
2,011
394,858
Total
638,780
25,075
0
2,011
661,844
In EUR
2022
Balance as at
31 Dec. 2021
Valuation allowance
Write-downs of valuation
Balance as at
31 Dec. 2022
foemr 2022
allowances of prior years
Customers in country
267,017
0
32
266,985
Customers abroad
381,437
1,500
11,142
371,794
Total
648,454
1,500
11,174
638,780
Trade receivables by maturity
In EUR
Group of receivables by maturity
Gross value
31/12/2023
Adjustment
31/12/2023
Gross value
31/12/2022
Adjustment
31/12/2022
Not past due
24,024,487
16,944
19,743,148
15,763
Past due under 15 days
2,913,989
2,050
1,960,633
1,569
Past due from 16 to 60 days
432,721
1,180
345,946
1,633
Past due from 61 to 180 days
109,582
23,954
56,335
56
Past due over 180 days
618,259
617,716
619,758
619,759
Total
28,099,038
661,844
22,725,819
638,779
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
All trade receivables are secured with an external institution as from 1 June 2021. As at 31 December
2023, 88% of the receivables are insured by an external institution (Coface PKZ d.d.) (95.4% at the
end of 2022), 3.5% of the receivables are insured by another form of insurance (letter of credit,
advance) (2.5% at the end of 2022) and only 8.5% of the total receivables are uninsured (3.5% at
the end of 2022). Unsecured receivables are mainly from regular customers who have secured
receivables but have exceeded the collateral limit, where we estimate that there is no risk of default.
The Company determines the concentration of receivables using IT tools and the limits entered in
the system. The receivables monitoring information system allows us to monitor the collateralisation
of receivables on an ongoing basis, as the system is updated on a daily basis according to changes
in the type of collateral and changes in the credit limits. At the end of the year, 6 titanium dioxide
customers from the European Union account for 32% (in 2022 these 6 customers accounted for
35%) 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.

Graphics
Financial report
183
Currency risk
Cinkarna Celje d.d. buys 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 of
the 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 evolution and outlook for the EUR/USD currency pair. In principle, 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.
Exposure to foreign exchange rate risk
In EUR
31/12/2023
31/12/2022
EUR*
USD
EUR*
USD
Financial assets at fair value through other
comprehensive income
1,558,531
0
1,973,765
0
Current financial receivables
38,616,117
0
0
0
Trade receivables
26,386,651
1,160,850
21,673,232
413,838
Advances given
301,333
0
1,168,851
0
Cash and cash equivalents
15,687,805
0
45,210,098
0
Current financial liabilities
–103,692
0
–59,392
0
Current trade payables
–14,647,822
–9,649
–19,450,525
–67,620
Statement of financial position exposure (net)
67,798,922
1,151,201
50,516,029
346,218
* 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 at 31 December and is equal to the European Central
Bank's reference rate of 1 national currency for EUR 1 at 31 December 2023 of 1.10500 and at 31
December 2022 of 1.0666.
Sensitivity analysis
A 1% change in the value of the USD against the EUR as at 31 December 2023 and 31 December
2022 would change the 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 balance of receivables and payables denominated in dollars.
In EUR
31/12/2023
31/12/2022
USD currency change
1 %
–1 %
1 %
–1 %
Impact on profit before tax
12,721
–12,721
3,693
–3,693
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.

Graphics
Financial report
184
By managing and adjusting its capital structure, Cinkarna Celje d.d. aims to keep pace with changes
in the economic environment. It pays dividends in accordance with the revised dividend policy
adopted at the December 2022 Supervisory Board meeting. The Company has no specific employee
ownership targets and no share option programme. There were no changes in the way the capital is
managed in 2022 and 2023. To control capital, the Company uses a leverage ratio, 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.
In EUR
31/12/2023
31/12/2022
Financial liabilities
103,692
59,392
Trade and other current liabilities
19,737,375
23,046,745
Cash and cash equivalents
–15,687,805
45,210,098
Net indebtedness
4,153,262
–22,103,961
Capital
221,230,458
209,010,148
Capital and net indebtedness
225,383,721
186,906,187
Leverage ratio
2 %
–12 %
IX. FAIR VALUE
In EUR
31/12/2023
31/12/2022
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets at fair value through other
comprehensive income
1,558,531
1,558,531
1,973,765
1,973,765
Current financial receivables
38,616,117
38,616,117
0
0
Trade receivables
27,437,194
27,437,194
22,087,040
22,087,040
Cash and cash equivalents
15,687,805
15,687,805
45,210,098
45,210,098
Financial liabilities
–103,692
–103,692
–59,392
–59,392
Trade payables
–14,656,554
–14,656,554
–14,898,860
–14,898,860
Payables under contracts with customer
–11,351
–11,351
–157,520
–157,520
Total
68,528,050
68,528,050
54,155,131
54,155,131
Investments are classified into three groups based on the fair value calculation:
‒ Asset class 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 are not readily available.
In EUR
Fair value of assets
31/12/2023
31/12/2022
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Financial assets at fair
value through other
comprehensive income
0
1,558,531
0
1,558,531
0
1,973,765
0
1,973,765
Total assets measured at
fair value
0
1,558,531
0
1,558,531
0
1,973,765
0
1,973,765
Assets for which fair
value is disclosed
Current financial
receivables
0
0
38,616,117
38,616,117
Trade receivables
0
0
27,437,194
27,437,194
0
0
22,087,040
22,087,040
Cash and cash
equivalents
0
0
15,687,805
15,687,805
0
0
45,210,098
45,210,098
Total assets for which fair
value is disclosed
0
0
81,741,116
81,741,116
0
0
67,297,138
67,297,138
Total
0
1,558,531
81,741,116
83,299,647
0
1,973,765
67,297,138
69,270,903

Graphics
Financial report
185
In EUR
Fair value of liabilities
31/12/2023
31/12/2022
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Financial liabilities
0
0
103,692
103,692
0
0
59,392
59,392
Trade payables
0
0
14,656,554
14,656,554
0
0
14,898,860
14,898,860
Liabilities under contracts
with customer
0
0
11,351
11,351
0
0
157,520
157,520
Total liabilities for which
fair value is disclosed
0
0
14,771,597
14,771,597
0
0
15,115,772
15,115,772
The assumptions used to determine the fair value of investments and other items are set out in the
introductory notes in section III. Significant accounting policies.
X. RELATED PARTY TRANSACTIONS – INFORMATION ON GROUPS OF PERSONS
Management's participation in capital
At the end of 2023 and 2022, 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.
31/12/2023, 31/12/2022
Number of shares
Share in capital (%)
Nikolaja Podgoršek Selič
1,860
0.023
Gross remuneration of groups of persons
In EUR
2023
2022
Members of the Management Board
578,070
661,946
Members of the Supervisory Board
152,109
152,540
Total gross remuneration of groups of persons
730,180
814,486
Employees on the basis of contracts not covered by the tariff part of the collective
agreement
3,073,418
3,134,933
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
3,803,597
3,949,419
Remuneration of the members of the Management Board in 2023
In EUR
Name and surname
Function
(President,
Member)
Fixed
remuneration –
gross (1)
Variable remuneration –
gross based on
quantitative criteria
Bonuses
Other
remuneration
Total gross
Aleš Skok
President
296,911
0
7,473
2,694
307,077
Nikolaja Podgoršek Selič
Deputy
President
236,579
0
8,030
2,694
247,303
Filip Koželnik
Member
18,642
0
2,355
2,694
23,691
Total
552,132
0
17,858
8,081
578,070
No variable remuneration or performance-related payments were made to members of the
Management Board in 2023 for the 2022 financial year.

Graphics
Financial report
186
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
remuneration
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
Remuneration of the members of the Supervisory Board in 2023
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
remuneration
Mario Gobbo
SB Member + SB President +
HR Chair
28,125
1,375
29,500
15,061
44,561
Luka Gaberščik
SM Member + SB Deputy
President + HR Member
20,250
1,375
21,625
277
21,902
David Kastelic
SB Member + AC Chair
20,625
2,255
22,880
519
23,399
Mitja Svoljšak
SB Member
18,750
825
19,575
283
19,858
Jože Koštomaj
SB Member + AC Member
18,750
2,255
21,005
0
21,005
Aleš Stevanovič
(from 8 Mar 2023)
SB Member + AC Member
10,968
1,100
12,068
0
12,068
Dušan Mestinšek
(until 8 Mar 2023)
SB Member + AC Member
5,040
275
5,315
0
5,315
Gregor Korošec
External Member
0
4,000
4,000
0
4,000
Total
122,508
13,460
135,968
16,141
152,109
SB = Supervisory Board
AC = Audit Committee
HR = Human Resources Committee
Remuneration of the members of the Supervisory Board 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
expenses
Total
remuneration
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
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 commuting expenses and meals during work.

Graphics
Financial report
187
Significant events after the end of the financial period
The Company recorded two events which have no impact on the financial statements as at 31
December 2023.
On 13 February 2024, an Extraordinary General Meeting was held at the registered office of Cinkarna
Celje to decide on the distribution of the 2022 balance sheet profit, at which the following resolution
was adopted:
The balance sheet profit according to the audited accounts of the Company as at 31 December 2022
amounts to EUR 25,014,391.39, of which:
− The unallocated balance sheet profit, which was built up from profits generated in previous
years up to and including 2021, amounts to EUR 84,158.59;
− The balance sheet profit, which was generated from profits made in 2022, amounts to EUR
24,930,232.80.
The balance sheet profit of EUR 25,014,391.39 is used for the following purposes:
− Part of the balance sheet profit of EUR 25,008,384.00 (not including the profit for 2023) is
used to pay a gross dividend of EUR 3.20 per share,
− The remainder of the balance-sheet profit of EUR 6,007.39 remains unallocated.
The Company will pay dividends on 23 February 2024 to shareholders registered with the KDD on 22
February 2024.
Mr Mitja Svoljšak resigned from the Supervisory Board with effect from 28 February 2024.
Other than these two events, there were no other events in 2024 that would have an impact on the
financial statements as at 31 December 2023 or require additional disclosures to the financial
statements.
Graphics
Financial report
188
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 4 April 2024.
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 Board –
Head of Accounting
Works Director
Filip KOŽELNIK,
master of business studies
mag. Karmen FUJS,
univ. dipl. in econ.
Graphics
Financial report
189
Ownership structure
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 Company's treasury stock at the end of the period
comprised 264,650 shares (or 3.28% of the total issue). The number of shareholders at the end of
the period was 2,628. The shareholding structure at the end of the period is shown in the table below.
Shareholding 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
349,825
4.33
TR5 d.o.o
339,380
4.20
Own shares
264,650
3.28
KRITNI SKLAD PRVEGA POKOJNINSKEGA SKLADA
167,050
2.07
RAIFFEISEN BANK AUSTRIA D.D. – FID
158,040
1.96
NLB SKLADI - SLOVENIJA MEŠANI
118,983
1.47
CITIBANK N.A. – FID
111,960
1.39
TINFIN d.o.o.
82,000
1.01
Erste group bank AG – client
53,115
0.66
Internal shareholders – FO
56,767
0.70
External shareholders – FO
1,952,506
24.17
Others
821,324
10.15
Graphics
GRI
190
Reporting indicators according to GRI standards
Application Statement: Cinkarna Celje d.d. reported in accordance with GRI Standards for the period
1 January 2023 to 31 December 2023.
GRI 1 in use: Foundations 2021
Relevant GRI industry standards: there are no adopted industry standards in the period of this report
GRI for the chemicals sector.
Table: GRI indicators
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
General disclosures
2-1
Information about the
organisation
16-17
A grey cell indicates that the reasons
for omission are not admissible for
this disclosure or that the GRI
industry standard reference number
is not available.
2-2
Entities involved in the
organisation's sustainability
reporting
73
2-3
Reporting period, frequency and
contact point
73
2-4
Recurrent information
73, 85, 90,
94, 104
2-5
External control
12-13
2-6
Activities, value chain and other
business relationships
18-20
2-7
Employees
105-108
2-8
Workers who are not employees
106, 108
2-9
Structure and composition of
management and governance
17, 22-23
2-10
Appointment and selection of
the highest governance and
management body
22-23
2-11
Chairperson of the highest
governance body
22-23
2-12
Role of the highest governance
body in the control of the
management of influence
28-29
2-13
Delegation of responsibility for
the management of influence
28-29
2-14
Role of the highest governance
body in sustainability reporting
9, 73
2-15
Conflict of interest
22, 70
2-16
Communicating critical concerns
25, 82
2-17
Collective knowledge of the
highest governance body
22
2-18
Evaluation of the work of the
highest governance body
11, 29
No
assessment
of
sustainability
performance.
2-19
Remuneration policies
24, 110
2-20
Remuneration setting process
24, 110
Graphics
GRI
191
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
2-21
Total annual compensation rate
/
Not
material
2-22
Sustainable development
strategy statement
30-31, 38,
72-73
2-23
Commitments in line with the
organisation's policies
25-26, 81-82
2-24
Incorporation of commitments
in line with the organisation's
policies
25-26, 81-82
2-25
Processes to address negative
impacts
69-71
2-26
Mechanisms for seeking advice
and raising concerns
25, 82
2-27
Compliance with legislation and
regulations
24-25, 26-
27, 70-71,
83, 123, 131
2-28
Membership of associations
76
2-29
Approach to stakeholder
involvement
77-78
2-30
Collective agreements
108
Important topics
3-1
Process for identifying
important topics
79-80
A grey cell indicates that the reasons
for omission are not admissible for
this disclosure or that the GRI
industry standard reference number
is not available.
3-2
List of important topics
79-80
3-3
Managing important topics
24, 79, 81-
82, 105
Economic performance
201-1
Direct economic value created
and distributed
6-7, 44-46
201-2
Financial implications and other
risks and opportunities of
climate change
61-62, 177-
181
201-3
Supplementary pension plan
and other additional benefits
109, 175
201-4
Financial aid received from the
State
46, 149, 172-
174
Market presence
202-1
Ratio of the standard basic
wage level to the national
minimum wage
108
202-2
Proportion of top management
from local background
22
Indirect economic impacts
203-1
Investment in infrastructure
and support services
40-41, 87-
88, 158
203-2
Significant indirect economic
impacts
119-121
Procurement practices
204-1
Share of purchases from local
suppliers
118
Anti-corruption
205-1
Activities with corruption risks
26, 67-68
Graphics
GRI
192
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
205-2
Communication on anti-
corruption policies and
procedures
25, 26
205-3
Corruption incidents and actions
taken
26
Anti-competitive behaviour
206-1
Legal proceedings for anti-
competitive behaviour and
cartel and monopoly practices
/
There were
no legal
proceedings
for anti-
competitive
behaviour,
cartel and
monopoly
practices.
Taxes
207-1
Approach to taxes
150-151
207-2
Tax governance, control and
risk management
151-152
207-3
Stakeholder engagement and
managing tax concerns
/
Not
material
207-4
Country-by-country reporting
/
The company
is based in
Slovenia.
Materials
301-1
Materials used
98-99
301-2
Recycled input materials used
99
301-3
Processed products and their
packaging materials
100-102
Energy
302-1
Energy consumption within the
organisation
84-85, 89-90
302-2
Energy consumption outside the
organisation
89-91
302-3
Energy intensity
88
302-4
Reduction of energy
consumption
86-87
302-5
Reduction of energy
requirements for products and
services
86-87
Water and wastewater
303-1
Attitudes towards water as a
common resource
93-94
303-2
Managing impacts related to
water discharge
96
303-3
Water abstraction
93-94
303-4
Water discharge
94-95
303-5
Water consumption
96
Biodiversity
304-1
Owned, rented, managed
facilities located in or near
protected areas or in areas of
96
Graphics
GRI
193
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
high biodiversity value outside
protected areas
304-2
Significant impacts of activities,
products and services on
biodiversity
96-97
304-3
Habitats protected or restored
96
304-4
National list of protected
species affected by business
activities
96
Emissions
305-1
Direct (Scope 1) greenhouse
gas emissions
89-90
305-2
Energy indirect (Scope 2)
greenhouse gas emissions
89-90
305-3
Other indirect (Scope 3)
greenhouse gas emissions
/
Data not
available
305-4
Greenhouse gas emission
intensity
89-92
305-5
Reduction of greenhouse gas
emissions
90
305-6
Emissions of ozone-depleting
substances (ODS)
91-92
305-7
Nitrogen oxides (NOX), sulphur
oxides (SOX) and others
91-92
Waste
306-1
Waste generation and
significant waste-related
impacts
103-104
306-2
Managing significant waste
impacts
103-104
306-3
Waste generated
103-104
306-4
Waste diverted from landfill
103
306-5
Waste disposed of
103
Environmental assessment of suppliers
308-1
New suppliers screened against
environmental criteria
118
308-2
Negative environmental impacts
in the supply chain and actions
taken
118
Employment
401-1
New employees and employee
turnover
107
401-2
Benefits provided for full-time
workers and not for fixed-term
or part-time workers
108
401-3
Parental leave
108
Employees-management relations
402-1
Minimum time limits for issuing
notifications relating to
operational changes
77-78, 108
Occupational health and safety
Graphics
GRI
194
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
403-1
Occupational health and safety
management system
112
403-2
Hazard identification, risk and
accident assessment
115
403-3
Occupational health services
116
403-4
Worker participation,
consultation and information on
occupational health and safety
115
403-5
Training of workers in
occupational health and safety
109, 115-116
403-6
Promotion of workers' health
115-116
403-7
Prevention and mitigation of
occupational health and safety
impacts directly related to
business relations
112-114
403-8
Workers involved in the
occupational health and safety
management system
112
403-9
Injuries at work
113-114
403-10
Work-related diseases
113
Training and education
404-1
Average number of training
hours per year per employee
109-110
404-2
Programmes to upgrade
employees' skills and support
their future employability
110-111
404-3
Percentage of employees who
receive regular reviews of their
performance and career
progression
107
Diversity and equal opportunities
405-1
Diversity of management
bodies and employees
25-26
405-2
Ratio of basic salary and
bonuses for women and men
/
No data
All employees
at Cinkarna
Celje d.d.
have the
same
opportunities,
regardless of
gender, age
or location.
Non-discrimination
406-1
Cases of discrimination and
corrective measures taken
26
Freedom of association and collective bargaining
407-1
Activities and suppliers where
there may be a risk to the
freedom of association and
collective bargaining
108
Podatki za
dobavitelji
niso na voljo.
Child labour
408-1
Activities and suppliers at
significant risk of child labour
incidents
118
Graphics
GRI
195
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
Forced or compulsory labour
409-1
Activities and suppliers exposed
to a significant risk of forced or
compulsory labour incidents
118
Security practices
410-1
Security guards trained in
human rights policies and
procedures
/
Data not
available
We have a
contract with
an external
contractor
who ensures
that security
guards are
trained and
licensed in
accordance
with national
regulations,
including the
protection of
human rights.
Rights of indigenous peoples
411-1
Cases of violations of the rights
of indigenous peoples
/
Not
relevant
Local communities
413-1
Activities involving local
communities, impact
119-121
413-2
Activities with significant actual
and potential negative impacts
on local communities
121
Social assessment of suppliers
414-1
New suppliers assessed against
social criteria
118
414-2
Negative social impacts in the
supply chain and actions taken
118
Public orientations
415-1
Political donations
/
Not
material
Cinkarna
Celje d.d.
does not
make
sponsorship
or donation
contributions
to political
parties.
Health and safety of customers
416-1
Health and safety impact
assessment of product and
service categories
82, 83, 123
416-2
Cases of non-compliance
relating to the health and safety
impacts of products or services
59, 123
There are no
known cases
of non-
compliance
related to the
health and
safety
impacts of
Graphics
GRI
196
Disclosure
Omission
No of
indicator
Indicator name
Page
Requireme
nts
omitted
Reason
Explanation
products on
customers.
Marketing and labelling
417-1
Information and labelling
requirements for products and
services
123
417-2
Cases of non-compliance with
information and labelling of
products and services
123
417-3
Cases of non-compliance in
relation to marketing messages
123
Customer privacy
418-1
Substantiated complaints about
breaches of customer privacy
and loss of customer data
70-71
There were
no
substantiated
complaints or
breaches of
privacy.
Graphics
Auditors report
197
Independent auditor’s report
Graphics
Auditors report
198
Graphics
Auditors report
199
Graphics
Auditors report
200
Graphics
Auditors report
201
Graphics
Auditors report
202