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CINKARNA CELJE
Metalurško kemična
industrija Celje, d. d.
ANNUAL REPORT
2021
Celje, March 2022

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1
Concise overview of performance and alternative performance measures 2
Report of the Management Board 3
Report of the Supervisory Board of Cinkarna Celje, d.d. 6
Internal Audit Report 10
Analysis of results and performance 11
Sales 11
Operating result 13
Shares – value and turnover 14
Dividends 14
Expenses and costs 15
Corporate Governance Statement 19
Internal control and risk management system in relation to the financial reporting process 19
Information on the functioning of the Company's General Meeting, including its powers, shareholders' rights and
their implementation 20
Composition and functioning of the management and supervisory bodies with committees 20
Remuneration of members of management and supervisory bodies 22
Code of corporate governance for publicly listed companies 23
Code of ethical conduct and labour practices 23
Diversity policy 24
Foundations of development and strategy 24
Investments 25
Development activity 27
Quality assurance 28
Statement of non-financial performance 29
Description of the business model in the non-financial business segment 29
Company vision 30
Mission 30
Values 30
Level of business model resilience to the impact of the COVlD-19 pandemic outbreak 30
Business environment 31
Company and its activities 31
Company organisation and structure 32
Key markets 33
Objectives and strategy of the Company 33
Main trends and factors 35
Cooperation with stakeholders 35
Policies 36
Description of the environmental policy 36
Description of social policy 38
Description of the human resources and occupational safety policy 41
Description of the human rights policy 46
Description of the anti-corruption and anti-bribery policy 47
Due diligence 48
Company risks and their management 49
Financial report 64
Financial statements 64
Condensed statement of financial position of the Company 64
Income statement for the period from 1 January to 31 December 66
Statement of other comprehensive income for the period from 1 January to 31 December 67
Statement of changes in equity and determination of distributable profit 68
Cash flow statement 69
Notes to financial statements 70
Significant business events after the end of the financial period 119
Independent auditor's report 120
General Meeting/Equity structure 126
Statement by members of the management and persons responsible for drawing up the
annual report 127
Company culture 128

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Concise overview of performance and alternative performance measures
Cinkarna Celje also uses alternative performance measures (APMs) as defined by ESMA to show its historical
performance. In 2021, we revised the reported indicators in line with the reasonableness of the interpretation given
the practice in the titanium dioxide industry and the absence of debt in the statement of financial position. For this
reason, the Company no longer reports the following indicators: financial gearing ratio, net working capital, short-
term ratio, accelerated ratio, inventory turnover ratio, days receivable, days payable (reported), long-term and
medium-term accrual ratio, total assets accrual ratio, operating efficiency, labour productivity, equity financing ratio,
long-term financing ratio, fixed assets to assets ratio, long-term assets to assets ratio, fixed capital ratio, immediate
current ratio, accelerated current ratio, short-term current ratio, operating efficiency ratio, net return on equity,
dividend yield on shareholders equity ratio. The selected performance measures reveal the performance and
efficiency of the company's business in the context of the cyclicality of the pigment industry.
2021
2020
2019
2018
Turnover in € 000
192,462,1
172,386,9
172,587,0
163,960,9
Operating profit (EBIT)
1
in € 000
39,976,6
22,534,4
25,726,9
36,408,5
Operating profit plus depreciation and amortisation (EBITDA)
2
in € 000
51,258,0
32,467,2
32,296,3
48,580,7
Net profit in € 000
33,227,1
18,950,7
21,436,4
30,558,2
Non-current assets (year-end) in € 000
110,531,4
110,888,7
107,753,8
107,594,1
Current assets (year-end) in € 000
131,373,2
100,251,7
100,516,5
106,067,4
Equity (year-end) in € 000
190,165,8
174,820,9
170,806,1
173,925,5
Non-current liabilities (year-end) in € 000
23,273,0
20,876,4
22,578,0
27,763,3
Current liabilities (year-end) in € 000
28,446,0
15,442,0
14,886,2
11,407,4
Investments in € 000
11,325,4
12,233,0
11,956,0
22,608,3
INDICATORS
2021
2020
2019
2018
EBIT as a percentage of turnover
0.21
0.13
0.15
0.22
EBITDA as a percentage of turnover
0.27
0.19
0.19
0.30
Net profit as a percentage of turnover (ROS)
17.26
10.99
12.42
18.64
Return on equity (ROE)
3
21.4
12.5
14.7
21.7
Return on assets (ROA)
4
14.7
9.0
10.2
14.1
Value added per employee
5
106,181
78,729
80,896
90,150
NUMBER OF EMPLOYEES
2021
2020
2019
2018
End of year
793
824
846
908
Average
801
838
874
905
SHARE INFORMATION
2021
2020
2019
2018
Total number of shares
807,877
807,977
807,977
814,626
Number of own shares
26,465
21,951
10,652
2,149
Number of shareholders
2,077
1,920
1,920
2,078
Earnings per share in €
6
41.12
23.45
26.53
37.51
Dividend yield
7
9 %
11 %
13 %
13 %
Gross dividend per share in €
21.0
17.0
28.3
26.5
Share price at end of period in €
259.0
178.0
187.5
181.0
Price/earnings per share (P/E)
8
41.1
23.5
26.5
35.3
Book value per share in €
9
235.4
216.4
211.8
213.5
Market capitalisation (year-end) in € 000
209,240,1
143,819,9
151,495,7
147,447,3
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 during the year, excluding own shares.
7
Amount of dividend/share value (at the date of the resolution)
8
Share value (at the last day of the year)/net earnings per share from the income statement
9
Equity as at 31 December/total number of shares issued.

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Report of the Management Board
In 2021, sales were 12% higher than in the previous comparable period. The increase in sales was
driven by favourable demand from all geographic segments, which is linked to a widespread increase in
consumer/purchase optimism. Asian competition is present, but at significantly higher prices than in
previous periods. Higher selling prices from Asian suppliers have generated higher demand for products
from Western multinationals and local producers in a supply-constrained environment. In parallel, there
is also pressure on the input side.
The most important building blocks of the business performance continue to be titanium dioxide pigment
and the rationalisation of the portfolio of strategic business areas, focusing on the nuclear programme
and exiting unprofitable activities.
At Cinkarna Celje, d.d., we have taken a number of measures to prevent the spread of the coronavirus.
To ensure safety, there are prescribed preventive measures, such as wearing masks, ventilation, etc.
At the time of writing the report, the company is operating smoothly, carrying out all its business
functions, including production.
In terms of titanium dioxide pigment production capacity, we are one of the smaller producers
worldwide. In Europe, we are comparable to the smaller plants of Eastern European producers. Based
on industry analyses and comparisons of business performance, Cinkarna Celje, d.d., is one of the more
successful players in the titanium dioxide pigment industry. The Management Board considers that the
business results achieved are objectively good and exceed the forecasts for the period.
The European economy is recovering from the pandemic recession faster than initially expected. The
improved epidemiological situation the year before and the phasing out of certain measures have
resulted in a pick-up in spending and consequently higher private consumption. The supply side of the
economy has been lagging behind in adjusting to demand fluctuations, including in global supply chains
and commodity production, increasing uncertainty related to the energy market and supply chains. The
disruption is further compounded by occasional localised pandemic-related shutdowns, together with
emerging labour shortages. Geopolitical risk in the East, in particular with regard to natural gas
deliverability and the impact on European consumption, represents an additional unknown. In addition
to the risks mentioned above, we do not perceive any other significant risks in the international economic
environment that could have a material adverse effect on the Company's business and its business plans
in the current year.
The macro situation explained above in the context of the specific markets and the carrier products of
Cinkarna Celje, d.d., means that there is currently a shortage of supply of titanium dioxide on the
market, which is reflected in the year-on-year price increases. They reached historic highs in the last
and penultimate quarters and are up by an average of 30% since the beginning of the year. Based on
an assessment of the current market situation, we estimate that there will be a price correction during
the year. In this context, there is significant upward pressure on the prices of some key raw materials,
including titanium-bearing ores, energy and transport. The impact on margins over the period is further
favourable due to existing raw material inventory and increasing product selling prices. Further price
increases can be expected in the coming quarters, which are expected to be higher on the input side
than on the output side.
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 and the quality of its
results.

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Cinkarna Celje, d.d., is a relatively small pigment producer, so we face market conditions and changes
as a typical follower, but we naturally try to make the most of the market's potential in terms of both
level and time dynamics within the given framework. Judging by the business results and benchmarks,
we are performing above average in this respect. In 2021, we sold 2% less pigment than in the same
period in 2020, which is due to a large overhaul in the fourth quarter.
The performance of the other sales programmes is above the level of the previous comparable period.
This relates in particular to the value sales volumes of the agro programme, which are higher than those
achieved in the same period of the previous year due to higher copper prices and higher demand. The
varnishes, masters and printing inks programme exceeded the sales of the previous comparable period
due to higher demand for masterbatches. This programme recorded higher average selling prices due
to the incorporation of higher input prices.
The main thrusts of the company's business policy remain unchanged. We focus on maximising
production capacity, exploiting market potentials to sell products with higher added value, optimising
production costs and implementing investment plans. Financial management is traditionally
conservative, the Company is financially stable, cash levels are high and allow for a continuous and
timely coverage of all liabilities.
We have a number of interlinked projects that help us manage spatial and environmental risks in a
comprehensive way. The most important of these are the alternative water supply project, the
harmonisation of the spatial planning acts at the Za Travnik red gypsum infilling plant, the remediation
of the Bukovžlak Non-Hazardous Waste Landfill (ONOB) and the stability of the barrier bodies.
Cinkarna Celje, d.d., generated sales revenues of € 192.5 million in 2021, which is 12% more than in
the comparable period of the previous year. The total value of exports in the period under review
amounted to € 175.1 million, which is 11% more than in the same period of the previous year. The net
profit amounted to € 33.2 million, 75% higher than the € 18.9 million achieved in the corresponding
period of the previous year. EBITDA reached € 51.2 million, representing 27% of sales. EBITDA is up
58% year-on-year.
In the area of work with employees and human resource management, during the COVID-19 epidemic,
special attention was paid to compliance with the set of measures taken by the Management Board of
the Company, with the aim of ensuring the smooth operation of the company and, consequently, the
conditions for maximum safety and health of employees, protection of employees against the possibility
of infection and optimisation of working conditions for employees in times of limited human resources.
We follow the principle of a positive and motivating remuneration policy and of ensuring an appropriate
level of employee satisfaction and motivation.
In 2021, € 11.3 million was spent on investments, the acquisition of fixed assets and replacement
equipment, and environmental investments, representing 79% of the planned budget for 2021. The
under-execution is mainly due to the occurrence of changed circumstances requiring the suspension of
works and the additional preparation of documentation (ONOB), longer procedures for selecting the
most advantageous supplier, pilot testing of various installations, delays in the preparation of project
documentation and administrative procedures.
We invest in programmes that show growth potential. Our investments in production are primarily aimed
at ensuring profitable volumes, higher quality, and energy sustainability. Improvements in the operation
or upgrading of waste water treatment plants and the implementation of measures to reduce emissions
in the working environment are a constant.
Our development activities are pursuing a five-year strategy while at the same time preparing the
ground for its revision, notably in terms of complementing existing programmes. Development activities
have been carried out in line with customer trends or expectations. Improvements have been made in
all processes to reduce energy consumption, improve product quality, achieve higher plant efficiencies

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and capacities, and work more efficiently. In the context of ensuring the sustainable development of
titanium dioxide production, we continued our multi-year development project on integrated water
management and waste reduction.
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 in 2021.
Business plan
The 2022 business plans are based on forecasts of global macroeconomic conditions, projected growth
rates of gross social product in the most economically important countries, and industry analyses and
projections. Based on these facts, we have set our expectations and trend forecasts for 2022
accordingly. The company enters 2022 with optimism but caution. The profitability plan for 2022 exceeds
the forecasts in the medium-term development strategy for the period. Pigment inventory with
manufacturers and customers are building up rapidly, and we expect levels to normalise in the coming
year. Based on the above, we estimate a stabilisation of demand.
We expect an increase in the purchase prices of titanium-bearing raw materials. Bargaining power of
suppliers remains extremely high, mainly due to low competition or a low number of suppliers in the
titanium-bearing raw materials markets. We will continuously develop solutions that are optimal from
an operational safety and cost perspective. Activities relate to the search (testing and validation) of new
raw material sources, optimising the raw material mix, developing cooperation with existing suppliers
and developing new sourcing routes.
In 2022, 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, with a high
degree of flexibility to allocate sales volumes to the most profitable markets. Traditionally, we have
followed a conservative financial policy and a sound cash position, conscious of the volatility of the
market and the risks involved. At the same time, good performance, cash surpluses and forecasts imply
appropriate and adequate remuneration for the owners, in line with the Company's strategic plans and
its financial position.
In 2022, in line with industry expectations and cycles, we will reach € 204 million in sales. Sales in
foreign markets will reach € 187 million in 2022. The projected net profit for 2022 is € 20.1 million.
The investments to be made in 2022, in terms of enabling sales growth, will be 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, capability and
prospectivity, and in line with the five-year strategic plan. We will invest mainly in projects to eliminate
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.
A business plan is an estimate of future business conditions and performance based on a currently
available set of key information and should therefore be seen as a forecast, which inevitably involves a
degree of uncertainty.
Management Board of the Company

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Report of the Supervisory Board of Cinkarna Celje, d.d.
In 2021, the SB held 6 meetings, 5 of which were ordinary and 1 correspondence-based. Members'
attendance at meetings was generally full. Within the legally formal framework established by laws,
regulations, the company's Articles of Association and, of course, the relevant codes, and with the
approach of a prudent steward, we have diligently fulfilled and exercised our competences, duties and
responsibilities. We have considered the materials submitted, the presentations made, the specific
clarifications and explanations provided, and have also organised and conducted interviews with
individual external experts. Through constructive suggestions, questions and requests for additional
data, analyses and reports, we have sought to further clarify and examine particular topics. In our
opinion, the Supervisory Board has conducted its work with due diligence, in accordance with the law
and with the best of its individual conscience and knowledge, thereby adequately safeguarding the
interests of the Company and its shareholders.
At the end of 2021, the Supervisory Board of Cinkarna Celje, d.d., was thus composed of: dr. Mario
Gobbo – President, Luka Gaberščik, univ. dipl. in law – Deputy President, mag. David Kastelic, Dušan
Mestinšek, dipl. in electrical engineering, and Jože Koštomaj, mechanical engineer, the latter two as
workers' representatives.
In 2021, the three-member Management Board is composed of Aleš Skok – President of the
Management Board, Nikolaja Podgoršek Selič – Member – Deputy President of the Management Board
– Technical Director, and Filip Koželnik – Member – Worker Director.
In addition to reviewing the day-to-day operations, the Supervisory Board devotes its time and attention
to investments, business plans and regular internal audit activities. Notable topics include a review of
activities to reduce or prevent the spread of the COVID-19 virus in the company and its potential impact
on operations, a report and discussion on the implementation of the development strategy,
environmental topics, health and safety issues, and reporting on energy use, among others. The
Supervisory Board was kept informed of the development and progress of environmental projects. The
Management Board briefed the Supervisory Board members in detail on the risk of shortage of process
water and possible solutions. Attention was also paid to monitoring the implementation of the Company's
Strategic Plan for 2019-2023, adopted in 2018.
In 2021, the volume of investments decreased by 7% compared to the previous year. The
underperformance is mainly due to the occurrence of changed circumstances requiring interruption of
works and additional documentation preparation (ONOB), longer procedures for selecting the most
advantageous supplier, pilot testing of various installations, delays in the preparation of project
documentation and administrative procedures. The total value of investments thus amounted to € 11.3
million. The main part of the funds was earmarked for the production of titanium dioxide pigment to
improve product quality, to ensure the planned volume production and to reduce the environmental
impact.
In December, we discussed and adopted the 2022 Business Plan. The 2022 Business Plan is set against
a backdrop of relatively pessimistic macroeconomic forecasts and with traditional conservatism. The
sales plan is just over € 203.9 million and the net profit is planned at € 20.1 million. The planned drop
in the latter is mainly due to market pressures in the direction of a decrease in average selling prices
and an increase in purchasing prices. The Supervisory Board considered that the plan was appropriately
ambitious, adequately reflecting both the situation in the business environment and the Company's
competitive position and potential for generating results.
Thanks to the efforts of the employees and the Management Board in an extraordinary situation, the
results achieved in 2021 are very good and among the best in the history of Cinkarna Celje, d.d., and
above average in the competition of the best Slovenian industrial companies. The Management Board

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has successfully taken over the business and continues its excellent management of the company.
International industry comparisons also show once again that the results achieved are among the very
top of the leading global companies in the titanium dioxide pigment industry. The Company's operating
profitability has outperformed most competing titanium dioxide pigment producers. As a result, we
consider the reported net profit of € 33.2 million and total sales of € 192.5 million to be outstanding
achievements. The company has traditionally followed a strategy of conservative financial management,
operating without long-term borrowings or external financial resources, and is therefore financially
stable and sound.
The strong performance in 2021 is, as mentioned above, due to still relatively high average prices or
margins. We have also closely monitored progress on physical volume indicators. Despite the epidemic
and the related deterioration in the macroeconomic situation, the company has shown organic growth
and increased market shares. Similarly, masterbatches and copper fungicides are among the company's
more important programmes in terms of relative importance. The objectives for 2022 are therefore a
logical continuation of the processes outlined above, i.e. particular emphasis will be placed on
improving/increasing the competitive position, increasing market shares and raising the physical volume
of the business. In parallel, the possibility of further diversification of the product portfolio will be
explored.
The past year was also successful for the Company in the area of environmental protection and employee
health, and in particular in limiting the spread of COVID-19 among employees. The Company's
management has taken effective measures, adapting to the situation each time, and has successfully
prevented the virus from spreading on a massive scale.
The Supervisory Board considers that the actions taken by the Management Board have also been
successful in implementing investment plans and targeted development work. A high level of financial
stability has been maintained despite the payment of high dividends. The efficient operation,
sustainability and stability of the system provide an answer to its long-term prospects. The main lines
of business and development of the Company, set out in the medium-term strategy, have been
qualitatively fulfilled in the most important points. In 2018, the Supervisory Board participated in the
preparation and adoption of the development strategy until 2023, the key emphasis of which is the
Company's focus on the core business of titanium dioxide and the change in the sales portfolio of this
carrier product towards increasing quality, optical properties and product development for more
demanding applications. The Supervisory Board actively supports a business policy focused on reducing
risks and uncertainties and on ensuring a stable financial position of the Company. Together with the
Management Board, we also pay attention to and ensure compliance and requirements in order to ensure
sustainable progress in the environmental and employee health fields.
In the opinion of the Supervisory Board, the present Annual Report, which contains the statutory
financial statements, disclosures, explanatory notes and the management report, presents all the key
information and indicators as well as adequate explanations of individual events and facts, and the
Supervisory Board, on the proposal of the Audit Committee of the Supervisory Board, approves the
Annual Report of Cinkarna Celje, d.d., for 2021.
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 2021 and verification
of the Annual Report of Cinkarna Celje, d.d., for 2020

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The Audit Committee of the Supervisory Board of Cinkarna Celje, d.d., composing of: mag. David
Kastelic – Chairman, Jože Koštomaj, mech. eng. – Member, and Gregor Korošec, univ. dipl. in econ. –
Independent External Expert, met at six regular meetings in 2021. Members of the Audit Committee
focused on regular and ongoing tasks and commitments.
Members of the Audit Committee were present at all meetings. Also present at the meetings were Aleš
Skok – President of the Management Board, and mag. Karmen Fujs – Head of the Accounting
Department, who presented documents and provided answers or clarifications to questions raised by
the members. The certified auditors Sanja Košir Nikašinović and Lidija Šinkovec of Ernst & Young, d.o.o.,
were present at two meetings. The Head of the Internal Audit Department, Jure Vezjak, was also present
at all 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 the internal audit reports on an
ongoing basis, which included 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 has once again reviewed the system for identifying, evaluating and managing risks
in the operations of Cinkarna Celje, d.d. The system has been properly integrated into the Company's
business processes in 2021, thus significantly improving its responsiveness and, above all, constituting
a welcome tool for the active management of the Company. The risk management system, which is
integrated into the integrated management system in a holistic way, is based on the regular updating
of the risk catalogue, in which risks are systematically classified according to the assessment of the
probability of occurrence of each type of risk and the amount of potential damage. The system also
includes a set of actions aimed at managing these risks. The Audit Commission assessed the system as
satisfactory.
In accordance with its competences, the Audit Committee was active in the regular audit procedures of
Cinkarna Celje, d.d., in 2021, with the following main activities:
• It met with the auditors and took note of the progress of the final audit of the 2020 financial
statements of Cinkarna Celje, d.d.
• It took note of the findings of the audit of the 2020 financial statements of Cinkarna Celje,
d.d., and the auditor's opinion.
• It took note of the management letter on the findings of the audit of the financial statements
of Cinkarna Celje, d.d., for the year ending 31 December 2020.
The meetings and activities in 2021 were dedicated to familiarisation with the final audit of the
Company's financial statements for 2020, review of the Annual Report of Cinkarna Celje, d.d., and
review of the annual report of the Internal Audit Department. In 2021, the Internal Audit Department
performed all internal audit tasks successfully and in accordance with the plan, and reported to the Audit
Committee on an ongoing basis.
The Audit Committee received and considered the clean copy of the Annual Report of Cinkarna Celje,
d.d., for 2021 at its meeting. The Audit Committee concluded that the Annual Report of Cinkarna Celje,
d.d., for 2021 was prepared on time and in all material respects in accordance with the International
Accounting Standards and the provisions of the Companies Act.

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The business section of the Annual Report of Cinkarna Celje, d.d., provides a concise overview of the
Company's operations in recent years. The analysis of results and performance in 2021 provides a
detailed overview of the Company's assets and operating result, containing all the necessary
explanations on sales, profit or loss, expenses and costs, assets and resources.
The Company's development is based on people, investment, development activity, quality assurance
and a successful implementation of its strategic plan for the next period until the end of 2023.
The Annual Report also contains a statement of non-financial performance, which, as required by the
amended Companies Act, includes welcome information on corporate social responsibility, the
environment, human resources and the fight against corruption and bribery.
The financial statements of Cinkarna Celje, d.d., for 2021, 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 Session on 4 June 2019. The auditor issued a positive
opinion on the financial statements of Cinkarna Celje, d.d., for 2021 and confirmed that the information
contained in the financial statements is consistent with the accompanying financial statements. In his
opinion, the auditor highlighted the key audit matters disclosed in the accounting part of the report,
namely Note 9 Provisions and Long-term Accruals to the Financial Statements, which discloses that, as
at 31 December 2010, the Company recognises € 18.8 million of environmental provisions, which were
made on the basis of projects developed, reports prepared and estimates made by external consultants
and the management regarding the costs associated with the restoration of landfill sites, and to cover
future liabilities relating to the restoration of land at the Company's current site, which was based on a
report by CDM Smith. The first application of International Financial Reporting Standards as adopted by
the EU is also a key audit matter.
Based on the positive opinion in the auditor's report, additional explanations provided by the auditor
and the professional departments of Cinkarna Celje, d.d., and the information and disclosures in the
Annual Report of Cinkarna Celje, d.d., for 2021, the Audit Committee is of the opinion that the Annual
Report has been prepared in accordance with the requirements of the Companies Act (ZGD-1) and that
the financial statements present fairly, in all material respects, the financial position of Cinkarna Celje,
d.d., as at 31 December 2021, and that its profit or loss and cash flows for the year are in accordance
with International Financial Reporting Standards as adopted by the EU.
The Audit Committee considers that the auditor has acted impartially and independently and in
accordance with the Audit Act. The Statutory Auditor and the Audit Firm will provide the Company with
the service of reviewing the ESEF Report and the Remuneration Report of the Members of the
Management Board and the Supervisory Board.
The Audit Committee has no comments on the Annual Report of Cinkarna Celje, d.d., for 2021 that
would in any way delay it in proposing to the Supervisory Board that it adopt a decision on the approval
of the Annual Report of Cinkarna Celje, d.d., for 2021 in accordance with Article 282 of ZGD-1.
President of the Supervisory Board
Mario Gobbo

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Internal Audit Report
Internal auditing at CINKARNA Celje, d.d., is performed by the Internal Audit Department, headed by
the Head of the Internal Audit Department. The Department is an independent organisational unit,
organisationally accountable to the Management Board and functionally to the Audit Committee or the
Supervisory Board of the Company. In its work, it complies with the International Standards for the
Professional Practice of Internal Auditing and other rules included in the International Framework for
the Professional Practice of Internal Auditing and the Hierarchy of Internal Auditing Rules.
Its role is to provide independent and impartial assurance and advice designed to add value and improve
the performance of the Company. It helps the Company to achieve its objectives by systematically and
methodically assessing and improving the effectiveness of risk management, control processes and
corporate governance. It acts in accordance with the Charter and is guided by the principles of integrity,
professionalism, professional due diligence, impartiality and independence.
It carries out activities in areas where key risks to the Company arise or may arise and where it can
contribute to the improvement of the business and the enhancement of the Company's business security
and benefits, where the business is exposed to risks and weaknesses that threaten its continued
existence and development, or where there are opportunities for fraud, error, evasion or conflict, with
a view to making the Company more efficient, economical and effective in its operations.
It carried out its activities in 2021 in accordance with the approved annual work plan. All of the eight
planned internal audits were carried out, as well as other internal audit activities such as periodic follow-
up of recommendations, internal audit planning, work methodology activities and others. The results of
the audits and other activities were regularly reported by the Head of the Internal Audit Department to
the relevant auditees and the Management Board, and periodically to the Audit Committee and the
Supervisory Board of the Company.
Head of the Internal Audit Department
Jure Vezjak
Qualified Internal Auditor and CIA (Certified Internal Auditor)

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Analysis of results and performance
Sales
The Company's total sales in 2021 are 12% higher than the sales achieved in 2020. The total amount
of sales or net turnover reached € 192.5 million.
Market
2020
2021
Change in 2021 (%)
Slovenia
14,623,430
17,355,361
+19
EU
130,529,281
142,500,353
+9
Third countries – ex-YU
3,730,801
4,383,469
+17
Third countries – other
23,503,340
28,222,917
+20
Total
172,386,851
192,462,100
Slovenia
9%
9%
EU +
76%
74%
Middle East & Africa
4%
2%
Eastern Europe
11%
15%
USA & Mercosur
0%
0%
Analysing quarterly and monthly sales, we note that all the quarters concerned in 2021 are performing
well, reflecting changed consumer habits and increased optimism, combined with the vaccination
momentum and a further improvement in the industry situation. We outperformed the first quarter of
the previous year, mainly due to exceptionally high sales in January and March. The higher sales in the
second and third quarters were driven by higher value sales of titanium dioxide, copper fungicides,
masterbatches and services by the Polimeri unit. Sales in the third and fourth quarters are above
expectations.
One of the highest monthly sales was in April, at € 17.6 million. The lowest sales of the period under
review were recorded in December, which is traditionally a less active month, at € 13.4 million.
Total sales to foreign markets increased by 11% in 2021 compared to 2020. The increase in sales to
foreign markets is undoubtedly due to higher pigment selling prices. In absolute terms, the most
significant increase in sales is to EU markets, due to the lack of supply of European pigment and higher
prices from Asian producers. In relative terms, the biggest increase is to third countries. In the dollar
markets, we still maintain minimum control market shares, as larger volumes would be unsustainable
due to the specific conditions, which are certainly less favourable than in the European markets.
Sales to the EU market are 9% higher than in the comparable period of the previous year. The
outperformance was mainly driven by higher selling prices for pigment and copper fungicides. Growth
in this market was driven by increased demand for titanium dioxide and copper fungicides.
Sales to the markets of the former Yugoslavia increased by 17%, due to higher sales of pigment and
powder varnishes.
Domestic sales are 19% higher compared to the same period in 2020. The growth in sales was driven
by growth in sales of all business units, with the exception of Kemija Celje.
The share of total exports in the Company's total sales in the year under review was 91.0%, a decrease
of 0.5 percentage points compared to the previous year. The fall in the share of exports relates to an
increase in sales on the domestic market. The bulk of this is achieved by exports of titanium dioxide
pigment.

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The German market accounted for 30.2% of export sales and 27.4% of the Company's total sales. The
importance of the German market decreased slightly compared to the previous year, due to the objective
maturity of the market and lower volume take-up by a major buyer. The German market accounted for
more sales of Kemija Mozirje and metallurgical products.
The reasons for the other more significant and more remarkable changes in export sales are described
below. A decrease in Belgium and an increase in France – reallocation of volumes within the corporation
(leading European producer of masterbatches). Increased sales of pigment and copper fungicides in
Italy and Poland. Increased demand for pigment in Turkey, Austria, Hungary and the Netherlands. The
decrease in Spain is related to lower volume sales of pigment, as we sold a higher volume to an
occasional customer in the comparable period last year. The increase in sales to Algeria and Sweden is
related to higher volume sales to marginal markets.
The structure of sales by national market naturally varies considerably from quarter to quarter,
depending on the conditions prevailing in each market. Roughly speaking, however, the structure is
determined by the profitability of the markets, the marketing strategy and the political-economic
security and reliability of markets.
Sales Programme
2021
2020
Value in €
Share in %
Value in €
Share in %
Titanium dioxide
156,788,783
81
143,056,990
83
Zinc processing
6,364,355
3
5,125,075
3
Varnishes, mastics and printing inks
17,687,588
9
15,207,872
9
Agro programme
7,990,692
4
5,525,614
3
Other
3,630,682
2
3,471,300
2
Sales value
192,462,100
100
172,386,851
100
In the period under review, sales of the titanium dioxide pigment programme reached € 156.8 million.
The supply and demand curves have created a new equilibrium point. Changes in consumer habits
during the epidemic resulted in a significant increase in demand for pigment over and above supply
towards the end of the year. The increased demand is linked to DIY projects shifting to the construction
sector. Higher value sales of € 13.7 million are due to higher average selling prices. As a typical follower
and small player in the global market, we adjust prices with a lag. We continue to ensure smooth
production and operations for all our customers.
The zinc processing sales programme combines the product groups zinc wire, anodes and alloys. The
performance is 24% higher than in the comparable period of the previous year. The average selling
prices of the product groups are higher, on account of the higher stock exchange price.
During the period under review, there was a 16% increase in sales of the varnishes, mastics and
printing inks product range compared to the previous year, which is mainly attributable to the increase
in volume sales of masterbatches and powder varnishes. The improved situation compared to last year
is linked to the pick-up in activity in the manufacturing industry. In parallel, average selling prices are
also higher due to the increase in raw material prices.
Sales of the Agro programme, which includes copper fungicides, Pepelin, copperas and Humovit,
increased by 41% compared to the corresponding period in 2020. The increase is due to both higher
volumes and higher sales prices. Average sales prices of copper fungicides increased significantly on the
back of higher copper exchange prices and an improved sales structure. Humovit sales are held at the
level of the comparable period in 2020. The fact remains that we are dependent on local and nearby

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market conditions for our soil sales, as the product cannot bear the additional cost of transport to enter
distant markets.
The “Other” programme includes sales of thermoplastics, polymers, elastomers, aggressive media
transport systems (STAM), sulphuric acid, CEGIPS, merchandise, services, and sales of discontinued
products and product groups. The value of sales of the aforementioned groups is unchanged compared
to the first quarter of 2020. STAM sales are at the level of 2020. Sulphuric acid value sales are 69%
higher. For the programmes in this group/category, the 21% increase in CEGIPS value sales is
particularly noteworthy. We sold 163.4 thousand tonnes of CEGIPS, which is important in the context
of the lifetime extension of the Za Travnikom landfill.
Operating result
An operating profit of € 40 million was achieved in 2021. This result exceeds the operating result of €
22.5 million achieved in 2020 by 77%. Comparing this with the planned operating result for 2021
(operating profit of € 13.4 million), we see that we exceeded the business plan by 199%. Operating
performance was therefore significantly better than last year, but also significantly above the level of
the business plan. This outperformance was driven by good volume sales and an increase in the selling
prices of the underlying product. The operating result including depreciation and amortisation, or
EBITDA, amounted to € 51.2 million, representing 27% of sales. Compared to the previous year, EBITDA
is 58% higher.
Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Operating
result in
€ million
11.0
4.6
4.7
13.7
32.8
24.1
8.6
16.2
8.1
10.6
35.7
36.4
25.7
22.5
39.9
After accounting for the impact of financial income and expenses, a pre-tax profit of € 40 million was
recorded in 2021, and a profit of €22.5 million in 2020. The pre-tax result is up 77% on the previous
year and exceeds the planned pre-tax result by 200%. In 2021, a minimal negative financing balance
of EUR 20.1 thousand was recorded (in 2020, the financing balance was also negative at EUR 22.8
thousand). The resulting negative financing balance is due to a negative exchange rate balance of €
25.7 thousand, investment and interest income of € 26.2 thousand, and a balance of other financial
liabilities of € 20.6 thousand (€ 16 thousand is the cost of provisioning for severance and jubilee
bonuses). The minimal negative exchange rate balance of € 25.7 thousand represents the effective use
of hedging instruments to manage the volatile movement of the $/€ currency pair on the purchase of
titanium bearing ores.
Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Net profit
in € million
6.1
0.8
1.0
8.9
25.5
18.3
7.2
13.9
6.8
9.8
28.8
30.6
21.4
19.0
33.2
The net profit for the period amounts to € 33,227,124, which is 75% higher than the one realised in
2020 (€ 18,950,656) and 215% higher than planned (we had planned a net profit of € 10.6 million for
2021 in an extremely uncertain environment). Taking into account the developments in the international
economy, the titanium dioxide pigment market and, above all, the results of our competitors in the
titanium dioxide industry, as well as the COVID-19 situation, we consider the result to be above average
and above all expectations. The net result comprises the profit before tax, an income tax charge of € 7
million (the effective tax rate is therefore 17.53%) and deferred taxes of € 277 thousand. The amount
of deferred taxes or change in the deferred tax balance relates to the reduction and release of provisions
for severance and jubilee bonuses, the use and release of environmental provisions, and the definitive
write-off of previously revalued trade receivables and investments. On the upside, it mainly relates to
the restatement of the increase in provisions for employees and the increase in the value of
environmental provisions already made. Tax relief consists of relief for investment in equipment,

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investment in research and development, employment of disabled persons, voluntary supplementary
pension schemes and donations.
Shares – value and turnover
The shares of Cinkarna Celje, d.d., are listed on the standard quotation of the Ljubljana Stock Exchange
as CICG. The single price on the first day of trading, i.e. 6 March 1998, was € 33.71 per share.
The total number of shareholders on the last day of 2021 was 2,077 and the total number of issued
shares is 807,977, of which 781,512 are voting shares and 26,465 are treasury shares.
The value of Cinkarna Celje's share, listed on the Ljubljana Stock Exchange's first quotation (CICG),
fluctuated between € 174/share and € 259/share in 2021. From the last trading day in 2020 to the last
trading day in 2021, the value of the share rose by 49%.
The company's market capitalisation on the last trading day of 2021 was € 209.3 million. This is lower
than the company's equity, reflecting the Slovenian capital market and the lack of investor confidence
in it. The company's market capitalisation on the last day of trading in 2020 was € 143.8 million. The
following table shows the evolution of CICG's share value over the last year (single month-end price)
and previous years.
Year
1998
2018
2019
2020
2021
Month
3
12
12
12
1
2
3
4
5
6
7
8
9
10
11
12
CICG
exchan
ge rate
in €
33.6
181.0
187.5
178.0
186.0
200.0
206.0
215.0
232.0
229.0
233.0
248.0
238.0
240.0
259.0
259.0
The average cumulative monthly turnover of Cinkarna Celje's shares in 2021 was € 1.2 million, which
is 14% lower than the average monthly turnover in 2020, when it was € 1.4 million. The total annual
turnover was € 14.2 million (€ 17.1 million in 2020). The company has a contract to maintain the
liquidity of the share. The table below shows the extremes of the share price and cumulative monthly
turnover over the last three years.
2019
2020
2021
highest
lowest
highest
lowest
highest
lowest
Share price in €/share
225.0
225.0
203.0
125.0
259.0
174.0
Cumulative monthly turnover in € 000
2,296.0
2,296.0
3,317.1
495.4
1,966.4
701.1
Dividends
On 17 June 2020, the General Meeting of Shareholders of the Company voted on the proposal of the
Management Board and the Supervisory Board on the use of the balance sheet profit for 2019, which
amounted to € 15.9 million. In accordance with the approved and voted proposal/agreement, the major
part of the balance sheet profit of € 13.5 million was paid out in the form of dividends. The dividend per
share amounted to € 17.00 gross, which is 40% less than the dividend paid in 2019 and represents a
dividend yield of 11%. The remainder, € 2.3 million, was carried forward as profit carried forward.
On 5 June 2018, the General Meeting of Shareholders granted the Company's Management Board the
authorisation to acquire own shares. The latter comprised 21,951 shares as at the last day of 2020. In
2021, 4,514 shares worth € 0.9 million were acquired on the open market. The treasury stock as at 31
December 2021 amounts to 26,465 shares.

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The company paid out 87% of its 2020 net profit in the form of dividends in 2021. The dividend yield
on the share was a high 9% at the date of the General Meeting's resolution. With an above-industry-
average dividend payout, the company's business in 2021, in terms of securing cash to continuously
finance its operations and investments, was solid and smooth.
Dividends paid and the P/E ratio with the corresponding calculation are shown in the section Concise
overview of performance and alternative performance measures.
Expenses and costs
The analysis of expenses and costs below relates mainly to the costs of materials, raw materials and
energy, and labour costs. The most significant impact on the Company's performance is the trend in the
costs of materials, raw materials and energy, as the Company is capital intensive. Labour costs are
mainly determined by the constructive dialogue between the social partners and by business
performance. Interest costs, due to the full deleveraging and cancellation of financial debts before the
end of 2014, are also not incurred in 2021. The most important factor in the volume and dynamics of
costs is the situation in the global and European economy. The supply side of the economy is lagging
behind demand fluctuations, including global supply chains and raw material production, which increases
the uncertainty associated with the energy market and supply chains. The disruption is further
compounded by occasional localised pandemic-related shutdowns, together with emerging labour
shortages. Prices of key commodities in the so-called "commodities" markets (non-ferrous metals, steel,
energy, basic chemicals, etc.) are on an upward trend. The gradual rise in energy prices has been
contained as best we can, with further increases materialising in the current year. Price levels for the
procurement of titanium-bearing raw materials are at higher levels. Political and security risks related
to the Ukraine-Russia situation have not yet had a direct material impact so far.
The combination of the above macroeconomic situation and the situation in the titanium dioxide pigment
industry has led to an opening of the cut-off of the purchase and selling prices, with an expected closure
in the coming quarters. The upward pressure on labour costs has increased due to the conditions in
Slovenia and the understandable rise in employee expectations, but the company's remuneration policy
has managed to stay within our business performance plans.
The structure of consumption of raw materials, packaging and energy shows a slight variation compared
to 2020. This is due to different dynamics of change in the individual categories of direct production
costs. In relative and absolute terms, the most significant increase is in the costs of raw materials and
consumables, which is up by 2% on account of the growing bargaining power of suppliers. The dynamics
of raw material costs are in line with the dynamics of production volumes. Packaging costs are lower
due to the focus on the B2B segment and the associated bulk packaging.
In 2021, raw materials/materials for production account for the largest share of production costs
(86.6%), followed by energy (11.6%) and packaging (1.9%).
In line with the increase in efficiency and profitability of the titanium dioxide industry and Cinkarna
Celje, d.d., we implemented a motivating remuneration policy in 2021 and, within realistic possibilities,
followed the dynamics of the business results, which exceeded both last year's results and the business
plans. The starting points for the formulation of the remuneration policy were the agreements and
guidelines of the social partners at national and company level.
In 2021, we paid employees a holiday allowance of € 2,021 gross/employee in March. Due to the
excellent performance, an additional payment of 25% of the individual's merit was made in December
to all employees based on the individual's average salary for 2021 in terms of effective hours of
attendance. At the beginning of January 2022, we paid to the employees a portion of their performance
salary of € 1,900.00 gross/employee, charged to the 2021 financial year. In 2021, the Company also

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paid additional pension contributions to the cover pension fund MKPS managed by Modra zavarovalnica
in the amount of € 638.4 per insured person per year.
The company-wide labour costs achieved are 4% lower in 2021 compared to 2020. Labour costs per
employee increased by 1% in 2021 compared to 2020.
In 2021, the amount of depreciation charged was 14% higher than in the previous year, as a result of
the level of investment in 2020, which was below the level of 2018, when, with € 22.6 million invested,
we significantly exceeded the amount of depreciation charged in that year.
In 2021, the Company did not incur any interest expense as it had no financial debt (the last time the
Company recorded interest expense was in 2014 for bank loans received). Interest expense is therefore
not a factor in the Company's performance and the Company is no longer exposed to risk in the context
of potential changes in interest rates. The minimal negative exchange rate balance of € 25.7 thousand
represents the effective use of hedging instruments to manage the volatile movement of the $/€
currency pair on the purchase of titanium-bearing ores.
Otherwise, we performed very well during the period under review. We generated a net profit of € 33.2
million. We have accrued corporate income tax of € 7.0 million for 2021.
Operating result & expenses
2021
2020
Value in €
Share in %
Value in €
Share in %
Operating result
39,976,608
20
22,534,445
13
Costs of materials and services
111,491,064
57
110,970,369
63
Labour costs
28,888,986
15
30,099,442
17
Depreciation and amortisation
11,281,415
6
9,932,781
6
Other expenses
5,497,719
3
1,773,115
1
Total operating income
197,135,791
100
175,310,152
100
Assets and resources
The source of financing of the achieved volume of operations in 2021 was mainly own funds accumulated
in the course of current operations and, to a lesser extent, 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, no bank resources were used and special attention was paid to the management of net
current/short-term assets, thus ensuring a reliable, secure and stable cash position or liquidity at all
times.
Assets
2021
2020
Value in €
Share in %
Value in €
Share in %
Non-current assets
110,511,613
46
110,888,649
53
Current assets
131,373,196
54
100,251,710
47
- Inventory
40,298,476
17
35,524,605
17
- Financial investments
0
0
35,056
0
- Trade receivables
31,172,903
13
26,738,238
13
- Cash
59,746,594
25
37,657,824
18
- Other current assets
155,223
0
295,987
0
Total assets
241,884,809
100
211,140,359
100
The share of non-current assets in total assets decreased by 6.8 percent to 45.7% compared to the
end of 2020. The largest category of non-current assets is tangible fixed assets (95.8%). Their value
decreased by € 0.5 million, or 0.5%, for the difference between the amount invested in tangible fixed

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assets and the actual depreciation charged in the twelve months of 2021. Non-current investments
changed for impairment to fair value in 2021 for an amount of € 104 thousand and comprise shares and
interests in companies. Deferred tax assets increased by 17% or € 277 thousand, mainly relating to an
increase in provisions for jubilee bonuses and severance payments, and an increase in environmental
provisions. Other non-current assets are represented by emission allowances obtained free of charge
from the State.
The share of current assets in total assets increased by 6.7 percent compared to the end of the
previous year to 54.3%. The most important categories in the structure of current assets in terms of
value are cash (45%), inventory (31%) and trade receivables together with other current assets (24%).
Inventory increased by 13% compared to the end of 2020, with a 24% increase in the value of material
inventory (including advances), a 2% decrease in work-in-progress inventory and a 4% decrease in the
total value of the Company's inventory of finished products and merchandise (all compared to the end
of 2020). The main reason for the decrease in inventory of finished products is the increased volume
sales of pigment.
Current financial receivables mainly cover the fair value of derivatives and have no balance compared
to the end of 2020.
Current trade receivables include current trade receivables due from customers and current trade
receivables due from others (mainly from the State for input VAT). Compared to the situation at the
end of 2020, trade receivables increased by 17%. Trade receivables due from customers increased by
18%, while other current receivables increased by only 1%. A maturity breakdown of trade receivables
shows that the age structure of receivables continues to be of high quality and secured with an external
institution or other form of collateral (97.7% of total receivables are secured).
Cash (and cash equivalents) represent 45% of total current assets, with a 59% increase in cash
compared to the previous year. The relatively high value of cash is mainly due to the excellent
performance throughout the year.
Other current assets comprise prepaid expenses accrued. The value decreased by 48%.
Equity and liabilities
2021
2020
Value in €
Share in %
Value in €
Share in %
Equity
190,165,790
79
174,820,942
83
Non-current liabilities
23,273,002
10
20,876,401
10
Current financial liabilities
197,503
0
60,090
0
Current trade payables
23,242,724
10
13,331,989
6
Other current liabilities
5,005,790
2
2,050,937
1
Total equity and liabilities
241,884,809
100
211,140,359
100
The value of equity in the structure of the liabilities to resources as at 31 December 2021 is 78.6%, a
decrease of 4.2% compared to the end of 2020. The amount of equity has increased by 9% compared
to the situation at the end of 2020. The increase (€ 15.3 million) relates to the difference between the
net profit for 2021, the dividend payment for 2020 of € 16.5 million, the purchase of own shares from
reserves of € 0.9 million, and the change in the revaluation surplus on severance payments and
investments of € 0.5 million. In 2020, pursuant to the resolution of the General Meeting of 5 June 2018
and the resolution of 17 June 2020, the Company acquired 4,514 treasury shares for an amount of €0.9
million and, at the same time, created reserves for treasury shares for the same amount against other
profit reserves. As at 31 December 2021, the Company holds 26,465 treasury shares. There were no
other significant movements in equity.

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In total equity, the shareholders equity amounts to € 20,229,769.66 and consists of 807,977 (of which
26,465 are treasury shares subscribed in the treasury shares pool) ordinary freely transferable parcel
shares. The book value of the shares as at 31 December 2021 is € 234.5 (up 8.9% since the beginning
of the year when it was € 215.4).
Provisions and other non-current liabilities account for 9.6% of payables. Provisions for pensions
and similar liabilities were made as at 1 January 2006 (severance 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 environmental provision. In recent years, the following additional
environmental provisions have been made: €5 million in 2010 for the restoration of the Bukovžlak solid
waste landfill, and €7 million plus €5 million in 2011 for the restoration of the Za Travnik landfill and
the destruction of low-level radioactive waste, respectively. At the end of 2017, we reviewed the
provisions in detail, verified and restated only the provision for the elimination of old burden risks for €
6.4 million. At the end of 2021, we reviewed the scope of the provisions and restated them accordingly
to the actual market conditions, increasing the already existing environmental provisions by € 3.7
million. The volume of environmental provisions increased by 13% over the period due to the additional
provisioning, taking into account the earmarked coverage of the costs of the above mentioned
restoration projects. Non-current deferred income decreased by 19% due to the amortisation of the
assets acquired free of charge and their present value in future years. In 2021, deferred tax liabilities
of € 19,746 were created on the revaluation of investments.
Financial and trade payables increased by 84% compared to the end of the previous year due to a
101% increase in payables to suppliers for strategic deliveries outstanding and extensions of payment
terms, and a 57% increase in other current liabilities for taxes, employee contributions payable and
income tax. All financial and trade payables are current in nature. The Company's gross gearing ratio is
11.8 %, an increase of 4.5 % compared to the situation at 31 December 2020.
Current financial liabilities as at 31 December 2021 amount to € 198 thousand, 3 times higher than
at the end of 2020 (when they amounted to € 60 thousand). The difference relates to the increase in
the volume of our accounts payable and the assignment of receivables from our suppliers. The
Company's financial gearing ratio is therefore 0.82‰ (previous period: 0.29‰).
Current trade payables increased by 74% over the period. Current trade payables to suppliers
amounted to € 18.7 million as at the last day of December 2021, doubling in value compared to the end
of 2020, mainly due to strategic raw material deliveries in December 2021 compared to December 2020.
Other payables increased by 12% (or € 0.5 million), mainly comprising € 2.5 million payable for net
salaries and performance payments, € 1.3 million payable for contributions and taxes from and on
remuneration, € 3.9 million payable for income taxes and € 0.6 million payable for VAT and to other
institutions.
Other current liabilities decreased by 6% in the period under review. They mainly comprise accrued
liabilities for annual leave and labour costs, accrued environmental contributions and taxes, and VAT on
advances made.

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Corporate Governance Statement
Internal control and risk management system in relation to the financial reporting process
The company has a system of operational and supervisory internal controls in place at all levels and in
all areas of the business to manage the risks that affect the success of achieving its objectives:
efficiency and effectiveness of operations,
reliability of financial reporting, and
compliance with legal and internal regulations.
The control activities and the responsible persons are set out in internal documents (job descriptions,
authorisations, organisational regulations, rules of procedure, internal rules).
We guarantee the following:
• Control of accounting data, which involves assessing the accuracy of accounting data and
correcting any irregularities detected. 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 assigned to the Accounting Department. Special inventory commissions may
also be appointed by the Management Board for specific types of inventories or extraordinary
inventories;
• Assessment of deviations between the achieved and planned values, which may indicate
shortcomings in implementation as well as in the design of the objectives. Activities are carried
out within the Accounting Department;
• Internal control of the implementation of procedures laid down for the purchase, storage and
use of materials and for the production, storage and sale of products (checking the use and
approval of the prescribed documentation, analysing any discrepancies and proposing
measures). The activities are carried out within the Accounting Department and by the
Company's management;
• Internal controls in the computerised information system relating to management,
infrastructure, security, purchasing, 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 audits under:
o ISO 9001 – quality management systems,
o ISO 14001 – environmental management systems and EMAS regulation for Kemija Mozirje,
o BS OHSAS 18001 – occupational health and safety systems;
• Internal audits of process performance are carried out by qualified internal auditors to check
that activities are being carried out in accordance with the requirements of the management
systems and that the management system in place is adequate and effective to achieve the set
objectives. External audits are carried out by a selected certification body;
• Annual accounts are audited by an external audit firm;
• Once a year, on the basis of a decision of the Management Board, a review of the functioning
of operational and supervisory internal controls is carried out. The decision of the Management
Board identifies the responsible operator, the areas to be monitored, and the timetable for
carrying out the monitoring;
• In 2016, we set up the Internal Audit Department. Based on the adopted Charter, Rules and
Plan, the Internal Audit Department has been fully operational since 2017.
Deviations identified in each form of internal control are analysed by the persons responsible and the
management of the Company and, on that basis, action is taken to eliminate or prevent the causes of
risks that have caused or could cause deviations from the rules and objectives set by the Company.

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Information on the functioning of the Company's General Meeting, including its powers,
shareholders' rights and their implementation
The General Meeting is convened by the Management Board of the Company on its own initiative, at the
request of the Supervisory Board, or at the request of the shareholders of the Company representing
one twentieth of the shareholders equity. The General Meeting takes note of the annual report and
validly decides at the meeting by a simple majority of the votes cast, in particular on the following:
• Use of balance-sheet profits;
• Appointment of members of the Supervisory Board;
• Discharge of members of the Management Board and Supervisory Board;
• Appointment of the auditor, and other.
And with a ¾ majority, in particular on the following matters:
• Amendments to the Statute;
• Measures to increase or reduce the shareholders equity;
• Changes in the Company's status and dissolution, and in other cases provided for by law or by
the Statute.
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
them as at the end of the seventh day preceding the day of the General Meeting. Shareholders may exercise
the rights attached to their shares directly at the General Meeting or by proxy; proxies must be given in
writing and deposited with the Company. As a general rule, one General Meeting is held per year.
Composition and functioning of the management and supervisory bodies with committees
Management Board
The provisional term of office of the Management Board began on 30 June 2020, and on 8 December
2020 the Supervisory Board extended the term of office of the President of the Management Board and
then of the Deputy President of the Management Board for 4.5 years until 30 June 2025. The Worker
Director, Filip Koželnik, was elected by the Works Council for a five-year term, taking office on 5
November 2020.
President of the Management Board
Aleš SKOK, univ. dipl. in chem. eng., MBA – USA (since 1 January 2021)
Member of the Management Board – Deputy President, Technical Director
Nikolaja PODGORŠEK - SELIČ, univ. dipl. in chem. eng., spec. (since 1 July 2021)
Member of the Management Board – Worker Director
Filip KOŽELNIK, MSc of business adm. (since 5 November 2020)
President of the Management Board
Aleš SKOK, univ. dipl. in chem. eng., MBA –
USA
Member of the Management Board – Deputy
President, Technical Director
Nikolaja PODGORŠEK-SELIČ,
univ. dipl. in chem. eng., spec.
Member of the Management Board – Worker
Director
Filip KOŽELNIK,
MSc of business adm.
The Company has a two-tier management system with a Management Board and a Supervisory Board.
The Management Board represents the Company. It is composed of a President and two members, one
of whom is a Worker Director (the conditions and procedure for the appointment and dismissal of a
Worker Director and his/her powers are laid down in the Act on Workers' Participation in Management).

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The Management Board takes all decisions in accordance with the law and the Articles of Association,
except those for which the General Meeting and the Supervisory Board are expressly empowered. In
particular, the Management Board has the following powers vis-à-vis the General Meeting:
- Prepares information on the company's affairs, technical material and resolutions within the
competence of the General Meeting;
- Convenes the General Meeting;
- Executes the resolutions adopted by the General Meeting.
It reports to the Supervisory Board on:
- The profitability of the company;
- The 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.
Supervisory Board
On 4 June 2019, the General Meeting of Cinkarna Celje, d.d., appointed Luka Gaberščík as Member of
the Supervisory Board for a five-year term of office, effective 4 June 2019. Due to the resignation of
the Chairman and Member of the Supervisory Board Borut Jamnik as of 20 November 2019, the
Extraordinary General Meeting appointed Mario Gobbo as Member of the Supervisory Board for a five-
year term of office as of 23 December 2019, who took over the management of the Supervisory Board
on 25 May 2020. On 17 June 2020, the General Meeting of Cinkarna Celje, d.d., appointed (for a five-
year term of office from 18 June 2020) a new Member of the Supervisory Board: David Kastelic. It also
took note of the appointment of employee representatives to the Supervisory Board, Jože Koštomaj,
who replaced Aleš Stevanovič, and Dušan Mestinšek (for a five-year term of office from 18 June 2020),
and of the expiry of the term of office of Supervisory Board Member Dejan Rajbar. On 15 June 2021,
the General Meeting of Cinkarna Celje, d.d., appointed Mitja Svoljšek as a new Member of the
Supervisory Board for a five-year term of office as of 16 June 2021.
The Supervisory Board is composed of:
President
Dr Mario GOBBO (od 25. 5. 2020)
Deputy President
Luka GABERŠČIK, univ. dipl. in law (since 21 January 2020)
Members
mag. David KASTELIC (since 18 June 2020)
Mitja Svoljšak, univ. dipl. in econ. (since 16 June 2021)
Dušan MESTINŠEK, dipl. in el. eng. (since 18 June 2020)
Jože KOŠTOMAJ, mech. eng. (since 18 June 2020)
President
Dr Mario GOBBO
Deputy President
Luka Gaberščik
uni. dipl. in law
Member
Msc David Kastelic

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Member
Mitja SVOLJŠAK
univ. dipl. in econ
Member
Dušan MESTINŠEK
dipl. in el. eng.
Member
Jože KOŠTOMAJ
mech. eng.
The Supervisory Board has six members, two of whom are representatives of the Company's employees,
elected by the Works Council and notified to the General Meeting. The Supervisory Board is appointed
by the General Meeting of Shareholders, except for the members who are employee representatives.
The powers of the Supervisory Board are determined by law. The Supervisory Board regulates in more
detail the rules, methods and conditions of its work in the Rules of Procedure of the Supervisory Board.
The Management Board must obtain the Supervisory Board's approval for the establishment of business
policy, adoption of plans, establishment and co-founding of companies, increase and transfer of the
Company's founder's deposits in companies, purchase and transfer of the Company's shares and
business interests in companies, authorisation of proxies, etc.
Meetings of the Supervisory Board are convened by the President of the Supervisory Board on his/her
own initiative or on the initiative of any member of the Supervisory Board or on the initiative of the
Management Board. The Supervisory Board takes decisions at its meetings and a quorum is present if
at least half of its members are present when decisions are taken.
The Supervisory Board normally meets five times a year.
The Supervisory Board of Cinkarna Celje, d.d., has an Audit Committee, which, as of 2 July 2020,
consists of three members and is a permanent working body of the Supervisory Board. The members
of the Audit Committee are David Kastelic – Chairman, Jože Koštomaj – Member, and Gregor Korošec
– External Independent Expert.
On the basis of its deliberations, the Commission prepares proposals for resolutions, positions and
opinions within the competence of the Supervisory Board in relation to the annual and management
reports of the Company's Management Board, reports and opinions of external auditors, as well as the
preparation of the Supervisory Board's reports for the General Meeting of Shareholders. The Supervisory
Board is kept informed of its work and activities and is provided with reports on its meetings.
The Human Resources Committee of the SB is composed of the following members as of 2 July 2020;
Mario Gobbo – Chair, Luka Gaberščik – Member, and Dušan Mestinšek – Member. The Commission
prepares proposals for decisions, positions and opinions within the remit of the SB, in particular with
regard to the preparation of proposals in the field of criteria and candidates for membership in the
Management Board, membership in the SB's committees, and support for the design and
implementation of the remuneration system for the Management Board.
Remuneration of members of management and supervisory bodies
Remuneration of members of the management bodies in 2021 amounted to EUR 594,141 (EUR
1,149,153 in 2020) and remuneration of the supervisory bodies amounted to EUR 113,060 (EUR
121,410 in 2020). The remuneration of each member of the management and supervisory bodies is

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broken down in the accounting part of the report in Chapter VII Related Party Transactions – Information
on Groups of Persons.
Code of corporate governance for publicly listed companies
The Company applies the Code of Corporate Governance for Publicly Listed Companies (www.ljse.si) in
its business operations and, at the same time, a system of internal standards of business conduct and
governance that is within the general recommendations of the Code of Corporate Governance for Publicly
Listed Companies. In accordance with the business decision of the Management Board, the Company
adopts the Code in the form set out in the explanatory notes. Due to the specificities of the governance
of a particular company, in areas deviating from the Code, the legal basis is strictly followed (ZGD-1,
ZTFI-1, MAR, etc.). Below, we provide an overview and explanations of the deviations from the individual
provisions of the Code:
Point 2 – The management of the Company is focused on meeting the objectives of the Company's
strategy until 2023 (Strategic Plan 2019-2023); the Management Board and the Supervisory Board have
not adopted a separate "Corporate Governance Policy" document.
Point 5.5 – For the election of the members of the Supervisory Board, the candidate's explanations of
the nominations are presented in the context of the information provided and in the content required
by the Companies Act (ZGD-1). We do not fully comply with Point 5.5 in this respect, as it requires
public disclosure of potentially sensitive personal data, or the Company does not hold or is not in
possession of the data.
Point 12.8 – The SB's Rules of Procedure do not provide for communication with the public on decisions
taken at its meetings. Communication with the public is the responsibility of the Management Board.
The most important decisions of the SB are published on the website of the Ljubljana Stock Exchange
– SEOnet, and on the Company's website.
Point 18.3 – The SB has not set the terms of office of the commissions (which are composed of SB
members, except for the external member of the Audit Committee). Members of the commissions who
are members of the SB shall cease to be members of the commissions upon termination of their
membership in the SB.
Point 27 – 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 Board and professional departments. Public announcements (SEOnet
and the Company's website) comply with legal requirements and contain all information that enables an
investor in securities to assess the situation and evaluate the impact of a business event on the price of
a security.
Point 27.3 – The Company does not have any internal documents or rules, in addition to the statutory
provisions and rules, which prescribe the restrictions on trading in the Company's shares. Persons to
whom internal information is made available sign a special declaration on the protection of internal
information, and the Company maintains a list of persons to whom internal information is made available
in accordance with the provisions of the MAR Regulation, the Market in Financial Instruments Act (ZTFI),
or the requirements of the Securities Market Agency.
Code of ethical conduct and labour practices
The Company has a Code of Ethical Conduct and Labour Practices, which is published on the Company's
website and sets out the fundamental principles and rules of conduct and behaviour of the management
and all employees of the Company. These principles and rules form the standard for operations,
management and leadership and contribute to the creation of a corporate culture and excellence.

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Diversity policy
The objective of the diversity policy for the management and supervisory bodies is to optimise the
effectiveness of these bodies, thereby enhancing the Company's development, competitive advantages
and business reputation.
Cinkarna Celje, d.d., implements a diversity policy in the management and supervisory bodies, in
particular through an appropriate recruitment and selection process, with the participation of the Human
Resources or Nomination Committee. The diversity policy is not specifically written down. It is observed
and implemented by the Company's bodies in accordance with the legislation in force, through the
Employment Relations Act (ZDR-1), as well as by taking into account the principles and provisions of
the codes, which set out the content and provide recommendations in this area.
Membership is open to any individual who expresses an interest and meets the criteria set out by law,
the Company's Articles of Association and the Corporate Governance Code.
The composition of the Supervisory Board and the Management Board takes into account the following
aspects of the diversity policy: gender, age, education and professional experience. The current
composition of the Management Board is 1/3 women. All members of the Supervisory Board are male.
A Diversity Policy has been developed but not yet adopted. Once adopted, the policy will be published
on the Company's website and SEOnet.
Management
President of the
Management Board
Member of the Management
Board – Deputy President –
Technical Director
Member of the
Management Board –
Worker Director
Aleš SKOK,
univ. dipl. in chem. eng., MBA - USA
Nikolaja PODGORŠEK SELIČ
univ. dipl. in chem. eng., spec.
Filip KOŽELNIK,
MSc in business adm.

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Foundations of development and strategy
Investments
In 2021, we spent € 11.3 million on investments, the purchase of fixed assets and replacement
equipment, and environmental investments.
The largest deviations from the plan are in the area of purchases of fixed assets, where we are 51.55%
under-performing. For replacement equipment, the outturn rate is 121.98%. The overrun in the
purchase of replacement equipment is due to the necessary works that became apparent during the
inspection of the condition of the installations during the autumn overhaul, which could not be inspected
beforehand and the extent of the urgent repairs could not be estimated. In the area of investments, the
execution of the plan was 53.99%. The under-execution is mainly due to the lengthy procedures for
selecting the most advantageous supplier, the pilot testing of various installations, delays in the
preparation of the project documentation and administrative procedures.
As usual, the largest part of the investment this year was in the production of titanium dioxide and
sulphuric acid, to continue the activities of a multi-year project. We completed investments in:
• Installation of parallel storage tanks at the black solution filtration plant;
• Construction of a treatment plant for flue gases from the calcination process (4th electro-
filter);
• Completion of the project for the separate collection of effluents from the Water Treatment
Plant;
• Installation of de-gassing hydrocyclones on the existing gypsum thickener;
• Completion of Stage I of the C line for neutralisation of waste acid;
• Replacement of the sulphur burning furnace and burner during the autumn overhaul;
• Upgrade of the sulphur smelter treatment plant.
We have carried out pilot tests on metatitanic acid digestion, which will serve to select the appropriate
equipment and to proceed with the investment in 2022.
The selection and procurement of equipment marked the start of an investment to replace the ageing
pigment digestion presses.
We have been building equipment for the installation of the Stage II C line for neutralising waste acid.
We have made small investments in the implementation of preventive measures to reduce dust and
have ordered equipment to install a central filter for dust extraction.
From mid-October to the beginning of December, a major overhaul of the titanium dioxide production
plant was carried out (walling of the A section of the furnace and the Venturi calcination flue gas
scrubber, replacement of two gel wash filters, walling of the uncoupling tower, etc.). In addition to the
extensive work carried out in the autumn overhaul, during the year we also restored the second of the
four red gypsum filter presses, two hydrolyzers and one uncoupling tower.
The planned relocation of part of the gypsum pipeline to another route across the Teharje 115 plot,
where the Ministry of Environment and Spatial Planning (MOP) is planning to carry out a restoration of
ther illegal waste dump, was not possible. The MOP was not able to obtain all the necessary consents.
The Polimeri business unit has purchased a robotic cell to operate a CNC machine, which will reduce
labour costs per unit of product.
A sulphuric acid tank was installed and equipped at Kemija Celje for TBCS production.

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A powder varnish warehouse has been set up at Kemija Mozirje.
Two solar power plants have been commissioned and partially realised.
The main part of the funds planned for the use of environmental provisions (97%) was earmarked for
the restoration of the Bukovžlak non-hazardous waste landfill. The works at this facility did not proceed
as planned. Overall, only just over 40% of the planned funds were used. Due to the slipping of the soil
layers during the construction of the western drainage pipeline, we had to suspend the works, order the
design and then the necessary protective equipment to safely carry out the excavation. The other three
projects under environmental provisions are also significantly below plan. Groundwater treatment
options are being examined at the existing acid waste treatment plant. At the high embankment dams
of Za Travnik and Bukovžlak, activities have been slowed down due to the acquisition of the necessary
expertise dictated by the nature of the system (inter-annual monitoring and acquisition of data from
control boreholes).
A test field for the new drainage channel C under the Bukovžlak high embankment barrier was carried
out.
We also carried out investment work on the restoration of individual buildings (TiO2 Operational
Maintenance Building - Phase III, renovation of the Quality Department premises, sanitary facilities at
Kemija Mozirje).
2022 Investment Plans. The total amount of investments planned for 2022 is € 14,229,490. This
includes capitalised own products and services of € 1,143,150, but excludes the foreseen activities for
the reversal of environmental provisions of € 2.4 million. The planned value of investments including
capitalised own products and excluding the planned funds for environmental provisions is 1% lower than
planned for 2021. It represents 7% of planned sales in 2022 and 108% of depreciation in 2021.
Half of total investments will be for investments, 31% for the purchase of replacement equipment, and
19% for the purchase of individual fixed assets.
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 mainly 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.
For some of the larger investments to remove bottlenecks, we will invest in 2022 in preparing the
projects for implementation and, on that basis, obtaining all the necessary permits:
• Installation of the additional 12.10 C storage tank for the discharge of solution from the
uncoupling towers;
• Modernisation of the lime and calcite slurry storage and preparation;
• Implementation of a third vacuum cooling line;
• Installation of the 5th Sulfacid reactor for the treatment of calcination flue gases;
• Expansion of the capacity of the Surface Finishing Plant 2.
For the implementation of the bottleneck elimination, investments are planned in:
• Pumping of the solution from 12.01 A into the uncoupling towers;
• Increasing the capacity for pumping the black solution from clarifiers to filtration;
• Continuation of the investment in the installation of the second stage of the C line of the
Neutralisation Plant;
• Conditioning of the clear neutralising agent to a quality suitable for discharge into the
watercourse;
• Third filter press for the digestion of metatitanic acid
• Installation of the third sand mill for wet grinding of the calcinate.

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Some major investments are also foreseen this year in the area of implementing preventive measures
to reduce dust.
We will upgrade the data network for the production processes at the TiO2 unit and upgrade the control
and management of some of the processes with the most outdated software. We will also start phased
upgrades to the Spekter production information system.
In the production of sulphuric acid, absorption tower 1 will need to be replaced during the next overhaul.
The preparation of the documentation and part of the purchase costs will be incurred in 2022, and the
installation in 2023. The major rehabilitation work will be carried out in the sulphur warehouse, with the
aim of facilitating other logistical routes for the supply of solid sulphur.
Investments will also take place at our Bukovžlak and Za Travnik sites. At Bukovžlak, the design and
construction of drainage C under the high embankment barrier and the sealing curtain on the NE barrier
of the Bukovžlak non-hazardous waste landfill (ONOB) will be carried out. The Environmental provision
will be used for this purpose, as well as for other further work on the restoration of ONOB. The
impermeable cover at the ONOB will be made of red gypsum, for which the access road to the truck
wash ramp at Za Travnik needs to be prepared. The loading ramp here also needs to be reconstructed.
The Polimeri unit will purchase a robotic cell to operate another CNC machine, reducing labour costs per
unit of product.
At Kemija Mozirje, the largest investment will be the upgrade of the powder mill, which will enable the
reduction of the proportion of particles below 10 microns and thus maintain a certain volume of
customers.
In the area of energy efficiency, we will invest in at least two additional solar power plants with a total
capacity of 2 MW, and project the proposals from the energy audit to recover waste heat and reduce
electricity consumption.
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.
Major investments for the purchase of replacement equipment and fixed assets will include:
• Overhaul of the third red gypsum press at Za Travnik;
• Restoration of one uncoupling tower;
• Replacement of the first of two filter presses for pigment digestion;
• Renovation and upgrade of the sand filters in the Water Preparation Plant;
• Replacement of the selector on the two white gypsum centrifuges.
In 2022, as in every year, we will allocate some funds to renovation work in or on buildings, which are
required to ensure structural safety, minimum hygiene, organisational changes and a suitable working
environment.
We also invest every year in measures to improve fire safety.
We will purchase some additional quality control equipment.
We plan financing from our own resources.
Development activity
Revision of the corporate strategy

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We have set ourselves the task of examining how to diversify our programmes. We presented the
identified opportunities to the Supervisory Board. The more promising ones are in the process of being
refined. And they are being pursued further in 2022.
Determination of the maximum possible production volume of titanium dioxide
The first phase of the task focused on reviewing the necessary additions to the production equipment
for the expansion of the volumes within the scope of the granted OVD permit and reviewing the options
for further expansion. We then projected the evolution of emissions at the different expansion scales.
In the context of this exercise, we have also prepared a review of the bottlenecks to the 71,000 t
capacity that we are implementing or planning for next year. The assessment of the real options and
feasibility of further production expansion has not been completed due to missing data from the external
environment and is continuing in 2022.
Energy review
The selected external contractor carried out a review of the situation and a set of possible actions which,
depending on the impact, were included in the 2022 plan.
Development of a copper hydroxide synthesis process
Laboratory experiments were carried out at different concentrations and with different additives. The
results were good. However, an industrial trial showed the need for additional development work, which
had not yet yielded the expected result by the end of the year, and development is continuing in 2022.
Development of a DN 150 ball valve with FEP lining
We have produced component drawings and a workshop plan, and based on these drawings, four test
sets of valve components. The valve body was properly protected, sealing elements and a ball moulding
tool were produced. The valve is ready for commercialisation.
Development of powder varnishes
The planned development activities for the Qualicoat Class 1.5 certification for semi-matt and matt
systems and Qualicoat Class 1.5 for fine-structured surfaces have been completed. The prepared
samples are being tested in an accredited laboratory.
Development of masterbatches
We have developed individual monomasters with different inorganic pigments and carried out market
analysis and interviews with potential customers. We have not yet started marketing monomasters in
2021 due to a shortage of pigments.
In the middle of the year, we launched the development of a bio-polymer masterbatch. Preliminary tests
were carried out with different carrier samples.
Multi-annual research and development tasks in TiO
2
production
• Developing new qualities for existing products and developing new products
• Increasing yields and reducing waste
• Ensure a narrower particle size distribution in calcinate
• Integrated water management
Quality assurance
We have planned 12 sets of internal audits in 2021. We audited business units and departments that
had not been audited recently and reviewed the completion of actions and the effectiveness of previous
audits. The plan paid particular attention to a horizontal audit of the implementation of 11 organisational
rules. The auditors identified 16 non-conformities and made 51 recommendations for improvement.

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The external auditors carried out the ISO 9001:2015 compliance audit for 2021 at the end of May. No
non-conformities were found, and the improvement opportunities identified were taken into account and
implemented in our integrated management system.
The number of customer complaints, claims and comments is regularly monitored and responded to
with corrective actions. In 2021, there were only 9 complaints in total, of which 4 were unjustified
(44.4%), which were resolved to ensure customer satisfaction.
Compared to 2020, the number of complaints has decreased from 17 to 9. Six complaints are related
to Kemija Mozirje products, down from eight in 2020. Two complaints are for Polimeri products and one
for the handling of CEGIPS in Marketing. The other units have not received any complaints for their
products.
We continued our activities on a project aimed at introducing new grades of titanium dioxide. We have
initiated and partially implemented a series of optimisations in individual production processes, which
should help to raise the quality level of our pigments. We have achieved the quality improvement targets
for the printing ink type (RC 813), but we have not yet achieved the expected stability. We have
improved the processability of the plastic type (RC 818) and upgraded it with a new hydrophobic
treatment type (RC 819). We have introduced three new control methods to evaluate the application
properties of pigmented titanium dioxide.
The project to develop a business continuity plan is also part of the broader corporate quality assurance
framework. This task has been stalled in 2021. There were several reasons. With a new person
responsible and the search for a new external partner, we are bringing it forward to 2022.
Continuous improvement, dictated by quality standards and guidelines, is the driving force behind
progress and continuous improvement in all areas of the Company. The CC UM system for collecting
useful suggestions has triggered 0.17 improvements per employee. The highest number of
improvements was in the areas of work organisation, process improvements, occupational health and
safety, and reduction of energy and material consumption.
Statement of non-financial performance
Description of the business model in the non-financial business segment
At Cinkarna Celje, d.d., we strive for compliance at all levels of our operations. We continuously invest
in modernising our technological processes in line with the best available techniques, thereby minimising
our impact on the environment. We ensure healthy and safe working conditions for our employees and
provide them with continuous training.
Quality Assurance is an integral part of the Company's management and is based on the vision of the
growth strategy and key strategic objectives aimed at achieving the satisfaction of owners, customers,
suppliers, employees, the environment and other stakeholders with whom we work. As a chemical
company, we have chosen the challenge of the 21st century to develop titanium dioxide in speciality
forms, which we intend to develop into higher value-added end products.
Titanium dioxide pigment is a special inorganic chemical used in the varnish, paint, plastics, laminates
and paper industries because of its extraordinary optical properties. Cinkarna Celje, d.d., markets the
pigment on global markets, where it successfully competes with international corporations through
continuous advances in technology, formulations, flexibility, reliability, and by achieving the optimal
price-quality-supply combination.

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Production starts in the mills, where the titanium-bearing ore is ground. In the decomposition stage,
sulphuric acid dissolves the ore. The next stage is hydrolysis. In the hydrolysis process, such a clear
solution is heated to boiling point, hydrolytic quenchants are added and water is introduced as a reagent.
The resulting precipitate is already in the form of titanium dioxide, but still contains a considerable
amount of sulphuric (VI) acid and water. The precipitate is washed to the desired degree. The washed
gel is further strained with a filter press and fed into a dryer. The gel thus dried is passed to a calcination
furnace where the precipitate is transformed from the anatase crystalline form to the desired rutile form
of titanium dioxide. This is followed by the final surface treatment process. The calcinate leaves the
furnace and is cooled in a rotating cooling drum. The cooled calcinate is dry-milled and dispersed back
into a slurry, which is further wet-milled. During milling, the suspension is cooled through the casing of
the mill. After appropriate milling, a surface treatment process is carried out in which the surface of the
titanium dioxide particles is coated with different metal oxides, depending on the needs of the final
application. The production of the carrier programme produces two by-products, namely white gypsum
– CEGIPS (intended for the cement industry and agricultural applications), and red gypsum – RCGIPS
(intended for filling in low-rise construction, low embankment construction, and the production of
capping layers).
The business model is to produce as much product as possible, with the highest quality, as efficiently
as possible, while minimising environmental and climate impacts and abandoning unprofitable activities.
We are looking for innovative and sustainable solutions to reduce waste, and we have brought two such
products to the market – CEGIPS and RCGIPS – and are developing new ones. In addition to taking
action to address our operational impact on the environment and climate change, we are proud to offer
products to help clean the air, such as the photocatalytic properties of TiO2 to reduce air pollution. We
are also expanding the range and quantity of copper-based plant protection products, various types of
masters and powder varnishes, and we are processing fluorinated polymers and elastomers.
Company vision
The Company aims to grow and increase efficiency 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.
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.
Values
Core values of the Company:
• Partnership and trust;
• Fairness and respect;
• Creativity and orientation towards development;
• Commitment to sustainable development and the circular economy;
• Loyalty and cooperation in pursuit of common goals.
Level of business model resilience to the impact of the COVlD-19 pandemic outbreak
The COVID-19 pandemic had a positive impact on the demand for the carrier product. This is due to
the increased number of DIY projects. The Company's operations were uninterrupted during the
pandemic.

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Business environment
Compared to the global and regional environment, the political environment in Slovenia is quite stable.
Exports from all manufacturing sectors have improved significantly, thanks to improved economic
conditions in the European market, to which the Slovenian economy is most closely linked. Household
and government consumption is growing. The rise in consumer confidence is due to optimistic
expectations regarding the level of unemployment, savings, the general economic situation and the
financial situation of households.
Population ageing is one of the demographic trends in Slovenia and Europe that will become increasingly
important in the long term. After a decline in 2008-2013, real individual consumption, which is a
measure of the standard of living of the population, has been increasing again in recent years.
We are at the transition to the fourth industrial revolution, which will impact on companies' business
models. It covers a number of content areas that will vary in importance across industries: demand-
driven supply chains, mass data, cloud services, network security, 3D printing, robotics, machine-to-
machine communication, the Internet of Things, augmented decision support and the digital twin.
Increasing pressure for technological solutions to environmental problems: 1. More efficient use of
energy, energy products, raw materials and natural resources; 2. Reduction of the use of
environmentally harmful (input) materials and more efficient use of these in production; 3. Reduction
of waste (especially environmentally harmful), recycling and taking responsibility for the product after
use (circular economy).
No major legal changes are expected until 2025.
During the economic crisis, greenhouse gas emissions fell significantly, with a significant drop in
production, bringing Slovenia closer to meeting its Kyoto targets, while most EU countries were already
on track to meet their commitments before then. The total amount of waste generated has been
increasing again in recent years. Recycling is increasing faster than new waste generation, so landfilling
is decreasing. Many European countries had committed to reduce greenhouse gas emissions to 20%
below 1990 levels by 2020.
Company and its activities
Cinkarna, metalurško kemična industrija Celje, d.d., is organised as a joint stock company, with its
registered office at Kidričeva 26 , Celje, and is entered in the Court Register of the Court in Celje under
number I-402-00. With its 149-year tradition of continuous operation, Cinkarna Celje, d.d., is one of
the most enduring companies in the Slovenian economic area. Until 1968, the company's defining
activity was metallurgy, but with the start-up of the titanium dioxide pigment plant in 1972 and its
subsequent expansion, Cinkarna Celje, d.d., is now classified as a company in the chemical processing
sector. With 824 employees and an annual turnover of € 172.4 million, with around 92% of sales
generated on export markets, we are the number one in the Slovenian chemical processing sector,
making us one of the most important and successful Slovenian industrial companies. Other company
data:
• Tax number: 15280373
• Registration number: 5042801
• Activity code: 20.120
• Size of company: large public limited company
• Financial year: calendar year
Cinkarna Celje, d.d., is a company with a broad production and sales programme. The multitude of
different sales sub-programmes can be grouped into sales groups, which group together products with

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a similar utility. In recent years, the Company has discontinued some of the manufacturing and sales
programmes which did not meet the viability or performance criteria. The more important activities are:
• Production of titanium dioxide;
• Production of sulphuric acid;
• Zinc processing, including zinc alloys, anodes and zinc wire;
• Production of agricultural products, including plant protection products and growing media;
• Production of masterbatches and powder varnishes;
• Fluorinated polymers and elastomers, which are useful for the transport of aggressive media
and the protection of process and machinery equipment;
• Semi-products of titanium dioxide pigment production: titanyl sulphate, metatitanic acid and
sodium titanate; and
• by-products of titanium dioxide pigment production: white gypsum – CEGIPS (intended for the
cement industry and for agricultural use), and red gypsum – RCGIPS (intended for filling in
low-rise construction, low-rise embankment construction, and the production of capping
layers).
The core product and sales group is titanium dioxide pigment, which combines the sale of different types
of pigment. This group is complemented by a range of ultrafine titanium dioxide types, which are high
value-added products that, depending on their crystalline form, can act as photocatalysts or UV
absorbers. They are incorporated in high-technology products (self-cleaning systems, photovoltaics, sun
creams, materials with UV stabilisers, etc.).
Plant protection products are a very important sales group. The core products of this group are copper
fungicides of different formulations and different active substances used (copper hydroxide, copper
oxychloride and tribasic copper sulphate). The strategy in the area of plant protection products is mainly
to emphasise the quality of the products and their comparatively environmentally safe use. In recent
years, we have achieved a significant breakthrough in sales to the demanding Western European
markets. This group is also one of the pillars of the future development of the Company.
The sales of powder varnishes and masterbatches are becoming increasingly important. This is a sales
group which is a vertical extension of the core production of titanium dioxide pigment. The bulk of the
sales of powder varnishes are for anti-corrosion and decorative needs in the production of household
appliances, heating elements and other metalware. Masterbatches are a propulsion product designed to
be incorporated into plastics to improve their properties.
Company organisation and structure
Cinkarna Celje, d.d., is organised as a public limited company, with its registered office in Celje, and
has a dislocated unit called Kemija Mozirje.
Company
Cinkarna, metalurško kemična industrija Celje, d.d.
Registered Office
Kidričeva 26, 3000 Celje
Phone–Head Office:
(+386) 03 427 6000
Fax–Management:
(+386) 03 427 6106
Telex:
36517 METKEM SI
Email:
info@cinkarna.si
Website:
www.cinkarna.si
Dislocated business unit
Kemija Mozirje
Head Office
Ljubija 11, Mozirje
Phone:
(+386) 03 837 0900
Fax:
(+386) 03 837 0950

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The company is organised as a set of organisationally and managerially separate business units and
results centres, centralised support services and a centralised unit for the provision of maintenance
services and energy infrastructure. The Supervisory Board and the Management Board are presented in
the Corporate Governance Statement and the General Meeting in the Company’s General
Meeting/Capital Structure.
General Meeting
Supervisory Board
Management Board
Business units
TITANOV DIOKSID
Director Tomi Gominšek
METALURGIJA
Director Miran Špegel
KEMIJA CELJE
Director Andrej Lubej
KEMIJA MOZIRJE
Director Irena Vačovnik
POLIMERI
Director Roman Deželak
COMMON PROFESSIONAL DEPARTMENTS
Finance Department
Director Jurij Vengust until 30. 6. 2020
Marketing Department
Director Irena Franko Knez
Human Resources General Department
Head Marko Cvetko
Dep. for Occupational Health and Safety
Head Otmar Slapnik
Legal Department
Head Gregor Gajšek
Quality Department
Head Ksenija Gradišek
Environmental Protection Department
Head Bernarda Podgoršek Kovač
Accounting Department
Head Karmen Fujs
IT Department
Head Boris Špoljar
Internal Audit Department
Head Jure Vezjak
MAINTENANCE AND ENERGY
Director Boštjan Podkrajšek
Key markets
The Company's business is focused on European countries and, to a lesser extent, on offset markets,
often denominated in US dollars. In terms of geographical segments, we identify EU countries as the
most important, followed by Slovenia, third countries and the markets of the former Yugoslavia. The
latter are covered in the Sales sub-section. The expected development of sales by geographical segment
is explained in the section Objectives and strategy of the Company.
Objectives and strategy of the Company
Cinkarne Celje, d.d., operates mainly in the chemical processing sector. The Company's core business
is the production of titanium dioxide pigment. The Company operates and trades globally, but generates
the majority of its revenues on the European market. In the financial year 2021, the Company generated
91% of its net sales revenues on export markets. Germany is the largest sales market, accounting for

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approximately one third of its sales, followed by France, Italy, Slovenia, Turkey and the Netherlands. At
the end of 2021, the company employed 793 people.
In the future, the Company will continue to work closely with its employees, business partners and the
local community in order to continue its successful operations and to ensure adequate returns for its
owners.
It is planned 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 will also continue.
As the Company has a high level of awareness of the environmental issues of its immediate
surroundings, additional ways to reduce potential undesirable environmental impacts will continue to be
sought and implemented in the context of its operations (in particular the production process), while
the Company will continue to comply with all environmental legislation and regulatory requirements.
However, a tightening in this area could pose an additional risk.
Over the five-year strategic period 2019-2023, which also takes account of cyclical fluctuations, average
turnover of EUR 190.8 million and average annual revenue growth of 2.3% are projected.
With the aim of increasing sales volumes, the Company will invest an average of EUR 13.4 million per
year in fixed assets and EUR 2.1 million in working capital from 2018 onwards, enabling it to achieve its
targeted organic growth, by making well-considered investments in the renovation, optimisation and
expansion of existing production facilities. The majority of the investments will be directed towards the
growth and development of the titanium dioxide pigment core programme. The investment plans for
the current year are disclosed in the Investment Plans sub-section.
The main objective is to maintain long-term relationships with existing customers and to attract new
customers through the development of higher value-added products based on achieving the required
higher level of quality and an adequate offer of speed, flexibility and quality in relation to price. The
sales focus will continue to be mainly on European markets.
In the next five-year period, the Company's focus in the strategic business area titanium dioxide will be
on attracting new customers from the printing inks industry, where there are significant short-term
opportunities due to the existing excess of demand over supply, while at the same time the higher
customer sophistication allows for higher profitability in the long term and indirectly acts as a hedge
against potential new entrants into the European market with lower-end products. Titanium dioxide
pigment accounts for around 80% of total sales in value terms and will increase by around 10 percent
by 2023.
In developing the core programme, the Company will aim to develop new high value-added products
and vertically integrated products that will allow for technical, revenue and cost synergies, thereby
maximising the competitive advantages of the business environments of the individual product
programmes. The Company's presence in existing markets will be strengthened in the key strategic
business area Titanium Dioxide, as well as in the ancillary areas and programmes Copper Fungicides,
Polymers and Metallurgy. The Kemija Mozirje business area is earmarked for sale in the strategic plan.
The Company will also focus on managing the purchasing process, due to unpredictable business cycles
with significant changes in selling and purchase prices, which can have a significant impact on the
operating result and cash flow.
By making efficient use of the production process, the Company will be able to deliver the volumes of
finished products demanded in time to achieve sustainable long-term profitability under the given

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conditions. The expected EBITDA margin will average 16.6 % and the expected ROE will be 11.5%. The
strategic plan includes a dividend policy which provides for an indicative payout of 75% of the net profit
each year, subject, of course, to possible changes in line with changes in the Company's dividend policy
and in the structure of its sources of financing.
In the coming years, a new cycle of investments will be made, necessary for a stable ongoing operation.
With the investment in the expansion of production capacity at the existing site, the production volume
of titanium dioxide pigment is approaching the regulatory ceiling and alternative options will need to be
sought in the future to further grow the business.
The implementation of the current strategic plan has enabled the Company to meet and exceed all its
performance targets, while at the same time optimising its portfolio of strategic business units or areas
as foreseen for the period.
Main trends and factors
Improving waste energy recovery and waste stream utilisation for titanium dioxide producers. The
development of production by customers is moving towards sustainability and reducing environmental
impacts. Expansion of production capacity, especially in China. Several mergers and vertical integrations
have (and will) take place within the industry. Of the major competitors, some have their own deposits
of ilmenite (titanium-bearing ore).
Factors influencing future business are related to disposable income, DIY projects, construction
investments, colour trends and general economic activity, among others.
Cooperation with stakeholders
The Company has identified relevant stakeholders, their requirements and expectations that affect the
quality management system, the environmental management system and the occupational health and
safety system. Individual relevant stakeholders whose requirements or expectations have an impact on
products and services, on the environment and on H&S are identified in the Stakeholder Registers of
the Company and individual organisational units (business units, departments). For each relevant
stakeholder, the stakeholder's requirements/expectations and actions/implementation are identified and
documented. The stakeholder registers are monitored, reviewed and updated as necessary. Engagement
with stakeholders is an important aspect of corporate governance. We strive to effectively engage our
stakeholders, who we identify as those who can influence or are influenced by our actions, objectives
and policies. We take into account the needs of relevant stakeholders through an established ongoing
dialogue, publishing information in the areas of financial performance, environmental impact
management, health and safety. Regular communication with and consideration of our stakeholders is
essential for the management of our business, as well as for the development and implementation of
our corporate responsibility strategy, and the strengthening of our brand as a reputable business and
local partner. We identify our key stakeholders as:
• Customers, involving them in product development and working together towards long-term
cooperation for mutual business success;
• Employees, who are involved through cooperation with trade unions, workers' assemblies,
works councils, job satisfaction surveys and other forms of participation under ZSDU;
• Investors, which we engage through attendance at investor conferences, analyst meetings and
conference calls following the publication of the annual and half-yearly reports;
• Suppliers with whom we develop partnerships to mutually benefit performance improvement
and promote environmental awareness and corporate social responsibility;
• The local community, which we engage through sponsorship and donations, and through
responsible and professional dialogue on important issues;

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• The media, by providing publications on our website and transparent information about our
business and events in press releases;
Policies
In the following sections, we describe the Company's policies, inter alia, on the implementation of due
diligence procedures, the results of these policies and key non-financial performance indicators. The
main risks, their management and the role of the Management Board are disclosed in the section
Company risks and their management.
Description of the environmental policy
The chemical processing industry, including Cinkarna, plays a central and complex role in the transition
to a low-carbon economy, given the current and future demand for chemicals that enable low-carbon
and energy-saving technologies. However, the impact of the chemicals sector on greenhouse gas
emissions goes beyond the greenhouse gas emissions from direct production facilities and energy use.
Other indirect greenhouse gas emissions come from sources outside our activities, from the raw
materials we buy to the use and disposal of the products we sell. We intend to calculate the carbon
footprint of all our main products and systematically reduce it in the coming years through analysis and
subsequent action. To achieve the meaningful reductions needed to avoid the worst impacts of climate
change, we need to reduce our own emissions and influence our value chain to do the same.
The elements of the environmental, health and safety management system are closely intertwined
between all business processes in the Company, which is why the environmental policy is part of the
Integrated Management System Rules of Procedure. We consider climate-related information to fall
under the category of environmental policy, as demonstrated by our commitment to climate change
mitigation and adaptation, and the conservation of ecosystem biodiversity. We demonstrate responsible
environmental and climate management by:
• meeting environmental legislative requirements;
• identifying the hazards and risks of environmental impacts;
• managing risks and taking action to prevent potential damage to the environment as far as
possible;
• planning and implementing risk mitigation activities, and handling and communicating
effectively in emergency situations to prevent pollution of the environment;
• monitoring the life cycle of products;
• and commitment to climate change mitigation.
Each year, the management sets objectives relating to environmental policy. For 2021, we have
implemented the following measures:
I. To address environmental risks, which included activities in the areas of process safety, the
safety of high dams and solid waste landfill, finding alternatives for process water supply,
meeting regulatory and other requirements, and remediation of old burdens.
II. To define measures and reduce emissions to the environment in the event of emergencies or
changes. These include:
• Training and verification of the competence of the persons responsible for the operation of
the treatment plant at the KC unit;
• Defining measures and preparing work instructions and training in the event of an ethanol
spill at the KM unit;
• Parameterisation of the frequency converters to prevent downtime of the treatment plant
at the calcination site;
• Waste removal at facilities of the Polimeri unit;
• Emergency emission abatement measures at the TiO2 unit;
• Regular pressure gauge checking in place to prevent excessive emissions at the zinc ash
outlet at the Metallurgy unit.

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• Awareness raising of employees on the risks of accidents in the Marketing warehouse.
III. For sustainable management of resources and products:
• In this area, the improvements have resulted in a 2% reduction in energy consumption,
measured as the direct local impact of the improvements made. Cumulative energy
consumption is nevertheless 6% higher than in 2020. The main reason for the increase is
the drop in titanium dioxide and sulphuric acid production during the power outage in 2020.
The computationally higher energy consumption was also driven by a significantly higher
gas consumption (17%), solely as a result of the change in the way energy value is
determined, which was implemented in 2021.
• Through the efficient production of compressed air and the implementation of leak detection
and elimination, we indirectly reduced the specific electricity consumption of compressed
air for TiO2 production by 7%. The improvement to the installation of a 1.5 MW solar power
plant is nearing completion.
• On non-hazardous waste management, we implemented 6 improvements towards finding
solutions to reduce waste at source (recyclability) and a more regulated management
system. The specific amount of non-hazardous waste excluding gypsum was reduced by
18% compared to 2020 and the specific amount of hazardous waste by 50%. We also
pursued the objective related to the implementation of measures to extend the availability
of waste disposal facilities with the aim of extracting larger quantities of CEGIPS, selling it
and thus reducing the load on the Za Travnik waste disposal facility. The amount of CEGIPS
recovered was slightly lower (2.8 t/t TiO2) than the target of 2.9 t/t TiO2, while the amount
of RCGIPS disposed was slightly higher (2.9 t/t TiO2) than the target of 2.7 t/t TiO2. This
resulted in an increase in the specific amount of non-hazardous waste including gypsum of
just under 6%.
• We continued our work on the Integrated Water Management project. The aim of all
activities is to reduce the pollution of watercourses by emissions from our production and
to increase the share of recycled water, thus reducing the volume of fresh water abstracted.
By the end of the year, we had introduced the recycling of water from the thickening of
gypsum slurry for the preparation of a suspension of neutralising agents, for which we
previously used filtered water.
Relevance to national and international objectives
The policy is in line with Slovenia's development objectives 8 and 9 and the seven UN Sustainable
Development Goals. In particular, this relates to SDG 7.2 to significantly increase the share of renewable
energy sources by 2030, and SDG 12.5 to significantly reduce waste generation through prevention,
reduction, recycling and reuse by 2030.
Key non-financial indicators
Field / indicator
Unit of
measurement
2017
2018
2019
2020
2021
Waste treatment
Hazardous waste
linked to
production
t
75.1
42.3
102.6
90.9
27.2
Non-hazardous
waste – landfilled
t
192,241
152,982
181,081
170,953
175,995
Non-hazardous
waste – disposed
t
94.6
105.4
104.1
278.9
243.2
Emissions to air

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Carbon dioxide –
total CO2
emissions
t CO2ek
84,252
78,761
77,545
82,246
72,281
Direct CO2
emissions
t CO2ek
24,825
22,171
24,071
25,597
25,376
Indirect CO2
emissions
t CO2ek
5,9427
56,590
53,474
56,649
46,905
Emissions to water
Chemical oxygen
demand (COD)
t
194.4
161.6
132.4
188.4
114.3
Heavy metals (As,
Cd, Cr, Cu, Pd,
Hg, Ni, Zn)
t Cu
0.09
0.09
0.06
0.04
0.04
Heavy metals (As,
Cd, Cr, Cu, Pd,
Hg, Ni, Zn)
t Zn
0.15
0.21
0.13
0.12
0.09
Other substances
potentially
hazardous to
human health and
the environment
t sulphate
10,968
9,450
9,927
10,447
9,270
Consumption of resources
Electricity
consumption
MWh/EE
0.00210
0.00226
0.00232
0.00221
0.00217
Gas consumption
MWh/EE
0.0024
0.0027
0.0026
0.0027
0.0032
Specific
consumption of
renewable energy
(steam, solar)
MWh/EE
0.00360
0.00371
0.00396
0.00381
0.00401
Water
consumption
m3/EE
0.06301
0.06277
0.06376
0.06495
0.06848
Description of social policy
SOCIAL PROJECTS
At the Company, we are aware of the great importance of developing intergenerational cooperation,
transferring knowledge and building a common value system in our society. That is why we pay special
attention to cooperation with young people in Slovenian primary and secondary schools, educational
institutions and Slovenian universities. We regularly organise visits and presentations, and work
together on research, seminar, diploma and post-graduate theses and scientific papers.
In 2021, no excursions were carried out as a result of the COVID-19 measures, and 76 pupils or students
took part in compulsory traineeships as part of their learning programmes. Of these, two students were
doing their bachelor's thesis and one student was doing his/her master's thesis. We co-financed 8 of
our employees who are studying on the job. In 2021, we continued our scholarship policy. In total, we
have 19 scholarship holders.
We are proud of our multi-year project of intensive cooperation with primary schools, the main purpose
of which is to encourage children's creativity in creating and thinking, and to promote awareness of the
wider societal importance of industrial production and development. Thirteen successive competitions
have been held so far.
- In 2008, we encouraged children to think green with the "Draw your own prize" competition
- In 2009, we drew "Animals in gypsum landfills" together and, while learning about the
animals that live in our waste disposal facilities, taught them about the environmental
acceptability of our waste.

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- In 2010, we worked with children to make bird houses under the slogan "Nature is me", we
made bird cakes and hung them in a park in Celje in the pre-New Year time.
- In the International Year of Chemistry 2011, the "Cool Chemistry" competition helped us to
think and come up with ideas about the meaning and purpose of Cinkarna Celje's products in
everyday life.
- In 2012, we worked on exciting projects to celebrate our 140th year of continuous operation in
2013 and launched the "Caring for the Environment" competition.
- In 2013, we organised the "Let's create a new home for bees" competition and set up a
learning beehive in Socka as part of the competition.
- 2014 was dedicated to recycling waste materials in the "Benches for eager learners"
competition - benches were placed in the Mozirski gaj park.
- The theme of the 2015 competition was to spread awareness of the usefulness of titanium
dioxide in everyday life, through a competition entitled "Titanium dioxide, where can we
find it?".
- The eighth competition in 2016 was the most high-profile to date, with over 40 primary and
secondary schools taking part and the title "Pots and planters to make your flowerbed
more colourful". Children imaginatively painted flower pots, which were planted with spring
flowers and placed on the roundabouts of Celje on Mother's Day.
- In 2017, we held our ninth competition, "Let's Draw Cinkarna". Children painted business
units and departments on white T-shirts and paper to learn about the professions and activities
in our company. The closing ceremony was organised with a cultural programme at the Celje
Central Library, where the works were also exhibited. 37 schools and over 1000 children took
part.
- The title of the tenth anniversary competition was "Cinkarna celebrates and makes comics".
Our anniversaries were the main theme of the challenge to young creators. They had to show
the 145-year development of the company through a comic - from the arrival of the train in
Celje, the construction of the factory and the training of the workers to the installation of the
first water treatment plant, the closure of some programmes, the development of new
technologies and products, the modernisation of processes and the introduction of the latest
technologies to operate safely in the environment. 450 children made 72 comics about the
history of Cinkarna.
- In 2019, we invited primary and secondary school students and mentors to explore our products.
We called the competition "Find the products of Cinkarna Celje". The task was focused on
creating various fun board games that linked our products to each other and to the end products
in our everyday use. This was a fun way to reinforce young people's awareness that without our
industry's products, we would not have a multitude of everyday things at our disposal. 31
schools took part, 560 students participated and 40 board games were made.
- In 2020, despite the outbreak of COVID-19, we managed to organise the "Making our lives
better" competition. We encouraged children to look through Zinc Glasses at the past and
present of how our company operates, and to compare how we have progressed. Around 550
students from 30 primary and 3 secondary schools took part, making around 120 different
glasses and 7 videos.
- For the 2021/22 school year, we launched a competition with the slogan "Put old things in
order, titanium dioxide will help you do it". We encouraged students to refurbish old chairs
and also promoted the circular economy by demonstrating the use of our products in paints and
varnishes. 530 children took part in the competition.
All of the above-mentioned contests and competitions have been extremely well received and well
attended, have involved schools and institutions from the wider Celje region, and have enriched the
participating children, teachers, educators and, of course, the employees of Cinkarna Celje, d.d., in
accordance with their purpose.

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In 2021, we also responded to the invitation to participate in the 52nd edition of the Golden Rose and
Broom Awards (“Zlata vrtnica in metla”) organised by the Celje Tourist and Cultural Association. We
received a silver award in the commercial buildings category for our beautifully landscaped environment,
garden and flowers.
Traditionally, we organised a food collection campaign with the SIBAHE (Slovenian Food Bank)
association in the pre-Christmas time, where we participated as a company and collected a larger
amount of food for people in need.
We continued our traditional cooperation with the Cerebral Palsy Association SONČEK, selling their
handmade products in our main dining room in the run-up to Christmas, and built on it in the run-up to
Easter. The response of the staff was extremely good, as we raised a lot of funds to ensure the
continuous operation of the association.
In the Logarska dolina valley, our holiday home provided training for the Cynological Society of Rescue
Dogs and a three-day stay (school in nature) for a group of primary school students with an adapted
programme.
We helped our employees in need. We paid two solidarity grants and one severance payment to the
relatives of one of our employees who died.
Our two multi-purpose rooms have been used for various sports and dance activities for our employees
and external participants.
In December, due to measures related to COVID-19, we unfortunately did not hold our traditional New
Year's Eve gathering for our pensioners for the second time in a row. However, we additionally
distributed wall calendars to our pensioners along with the traditional New Year greetings and sent each
pensioner an issue of the internal Cinkarnar magazine.
We organised one exhibition of our staff in the main dining room and in a separate room. In 2021, in
cooperation with D Celje, we organised a group vaccination against COVID-19 for our employees four
times.
We regularly communicate our plans and achievements to all our stakeholders through various forms of
communication. For internal communication purposes, we issued 7 notices by Cinko and Cinka – our
mascots – which encourage employees to be more productive, economical and safe, and inform them
of important information in a humorous way. We also published 2 Newsletters, 2 issues of the Cinkarnar
magazine and 26 issues of the Current News for Employees. External communication was carried out
through SEOnet, our website and Press Releases distributed to journalists. In 2021, we issued 11 Press
Releases and held two press conferences.
DONATIONS AND SPONSORSHIPS
We believe it is our duty to operate and do business in a long-term and sustainable way, both in terms
of our impact on the environment and in relation to the wider social community. We are aware of our
role and importance, and therefore we generously encourage, support and finance activities that
improve the quality of life and work of people and the community as a whole.
We place particular emphasis on supporting activities aimed at the development and progress of children
and young people.
In 2021, we allocated € 637 thousand, or 0.33% of total sales, to various sponsorships and donations.

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As a socially responsible company, we support sporting, cultural and, above all, environmentally
oriented activities. In line with our strategy, we allocate 95% of our sponsorship and donation funds to
sport, 1% to culture and 4% to other activities.
The most important areas and activities in which we invest resources and develop responsibly together
with our promoters are:
- Sports associations and clubs (we are the general sponsor of the Celje Women's Basketball Club
and the Kladivar Athletics Club, we also sponsor RK Celje Pivovarna Laško, RK Gorenje Velenje,
Celje Football Club, KK Celje, KK Šentjur, HK Celje);
- Artistic creation, work of cultural institutions and associations (SLG Celje, Institute for Cultural
Events and other cultural and artistic associations);
- Educational, educational and charitable organisations and associations (voluntary fire brigades,
schools, etc.).
In most cases, and especially when larger investments are involved, we are closely involved in the
management, operation and control of associations, clubs and institutions. In this way, we actively
participate, assist and ensure that the funds are used for the right purpose.
Relevance to national and international objectives
This policy is in line with the 6th development objective of Slovenia to promote social and environmental
responsibility and to foster creativity. It is also in line with the various UN objectives pursued and
implemented by the above-mentioned organisations through donations or sponsorships.
SOCIAL POLICY
2017
2018
2019
2020
2021
Number of excursions
and interactions with
schools
Number
14
5
6
1
0
Number of interactions
with the local
community
Number
3
2
0
0
0
Volume of sponsorships
and donations
In € 000
355
735
740
688
637
Number of schools
participating in projects
Number
37
30
31
33
30
Number of different
activities for employees
Number
14
14
14
14
14
Number of forms of
internal communication
Number
44
34
29
50
37
Description of the human resources and occupational safety policy
Human resources policy
At Cinkarna Celje, d.d., a basic chemical processing company integrated on the edge of the industrial
zone of Celje, we offer interesting and socially secure work, with the opportunity for continuous learning
and personal development, as well as efficient and responsible work. By developing a sense of belonging
to a company with a tradition of more than 149 years and responsibility towards the micro and macro
environment in which we operate, we guide our employees towards respect for sustainable development
and an awareness of respect for norms and ethical attitudes towards fellow human beings and the
immediate and wider social environment.

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As at 31 December 2021, Cinkarna had 793 employees, which means a reduction of 31 employees, or
3.8%, compared to the end of 2020. There are minor changes in the number of employees by business
unit, with the exception of professional departments and Kemija Mozirje, where the number of
employees has decreased significantly.
As at 31 December 2021, the average age structure of the company was 47.13 years (men 45.03 years
and women 50.07 years). The age structure remained at a similar level as in 2020, due to 51
terminations and 20 realised recruitments, as well as the continued optimisation of the number of
employees by organisational unit. The average age increased marginally by 0.03 percent, which is
reflected in the continuation of the positive trend of gradual rejuvenation of the workforce.
Since 1985, when the Company's management embarked on a long-term restrictive staffing strategy
and the headcount stood at 2,427, the number of employees has been reduced by 1,634, or 67.3
percent, which, while operating in a global world market and restructuring internally, has undoubtedly
kept the Company alive and competitive in increasingly challenging global markets where it is exposed
to ruthless global competition.
In 2021, in order to update the existing knowledge and ensure the regulatory compliance of employees,
in light of the restrictions and measures related to the COVID-19 epidemic, the Company implemented
8.67 hours of training per employee (2020 – 11.97 hours of training/employee), with a budget of
€ 206.2/employee (2020 – € 273.8/employee). The largest share of training is mandatory, mainly in
the areas of occupational health and safety, handling hazardous chemicals, fire protection,
environmental protection and standards management, which we have adapted operationally to the
constraints and measures through organisational measures. At the individual level, due to the
exacerbated situation caused by the COVID-19 epidemic and the restrictive measures regarding the
gathering of persons at both company and national level, as well as the freezing of the vast majority of
training courses, we implemented significantly less content that was focused on the individual's areas
of expertise. Most of the individualised content was delivered through electronic means and applications.
In 2021, 3,098 participants took part in specific functional training both in-house and off-site. For the
reasons described above, the total number of training hours was 6,947 (10,065 in 2020), a decrease of
31%, and we allocated 26.8% fewer resources to training than in 2020.
In the field of social work, activities in 2021 included individual problem-solving, the deployment of
disabled workers, ergonomics, employee prevention, and the retirement of employees who meet the
conditions for retirement.
The most common problems have arisen in the deployment of workers with permanent and temporary
disabilities. In fact, there is an increasing number of workers who have restrictions at work due to a
medical condition. At the end of 2021, the Company employed 55 persons with disabilities, a decrease
of 3 persons with disabilities, or 5.2%, compared to the end of the previous year. The proportion of
persons with disabilities in the Company's workforce as a percentage of the total workforce in 2021 is
on a downward trend, still at a relatively high level of 6.9%, and exceeds the statutory quota for
companies by just under one percent. Thanks to an active policy of cooperation with the Occupational,
Transport and Sports Medicine and the Disability Commission of ZPIZ, the proportion of disabled persons
in relation to the total number of employees has decreased for the fifth year in a row, so the positive
trend is continuing.
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. The main reason is the nature of production in the past and, despite technological
modernisation, no improvement can be expected in the near future.
External fluctuation in 2021 is 6.3% and total fluctuation, including internal transfers, is 9.1%. External
fluctuation is at the same level as the previous year, while total fluctuation is 3.2% lower (12.3% in

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2020), which is attributable to the poor internal dynamics of redeployment within the Company's
organisational units, a higher number of retirements and the reduction of staff through soft methods to
optimise the number of employees by organisational unit.
Recruitment and education policies are having a positive impact on the qualification structure, which is
visibly growing despite long-term staff optimisation.
Monitoring and designing employment and education policies shows a decline in the unskilled labour
force and an increase in the corresponding highly educated workforce. Recruitment policies, internal
redeployment and job pooling have a slower but positive impact on the matching of actual and required
qualifications, and the Company is willing to invest only in those staff whose qualifications are of benefit
to the Company and the needs of the work process, or who are identified as key to the future
development and growth of the Company. The recruitment and training policy has had a positive impact
on the qualification structure, which is growing visibly despite the long-term optimisation of the
workforce, while at the same time realising a greater number of new recruitments.
There is also a positive trend towards a reduction in the number of NK and PK employees and the
recruitment of staff with IV, V and VII levels of education, which has a positive impact on the increase
in the educational structure within the Company.
The average absenteeism rate in 2021 increased by 1.1% to 22.1% compared to the previous year, due
to higher sick leave, mainly due to COVID-19, and consequently more absenteeism and less leave taken
in the current year to ensure the smooth running of the Company's operations (of which 7.3%, or 33%
of total absenteeism, was due to sickness, or 0.9% more than in 2020).The average absence rate in
2021 was 22.1%. The percentage of sickness absence at the Company level increased by 14% compared
to the previous year.
The structure of the disease burden varied. It increased in all business units and departments, with the
exception of professional departments and Kemija Celje. The causes of absenteeism at Cinkarna Celje,
d.d., and the related sick leave can be found mainly in the following reasons:
• Nature of the work (hard, physically demanding work);
• Significant increase in injuries outside work and maternity absenteeism;
• Age of the population (which has a marked impact on absenteeism, with an average age of 46.92
years);
• Four-shift or multi-shift work (40.9% of workers work multiple shifts);
• Higher number of people with disabilities (7.0% of all employees);
• Rising numbers of long-term sickness absence, mainly due to:
o serious illnesses,
o impairments of the locomotor system,
o cardiovascular diseases.
At Cinkarna Celje, d.d., we have taken a number of measures to prevent the spread of coronavirus. To
ensure safety, there are prescribed preventive measures, such as wearing masks, ventilation, etc. In
exceptional circumstances (e.g. declaration of an epidemic) and when the nature of the work permits,
Level of education
2020
2021
No. of employees
Share in %
No. of employees
Share in %
VIII
18
2.2
19
2.4
VII
137
16.6
139
17.5
VI
54
6.5
56
7.1
V
277
33.6
269
33.9
IV, III
265
32.2
250
31.5
II, I
73
8.9
60
7.6
As at 31 December
824
100.0
793
100.0

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44
employees are allowed to work from home, which is regulated in more detail in the Rules on Working
from Home. Employees working at a company site or working from home are subject to the Information
Security Policy, which governs, inter alia, the authorisation and method of remote access to the internal
network.
For 2022, we plan to have 791 employees at the end of the year. The headcount plan is based on the
projected production and sales plan (including investment plans), taking into account the strategy of
retirement options in 2022, in correlation with the modification of the change in the Company's
organisational structure, while optimising the economics of production processes and increasing activity
in specific areas of expertise. The number of employees in 2022 will be lower than in 2021 due to the
optimal replacement of staff in correlation with the number of retirements foreseen. 30 retirements are
planned for 2022, part of which will be replaced by new recruits, the rest will be recruited according to
the needs of the work processes and the introduction of new technologies.
We will continue our policy of productive redeployment within the company, optimising the Company's
organisational structure and reducing the share of unskilled workforce through selective recruitment.
We will also seek to optimise the share of administrative staff through consolidation and redeployment.
In 2022, we will also improve the skills structure of our workforce by recruiting at higher qualification
levels (replacement) and supporting/promoting training. Progress will be evident in particular in the
area of reducing the % of total employees with qualification levels I and II, and, on the other hand,
improving the qualification structure within qualification levels V, VI, VII and VIII (increasing the
structural share of employees with secondary and higher/college education).
Relevance to national and international objectives
This policy is in line with the 7th development objective of Slovenia to promote activities to strengthen
the physical and mental health of workers, health and safety at work, to facilitate the reconciliation of
work and care responsibilities, and to create quality jobs that generate higher added value, are
environmentally responsible and provide conditions for adequate pay and a high-quality working
environment. The policy is also in line with UN Sustainable Development Goal No. 8.
Key non-financial indicators
Human resources policy
2017
2018
2019
2020
2021
Age structure
of employees
Years
48.40
47.91
46.87
46.92
47.13
Absenteeism
%
5.83
5.43
6.70
6.40
7.30
Number of
disabled
persons
Number
83
76
63
58
55
Cost of
training
€
0.20
0.28
0.29
0.22
0.18
Total number
of training
hours
Hours
18.17
18.97
18.86
11.97
8.67
Fluctuation
(internal and
external)
%
5.2 (9.2)
4.2 (4.2)
9 (12.3)
6.3/12.3
6.3 (9.1)
Health and Safety
We have implemented a system to identify potential hazards and take action when near misses occur.
We identified 47 potential hazards, which we addressed on an ongoing basis. 6 near misses were
reported. The Minute for Safety activity took place in various formats and time intervals in the production

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work centres. Identification and breakdown of process risks in the area of occupational health and safety,
as well as measures to reduce emissions into the working environment, were carried out in all production
units.
There were no serious accidents at work in 2021. We dealt with 10 minor accidents, 2 fewer than in the
previous year.
We made small investments in preventive measures to reduce dust and ordered equipment for the
installation of a central filter for dust collection at the Titanium Dioxide Plant. Activities are ongoing to
minimise dust, despite the conclusion that CLP classification is not required for our products.
In the previous year, we allocated the following amounts to occupational health and safety and fire
protection (excluding preventive maintenance carried out on work equipment):
COST TYPE
€
%
Technical protection at work
83.9%
- personal protective equipment
337,819.29
39.4
- direct costs to the company of work-related injuries
260,348.46
30.5
- costs of work-related injuries (employer contribution-BS)
64,704.78
7.6
- warning notices (stickers, signs)
2,237.98
0.3
- measurements in the working environment
20,260.00
2.4
- training for safe and healthy work
3,360.00
0.4
- inspections of work equipment
26,742.40
3.1
Occupational health
9.9%
- preventive health checks
56,267.47
6.6
- beverages
15,945.60
1.9
- biological monitoring
2,418.00
0.3
- health promotion
1,398.73
0.2
- first aid costs (lockers, sanitary supplies)
2,878.61
0.3
- disinfection, disinsection, deratisation
5,854.00
0.7
Operational fire safety
6.2%
- funds earmarked for fire safety (spare parts for fire extinguishers, fire
extinguishers, hoses, couplings, protective mats, inspections, fire safety
plans, etc.)
52,763.24
6.2
TOTAL
852,998.56
100
The Occupational Safety and Health Department works to ensure that legislation on occupational safety
and health and fire safety is complied with. By introducing activities to identify, record and eliminate
potential hazards and near misses in the working environment, the Company is actively working to
reduce accidents at work and improve conditions in the workplace. We work to prevent fires through
preventive fire safety measures and regularly monitor, inspect and service firefighting equipment to
ensure active fire protection. In the area of occupational safety and health, we have set 3 indicative
targets for 2021.
I. Zero injuries at work
The objective is long-term. We aim to achieve it in steps, through a range of prevention and
improvement activities. The number of work-related injuries has decreased by 2 injuries
compared to 2020. The low PRP factor indicates that all injuries were of a minor nature.
II. Improvements in safety, health at work and fire safety
By identifying and breaking down process risks that can have a negative impact on health and
safety at work, we have tackled the potential causes of occupational injuries. The table below
shows the objective and the realisation of the identified and disaggregated process risks by
production unit. Of the 16 targets set, 14 were achieved.

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46
III. Organising and implementing employee health promotion
The Company regularly promotes the health of its employees through a dedicated programme.
In the past year, due to the declared epidemic and the implementation of measures to prevent
the spread of infectious diseases, we had to modify the programme during the year or cancel
those activities that were not in line with the measures. Despite this, 9 activities were
implemented with some adjustments:
- Control blood fats and blood sugar;
- Body composition measurements, analysis and the production of a report with
recommendations for the individual;
- Performing HAG tests for COVID 19;
- Performing tests for the presence of antibodies to SARS-CoV-2;
- Implementation of measures in the event of elevated temperatures in workplaces during
the summer months (article/intranet);
- Publication of an article on COVID-19 in the internal newsletter;
- Promotion of a healthy breakfast;
- Implementation of activities to encourage employees to be vaccinated against COVID-19;
- Implementation of seasonal influenza vaccination.
Relevance to national and international objectives
The objectives are in line with the 7th development objective of Slovenia, namely to promote activities
to strengthen workers' physical and mental health, health and safety at work and to facilitate the
reconciliation of work and care responsibilities. It is also in line with the UN Sustainable Development
Goal 8.8 to protect workers' rights and ensure a safe and secure working environment.
Key non-financial indicators
HR POLICY AND OCCUPATIONAL SAFETY
Occupational safety and occupational diseases
2017
2018
2019
2020
2021
No. of reported near-
events
Number
9
5
3
3
6
No. of potential hazards
recorded
Number
79
61
56
47
32
No. of potential hazards
eliminated
Number
65
57
52
47
32
PRP factor
Number
13.0
5.7
5.0
4.7
8.5
No. of work-related
injuries
Number
14
15
13
12
10
No. of days lost
Number
837
346
334
329
682
No. of injuries/100
employees
Number
1.6
1.7
1.5
1.4
1.2
No. of injuries while
travelling
Number
0
0
0
0
0
No. of days lost
Number
0
0
0
0
0
PRP factor – the ratio between the number of injuries, sick leaves and the number of employees (frequency and severity factor)
Description of the human rights policy
We respect human rights as laid down in internationally recognised principles and guidelines. In our
work, we are committed to tolerance, mutual respect and respect for basic human rights. We reject any

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47
form of ill-treatment, harassment or discrimination. We act ethically and professionally and in a manner
consistent with the values of society. We expect this commitment from our management, employees
and business partners.
Recruitment and staffing is based on the principle of non-discrimination and equal opportunities,
ensuring conditions for the personal development of employees. We create conditions for the well-being
of all employees at work, while paying particular attention to personal and professional development.
In line with the Diversity Policy, we respect the principle of inclusion and equal opportunities, including
in the composition of supervisory and management bodies.
We also pay special attention to the protection of personal data. Personal data is protected in accordance
with EU Regulation 2016/679 (GDPR) or applicable domestic law, if different or stricter rules are
prescribed.
We respect the workers' right to organise and are committed to ensuring that the dialogue between the
social partners is conducted professionally and in accordance with the law.
In the event of any perception of illegal or unethical conduct that damages the reputation or business
of the Company and violates the dignity and personal integrity of an individual employee, we are obliged
to report it immediately and to initiate appropriate procedures or activities.
The company has a Policy on Prohibition of Sexual and Other Harassment and Bullying in the Workplace
(with the positive opinion of the Works Council and both trade unions), which has been adopted by the
Company's Management Board. Accordingly, the Company has a designated officer to receive reports,
provide assistance and information. This officer is a trusted person to whom a person/victim who
has suffered sexual or other harassment and ill-treatment in the workplace can turn for advice, support
and information on measures to protect him/her from sexual and other harassment and ill-treatment.
Relevance to national and international objectives
The presented objectives are in line with the 10th development goal of Slovenia, namely to protect all
human rights and fundamental freedoms, eliminate discrimination and ensure equal opportunities at
national, regional and global level, and with the UN Sustainable Development Goal 16.b to promote and
implement non-discriminatory laws and policies for sustainable development.
Key non-financial indicators
HUMAN RIGHTS POLICY
2017
2018
2019
2020
2021
Number of
cases of
discrimination
and action
taken
Number
0
0
0
0
0
Description of the anti-corruption and anti-bribery policy
Employees are obliged to consider the best interests of the Company before their own interests or the
interests of third parties in the performance of their duties and the exercise of their rights and
obligations, as well as in making business decisions and all actions on behalf of Cinkarna Celje, d.d.
Cinkarna makes donations and sponsorships exclusively in line with the Company's mission, vision and
values, mainly in the fields of sport and culture.

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48
Cinkarna competes with its market rivals only in a fair and honest way. We seek and develop competitive
advantages only by increasing our efficiency and productivity, never by unethical or illegal activities and
actions.
The Code of Ethical Conduct and Practice sets out in more detail the appropriate and expected
behaviours.
There is a mechanism in place to disclose or report possible misconduct, which has so far not been
identified.
Relevance to national and international objectives
This objective is in line with the 10th development objective of Slovenia, namely to prevent, detect and
sanction acts of corruption. It is also consistent with SDG 16.5 to significantly reduce all forms of
corruption and bribery.
Key non-financial indicators
ANTI-CORRUPTION AND ANTI-BRIBERY POLICY
2017
2018
2019
2020
2021
Confirmed
cases of
corruption
and action
taken
Number
0
0
0
0
0
Due diligence
Integrated management system
The Integrated Management System (IMS) is an integral part of the management system of Cinkarna
Celje, d.d. It covers the basic elements of management and operations for all activities of the Company
in accordance with the requirements of ISO 9001 (Quality Management System), ISO 14001
(Environmental Management System), ISO 45001 (Occupational Health and Safety Management
System) and, for the Mozirje site, the EMAS regulation. The compliance of the system's operation with
the requirements of the standards is verified annually by the SIQ certification body (the Slovenian
Institute for Quality and Metrology). In 2021, the audit of the Integrated Management System and the
EMAS Regulation (for the Mozirje site) took place in May. No non-conformities were identified and the
recommendations for improvement made were followed. In accordance with the requirements of the
EMAS Directive, an Environmental Statement for Kemija Mozirje was produced – no comments were
made by the environmental verifier during the audit. In the final report, the lead auditor stated that
Cinkarna Celje, d.d., implements, maintains and develops a management system in compliance with
the requirements of ISO 9001, ISO 14001, ISO 45001 and the EMAS Regulation.
Responsible Conduct Programme
By the end of June 2021, we submitted a new report under the Responsible Conduct Programme (POR)
for 2020. With the fulfilment of the 2021 obligations, we have regained the right to use the POR logo
(CEFIC) until February 2023.
Environmental due diligence
Activities in this area date back to 2013, when the risk of old burdens in areas of current production
was identified.

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49
The contractor CDM Smith has prepared a proposal for remediation measures for two so-called "hot
spots" in 2021. The proposal includes several solutions, which require an extremely high financial
investment for a very small effect. We have therefore started to investigate the possibility of chemically
fixing the contaminated groundwater at our existing wastewater treatment plant.
HACCP system management
We maintain a HACCP system in our food facility, which was introduced in 2004 and completely
overhauled in 2017 in collaboration with the National Laboratory for Health, Environment and Food
(NLZOH). The system is consistently implemented, thus reducing the risk of contamination. Continuous
improvements are being made. We are supervised and advised by the NLZOH laboratory, which carries
out two inspections a year in the central kitchen and one inspection a year in the Marketing and
Maintenance distribution areas. No non-conformities were detected in the 2021 inspection. We have
received two recommendations which we have followed.
The overall HACCP system is very comprehensive and requires constant monitoring and updating, and
it requires determining the appropriateness and necessity of individual procedures. To ensure successful
implementation, in cooperation with the National Laboratory for Health, Environment and Food, we
organise bi-annual training for all employees.
Financial and legal due diligence
The Company does not have a specific policy on the implementation of financial and legal due diligence.
In the case of financial and legal due diligence, procedures are carried out in accordance with the needs
of the client and information is disclosed/prepared in accordance with the legislation in the relevant
areas.
Company risks and their management
Cinkarna Celje, d.d., is a regional company operating globally and in this context faces risks of an
economic, environmental and social nature. Risks are perceived as single or a set of related events that
have the potential to have a significant impact on the achievement of the company's tactical and
strategic objectives and/or on its ability to operate in the long term. These events have, of course, both
positive and negative impacts, and consequently those with potential negative impacts are risks and
those with potential positive impacts are opportunities. The risk management process/system (RMS)
itself is designed and operates in the same and complementary way in both risk management and
opportunity exploitation.
The Company's risk management system is seamlessly integrated into the overall business processes.
Its architecture, process structure and organisation (in terms of authorisation and responsibility) is a
composite of corporate knowledge, experience of the specific external/internal environment and
guidance, norms, frameworks of international RM standards (ISO31000, COSO, RME/ferma, etc.) and
established positive practices in the industry.
RMS integration into business processes and their content
The risk management system itself combines the sub-processes of risk identification, risk
assessment/evaluation, risk management, control and reporting. The input to the RMS is data obtained
by observing and analysing the external and internal environment, while the outputs of the RM process
co-define the business processes in interaction with the operational, tactical and strategic planning
processes. The RM process is illustrated schematically below.

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50
The sub-process of risk assessment and evaluation is of systemic importance. To this end, we use a
uniform way of describing and defining risks and a combined quantitative/qualitative method for their
evaluation. Risks are evaluated on the basis of the magnitude of their impact and the likelihood of their
occurrence. We structure the extent of the impact on the Company's results or damage as follows:
- Low: < €2 M;
- Medium: > €2 M < €5 M;
- High: > €5 M.
However, the probability of occurrence is defined in a combined/descriptive way, certainly based on an
arbitrary experiential method:
- Low probability: the probability of an event occurring in the next 5 years is low;
- Medium probability: the probability of an event occurring in the next year is low, the probability
of an event occurring in the next 5 years is significant;
- High probability: the likelihood of an event occurring in the next year is significant.
This way of structuring risks allows for relatively clear definition of materiality, ranking and prioritisation.
Active operational risk management and risk control encompasses various tools and combinations of
tools, such as risk avoidance, elimination of sources of risk, acceptance of risks and their integration
into the business model, transfer of risks to external partners, reduction of probability, limitation of
consequences, etc.
Cinkarna Celje, d.d., is a long-lived company with a traditionally cautious approach and a business
culture that is averse to risk-taking or risk-taking business. As a consequence, the mix of measures is
predominantly focused on risk aversion and risk elimination, and less on the "trade-off" between risks
and returns.
Organisation and responsibilities of the RMS
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
CONTROL & REPORTING
MONITORING & ANALYSIS
IDENTIFICATION OF RISKS AND OPPORTUNITIES
BUSINESS PROCESSES
STRATEGIC AND
OPERATIONAL
PLANNING
RISK MANAGEMENT:
- description/estimate
- evaluation
- decision making
/management

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51
The risk management system and its effective functioning is the direct collective responsibility of the
Management Board. The Management Board defines the process, supervises it and makes the key
decisions (strategic development, investments, divestments, portfolio of business segments, etc.). The
system's governance is divided into key areas (sales, production, finance, ecology and human resources)
for which the individual members of the Management Board are individually responsible.
The Management Board is directly supported by the Directors and Heads of business units and support
services, i.e. the Management Board College, which meets operationally at least once a quarter. In
terms of integration into business processes, the support of the Finance, Accounting, Internal Audit, IT
and Plan & Analysis divisions is crucial. Coordinated action by all RM stakeholders and clearly defined
responsibilities are a prerequisite and ensure successful integration of RM into the Company's tactical
and strategic plans and operational business processes.
Specific risks and opportunities related to individual production-sales or specific areas such as human
resources, security, IT security, occupational safety, etc., are managed by managers at the level of
organisational units or processes, in compliance with organisational regulations/working instructions,
and systematically reported to the level of the Management Board College, which is responsible for
ensuring that individual risks are properly recorded and that appropriate management actions are
initiated.
The College monitors the functioning of the system and reports to the Internal Audit Department. The
Supervisory Board monitors and is informed of the functioning and findings of the RMS and internal
controls, in accordance with ZGD-1. The external audit verifies the establishment and functioning of the
RMS and internal controls in accordance with the ZR.
The Company reports to the external public on the risks of the Company's operations and their
management in a formal format in an annual and semi-annual report (published on SEOnet and on the
Company's website), i.e. every 6 months.
Key building blocks and tools of the RMS
- The most important integration and implementation tool of the risk management system is the
"Integrated Management System" (ISO 9001, ISO 14001, BS OHSAS 18001, EMAS), which
combines data monitoring/collection, analysis, processing and evaluation, action planning,
implementation, monitoring & control, and action (PDCA) in a formal and standardised way,
and finally reporting to the Management Board College and the Management Board.
- A specific tool of the RMS is the extended risk catalogue, which is regularly updated and kept
up to date in line with changes in the environment, RM actions and strategic choices. The
structure of the risk catalogue reflects the structure and hierarchy of business processes and
organisational units. The risk catalogue is directly integrated into the Integrated Management
System process and forms its database. The recording, monitoring and reporting processes
are comprehensively computerised. The company's business risks are dynamically grouped
according to the following carrier groups:
I. Sales and procurement risks
II. Production risks
III. Financial risks
IV. Spatial, environmental and regulatory risks
V. Human resources and organisational risks
VI. Support process risks

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- Regular system reporting to internal users, integrating data from the very large ORACLE
database (using internally developed software and tools) and external databases (whether
open source or payware). Reporting is the responsibility of the Accounting Department or the
Planning and Analysis Department. Specific information is produced by specialised
organisational units using the same tools. The reporting dynamics are monthly.
- An important part of the RM system is the strategic planning process, which integrates all
strategic risks and opportunities and sets the basic/key directions for the future development
of the Company. Within the strategic planning process, standard tools such as SGA, SWOT,
PA, etc. are actively used. The time horizon of the Company's strategic planning is 5 years.
The Management Board is responsible for the strategic planning process.
The Risk and Opportunity Management System is constantly changing dynamically and adapting to the
demands or challenges of the environment, while integrating the development of knowledge and positive
international practices and experience.
The overview of key risks below is defined and updated to the situation and expectations prevailing at
the time of writing this report.
I. Sales risks
Product sales risk
Probability of occurrence
Amount of damage
Medium
Medium
Description
The risk is related to the possibility and ability to sell products successfully in the
target markets. It relates to the increasing bargaining power of customers, the
(in)stability of markets, the increasing power of competitors (due to capital
concentrations) and the adequacy of the elements of the own market mix (price,
product, market, promotion). At the same time, the problem of increasing
production capacity in China is becoming a long-term trend which will have a
significant impact on the structure of the industry in the longer term. Sales of the
carrier product are also partly influenced by the change in consumption habits
resulting from the epidemic.
Management
We directly mitigate risk by expanding our sales network, diversifying our product
and sales portfolio, introducing new and shortening existing sales channels,
developing marketing partnerships and developing new products to enter new
markets and industries. In recent years, we have also been actively reducing the
risk of product sales by optimising our sales portfolio in terms of eliminating
products with high market risk. Through targeted technology investments, we
are focusing our sales portfolio on applications and markets that are more
sophisticated 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 pigment. Indirectly, we also manage sales
risks through systematic monitoring and benchmarking of relevant industries
(competitors and customers), participation in marketing & industry meetings and
the introduction of quality, safety, environmental and health management
standards. We also manage risk by strategically developing and maintaining so-
called offset markets (USA, Middle East) where we can direct any surplus unsold
volumes, taking into account their profitability from time to time. This sales risk
management strategy is being applied to the management of the sales shortfall
caused by the COVID-19 epidemic.
Risk of raw
material and
energy
procurement
Probability of occurrence
Amount of damage
High
High

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Description
The Company is highly dependent on the procurement of quality and affordable
raw materials and energy. These are largely standardised raw materials of a
global nature (often traded on organised markets), in particular titanium-bearing
raw materials, copper, zinc and sulphur. The bargaining power of suppliers is high
(with an upward trend). The risk in the long term is significant both in terms of
prices and availability. The volume risk of titanium slag procurement increased
slightly between 2016 and 2018 due to the cessation of production of a long-
standing supplier (one of the two global producers), but we have successfully
established business relations with a quality replacement supplier, and volumes
are thus guaranteed in the long term. We assess the current market situation for
titanium-bearing raw materials as relatively stable. The risks in the energy sector
(gas and electricity) are high and significant both in the short and long term, due
to the extreme volatility of price movements and, in the long term, to the
objective scarcity of resources. This also increases the risks of price volatility in
the procurement of raw materials, the cost price of which is to a large extent
linked to the cost of energy. The lower operating levels of refineries during the
epidemic and the substitution of fossil fuels increase the potential for sulphur
price volatility. The risk of energy procurement is increasing due to geopolitical
risks.
Management
The risk is managed by identifying and evaluating alternative raw material
sources (catalogues of verified alternative raw materials and 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 assistance of market
specialists. We also maintain regular contacts with suppliers with whom we do
not operate, but who represent a quality potential alternative. We develop
infrastructure, information systems, technologies and products to limit the use of
key raw materials, reduce dependence on individual suppliers and limit the risk
of volatility in procurement prices. Wherever possible, we conclude long-term
procurement contracts, use various hedging systems, balance the consumption
structure of individual energy products, implement energy management and
carry out ongoing energy optimisation measures/projects (ORE). Targets for
specific consumption of raw materials and energy products are included in the
integrated management system as standard.
Macro risks in the
targeted economic
spaces
Probability of occurrence
Amount of damage
Medium
Medium
Description
As the Company operates in a geographically unrestricted manner, it is also
exposed to the risk of changes in regional and global macroeconomic conditions,
political/security situations and even adverse climatic events. Most of the
negative consequences cannot be estimated. The overall risk of macroeconomic
conditions is certainly present at the moment, but we believe that we are
sufficiently well prepared for any further deterioration. The escalation of relations
between Russia and the West, the complex security situation in the Middle East
and the impact of the ongoing epidemic on the broader economy continue to call
for a high degree of caution and vigilance. Of particular importance for Cinkarna
Celje is the long-term situation in Turkey, which is one of the largest markets for
titanium dioxide pigment.
Management
We limit risks by focusing on relatively safe and stable markets within the EU+
(more than 80% of sales), while sales outside the EU+ are spread across a broad
portfolio of markets such as the USA, the Middle East and the Far East. We are
developing a balanced sales structure in terms of risk/return. An important part
of our risk management strategy is the flexibility to target sales to different
geographic markets. As a result, we maintain an optimal volume of so-called
offset markets. At the same time, we regularly monitor macroeconomic forecasts
and projections and adjust our business policy accordingly. We closely monitor
developments in our individual partner countries and, together with our local
partners, evaluate and adjust our business decisions on an ongoing basis. We
strategically reduce manageable risks (e.g. financial risks) in order to increase

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our offsetting capacity against objective risks in the global economic
environment.
Climate-related
market risks
Probability of occurrence
Amount of damage
Low
High
Description
Our industry and the end markets to which we sell our products are subject to
technological change, product improvements, and changes in the context of
product regulation from time to time. Our future growth will depend on our ability
to assess the direction of commercial and technological advances in key end-use
markets, and our ability to finance and successfully develop, manufacture and
market products in changing end-use markets, including markets that offer
solutions to global challenges such as energy efficiency and climate change.
Management
We continue to invest in research and development to develop safer, cleaner and
more efficient products and processes that help our customers and consumers
reduce both their greenhouse gas emissions and their overall environmental
footprint. We work closely with our business partners to develop products that
help us mutually achieve our sustainability goals and maintain our market
position. We value collaboration to drive change and are committed to working
with policy makers, our value chain and other organisations to promote collective
action to reduce greenhouse gases. Each of our business segments conducts
impact assessments of market trends, integrates findings into business strategy
development, and reports impacts to the Enterprise Risk Management team as
appropriate, depending on the magnitude and likelihood of the impact.
II. Production risks
Risks of availability
of working capital
Probability of occurrence
Amount of damage
High
Low
Description
Cinkarna Celje is a capital-intensive company, but it is also involved in the
manufacturing industry with a high share of continuous processes. In terms of
workload and utilisation of working resources, it is mainly subject to extremely
unfavourable conditions (chemically aggressive substances, high temperatures,
pressures, etc.).
Management
We limit risks through a system of expertly designed/excellently organised
condition-based maintenance. Special emphasis is placed on preventive
maintenance, which implies excellent technical diagnostics. At critical points,
operational safety is ensured by means of built-in back-up devices.
Risk of accidents,
fires, uncontrolled
releases of
substances into the
environment and
accidents at work
Probability of occurrence
Amount of damage
Low
High
Description
The chemical processing and metallurgical industries imply the risk of such
accidents.
Management
Risk is managed by systematically evaluating the impact on the environment and
employees, periodic fire risk assessments and by organising jobs according to
risk assessment. In the area of environmental impact reduction, we have
systematically implemented European environmental standards by applying the
principles of the "Responsible Care Programme" and harmonising our operations
with the requirements of the IED Directive. We carry out our processes in
accordance with BAT (Best Available Techniques). With regard to fire safety, we
have organised our own fire-fighting unit and the company is adequately fire-
protected. In the area of accidents at work, we have a professional service
organised to monitor compliance with health and safety rules and measures. We
provide regular training and education for our employees. The company is insured
against liability for damages. We conclude written agreements with external

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contractors and train them. We have engaged a permanent Health and Safety
Coordinator. We have introduced work instructions for carrying out maintenance
operations in terms of fire prevention, accident prevention and improving the
cleanliness of the working environment. Since 2009, we have had ISO 14001
environmental management and ISO 45001 health and safety management
systems in place, certified by accredited institutions.
Part of the Company also certifies its environmental compliance by registering in
the EMAS register at the Ministry of the Environment. A risk assessment with a
protection and rescue plan is in place. Process risks to the environment, safety
and health are identified and addressed through annual framework and
performance targets. Evacuation drills are carried out according to the
programme.
In 2020, we prepared a revision of the environmental risk assessment in
accordance with the SEVESO Directive and obtained a revised environmental
permit under this Directive in 2021. We are implementing improvement
measures resulting from this revision.
We are conducting a comprehensive rehabilitation of the Bukovžlak Non-
hazardous Waste Disposal Site, regular technical monitoring of the Bukovžlak and
Za Travnik high embankment barriers, regulatory monitoring and necessary
maintenance work to reduce the potential for accidents in this area.
III. Financial risks
Currency risk
Probability of occurrence
Amount of damage
Low
Low
Description
Cinkarna Celje, d.d., purchases and sells on the world market and is therefore
exposed to the risk of unfavourable cross-currency exchange rates. In particular,
the €/$ exchange rate. As most of the sales are made in euro, the exposure is
particularly acute for the dollar-denominated purchases of titanium-bearing ores
and, occasionally, copper compounds.
Management
We continuously monitor movements and forecasts regarding the dynamics of
the €/$ currency pair. Based on market data and the prices of financial
instruments (hedging costs), we continuously determine the strategy (method
and extent) of cash flow hedging. Basically, we limit the risk of adverse changes
in the $ exchange rate in two ways: we cover part of the exposure through
operational hedging, i.e. currency matching of sales and purchases, and we
systematically limit the risk of short-term fluctuations through the use of short-
term financial instruments (mainly dollar futures).
Credit risk
Probability of occurrence
Amount of damage
Medium
Low
Description
It is the risk of possible default by buyers, which means that buyers default or
fail to pay their contractual obligations when they are due. The risk is limited as
we mainly deal with long-standing partners, often well-known traditional
European industrial companies with high credit ratings. In recent years, we have
perceived that payment discipline in Slovenia, the Balkans and Eastern Europe is
relatively weak, but we do not expect any further exacerbation of problems in
this area in the coming period. The realignment/reorganisation of the portfolio of
the Company's strategic business areas, specifically the discontinuation of the
Graphic Repro Materials programme, the Rolled Titanium Sheet programme, the
Anti-Corrosion Coatings programme and the Building Materials programme, has
significantly reduced the exposure to credit risk. In the context of credit risk, it
is important to note the consequences of the uncertain outcome of the epidemic
and the associated changes in consumer habits.
Management
We limit this risk by developing long-term partnerships, establishing established
credit checks on new domestic and foreign customers, selecting reliable

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customers, and periodically monitoring and verifying the business health of our
customers. We also apply a credit limit system which limits the potential for
damage in a systemic way. We have a department (with appropriate IT
infrastructure) in place to dynamically monitor the maturity of outstanding
receivables, the status of overdue receivables and their recovery. We also
cooperate with external providers of services like mediation, judicial and out-of-
court recovery. We use payment security instruments individually (receivables
insurance, advance payment, bill of exchange, cheques, documentary credit,
bank guarantee and documentary direct debit).
IV. Environmental, spatial and regulatory risks
Restoration of the
Bukovžlak non-
hazardous waste
landfill
Probability of occurrence
Amount of damage
Low
High
Description
In the last quarter of 2010, the Management Board decided that, due to the
high financial burden and limited availability/capacity of the Bukovžlak non-
hazardous waste landfill, the landfill should be excluded from the application for
an OVD permit and that the closure process should be initiated immediately.
Comprehensive restoration is needed to ensure long-term safety and minimise
negative impacts on the environment.
Management
We have made an environmental provision of € 5 million against the 2010
operating result. We have obtained an OVD permit for the closure period of the
landfill (30 years).
In 2016 and 2017, the first phase of the comprehensive restoration – the
reinforcement of the barrier body – was carried out.
Further work on the preparation of the project documentation showed the need
for additional interventions that were not foreseen at the time the provision was
made in 2010, so an additional provision of € 782,563 was made at the end of
2017.
In accordance with the integral construction permit, the remaining phases of
the comprehensive rehabilitation (capping, dewatering, central and western
drainage, diversion embankment) were started in June 2020. In terms of risk
management, the most challenging operation, the construction of the J20 shaft,
was completed by the end of 2020.
Interim investigations have shown the need for additional remediation works in
the area of drainage C1, which drains the high Bukovžlak barrier but runs along
the edge of the ONOB, and the construction of a sealing curtain in the NE of the
ONOB to prevent the spread of contaminated groundwater to downstream
areas. The prices of materials and services have also increased significantly
during the 2021 timeframe. In order to cover these additional restoration works
and the expected increase in costs, an additional provision of € 3,452,592.32
has been made in the 2021 operating result.
The overall scope of the restoration is being extended for future implementation
due to additional design and implementation work on the C1 drainage and the
sealing curtain.
Availability of the Za
Travnik waste
disposal facility
Probability of occurrence
Amount of damage
Medium
High

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Description
There is a limited time until the Za Travnikom waste disposal facility is filled to
dry capacity. It depends on the free volume, the amount of pigment production
and the amount of by-product extracted. Filling of the waste disposal plant
means that titanium dioxide production is stopped.
Management
We produce the maximum amount of CEGIPS possible, reducing the amount of
red gypsum for disposal.
The integral permit for the restoration of the Bukovžlak non-hazardous waste
landfill confirms the use of red gypsum for the construction of an impermeable
cover and the construction of a diversion embankment.
A revision of the red gypsum filling project for the Za Travnik waste disposal
plant has been carried out, aimed at a more optimal filling (higher natural
settlements). In the light of the changed conditions (higher removal of white
gypsum, different crystal structure, settlements), a new estimate of the
available filling volumes has been made.
All these measures increase the time to full capacity. In the light of Article 9 of
the "Ordinance on the land-use plan for the Za Travnik landfill" in the
Municipality of Šentjur, we have initiated the process of amending the OPPN
spatial plan, which will at the same time cover the possibility of additional filling
on the basis of new expert findings. The preparation of the Basis for the
amendment of the OPPN is underway.
We are also examining the possibility of changing the technology for treating
the acid waste, which currently results in the formation of red gypsum. This
would reduce the dependence of production on the volumes available for filling.
Ensuring stability of
barrier bodies
Probability of occurrence
Amount of damage
Low
High
Description
Barriers pose a risk in the event of collapse. A strong earthquake is a particular
risk.
Management
We carry out the required monitoring, which is analysed once a year by experts
from the Faculty of Civil and Geodetic Engineering in Ljubljana. All
recommendations are followed up in the form of ongoing maintenance work.
Demolition wave projects have been drawn up.
Za Travnik high embankment barrier
The technical observation network at the Za Travnik barrier was completed and
the primary and secondary geodetic observation networks were renewed.
Additional protection and drainage measures on the eastern flank are planned.
Based on the data from the new observation boreholes, a water balance will be
commissioned for any necessary measures on the western bank of the barrier.
As a result of the improved situation following the restoration works carried out
in previous years, the environmental provision has been reduced to € 450,000
based on an expert assessment of the work still needed. In the light of the
revision of the necessary works, material and service costs, we have increased
the provision by € 15,921.41 against the 2021 operating result.
Bukovžlak high embankment barrier
Regular maintenance is carried out on the Bukovžlak high barrier for red
gypsum. At the end of 2017, a provision of € 3 million was made for a more
comprehensive restoration of this barrier.
In 2018, new observation boreholes were drilled on the eastern flank of the
barrier body, and observations started in 2019. Based on the data obtained, we
will prepare a plan for the restoration intervention. In line with what we have
learned so far and taking into account the increase in the prices of materials
and services, we have revised the resources required. In line with the result of

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the revision, we have additionally charged an environmental provision of
€ 232,700.00 to the 2021 operating result.
A conceptual design has been drawn up for lowering the level of the barrier,
which would significantly contribute to increasing its safety. We also carried out
an improvised lowering of the level to obtain data for further work. Seismic
monitoring of the high Bukovžlak embankment has been established, but is
excluded with the permission of the Administrative Authority for the duration of
the restoration works at ONOB.
ONOB embankment barrier
The restoration of the Bukovžlak non-hazardous waste landfill (ONOB) barrier
was carried out in 2016 and 2017. The comprehensive restoration of the entire
landfill started in June 2020, which will further improve the stability of the
barrier in the long term.
Elimination of old
burdens at the
location of
production in Celje
Probability of occurrence
Amount of damage
low
medium
Description
The results of the environmental due diligence - phase II showed that the
existing production site in Celje was built on waste from past activities.
Landfilled waste has an impact on groundwater, which can affect human
health and the environment.
Management
We carried out several parallel activities to determine the potential impact on
human health and the environment and kept the public informed of the results.
In August 2018, we concluded and presented to the public the results of the
Risk Assessment for Human Health and the Environment due to the
Consumption of Agricultural Products under ONOB. Contaminated suspended
groundwater under ONOB was found to have no negative impact on crops. In
November 2018, we also presented the Ecotoxicological study of the impact of
old loads at the location of current production in Celje on living organisms in
the watercourses Hudinja and Ložnica. Four locations have been identified that
indicate the need for action. In 2019, we carried out the first part of activities
to supplement the Ecological Risk Assessment in segments that have not been
causally sufficiently explained in previous research. There is still one location
that we do not know how to explain and it requires some additional sampling.
We made a comparison between the requirements of Slovenian, German and
Dutch legislation and a summary of the work done so far and acquainted the
MOP with the documents. In its reply, MOP states that the current
environmental legislation does not prescribe measures, so they cannot
participate in the working group. Cinkarna can prepare the measures itself.
In view of the above, the Management Board ordered a revision of the legal
opinion. CDM Smith, on the other hand, was commissioned to prepare a
proposal for technically feasible remediation measures, assessing the feasibility
of two of the most concentrated pollutants at the site of current production. The
proposed measures do not give the expected result in terms of input, so we
launched an R&D task with the aim of researching the possibility of cleaning
contaminated groundwater at the existing wastewater treatment plant.
Water licence for
pumping of process
water from the
Hudinja River
Probability of occurrence
Amount of damage
High
High
Description
Continuous measurement with constant flow and pumping data is required.
Production may be limited during dry months.

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Management
We have obtained a water consent to carry out permanent flow and pumping
measurements. Permanent measurements need to be in place by March 2022.
We are looking for solutions and have already made small-scale investments to
partially recycle water.
We have submitted an application to the Slovenian Water Agency to amend the
water permit in accordance with the technical basis provided by the Water
Institute. In the light of the technical basis, we expect slightly relaxed
requirements for the determination of the ecologically acceptable flow.
Given the lengthy procedure with an unpredictable outcome, we have set
ourselves the task of verifying the provision of process water from other sources
in 2020. The project task has shown that the existing reservoirs of Šmartinsko
and Slivnik Lake are not a feasible solution due to other uses, environmental
requirements and inadequate capacities. The construction of reservoirs is not
an economically viable solution.
At the time of the collection of initiatives for the preparation of the Water
Management Plan for the next period, an initiative was submitted to the Ministry
of the Environment and Spatial Planning (MOP) for the transformation of this
part of the water body into a heavily modified water body (HMWB), which is
subject to different criteria for determining the environmentally acceptable flow.
MOP rejected the initiative as an inappropriate option.
In the light of the rejection of the above-mentioned initiative, we are working
on conceptual solutions for the following:
- Use of own storage in Bukovžlak;
- Use of water from the Tremerje water treatment plant;
- Occasional operation with lower production capacity and internal
recycling.
Action brought by the
Municipality of Celje
Probability of occurrence
Amount of damage
Low
Low
Description
The Municipality of Celje (MOC) is seeking reimbursement from the Company
for the costs of remediation of soil resulting from excavations made during
construction works (utility lines) by a construction company acting on behalf of
the investor (MOC). The excavation was carried out on land (the so-called old
Cinkarna site) which MOC had taken over from the company under a contract
for the free transfer of redundant assets. The material was excavated in 2009.
At the time of excavation, the material was classified as non-hazardous waste
material due to its heavy metal content. Following a decision of the
Administrative Authority, the material was remediated by MOC through an
external contractor. Prior to this, MOC had unsuccessfully sued the construction
contractor, who had in the meantime entered into insolvency proceedings, for
the costs.
Management
The court ruled in favour of the Company at first instance, but the judgment is
not yet final. The MOC has announced an appeal against the judgment, which
will be decided by the High Court. According to the current assessment of the
law firm representing Cinkarna in the litigation, there is a greater than 50%
chance of a favourable outcome for the Company.
Climate-related legal
risks
Probability of occurrence
Amount of damage
Medium
High
Description
Our operations and manufacturing units are subject to extensive
environmental, health and safety laws, regulations and enforcement at national,
international and local levels in many jurisdictions relating to pollution,
environmental protection, climate change, transportation and storage of raw
materials and finished products, storage and disposal of hazardous waste, and
product content and other safety issues. As an energy and emissions intensive

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business, Cinkarna may be subject to existing and emerging regulations that
focus on energy use and efficiency and emissions reduction. Such regulations
could result in significant additional compliance costs, including increased
purchased energy costs, additional capital costs for the installation or
modification of equipment that generates GHG emissions, and/or additional
direct costs associated with GHG emissions (CO2 credits). Our results of
operations could be adversely affected by litigation and other liabilities and
unforeseen events. As a public company, Cinkarna is required to disclose
detailed financial reports with applicable laws and standards, which also include
descriptions of significant risks.
Management
Cinkarna has processes in place through various departments and
organisational units to monitor regulations and provide inputs for consideration
in the risk management process. Legal risks and potential litigation are closely
monitored and managed in relation to the provision of transparent and
consistent information to shareholders, including those matters that may be
relevant and related to climate change.
Climate-related
technological risks
Probability of occurrence
Amount of damage
Medium
High
Description
Our industry and the end markets to which we sell our products are subject to
technological change and product improvements from time to time. Our future
growth will depend on our ability to assess the direction of commercial and
technological advances in key end-use markets and our ability to finance and
successfully develop, manufacture and market products in such changing end-
use markets. Failure to keep pace with evolving technological innovations,
including innovations relating to the development of alternative uses for, or the
use of, developed products that utilise such end-use products, could adversely
affect our financial condition and results of operations. Technology is critical to
a company's ability to address the risks associated with climate change. The
Company has mature, large capital-intensive assets that are both energy- and
emission-focused. There is little innovation in most of these technologies,
making technological change a challenge. Alternatives to reduce emissions,
such as carbon capture and storage or the use or electrification of processes,
are cost prohibitive and at this point largely unproven.
Management
The Company is constantly looking for new technologies, assessing and taking
into account market and technology trends, to reduce emissions and to identify
opportunities to improve product performance and/or develop new product
offerings that also address climate risks. It is important to be aware of current
effective technologies and future technology trends that can be adopted to help
manage climate-related risks. The Company has processes in place to follow
evolving technology trends.
Reputational risk
Probability of occurrence
Amount of damage
Low
High
Description
Our stakeholders expect us to act responsibly and proactively on the challenges
of climate change. Some large investors are becoming increasingly outspoken
about the risk of climate change to the financial market. If investors or
sustainability-focused customers perceive that Cinkarna's business activities
are not aligned with the growing global momentum for action on climate
change, this could pose a reputational risk to the Company, which could lead to
disengagement and ultimately to lower sales and reduced market value. This
aspect of our reputation could also be important from an employer branding
perspective, as it affects our ability to attract and retain new, especially young,
employees.
Management
The Company has processes in place through departments and individuals
responsible for investor relations, the environment, health and safety,
marketing, product sustainability, and human resources to gather stakeholder

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feedback and provide feedback for consideration in the Company's risk
management process. Reputational risk is one of our assessment criteria in our
Enterprise Risk Management process, which is used to assess whether a risk is
a significant risk to the Company or not. Among other things, our recent
commitment to solar electricity generation contributes to climate change
mitigation and helps to reduce reputational risks.
Climate-related acute
physical risks
Probability of occurrence
Amount of damage
Low
High
Description
The Company operates 5 production units in Slovenia, which are not prone to
the acute physical impacts of climate change. Changes in physical climate
parameters may lead to more extreme weather conditions that could pose a
risk to our production capacity and supply chains in the future.
Management
Our crisis management and business continuity plans and emergency
preparedness plans detail the actions to be taken in the event of natural
disasters or extreme weather events.
Climate-related
chronic physical risks
Probability of occurrence
Amount of damage
Medium
High
Description
Production processes depend on sufficient quantities of good quality water for
production and cooling purposes. The supply of the strategic raw material
(titanium-bearing raw materials) is trans-oceanic. Our production units may be
affected by chronic effects of climate change such as drought, rising/falling
water levels, temperature rise and changing rainfall patterns.
Management
The Company has processes in place across departments and individuals to
monitor developing water supply issues and/or potential chronic impacts of
climate change, and provide information for consideration in the Company's risk
management process.
V. Human resources and organisational risks
Ensuring continuity
of human resources
Probability of occurrence
Amount of damage
Low
Medium
Description
The nature of the company's business is inherently complex and specific, as
it operates in a number of unrelated industries, while supplying end customers
in a wide variety of industries. As a consequence, there is a risk of building,
interacting and, above all, transferring a lot of managerial, engineering and
support know-how within the Company. These risks are related both to the
staffing structure and to the system of continuous learning and transfer of
acquired knowledge and information, i.e. the functioning of communication
channels and structures. We also identify staffing risks in the limiting effect
of the high average age of employees, the inadequate education and training
of employees, the drop in operational efficiency due to the high number of
people with disabilities, the increased absenteeism, the negative
consequences of work-related injuries and accidents, and the shortage of an
adequate workforce on the market.

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Management
At all levels of the Company's organisational structure, we train and prepare
responsible successors to take over the most important functions through a
targeted programme. At all operational stages of organisational units, the
proper flow of information from key management and expert areas is ensured
through constant communication, information and coordinated action
between all key personnel. Successors are actively involved, engaged and
informed on the operations and issues involved in ensuring the smooth
functioning of business functions and processes. This ensures, with the
support of the professional services, the smooth takeover of key functions in
the company, in the event of foreseeable and also exceptional events
(sickness or prolonged absences, resignations and retirements). We continue
our policy of productive employment and reducing the percentage of unskilled
labour. We are improving the skills of our employees by investing in staff
development and training. We are implementing a system to identify potential
hazards and take action in the event of near misses.
Ensuring smooth
operation of the
Company during
COVID-19
Probability of occurrence
Amount of damage
High
High
Description
Due to the global COVID-19 pandemic and the subsequent development of
the pandemic in Slovenia, the internal business environment was exposed to
a large number of contractors, both employees and external contractors,
which, in the event of a virus infection in individual production organisational
units, poses a risk to the system of ensuring the smooth operation of the
company. The system of taking a set of measures and internal testing of
employees ensures the stability and reliability of human resources in the
event of a pandemic and the risk of a COVID-19 infection.
Management
We have taken a number of measures in many areas of the Company's
business and organisational structure, with a range of measures and protocols
in place to ensure the smooth running of the Company and targeted
communication channels with employees. We have limited or minimised the
contact with external partners and contractors, adapted internal processes to
ensure the minimum number of employees required at the workstations,
timed shift work, limited contacts at shift handovers, ensured a certain
reserve of critical crews, introduced work reassignment instruments and
working from home, adapted the catering facility, established protocols for
on-line communication, banned gatherings of people, and established a
system of self-supply of disinfectants and protective masks, while ensuring
the external procurement of personal protective equipment and complying
with all the measures taken by the Government of the Republic of Slovenia
and the National Institute of Public Health (NIJZ). We have established an
internal testing system with rapid antigen tests, and we actively informed all
employees of the measures and protocols in place within the Company. These
measures ensured the smooth operation of the company in the event of
possible infections, quarantines and the necessary self-isolation of
employees.
Risks related to
human rights policy
Probability of occurrence
Amount of damage
Low
High
Description
If a company fails to comply with its human rights policy, it risks reputational
damage, public and stakeholder backlash, loss of business, litigation and a
poor organisational climate.
Management
We stand for tolerance, mutual respect and respect for basic human rights.
We reject any form of mistreatment, harassment or discrimination. We act
ethically and professionally and in accordance with the values of society.
Recruitment and staffing is based on the principle of non-discrimination and
equal opportunities. Personal data is protected in accordance with applicable
law. We respect the right to organise and promote dialogue between the social

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partners. We have appropriate procedures or activities in place in the event
of perceived illegal or unethical practices. The Company has adopted the
Policy on Prohibition of Sexual and Other Harassment and Bullying in the
Workplace. The Company has a designated officer to receive reports and
provide assistance and information.
Risks related to anti-
corruption and anti-
bribery policies
Probability of occurrence
Amount of damage
Low
High
Description
Failure to comply with an anti-corruption and anti-bribery policy puts a
company at risk of reputational damage, public and stakeholder backlash,
business damage, loss of business, litigation and a poor organisational
climate.
Management
In making business decisions and in all actions on behalf of the Company,
employees consider the best interests of the Company before their own
interests or those of third parties, taking into account competition only in a
fair and honest manner. Donations and sponsorships are made solely in
accordance with the Company's mission, vision and values, predominantly in
the areas of sport and culture. Appropriate and expected conduct is defined
by the Code of Ethical Conduct and Work. A mechanism is in place to disclose
or report possible misconduct.

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64
Financial report
Financial statements
Condensed statement of financial position of the Company
In €
Notes
31/12/2021
31/12/2020
01/01/2020
ASSETS
Non-current (long-term) assets
Intangible assets
1
980,672
1,035,471
1,209,739
Tangible fixed assets
2
105,896,129
106,399,006
103,298,508
Financial assets at fair value through other
comprehensive income
3
1,651,099
1,755,026
1,413,623
Other non-current assets
4
53,028
25,629
27,072
Deferred tax assets
5
1,930,685
1,673,517
1,804,846
Total non-current (long-term) assets
110,511,613
110,888,649
107,753,789
Current assets
Inventory
6
40,298,476
35,524,605
40,992,387
Financial receivables
7
0
35,056
360,650
Trade receivables
8
31,172,903
26,738,238
25,713,387
Income tax receivable
0
0
1,418,601
Cash and cash equivalents
9
59,746,594
37,657,824
31,698,242
Other current assets
10
155,223
295,987
333,270
Total current assets
131,373,196
100,251,710
100,516,537
Total assets
241,884,809
211,140,359
208,270,325

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65
In €
Notes
31/12/2021
31/12/2020
01/01/2020
EQUITY AND LIABILITIES
Owners' equity
11
Called-up equity
20,229,770
20,229,770
20,229,770
Equity reserves
44,284,976
44,284,976
44,284,976
Profit reserves
101,824,169
94,431,872
91,601,525
Fair value reserve
-1,179,701
-647,812
-1,155,661
Retained earnings
25,006,577
16,522,136
15,845,496
Total equity
190,165,790
174,820,942
170,806,105
Non-current liabilities
Provisions for employee benefits
12
4,256,064
3,984,428
4,208,262
Other provisions
13
18,828,856
16,659,156
18,091,449
Non-current deferred income
14
188,082
232,817
278,334
Total non-current liabilities
23,273,002
20,876,401
22,578,045
Current liabilities
Financial liabilities
15
197,503
60,090
44,594
Trade payables
16
23,242,724
13,331,989
13,946,715
Income tax payable
3,852,235
778,351
0
Liabilities under contracts with buyers
17
136,087
192,782
14,235
Other current liabilities
18
1,017,468
1,079,804
880,629
Total current liabilities
28,446,017
15,443,017
14,886,173
Total liabilities
51,719,019
36,319,417
37,464,218
Total equity and liabilities
241,884,809
211,140,359
208,270,325
The notes to the financial statements are an integral part of the financial statements and should be read
in conjunction with them.

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66
Income statement for the period from 1 January to 31 December
In €
Year
Year
Notes
2021
2020
Revenue from contracts with buyers
21
192,462,100
172,386,851
Change in the value of inventory of products and work in progress
-463,845
-2,366,517
Capitalised own products and own services
2
3,750,475
3,882,906
Cost of goods and materials sold
23
140,470
188,743
Cost of materials
23
97,519,612
96,965,681
Cost of services
23
13,830,982
13,815,945
Labour costs
23
28,888,986
30,099,442
Depreciation
17
11,281,415
9,932,781
Other operating revenue
22
1,387,062
1,406,912
Other operating expenses
23
5,468,743
1,772,505
Impairments and write-offs of trade receivables
28,975
611
Operating profit or loss
39,976,608
22,534,445
Financial revenue
24
809,100
468,893
Financial expenses
24
829,203
491,738
Financial result
-20,103
-22,845
Profit or loss before tax
39,956,505
22,511,600
Accrued tax
7,006,296
3,429,614
Deferred tax
276,914
-131,329
Income tax
25
6,729,381
3,560,944
Net profit for the year
33,227,124
18,950,656
Basic and diluted earnings per share
41.12
23.45
The notes to the financial statements are an integral part of the financial statements and should be read
in conjunction with them.

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67
Statement of other comprehensive income for the period from 1 January to 31 December
In €
2021
2020
Net profit
33,227,124
18,950,656
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 in fair value of financial assets
-103,927
341,403
Recalculation of post-employment benefits
-408,216
166,446
Impact of deferred taxes
-19,746
0
Net other comprehensive income in the year that will not be
recognised in the income statement in the future
-531,889
507,849
Total other comprehensive income for the year (after tax)
-531,889
507,849
Total comprehensive income for the year (after tax)
32,695,234
19,458,505
The notes to the financial statements are an integral part of the financial statements and should be read
in conjunction with them.

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68
Statement of changes in equity and determination of distributable profit
In €
Year 2021
Called-up
equity
Equity
reserves
Profit reserves
Fair value
reserves
Retained earnings
Total equity
Statutory
reserves
Reserves
for own
shares
Own shares
Other profit
reserves
Profit or loss
carried forward
Net profit for the
year
I/1
II
III/1
III/2
III/3
III/5
V
VI
VII/1
VIII
Opening balance of the period
20,229,770
44,284,976
16,931,435
3,900,280
-3,900,280
77,500,437
-647,812
5,151,743
11,370,393
174,820,942
Changes in equity –
Transactions with owners
914,484
-914,484
16,435,902
16,435,902
Purchase of own shares
914,484
-914,484
Payment of dividends
16,435,902
16,435,902
Total comprehensive income of the
period
-531,890
0
33,227,124
32,695,234
Entry of net profit or loss for the
period
33,227,124
33,227,124
Other components of comprehensive
income of the period
-531,890
-531,890
B3. Changes in equity
0
0
0
0
0
7,392,297
0
11,370,393
-19,677,173
-914,484
Allocation of the residual part of net
profit for the period to other
components of equity
Allocation of part of reported net
income to other components of equity
as decided by management and
supervisory bodies
8,306,781
11,370,393
-19,677,173
Creation of reserves for own shares
-914,484
-914,484
Release of reserves for own shares
0
0
Closing balance of the period
20,229,770
44,284,976
16,931,435
4,814,764
-4,814,764
84,892,734
-1,179,702
86,234
24,920,343
190,165,790
DISTRIBUTABLE PROFIT
86,234
24,920,343
25,006,577
In €
Year 2020
Called-up
equity
Equity
reserves
Profit reserves
Fair value
reserves
Retained earnings
Total equity
Statutory
reserves
Reserves
for own
shares
Own shares
Other profit
reserves
Profit or loss
carried forward
Net profit for the
year
I/1
II
III/1
III/2
III/3
III/5
V
VI
VII/1
VIII
Opening balance of the period
20,229,770
44,284,976
16,931,435
1,992,963
-1,992,963
74,670,089
-1,155,661
-231,793
16,077,289
170,806,105
Changes in equity –
Transactions with owners
1,907,317
-1,907,317
13,536,352
13,536,352
Purchase of own shares
1,907,317
-1,907,317
Payment of dividends
13,536,352
13,536,352
Total comprehensive income of the
period
507,849
18,950,656
19,458,505
Entry of net profit or loss for the
period
18,950,656
18,950,656
Other components of comprehensive
income of the period
507,849
507,849
B3. Changes in equity
2,830,348
18,919,888
-23,657,552
-1,907,317
Allocation of the residual part of net
profit for the period to other
components of equity
Allocation of part of reported net
income to other components of equity
as decided by management and
supervisory bodies
4,737,665
18,919,888
-23,657,552
Creation of reserves for own shares
-1,907,317
-1,907,317
Release of reserves for own shares
Closing balance of the period
20,229,770
44,284,976
16,931,435
3,900,280
-3,900,280
77,500,437
-1,452,475
5,151,743
11,370,393
174,820,942
DISTRIBUTABLE PROFIT
5,151,743
11,370,393
16,522,136
The notes to the financial statements are an integral part of the financial statements and should be read
in conjunction with them.

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Cash flow statement
In €
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit or loss before tax
39,956,505
22,511,600
Adjustments for:
11,808,838
10,293,014
Amortisation and depreciation +
11,281,415
9,932,781
Profit/loss on sale of fixed assets
-3,331
-14,258
Impairment/write-down (reversal of impairment) of assets
521,883
416,264
Net decrease/increase in allowance for receivables
28,975
611
Net financial income/expenses
-20,103
-42,384
Cash flow from operating activities before change in net current assets
(working capital)
-1,177,784
433,896
Change in trade receivables
-4,413,917
-281,007
Change in inventory
-4,773,871
5,163,795
Change in trade payables
9,910,735
354,407
Change in provisions
1,743,878
-1,611,935
Change in deferred income
-95,964
-45,516
Change in other current liabilities
-62,336
222,223
Change in liabilities under contracts with buyers
-56,695
192,872
Income tax paid
-3,429,614
-3,560,944
Net cash flow from operating activities
50,587,559
33,238,509
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
59,749
382,236
Income from interest earned
7,446
19,309
Income from interest earned on dividends
13,915
23,075
Income from disposal of tangible fixed assets
3,331
14,258
Income from disposal of current financial assets
35,056
325,594
Expenses on investments
-11,325,408
-12,232,990
Expenses on acquisition of intangible assets
-105,479
-104,228
Expenses on acquisition of tangible fixed assets
-11,219,929
-12,128,762
Net cash flow from investing activities
-11,265,659
-11,850,754
Cash flows from financing activities
Income from financing activities
137,412
30,992
Income from increase in financial liabilities
137,412
30,992
Expenses on financing activities
-17,370,542
-15,459,165
Expenses on repayment of financial liabilities
-3,552
0
Expenses on interest paid
-4,189
-4,938
Expenses on purchase of own shares
-914,484
-1,907,317
Expenses on repayment of dividends and other profit shares
-16,448,317
-13,546,910
Net cash flow from financing activities
-17,233,130
-15,428,173
Closing balance of cash and cash equivalents
59,746,595
37,657,824
Net increase/decrease in cash and cash equivalents
22,088,771
5,959,582
Opening balance of cash and cash equivalents 01/01/
37,657,824
31,698,242
The notes to the financial statements are an integral part of the financial statements and should be read
in conjunction with them.

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Notes to financial statements
I. Introductory notes to the financial statements
Cinkarna, metalurško kemična industrija Celje, d.d., is organised as a public limited company, with its
registered office at Kidričeva 26, Celje, and entered in the Court Register of the Court in Celje under
number I-402-00. The Company's main activity is chemical (SKD classification: 20.120), namely the
production of titanium dioxide.
The accounting part of the annual report is prepared for the parent unitary company and comprises the
financial statements with notes of Cinkarna Celje, d.d. By the resolution of the 25th General Meeting of
Shareholders of Cinkarna Celje, d.d., of 15 June 2021, the Company switched from Slovenian Accounting
Standards to International Financial Reporting Standards (IFRS) and thus all the Company's financial
statements have been prepared in accordance with the 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 2021, which is published through the Ljubljana Stock Exchange's
electronic information system SEOnet and on the website of Cinkarna Celje, d.d.,
(https://www.cinkarna.si/si/info-center/objave).
II. Introductory notes on reporting standards
In accordance with the transition of the shares to First Listing on 4 February 2021, Cinkarna Celje, d.d.,
has prepared its financial statements as at 31 December 2021 in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union.
A. DECLARATION OF COMPLIANCE WITH THE IFRS
The financial statements of the Company as at 31 December 2021 are prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by the European Union. For previous
years, including the year ended 31 December 2020, the Company has prepared its financial statements
in accordance with the Slovenian Accounting Standards. For the first time, the Company has prepared
IFRS with the 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) as at 1
January 2021, where the effects of the transition as at 1 January 2020 are presented later in the report.
The financial statements were approved by the Company's Management Board on 28 January 2022.
The Company prepares its financial statements on the going concern basis. The accounting policies used
are the same as in previous years.
Explanation of the effects of the transition to International Financial Reporting Standards as
adopted by the EU (IFRS)
For the previous financial year ended 31 December 2020, or on transition from 1 January 2020, the
Company has reviewed the criteria for recognising assets and liabilities in accordance with the
requirements of IFRS. The Company has also reviewed whether any reclassification of individual assets
and liabilities is necessary or whether there are differences between the accounting frameworks that
would require such a reclassification. The Company concludes that on transition to IFRS there is no need
for major reclassifications to the statement of financial position within individual balance sheet items,
only minor ones, which are explained below. Nor did the transition give rise to any effects that would

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71
require restatement, except for the restatement of financial instruments measured at fair value through
comprehensive income that were measured under the cost model prior to the transition to IFRS.
The comparative financial statements as at 1 January 2020 and 31 December 2020 prepared in
accordance with IFRS as adopted by the EU have not been audited; the financial statements as at 31
December 2020 prepared in accordance with Slovenian Accounting Standards have been audited. The
Annual Report of Cinkarna Celje, d.d., for the financial year 2020, drawn up in accordance with the 2020
SRS, is available through the Ljubljana Stock Exchange's electronic information system SEOnet and on
the website of Cinkarna Celje, d.d., (https://www.cinkarna.si/si/info-center/objave. The transition to
IFRS on the financial statements as at 1 January 2020 and 31 December 2021 had an impact only on
the change (increase) in non-current investments due to fair value accounting and, consequently, on
the fair value reserve. There was no impact on other balance sheet items, except for the transfer of
items between current liabilities (recording of payables under contracts with customers). This changed
the balance sheet total in the statement of financial position as at 1 January 2020 and 31 December
2021. The change in the fair value reserve resulted in a change in the Company's equity, and
consequently in the statement of changes in equity and the statement of other comprehensive income.
The transition from SRS to IFRS did not have a significant impact on the cash flow statement.
The Company has not applied the exemptions allowed by IFRS 1 for retrospective application on first-
time adoption of IFRS. The estimates used for 1 January 2020 and 31 December 2020 are consistent
with the estimates made at those dates in accordance with SRS. All the reconciliations between SRS
and IFRS relate to the accounting and hence to the transfers between the items of the statement of
financial position and the income statement, as follows:
- A – Non-current deferred charges: Under SRS, non-current deferred charges are recorded
as part of intangible assets, whereas under IFRS they are recorded as a separate item in the
statement of financial position.
- B – Income tax receivable: Under SRS, income tax receivable is reported as other operating
receivables, whereas under IFRS it is reported as a separate item in the statement of financial
position.
- C – Income tax liabilities: Under SRS, income tax liabilities are recorded as other payables,
whereas under IFRS they are recorded as a separate item in the statement of financial position.
- D – Liabilities under contracts with buyers: IFRS define liabilities under contracts with
buyers, which are classified as other liabilities under SRS.
- E – Other revenue and expenses under SRS are reported under operating income and
expenses in accordance with IFRS.
- F – Fair value of financial investments: The transition from SRS to IFRS did not have a
significant impact on the Company's balance sheet total, except for the valuation of the
Company's long-term investments (assets) in shares of companies that were valued under the
cost model since acquisition. On transition to IFRS, the Company measured its non-current
financial assets at fair value through other comprehensive income. The effects of the transition
are shown in the table below. At the end of 2019 and 2020, the Company had financial assets
carried at cost; the transition to IFRS as of 1 January 2020 implies the application of a different
measurement, at fair value, which meant that the Company revalued/impaired its investments
as of 1 January 2020, 31 December 2020 and 31 December 2021. The Company revalued
investments of € 463,260 as at 1 January 2020, revalued investments of € 341,403 as at 31
December 2020, and impaired investments of € 103,927 as at 31 December 2021, thereby
increasing/decreasing the fair value reserve by the same amount (Note 3).

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72
In €
Investment
Carrying amount as at
01/01/2020
Fair value of investments as at
01/01/2020
Enhancement/impairment as at
01/01/2020
Fair value of investments as at
31/12/2020
Shares
946,597
1,409,856
463,260
1,751,260
Other investments
3,767
3,767
3,767
Total
950,363
1,413,623
463,260
1,755,026
In €
Investment
Fair value of investments as at
31/12/2020
Enhancement/impairment as at
31/12/2021
Fair value of investments as at
31/12/2021
Shares
1,751,260
-103,927
1,647,332
Other investments
3,767
0
3,767
Total
1,755,026
-103,927
1,651,099
On the liability side of the statement of financial position, the effects of the fair valuation of investments
were reflected in the fair value reserve, which increased by € 463,260 at the transition date of 1 January
2020, and by € 341,403 at the end of 2020 (Note 11).
In line with the above changes, the statement of changes in equity has been amended.
Within the statement of financial position, only the reporting categories of items have changed, resulting
in the recording of liabilities from contracts with buyers for refunds of major placements, which were
originally recognised as advances or other payables. No other effects of the transition on the statement
of financial position and profit or loss were recorded. There was no change in the net profit or loss. The
changes in the statement of financial position and the effects of the transition from SRS to IFRS by
balance sheet item are presented below.
Reconciliation of equity as at 1 January 2020 (date of transition to IFRS)
In €
Note
Local standard – SRS
Effect of transition to
IFRS
IFRS
EQUITY AND LIABILITIES
01/01/2020
01/01/2020
Owners' equity
Called-up equity
20,229,770
0
20,229,770
Equity reserves
44,284,976
0
44,284,976
Profit reserves
91,601,525
0
91,601,525
Fair value reserve
F
-1,618,921
463,260
-1,155,661
Retained earnings
15,845,496
0
15,845,496
Total equity
170,342,846
463,260
170,806,105

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73
In €
Note
Local standard – SRS
Effect of transition to
IFRS
IFRS
ASSETS
01/01/2020
01/01/2020
Non-current assets
Intangible assets
A
1,236,811
-27,072
1,209,739
Tangible fixed assets
103,298,508
0
103,298,508
Non-current financial investments /
Financial assets at fair value through other
comprehensive income
F
950,363
463,260
1,413,623
Other non-current assets
A
0
27,072
27,072
Deferred tax assets
1,804,846
0
1,804,846
Total non-current assets
107,290,529
463,260
107,753,788
Current assets
Inventory
40,992,387
0
40,992,387
Financial investments
360,650
0
360,650
Trade receivables
B
27,131,988
-1,418,601
25,713,387
Income tax receivable
B
0
1,418,601
1,418,601
Cash and cash equivalents
31,698,242
0
31,698,242
Active accruals / Other current assets
333,270
0
333,270
Total current assets
100,516,537
0
100,516,537
Total assets
207,807,065
463,260
208,270,325
EQUITY AND LIABILITIES
Owners' equity
Called-up equity
20,229,770
0
20,229,770
Equity reserves
44,284,976
0
44,284,976
Profit reserves
91,601,525
0
91,601,525
Fair value reserve
F
-1,618,921
463,260
-1,155,661
Retained earnings
15,845,496
0
15,845,496
Total equity
170,342,846
463,260
170,806,105
Non-current liabilities
Provisions for pensions and similar
obligations / employee benefits
4,208,262
0
4,208,262
Other provisions
18,091,449
0
18,091,449
Non-current accrued liabilities / Non-
current deferred income
278,334
0
278,334
Total non-current provisions and
accrued liabilities / non-current
liabilities
22,578,045
0
22,578,045
Current liabilities
Financial liabilities
44,594
0
44,594
Trade payables
13,946,715
0
13,946,715
Liabilities under contracts with buyers
D
0
14,235
14,235
Accrued liabilities / Other current liabilities
D
894,864
-14,235
880,629
Total current liabilities
14,886,173
0
14,886,173
Total liabilities
37,464,218
0
37,464,218
Total equity and liabilities
207,807,065
463,259
208,270,324

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Reconciliation of equity as at 31 December 2020
In €
Note
SRS
Effect of transition to IFRS
IFRS
EQUITY AND LIABILITIES
31/12/2020
31/12/2020
Owners' equity
0
Called-up equity
20,229,770
20,229,770
Equity reserves
44,284,976
44,284,976
Profit reserves
94,431,872
94,431,872
Fair value reserve
F
-1,452,475
804,663
-647,812
Retained earnings
16,522,136
16,522,136
Total equity
174,016,279
804,663
174,820,942
In €
Note
Local standard – SRS
Effect of transition to IFRS
IFRS
31/12/2020
31/12/2020
ASSETS
Non-current assets
Intangible assets
A
1,061,100
-25,629
1,035,471
Tangible fixed assets
106,399,006
0
106,399,006
Non-current financial investments / Financial
assets at fair value through other
comprehensive income
F
950,363
804,663
1,755,026
Active accruals / Other non-current assets
A
0
25,629
25,629
Deferred tax assets
1,673,517
0
1,673,517
Total non-current assets
110,083,986
804,663
110,888,649
Current assets
Inventory
35,524,605
0
35,524,605
Financial investments
35,056
0
35,056
Trade receivables
26,738,238
0
26,738,238
Income tax receivable
37,657,824
0
37,657,824
Cash and cash equivalents
295,987
0
295,987
Total current assets
100,251,710
0
100,251,710
Total assets
210,335,696
804,663
211,140,359
EQUITY AND LIABILITIES
Owners' equity
Called-up equity
20,229,770
0
20,229,770
Equity reserves
44,284,976
0
44,284,976
Profit reserves
94,431,872
0
94,431,872
Fair value reserve
F
-1,452,475
804,663
-647,812
Retained earnings
16,522,136
0
16,522,136
Total equity
174,016,279
804,663
174,820,942
Non-current liabilities
Provisions for pensions and similar obligations /
employee benefits
3,984,428
0
3,984,428
Other provisions
16,659,156
0
16,659,156
Non-current accrued liabilities / Non-current
deferred income
232,817
0
232,817
Total non-current provisions and accrued
liabilities / non-current liabilities
20,876,401
0
20,876,401
Current liabilities
Financial liabilities
60,090
0
60,090
Trade payables
B
14,301,122
-969,133
13,331,989
Payables to suppliers
9,284,985
0
9,284,985
Other payables
B
5,016,137
-969,133
4,047,004
Income tax payable
0
778,351
778,351
Liabilities under contracts with buyers
C
0
192,782
192,782
Accrued liabilities / Other current liabilities
D
1,081,803
-1,999
1,079,804
Total current liabilities
15,443,016
0
15,443,016
Total liabilities
36,319,416
0
36,319,416
Total equity and liabilities
210,335,697
804,663
211,140,359

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Reconciliation of the income statement and other comprehensive income for the year ended
31 December 2020
In €
Note
Local
standards –
SRS 2020
Effect of
transition to IFRS
IFRS 2020
Revenue from contracts with buyers
172,386,851
0
172,386,851
Change in the value of inventory of products and work in
progress
-2,366,517
0
-2,366,517
Capitalised own products and own services
3,882,906
0
3,882,906
Cost of goods and materials sold
188,743
0
188,743
Cost of materials
96,965,681
0
96,965,681
Cost of services
13,815,945
0
13,815,945
Labour costs
30,099,442
0
30,099,442
Depreciation
9,932,781
0
9,932,781
Other operating revenue
1,325,972
80,940
1,406,912
Other operating expenses
1,699,739
72,766
1,772,505
Impairments and write-offs of trade receivables
611
0
611
Operating profit or loss
22,526,271
8,174
22,534,445
Financial revenue
468,893
0
468,893
Financial expenses
491,738
0
491,738
Financial result
-22,845
0
-22,845
Other revenue
E
80,940
-80,940
0
Other expenses
E
72,766
-72,766
0
Profit or loss before tax
22,511,600
0
22,511,600
Accrued tax
3,429,614
0
3,429,614
Deferred tax
-131,329
0
-131,329
Income tax
3,560,944
0
3,560,944
Net profit or loss for the year
18,950,656
0
18,950,656
Other comprehensive income
Other comprehensive income for the year that will not
be recognised in the income statement in the future
0
0
0
Other comprehensive income for the year that will be
recognised in the income statement in the future
0
0
0
Change in fair value of financial assets
F
0
341,403
341,403
Translation of post-employment benefits
166,446
0
166,446
Impact of deferred taxes
0
0
0
Net other comprehensive income in the year that will
not be recognised in the income statement in the
future
166,446
0
166,446
Total other comprehensive income for the year (after
tax)
166,446
0
166,446
Total comprehensive income for the year (after tax)
19,117,102
341,403
19,458,505
Simplification on transition to IFRS
The Company has made the transition to IFRS in accordance with the provisions of IFRS 1 - First-time
Adoption of International Financial Reporting Standards. This Standard requires the same accounting
policies to be applied in the Company's opening IFRS statement of financial position and in all periods
presented in the first IFRS financial statements.
The Company uses the starting date of 1 January 2020 as the date of transition to IFRS and accordingly
prepares an opening statement of financial position as at 1 January 2020 and a closing statement of
financial position as at 31 December 2021. The Company also restates the income statement for 2020
(if necessary) and applies IFRS in 2021.

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Initial application of new amendments to existing standards issued by the IASB and adopted
by the EU that are effective for the current reporting period
The accounting policies applied by the Company in the preparation of its financial statements are the
same as those applied in the preparation of the financial statements for the previous financial year. The
exceptions are the revised standards and interpretations adopted by the Company on 1 January 2021,
which are described below:
- Reform of benchmark interest rates - Phase 2 - IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS
16 (amendments)
In August 2020, the IASB published the second part of the benchmark interest rate reform, the
amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing its work in response to the
IBOR reform. The amendments include a temporary exception to report the financial effects of swapping
the interbank offered rate (IBOR) for an alternative risk-free rate (RFR). The amendments allow entities
to apply a practical expedient in accounting for changes in the basis for determining the contractual
cash flows of a financial asset or liability, whereby the entity is required to adjust the effective interest
rate so that it is equivalent to the movement in the market interest rate. In addition, the amendments
permit entities to apply certain generalisations about the discontinuation of hedge accounting, including
a temporary exemption from the unbundling requirement, to hedging relationships in which an
alternative benchmark interest rate has been designated as a non-contractually determined component
of risk. The amendments to IFRS 7 Financial Instruments require an entity to make disclosures that
enable users of financial statements to understand the effect of the reference rate reform on the entity's
financial instruments and its risk management strategy. An entity shall apply the amendments
retrospectively, without restating prior periods' information. The amendments to the standard did not
have any impact on the financial statements of Cinkarna Celje, d.d.
- IFRS 16 Leases - Adjustment of lease payments related to COVID-19 (Amendments)
The amendments are effective for annual periods beginning on or after 1 June 2020 and should be
applied retrospectively by entities. Early application is also permitted for the preparation of financial
statements that have not yet been authorised for issue at 28 May 2020. The amendments allow a lessee
to apply the practical expedient so that it is not required to account for rent adjustments that are a
direct result of the pandemic in the same way as other changes when applying this IFRS 16, provided
that all of the following conditions are met:
• The change in rent results in a revised rental remuneration that is almost equal to or lower than
the rental remuneration immediately before the change; any reduction in rental remuneration
only affects payments that would have originally been due on or before 30 June 2021;
• There is no significant change to the other terms of the lease.
The amendments to the standard did not have the following impact on the financial statements of
Cinkarna Celje, d.d.:
Standards and amendments to existing standards issued by the IASB and adopted by the EU
but not yet in force:
• IAS 1 Presentation of financial statements: Classification of liabilities as current or non-
current (amendments)
The amendments were initially effective for annual periods beginning on or after 1 January 2022. Early
application of the amendments was permitted. In response to the COVID-19 coronavirus pandemic, the
IASB delayed the effective date of the amendments by one year, to 1 January 2023, in order to allow
entities sufficient time to implement the changes in liability classification. The amendments are intended
to assist entities in deciding whether to classify debt and other liabilities with uncertain settlement dates

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as current or non-current liabilities in the statement of financial position, thereby providing greater
consistency in complying with the requirements of the standard. The amendments affect the
presentation of liabilities in the statement of financial position but do not change the existing
requirements relating to the measurement or recognition period of assets, liabilities, income or expenses
or the information that an entity discloses about those items. The amendments also clarify the
requirements related to the classification of debt that an entity may settle by issuing its own equity
instruments.
In November 2021, the Board published an Exposure Draft (ED) that clarifies how an entity treats
liabilities that are subject to commitments to be fulfilled at a date subsequent to the reporting period.
In particular, the Board proposes limited scope amendments to IAS 1 that effectively repeal the 2020
amendments that require an entity to classify as current liabilities obligations that are subject to
commitments that it is not required to meet until within the next 12 months after the reporting period
if it is not in compliance with them at the end of the reporting period. Instead, the proposed amendments
require an entity to present separately and make additional disclosures about any non-current liabilities
that have commitments that are not due to be settled until within the next 12 months after the reporting
period if the entity is not in compliance with them at the end of the reporting period. The proposed
amendments are effective for annual periods beginning on or after 1 January 2024 and, in accordance
with the requirements of IAS 8, an entity shall apply them retrospectively. Early application of the
amendments is permitted. The Board also proposed to defer the effective date of the amendments from
2020, which means that an entity does not need to change its existing practice before the proposed
amendments become effective. The amendments to the standard and the exposure drafts have not yet
been approved by the EU.
The management assessed the impact and judged that there would be no significant impact on the
financial statements of Cinkarna Celje, d.d.
• IFRS 3 Business combinations; IAS 16 Property, plant and equipment; IAS 37 Provisions,
contingent liabilities and contingent assets and annual improvements 2018-2020
(amendments)
The amendments are effective for annual periods beginning on or after 1 January 2022. Early application
of the amendments is permitted. The IASB has issued the following limited amendments to IFRSs:
- The amendments to IFRS 3 Business combinations update the reference in IFRS 3 to the
underlying framework of financial reporting standards, but do not change the accounting
requirements for accounting for business combinations.
- IAS 16 Property, plant and equipment (amendments); The amendments prohibit an entity from
deducting from the cost of property, plant and equipment the proceeds from the sale of products
during the period that the asset is being prepared for its intended use, and require the
recognition of the proceeds from the sale and the related costs in profit or loss.
- IAS 37 Provisions, contingent liabilities and contingent assets (amendments); The amendments
specify the costs that an entity considers in determining the cost of performing a contract for
the purpose of assessing whether the contract is onerous.
- The 2018-2020 Annual Improvements make some minor amendments to IFRS 1 First-time
adoption of International Financial Reporting Standards, IFRS 9 Financial instruments, IAS 41
Agriculture, and illustrative examples to IFRS 16 Leases.
The management assessed the impact and judged that there would be no significant impact on the
financial statements of Cinkarna Celje, d.d.
• IFRS 16 Leases - Adjustment of lease payments in respect of COVID-19 after 30 June 2021
(amendments)

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The amendments to the standard are effective for annual periods beginning on or after 1 April 2021,
with early application permitted even in financial statements that have not been authorised for issue at
the date of the amendments. In March 2021, the International Accounting Standards Board amended
the conditions for applying the practical expedient in IFRS 16, which allows a lessee not to treat lease
rent adjustments that arise as a direct result of the COVID-19 pandemic under the guidance in IFRS 16.
An entity may apply the practical expedient to lease rent adjustments for which a single rent reduction
affects only payments that would have been originally due on or before 30 June 2022, provided that all
the conditions for applying the practical expedient are met.
The management assessed the impact and judged that there would be no significant impact on the
financial statements of Cinkarna Celje, d.d.
• IAS 1 Presentation of financial statements and IFRS Position 2: Disclosure of accounting
policies (amendments)
The amendments are effective for annual periods beginning on or after 1 January 2023. Early application
of the amendments is permitted. The amendments provide guidance for assessing materiality in the
disclosure of accounting policies. The amendments to IAS 1 replace the requirement to disclose
'significant' accounting policies with a requirement to disclose 'material' accounting policies. The
Framework also provides guidance and illustrative examples to assist in applying the concept of
materiality in assessing the disclosure of accounting policies. The amendments to the Standard have
not yet been approved by the EU. The management assessed the impact and judged that there would
be no significant 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 to the standard are effective for annual periods beginning on or after 1 January 2023.
Early application of the amendments is permitted. The amendments address changes in accounting
policies and accounting estimates at or after the beginning of the period and define accounting estimates
as monetary amounts in financial statements that have measurement uncertainty associated with them.
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 to the standard have not yet
been approved by the EU. The management assessed the impact and judged that there would be no
significant impact on the financial statements of Cinkarna Celje, d.d.
• IAS 12 Income taxes: Deferred tax on assets and liabilities in a single transaction
(amendments)
The amendments are effective for annual periods beginning on or after 1 January 2023. Early application
of the amendments is permitted. In May 2021, the IASB issued amendments to IAS 12 to restrict the
application of the initial recognition exemption under IAS 12 and to specify how an entity should account
for deferred tax on certain transactions, such as leases and decommissioning liabilities. Under the
amendments, the exemption does not apply to transactions for which the taxable amount at initial
recognition is equal to the amount of deductible temporary differences. The exception applies only if,
on the recognition of the leased asset and the related liability (or the liability in connection with the
decommissioning and decommissioning of a component of the asset), the taxable amount is not equal
to the amount of the deductible temporary differences. The amendments to the standard have not yet
been approved by the EU. The management assessed the impact and judged that there would be no
significant impact on the financial statements of Cinkarna Celje, d.d.
B. APPLICATION OF THE GOING CONCERN ASSUMPTION

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In preparing the financial statements of Cinkarna Celje, d.d., for the financial year 2021, the
management has assumed a going concern based on knowledge and information and on the activities
that enable the Company to continue as a going concern, and to be able to generate sufficient cash flow
to meet its liabilities and to provide investors with an adequate return on equity.
C. BASES FOR MEASUREMENT
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.
D. FUNCTIONAL AND PRESENTATION CURRENCY
The financial statements and notes are presented in euro, excluding cents. Financial information
presented in the financial reports in euro is rounded.
E. USE OF ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires the management to make estimates, judgements and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
The estimates include the determination of the useful lives and residual values of property, plant and
equipment and intangible assets, valuation allowances for inventories and receivables, estimates of the
recoverability of deferred tax assets, assumptions relevant to the actuarial calculation of employee
benefits, assumptions included in the calculation of provisions for ecological purposes, and for legal and
personal claims.
The estimates and assumptions are reviewed regularly. Revisions to accounting estimates are
recognised for the period in which the estimates are revised, to the extent that it affects only that period,
and for future periods affected by the revisions. Information about significant estimation uncertainties
and critical judgements made by the management 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 estimating the useful lives of assets, the Company considers expected physical wear and tear,
technical obsolescence, economic obsolescence and expected legal and other restrictions on use. The
Company also reviews the useful lives of major assets in the event that circumstances change and
require a change in the useful life and therefore a revaluation of depreciation expense.
Information about significant estimation uncertainties and critical judgements made by the management
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 based on the present value of future
cash flows, which is based on an estimate of the expected cash flows from the cash-generating unit, as
well as the determination of an appropriate discount rate.
• In note 21 Revenue from contracts with buyers

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Revenue from contracts with buyers is recognised based on the terms of the individual sales contract
with the buyer, at the time control of the goods and services is transferred to the buyer, in an amount
that reflects the consideration to which Cinkarna Celje believes it will be entitled in exchange for such
goods or services. Revenue from contracts with buyers is reduced by allowances for larger volumes
(volume discounts granted) where the Company verifies accurately that the contractually agreed
volumes are taken up. If the contracted quantities are taken up, the Company grants the buyer a
discount on the quantity taken up. The percentage of the discount is agreed in the contract with the
individual buyer. The payment criterion shall also be taken into account when assessing the granting of
discounts. If the outstanding receivables due from the buyer, to which the bulk purchase allowance
would be due, are not settled, the discount is not granted and is only assessed.
• Impairment testing of trade receivables
At the time of preparation of the financial statements (quarterly and annual), the Company makes an
allowance or impairment for receivables that are not expected to be settled in full or at all. The basis
for the calculation of the allowance is a uniform methodology applicable to the Company and is based
on the probability or estimate of default by the buyer. The methodology includes the following
quantitative and qualitative criteria: an analysis of the buyer's payment record, an analysis of the
buyer's financial statements, a qualitative assessment of the buyer 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 buyer.
• 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 the provisions made
A provision is 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. 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 control of the Company. 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
judgement is mainly related to environmental provisions, using written opinions of external experts.
• In Note 13 Provisions for post-employment benefits and other long-term employee
benefits
The present values of retirement bonuses and jubilee awards are recorded within the defined benefit
obligations. They are recognised based on an actuarial calculation prepared by an authorised 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 which, because of changes in the future, may
differ from the actual assumptions then in effect. This relates primarily to the determination of the
discount rate for the employee turnover estimate, the mortality estimate and the salary growth

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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 short-term payables under contracts with buyers
Cinkarna Celje accounts for contractual discounts when preparing its annual financial statements in
cases where buyers only become entitled to a discount on sales achieved in the current year in the
following year, i.e. when the contractually agreed conditions for obtaining the discount have been met.
The bases for estimating the amount of these discounts are the facts known at the time of preparation
of the annual accounts, past experience with individual buyers, and other relevant facts.
Assessment of the recoverability of deferred tax assets
The Company recognises deferred tax assets in respect of: provision for jubilee and retirement benefits,
impairment of investments, impairment of receivables, unused tax credits, and tax losses. The Company
verifies the amount of tax receivables and tax payables reported at the date of the financial statements.
Deferred tax assets are recognised to the extent that 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 coronavirus pandemic
As a result of the deterioration in the macroeconomic environment caused by the coronavirus pandemic,
the Company is reviewing significant accounting policies and estimates in areas that could be adversely
affected by the pandemic, in particular impairment of assets-receivables due to deterioration in payment
discipline, provisions, fair value measurement, leases, labour costs and the deductibility of deferred tax
assets.
Short-term payables under contracts with buyers
Cinkarna Celje accounts for contractual discounts when preparing its annual financial statements in
cases where buyers only become entitled to a discount on sales achieved in the current year in the
following year, i.e. when the contractually agreed conditions for obtaining the discount have been met.
The bases for estimating the amount of these discounts are the facts known at the time of preparation
of the annual accounts, past experience with individual buyers, and other relevant facts.
III. Significant accounting policies
The Company has applied accounting policies in accordance with IFRS for the period presented in the
accompanying financial statements. The accounting policies and methods of computation applied by the
Company in its last reporting have been accounted for in accordance with SRS and do not represent
material departures from, or differences from, the provisions of IFRS.
The Company did not change the accounting policies published in the Annual Report for the 2020
financial year, except that for the 2020 financial year the Company did not calculate ECL for impairment
of receivables under SRS-JIH. In view of the transition to IFRS, it was also not necessary to change the
accounting policies and calculation methods used until then.
A. CONVERSION OF FOREIGN CURRENCIES
For transactions denominated in a foreign currency, the commercial bank rate or the European Central
Bank mid-rate (reference rate) is used for the conversion of transactions during the year. Assets and

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debts denominated in foreign currencies are recorded at their converted 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, the
amortised cost of payments during the period, and the amortised cost in the foreign currency converted
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 converted 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 converted 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 a finite useful life and are carried at cost less accumulated amortisation
and accumulated impairment losses. The cost also includes borrowing costs until the intangible asset is
created.
Subsequent expenses on intangible fixed assets is capitalised when it increases the future economic
benefits of the asset to which it relates.
The Company applies the straight-line amortisation method. Amortisation rates are based on expected
useful lives. Amortisation is charged individually until the asset's recoverable amount, which forms the
basis for amortisation, is recovered in full, 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 depreciation rates in 2021 remain unchanged from the previous year.
C. TANGIBLE FIXED ASSETS
The Company's tangible fixed assets comprise land, buildings, manufacturing equipment, other tangible
fixed assets, small inventories, tangible fixed assets under construction or in the course of construction,
and advances for the acquisition of tangible fixed assets.
The Company uses the cost model. Cost includes costs directly attributable to the acquisition of a
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 a tangible fixed asset until it is
ready for use.
The cost of a tangible fixed asset constructed or manufactured by the Company consists of the costs
incurred in constructing or manufacturing it (costs of materials, labour, services of external contractors
and services of the Company's business units) that relate directly to it, and those general costs of
construction or manufacture that are attributable to its qualification for its intended use.

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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.
Subsequent expenses on a tangible fixed asset increases its cost if it is a replacement and it is probable
that its future economic benefits will be greater than those originally estimated. In the case of
subsequent expenses on a fully depreciated tangible fixed asset, the 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 amortisation method. Amortisation rates are based on expected
useful lives. Amortisation is charged individually until the value forming the basis of amortisation has
been fully recovered and commences on the first day of the month following the month in which it is
available for use. Land and fixed assets of artistic and cultural interest are not amortised. The estimated
useful lives for the current and comparative periods are:
Buildings 5 to 71 years
Production equipment 2 to 30 years
Other equipment 2 to 5 years
The amortisation rates in 2021 remain unchanged from the previous year.
Leases
The Company assesses whether the contract is a lease or contains a lease when the contract is entered
into. A contract is a lease or contains a lease if it transfers the right to control the use of an identified
asset for a fixed period in exchange for compensation. The Company determines the term of a lease as
the period during which the lease cannot be terminated, together with (a) the periods for which the
option to extend the lease is exercisable if it is reasonably certain that this option will be exercised and
(b) the periods for which the option to terminate the lease is exercisable if it is reasonably certain that
this option will not be exercised.
The Company as lessee
As a lessee, the Company has no leases.
The Company as lessor
Leases that do not involve a significant transfer of the risks and rewards of ownership are classified as
operating leases. Rental income is accrued on a straight-line basis over the lease term and recognised
as income in the income statement. Initial direct costs are additional costs directly attributable to
negotiating and agreeing the lease, increase the carrying amount of the leased asset, and are recognised
over the lease term in the same way as rental income. Contingent rentals are recognised as income in
the period in which they are earned.
D. OTHER NON-CURRENT ASSETS
The Company recognises as other non-current assets emission allowances acquired free of charge from
the State. The Company records the receipt and use of emission allowances as follows:

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• Emission allowances granted by the State (the Ministry of the Environment and Spatial Planning
and the Environment Agency of the Republic of Slovenia) from 2013 onwards are shown in the
statement of financial position at a value of EUR 1 per emission allowance;
• Proceeds from the sale of allocated emission allowances are shown in other operating income in
the income statement;
• Purchases of emission allowances in the market are recorded as non-current assets at cost if
they involve actual issuances that will occur in future periods;
• Short-term payables are expensed when the estimated amount of actual emissions exceeds the
number of emission allowances the Company has either allocated or purchased to cover the
actual emissions;
• If the market value of the purchased emission allowances at the year-end is lower than their
carrying amount, the allowances are revalued for impairment;
• The Company first uses all the allowances acquired from the State on the balance sheet cut-off
date and uses all the allowances it has purchased on the market at the average price to cover
any shortfall.
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 buyers).
Non-derivative financial assets
Financial assets are classified into one of the following groups on initial recognition:
• Financial assets measured at amortised cost;
• Financial assets at fair value through other comprehensive income;
• Financial assets at fair value through profit or loss; or
• Monetary assets.
Non-derivative financial assets include cash and cash equivalents, receivables, loans and investments.
The Company recognises receivables and loans and deposits on the date they are incurred. It recognises
other assets at the trade date or when it becomes a party to the contractual provisions of the instrument.
The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire or when the rights to the contractual cash flows from the financial asset are
transferred in a transaction that transfers all the risks and rewards of ownership of the financial asset.
Impairment of financial assets is described in more detail in note G below.
Financial assets at fair value through other comprehensive income

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Financial assets at fair value through other comprehensive income that are debt instruments are those
financial assets held by the Company for the purpose of generating 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 derecognition, the cumulative change in fair value
recognised in other comprehensive income is reclassified to the income statement. 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 finance income in the income statement when the
right to receive payment is established.
Financial assets at amortised cost
The Company classifies as financial assets at amortised cost financial assets held for the purpose of
generating contractual cash flows that represent solely payments of principal and interest on the
principal outstanding. The Company classifies loans, trade and other receivables as financial assets at
amortised cost. Depending on their maturity, they are classified as either current (maturity up to 12
months after the statement of financial position date) or non-current (maturity more than 12 months
after the statement of financial position date). Loans and receivables are initially recognised at fair value
plus direct transaction costs. Subsequent to initial recognition, loans and receivables are measured at
amortised cost using the effective interest rate method less expected credit losses. Gains and losses are
recognised in profit or loss when eliminated, modified or impaired. Insurance of trade receivables is not
treated as a separate financial instrument but as an integral part of the receivables. Insurance policies
are taken out on a periodic (annual) basis and relate to specific receivables and/or business partners.
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 the intention to
sell or repurchase in the foreseeable future. Derivative financial instruments, including separate
embedded derivatives, are classified as held for trading unless they are effective hedging instruments.
Financial assets that generate cash flows other than payments of principal and interest are classified
and measured at fair value through profit or loss, regardless of the business model. Financial assets at
fair value through profit or loss are carried at fair value in the statement of financial position with net
changes in fair value recognised in the income statement.
Cash and cash equivalents
Cash and cash equivalents comprise: cash in hand, balances in transaction and foreign currency
accounts, bank deposits with a maturity of 3 months or less, and similar investments held to ensure

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solvency. Cash is recognised at initial recognition at the amount resulting from the relevant instruments
that give rise to control over the rights attached 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
Derivatives 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 the policy. Investments or financial liabilities
measured at fair value through profit or loss are remeasured at fair value at least annually, at the time
of the preparation of the annual financial statements. Gains or losses arising from changes in fair value
are recognised in the income statement.
The company purchases strategic raw materials in US dollars and also sells into US dollar markets,
which are significantly lower in value than purchases. Due to the mismatch between purchase and sales
prices and the constantly changing euro/dollar exchange rate, the Company uses forward contracts 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 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 inventory of raw materials and consumables, ancillary materials, packaging and
merchandise at cost plus any related acquisition costs. The Company uses constant prices with offsets
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the FIFO method, and consumption of other inventory of materials and supplies is recorded using the
weighted average cost method. Inventory 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 %
Inventory of work in progress, semi-finished and finished goods are valued at production cost, which
includes direct costs of materials, wages and salaries, 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 inventory of work in progress and finished goods. Cost
transfers from inventory are made using the weighted average price method.
Inventory of work in progress and finished goods without movement are revalued for impairment by
writing down the value using 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 applies an expected loss model, under which it recognises not
only incurred losses but also losses that are 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 receivables from buyers, that do not have a significant financing component,
a simplified approach is used whereby the valuation allowance is calculated as an amount equal to the
expected credit losses over the life of the financial asset. The Company forms groups of receivables
based on their collateralised/uncollateralised status, maturity, similar risk characteristics and historical
recoverability, adjusted for management's assessment of whether actual losses due to current economic
conditions may be greater or less than the losses projected by past developments.
If credit risk has increased significantly since initial recognition but the assets do not yet show objective
evidence of impairment, the impairment assessment is based on the probability of default over the life
of the financial asset. Expected credit losses represent the difference between the contractual cash flows
that are contractually due and all cash flows that the Company expects to receive. For financial assets
that show objective evidence of impairment at the reporting date, a full allowance for expected credit
losses is provided for based on a decision of the Management Board. The Company recognises a write-
down of a financial asset when it has a reasonable expectation that it will not be able to collect the
contractual cash flows. Objective evidence that a financial asset is impaired may include: default or
breach by the debtor; indications that the debtor is about to enter bankruptcy or is subject to
proceedings under the Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act
(ZFPPIPP).
Claims that are presumed to be unsettled or not settled in full should be considered doubtful and, if they
are the subject of legal proceedings, disputed. The Company records a valuation allowance against the
operating expenses related to the receivables. The establishment of an allowance for trade and other

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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 indicators exist, the recoverable
amount of the asset is estimated. The recoverable amount of an asset or cash-generating unit (CGU) is
the higher of its value in use and its fair value less costs to sell. In determining the value in use of an
asset, the expected future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset.
In allocating impairment to an individual CGU asset, the carrying amount of the 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 policies require the determination of the fair value of both non-financial and
financial assets and liabilities, either for the measurement of individual assets or for additional fair value
disclosures. Fair value is the amount for which an asset could be sold or a liability exchanged between
knowledgeable, willing parties in an arm's length transaction.
The methods used to determine the fair value of each class of assets for measurement or reporting
purposes are described below.
Financial assets at fair value through profit or loss and financial assets at fair value through
other comprehensive income
The fair value of financial assets at fair value through profit or loss and financial assets at fair value
through other comprehensive income is determined using comparable market data from companies in
the electricity industry.
Receivables and loans
The fair value of receivables and loans is calculated as the present value of future cash flows, discounted
at the market interest rate at the end of the reporting period. The estimate takes into account the credit
risk of these financial assets.

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Outstanding financial liabilities
For reporting purposes, fair value is calculated based on the present value of future principal and interest
payments discounted at the market interest rate at the end of the reporting period.
J. EQUITY
The Company's total equity is made up of: called-up equity, equity 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 equity is the shareholders equity, 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 shareholders equity are
redeemed, the amount of compensation paid, including costs directly attributable to the redemption,
net of any tax effects, is recognised as a change in equity. The repurchased shares are accounted for
as treasury shares and deducted from equity. On the sale or subsequent reissue of treasury shares, the
amount received is shown as an increase in equity and the resulting surplus or deficit on the transaction
is transferred to equity reserves or retained earnings, as appropriate.
Equity reserves consist of the equity reserves created in the course of the ownership procedure and
the general revaluation adjustments to equity, which included the revaluation of the shareholders equity
prior to 2002 in accordance with the then applicable SRS. The general revaluation adjustment to the
Company's equity was transferred to the equity reserves on 1 January 2006 as a result of the
changeover to the new SRS (2006) on 1 January 2006.
Profit reserves are a portion of net profit from previous years that is retained for a specific purpose,
mainly to offset possible future losses. They consist of legal reserves, reserves for own shares/own
interests, own shares/own interests (as a deductible item), statutory reserves, and other profit reserves.
Retained earnings from previous years are the residual of the then current net profit that is neither
distributed as dividends or other distributions to equity holders nor earmarked as a reserve.
Fair value reserves relate to the change in fair value of equity investments in other companies
measured at fair value through equity. The fair value reserve also includes the cost of remeasuring post-
employment benefits (actuarial gains/losses) arising from the change in the present value of the
retirement benefit obligation.
Dividends: until dividends are approved by the General Meeting, deemed dividends are treated as
retained earnings, i.e. dividends are recognised in the financial statements in the period in which the
resolution of the General Meeting to pay dividends is passed.
K. CURRENT EMPLOYEE INCOME
Obligations for current employee income are measured on an undiscounted basis and are recognised as
an expense when the employee's service in respect of the defined income is rendered.
L. NON-CURRENT EMPLOYEE BENEFITS
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The Company is obliged by law, collective agreement and internal rules to pay jubilee bonuses and
severance payments to employees on retirement, for which provisions are made. There are no other
pension obligations. Provisions are made for estimated future severance and jubilee payments
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. 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 expenses required to settle the obligation. The Company
recognises a provision when the conditions for the provision are met and it is charged to the relevant
costs or expenses.
The environmental provision is established as a best estimate of the costs, based on external
independent environmental experts' assessments, associated with the operation of landfills and facilities
owned by the Company to cover long-term liabilities. The provision is discounted at a risk-free rate, but
the Company does not carry out this discounting because the timing of the works cannot be reliably
predicted. In 2021, provisions were reviewed and adjusted for price increases, based on an assessment
by external experts and an annual review by the management. Cost adjustments were made in line with
the increase in prices of materials and services to carry out the necessary rehabilitation.
N. STATE AIDS
Revenue from state aids is recognised in the financial statements of Cinkarna Celje, d.d., when it is
received and there is reasonable assurance that the conditions attached to it will be fulfilled. The
Company recognises state aids from the epidemic in Slovenia in current operating income. Remaining
state and other grants received to cover costs are recognised as revenue on a consistent basis in the
periods in which the related expenses are incurred to be compensated by the grants. Asset-related state
aids are recognised in the income statement on a strictly consistent basis within other operating income
over the useful life of the asset.
State aids 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 LIABILITIES
Under other current assets, the Company recognises current deferred charges or expenses. In
accordance with the methodology set out for the deferral of the cost of the annual liability, deferred
charges for annual leave allowance, insurance premiums paid and other current charges 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 liabilities,
planned operating liabilities are deferred during the year. Accrued income during the year from the sale
of products and services is recorded under deferred income. The Company also recognises accrued
unused annual leave entitlement as well as VAT on advances made as other current liabilities.

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P. REVENUE
Revenue from contracts with buyers
Revenue is recognised under IFRS 15 if the increase in economic benefits during the period is
attributable to an increase in the value of an asset or a decrease in a debt, and the increase can be
measured reliably. Revenue is recognised when it is reasonably expected to give rise to benefits, if those
benefits are not realised when they arise.
Revenue from contracts with buyers is the result of sales of chemical, metallurgical and other
manufactured goods and materials, where the performance obligation is settled at the time the goods
are shipped or accepted by the buyer. In the case of revenue from contracts with buyers, where the
sale results in the provision of services, the performance obligation is discharged when the service is
rendered. Revenue from sales is revenue arising from contracts with buyers for the sale of goods or
services. Revenue from sales reflects transfers (deliveries) of contractually agreed goods or services to
buyers in the amount of the expected compensation 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 revenue from sales. 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 compensation due to the principal for the provision of the agency service).
Goods or services are transferred when the buyer obtains (or acquires) control of them. The buyer
obtains control of the good or service when he or she acquires the right to determine its use and the
right to substantially all of its residual benefits. Such control includes the ability to prevent others from
directing the use of the good or service and obtaining benefits from it. Benefits from goods or services
are potential cash flows (receipts or expenses savings) that can be obtained directly or indirectly in a
variety of ways. The Company transfers control of the good or service and thereby discharges or satisfies
the performance obligation, either at a point in time or gradually. When entering into a contract with a
buyer, the Company specifies all performance obligations contained in the contract. Each obligation to
transfer goods or services to the buyer is identified as a separate (distinct) performance obligation:
a) that, under the IFRS criteria, can be identified in the context of the contract separately from
other contractual obligations to transfer goods or services; and
b) the buyer can use the contractually agreed good or service alone or in combination with other
available or readily accessible resources (assets). For example, the fact that the Company
regularly sells the good or service separately would indicate that the buyer can use the good or
service alone or in conjunction with other readily available resources.
Proceeds from sales are recognised at an amount reflecting the transaction price allocated to the stand-
alone performance obligation. The transaction price is the amount of compensation to which the
Company expects to be entitled in exchange for transferring the goods or services to the buyer,
excluding amounts collected on behalf of third parties.
The control of goods and services depends on the terms of the sales contract, and the transfer takes
place at the moment the goods are taken over by the buyer or the service is rendered. The normal term
for payment is between 30 and 90 days.
Assets from contracts with buyers
A contractual asset is a right to compensation in exchange for goods or services that are transferred to
the buyer but have not yet been invoiced to the buyer. The Company recognises unbilled revenue for
goods and services supplied to buyers as a contractual asset.
Obligations under contracts with buyers

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A contractual obligation is an obligation to transfer goods or services to a buyer in return for
compensation received by the Company from the buyer. The Company recognises obligations under
contracts with buyers in respect of volume discounts granted. Contractual obligations are recognised as
revenue when the Company has fulfilled its performance obligation under the contract.
Other sales revenue
Revenue and other operating income are recognised when the service is rendered and the buyer has
obtained control of the goods or services in accordance with IFRS 15.
Other operating income arises on the disposal of intangible assets and tangible fixed assets as the
excess of their sale value over their carrying amount and on the occurrence of other unusual items. It
is recognised in the amounts actually incurred.
Financial revenue
They include interest income on investments, dividend income, gains on disposal of available-for-sale
financial assets, foreign exchange gains and gains on hedging instruments recognised in the income
statement. Interest income is recognised when earned using the effective interest method. Dividend
income is recognised in the income statement when the right to receive payment is established.
R. EXPENSES
Expenses are recognised to the extent that a decrease in economic benefits during the period is
associated with a decrease in an asset or an increase in a debt and that decrease can be measured
reliably.
Operating expenses are recognised when the material is consumed or the service rendered, in the
period to which they relate. The normal valuation of inventories 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 inventories, as well as purchase and selling costs and general operating expenses
accrued during the accounting period. The transfer of costs from inventories 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 inventory of products and work in progress, less the costs retained in closing inventory 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.
Impairment charges 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 include interest costs 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.

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S. 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 equity.
Taxable profit differs from net profit reported in the income statement because it excludes items of
income or expense that are taxable or deductible in other years, and items that are never taxable or
deductible.
The tax assessed is the tax expected to be paid on the taxable profit for the financial year using tax
rates applicable at the reporting date.
Deferred tax is accounted for using the liability method in the statement of financial position, taking into
account temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and amounts for tax reporting purposes. Deferred tax is provided at the amount
expected to be payable when the temporary differences reverse, based on laws enacted or substantively
enacted at the reporting date.
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 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.
T. REPORTING BY SEGMENT
A segment is an identifiable component of a company that engages in specific products or services (an
operating segment) or in products and services in a specific, geographically defined economic
environment (an area segment) and that are differentiated by their risks and rewards. Segment
information is presented by the Company's geographical and business segments. The Company's
reporting by segment is based on its geographical segments, which are also supported by the Company's
corporate governance and internal reporting system.
The Company's regional segments are Slovenia, the European Union, Third Countries and Markets of
the Former Yugoslavia. The Company's business segments are Titanium Dioxide, Zinc Processing,
Varnishes, Masters and Printing Inks, Agro Programme, and Other. Segment information is presented
in the section Revenue from contracts with buyers in the Accounting section of the report. Segment
profit or loss is shown as the difference between operating income and expenses, taking into account
those revenues and expenses that are directly attributable to each segment, excluding revaluation
income and expenses that cannot be allocated to the segment in a meaningful way. Smaller operating
segments are aggregated into one category because they are insignificant and detailed disclosures could
cause significant harm to the Company.
U. EARNINGS PER SHARE

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Cinkarna Celje, d.d., reports basic earnings per share, which is calculated by dividing the profit/loss
attributable to ordinary shareholders by the number of ordinary shares in issue during the financial year.
Diluted earnings per share is equal to basic earnings because all Cinkarna Celje shares belong to the
same class of ordinary registered unit shares.
V. FINANCIAL RISK MANAGEMENT IN THE USE OF FINANCIAL INSTRUMENTS
Cinkarna Celje, d.d., uses various instruments to manage financial risks in its use of financial
instruments to manage credit, liquidity, market, currency and operational risks, which are described in
more detail in Note VI Financial instruments and financial risks.
III REPORTING BY SEGMENT
Cinkarna Celje, d.d., reports revenue from contracts with buyers by geographically defined segments
and sales programmes. Revenue from contracts with buyers is reported by geographical location of the
buyers and by sales programme.
In preparing and presenting the income statement and revenue from contracts with buyers, the
Company monitors the following segments:
- Titanium dioxide, which covers sales of titanium dioxide pigment;
- Zinc processing, comprising sales of metallurgical products;
- Paints, varnishes, masters and printing inks;
- Agro programme, which includes sales of copper fungicides and Humovit;
- Other, comprising sales of CEGIPS, sulphuric acid, polymers, service activities, holiday facilities,
etc.
Sales by business segment
In €
2021
2020
Titanium dioxide
156,788,783
143,056,990
Zinc processing
6,364,355
5,125,075
Varnishes, masters and printing inks
17,687,588
15,207,872
Agro programme
7,990,692
5,525,614
Other
3,630,682
3,471,300
TOTAL
192,462,100
172,386,851
Sales by regional segment
In €
2021
2020
Slovenia
17,355,361
14,623,430
European Union
142,500,353
130,529,281
Markets of the former Yugoslavia
4,383,469
3,730,801
Third countries
24,693,293
20,280,947
Third countries – dollar market
3,529,624
3,222,392
TOTAL
192,462,100
172,386,851
Operating result by business segment
The Company also monitors segment results by sales programme, which are regularly reviewed and
used to inform decisions on the future performance of the individual programme. The Company monitors
operating results by segment. However, the Company monitors financial results, income tax, deferred
tax assets and net profit at the level of the Company as a whole, and the Company's statement of
financial position is also monitored only at the level of the Company.
In €

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95
Titanium dioxide
Zinc processing
Varnishes, masters and
printing inks
Agro programme
Other
Total
Leto 2021
Leto 2020
Leto 2021
Leto 2020
Leto 2021
Leto 2020
Leto 2021
Leto 2020
Leto 2021
Leto 2020
Leto 2021
Leto 2020
Revenue from
contracts with buyers
156.788.783
143.056.990
6.364.355
5.125.075
17.687.588
15.207.872
7.990.692
5.525.614
3.630.681
3.471.300
192.462.100
172.386.851
Other operating income
1.152.824
824.223
2.058
7.868
20.812
36.544
30.340
161.727
3.931.503
4.259.456
5.137.537
5.289.818
Change in value of
inventory
-709.213
-2.520.949
55.962
-211.788
-76.227
-356.196
275.758
588.650
-10.125
133.765
-463.845
-2.366.517
Operating expenses
-117.981.010
-119.074.438
-6.259.407
-4.982.603
-15.351.019
-12.978.708
-8.338.342
-6.593.383
-9.229.407
-9.146.575
-157.159.184
-152.775.707
- of which depreciation
-6.142.369
-4.815.179
-95.229
-83.314
-479.852
-459.762
-330.947
-308.313
-4.233.017
-4.266.214
-11.281.415
-9.932.781
Operating profit
39.251.384
22.285.828
162.969
-61.448
2.281.154
1.909.512
17.172
-317.392
-1.736.071
-1.282.054
39.976.608
22.534.445
Interest income
0
0
0
0
0
0
0
0
0
0
12.284
25.108
Other financial income
0
0
0
0
0
0
0
0
0
0
13.915
25.927
Interest expenses
0
0
0
0
0
0
0
0
0
0
-4.189
-37.928
Other financial
expenses
0
0
0
0
0
0
0
0
0
0
-42.113
-35.954
Financial result
0
0
0
0
0
0
0
0
0
0
-20.103
-22.846
Deferred taxes
0
0
0
0
0
0
0
0
0
0
276.914
-131.329
Income tax
0
0
0
0
0
0
0
0
0
0
-7.006.296
-3.429.614
Net profit
0
0
0
0
0
0
0
0
0
0
33.227.123
18.950.655
IV NOTES
1 Intangible assets
In €
Group of intangible assets for 2021
Acquisition value
Value adjustment
Undepreciated value
31/12/2021
31/ 12/ 2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Property rights
5,633,593
5,537,658
4,744,346
4,519,833
889,248
1,017,825
Assets under acquisition
91,424
17,646
0
0
91,424
17,646
TOTAL
5,725,018
5,555,304
4,744,346
4,519,833
980,672
1,035,471
In €
Group of intangible assets for 2020
Acquisition value
Value adjustment
Undepreciated value
31/12/2020
01/01/2020
31/12/2020
01/01/2020
31/12/2020
01/01/2020
Property rights
5,537,658
5,436,680
4,519,833
4,241,337
1,017,825
1,195,343
Assets under acquisition
17,646
14,396
0
0
17,646
14,396
TOTAL
5,555,304
5,451,076
4,519,833
4,241,337
1,035,471
1,209,739
Intangible assets have finite useful lives. The Company has reviewed their values and determined that
their present value does not exceed their recoverable amount. In 2021, the Company invested in non-
current property rights from investments in software and project documentation. Decreases in intangible
assets relate to depreciation and the write-off of other intangible assets.
81% of all intangible assets in use as at 31 December 2021 have been fully depreciated (77% as at 31
December 2020, the same as at 1 January 2020). The percentage is calculated according to the cost of
the intangible assets.
No intangible assets are pledged as guarantees for liabilities as at 31 December 2021, 31 December
2020, 1 January 2020. The Company also has no commitments under contracts for the purchase of
intangible assets.
Movements in intangible assets

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96
In €
Year 2021
Property rights
Assets under acquisition
TOTAL
ACQUISITION VALUE
As at 31/12/2020
5,537,658
17,646
5,555,304
Increases
0
169,713
169,713
Transfer from assets under acquisition
95,935
-95,935
0
As at 31/12/2021
5,633,593
91,424
5,725,017
VALUE ADJUSTMENT
As at 31/12/2020
4,519,832
0
4,519,832
Current year depreciation
224,513
0
224,513
As at 31/12/2021
4,744,345
0
4,744,345
UNDEPRECIATED VALUE
As at 31/12/2020
1,017,826
17,646
1,035,471
As at 31/12/2021
889,248
91,424
980,672
Part of the non-current assets relate to easements with definitive useful lives, which are recorded under
land.
In €
Year 2020
Property rights
Assets under acquisition
TOTAL
ACQUISITION VALUE
As at 01/01/2020
5,436,680
14,396
5,451,076
Increases
0
104,228
104,228
Transfer from assets under acquisition
100,978
-100,978
0
As at 31/12/2020
5,537,658
17,646
5,555,304
VALUE ADJUSTMENT
As at 01/01/2020
4,241,337
0
4,241,337
Current year depreciation
278,495
0
278,495
As at 31/12/2020
4,519,833
0
4,519,833
UNDEPRECIATED VALUE
As at 01/01/2020
1,195,343
14,396
1,209,739
As at 31/12/2020
1,017,826
17,646
1,035,471
2 Tangible fixed assets
In €
Group of tangible fixed assets
for 2021
Acquisition value
Value adjustment
Undepreciated value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Land
10,803,263
10,803,263
1,126,413
1,054,071
9,676,850
9,749,192
Buildings
126,487,363
124,538,191
84,187,165
81,177,713
42,300,197
43,360,477
Equipment
227,909,652
221,895,740
183,515,529
179,915,685
44,394,123
41,980,055
Assets under acquisition
9,172,421
10,492,059
0
0
9,172,421
10,492,059
Advances
352,537
821,380
0
4,158
352,537
817,222
TOTAL
374,725,236
368,550,632
268,829,107
262,151,627
105,896,130
106,399,005
The Company does not have any assets under finance leases and, as at 31 December 2021, 31
December 2020 and 1 January 2020, the Company does not have any assets pledged as collateral for
any guarantees.
In €

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97
Group of tangible fixed
assets for 2020
Acquisition value
Value adjustment
Undepreciated value
31/ 12/ 2020
01/01/2020
31/ 12/ 2020
01/01/2020
31/ 12/ 2020
01/01/2020
Land
10,803,263
10,803,263
1,054,071
981,729
9,749,192
9,821,534
Buildings
124,538,191
120,691,641
81,177,713
78,461,230
43,360,477
42,230,411
Equipment
221,895,740
207,759,470
179,915,685
175,256,936
41,980,055
32,502,534
Assets under acquisition
10,492,059
18,586,034
0
0
10,492,059
18,586,034
Advances
821,380
162,153
4,158
4,158
817,222
157,995
TOTAL
368,550,632
358,002,561
262,151,627
254,704,053
106,399,006
103,298,508
Movements in property, plant and equipment
In €
Year 2021
Land
Buildings
Production and
other equipment
TOTAL
Assets under
acquisition
Advances
TOTAL
ACQUISITION VALUE
As at 31/12/2020
10,803,263
124,538,191
221,895,740
357,237,194
10,492,059
821,379
368,550,632
Increases
0
0
0
0
11,155,694
410,018
11,565,713
Transfer from assets under
acquisition
0
1,949,172
9,421,240
11,370,412
-12,475,332
0
-1,104,920
Reductions
0
0
3,407,328
3,407,328
0
878,861
4,286,189
As at 31/12/2021
10,803,263
126,487,363
227,909,652
365,200,278
9,172,421
352,537
374,725,236
VALUE ADJUSTMENT
As at 31/12/2020
1,054,071
81,177,714
179,915,685
262,147,470
0
4,157
262,151,627
Depreciation
72,342
3,203,086
7,781,475
11,056,902
0
0
11,056,902
Reductions
0
193,634
4,181,631
4,375,264
0
4,157
4,379,421
As at 31/12/2021
1,126,413
84,187,166
183,515,529
268,829,108
0
0
268,829,108
UNDEPRECIATED VALUE
As at 31/12/2020
9,749,192
43,360,477
41,980,055
95,089,725
10,492,059
817,222
106,399,006
As at 31/12/2021
9,676,850
42,300,197
44,394,123
96,371,170
9,172,421
352,537
105,896,129
In €
Year 2020
Land
Buildings
Production and
other equipment
TOTAL
Assets under
acquisition
Advances
TOTAL
ACQUISITION VALUE
As at 01/01/2020
10,803,263
120,691,641
207,759,470
339,254,374
18,586,034
162,152
358,002,560
Increases
0
0
0
0
12,128,762
877,431
13,006,193
Transfer from assets under
acquisition
0
4,337,753
16,376,187
20,713,940
-20,713,940
0
0
Reductions
0
491,203
2,239,917
2,731,120
491,203
218,204
3,440,527
As at 31/12/2020
10,803,263
124,538,191
221,895,740
357,237,194
10,492,059
821,379
368,550,632
VALUE ADJUSTMENT
As at 01/01/2020
981,729
78,461,230
175,256,936
254,699,895
0
4,157
254,704,052
Depreciation
72,342
3,073,738
6,508,205
9,654,285
0
0
9,654,285
Reductions
0
357,255
1,849,456
2,206,711
0
0
2,206,711
As at 31/12/2020
1,054,071
81,177,714
179,915,685
262,147,470
0
4,157
262,151,627
UNDEPRECIATED VALUE
As at 01/01/2020
9,821,534
42,230,411
32,502,534
84,554,479
18,586,034
157,995
103,298,508
As at 31/12/2020
9,749,192
43,360,477
41,980,055
95,089,725
10,492,059
817,222
106,399,006
In 2021, the Company recognises a decrease in tangible fixed assets as a result of the difference
between the value of the invested assets and the accumulated depreciation. In 2021, the Company
invested € 11.2 million (€ 12.2 million in 2020), mainly in the titanium dioxide field, of which the most

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98
important investments are as follows: replacement of the sulphur combustion furnace (€ 1.4 million);
C line neutralisation second stage (€ 0.4 million), modernisation of the calcination treatment plant (€
0.5 million), separate collection of sewage (€ 0.5 million), installation of tanks 18.05 B and 18.11 B 8
(€ 0.3 million), installation of solar power plants (€ 0.3 million), etc.
Also included in tangible fixed assets is a reported increase in the cost of assets of € 3,263,831 (2020:
€ 3,882,906) from capitalised own products and services, where the Company capitalises its own
maintenance services and materials consumed for the maintenance of the capitalised assets. Within
this, the realisation of capitalised own effects involved the use of materials, labour and the purchase of
other assets, which are recorded in more detail on individual existing fixed assets that were either
repaired or renewed during the year and during the regular annual overhaul in the last quarter of 2021.
The key investments within the in-house maintenance team were the overhaul of the calcination furnace
(€ 0.4 million), the modernisation of the calcination plant (€ 0.3 million), the overhaul of the filter press
membrane chamber (€ 0.3 million), the installation of tanks 18.05 B and 18.11 B (€ 0.2 million),
restoration of the vapour collector (€ 0.2 million), replacement of the hydrolyser 21.06 B (€ 0.2 million),
the remaining difference in the value of the works to the total is due to the rehabilitation of individual
existing assets for which the intervention of the works carried out has either increased the efficiency or
the service life of that asset, and which are important for the ongoing provision of the production process
of the carrier product.
Land also includes easements amounting to € 334,362 (€ 406,704 in 2020). The easements with a final
useful life of 20 years or more relate to the laying and maintenance of pipelines, cables and water mains
and for the purpose of carrying out wet-to-dry gypsum filling works. There was no increase in the cost
of land in 2021, the decrease in land relates to the amortisation of the easements accrued for the
financial year 2021 in the amount of € 72,342.
No borrowing costs were attributed to property, plant and equipment in 2021. 71% of all property, plant
and equipment in use as at 31 December 2021 was fully depreciated (70% as at 31 December 2020).
The proportion is calculated on the cost of property, plant and equipment, excluding land.
As at 31 December 2021, the Company has outstanding commitments for the purchase of tangible fixed
assets for € 1,699,831 (2020: € 840,863; and 1 January 2020: € 940,864).
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 2021, it can be concluded that both securities have
a known market price, which is not indicative of the fair value of these investments, as the shares have
a very low turnover.
The Company reviewed the fair value of assets and measured the financial assets at fair value through
other comprehensive income at fair value. The financial assets were reduced by fair value impairment
of € 104 thousand (31 December 2020: increase of € 341 thousand) against fair value reserves.
Dividends received in 2021 amount to € 13,915 (2020: € 23,075).
In €
Group of non-current financial
investments for 2021
Acquisition value
Value adjustment
Fair value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Other investments
1,755,026
1,755,026
103,927
0
1,651,099
1,755,026
TOTAL
1,755,026
1,755,026
103,927
0
1,651,099
1,755,026
In €

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99
Group of non-current financial
investments for 2020
Acquisition value
Value adjustment
Fair value
31/12/2020
01/01/2020
31/12/2020
01/01/2020
31/12/2020
01/01/2020
Other investments
1,755,026
1,413,623
0
0
1,755,026
1,413,623
TOTAL
1,755,026
1,413,623
502,759
0
1,755,026
1,413,623
The members of the Management Board and Supervisory Board have not received any long-term loans.
Cinkarna Celje, d.d., has no other subsidiaries or associates and does not deal with any related parties.
Movements in non-current financial investments
In €
Year 2021
Other financial investments
ACQUISITION VALUE
As at 31/12/2020
1,755,026
As at 31/12/2021
1,755,026
VALUE ADJUSTMENT
As at 31/12/2020
0
Increase during the year
103,927
As at 31/12/2021
103,927
FAIR VALUE
As at 31/12/2020
1,755,026
As at 31/12/2021
1,651,099
In €
Year 2020
Other financial investments
ACQUISITION VALUE
As at 01/01/2020
1,413,623
Increase during the year
341,403
As at 31/12/2020
1,755,026
VALUE ADJUSTMENT
As at 01/01/2020
0
As at 31/12/2020
0
FAIR VALUE
As at 01/01/2020
1,413,623
As at 31/12/2020
1,755,026
4 Other non-current assets
In €
Group of other non-current assets for
2021
Acquisition value
Value adjustment
Undepreciated value
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
Emission allowances
53,028
25,629
0
0
53,028
25,629
TOTAL
53,028
25,629
0
0
53,028
25,629
In €
Group of intangible assets for 2020
Acquisition value
Value adjustment
Undepreciated value
31/12/2020
01/01/2020
31/12/ 2020
01/01/2020
31/12/2020
01/01/2020
Other intangible assets for 2020
25,629
27,072
0
0
25,629
27,072
TOTAL
25,629
27,072
0
0
25,629
27,072
Other assets comprise emission allowances, securities and other long-term assets. Other intangible
assets include emission allowances obtained free of charge from the State, which are valued at € 1. In
2021, the Company acquired 40,327 allowances (all allowances acquired are free of charge from the
State in accordance with the Environmental Protection Act (ZVO-1) and sold 13,000 allowances in Q1
2021. The effects of the € 0.4 million of allowances sold are recorded in other operating income (Note
21).
The Company retains ownership of the remaining 53,028 allowances. The market (fair) value of one
allowance as at 31 December 2021 is € 79.70 (https://belektron.eu/sl/novice), representing a value of

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100
€ 4,226,172. The Company will submit a part of these allowances (25,361) to the Ministry in April 2022
for CO2 emissions, the remainder representing the excess of allowances (Cinkarna Celje, d.d., is a net
recipient of emission allowances).
5 Deferred tax assets and liabilities
In €
Description
Receivables
Liabilities
2021
2020
2019
2021
Situation as at 01/01
1,673,517
1,804,846
2,558,621
0
Increase during the year
410,663
22,416
47,301
19,746
Decrease during the year
133,748
153,745
801,076
0
Total
1,950,431
1,673,517
1,804,846
19,746
Offsetting
-19,746
0
0
-19,746
Situation at 31/12.
1,930,685
1,673,517
1,804,846
0
The decrease in deferred tax assets relates to the use of provisions for jubilee bonuses and severance
payments and for environmental and other provisions amounting to € 112,290, and the reversal of
valuation allowances on receivables and investments amounting to € 21,459. The increase in deferred
tax assets relates to half of the provision made for jubilee bonuses and retirement benefits amounting
to € 410,663. As at 31 December 2021, the Company has accrued deferred tax liabilities of € 19,746
for impairment of investments or fair value accounting, whereas previously the Company did not have
any such liabilities.
Changes in deferred tax assets had a positive impact on the income statement of € 276,914. The balance
of deferred tax assets as at 31 December is as follows:
In €
31/12/2021
31/12/2020
01/01/2020
Provisions for environmental purposes
1,491,515
1,218,948
1,313,552
Provisions for post-employment and other long-term benefits
367,967
342,162
347,623
Receivables
90,948
112,407
143,671
Total
1,950,431
1,673,517
1,804,846
Liabilities for financial assets at fair value through other
comprehensive income
-19,746
0
0
Total deferred tax assets
1,930,685
1,673,517
1,804,846
6 Inventory
In €
Group of inventory
31/12/2021
31/12/2020
01/01/2020
Realisable value
Material
26,842,350
21,487,973
24,636,886
26,842,350
Work in progress
2,471,875
2,533,235
2,297,051
2,471,875
Products
10,868,240
11,270,725
13,873,426
18,917,997
Merchandise
52,992
70,034
34,738
52,992
Advances made
63,018
162,638
150,285
63,018
TOTAL
40,298,476
35,524,605
40,992,387
48,348,233
In the financial year 2021, an additional write-down of € 386,724 (€ 303,974 in 2020 and € 393,367 in
2019) was made to the value of inventory of materials and supplies due to the revaluation, obsolescence
and unserviceability of inventory of materials and spare parts. There were no significant inventory
differences identified in 2020 or the previous year.
The valuation allowance for obsolescence and unserviceability of work-in-progress and finished goods
inventory amounted to € 16,094 in the current year (€ 28,890 in 2020, € 16,094 as at 1 January 2020).
In 2021, a inventory shortfall of € 3,810 was identified. The value of finished goods and work-in-progress
inventory decreased by 3% compared to 2020 due to increased sales of titanium dioxide pigment.

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101
Inventory is not pledged as collateral. The net realisable value of inventory as at 31 December 2021
exceeds their carrying amount.
7 Current financial investments
In €
Group of current financial receivables for 2021
Value of investments
Adjustment of investments
Net investments
31/ 12/ 2021
31/ 12/ 2020
31/ 12/ 2021
31/12/2020
31/ 12/ 2021
31/12/2020
Fair value of derivative financial instruments
0
35,056
0
0
0
35,056
TOTAL
0
35,056
0
0
0
35,056
In €
Group of current financial investments for 2020
Value of investments
Adjustment of investments
Net investments
31/12/2020
31/12/2019
31/12/2020
31/12/2020
31/12/2020
31/12/2019
Current loans to others
0
200,000
0
0
0
200,000
Fair value of derivative financial instruments
35,056
160,650
0
0
35,056
160,650
TOTAL
35,056
360,650
0
0
35,056
360,650
8 Current trade receivables
In €
Group of current trade receivables
31/12/2021
31/12/2020
01/01/2020
Receivables from buyers
29,148,099
24,734,182
23,948,700
Other receivables
2,024,804
2,004,056
1,764,687
Total
31,172,903
26,738,238
25,713,387
Current receivables from buyers
In €
Group of receivables for 2021
Value of receivables
Value adjustment
Net receivables
31/12/2021
31/12/2020
31/12/2021
31/12/2020
31/12/2021
31/12/2020
In-country buyers
4,063,142
3,730,884
267,017
367,302
3,796,125
3,363,582
Buyers abroad
24,868,008
21,012,811
381,437
360,960
24,486,571
20,651,851
Indirect exporters
865,403
718,749
0
0
865,403
718,749
TOTAL
29,796,553
25,462,444
648,454
728,262
29,148,099
24,734,182
The Company's receivables from buyers are secured with an external institution as of 1 June 2021 and
are not given as guarantees for liabilities. The amount of unsecured receivables is € 658,688.
In €
Group of receivables from
buyers for 2020
Value of receivables
Value adjustment
Net receivables
31/12/2020
01/01/2020
31/12/2020
01/01/2020
31/12/2020
01/01/2020
In-country buyers
3,730,884
3,736,871
367,302
403,510
3,363,582
3,333,361
Buyers abroad
21,012,811
20,294,503
360,960
368,351
20,651,851
19,926,152
Indirect exporters
718,749
680,004
0
0
718,749
680,004
Advances given
0
9,183
0
0
0
9,183
TOTAL
25,462,444
24,720,561
728,262
771,861
24,734,182
23,948,700

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Other trade receivables
In €
Group of other receivables
31/12/2021
31/12/2020
01/01/2020
VAT receivable
1,789,384
1,708,534
1,634,971
Receivables from the State due to COVID-19
0
101,073
0
Receivables from State institutions
186,642
160,906
101,420
Receivables from employees
26,027
19,081
20,731
Other receivables
22,751
14,462
7,565
TOTAL
2,024,804
2,004,056
1,764,687
The Company has no receivables from members of the Management Board or the Supervisory Board.
9 Cash and cash equivalents
In €
Group of assets
31/12/2021
31/12/2020
01/01/2020
Cash in hand
30
118
298
Cash in transit
0
0
86
Cash in accounts
53,622,153
27,076,236
16,259,781
Short-term deposits at call
6,124,412
10,041,423
15,437,719
Foreign currency balances on accounts
0
540,047
358
TOTAL
59,746,594
37,657,824
31,698,242
Cash is invested with domestic banks and bears interest at a fixed annual rate.
10 Other current assets
In €
Description
31/12/2021
31/12/2020
01/01/2020
Prepaid expenses
153,862
290,744
327,660
VAT on advances received
1,362
5,243
500
Material en route and other
0
0
5,110
TOTAL
155,223
295,987
333,270
11 Equity
In €
Equity items
31/12/2021
31/12/2020
01/01/2020
Called-up equity
20,229,770
20,229,770
20,229,770
Equityl reserves
44,284,976
44,284,976
44,284,976
Legal reserves
16,931,435
16,931,435
16,931,435
Reserves for own shares
4,814,764
3,900,280
3,900,280
Own shares
-4,814,764
-3,900,280
-3,900,280
Other profit reserves
84,892,734
77,500,437
74,670,090
Fair value reserve
-1,179,701
-647,812
-1,155,661
Retained earnings
25,006,577
16,522,136
15,845,496
TOTAL EQUITY
190,165,790
174,820,942
170,806,105
The Company's shareholders equity consists of 807,977 freely transferable unit shares of the same
class. All of the ordinary shares have the same nominal value and are fully paid up. At the balance sheet
date of 31 December 2021, the value of the called-up equity amounts to € 20,229,767.
Equity reserves may be used under the conditions and for the purposes laid down by law and amount
to € 44,284,976 as at 31 December 2021. They were created by a special regulation in the course of
the ownership transformation of Cinkarna Celje and have not changed in 2021 compared to 2020.
Legal reserves amount to € 16,931,435 as at 31 December 2021 and remain unchanged in 2021.

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103
The Company holds 26,465 treasury shares as at 31 December 2021 (21,951 treasury shares as at 31
December 2020, and 10,652 treasury shares as at 1 January 2020). In 2021, pursuant to the Resolution
of the General Meeting of 5 June 2018 and the Resolution of 17 June 2020, the Company acquired 4,514
treasury shares for an amount of € 0.91 million, representing 4.5% of the shareholders equity. At the
same time, the Company created reserves for treasury shares for the same amount against other profit
reserves.
Reserves for treasury shares as at 31 December 2021, arising from the purchase of additional
treasury shares, increased by € 914,484 to € 4,814,764 in 2021.
Other profit reserves increased in 2021 on account of a 25% transfer of current profit to reserves of
€ 4,737,665, and decreased by the amount of the purchase of treasury shares of € 914,484, amounting
to € 84,892,734 as at 31 December 2021.
Fair value reserve
The fair value reserve includes the cost of remeasuring post-employment benefits (actuarial
gains/losses) arising from the change in the present value of the retirement benefit obligations and the
change in the fair value of financial assets.
In €
Year 2021
31/12/2020
Increase
Decrease
31/12/2021
Change in reserves arising from the fair value measurement of
financial investments
805,940
0
0
805,940
Unrealised actuarial gains/losses
-1,453,752
0
531,889
-1,985,641
TOTAL
-647,812
0
531,889
-1,179,701
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 € 408,216 from 2021 due to the recalculation
of post-employment benefits and € 84,181 due to the change in the fair value of financial assets, and
amounted to € -1,179,701 at the end of 2021.
In €
Year 2020
01/01/2020
Increase
Decrease
31/12/2020
Change in reserves arising from the fair value measurement of
financial investments
464,537
341,403
0
805,940
Other components of comprehensive income of the reporting
period
-1,620,198
166,446
0
-1,453,752
TOTAL
-1,155,661
507,849
0
-647,812
Retained earnings
Retained earnings were increased by the current year's profit of € 24,920,343 and decreased by the use
of the balance sheet profit for the payment of dividends, following the Resolution of the General Meeting
of the Company's Shareholders of 15 June 2021 to vote on the proposal to use the balance sheet profit
for 2020, which amounted to € 16,522,136. In accordance with the proposal adopted, part of the balance
sheet profit of € 16,435,902 (€ 21 per share) was paid out in the form of dividends. The remainder, i.e.
€ 86,234, was not distributed and remained as retained earnings.
Dividend per share
The gross dividend per share paid is € 21 in 2021 and € 17 in 2020.

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104
Determination of balance sheet profit
In €
31/12/2021
31/12/2020
01/01/2020
Mandatory use of profits
Net profit
33,227,124
18,950,656
21,436,385
Coverage of losses carried forward
0
0
0
Creation of legal reserves
0
0
0
Profit after compulsory application
33,227,124
18,950,656
21,436,385
Other reserves as decided by the Management Board and the Supervisory Board
-8,306,781
-4,737,664
-5,359,096
Residual profit
24,920,343
14,212,992
16,077,289
Determination of balance sheet profit
Residual profit
24,920,343
14,212,992
16,077,289
Profit carried forward
86,234
2,309,144
-231,793
Balance sheet profit
25,006,577
16,522,136
15,845,496
12 Provisions for employee benefits
The Company recognises a provision for jubilee and retirement bonuses made in accordance with the
provisions of IAS 19 as amended. The actuarial calculation is made using the book-entry method and
has been carried out by an approved external actuary. The assumptions used were: Company salary
growth of 2.5% (1% in 2020 and 2% on 1 January 2020), discount rate of 0.95% per annum (discount
rate of 0.44% in 2020), retirement conditions, 2000-2002 mortality tables, and turnover of the
Company's workforce (the assumptions used are the same in 2021 as those in 2020).
In €
Employees' post-employment benefits
31/12/2021
31/12/2020
01/01/2020
Provision for severance payments
3,693,949
3,443,816
3,643,497
Provision for jubilee awards
562,115
540,612
564,765
TOTAL
4,256,064
3,984,428
4,208,262
In €
Employees' post-employment benefits for 2021
31/12/2020
Creation
Designated consumption
31/12/2021
Provision for severance payments
3,443,816
546,512
296,379
3,693,949
Provision for jubilee awards
540,612
75,039
53,536
562,115
TOTAL
3,984,428
621,551
349,914
4,256,064
In €
Employees' post-employment benefits for 2020
01/01/2020
Creation
Designated consumption
31/12/2020
Provision for severance payments
3,643,497
179,860
379,541
3,443,816
Provision for jubilee awards
564,765
56,099
80,252
540,612
TOTAL
4,208,262
235,959
459,793
3,984,428
Sensitivity analysis
In €
Sensitivity analysis as at 31/12/2021
Discount rate
Salary growth
Change in
Percent
Percent
Change by
+0.5
-0.5
+0.5
-0.5
Impact on liability balance
-167,295
-181,585
177,821
-165,640
In €
Sensitivity analysis as at 31/12/2020
Discount rate
Salary growth
Change in
Percent
Percent
Change by
+0.5
-0.5
+0.5
-0.5
Impact on liability balance
-160,423
174,170
170,515
-158,834

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105
In €
Sensitivity analysis as at 01/01/2020
Discount rate
Salary growth
Change in
Percent
Percent
Change by
+0.5
-0.5
+0.5
-0.5
Impact on liability balance
-138,197
-177,120
174,246
-139,754
13 Other provisions
In €
Other provisions
31/12/2021
31/12/2020
01/01/2020
Environmental provisions
18,801,189
16,349,530
17,768,340
State aid received – emission allowances
27,667
51,228
27,072
Provisions for litigation amounts
0
242,705
280,345
Accrued costs
0
15,692
15,692
TOTAL
18,828,856
16,659,156
18,091,449
Movement in provisions
In €
Provisions for 2021
31/12/2020
Creation
Designated consumption
Elimination
31/12/2021
Provisions for litigation amounts
242,705
0
242,705
0
0
Accrued costs
15,692
0
0
15,692
0
Emission allowances
51,228
40,397
63,958
0
27,667
Environmental provisions
16,349,530
3,701,214
1,249,555
0
18,801,189
TOTAL
16,659,156
3,741,611
1,556,219
15,692
18,828,856
In €
Provisions for 2020
01/01/2020
Creation
Designated consumption
31/12/2020
Provisions for litigation amounts
280,345
12,360
50,000
242,705
Accrued costs
15,692
0
0
15,692
Emission allowances
27,072
48,227
24,071
51,228
Environmental provisions
17,768,340
0
1,418,810
16,349,530
TOTAL
18,091,449
60,587
1,492,881
16,659,156
Environmental provisions
I. The provision "Environmental investments in the field of titanium dioxide production" (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 € 8.7 million,
representing 47% of the invested funds. 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
funds reserved at the end of 2021 is € 3.1 million, at the end of 2020 € 3.5 million, and as at 1
January 2020 € 3.9 million.
II. Restoration of the barrier of the Za Travnik waste disposal plant, originally created for € 7 million.
The amount was based on the project for the restoration of the Bukovžlak landfill barrier. In the
years since the provision was made, three restoration measures have already been carried out
(drainage of backwaters on the V side - Phase I, drainage of backwaters on the V side - Phase II,
which has not been carried out yet, and the construction of a reinforcement embankment on the
2nd berm of the barrier). In recent years, some major rehabilitation works have been carried out
and the technical observation network has been extended and partially renewed. The results of the
technical observation show a very good situation, so that the still planned part of the restoration is
not yet necessary. The balance of funds reserved as at 31 December 2019 was € 384,366. In 2021,
on the basis of the work carried out by the contractors, we have spent € 3,395, re-examined the
situation in the light of the rising prices of materials and increased the provision by € 15,912. The
balance of the provision as at 31 December 2021 is € 373,300, at the end of 2020 € 360,774 and
as at 1 January 2020 € 384,366.
III. Restoration of the Bukovžlak non-hazardous waste landfill, originally set at € 5 million, additionally
increased by € 1 million in 2017 to carry out several necessary interventions – the balance at the
end of 2019 was € 4.5 million. In the years since the provision was made, a number of interventions
have been carried out at the site. The responsible project engineer, Hidrosvet d.o.o., has prepared

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106
an estimate of the cost of completing the works on the basis of the facts known so far. In 2021, we
have spent € 804,135 for the restoration and, on the basis of additional estimates, we have
increased the provision by € 3,452,592. The total amount of funds remaining at the end of 2021
was therefore € 6,187,523, at the end of 2020 € 3,539,065, and as at 1 January 2020 € 4,479,351.
IV. The results of regular technical monitoring of the Bukovžlak high embankment barrier show a
steady trend of deteriorating safety on the eastern flank of the barrier. In order to ensure its long-
term safety, the most appropriate measure would be drainage, but this procedure requires projects
to be drawn up and permits to be obtained. In order to avoid a critical deterioration of the safety
situation in the meantime, the project designer has foreseen two parallel interventions - the
restoration of the V flank and the preparation of the embankment to start lowering the water level
in the impoundment. The estimated cost is € 3,032,000. A new provision has been made for this
amount as at 31 December 2017. In 2021, we have spent € 10,454 and, on the basis of a new
estimate of the project costs due to the increase in the purchase price of materials, we have
increased the provision by € 232,700, so that the balance of the provision as at 31 December 2021
is € 3,151,168, at the end of 2020 € 2,928,922, and as at 1 January 2020 € 2,951,877.
V. Remediation of risks due to old burdens at the current production sites of Cinkarna Celje: The
contractor of the Assessment of risks to human health and the environment due to old burdens at
the current production sites of CC foresaw the possible remediation measures and estimated them
financially at a total of € 6.4 million. For this amount, a new provision was made as at 31 December
2017 and € 14,100 was spent in 2021, resulting in a provision balance of € 5,988,176 as at 31
December 2021, € 6,002,275 at the end of 2020, and € 6,011,275 as at 1 January 2020.
Given that the provisions under items II to V were revised in 2017 and reassessed in 2021 by external
experts due to the increase in the price of specific services and materials, the Management Board
considers that the amount of the provisions is appropriate.
In €
Environmental provisions for 2021
Situation as at
31/12/2020
Plan of intended
use for 2021
Creation in 2021
Consumption in
2021
Situation as at
31/12/2021
Provision for the Za Travnik landfill
360,774
100,000
15,921
3,395
373,300
Provision for the Bukovžlak landfill (ONOB)
3,539,065
2,000,000
3,452,592
804,135
6,187,523
Provision for the Bukovžlak high embankment barrier
2,928,922
200,000
232,700
10,454
3,151,168
Provision for the elimination of risks due to old burdens – CDM SMITH
6,002,275
300,000
0
14,100
5,988,176
Environmental provision – Environmental investment in TiO2 production
3,518,494
0
0
417,471
3,101,022
TOTAL
16,349,530
2,600,000
3,701,214
1,249,555
18,801,189
The consumption of the provisions in 2021 is represented by the contractors' costs for the works carried
out amounting to € 831,083 and the accrued depreciation of € 320, which are directly charged to the
provisions made (items II, III and IV of the environmental provisions), and the accrued depreciation of
the invested assets amounting to € 417,471 (item I of the environmental provisions). The additional
provisioning relates to the re-verification of the provision balance with the documentation of the external
contractor Hidrosvet. The external contractors estimate a completion time of 10 to 20 years, which
cannot be confirmed with certainty as the works are unpredictable and estimated, and the timing of the
works is not fixed in advance or is difficult to define.
In €
Environmental provisions for 2020
Situation as at
01/01/2020
Plan of intended use
for 2020
Consumption in 2020
Situation as at
31/12/2020
Provision for the Za Travnik landfill
384,366
80,000
23,592
360,774
Provision for the Bukovžlak landfill (ONOB)
4,479,351
1,520,000
940,286
3,539,065
Provision for the Bukovžlak high embankment barrier
2,951,877
300,000
22,955
2,928,922
Provision for the elimination of risks due to old burdens – CDM SMITH
6,011,275
100,000
9,000
6,002,275
Environmental provision – Environmental investment in TiO2 production
3,941,471
0
422,977
3,518,494
TOTAL
17,768,340
2,000,000
1,418,810
16,349,530
The consumption of the provisions in 2020 is represented by the costs incurred by contractors for the
work carried out, amounting to € 995,513, and by the accrued depreciation of € 320 directly charged
to the provisions made (items II, III and IV of the environmental provisions), and the accrued
depreciation of the assets invested, amounting to € 422,977 (item I of the environmental provisions).
The additional provisioning relates to the re-verification of the provision balance with the documentation
of the external contractor Hidrosvet.

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107
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 2021, we have fully earmarked the ceded contributions and bonuses
of the period to cover the salary costs of disabled persons.
In €
Deferred income
31/12/2021
31/12/2020
01/01/2020
Deferred contributions for employment of disabled persons
913
1,799
2,896
Non-current deferred income for equipment
1,776
2,516
4,355
Funds received from the EU Fund
161,172
189,073
216,975
Equipment and vehicles acquired free of charge
24,221
39,429
54,108
TOTAL
188,082
232,817
278,334
In €
Deferred income for 2021
31/12/2020
Creation
Designated consumption
31/12/2021
Deferred contributions for employment of disabled persons
1,799
29,324
30,210
914
Non-current deferred income for equipment
2,516
0
740
1,776
Funds received from the EU Fund
189,073
0
27,902
161,171
Equipment and vehicles acquired free of charge
39,429
0
15,208
24,221
TOTAL
232,817
29,324
74,059
188,082
In €
Deferred income for 2020
01/01/2020
Creation
Designated consumption
31/12/2020
Deferred contributions for employment of disabled persons
2,898
42,428
43,525
1,799
Non-current deferred income for equipment
4,355
0
1,840
2,516
Funds received from the EU Fund
216,974
0
27,901
189,073
Equipment and vehicles acquired free of charge
54,107
0
14,678
39,429
TOTAL
278,334
42,428
87,943
232,817
15 Current financial liabilities
In €
Group of liabilities
31/12/2021
31/12/2020
01/01/2020
Current liabilities related to profit distribution – dividends
0
12,415
22,973
Current financial liabilities – accruals, cessions
191,886
47,675
21,621
Current derivative liabilities – term transactions
5,616
0
0
TOTAL
197,503
60,090
44,594
Movement in financing liabilities in 2021
In €
Situation as at 31/12/2020
Monetary changes
Non-monetary changes
Situation as at 31/12/2021
Acquisitions/Disposals
Dividends
12,415
-16,448,317
16,435,902
0
Assignments, cessions, interest,
forward transactions
47,675
-7,741
157,569
197,503
Treasury shares
0
-914,484
914,484
0
Total
60,090
-17,370,542
17,507,955
197,503
Movement in financing liabilities in 2020
In €
Situation as at 01/01/2020
Monetary changes
Non-monetary changes
Situation as at 31/12/2020
Acquisitions/Disposals
Dividends
22,973
-13,546,910
13,536,352
12,415
Assignments, cessions, interest,
forward transactions
21,621
-4,938
30,992
47,675
Treasury shares
-1,907,317
1,907,317
0
Total
44,594
-15,459,165
15,474,661
60,090

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108
16 Current trade payables
In €
Trade payables
31/12/2021
31/12/2020
01/01/2020
Payables to suppliers
18,690,237
9,284,985
9,483,325
Other payables
4,552,487
4,047,004
4,463,390
Total
23,242,724
13,331,989
13,946,715
In €
Group of payables
31/12/2021
31/12/2020
01/01/2020
Current payables to in-country suppliers
9,547,147
7,605,375
7,151,802
Current payables to suppliers abroad
9,137,478
1,679,397
2,331,459
Current payables for unbilled goods and services
5,611
213
64
Current payables against advances
70,165
279,050
407,013
Current payables to employees
2,517,024
2,236,814
2,356,703
Current payables for payer's contributions
1,299,826
1,113,104
1,201,279
Current payables to State and other institutions
656,587
410,129
486,895
Other current payables
8,886
7,908
11,500
TOTAL
23,242,724
13,331,989
13,946,715
17 Current liabilities under contracts with buyers
Liabilities under contracts with buyers arose from contractual commitments to buyers for discounts or
volume rebates.
In €
Liabilities under contracts with buyers
31/12/2021
31/12/2020
01/01/2020
Liabilities under contracts with buyers
136,087
192,782
14,235
TOTAL
136,087
192,782
14,235
18 Other current liabilities
Under other current liabilities, the Company recognises current deferred costs or expenses and VAT on
advances made.
In €
Description
31/12/2021
31/12/2021
01/01/2020
Accrued unused annual leave entitlement
823,198
816,499
773,768
Accrued costs
180,596
141,107
0
VAT on advances made
10,889
82,553
13,664
Other
2,785
39,645
93,197
TOTAL
1,017,468
1,079,804
880,629
19 Contingent obligations and commitments
In €
Description
31/12/2021
31/12/2020
01/01/2020
Guarantees given
2,345,729
2,430,203
2,515,051
Forward transactions
4,650,283
1,976,362
640,987
VISA and Mastercard payment cards
40,000
40,000
53,500
Material in finishing and processing
59,725
59,725
59,725
TOTAL
7,095,737
4,506,290
3,269,263
The guarantees given represent an obligation to Nova kreditna banka Maribor, d.d., and UniCredit Bank,
d.d., in the amount of € 2,345,729 in respect of customs and excise duties (€ 1,025,000) and a
performance guarantee for ARSO's contractual obligations in the amount of € 1,320,729.

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109
On 27 October 2017, the Municipality of Celje filed a lawsuit against Cinkarna Celje for € 1.3 million for
the remediation of contaminated soil. The Company's management, with the assistance of external legal
experts, assessed that it is probable that the lawsuit will be settled in the Company's favour and
therefore the Company has not made a provision for this purpose. On 2 February 2022, the lawsuit was
settled in favour of the Company by a final decision of the court of first instance.
20 Revenue from contracts with buyers
Revenue from contracts with buyers consists of the sales values of products, merchandise, materials
and services sold during the accounting period. A breakdown of net sales revenue by business segment
and area is shown below.
In €
2021
2020
Net revenue from contracts with buyers of products and services
192,179,884
172,064,712
Net revenue from contracts with buyers of goods and materials
282,216
322,139
TOTAL
192,462,100
172,386,851
21 Other operating income
In €
Revenue
2021
2020
Sale of emission allowances
436,560
0
Revenue from depreciation of assets acquired free of charge
632,435
659,912
Gain on sale and write-down of assets
3,331
14,258
Revenue from COVID-19 state support
35,149
365,254
Compensation received
109,289
45,642
Other operating income
170,299
321,846
TOTAL
1,387,062
1,406,912
22 Operating expenses
Operating expenses
In €
2021
2020
Cost of materials and goods sold
140,470
188,743
Cost of materials
97,519,612
96,965,681
Cost of services
13,830,982
13,815,945
Labour costs
28,888,986
30,099,442
Depreciation
11,281,415
9,932,781
Other operating expenses
5,468,743
1,772,505
Impairments and write-offs of trade receivables
28,975
611
TOTAL
157,159,184
152,775,708
R&D expenses in 2021 were 120,045 €, in 2020 they were 55,215 €.
Depreciation
The Company depreciates fixed assets on a straight-line basis over the expected useful life of each fixed
asset. Depreciation is charged to the cost of each fixed asset.

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110
In €
2021
2020
- intangible assets
224,513
278,495
- easements
72,342
72,342
- buildings
3,203,086
3,073,738
- production equipment
7,775,865
6,502,231
- other equipment
5,610
5,974
TOTAL
11,281,415
9,932,781
Labour costs
In €
Labour costs
2021
2020
Salaries and allowances
20,157,542
21,224,553
Social security contributions
3,611,188
3,699,005
'Reimbursement of expenses and other employee benefits
4,709,667
4,773,416
Supplementary pension insurance
410,590
402,469
TOTAL
28,888,986
30,099,442
Labour costs include accrued liabilities to employees under the Company's collective agreement and
under individual employee contracts, and reimbursements of work-related expenses in accordance with
the collective agreement. Work-related expenses do not include food costs to the extent that they relate
to the cost of preparing food in the Company's own kitchen. These costs amount to € 846,552 in 2021
(€ 952,118 in 2020). 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 has accounted for unused annual leave entitlement in accordance with IAS 19.
The Company is registered in the register of pension plans as an employer sponsoring the pension plan
designated PNMZ K, which is implemented by the open-ended Modri krovni pokojninski sklad pension
fund with the administrator Modra Zavarovalnica. In 2021, the Company has earmarked € 410,775
(2020: € 402,469) for supplementary pension insurance purposes.
As at 31 December 2021, the Company employed 793 persons. The average number of employees was
801. In 2021, the Company also incurred costs of services not treated as labour costs in respect of
labour placement agencies under placement contracts amounting to € 819,140 (in 2020 these costs
amount to € 782,418.37). The number of employees was 30.17 (30.15 in 2020), taking into account
the number of hours worked under these contracts.
Other operating expenses
In €
Other operating expenses
2021
2020
Provisioning for the environment
3,701,214
0
Environmental fees and refunds
464,162
357,231
Awards to students and trainees
265,503
276,620
Building land use allowance
367,738
367,914
Revaluation of inventory of materials and goods
386,724
303,987
Loss on sale (disposal) of fixed assets
135,159
112,277
Other costs and expenses
148,243
354,477
TOTAL
5,468,743
1,772,505
The financial statements of Cinkarna Celje, d.d., for the year 2021 were audited by Ernst & Young
revizija, d.o.o. The contract value for the agreed audit services amounted to € 22,000 and the IFRS
transition audit services amounted to € 8,000, plus VAT and travel expenses. The audit firm Ernst &
Young also carried out the audit of the verification of the electronic format of the 2021-ESEF financial
statements (€ 2,000) and the audit of the 2021 Remuneration Report (€ 3,000) for the 2021 financial
year. Other expenses mainly represent losses on the settlement of reported claims and compensation
paid to individuals.

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111
23 Financial revenue and expenses
Financial income consists of interest received on investments and receivables, income from non-current
investments and foreign exchange gains on operating and financing activities. Financial expenses
represent the accrued liabilities for the year on non-current and current financial and operating liabilities,
and foreign exchange losses on operating and financing activities.
In €
2021
2020
Net exchange differences
0
2,853
Interest income
12,284
25,108
Dividend income
13,915
23,074
Total financial income
26,199
51,035
Net exchange differences
-25,670
0
Interest expenses
-4,189
-37,928
Interest on provisions for severance and jubilee bonuses
-16,443
-35,954
Total financial expenses
-46,302
-73,882
Net financial result
-20,103
-22,845
24 Corporate income tax
The corporate income tax return is calculated in accordance with the corporate income tax return
regulations at a rate of 19% on a tax base unchanged from the previous year and the year before that.
The tax base in 2021 is reduced by allowances for investment in research and development, employment
of disabled persons, voluntary supplementary pension insurance, investment in equipment, and
donations.
In €
2021
2020
Tax levied
7,591,736
4,277,204
Deferred tax
276,914
-131,329
Total income tax
7,314,822
4,408,533
Change in tax base due to transition to a new method of accounting
-38,781
0
Tax on increase in expenses
-129,226
-120,502
Tax on unrecognised expenses
523,711
188,727
Tax on tax reliefs
-925,329
-872,712
Tax on income reducing the tax base and other
-15,816
-43,103
Total income tax
6,729,381
3,560,944
Effective tax rate
17.53%
15.23%
The effective tax rate, calculated as the ratio of tax expense to accounting profit, is 17.53% in 2021
and 15.23% in 2020. Changes in deferred taxes in 2021 relate to additional provisioning/utilisation of
environmental provisions, jubilee and severance payments, and a decrease due to the reversal of a
valuation allowance on receivables.
The Company recorded an increase in deferred tax assets arising from temporary differences. The
increase in 2021 relates to the difference between the following:
In €
Description
2021
2020
Consumption of provisions
-112,290
-122,472
Reversal of valuation allowances on receivables
-21,459
-31,273
Provisions made
410,663
22,416
TOTAL
276,914
-131,329

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112
V 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 2021 and 31 December 2020. 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 2020, together with the supplementary
information necessary to adjust income and expenses and to break down the significant items
appropriately. Theoretically possible items are not shown, but values are shown for the current and the
prior period.
VI 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 treasury shares. Pursuant to Article
64(14) of the Companies Act, a statement of the balance sheet profit has been added to the statement
of changes in equity.
VII FINANCIAL INSTRUMENTS AND FINANCIAL RISKS
Financial risks (liquidity and interest rate)
Liquidity risk
Cinkarna Celje, d.d., is a business partner known for its payment discipline both on the domestic and
foreign markets, 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 liabilities, ongoing monitoring of customer solvency, and regular collection of
overdue receivables. The credit rating is AAA.
The following tables show financial and operational liabilities by maturity.
Maturity of financial liabilities as at 31 December 2021
In €
Carrying amount
Contractual cash flows
Total
Up to half a year
Payables to suppliers net of advances
18,690,236
18,690,236
18,690,236
Liabilities under contracts with buyers net of advances
136,087
136,087
136,087
Other liabilities
1,017,468
1,017,468
1,017,468
Total
19,843,791
19,843,791
19,843,791
Maturity of financial liabilities as at 31 December 2020
In €
Carrying amount
Contractual cash flows
Total
Up to half a year
Payables to suppliers net of advances
9,284,985
9,284,985
9,284,985
Liabilities under contracts with buyers net of advances
192,782
192,782
192,782
Other liabilities
1,079,804
1,079,804
1,079,804
Total
10,557,572
10,557,572
10,557,572

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113
Maturity of financial liabilities as at 1 January 2020
In €
Carrying amount
Contractual cash flows
Total
Up to half a year
Payables to suppliers net of advances
9,483,325
9,483,325
9,483,325
Liabilities under contracts with buyers net of advances
14,235
14,235
14,235
Other liabilities
880,629
880,629
880,629
Total
10,378,189
10,378,189
10,378,189
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
this. If this were to change, appropriate measures would be put in place to manage this type of risk.
Due to its strong performance and favourable financial position, the Company enters into deposit
agreements with banks at minimum positive interest rates in order to reduce the cost of bearing
deposits. At the balance sheet date, deposits with a maturity of up to one year amounted to € 6 million.
If the bank interest rate were to decrease by 1%, this would mean an increase in financial expenses of
€ 53 thousand, and if it were to increase by 1%, this would mean an increase in financial income of €
60 thousand on an annual basis.
Credit risk
The key credit risk of Cinkarna Celje, d.d., is the risk that buyers fail to settle their obligations when
they fall due.
The risk is limited as we deal mainly with long-standing partners, often well-known traditional European
industrial companies with high credit ratings. In recent years, we have 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 a significant reduction in risk potential. With
the realignment/reorganisation of the portfolio of the Company's strategic business areas, specifically
the discontinuation of the Graphic Repro Materials programme, the Rolled Titanium Sheet programme,
the Anti-Corrosion Coatings programme and the Building Materials programme, the exposure to credit
risk has been significantly reduced, as evidenced by the maturity of receivables and the fact that we
have virtually no further value adjustments for doubtful or defaulted receivables from buyers recorded
in the accounts receivable.
For many years, Cinkarna Celje has been carrying out internal credit controls for individual buyers, who
have been assigned an individual credit limit based on their 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 an insurance on receivables with an external institution,
where credit limits are set, monitored and changed on a daily basis. A TOP UP scheme is in place for
certain buyers who have not reached their credit limit with the insurer.
In addition to the regular monitoring of the credit limit for each buyer, the payment discipline of the
buyer is monitored on a daily basis, as well as the announcements made on the Ajpes website in
connection with the announcement of proceedings under the Financial Operations, Insolvency
Proceedings, and Compulsory Dissolution Act (ZFPPIPP). Also, from the moment the receivable is due,
the buyer is reminded of the due date by a reminder, first by telephone and then by letter, and interest
is charged from the due date until the date of repayment. The process of regular monitoring and control

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114
of the portfolio of trade receivables is a permanent 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 €
Note
31/12/2021
31/12/2020
01/01/2020
Financial investments
3
1,651,099
1,790,082
1,774,273
Receivables from buyers
4
29,148,099
24,734,182
23,948,700
Cash and cash equivalents
5
59,746,594
37,657,824
31,698,242
TOTAL
90,545,792
64,182,088
57,421,215
As at the balance sheet cut-off date of 31 December 2021, in addition to € 6 million, the Company
has an additional € 53.7 million of cash to support its day-to-day operations. In order to reduce credit
risk and exposure to banks, the Company has assets spread among five banks with strong credit
ratings and strong balances.
The Company has a healthy trade receivables structure, as shown in the table of trade receivables by
maturity and in the table of movements in the value adjustment for current receivables from buyers.
Movements in value adjustment for current receivables from buyers
In €
Year 2021
As at
Value adjustment
Write-downs of value
Written-off
As at
31/12/2020
for 2021
adjustments of prior years
receivables paid
31/12/2021
In-country buyers
367,302
0
100,285
0
267,017
Buyers abroad
360,960
28,975
0
8,498
381,437
TOTAL
728,262
28,975
100,285
8,498
648,454
In €
Year 2020
As at
01/01/2020
Written-off
As at
31/12/2020
receivables paid
In-country buyers
403,510
36,207
367,302
Buyers abroad
368,351
7,392
360,960
TOTAL
771,861
43,599
728,262
Receivables from buyers by maturity
In €
Group of receivables by maturity
Gross value
31/12/2021
Adjustment
31/12/2021
Gross value
31/12/2020
Adjustment
31/12/2020
Gross value
01/01/2020
Adjustment
01/01/2020
Not past due
26,683,460
21,346
23,925,001
0
22,728,966
0
Past due within 15 days
1,240,457
994
448,553
0
830,841
0
Past due from 16 to 60 days
1,252,916
6,635
360,628
0
364,133
0
Past due from 61 to 180 days
240
0
0
0
24,691
0
Past due over 180 days
619,479
619,479
728,262
728,262
771,930
771,861
TOTAL
29,796,552
648,454
25,462,444
728,262
24,720,561
771,861
In €
Group of receivables by maturity
Gross value 2021
Adjustment 2021
Gross value 2020
Adjustment 2020
Not past due
26,683,460
21,346
23,925,001
0
Past due within 15 days
1,240,457
994
448,553
0
Past due from 16 to 60 days
1,252,916
6,635
360,628
0
Past due from 61 to 180 days
240
0
0
0
Past due over 180 days
619,479
619,479
728,262
728,262
TOTAL
29,796,552
648,454
25,462,444
728,262

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115
All receivables from buyers from 1 June 2021 are secured with an external institution. As at 31
December 2021, 90.68% of the receivables are insured with an external institution (Coface PKZ, d.d.),
7.06% with another form of insurance (letter of credit, advance) and only 2.26% of the total
receivables are not insured. The Company determines the concentration of receivables by means of
IT tools and limits entered in the system. The information system for monitoring receivables allows us
to monitor the collateralisation of receivables on an ongoing basis, as the information system is
updated daily according to changes in the type of collateral and changes in credit limits. At the end of
the year, 6 titanium dioxide buyers from the European Union account for 29% (6 buyers represented
32 % of receivables in 2020) of the total receivables, which are fully secured. Buyers are diversified
on markets and there is no major exposure on a certain buyer.
Currency risk
Cinkarna Celje, d.d., purchases and sells on the world market and is therefore exposed to the risk of
unfavourable cross-currency exchange rates. In particular, the €/$ exchange rate. As most sales are
made in euro, the exposure is particularly acute for dollar purchases of titanium-bearing raw materials
and, exceptionally, sulphur and copper compounds. The exposure is significantly lower in dollar-
denominated sales.
We continuously monitor movements and forecasts regarding the dynamics of the €/$ currency pair.
Basically, we limit the short-term risk of adverse changes in the €/$ exchange rate through the
standardised and consistent use of financial instruments (dollar forwards). We achieve virtually complete
coverage of relevant business events involving the €/$ currency pair.
Exposure to foreign exchange rate risk
In €
31/12/2021
31/12/2020
01/01/2020
EUR*
USD
EUR*
USD
EUR*
USD
Current financial receivables
0
0
35,056
0
360,650
0
Receivables from buyers
878,860
26,578,121
796,061
23,315,534
633,167
Advances given
36,099
987,188
0
321,622
0
Cash and cash equivalents
59,746,594
0
37,657,824
0
31,698,242
0
Current financial liabilities
-197,503
0
-60,090
0
-44,594
0
Current trade payables
-17,093,801
-6,148,923
-13,223,077
-108,912
-13,904,464
-42,251
Statement of financial position exposure
(net)
42,455,290
-5,233,964
51,975,021
687,150
41,746,989
590,916
The 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 has been used
in the translation of the balance sheet items as at 31 December and is equal to the European Central
Bank's reference rate for EUR 1 as at 31 December 2021 of 1.1326, as at 31 December 2020 of 1.2271,
and as at 1 January 2020 of 1.1234.
Sensitivity analysis
A 1% change in the value of the USD against the EUR as at 31 December 2021 and 31 December 2020
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.

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116
In €
31/12/2021
31/12/2020
01/01/2020
USD currency change
1%
-1%
1%
-1%
1%
-1%
Impact on profit before tax
302,125
-302,125
6,871
-6,871
7,423
-4,364
Any further change of 1% in the USD exchange rate against the EUR would result in a further change
in profit before tax of the above amounts.
Capital management
The primary objective of Cinkarna Celje's capital management is to ensure a high credit rating and
adequate funding ratios to ensure the proper development of its business and to maximise value for its
shareholders.
Cinkarna Celje aims to keep pace with changes in the economic environment by managing and adjusting
its capital structure. Dividends are paid once a year in accordance with the Company's five-year strategy
for the period 2019-2023 and the resolutions of the General Meeting. Cinkarna Celje has no specific
employee ownership targets and no share option plan. There were no changes in the way capital is
managed in 2021 and 2020. Cinkarna Celje uses a leverage ratio to manage capital, which shows the
ratio of net debt to capital and total net debt. Net indebtedness includes financial and operational
liabilities less cash and cash equivalents.
In €
31/12/2021
31/12/2020
01/01/2020
Financial liabilities
197,503
60,090
360,650
Trade and other current liabilities
28,248,514
15,382,927
14,841,579
Cash and cash equivalents
59,746,594
37,657,824
31,698,242
Net indebtedness
-31,300,577
-22,214,807
-16,496,013
Capital
189,484,801
174,016,279
170,342,846
Capital and net indebtedness
158,184,224
151,801,472
153,846,833
Leverage ratio
-20%
-15%
-11%
VIII FAIR VALUE
In €
31/12/2021
31/12/2020
01/01/2020
Carrying amount
Fair value
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets at fair value through
other comprehensive income
1,651,099
1,651,099
1,755,026
1,755,026
1,413,623
1,413,623
Current financial receivables
0
0
35,056
35,056
360,650
360,650
Receivables from buyers
29,148,099
29,148,099
24,734,182
24,734,182
23,948,700
23,948,700
Cash and cash equivalents
59,746,594
59,746,594
37,657,824
37,657,824
31,698,242
31,698,242
Financial liabilities
-197,503
-197,503
-60,090
-60,090
-44,594
-44,594
Trade payables
-18,690,237
-18,690,237
-9,284,985
-9,284,985
-9,483,325
-9,483,325
Liabilities under contracts with
buyers
-136,087
-136,087
-136,087
-136,087
-14,235
-14,235
Total
71,521,965
71,521,965
54,700,926
54,700,926
47,879,061
47,879,061
Financial investments are classified into three groups based on their fair value calculation:
- Group I – assets at market price;
- Group II – assets not classified in Group I, whose value is determined directly or on the basis
of comparable market data;
- Group III – assets for which market data cannot be obtained.

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117
In €
Fair value of assets
31/12/2021
31/12/2020
01/01/2020
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Financial assets at fair value
through other comprehensive
income
5
1,651,099
0
1,651,099
0
1,755,026
0
1,755,026
0
1,413,623
0
1,413,623
Total assets measured at fair
value
0
1,651,099
0
1,651,099
0
1,755,026
0
1,755,026
0
1,413,623
0
1,413,623
Assets for which fair value is
disclosed
Current financial receivables
0
0
0
0
35,056
0
0
35,056
360,650
0
0
360,650
Receivables from buyers
0
0
29,148,099
29,148,099
0
0
24,734,182
24,734,182
0
0
23,948,700
23,948,700
Cash and cash equivalents
0
0
59,746,594
59,746,594
0
0
37,657,824
37,657,824
0
31,698,242
31,698,242
Total assets for which fair value
is disclosed
0
0
88,894,693
88,894,693
35,056
0
62,392,006
62,427,062
360,650
0
55,646,942
56,007,592
Total
0
1,651,099
88,894,693
90,545,792
35,056
1,755,026
62,392,006
64,182,088
360,650
1,413,623
55,646,942
57,421,215
In €
Fair value of liabilities
31/12/2021
31/12/2022
31/12/2023
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Group 1
Group 2
Group 3
Total
Financial liabilities
0
0
197,503
197,503
0
0
60,090
60,090
0
0
44,594
44,594
Trade payables
0
0
18,690,237
18,690,237
0
0
9,284,985
9,284,985
0
0
9,483,325
9,483,325
Liabilities under contracts
with buyers
0
0
136,087
136,087
0
0
136,087
136,087
0
0
14,235
14,235
Total liabilities for
which fair value is
disclosed
0
0
19,023,827
19,023,827
0
0
9,481,162
9,481,162
0
0
9,542,154
9,542,154
The assumptions used in determining the fair value of investments and other items are set out in the
introductory notes in Chapter II Significant accounting policies.
IX RELATED PARTY TRANSACTIONS – INFORMATION ON GROUPS OF PERSONS
Management's participation in equity
At the end of 2021 and 2020, one member of the Management Board held 186 shares in Cinkarna Celje, representing
0.023% of the Company's total equity or 0.024% of voting rights. No Supervisory Board members held shares at the
balance sheet cut-off date.
31/1/ 2021, 31/12/2020
Number of shares
Share in equity (%)
Podgoršek Selič Nikolaja
186
0.023
Gross remuneration of groups of persons
In €
2021
2020
Members of the Management Board
594,141
1,149,153
Members of the Supervisory Board
113,060
121,410
Total gross remuneration of groups of persons
707,201
1,270,563
Employees on the basis of contracts not covered by the tariff part of the collective agreement
3,252,549
3,371,691
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
3,959,750
4,642,254

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Remuneration of Management Board members in 2021
In €
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
264,000
22,277
9,150
4,849
300,276
Nikolaja Podgoršek Selič
Deputy President
210,354
43,753
10,622
4,576
269,305
Filip Koželnik
Member
15,981
582
3,367
4,630
24,560
TOTAL
490,335
66,612
23,139
14,055
594,141
Remuneration of Management Board members in 2020
In €
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 (from 01/07/2020)
107,100
0
4,507
2,119
113,725
Tomaž Benčina
President (until 30/06/2020)
162,349
55,489
6,403
133,727
357,968
Nikolaja Podgoršek Selič
Deputy President
210,354
44,390
12,079
3,964
270,787
Jurij Vengust
Member (until 30/06/2020)
118,021
41,616
13,401
100,882
273,920
Marko Cvetko
Member (until 30/10/2020)
91,006
23,582
4,890
5,295
124,773
Filip Koželnik
Member (from 05/11/2020)
6,219
0
200
1,561
7,980
TOTAL
695,049
165,077
41,480
247,548
1,149,153
Remuneration of Supervisory Board members in 2021
In €
Name and surname
Function (President,
Remuneration for performance
SB and Committee meetings -
Total gross
Travel expenses
Total
Deputy, Member,
of duties - gross per annum (1)
gross per annum (2)
(1+2)
remuneration
External Commission Member)
Gobbo Mario
SB Member + SB President +
HRC President
23,352
1,595
24,947
344
25,290
Gaberščik Luka
SB Member + SB Deputy
President + HRC Member
16,813
1,595
18,408
58
18,467
Kastelic David
SB Member + AC President
17,124
2,915
20,039
114
20,153
Svoljšak Mitja
SB Member
6,875
770
7,645
80
7,725
Mestinšek Dušan
SB Member + HRC Member
15,568
1,595
17,163
17,163
Koštomaj Jože
SB Member + AC Member
15,568
2,695
18,263
18,263
Korošec Gregor
External Member
0
6,000
6,000
6,000
Total
95,299
17,165
112,464
596
113,060
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. Expense allowances include
reimbursement of commuting expenses and meals while on duty.
Remuneration of Supervisory Board members in 2020
In €
Name and
surname
Function (President,
Remuneration for
performance
SB and Committee
meetings -
Total
gross
Travel
expenses
Total
Deputy, Member, External Commission
Member
of duties - gross per annum
(1)
gross per annum (2)
(1+2)
remuneratio
n
Skok Aleš
SB Member (until 30/06/2020)
8,333
3,049
11,382
204
11,586
Gobbo Mario
SB President (from 26/05/2020)
15,253
5,291
20,544
2,724
23,268
Gaberščik Luka
SB Deputy President
14,195
5,786
19,981
292
20,273
Kastelic David
SB Member + AC President (from
18/06/2020)
6,412
2,035
8,447
125
8,572
Rajbar Dejan
SB Member + AC President (until
17/06/2020)
7,750
3,487
11,237
234
11,471
Mestinšek Dušan
SB Member + HRC Member
12,875
5,082
17,957
0
17,957
Koštomaj Jože
SB Member + AC Member (from 18/06/2020)
5,829
2,035
7,864
0
7,864
Stevanovič Aleš
SB Member (until 17/06/2020)
6,080
3,709
9,789
0
9,789
Gregorinčič Žiga
External Member
0
1,315
1,315
0
1,315
Peček Tea
External Member
0
1,315
1,315
0
1,315
Korošec Gregor
External Member
0
8,000
8,000
0
8,000
Total
76,728
41,104
117,831
3,579
121,410

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119
Significant business events after the end of the financial period
Escalating tensions between Russia and Ukraine will have serious consequences. The impact on Ukraine
will undoubtedly be broad and deep. The prolonged period of heightened tensions with Russia has had
a negative impact on the Ukrainian economy, resulting in increased external financing risks, moderate
capital outflows and a weakening of international reserves. The consequences of the current attack on
Ukraine have already caused casualties and widespread disruption across the country.
Also, at the end of February 2022, the Central Bank of Ukraine imposed a moratorium on cross-border
payments in foreign currency (except for companies and institutions ensuring the implementation of the
government's mobilisation plans (targets) and entities holding a special licence from the NUK). The
moratorium is in place as long as martial law is in force in the country. This means that international
payments from Ukraine are currently not be possible.
As a result, the exposure in Ukraine was fully cancelled by the external insurer Coface and the credit
limit was cancelled, i.e. all reinsurance limits against current commercial and non-commercial risks were
suspended for the insurance business in Ukraine. The exposure of Cinkarna in the Ukrainian markets is
insignificant as the Company allocates a very small share of its sales to Ukraine and does not have any
upstream or downstream business with Russia.
However, the indirect exposure to Ukraine is not negligible, as Ukraine is an important supplier of ores
to many suppliers (Cinkarna does not have any supplies from Ukraine) and as the war situation may
temporarily prevent or even stop the supply of ores, the buyers of these ores will be forced to look for
an alternative supplier, which may trigger a rise in the prices of titanium-bearing ores and increase the
purchase prices of the basic strategic raw material of Cinkarna Celje. Energy is another important factor
that represents a significant share in the costs of Cinkarna Celje and represents a serious exposure of
the Company to energy prices. Developments on the Russian market may lead to an increase in the
already increased prices of energy products, or to the extreme of interrupting the supply of the energy
product natural gas, which would seriously jeopardise the production and operations of Cinkarna Celje.
In connection with the increased risk of cyber-attacks, we use improved and advanced protection for
incoming emails. We also use a platform to establish the identities of devices connected to the network
and set rules. We raise awareness of information security among our employees (phishing tests, posters
on information security, etc.).
The risks and impacts cannot be reliably assessed at this point in time, but there are assumptions that
could affect the company's business in the future if the situation in Ukraine and Russia does not calm
down.

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120
Independent auditor's report

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121

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122

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General Meeting/Equity structure
STRUCTURE OF SHARE OWNERSHIP OF CINKARNA CELJE, d.d.
No. of shares
%
Modra zavarovalnica, d.d
162,963
20.17
DUTB, d. d
104,504
12.93
SDH, d.d
92,950
11.5
UNICREDIT BANK AUSTRIA AG - FID
36,239
4.49
Treasury shares
26,465
3.28
TR5 d.o.o
26,449
3.27
RAIFFEISEN BANK AUSTRIA D.D. - FID
18,709
2.32
KRITNI SKLAD PRVEGA POKOJNINSKEGA SKLADA
16,705
2.07
NLB SKLADI - SLOVENIJA MEŠANI
11,256
1.39
Generali Rastko Evropa, delniški
10,731
1.33
CITIBANK N.A. – FID
10,610
1.31
Internal shareholders – FO
6,314
0.78
External shareholders – FO
168,802
20.89
Others
115,280
14.27

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127
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 preparation of the Annual Report within the meaning of Article 134(2) of the ZTFI-
1, certify that to the best of our knowledge and belief:
I. the financial reports are in accordance with the relevant financial reporting standards, i.e.
International Financial Reporting Standards. Such financial statements give a true and fair
view of the assets, liabilities, profit or loss, and financial position of the Company; and
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 2021 is hereby adopted and approved by the Management Board on 25 March 2022.
Management Board of the Company
President of the Management
Board
Member – Deputy President of the
Management Board – Technical
Member of the Management
Board –
Director
Worker Director
Aleš SKOK,
Nikolaja PODGORŠEK SELIČ
Filip KOŽELNIK,
Univ. dipl. in chem. eng.,
MBA – USA
Univ. dipl. in chem. eng., spec.
MSc of business adm.
Persons responsible for drawing up the Annual Report
President of the Management
Member of the Management
Head of Accounting
Board
Board – Worker Director
Aleš SKOK,
Univ. dipl. in chem. eng.,
MBA - USA
Filip KOŽELNIK,
MSc of business adm.
mag. Karmen FUJS,
Univ. dipl. in econ.

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128
Company culture
BUSINESS PARTNERS
We will continuously focus our efforts on meeting our
customers' needs fairly, with quality and on time. We will
develop relationships of mutual trust, cooperation and
business friendship. We will meet our obligations to suppliers,
banks and contractors with the utmost responsibility.
OWNERS
We will strive to ensure that owners' investment, and thus
their confidence in the correctness of this decision, is
rewarded with the expected and appropriate returns. We will
ensure the long-term viability and profitability of the
Company by investing in development and in our employees.
We understand that our responsibility is proportionate to the
trust placed in us.
EMPLOYEES
All employees will be treated with honesty. Fair pay for a job
well done is an inalienable right. We will ensure that the
rights to adequate information, personal security and equal
treatment are implemented. The Company's management has
a duty to promote a positive working atmosphere and to
ensure that the rules and principles of ethical business
conduct are developed and implemented.
LOCAL COMMUNITY
Within the philosophy of sustainable development, investment
in environmental projects and targeted technology design, we
will work to find the most optimal ways and means to protect
the environment and the health of our fellow citizens. Where
possible, we will care for and participate in the development
and progress of the local community in the fields of
education, sport and culture.