LETTER FROM THE CHAIRMAN OF THE SUPERVISORY BOARD

Dear Sirs/Madams,

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It is with a great satisfaction that I can present to you the Annual Report of the Impexmetal Capital Group for the year 2013. It is an obvious evidence that the development strategy realized by the Management Board and supported and supervised 

The worsening climate for industry in the European Union, especially for the heavy industry – in spite of promoting some years ago of the slogan on the European economy reindustrialization – has big effects also for the Impexmetal Group. The Brussel’s climate policy together with costs of its implementation is not to be accepted for the competitiveness of the European Union companies from the industry branch, especially heavy industry. Deep changes have been of the utmost importance, which resulted with gradual changes of the production profile of the Group’s companies.by the Supervisory Board brings the projected effects.

The part of the Supervisory Board is to set forth the schedule of development. The directions of development, which had to be changed taking into accounts many transformations occuring in the business environment of Impexmetal. Restructuring effort brings expected effects – despite of the slump on the main markets, we maintain our position, preparing for the return of the global prosperity. The restructuring period has meant to us also preparing for investing with main target to prepare the Impexmetal Group’s companies (especially the Aluminium Plant in Konin) to the gradual enlarging of products processing and increasing our sales margins on the new, demanding markets.

Financial results achieved in the last year together with the anticipated future allow us to forecast the Impexmetal’s results in the next periods with a big optimism. As a Supervisory Board we note with  satisfaction that the realization of initiatives on the technological processes modernization strategy implemented by the Management Board in the whole Capital Group proceed  according to the  accepted schedules and establishments. The year 2013 is also a time for discussion on the implementation of the new directions of assets restructuring and technological modernization. They are to allow the Group in the next 5 years to become independent from the global oligopol of the greatest suppliers of non-ferrous metals. The superior purpose is to reduce the  purchase prices of metals necessary to the proper functioning of our production plants.

The modernization process having been carried by us from one year has started to bring measurable effects in form of interesting technological solutions and we will await  their implementation in the next few years.

On behalf of the Supervisory Board I would like to thank all employees for their hard work in achieving our ambitious purposes. Without their understanding and full involvement in the Management Board’s operations, it would not be possible to maintain the sustainable development of the Company in such  unfavoureably macroeconomic conditions.

I would like to thank all suppliers and clients for the succeeding year of the profitable cooperation. I do believe that the scceeding years will be to all of us the source of business satisfaction.

Arkadiusz Krężel
Chairman of the Supervisory Board