PCC affiliates listed in Poland

Two PCC Group companies, PCC Rokita SA and PCC Exol SA, are listed on the Warsaw Stock Exchange (GPW). The value of the share packages of these investments held indirectly by PCC SE through a subsidiary amounted to € 471.0 million as of December 31, 2023, and was thus around 6.2 % above the valuation in euros as of the previous year’s reporting date, mainly due to the significant appreciation in the value of the Polish złoty. The total market capitalization of these exchange-listed PCC investments amounted to € 555.1 million as of the reporting date, likewise equating to an increase of around 6.2 % compared to the previous year.

The fears of recession that were still prevalent at the start of 2023 did not generally materialize over the course of the stock market year. Growth in the USA and certain emerging markets was offset by the economic downturn in China and individual industrialized nations in the European Union, resulting in only moderate growth overall. Due to the further decline in inflation over the course of the year, central banks held out the prospect of interest rate cuts toward the end of 2023.

However, despite the positive developments in the interest rate spectrum of the European and Polish central banks, there is still uncertainty about the level and timing of individual interest rate cuts. This is due in particular to geopolitical crises and their impact on the global economy, such as the war in Ukraine and the new conflict in the Middle East.

It should also be emphasized that developments on the stock market in 2023 were very mixed, with both specialty and basic chemical stocks performing poorly. Given this backdrop, the share price performance in euros of PCC Exol SA and PCC Rokita SA was also muted in 2023.

One reason for the overall subdued share price performance of the listed manufacturing companies worldwide was the inventories built up in the previous year, which were worked down in the course of 2023 as a result of generally stagnating demand. This was compounded by production capacities being scaled back in almost all industrial sectors in Europe.

The supply bottlenecks that still existed as a result of the coronavirus pandemic have now been largely eliminated and are limited to just a few individual product areas. The high volatility of the energy market, which continued to be dominated by the war in Ukraine in 2023, has also been largely reduced and energy prices have fallen, partly due to lower industrial demand.

PCC holds a clear majority of around 85 % in each of the two listed subsidiaries. The main advantages of stock exchange listings are transparent company valuations, a strengthened equity base for the entities involved, and the possibility of also financing future investments through further equity measures. Stock exchange listings also offer institutional and private investors the opportunity to acquire a direct stake in a company.

The European sector index STOXX Europe 600 Chemicals showed strong volatility during the 2023 stock market year as a consequence of the industry’s greater exposure to the energy crisis. The STOXX Europe 600 Chemicals index closed 13.6 % higher as of trading year-end than at the start of the year.

The performance of the shares of PCC subsidiaries in Polish złoty (PLN) was positive to some extent, while their performance in euro terms was favored above all by the significant appreciation of the złoty against the euro.