36.1.1. Aluminium, billets, aluminium scrap

Primary aluminium, billets and scrap are the basic raw materials used by the Group. The price is usually determined individually for each delivery based on the quotations at the London Metal Exchange (LME). The prices of aluminium scrap are not based on the price formulas directly related to the aluminium quotations at the LME, however, there is a significant correlation in that regard. The risk of changes in the prices of the aforesaid raw materials is mitigated by futures contracts for the purchase of aluminium, and properly created sales formulas. As regards the EPS, the risk of aluminium prices fluctuations is transferred to the customer through price formulas, while for fixed-price sales it is hedged with term contracts. At the ASS, sales prices are mainly based on price lists, which means that the dominating form of risk limitation is the strategy of hedging with term contracts.