The Company's conservative financial policy has resulted in a sound financial position.

For major investment projects, Enaex policy allows a mixed financing structure, including external sources (local and international banks), publicly tendered bonds, company-generated funds and capital contributions. The Company aims to maintain a conservative medium-term debt structure and comfortable covenant cushion.

The Company's smaller investments aim to sustain growth and ensure normal replacement of operating assets, upgrades and new equipment to expand and improve production capacity, which were generally funded with the Company's operating cash flows.

Short-term bank debt is generally used to cover working capital needs, which are primarily related to the purchase of ammonia. It is worth noting that levels of short-term bank debt can vary throughout the year as a result of fluctuations in the international price of ammonia and production process efficiency.

Given the importance Enaex places on efficiently managing financial resources and implementing strategies to face exchange market volatility, the Company maintains strict control of its investments, cash flows and working capital while focusing on maintaining its share and credit ratings.

ENAEX S.A.’S MAIN CONSOLIDATED FINANCIAL RATIOS.

2010 2011 2012 2013 2014 2015 2016 2017
Financial Debt* / EBITDA 1,8x 1,5x 1,3x 1,1x 1,2x 2,0x 1,89x 1,7x
Liabilities / Equity 0,7x 0,7x 0,7x 0,54x 0,57x 0,98x 0,84 0,81x
EBITDA / Financial Expenses 31,3x 31,0x 31,6x 32,9x 37,5x 18,8x 11,4x 11,5x

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* Financial Debt: (Total Financial Liabilities - Hedge Assets).