Grupa Azoty Integrated Report | 2013 Gr U Pa a Zo T Y in T Eg R a T
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gR upa a zo The market is an open space – but only for those, who T y themselves can open i n to the opportunities it provides. T We’ve opened up to what is eg most valuable in Polish chemistry R and merged these assets into a one entity. Into Grupa Azoty. T ed Repo We’ve opened up to the world and found new markets and new sources of raw materials. We are always open to the future. RT We free imagination, we calculate and plan. | 2013 Creation is work that will never end. Fortunately. reportpowering Creation grupaazoty.com gRupa azoTy inTegRaTed RepoRT | 2013 gR upa a zo The market is an open space – but only for those, who T y themselves can open i n to the opportunities it provides. T We’ve opened up to what is eg most valuable in Polish chemistry R and merged these assets into a one entity. Into Grupa Azoty. T ed Repo We’ve opened up to the world and found new markets and new sources of raw materials. We are always open to the future. RT We free imagination, we calculate and plan. | 2013 Creation is work that will never end. Fortunately. reportpowering Creation grupaazoty.com gRupa azoTy inTegRaTed RepoRT | 2013 GRUPA AZOTY INTEGRATED REPORT | 2013 REPORT WAS PREPARED IN ACCORDANCE WITH GRI G4 (CORE) REPORT WAS VERIFIED BY A THIRD-PARTY EXTERNAL VERIFICATION AGENCY. POWERING CREATION 2 INTEGRATED REPORT | 2013 POWERING CREATION Ladies and Gentlemen, It is with great pleasure that I in large-volume chemical production, Even today we pioneer changes which present to you the first integrated as well as the many years of research may dramatically alter our current annual report of the Grupa Azoty and development work. We can build perception of fertilizers. We set Group, covering the financial year on this to continue innovating and a course for smart solutions, and we G4-1 G4-2 2013. In line with an internationally- exploring for efficient solutions, which find them. We understand the threats, recognised approach, the report is essential in the context of global but we can also see the opportunities offers a systematic perspective social and environmental challenges. and capture them successfully. In the on our general economic, social and past, mineral fertilizers proved environmental performance, rather The Grupa Azoty Group leverages instrumental in increasing the food than just the financial results. its combined production capacities supply, thus dispelling the shadow This report is not only among and operates a uniform management of the Malthusian catastrophe, but Poland’s first integrated reports, framework relying on process today we can see with growing clarity but also one of the first on the market leaders, defined decision paths that fertilizers must also be safe to to implement the latest version and decision-making transparency. the environment. The world needs of the GRI Sustainability Reporting The consolidation, which was carried safe and effective fertilizers, and we Guidelines – the G4. I strongly believe out so as to preserve each company’s are here to offer them – it is our duty that this reporting framework individual character and place in the as the market’s leader. ensures an accurate and reliable local community, allows the entire presentation of a business enterprise. organisation to operate as if it were At the Grupa Azoty Group, I also think that this comprehensive a single company. Critical to successful we deliver solutions offering approach will be well received by the integration are respect, people and tangible social and environmental business environment, including common values. The respect for local value across all of our operating our shareholders. In my opinion, heritage and traditions, something areas. As shown by numerous presenting a full picture of our all our employees have in common, examples, business, including the performance, rather than just the is the source of our unique character chemical industry, opens the door financial results, will enable the and creative power. As the shared to global sustainable development. capital market to better understand vision and sense of unity binding our The Grupa Azoty Group, its creative the Group’s day-to-day operations team are the key source of synergy, workforce and stakeholders, and recognise its potential for long- we are working hard towards creating as integrated by the Group, term growth. A reporting approach a robust organisational culture across are all part of this new solution. that integrates social, environmental the Group. The awareness that we can have and economic perspectives with a real impact on the world fuels financial data has been developed For us, responsibility is a commitment our passion and creative power. to respond to the public’s to finding solutions to the problems We are thus building sustainable expectations towards business. of today’s world, including those value to the benefit of our immediate By catering to these expectations facing the Polish economy. environment, as well as, in the today, we set new standards. This commitment consists in limiting long-term perspective, for the our environmental impact, but also shareholders who have chosen Last year ushered in a host in discovering new opportunities, to invest in Grupa Azoty. of enormous challenges for innovations and unique expertise, As a team, we shall not betray the Group, spurring the creation as well as in creating prime quality the confidence which our of entirely new value in the Polish products, safe to the environment shareholders have placed in us. economy. We have succeeded and valuable to society. Rather than in consolidating 30 companies under make empty declarations about a single brand, including Poland’s sustainable growth, the chemical four largest chemical plants: industry should pursue concrete Have a good read, in Tarnów, Kędzierzyn-Koźle, solutions to make growth sustainable. Police and Puławy. We have The Grupa Azoty Group wants to play thus accumulated a wealth a part in developing such solutions. Paweł Jarczewski of complementary and unique capabilities in the chemical industry – the know-how and experience President of the Management Board Grupa Azoty S.A. 2 3 INTEGRATED REPORT | 2013 INTEGRATED REPORT | 2013 GRUPA AZOTY IN KEY FIGURES After a time of growth comes a time of maturity – a time for harvest. A time for taking stock. Sometimes figures can bring as much joy as ripe fruit. 4 INTEGRATED REPORT | 2013 GRUPA AZOTY IN KEY FIGURES Revenue PLN 9 821m EBIT PLN 703m EBITDA PLN 1 253m Capital expenditure PLN 670m Net profit PLN 714m Equity PLN 6 271m Total assets PLN 9 962m Headcount at end of year 13 879 Energy consumption 47 975 894 GJ Water consumption 275 810 550 m3 4 5 INTEGRATED REPORT | 2013 INTEGRATED REPORT | 2013 6 INTEGRATED REPORT | 2013 1 Introduction 6 7 INTEGRATED REPORT | 2013 INTEGRATED REPORT | 2013 GRUPA AZOTY GROUP’S PROFILE Architecture is a dialogue between matter and imagination. It's the art of harmony. Much like in business – a company's well-crafted architecture brings safety and lets various assets be used to achieve a common, daring goal. 8 INTEGRATED REPORT | 2013 GRUPA AZOTY GROUP’S PROFILE The Grupa Azoty Group has Its products find practical applications As the industry leader, the Grupa consolidated several dozen in virtually all areas of the economy, Azoty Group strives to play an active with significant value added in social part in shaping the future and setting companies under a single terms. They open the field for new the highest industry standards. brand, including Poland’s technologies and improve the quality The Group pursues these objectives largest chemical plants in of everyday life. The Group’s products through membership in numerous are widely applied in agriculture, business and trade organisations, Tarnów, Kędzierzyn-Koźle, automotive industry, construction, which it sees as a platform for Police and Puławy, electrical engineering, pharmacy, dialogue with the market and accumulating a vast potential household products, food, textile and its environment. cosmetic industries, wood processing Through synergies, the combined of complementary capabilities. industry, paper manufacture, mining, knowledge and experience of printing, furniture, machine-building the Grupa Azoty Group’s R&D industry, sports equipment, and many laboratories and its significant The Group’s business is divided other areas. They are indispensable production capacities can foster into the following segments: for the manufacture of laminated unprecedented innovation and Agro Fertilizers, decorative materials, wood-based ■ efficiency. The Grupa Azoty Group is boards, glues, paints and varnishes. ■ Plastics, a network of equity-linked companies G4-4 G4-12 Without mineral fertilizers, including which, operating as a single entity, ■ Chemicals, those produced by the Grupa Azoty can now fully leverage their market Group, agricultural yield would not ■ Energy, potential. be sufficient to feed the world, and ■ Other Activities. it would not be possible to obtain many medicines and other specific The Grupa Azoty Group is currently products, such as de-icing blends the leader of the Polish chemical for aircraft runways, antiseptic industry and a significant player containers or fuel additives necessary in the EU market. for exhaust emissions treatment. Without such products, today’s food industry and medicine would certainly not be the same. 8 9 INTEGRATED REPORT | 2013 INTEGRATED REPORT | 2013 GRUPA AZOTY GROUP'S STRUCTURE GRUPA AZOTY GROUP'S STRUCTURE Grupa Azoty S.A. Grupa Azoty Grupa Azoty Grupa Azoty Grupa Azoty Grupa Azoty Grupa Azoty Kopalnie i Zakłady ATT Polymers GmbH „KOLTAR” Sp. z o.o. Zakłady Azotowe Zakłady Azotowe Zakłady Chemiczne Polskie Konsorcjum Chemiczne Siarki 100% 100% Kędzierzyn S.A. „Puławy” S.A. „POLICE” S.A. Chemiczne Sp. z o.o. „Siarkopol” S.A. 93,48% 95,98% 66% 63,27%* 85% 5 Hotel CENTRALNY Sp. z o.o.