Directors' Report on the Operations of Grupa Azoty

Directors' Report on the Operations of Grupa Azoty

Directors’ Report on the operations of Grupa Azoty Zakłady Chemiczne Police S.A. and the Grupa Azoty Zakłady Chemiczne Police Group in the 12 months ended December 31st 2018 Grupa Azoty Zakłady Chemiczne Police Group Directors' Report on the operations of the Grupa Azoty Zakłady Chemiczne Police Group in the 12 months ended December 31st 2018 (all figures in PLN '000 unless otherwise stated) This Directors’ Report presents key developments that occurred in the 12 months ended December 31st 2018 at the Grupa Azoty Zakłady Chemiczne Police Group and Grupa Azoty Zakłady Chemiczne Police S.A., the Group’s parent, including results of their operations, as well as a description of relevant risks and threats. It also presents financial and non-financial indicators, if material for the assessment of the Group’s and the parent’s condition, as well as additional explanations on the amounts presented in the consolidated and separate financial statements. Grupa Azoty Zakłady Chemiczne Police Group Page 2of 90 Directors' Report on the operations of the Grupa Azoty Zakłady Chemiczne Police Group in the 12 months ended December 31st 2018 (all figures in PLN '000 unless otherwise stated) Contents 1. General information about the Group ........................................................................... 5 1.1. Organisation and structure ........................................................................................ 5 1.2. Changes in the organisational structure ........................................................................... 8 1.3. Company organisational and equity ties .......................................................................... 8 2. Management of the Group ........................................................................................ 9 2.1. Parent’s organisational chart ...................................................................................... 9 2.2. Changes in key management policies ............................................................................. 9 2.3. The Group’s workforce .......................................................................................... 10 3. Business overview................................................................................................. 11 3.1. Key information.................................................................................................. 11 3.2. Overview of key products ....................................................................................... 13 3.3. Sales markets and supply sources ............................................................................... 15 3.4. Significant agreements .......................................................................................... 16 3.5. Significant events ................................................................................................ 16 4. Growth strategy and policy ...................................................................................... 17 4.1. Strategy ........................................................................................................... 17 4.2. Directions of development ...................................................................................... 17 4.3. Growth prospects and market strategy .......................................................................... 18 4.4. Key investments in Poland and abroad ......................................................................... 19 4.5. Key equity investments .......................................................................................... 22 4.6. Feasibility of investment plans .................................................................................. 22 4.7. Significant R&D achievements ................................................................................. 22 5. Financial condition of the Group ............................................................................... 23 5.1. Assessment of factors and one-off events with a material impact on operations and financial performance ............................................................................................... 23 5.2. Market overview ................................................................................................. 25 5.3. Key financial and economic data ............................................................................... 30 5.3.1. Segments’ financial results .................................................................................... 32 5.3.2. Operating expenses ............................................................................................ 34 5.3.3. Structure of assets, equity and liabilities ..................................................................... 35 5.3.4. Financial ratios ................................................................................................. 38 5.4. Management of capital and assets .............................................................................. 40 5.5. Bank deposits .................................................................................................... 40 5.6. Borrowings ....................................................................................................... 40 5.7. Loans advanced .................................................................................................. 43 5.8. Sureties and guarantees received and issued ................................................................... 43 5.9. Material off-balance-sheet items ................................................................................ 47 5.10. Financial instruments ........................................................................................... 47 5.11. Expected financial condition ................................................................................... 48 6. Risk, threats and growth prospects ............................................................................. 48 6.1. Significant risk factors and threats .............................................................................. 48 6.1.1. Investment project management .............................................................................. 48 6.1.2. Laws, regulations and compliance ............................................................................ 49 6.1.3. Management of fixed production assets ...................................................................... 50 6.1.4. Technical safety ................................................................................................ 51 6.1.5. Comprehensive customer support............................................................................. 52 6.2. Grupa Azoty Group’s significant external and internal growth factors ....................................... 54 6.2.1. External factors ................................................................................................ 54 6.2.2. Internal factors ................................................................................................. 55 7. Equity and other securities and its major shareholders ..................................................... 56 7.1. Total number and par value of Company shares, holdings of Company shares by supervisory and management personnel, and interests of such persons in the Company’s related entities ............. 56 7.2. Treasury shares held by the Parent, Group companies and persons acting on their behalf .................. 56 7.3. Shares of the Parent .............................................................................................. 56 8. Statement of compliance with corporate governance standards ............................................ 58 8.1. Corporate governance code applicable to the Parent and the place where the text of the code is available to the public ............................................................................................... 58 8.2. Declaration of applying the recommendations contained in the ‘Best Practice for WSE Listed Companies 2016’ ......................................................................................... 59 Grupa Azoty Zakłady Chemiczne Police Group Page 3 of 90 Directors' Report on the operations of the Grupa Azoty Zakłady Chemiczne Police Group in the 12 months ended December 31st 2018 (all figures in PLN '000 unless otherwise stated) 8.3. Internal control and risk management systems ................................................................. 63 8.4. Management standards and systems ............................................................................ 64 8.5. Shareholding structure ........................................................................................... 65 8.6. Special control powers of holders of securities ................................................................ 66 8.7. Restrictions on voting rights .................................................................................... 66 8.8. Restrictions on the transferability of securities ................................................................. 66 8.9. Rules governing appointment and removal of the management staff. Powers of the management staff, including in particular the authority to resolve to issue or buy back shares ........................... 66 8.10. Rules governing amendments to the Parent’s Articles of Association ...................................... 67 8.11. Operation of the General Meeting ............................................................................

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    90 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us