Expected financial standing
The Parent and key Group companies are fully solvent, with good credit standing. This means that the Group is able to pay its liabilities as they fall due and to hold and generate free operating cash flows to further support payment of such liabilities in a timely manner.
In 2015, the Group paid all of its borrowing-related liabilities when due, and there is no threat to its ability to continue servicing its debt.
In 2015, the Parent did not pay dividend from the 2014 profit as it allocated all funds to support the implementation of the Investment Strategy, while other Group companies paid dividends from the 2014 profits on the dates specified in relevant resolutions on profit distribution passed by their general meetings.
The Grupa Azoty Group has access to overdraft limits under virtual cash pooling, which the Parent may use at times of increased demand for funding at Group companies; and to additional multi-purpose and working capital credit lines available to its subsidiaries. The Group complies with the uniform covenants of its facility agreements, which enable it to significantly increase financial debt when and as needed.
The Group’s financial standing is sound, and there are no material threats or risks of its deterioration in the future.
The Group’s Budget for 2016 takes into account all market forecasts available to the Group and detailed budgets of its individual Business Units. The Budget accounts for the main assumptions and optimises economic parameters derived from trends identified in the macroeconomic environment and internally, within the organisation.
Furthermore, the Group executed agreements with commercial and multilateral banks, under which it was granted a long-term revolving credit facility of PLN 1,500m for five years, and long-term credit facilities of PLN 700m for 10 years. The purpose of the facilities is to finance the investment plans and other objectives outlined in the Group’s long-term Strategy.
