Integrated Report of Grupa Azoty 2020

TABLE OF CONTENT

[103-2]

The credit for Grupa Azoty’s market success goes to our employees. The position and reputation of our products and brands are owed to the competencies and commitment of several thousand people. We want every employee of the Group’s facilities to be satisfied with their jobs, to feel safe, and to know that the Grupa Azoty Group offers the best work environment. Recognising that we are responsible for our crew members, we take care to cater to their needs. We are happy that they are sensitive towards others and we proudly support local volunteering activities in which they engage.

Meet our team

[102-8] [401-1] [405-1]

63%, or most of the Group’s total workforce, is employed by one of the four largest companies. We understand the need for stabilisation and job certainty – we do not seek apparent cost savings by exploiting various employment types and we comply with the Labour Code. We hire people under employment contracts, and approximately 90% of our employees have open-ended contracts. Most of our employees (approximately 75%) are men and people aged 30-50. Women are the majority of laboratory staff.

[102-8]

Total number of employees by gender and type of employment contract (headcount)

		2019		2020
		K	M	K	M
Grupa Azoty KĘDZIERZYN	Open-ended contract	412	1,003	406	999
	Fixed-term contract	52	80	49	74
	Total	464	1,083	455	1,073
Grupa Azoty POLICE	Open-ended contract	508	1 861	499	1 841
	Fixed-term contract	40	126	28	137
	Total	548	1,987	527	1,978
Grupa Azoty PUŁAWY	Open-ended contract	730	2 538	729	2 573
	Fixed-term contract	76	215	81	222
	Total	806	2,753	810	2,795
Grupa Azoty S.A.	Open-ended contract	635	1 466	643	1 491
	Fixed-term contract	23	68	22	62
	Total	658	1,534	665	1,553
Total		2,476	7,357	2,457	7,399
Total		9,833		9,857

Total number of employees by gender and working time arrangement (headcount)

2019 2020

K M K M
Grupa Azoty KĘDZIERZYN Part-time
1 0 3 0
Full-time
463 1,083 452 1,073
Total
464 1,083 455 1,073
Grupa Azoty POLICE Part-time
2 1 2 1
Full-time
546 1,986 525 1,977
Total
548 1,987 527 1,978
Grupa Azoty PUŁAWY Part-time
2 2 1 2
Full-time
804 2,751 809 2,793
Total
806 2,753 810 2,795
Grupa Azoty S.A. Part-time
1 4 4 8
Full-time
657 1,530 661 1,545
Total
658 1,534 665 1,553
Total
2,476 7,357 2,457 7,399
9,833 9,856

[405-1]

Governing bodies and employees by gender and age group

Number of employees by gender and type of position

	Grupa Azoty KĘDZIERZYN				Grupa Azoty POLICE				Grupa Azoty PUŁAWY				Grupa Azoty S.A.
	2019		2020		2019		2020		2019		2020		2019		2020
	M	K	M	K	M	K	M	K	M	K	M	K	M	K	M	K
Operators	650	34	649	33	1,169	9	1,163	8	1,050	15	1,076	15	714	40	713	34
Other blue-collar jobs	109	21	108	19	345	76	341	70	912	110	921	105	339	45	330	44
Managing officers	62	46	62	45	83	25	80	26	120	54	123	56	80	50	87	50
Laboratory staff	13	111	13	112	8	180	9	174	1	174	1	177	11	206	9	209
Supervisors	77	8	75	8	129	17	130	17	235	20	244	20	105	11	105	10
Senior staff	37	95	39	95	0	7	0	5	46	114	44	120	90	170	97	166
Specialists	124	143	117	138	231	228	234	221	343	305	342	299	168	133	190	149
Senior management	11	6	10	5	22	6	21	6	46	14	44	18	27	3	22	3
Management Board	3	0	3	0	0	0	0	0	0	0	0	0	0	0	0	0
Total	1,086	464	1,076	455	1,987	548	1,978	527	2,753	806	2,795	810	1,534	658	1,553	665
Total	1,550		1,531		2,535		2,505		3,559		3,605		2,192		2,218

Employees by gender and type of position [%]

	Grupa Azoty KĘDZIERZYN				Grupa Azoty POLICE				Grupa Azoty PUŁAWY				Grupa Azoty S.A.
	2019		2020		2019		2020		2019		2020		2019		2020
	M	K	M	K	M	K	M	K	M	K	M	K	M	K	M	K
Operators	41.94	2.19	42.39	2.16	46.11	0.36	46.43	0.32	29.50	0.42	29.85	0.42	32.57	1.82	32.15	1.53
Other blue-collar jobs	7.03	1.35	7.05	1.24	13.61	3.00	13.61	2.79	25.63	3.09	25.55	2.91	15.47	2.05	14.88	1.98
Managing officers	4.00	2.97	4.05	2.94	3.27	0.99	3.19	1.04	3.37	1.52	3.41	1.55	3.65	2.28	3.92	2.25
Laboratory staff	0.84	7.16	0.85	7.32	0.32	7.10	0.36	6.95	0.03	4.89	0.03	4.91	0.50	9.40	0.41	9.42
Supervisors	4.97	0.52	4.90	0.52	5.09	0.67	5.19	0.68	6.60	0.56	6.77	0.55	4.79	0.50	4.73	0.45
Senior staff	2.39	6.13	2.55	6.21	0.00	0.28	0.00	0.20	1.29	3.20	1.22	3.33	4.11	7.76	4.37	7.48
Specialists	8.00	9.23	7.64	9.01	9.11	8.99	9.34	8.82	9.64	8.57	9.49	8.29	7.66	6.07	8.57	6.72
Senior management	0.71	0.39	0.65	0.33	0.87	0.24	0.84	0.24	1.29	0.39	1.22	0.50	1.23	0.14	0.99	0.14
Management Board	0.19	0.00	0.20	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

Employees by age and type of position [%]


Position	Age	2019	2020	2019	2020	2019	2020	2019	2020
Operators	30–50	16.61	16.14	21.61	23.58	18.80	17.70	24.85	26.11
	50+	12.09	12.62	19.68	18.29	6.43	7.63	13.18	12.42
	<30	5.70	4.91	2.84	2.68	4.69	4.94	8.44	8.22
Other blue-collar jobs	30–50	7.12	6.67	4.26	4.51	14.41	13.34	8.13	8.50
	50+	9.03	9.15	3.74	3.33	10.79	11.82	6.98	6.07
	<30	1.37	1.04	0.39	0.46	3.51	3.30	1.50	1.84
Managing officers	30–50	3.70	3.56	3.61	3.85	2.61	2.11	2.68	2.63
	50+	2.24	2.52	3.29	3.14	2.28	2.86	1.58	1.60
	<30	0.00	0.09	0.06	0.00	0.00	0.00	0.00	0.00
Laboratory staff	30–50	4.47	3.79	3.42	3.66	2.36	2.03	3.67	3.71
	50+	3.79	4.15	3.35	3.00	1.66	2.11	2.45	2.24
	<30	1.64	1.89	1.23	1.50	0.90	0.80	1.30	1.36
Supervisors	30–50	2.92	2.07	2.19	2.35	4.19	3.83	3.43	3.67
	50+	2.24	3.07	3.29	3.07	2.95	3.44	2.29	2.16
	<30	0.14	0.05	0.00	0.00	0.03	0.06	0.04	0.04
Senior staff	30–50	4.93	4.69	4.58	5.55	2.33	2.30	0.16	0.08
	50+	5.34	5.68	1.87	1.44	1.91	2.03	0.08	0.04
	<30	1.60	1.49	2.06	1.76	0.25	0.22	0.04	0.08
Specialists	30–50	8.94	9.92	10.26	10.45	11.69	11.26	10.37	11.10
	50+	4.06	4.73	6.90	6.21	5.25	5.38	6.23	5.91
	<30	0.73	0.63	0.06	0.00	1.26	1.14	1.50	1.16
Senior management	30–50	0.78	0.72	0.84	0.72	0.93	0.83	0.83	0.68
	50+	0.59	0.41	0.26	0.26	0.76	0.89	0.28	0.40
	<30	0	0.00	0.00	0.00	0	0	0	0
Management Board	30–50	0	0	0.06	0.07	0	0	0	0
	50+	0	0	0.13	0.13	0	0	0	0
	<30	0	0	0	0	0	0	0	0

[401-1]

Workforce by gender and age group (headcount)

	Year	2019				2020
	Gender	K		M		K		M
Grupa Azoty KĘDZIERZYN	<30	41	3%	62	4%	42	9%	56	5%
	30–50	244	16%	592	38%	249	55%	588	55%
	50+	179	12%	429	28%	164	36%	429	40%
	Total	464	30%	1,083	70%	455	19%	1,073	15%
Grupa Azoty POLICE	<30	59	2%	266	10%	57	11%	261	13%
	30–50	312	12%	1,058	42%	312	59%	1,103	56%
	50+	177	7%	663	26%	158	30%	614	31%
	Total	548	22%	1,987	78%	527	21%	1,978	27%
Grupa Azoty PUŁAWY	<30	63	2%	316	9%	57	7%	320	11%
	30–50	428	12%	1,612	45%	409	50%	1,516	54%
	50+	315	9%	825	23%	344	42%	959	34%
	Total	806	23%	2,753	77%	810	33%	2,795	38%
Grupa Azoty S.A.	<30	62	3%	183	8%	64	10%	160	10%
	30–50	328	15%	756	34%	315	47%	740	48%
	50+	268	12%	595	27%	286	43%	653	42%
	Total	658	30%	1,534	70%	665	27%	1,553	21%
Total <30		225	2%	827	8%	220	9%	797	11%
Total 30–50		1,312	13%	4,018	41%	1,285	52%	3,947	53%
Total 50+		939	10%	2,512	26%	952	39%	2,655	36%
Total		2,476	25%	7,357	75%	2,457	25%	7,399	75%

New hires by gender and age

	Year	2019				2020
	Gender	K		M		K		M
Grupa Azoty KĘDZIERZYN	<30	13	32%	21	34%	14	54%	16	41%
	30–50	11	5%	20	3%	12	46%	22	56%
	50+	0	0%	3	1%	0	0%	1	3%
	Total	24	5%	44	4%	26	24%	39	12%
Grupa Azoty POLICE	<30	14	24%	70	26%	7	54%	54	45%
	30–50	14	4%	38	4%	6	46%	64	54%
	50+	2	1%	4	1%	0	0%	1	1%
	Total	30	5%	112	6%	13	12%	119	36%
Grupa Azoty PUŁAWY	<30	9	14%	62	20%	7	22%	61	57%
	30–50	20	5%	50	3%	24	75%	44	41%
	50+	0	0%	2	0%	1	3%	2	2%
	Total	29	4%	114	4%	32	29%	107	32%
Grupa Azoty S.A.	<30	21	34%	35	19%	15	38%	16	23%
	30–50	17	5%	52	7%	17	44%	43	62%
	50+	0	0%	7	1%	7	18%	10	14%
	Total	38	6%	94	6%	39	35%	69	21%
Total <30		23%	25%	188	23%	43	39%	147	44%
Total 30–50		4%	5%	160	4%	59	54%	173	52%
Total 50+		1%	0%	16	1%	8	7%	14	4%
Total		5%	5%	364	5%	110	25%	334	75%

Total number of terminations and employee turnover by gender and age

	Year	2019				2020
	Gender	K		M		K		M
Grupa Azoty KĘDZIERZYN	<30	4	10%	3	5%	2	6%	3	6%
	30–50	9	4%	17	3%	7	20%	10	19%
	50+	18	10%	37	9%	26	74%	39	75%
	Total	31	7%	57	5%	35	24%	52	17%
Grupa Azoty POLICE	<30	4	7%	25	9%	3	8%	20	14%
	30–50	6	2%	43	4%	8	22%	34	24%
	50+	16	9%	54	8%	26	70%	89	62%
	Total	26	5%	122	6%	37	26%	143	46%
Grupa Azoty PUŁAWY	<30	1	2%	8	3%	2	5%	4	6%
	30–50	4	1%	10	1%	11	27%	18	26%
	50+	27	9%	41	5%	28	68%	47	68%
	Total	32	4%	59	2%	41	28%	69	22%
Grupa Azoty S.A.	<30	0	0%	18	10%	3	9%	4	8%
	30–50	5	2%	55	7%	2	6%	10	20%
	50+	17	6%	46	8%	27	84%	35	71%
	Total	22	3%	119	8%	32	22%	49	16%
Total <30		9	4%	54	7%	10	7%	31	10%
Total 30–50		24	2%	125	3%	28	19%	72	23%
Total 50+		78	8%	178	7%	107	74%	210	67%
Total		111	4%	357	5%	145	32%	313	68%

[401-2] [404-2]

We strive to meet the highest standards in all areas of our business. We offer competitive compensation, attractive training opportunities, and a generous employee benefit package.

The employee benefits include:

healthcare
corrective glasses
protective wear and workwear
medical and life insurance
retirement benefits
social fund
length-of-service award, annual bonus
training and courses
maternity/parenting/paternity leaves
co-financing of holidays and other forms of leisure

Additionally, the individual companies offer the following:

Grupa Azoty S.A. zapewnia:

Occupational Pension Scheme
home loans

Grupa Azoty Kędzierzyn:

Occupational Pension Scheme
health care programmes
partial refund of upskilling expenses
emergency benefits

Grupa Azoty Puławy:

emergency cash for employees, pensioners, persons on pre-retirement benefits and children of eligible persons
home loans
excursions for employees – an employee benefit
‘Spartakiads’ – events for employees, pensioners, persons on pre-retirement benefits
Employee Capital Plans

Grupa Azoty Police:

prophylactic meals for some employees

Each of our largest companies offers upskilling opportunities to its employees at all levels. The training process is embedded in the Integrated Quality, Environment and Safety Management System. All employee groups undergo training. Many courses are provided at the request of employees, who are free to choose their subject matter, form of instruction, and timing, as long as a course is going to improve employees’ work-related skills (must be linked to their current or future responsibilities) and there are sufficient funds in the training budget.

Grupa Azoty S.A.:

Management training programme:

Leadership of the future – executives (7 people in 2020)
Engaging leadership – managers (34 people)
The effective leadership league – supervisors (80 people)

Grupa Azoty Kędzierzyn:

In 2020, six agreements were signed for upskilling of Grupa Azoty Kędzierzyn employees

Grupa Azoty Puławy:

A competency improvement programme as part of the Grupa Azoty Puławy Skills Academy dedicated to white-collar staff; its objective is to promote knowledge-sharing among employees by means of an in-house training system and to improve their social and managerial competencies such as communication, teamwork and team management skills
A professional skill improvement programme addressed to blue-collar personnel, which describes the principles of mentorships; its introduction was accompanied by the implementation of a qualification management module in the HR system to which information on all blue-collar employee qualifications was migrated

Grupa Azoty Police:

Development of employee competencies in accordance with the approved training plan of Grupa Azoty Police
The ‘Green Forge’ internship programme designed to introduce flexible options for attracting top talents
The Centre for Vocational and Continuous Education in Police with a mission to promote improvement and acquisition of professional skills
Agreements on university tuition fee discounts for the company’s employees
Programmes taught under the company’s auspices:
- Chemical engineering technician
- Mechatronics technician, automation technician

In 2020, some of our training plans were frustrated by the COVID-19 pandemic and related social distancing requirements. Where possible, training was delivered online. Other trainings were postponed until it is safe to organise them.

[404-1]

Average number of training hours per employee by gender

		Structure level
Year	Gender	Grupa Azoty S.A.	Grupa Azoty KĘDZIERZYN	Grupa Azoty PUŁAWY	Grupa Azoty POLICE	Average
2019	F	8.8739	4.9289	8.2190	7.3650	7.3467
2019	M	8.3429	8.3647	6.9984	14.1022	9.4521
2020	F	2.2932	1.7341	4.6074	5.2619	3.4742
2020	M	2.7882	3.2377	4.3903	13.1026	5.8797

Average number of training hours per employee by type of position

Position	Structure level	Grupa Azoty S.A.		Grupa Azoty KĘDZIERZYN		Grupa Azoty PUŁAWY		Grupa Azoty POLICE
	Year	2019	2020	2019	2020	2019	2020	2019	2020
Operators		7.0186	0.0803	8.1842	3.1554	5.8451	2.3804	15.496	12.0470
Other blue-collar jobs		5.0625	0.1765	8.8308	5.3071	4.3444	2.7515	9.7340	12.2895
Managing officers		19.800	12.891	11.296	3.3645	15.425	12.397	15.157	23.4811
Laboratory staff		1.9908	0.0734	2.3387	1.2800	2.5600	1.3483	6.0053	5.3552
Supervisors		19.552	18.870	4.6353	2.0000	5.2745	2.7386	11.726	7.3197
Senior staff		10.762	2.3650	4.8182	2.3209	5.0344	0.9329	3.5714	0.0000
Specialists		10.635	1.3451	6.1348	1.5608	12.262	9.4665	9.8932	9.4440
Senior management		4.267	25.400	24.824	2.8000	33.300	19.048	22.964	11.5185
Management Board		not applicable	not applicable	not applicable	not applicable	not applicable	not applicable	not applicable	not applicable
Average		9.8860	7.6502	8.8828	2.7236	10.506	6.3829	11.818	11.0911

[202-1]

Ratios of standard entry level wage by gender compared to local minimum wage *

	Ratio of standard entry level wages for women compared to local minimum wages		Ratio of standard entry level wages for men compared to local minimum wages
	2019	2020	2019	2020
Grupa Azoty KĘDZIERZYN	2.52	2.63	2.18	3.01
Grupa Azoty POLICE	2.55	2.03	2.20	2.32
Grupa Azoty PUŁAWY	2.01	2.10	1.31	2.38
Grupa Azoty S.A.	2.17	2.24	2.45	2.25

* Ratio calculated as the average entry level wage compared to minimum wage in Poland in 2020.

[404-3]

Given the need to ensure a safe and healthy work environment in connection with the declaration of the state of epidemic in Poland, and in view of the internal regulations in place which required, for instance, that social distancing rules be obeyed and paper work flow be minimised, no interim performance reviews were carried out in 2020, as this would entail evaluation meetings and provision of interim review printouts to the individuals concerned.

However, interim performance reviews were carried out as part of the bonus system. The following employees were covered:

at Grupa Azoty S.A. – all company employees, except Management Board members and persons employed under managerial contracts;
at Grupa Azoty Kędzierzyn – all company employees who had served for more than a year, except Management Board members, delegates to trade unions, the Company Social Labour Inspector, and employee groups with individual bonus objectives assigned in the BSC system;
at Grupa Azoty S.A. – all company employees, except Management Board members, chief accountant, and persons employed under managerial contracts;
at Grupa Azoty Puławy – all company employees, except Management Board members.

Performance reviews under the incentive scheme are carried out as a review of progress against objectives and based on on-the-job assessment criteria. Persons excluded from quarterly interim reviews are assessed according to other rules which are in place.