The Group records a surplus of financial resources or uses borrowings through long- and short-term bank loans. Interest on bank term deposits and loans is variable and depends on the interest rates applicable on the interbank market such as WIBOR (for loans in PLN), LIBOR and EURIBOR (for foreign currency loans). As a result, the Group is exposed to the interest rate risk, which may result in lower rate of return on deposits or higher costs of borrowed loans.
As estimated by the Group, the following items are exposed to the interest rate risk:
Interest rate risk refers to the following items, broken down into maturity dates:
| Variable interest | |||
|---|---|---|---|
| 31.12.2021 | < 1 year | 1–2 years | Over 3 years |
| Cash | 103,810 | 0 | 0 |
| Bank loans in PLN | (430,804) | (253,689) | (103,850) |
| Bank loans in EUR | (97,132) | (64,194) | 0 |
| Bank loans in USD | (7,105) | 0 | 0 |
| Total | (431,231) | (317,883) | (103,850) |
| Variable interest | |||
|---|---|---|---|
| 31.12.2020 | < 1 year | 1–2 years | Over 3 years |
| Cash | 151,170 | 0 | 0 |
| Bank loans in PLN | (189,975) | (242,929) | (189,621) |
| Bank loans in EUR | (79,908) | (7,536) | 0 |
| Total | (118,713) | (250,465) | (189,621) |
Susceptibility analysis
By managing interest rate risk and currency risk, the Group aims to reduce the impact of short-term interest rates and FX rates fluctuations on the Group results. However, persisting changes in exchange rates and interest rates will have an impact on the Group results.
The tables below present the estimates of the Group risks related to changes in interest rates and exchange rates of the main currencies.
For the items affecting the statement of profit or loss
| Risk | Change | Change of gross profit − 2021 | Change of gross profit − 2020 |
| Increase in interest rates | 1 p.p. | (9,550) | (7,129) |
| EUR/PLN exchange rate increase | 5 p.p. | (5,403) | 2,709 |
| USD/PLN exchange rate increase | 5 p.p. | (21) | (565) |
| GBP/PLN exchange rate increase | 5 p.p. | 1,393 | 123 |
For the items affecting the equity:
| Risk | Change | 31.12.2021 | 31.12.2020 |
| EUR/PLN exchange rates increase for hedging instruments | 5% | (10,668) | (2,093) |
| USD/PLN exchange rates increase for hedging instruments | 5% | (4,150) | (2,534) |
| GBP/PLN exchange rates increase for hedging instruments | 5% | (34) | (629) |
| Higher aluminium price for hedging instruments | 5% | 5,078 | 4,392 |
