With regard to the recommendations of the European Securities and Markets Authority (ESMA) of 11 March 2020 and the Polish Financial Supervision Authority of 12 March 2020, the Management Board of TOYA S.A. with its registered office in Wrocław (the “Issuer”) provides the information of the potential influence of COVID-19 on the operations of the Issuer. As at the day of issuing this report, any business processes are performed without disruptions. The extension of the New Year break that is traditionally associated with the celebration of the Chinese New Year had influence on the decreased supply of goods in suppliers from Asia but the Issuer expects that due to the fact that situation of combating the pandemic in this area increasingly improves, the implementation of the Issuer’s orders in next weeks should return to the planned level. In the opinion of the Issuer, the aforementioned disruptions in the supply chain should not influence the financial results of the Issuer significantly due to the fact that it is in possession of significant amount of inventories as long as there are no additional difficulties in logistics concerning the current pandemic. Due to the fact that the Issuer strictly cooperates with foreign suppliers and settles with them in foreign currencies the financial results of the Issuer are susceptible to changes in exchange rates. The Issuer identifies the exchange rate risk and carefully observes the situation on global currency markets. In the next area of potential risks, such as product distribution channels, as at the date of issue of this report, the Issuer performs sale activities in compliance with the placed orders and its inventories and stable financial situation ensure the operational continuity of the Issuer’s operations. The potential risks in this sector depend on, inter alia, purchasing activity and financial liquidity of the customers and potential additional restrictions of state and local authorities. The Issuer, by adhering to the recommendations of the state authorities, including sanitary authorities, undertaken organisational measures in the scope of protection of employees relying on, inter alia, enabling the employees, whose scope of duties allows for such possibility, to work remotely in order to minimise the risk in the personnel area to the highest possible extent. The aforementioned assessment was provided to the best of the Issuer’s knowledge as at the day of issuing this report. It should be, however, underlined that the situation changes in a very dynamic manner and restrictions introduced by means of subsequent legislative amendments, decisions of state and international authorities and other unforeseen factors beyond the control of the Issuer, depending on their period of lasting and intensity, can negatively influence the operations and financial situation of the Issuer. At the same time the Issuer, as at the date of publication of this report, cannot estimate the influence of the aforementioned factors on financial situation of the Issuer. The Issuer constantly monitors the risks associated with threat caused by COVID-19 and their potential influence on the continuous operations of the Company. The Issuer will inform on any significant actions and events identified at further stages in separate current reports.
Legal basis:
Art. 17 section 1 of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L of 2014 no. 173, page 1, as amended).
Grzegorz Pinkosz
President of the Management Board