Finances

Cash flow and profitability, sustainable growth and market position, sustainable return on capital

Management approach

An improved cash flow and higher profitability go hand in hand with sustainable growth. Such a situation ensures the availability of all the resources needed to make investments and thus safeguard Vetropack’s successful market position. Vetropack conducts its business operations in an environmentally compatible manner by setting targets for a sustainable return on capital employed (ROCE) that promote long-term growth. When doing so, Vetropack also takes into account the interests of its stakeholders and the social, economic and environmental impact of its business activities.

At the same time, Vetropack is investing in measures to increase production capacity and improve efficiency. The careful utilisation of resources, raw materials and personnel, and the reduction of waste, contribute to both financial and environmental success at the company. A further component for safeguarding long-term performance are investments in the development of new products and investments in research projects that reduce the environmental footprint of glass packaging.

Vetropack views the achievement of sustainable growth as a Group-wide task. The Group Strategy forms the foundation for numerous projects and initiatives that are supervised, monitored and coordinated by top-level management. Whereas the Sales department is responsible for pricing policy, the Research and Development team is working to further reduce the weight of glass containers and develop new products. The Administration and IT department is developing and implementing measures designed to further increase efficiency.

Numerous systems and processes are to be harmonised, digitalised and automated over the next three to four years, including electronic document management systems that will be used to digitalise workflows, improve the exchange of information and set up new digital archives. A new technologically advanced ERP system was launched in 2019. This system supports the company’s efforts to increase efficiency and it also serves as the basis for tools relating to supplier invoice management, procurement platforms, project portfolio management and human resources management. Vetropack utilises centralised procurement initiatives to achieve cost savings and optimise transport operations in the supply chain. For example, if digital information on specific transport needs is provided to a large group of freight-forwarders, these transport companies can then more effectively coordinate freight shipments in both directions, which in turn reduces the number of empty runs back to logistics centres.

Filling job positions with suitably talented individuals is another important way to ensure sustainable business success. The Vetropack Human Resources department is responsible for recruiting talented new employees and offering training opportunities to existing staff members. A new Group-wide human resources system is set to help Vetropack with its search for talented employees as a means of harmonising the human resources development and training process.

The Vetropack Group continually measures the progress it makes by using cash flow targets and associated KPIs, such as the costs per tonne of saleable glass produced, for example.

Disclosures

GRI 201 Economic Performance
201-1 Direct economic value generated and distributed

Compliance

Management approach

Compliance with legal provisions and international standards, such as those relating to human rights, for example, is essential for gaining the trust of key international customers in the food and beverage industry and thus ensuring the long-term success of Vetropack.

In order to ensure that awareness of the importance of fair business practices is firmly embedded in Vetropack’s corporate culture, the company provides training to employees on its Code of Conduct, which is based on the values of honesty, reliability and transparency. All employees are required to comply with the principles set out in the Code of Conduct. Decision-makers are additionally provided with extensive information on the company’s Business Ethics Policy, whereby the focus here is on fighting corruption, bribery and discrimination. Violations can be reported to the local Compliance Coordinator, the General Manager, the Compliance and Legal department or the CEO of the Vetropack Group. Vetropack also encourages all employees to report any suspected violations while observing the principle of proportionality.

Standardised SMETA audits (Sedex Members Ethical Trade Audits) are performed in order to monitor compliance with the company’s Business Ethics Policy and occupational safety and environmental protection provisions. In the 2019 fiscal year, SMETA audits were conducted at Vetropack Austria GmbH (VPA) (Kremsmünster and Pöchlarn sites), Vetropack Nemšová s.r.o., Vetropack Moravia Glass, a.s. and Vetropack Italia S.r.l. Audits are also conducted on a regular basis to determine whether subcontractors and suppliers are in compliance with the Supplier Code.

Disclosures

GRI 205 Anti-Corruption
205-2 Communication and training about anti-corruption policies and procedures

Our employees and suppliers are provided with information on our Anti-Corruption Guidelines on a regular basis. No specific training courses on corruption were conducted in the 2019 fiscal year. At the end of the fiscal year, 100% of the Management Board and 96% of employees exposed to corruption risks had been informed of measures and procedures in place to fight corruption. These measures and procedures are primarily based on the Business Ethics Policy (BEP) of the Vetropack Group. The figure for employees does not relate exclusively to the reporting period but instead takes into account all employees who have received anti-corruption training since joining the company.

GRI 206 Anti-Competitive Behaviour
206-1 Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

No legal actions for anti-competitive behaviour were initiated in 2019.

GRI 307 Environmental Compliance
307-1 Non-compliance with environmental laws and regulations

GRI 419 Socioeconomic Compliance
419-1 Non-compliance with laws and regulations in the social and economic area

No non-compliance penalties or fines were imposed on Vetropack in 2019.

GRI 406 Non-discrimination
406-1 Incidents of discrimination and corrective actions taken

There were no incidents of discrimination in 2019.

GRI 408 Child Labour
408 -1 Operations and suppliers at significant risk for incidents of child labour

Because Vetropack only operates in Europe, the company has no production facilities that represent a risk in terms of child labour.

GRI 409 Forced or Compulsory Labour
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labour

Because Vetropack only operates in Europe, the company has no production facilities that represent a risk in terms of forced or compulsory labour.

GRI 412 Human Rights Assessment
412-2 Employee training on human rights policies or procedures

At the end of the reporting year, 100% of the employees at the Vetropack Group had received training on relevant human rights issues. This figure for employees does not relate exclusively to the reporting period but instead takes into account all employees who have received training on human rights issues since joining the company.

GRI 418 Customer Privacy
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

Compliance with legal provisions and contractual obligations for protecting customer data is a top priority at Vetropack. In order to establish data protection as a firm component of its corporate culture, Vetropack has formulated internal IT guidelines and guidelines for protecting internal and third-party intellectual property. No complaints were reported during the period under review.