Page 53 - Glass Machinery Plants & Accessories no. 5/2017

OSHAS 18001:2007, which are lations or technologies for the ratio of 2.5 at the prior year end.
certified by independent entities production process, management The core of the financing
accrediting the existence of an initiatives include the continual structure is a long-term syndi-
internationally recognised man- and specialised search for supply cated loan signed on 13 March
agement framework. sources and strengthening ties 2015 with a consortium of nine
With a specific view to prevent- with suppliers, diversifying and financial institutions, for an origi-
ing labour-related accidents, and forging long-term relationships, nal amount of EUR 465 mil-
more importantly, to improving establishing ongoing audit and lion. After a second novation of
health in the workplace, Vidrala standardisation processes and the loan terms was signed in
implements specific and system- developing supply alternatives in November 2016, the applicable
atic ongoing staff training and all relevant areas. interest rate on the loan in 2017
awareness plans. The sustain- Steps taken to address cus- will be a variable rate pegged to
ability report, attached to this tomer service and product qual- Euribor plus a spread of 1 per
report, details the progress of ity risks include the development cent, reviewed on an annual basis
occupational health and safety of a specific departmental area by tranche based on the evolu-
management indicators. These separated from the rest of the tion of the net debt/consolidated
plans are developed and distrib- organisational areas dedicated EBITDA ratio. The due date of
uted among all agents involved in exclusively to quality. There is a the loan has been extended to 13
the organisation, allowing health specific investment project near- September 2022, and is gradu-
and safety trends to be objectively ing completion that aims to guar- ally repayable from 13 March
measured and documented, and antee product quality targets and 2019. Consequently, in 2017,
enabling the actual effectiveness optimise product quality control the loan will be in a grace period,
of the processes and controls through the implementation of with no obligation to repay the
implemented to be observed, and state of the art technology across principal. O
whether additional corrective all the Group’s facilities.
measures are needed. Concerning inventory risk, the
Group systematically carries out
THE SUPPLY CHAIN a specific and periodic controls
AND ITS RISKS to ensure the quality of finished
Production-intensive, contin- products in the warehouse, and
uous-service industries such as optimise ageing and rotation so
Vidrala’s can be vulnerable to that both the volume and value
risks of distortion in the supply of stocks are balanced to sales
chain. forecasts. These controls have
As regards supply risk affecting resulted in the implementation
key products, materials, instal- of automated stock monitoring
processes and the subsequent
application of specific adaptation,
physical and valuation measures,
which in 2016 are giving rise
to inventory impairment adjust-
ments in the income statement.

DEBT AND SOLVENCY
At 31 December 2016, the
Vidrala Group had consolidated
net financial debt of EUR 322.3 VIDRALA GROUP
million, having reduced indebt-
edness by EUR 82 million, or Headquarters
20.3 per cent, during the year. Barrio Munegazo 22
The financial solvency indica- 01400 Llodio - Alava - Spain
tors at the reporting date reflect Tel.: +34-946-719714
a debt equivalent to 1.9 times Fax: +34-946-719764
accumulated EBITDA for the last E-Mail: secretaria.direccion@vidrala.com
12 months, representing a finan- www.vidrala.com
cial deleveraging compared to the

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