Currency risk. Export revenues in 2022 accounted for 76% of the group's revenues (including foreign customers invoiced by their Polish companies), with the US accounting for 27% and the European Union 38%.
A sudden weakening of the USD or EUR against the PLN may result in a decrease in PLN-denominated revenues and translate into a margin decrease in the short term, before the company adjusts rates in contracts. Some of the risk is hedged by currency hedging. In the 2022 report, the company indicated that sales in non-reporting currency (PLN) accounted for 60%, while purchases in non-reporting currency accounted for 29% of the group's purchases.
Risk of claims from Pekao in relation to termination. According to management's communication, the value of claims that Pekao may seek should not exceed the value of the annual contract revenue, i.e. approximately PLN 4m, which is less than 2% of the company's capitalisation. Any potential litigation would probably take several years to resolve.
