Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q3 2018 Earnings Presentation
35 slides from Grupa Kety Sa's earnings presentation, 2018
Slide 1: Q3 2018 Earnings Presentation
Q3 2018 EARNINGS PRESENTATION DARIUSZ MAŃKO ADAM PIELA PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER 1
Slide 2: A Few Words on Q3
A FEW WORDS ON Q3 DARIUSZ MAŃKO CHAIRMAN OF THE BOARD 2
Slide 3: Third Quarter with the Continuing Very Good Situation
THIRD QUARTER WITH THE CONTINUING VERY GOOD SITUATION High rate of the sales growth (approx. 13%). Growth in the operating profit and EBITDA, by 11% and 9%, respectively. Key investments are carried out in accordance with the schedule. 3
Slide 4: Macro Factors in the 3rd Quarter
MACRO FACTORS IN THE 3rd QUARTER Al (USD) Aluminium price in USD and PLN AL (PLN) 3000 9000 2700 8500 Demand remains at a high level. 8000 2400 7500 2100 7000 1800 6500 The cost of aluminum calculated in PLN increased by 1500 6000 4% in the third quarter. lip 17 sie 17 wrz 17 lis 17 gru 17 sty 18 lu
Slide 5: High Dynamics of Sales
HIGH DYNAMICS OF SALES Sales by segments (PLN mn) +13% 900,0 811,6 716,5 600,0 +15% +12% All segments achieved very good sales results. 300,0 351,9 360,0 +11% 305,0 320,1 161,6 178,7 0,0 SWW SSA SOG Consolidated 3Q 2017 3Q 2018 Geographical structure of sales (PLN mn) The domestic market and EU mark
Slide 6: Segments' Operating Activities
SEGMENTS’ OPERATING ACTIVITIES PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ BOARD MEMBER BOARD MEMBER BOARD MEMBER 6
Slide 7: Extruded Product Segment
EXTRUDED PRODUCT SEGMENT PIOTR WYSOCKI BOARD MEMBER 7
Slide 8: Extruded Product Segment – in use of very good economic situation
EXTRUDED PRODUCT SEGMENT– in use of very good economic situation Q3_2018 Q3_2017 change 3Q_2018 3Q_2017 change Total sales 351,9 305,0 15% 976,2 876,3 11% Domestic 187,2 165,3 13% 535,5 476,6 12% Export 164,7 139,7 18% 440,7 399,7 10% The volume of tonnage higher by 5%. Value increase by 14% The inc
Slide 9: Extruded Product Segment – positive image of the market in the medium term
EXTRUDED PRODUCT SEGMENT – positive image of the market in the medium term Current capacity utilization at the level of 95% - 100%. The situation on the Ukrainian market is slightly improving in terms of orders from local customers. Increased production of components in Advanced Aluminium Product PL
Slide 10: Extruded Product Segment – investment projects
EXTRUDED PRODUCT SEGMENT – investment projects The total The amount Implementati The amount Position amount of planned for on for 2018 planned (data in PLN mn) after 3Q the project 2018 after 2018 Press 8 "for soft alloys with a new building at 35MN 70,0 40,6 34,5 0,0 Counter-rotating press for hard
Slide 11: Aluminum System Segment
ALUMINUM SYSTEM SEGMENT TOMASZ GRELA BOARD MEMBER 11
Slide 12: Aluminium Systems Segment – successful quarter, good prospects
ALUMINIUM SYSTEMS SEGMENT– successful quarter, good prospects Q3_2018 Q3_2017 change 1-3Q_2018 1-3Q_2017 change Total sales 360,0 320,1 12% 949,7 843,0 13% Domestic 232,8 191,1 22% 597,2 501,3 19% Export 127,1 129,0 -1% 352,5 341,7 3% Over 20% increase in sales in the third quarter on domestic marke
Slide 13: Aluprof – expert in Europe for fire protection
ALUMINUM SYSTEM SEGMENT - ALUPROF - expert in Europe for fire protection MB-45D MB-60E EI MB-78EI SYSTEMY Door systems Fire protection systems MB-78EI MB-118EI MB-78EI DPA Fire resistance classification: Internal walls E - fire integrity EW - fire integrity and radiation reduction EI - fire integrit
Slide 14: Aluprof – fire protection certification
ALUMINUM SYSTEM SEGMENT - ALUPROF - expert in Europe for fire protection CERTIFICATIO N 23 COUNTRIES in the portfolio with Aluprof SA fire Countries with fire certification certification. Accredited certification bodies Europa Świat
Slide 15: Aluminum Systems Segment – investment projects
ALUMINUM SYSTEMS SEGMENT – investment projects The amount The total The amount Implementation Position planned after amount of the planned for for 2018 (data in PLN mn) after 3Q 2018 project 2018 Research Center 35,5 27,9 16,2 5,6 Vertical powder coating line + hall 15,5 9,7 2,7 5,8 Opole production
Slide 16: Final of the third edition of Object of the Year
ALUMINUM SYSTEM SEGMENT - final of the third edition of Object of the Year competition in Aluprof systems On September 14th, 2018, during the gala ceremony among over 350 architects, the final ten of the competitors were announced. The first place was won by the Green2Day building from Wrocław, desi
Slide 17: Aluminum System Segment – accomplished objects
ALUMINUM SYSTEM SEGMENT – accomplished objects PROXIMO II Hotel PURO GWIAZDA MORZA Warszawa, Polska Warszawa, Polska Władysławowo, Polska Center of Noninvasive Medicine DEO PLAZA SPORTOWA CENTRUM Gdańsk, Polska Gdańsk, Polska Gdynia, Polska
Slide 18: Aluminum System Segment – accomplished objects
ALUMINUM SYSTEM SEGMENT - accomplished objects Blossom Streen Norton Street 28-30 Addiscombe Grove Manchester, Wielka Brytania Liverpool, Wielka Brytania Croydon, Wielka Brytania Fletcher Hotels Hourglass Nova Zbrojovka Wageningen, Holandia Amsterdam, Holandia Brno, Czechy
Slide 19: Aluminum System Segment – objects in realization
ALUMINUM SYSTEM SEGMENT – objects in realization 125 Greenwich – NY, USA Mennica Legacy – Warszawa, Polska Posejdon – Szczecin, Polska
Slide 20: Aluminum System Segment – objects in realization
ALUMINUM SYSTEM SEGMENT – objects in realization NOWY TARG ROTUNDA BEETHOVEN Wrocław, Polska Warszawa, Polska Warszawa, Polska HANZA TOWER Hotel RIALTO GRANARIA Szczecin, Polska Warszawa, Polska Gdańsk, Polska
Slide 21: Aluminum System Segment – objects in realization
ALUMINUM SYSTEM SEGMENT – objects in realization The Crescent Hard Rock Hotel Babák office Manchester, Wielka Brytania Budapeszt, Wegry Brno, Czechy Skihallen A52 Design Plaza Oslo, Norwegia Browary, Ukraina Kowno, Litwa
Slide 22: Aluminum System Segment – acquired objects
ALUMINUM SYSTEM SEGMENT – acquired objects LIBRA Business Center II KONESER bud. C HIGH 5IVE bud. A i B (Pawia Office) Warszawa, Polska Warszawa, Polska Kraków, Polska UNITY CENTRE NOWY RYNEK bud. B CENTAURUS Kraków, Polska Poznań, Polska Olsztyn, Polska
Slide 23: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT RAFAŁ LECHOWICZ BOARD MEMBER 23
Slide 24: Flexible Packaging Segment – best quarter and 9 months in segment history
Flexible Packaging Segment - best quarter and 9 months in the history of the Segment - Oversupply of production capacity in the packaging PLN mn 3Q’16 3Q’17 3Q’18 change industry on the Polish market Revenues 130,7 161,6 178,7 + 11% - Price pressure with no acceptance of the transfer in EBIT 23,2 25
Slide 25: Flexible Packaging Segment – export sale
FLEXIBLE PACKAGING SEGMENT - export sale Exports in three quarters (2012-2018) Main export markets in PLN mn 90 80 70 +173% 82 60 71 50 40 55 30 42 44 37 20 30 10 Benelux (16%) Germany (15%) 0 3Q'12 3Q'13 3Q'14 3Q'15 3Q'16 3Q'17 3Q'18 Exports for the last 7 quarters (2017-2018) in PLN mn 90 80 +34%
Slide 26: Flexible Packaging Segment – sales structure of roto / flexo
FLEXIBLE PACKAGING SEGMENT - sales structure of roto / flexo Revenues from printed Revenues from flexo in PLN mn in PLN mn 150 80% 450,0 120% 140 129 440,0 430,0 420,0 390 400 130 410,0 400,0 390,0 373 120 107 60% 380,0 370,0 341 100% 110 360,0 350,0 340,0 318 100 80 330,0 320,0 90 310,0 300,0 290,0
Slide 27: Flexible Packaging Segment – status of investment projects
FLEXIBLE PACKAGING SEGMENT - status of investment projects Current status Investment expenses (PLN mln) The amount Realization Position planned for after 2018 9M'18 The second BOPP line 42,6 7,7 Investment reserve 5,4 1,7 Other (smaller projects) 1,8 0,7 CAPEX together 49,8 10,1 Visualization
Slide 28: Consolidated Results
CONSOLIDATED RESULTS ADAM PIELA BOARD MEMBER 28
Slide 29: Operating profit – reflection of good economic situation
ZYSK Z DZIAŁALNOŚCI OPERACYJNEJ – odzwierciedlenie dobrej koniunktury PLN mn Q3 2018 Q3 2017 change 1-3Q 18 1-3Q 17 change Revenues 811,6 716,5 +13% 2 235,2 1 982,3 +13% Operating profit 109,2 98,7 +11% 278,3 249,9 +11% margin 13,4% 13,7% 12,4% 12,5% EBITDA 140,3 128,7 +9% 371,9 339,2 +10% margin 17
Slide 30: Cost Increasement Under Control
COST INCREASEMENT UNDER CONTROL PLN mn Q3 2018 Q3 2017 change 1-3Q 2018 1-3Q 2017 change Sales revenues 811,6 716,5 +13% 2 235,2 1 982,3 +13% Total operating costs, including: 722,9 640,9 +10% 2 001,8 1 796,3 +11% Depreciation 31,1 30,1 +4% 93,6 89,2 +5% Raw materials, cost of goods sold 496,4 436,1
Slide 31: Over 200 Million of Operating Cash After Three Quarters
OVER 200 MILLION OF OPERATING CASH AFTER THREE QUARTERS Working capital (PLN mn) PLN mn 3Q_2017 4Q_2017 1Q_2018 2Q_2018 3Q_2018 +14% yoy Working Capital 726 697 748 800 825 900 Inventories 437 458 476 497 514 800 825 Receivables 543 475 531 583 588 726 748 Liabilities 254 236 258 280 277 600 697 Tur
Slide 32: Stable Financing
STABLE FINANCING Bank debt (PLN mn) 900 661,1 The increase in debt compared to last year resulting from the need 600 469,2 490,1 482,3 to finance the investment program and working capital as well as 300 340,9 the payment of dividends. 179,4 165,2 241,0 231,1 146,9 0 3Q_2017 4Q_2017 1Q_2018 2Q_2018
Slide 33: Summary
SUMMARY Very good financial results. Stable outlook for the next quarter. The Management maintains the forecast of results published at the beginning of the year. 33
Slide 34: Supplementary Information
SUPPLEMENTARY INFORMATION VOLUME SALES (thousands of tons) Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Extruded Products Segment 19,8 16,3 18,3 19,8 20,6 Flexible Packaging Segment 13,6 13,7 15,2 14,6 14,9 EBITDA per Segment (PLN mn) Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Extruded Products Segment 48,3
Slide 35: Legal Note
Legal Note. This presentation has been prepared by Grupa Kęty S.A. only for informational purposes and it does not form a purchase or sale offer or an offer aiming at soliciting a purchase or sale offer as regards any securities or financial instruments, or the participation in any commercial undert