Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q3 2020 Earnings Presentation
19 slides from Grupa Kety Sa's earnings presentation, Oct 22, 2020
Slide 1: Results for the 3rd Quarter of 2020
RESULTS FOR THE 3rd QUARTER of 2020 DARIUSZ MAŃKO RAFAŁ WARPECHOWSKI PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD MEMBER BOARD MEMBER BOARD MEMBER CEO ALUPOL PACKAGING BOARD October 22nd, 2020
Slide 2: Quarter Results Above Expectations
QUARTER RESULTS ABOVE EXPECTATIONS MARKET OPERTIONS & FINANCE ENVIRONMENT CAPEX + IMPROVING BUSINESS + OPERATING ACTIVITY + PLN 198 million – EBITDA CONDITIONS IN WITHOUT DISTURBANCES TRANSPORT AND AUTOMOTIVE + 0,5 – NET DEBT/EBITDA + INCREASE OF SALES IN - GRADUAL GROWTH OF ALL SEGMENTS + PLN 35 pe
Slide 3: Segments Operating Activity
SEGMENTS OPERATING ACTIVITY 3
Slide 4: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT (PLN million) 3 Q 2020 3 Q 2019 change 1-3 Q 2020 1-3 Q 2019 change Sales 230,9 191,3 +21% 729,4 584,5 +25% YoY EBITDA increase by 63% due domestic 113,0 95,7 +18% 339,0 301,2 +13% to higher sales volumes and foreign 117,9 95,6 +23% 390,4 283,3 +38% improved margins (both
Slide 5: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT Volume sales (th of tonnes) / capacity utilisation (%) 94% 93% 92% 98% 96% 88% 100% 20 High capacity utilization, despite strong price pressure on the market in both 50% 23,6 23,0 21,1 10 segments (inflow of cheap BOPP film to the 16,0 15,7 17,6 European market from Asian
Slide 6: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT (PLN million) 3Q 2020 3Q 2019 change 1-3Q 2020 1-3Q 2019 change Increase in volume sales by 7%, Sales 328,8 329,2 0% 970,1 997,1 -3% maintaining the level of revenues domestic 174,2 179,2 -3% 500,2 549,6 -9% despite a 5% decrease in the average aluminum price in PLN foreign
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Volume sales (th of tonnes) / capacity utilisation (%) 95% 90% 96% 97% 100% 91% 30 Record level of production in the quarter 68% (high level of production capacity 20 utilization mainly due to recovery in key 50% sectors after the "lockdown" period) 20,8 20,9 20,8 22,0 22,4
Slide 8: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Activities of foreign subsidiaries: Alupol LLC, Ukraine: in September, record sales for the domestic market in 2020, and the entire quarter with the best result in two years AK EMMI, Slovenia: production without interruptions; after slowdown, sales rebounded to the budgeted
Slide 9: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT (PLN million) 3 Q 2020 3 Q 2019 change 1-3Q 2020 1-3Q 2019 change Sales 439,3 402,5 9% 1 158,0 1 107,7 5% Higher sales thanks to the recovery in the domestic market and a stable domestic 269,1 244,3 10% 713,0 692,9 3% foreign sales. foreign 170,2 158,2 8% 445,0 414,8 7% EBI
Slide 10: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT Projects gained in Q3 DOMESTIC SALE • Systematic increase in the order portfolio • Increased interest in products for individual customers • Return to high levels of sales of joinery exporting companies • Persistent market pressure in the area of prices FOREIGN SALE • Dynam
Slide 11: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT CAPEX 2020 1-3Q % of Gradual launching of investments (PLN million) FORECAST EXPENSES forecast Total 95 27 28% • production hall in Opole (13,000 m2) - construction begins (the stage of erecting poles), works are proceeding according to the schedule • installing new machine
Slide 12: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT The beginning of the TV advertising campaign as one of the elements of a "wider" entry into the private housing market 12
Slide 13: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 13
Slide 14: Consolidated P&L
CONSOLIDATED P&L PLN million 3Q 2020 3Q 2019 change 1-3Q 2020 1-3Q 2019 change • Revenue increase resulting from higher sales volumes Revenues 920,0 838,8 10% 2 636,8 2 449,5 8% • EBITDA improvement in all EBITDA 198,0 160,6 23% 530,9 406,1 31% segments: EBITDA margin 21,5% 19,1% 20,1% 16,5% EPS PLN
Slide 15: Cash Flow in the 3rd Quarter
CASH FLOW IN THE 3rd QUARTER Operating cash flow (PLN million) CAPEX (PLN million) 250 100 92 209 200 159 137 159 55 144 150 117 46 43 100 30 23 50 0 0 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Cash flow in 3Q (PLN million) 250 • Decline in net d
Slide 16: Safe Level of Financial Indicators
SAFE LEVEL OF FINANCIAL INDICATORS Net debt (PLN million) and net debt/EBITDA ratio Maturity structure Currency structure 1000 1,7 1,8 short term debt EUR 1,6 1,6 800 1,3 43% 22% 1,4 1,2 1,2 USD 600 1% 0,8 1,0 0,8 400 774 0,5 727 703 641 0,6 460 0,4 PLN 200 long term debt 322 0,2 77% 0 0,0 57% 2Q 20
Slide 17: Summary – Prospects for the 4th Quarter
SUMMARY – PROSPECTS FOR THE 4th QUARTER MARKET OPERATIONS & FINANCE ENVIRONMENT CAPEX • UNCERTAINTY RELATED • MAINTAINING CAPACITY • 2020 OUTLOOK TO THE EXPANSION OF UTILISATION WHILE MAINTAINED THE PANDEMIC ENSURING WORK SAFETY • PAYMENT OF PLN 337 • SHORT HORIZON OF • CONTINUING MILLION DIVIDEND,
Slide 18: Additional Information
ADDITIONAL INFORMATION VOLUME SALES (thousands of tons) 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Extruded Products Segment 20,9 15,6 20,8 22,0 22,5 Flexible Packaging Segment 16,0 15,7 23,6 23,0 21,1 EBITDA per Segment (PLN million) 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Extruded Products Segment 49
Slide 19: 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