Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q2 2020 Earnings Presentation
18 slides from Grupa Kety Sa's earnings presentation, Aug 6, 2020
Slide 1: Results for the 2nd Quarter of 2020
RESULTS FOR THE 2nd 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 August 6, 2020
Slide 2: Quarter Results Above Expectations
QUARTER RESULTS ABOVE EXPECTATIONS MARKET OPERTIONS & FINANCE ENVIRONMENT CAPEX +/- RESTRICTED ACTIVITIES + OPERATING ACTIVITY + PLN 187 million – EBITDA OF COUNTRIES / INDUSTRY WITHOUT SIGNIFICANT SECTORS AFFECTED BY THE RESTRICTIONS PANDEMIC + 0,8 – NET DEBT / EBITDA + INCREASE OF SALES IN + CONTI
Slide 3: Segment Operating Activities
SEGMENT OPERATING ACTIVITIES 3
Slide 4: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT (PLN million) 2Q 2020 2Q 2019 changes 1-2Q 2020 1-2Q 2019 changes Sales 253,5 192,8 32% 498,6 393,2 27% Doubling EBITDA y/y thanks to domestic 108,5 97,6 11% 226,1 205,5 10% growing sales volumes (reduction foreign 145,1 95,2 52% 272,5 187,7 45% of imports from the regions
Slide 5: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT Volume sales (th of tonnes) / capacity utilisation (%) High level of capacity utilisation, 95% 94% 93% 99% 96% including full utilisation of both BOPP 100% 92% 20 lines - lower sales to the HORECA sector compensated by revenues in other areas of 23,6 23,0 the market 50% 10
Slide 6: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT (PLN million) 2Q 2020 2Q 2019 changes 1-2Q 2020 1-2Q 2019 changes Sales 323,9 341,5 -5% 642,3 667,9 -4% Increase in volume sales by 6% with a 10% lower price of aluminum in domestic 163,1 185,4 -12% 326,0 370,4 -12% PLN foreign 160,8 156,1 3% 316,3 297,5 6% EBITDA 43,4 41,7
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Volume sales (th of tonnes) / capacity utilisation (%) 95% 91% 96% 100% 88% 90% 30 Record production level in the quarter 68% (high level of production capacity utilisation 20 mainly due to effective commercial activities on 50% foreign markets) 19,4 20,8 20,9 20,8 22,0 10
Slide 8: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Activities of foreign companies during the pandemic Alupol LLC, Ukraine: market recovery despite high Covid-19 cases, June – the best month in 2020 AK EMMI, Slovenia: recovery to a full capacity utilisation in June 2020 Grupa Kety Italia Aluminium Kety Deutschland return to
Slide 9: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT (PLN million) 2Q 2020 2Q 2019 changes 1-2Q 2020 1-2Q 2019 changes Sales 383,6 376,4 2% 718,7 705,2 2% Higher sales due to export domestic 229,9 231,9 -1% 443,9 448,6 -1% foreign 153,7 144,5 6% 274,9 256,6 7% EBITDA 74,5 62,4 19% 135,6 108,2 25% EBITDA margin 19,4% 16,5% 18,
Slide 10: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT DOMESTIC SALE • Stable level of current orders. • Persisting uncertainty as to the implementation Crystal Mountain of investments planned for next year in selected sectors: hotels, offices, shopping centers. • Market pressure in the area of prices. Gdynia, Terminal Portowy
Slide 11: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT CAPEX 2020 1-2Q % of (PLN million) FORECAST spendings forecast TOTAL 95 23 24% Optimization of capital expenditure: • modernization of warehouse infrastructure, purchase of machinery, equipment and necessary means of transport • production hall in Opole (13,000 m2) - contra
Slide 12: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 12
Slide 13: Consolidated P&L
CONSOLIDATED P&L PLN million 2Q 2020 2Q 2019 change 1-2Q 2020 1-2Q 2019 change Revenue increase resulting from higher sales volumes Revenues and favourable EUR/PLN 887,8 831,8 +7% 1 716,8 1 610,7 +7% exchange rates EBITDA 187,3 135,5 +38% 332,7 245,6 +35% EBITDA margin 21,1% 16,3% 19,4% 15,2% EBITDA
Slide 14: Cash Flow in the 2nd Quarter
CASH FLOW IN THE 2nd QUARTER Operating cash flow (PLN million) CAPEX (PLN million) 250 100 92 209 200 137 159 117 150 123 144 53 55 46 43 100 30 50 0 0 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Cash flow in 2Q (PLN million) 250 46,8 200 187,3 -20
Slide 15: 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 1,7 1,6 1,8 short - term EUR 1,6 38% 21% 800 1,3 1,2 1,4 1,2 600 1,0 400 786 774 0,8 0,8 727 703 641 0,6 200 460 0,4 PLN long - term 0,2 79% 0 0,0 62% 1Q 2019 2Q 2019 3Q
Slide 16: Summary – Prospects for the 3rd Quarter
SUMMARY – PROSPECTS FOR THE 3rd QUARTER MARKET OPERATIONS FINANCE ENVIRONMENT & INVESTMENTS • INCREASE OF RAW MATERIAL • OPTIMIZATION OF • 2020 FORECAST PRICES vs Q2 CAPACITY UTILISATION MAINTAINED WHILE ENSURING WORK • RECOVERY IN EUROPE, SHORT SAFETY • REFINANCING BANK HORIZON OF ORDERS, CREDITS P
Slide 17: Additional Information
ADDITIONAL INFORMATION VOLUME SALES (thousands of tons) 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Extruded Products Segment 20,8 20,9 15,6 20,8 22,0 Flexible Packaging Segment 16,2 16,0 15,7 23,6 23,0 EBITDA per Segment (PLN million) 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Extruded Products Segment 41
Slide 18: 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