Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q3 2023 Earnings Presentation
23 slides from Grupa Kety Sa's earnings presentation, Oct 19, 2023
Slide 1: Results for the 3rd Quarter 2023
RESULTS FOR THE 3RD QUARTER 2023 DARIUSZ MAŃKO RAFAŁ WARPECHOWSKI PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD MEMBER BOARD MEMBER BOARD MEMBER CEO ALUPOL PACKAGING BOARD OCTOBER 19TH 2023
Slide 2: A good quarter despite a weak market
A GOOD QUARTER DESPITE A WEAK MARKET MARKET OPERATIONS FINANCES ENVIRONMENT AND INVESTMENTS + REDUCING RAW MATERIAL PRICES + STARTING THE INSTALLATION OF + EBITDA: PLN 257 mn / NET (y/y) THE EQUIPMENT IN NEW PROFIT: PLN 181 mn - DEMAND LEVEL BELOW PRODUCTION PLANT OF ASS IN + PAYMENT OF THE 1ST TRAN
Slide 3: Annual forecast increase vs forecast from July 27th
ANNUAL FORECAST INCREASE vs FORECAST FROM JULY 27TH PLN 870 MN PLN 565 MN PLN 1 050 MN +7% + 16 % - 12 % EBITDA NET PROFIT NET DEBT 3
Slide 4: Operating activity of segments
OPERATING ACTIVITY OF SEGMENTS 4
Slide 5: Extruded Products Segment
Extruded Products Segment Aluminium price LME 3M (USD/t) • Fluctuations in aluminum prices during the quarter. Prices are currently falling after a slight rebound at the end of September. • Further reduction in the value of the billet premium (from USD 600/t at the end of June to USD 475/t at the en
Slide 6: Extruded Products Segment
Extruded Products Segment (PLN million) 3Q 3Q change 1-3 Q 1-3 Q change Sales: 2023 2022 2023 2022 • 15% volume increase in Q3 y/y Sales 501,3 610,5 -18% 1 662,5 1 978,3 -16% (mainly to ASS) Domestic 241,7 249,0 -3% 781,5 973,2 -20% • lower revenues mainly due to the International 259,6 361,5 -28% 8
Slide 7: Extruded Products Segment
Extruded Products Segment 45 000 96% 99% 100% 87% 85% 83% 40 000 74% 90% 80% • Lower capacity utilization: 35 000 30 000 64% 70% • increased production capacity from 25 000 60% Q2 23 y/y (up to approx. 110 50% 20 000 40% thousand tonnes per year) 15 000 24 23 23 25 30% • limited demand. 10 000 22,6
Slide 8: Aluminium Systems Segment
Aluminium Systems Segment SITUATION ON THE MARKETS (+) Continued high demand for design services – significant impact of the Green Deal (+) Slowing down the increase in prices of construction Volvo Ecser Węgry materials (+) Receipt of documents approving the fire protection system MB-78EI (Slovenia,
Slide 9: Aluminium Systems Segment
Aluminium Systems Segment 3Q 3Q 1-3 Q 1-3 Q (PLN million) change change 2023 2022 2023 2022 Sales: Sales 639,6 594,3 8% 1 791,2 1 870,5 -4% • 3% increase in volumes y/y Domestic 391,2 357,2 10% 1 074,3 1 137,4 -5% • reduction of price lists in Q3 2023 International 248,4 237,1 5% 716,8 733,0 -2% EBI
Slide 10: Aluminium Systems Segment – 3Q 2023
Aluminium Systems Segment 1 – 3Q 2023 (PLN million) Budget 2023 % of the budget implementation New production plant in Złotów Total investments 147 78 53% Current status: • The facades are 100% complete, aluminum joinery is being installed • The installation of ventilation system has been completed,
Slide 11: Aluminium Systems Segment
Aluminium Systems Segment SKY TWIN – an innovative product - an external roller blind and a screen in one – the first such solution on the market. This compact integration allowed for the creation of a technologically advanced system that provides excellent thermal insulation throughout the entire p
Slide 12: Flexible Packaging Segment
Flexible Packaging Segment Market situation LDPE resin ICIS spot low (EUR/tonę) PP resin ICIS spot low (EUR/tonę) 1 600 1 600 1 410 1 450 1 410 1 390 1 263 1 258 1 268 1230 1058 1 150 1 150 1 150 1 150 1 105 1 150 1 190 1170 1005 1 200 1090 1 200 970 953 974 996 890 920 938 800 800 400 400 wrz22 paź
Slide 13: Flexible Packaging Segment
Flexible Packaging Segment 3Q 3Q 1-3Q 1-3Q Sales: (PLN million) change change 2023 2022 2023 2022 - 6% reduction in volumes (mainly BOPP Sales 287 393 -27% 930 1196 -22% foil), Domestic 147 166 -11% 459 515 -11% - decrease in the unit price of BOPP foil (- International 140 227 -39% 471 681 -31% 40%
Slide 14: Flexible Packaging Segment
Flexible Packaging Segment Homogeneous packaging based on paper, polypropylene and polyethylene Pro-environmental trends in packaging / new projects 14
Slide 15: Flexible Packaging Segment
Flexible Packaging Segment capacity utilisation (%) 100% 89% 85% 86% 30 75% 80% 25 Increase in production capacity utilization 20 to the highest level in 12 months due to 50% 15 the increase in sales volumes in both 10 market segments served. 5 0% 0 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Implementa
Slide 16: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 16
Slide 17: Consolidated Results
CONSOLIDATED RESULTS 3Q 3Q 1-3 Q 1-3 Q PLN million change change Sales: 2023 2022 2023 2022 Sales 1 312,1 1 507,7 -13% 4 023,5 4 656,3 -14% • higher volumes with weakening economic conditions on foreign EBITDA 257,4 253,0 +2% 698,0 871,2 -20% markets EBITDA margin 19,5% 16,7% 17,3% 18,7% • lower pri
Slide 18: Cash Flow
CASH FLOW Operating cash flow (PLN million) CAPEX (PLN million) 150 400 318 298 327 125 300 255 100 95 99 208 75 61 67 62 200 56 50 100 58 25 0 0 2kw 2022 3kw 2022 4kw 2022 1kw 2023 2kw 2023 3kw 2023 2kw 2022 3kw 2022 4kw 2022 1kw 2023 2kw 2023 3w 2023 Net debt decrease in 3Q • High cash from operat
Slide 19: Financial Ratios
FINANCIAL RATIOS Debt maturity structure Debt currency structure Net debt (PLN million)* / net debt/EBITDA ratio 1100 1,2 short PLN; 1,0 40% 74% 0,9 0,9 0,9 1,0 1056 0,8 1016 0,7 900 0,8 931 877 0,6 700 0,4 EUR; 698 0,2 long 24% 653 Pozostałe; 60% 2% 500 0,0 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3
Slide 20: Prospects for Q4 2023
PROSPECTS FOR Q4 2023 MARKET OPERATIONS FINANCES ENVIRONMENT AND INVESTMENTS • STABILIZATION OF • CONTINUATION OF KEY • PAYMENT OF THE SECOND ALUMINUM AND DEVELOPMENT TRANCHE OF DIVIDEND - PETROCHEMICALS PRICES INVESTMENTS INCREASE OF DEBT WITH A SAFE LEVEL OF FINANCIAL • CONTINUING DEMAND AND • MAI
Slide 21: Additional Information
ADDITIONAL INFORMATION 21
Slide 22: Additional Information
ADDITIONAL INFORMATION Volume sales (`000 tons) 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Extruded Products Segment 19,9 16,0 22,0 23,2 23,0 Flexible Packaging Segment 23,3 19,6 22,7 20,7 21,8 Segment’s EBITDA (PLN million) 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Extruded Products Segment 74,7 47,8 76
Slide 23: 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