Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q3 2017 Earnings Presentation
17 slides from Grupa Kety Sa's earnings presentation, 2017
Slide 1: Q3 2017 Earnings Presentation
Q3 2017 EARNINGS PRESENTATION DARIUSZ MAŃKO CHAIRMAN OF THE BOARD & CEO ADAM PIELA BOARD MEMBER & CFO
Slide 2: Market maintains positive picture
MARKET MAINTAINS POSITIVE PICTURE High sales growth both in Poland (11%) and in foreign markets (15%). The increase in operating profit and EBITDA by 9% despite record base of the last year New investments with a combined potential of approximately PLN 210 m of additional revenues. 2
Slide 3: Macro factors in the 3rd quarter 2017
MACRO FACTORS IN THE 3rd QUARTER 2017 Aluminium price 3M in USD and PLN The increase in average aluminium prices by 24% in 2200 8 500 USD and 16% in PLN - the greatest impact on 2100 8 000 revenues and working capital of the Extruded 2000 Products Segment 1900 7 500 1800 7 000 1700 6 500 An average
Slide 4: Revenue in the third quarter
REVENUE IN THE THIRD QUARTER Segment structure of revenues (PLN m) Flexible Packaging Segment - the clear leader in 800 + 13% terms of revenue growth. 600 In the Extruded Products Segment, solid growth - 400 + 12% + 9% 634 716 needed new capacity for its continuation. + 24% 200 274 305 293 320 131 1
Slide 5: Extruded Products Segment - another record of production
EXTRUDED PRODUCTS SEGMENT - another record of production was defeated Q3_2017 Q3_2016 chg 3Q_2017 3Q_2016 chg Sales 305,0 273,6 11% 876,3 701,0 25% Domestic 165,3 153,9 7% 476,6 404,3 18% Export 139,7 119,8 17% 399,7 296,7 35% Good prosperity both in the domestic market and in export. Rises from 10
Slide 6: Extruded Products Segment – Aluminium Kety Emmi
EXTRUDED PRODUCTS SEGMENT – Aluminium Kety Emmi location of the company's customers Sales and EBITDA (PLN m) 80 80,0 10,0 Systematic work on acquiring new customers - completion of preparations 8,0 for delivery of components for the automotive industry (Mercedes G-class) 60 40 4,6 6,0 Still consider
Slide 7: Aluminum Systems Segment - a successful quarter, good prospects
ALUMINUM SYSTEMS SEGMENT - a successful quarter, good prospects Assortment structure of sales (%) Q3_2017 Q3_2016 chg 3Q_2017 3Q_2016 chg systems roller shutters other Sales 320,1 293,0 9% 843,0 802,0 5% 100 5 5 Domestic 191,1 172,5 11% 501,3 463,6 8% 29 30 Export 129,0 120,4 7% 341,7 338,3 1% 75 50
Slide 8: Flexible Packaging Segment - good results, new investments
FLEXIBLE PACKAGING SEGMENT - good results + good prospects = new investments Q3_2017 Q3_2016 chg 3Q_2017 3Q_2016 chg Sales 161,6 130,7 24% 459,4 369,8 24% Domestic 90,2 75,7 19% 258,2 211,5 22% Export 71,5 55,0 30% 201,2 158,3 27% Very good quarter both in Poland and abroad. Growth in the German, Hu
Slide 9: Flexible Packaging Segment - second BOPP film line
Flexible Packaging Segment - investment in the second line for the production of BOPP film Achieving full capacity utilization in the production of BOPP film. Achieving the target EBIDA margin in the third quarter (ca. PLN 5 m, on ca. PLN 43 m of revenues). The fast growing market of BOPP foil packa
Slide 10: Implementation of major investment projects
IMPLEMENTATION OF MAJOR INVESTMENT PROJECTS Spendings planned Progess after current Comments (PLN m) quartere (%) EXTRUDED PRODUCTS SEGMENT Development of production capacity in contracting phase and collecting 29,1 30% the area of hard-alloys of administrative permits Development of production capa
Slide 11: Maintaining higher than expected dynamics of operating profit
MAINTAINING HIGHER THAN EXPECTED DYNAMICS OF OPERATING PROFIT PLN million Q3 2017 Q3 2016 chg 3Q 2017 3Q 2016 chg Revenues 716,5 633,9 +13% 1 982,3 1 717,1 +15% Operating profit 98,7 90,7 +9% 250,0 232,1 +8% margin 13,7% 14,2% 12,5% 13,4% EBITDA 128,7 117,8 +9% 339,2 310,4 +9% margin 17,9% 18,4% 17,
Slide 12: The costs under control
THE COSTS UNDER CONTROL PLN million Q3 2017 Q3 2016 chg 3Q 2017 3Q 2016 chg Revenues 716,5 633,9 +13% 1 982,3 1 717,1 +15% Total operating costs, including: 640,9 561,5 +14% 1 796,3 1 530,0 +17% Depreciation 30,0 27,1 +10% 89,2 78,2 +14% Raw materials, Energy, cost of goods sold 452,5 383,9 +18% 1 2
Slide 13: Stabilization of cash-flow from operating activity
STABILIZATION OF CASH-FLOW FROM OPERATING ACTIVITY Working capital (PLN m) (PLN m) 3Q_2016 4Q_2016 1Q_2017 2Q_2017 3Q_2017 Working Capital 622 608 676 716 726 750 wzrost o 17% r/r Inventories 365 394 419 429 437 716 726 Receivables 474 415 480 531 543 676 622 608 Liabilities 217 200 223 244 254 500
Slide 14: Stable financing
STABLE FINANCING Bank debt (PLN m) Increase in debt compared to last year resulting from the need to 500 finance a significant investment program and working capital. 333,9 340,3 340,9 400 312,0 282,4 300 Net debt at PLN 391m. 200 Safe net debt / equity ratio (0.3) and net debt / EBITDA (0.9), 100 1
Slide 15: Summary
SUMMARY Very good financial results. Favorable prospects for the coming years and the resulting corrections in the investment plan. The board maintains a forecast of results published at the beginning of the year.
Slide 16: Supplementary information
SUPPLEMENTARY INFORMATION VOLUME SALES (thousands of tons) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Extruded Products Segment 18,8 14,9 17,4 19,2 19,8 Flexible Packaging Segment 8,8 8,7 11,1 12,5 13,6 EBITDA per Segment (PLN m) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Extruded Products Segment 48,0 23
Slide 17: 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