Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q2 2018 Earnings Presentation
26 slides from Grupa Kety Sa's earnings presentation, 2018
Slide 1: Q2 2018 Earnings Presentation
Q2 2018 EARNINGS PRESENTATION DARIUSZ MAŃKO ADAM PIELA PIOTR WYSOCKI RAFAŁ LECHOWICZ PRESIDENT OF THE BOARD BOARD MEMBER BOARD MEMBER BOARD MEMBER 1
Slide 2: A few words on Q2
A FEW WORDS ON Q2 DARIUSZ MAŃKO PRESIDENT OF THE BOARD 2
Slide 3: The second quarter confirms very good market conditions
THE SECOND QUARTER CONFIRMS A VERY GOOD MARKET CONDITIONS High rate of the sales growth (approx. 12%). Another quarter of growth in the operating profit and EBITDA, by 16% and 14%, respectively. Key investments carried out in accordance with the schedule. 3
Slide 4: Macro factors in the 2nd quarter
MACRO FACTORS IN THE 2nd QUARTER Aluminium prices in USD and PLN 9000 2700 8500 Demand remains high, despite of the political 2450 8000 turmoil (US tariffs on aluminium, US sanctions 2200 against Rusal ) 7500 1950 7000 6500 1700 The cost of aluminum calculated in PLN increased by 10% in the second q
Slide 5: High dynamics of sales
HIGH DYNAMICS OF SALES Sales by segments (PLN million) +13% 750 748,8 600 664,3 450 +10% +13% All segments have achieved very good sales results. 300 327,9 324,8 298,5 287,8 +13% 150 170 150,2 0 EPS ASS FPS Consolidated 2Q 2017 2Q 2018 Geographical structure of sales (PLN million) 800 58,4 The domes
Slide 6: Segments' operating activities
SEGMENTS’ OPERATING ACTIVITIES PIOTR WYSOCKI DARIUSZ MAŃKO RAFAŁ LECHOWICZ BOARD MEMBER PRESIDENT OF THE BOARD BOARD MEMBER 6
Slide 7: Extruded Product Segment – extrusion of even larger quantities
EXTRUDED PRODUCT SEGMENT – „extrusion” of even larger quantities Q2_2018 Q2_2017 yoy 1-2Q_2018 1-2Q_2017 yoy Total sales 327,9 298,5 10% 624,3 571,3 9% Domestic 182,9 165,3 11% 348,3 311,3 12% Export 145,1 133,2 9% 276,0 260,0 6% The volume is higher by 3%. The increase in revenue thanks to better v
Slide 8: Extruded Product Segment – very good situation in all production plants
EXTRUDED PRODUCT SEGMENT – very good situation in all production plants Capacity utilization at the level of 95% - 100%. A new extrusion press, increasing capacity by approx. 15%, will start technological tests in September. In AK Emmi (Slovenia), an increase in revenues by 20% and almost 100% incre
Slide 9: Extruded Product Segment – investment projects
EXTRUDED PRODUCT SEGMENT – investment projects Estimated Spendings Project Project total Spendings spendings in beyond (PLN million) value after 2Q 2018 2018 Production hall AAP (continuation) 12,3 1,6 1,4 0,0 Extrusion press – soft alloys 70 0 35,5 15,9 5,1 Extrusion press – hard alloys 54,4 39,6 1
Slide 10: Aluminium Systems Segment – successful quarter, good prospects
ALUMINIUM SYSTEMS SEGMENT– successful quarter, good prospects Q2_2018 Q2_2017 yoy 1-2Q_2018 1-2Q_2017 yoy Total sales 324,8 287,8 13% 589,7 522,9 13% Domestic 204,1 167,0 22% 364,3 310,1 17% Export 120,7 120,8 0% 225,4 212,7 6% The market situation is still good. Sales in the current quarter on the
Slide 11: Aluminium Systems Segment – projects in progress
ALUMINIUM SYSTEMS SEGMENT – projects in progress Poland – Mennica Legacy Tower Czech Republic – Great Britain – Nova Zbrojovka Norton Street Great Britain – USA – 125 Greenwich Ireland - Centre Parcs Outwood Wharf 11
Slide 12: Aluminium Systems Segment – projects in progress
ALUMINIUM SYSTEMS SEGMENT – projects in progress Great Britain – China, Shanghai - a shopping and Belgium – Onyx-Belgium 28-30 Addiscombe Grove recreation complex Ukraine, Kiev – A52 Great Britain – Mongolia – Khann Nottingham University 12
Slide 13: Aluminium Systems Segment – investment projects
ALUMINIUM SYSTEMS SEGMENT– investment projects Project Estimated Spendings after Spendings beyond Project total value (PLN million) spendings in 2018 2Q 2018 R&D Center 33,0 26,0 7,1 6,0 Vertical powder coating line 15,5 8,5 0,0 7,0 Production hall (Opole) 11,0 5,0 0,0 6,0 Main projects total 59,5 3
Slide 14: Flexible Packaging Segment – best half-year results in history
FLEXIBLE PACKAGING SEGMENT – the best half-year results in history Sales revenues (PLN million) EBITDA (PLN million) 2Q 2018 vs 2Q 2017 2Q 2018 vs 2Q 2017 200,0 40 + 13% 170,0 + 10% 150,2 29,8 30 27,1 100,0 20 2Q2017 2Q2018 2Q2017 2Q2018 Sales revenues (PLN million) EBITDA (PLN million) 1H 2018 vs 1
Slide 15: Flexible Packaging Segment – main financial data
FLEXIBLE PACKAGING SEGMENT – main financial data for the quarter and half- year during last three years 2Q’16 2Q’17 2Q’18 1H’16 1H’17 1H’18 Sales volume (`000 tonnes) 7,6 12,5 14,6 15,6 23,6 29,8 Sales revenues (PLN million) 116,9 150,2 170,0 239,1 297,7 348,4 EBITDA (PLN million) 24,0 27,1 29,8 47,
Slide 16: Flexible Packaging Segment – raw material prices
FLEXIBLE PACKAGING SEGMENT – raw material prices 1H’17 2H’17 1H’18 1H’18/1H’17 PP (ICIS) EUR/t 1 315 1 305 1 375 + 5% PE (ICIS) EUR/t 1 510 1 430 1 440 - 4% Aluminium (LME) USD/t 1 885 2 070 2 215 + 18% Cellulose (PIX) USD/t 835 925 1 110 + 33% PET (PCI) EUR/t 2 000 2 065 2 200 + 10% Glues - MDI (IC
Slide 17: Flexible Packaging Segment – directions of development
FLEXIBLE PACKAGING SEGMENT – directions of development of flexible packaging ??? In 2016/2017 the largest clients of flexible packaging, intensively considered two scenarios for the development of the industry, in the context of pro-environmental EU regulations ??? ??? Packaging based on biodegradab
Slide 18: Flexible Packaging Segment – investment projects
FLEXIBLE PACKAGING SEGMENT – investment projects Project Project total Estimated Spendings after Spendings (PLN million) value spendings in 2018 2Q beyond 2018 Second BOPP production line 110 mln zł* 42,6 2,8 55,5 Investment contingency reserve 5,4 1,1 6 Other (minor projects) 1,8 0,5 CAPEX total 49
Slide 19: Consolidated Results
CONSOLIDATED RESULTS ADAM PIELA BOARD MEMBER 19
Slide 20: Operating profit – reflects good market condition
OPERATING PROFIT – reflects good market condition PLN million Q2 2018 Q2 2017 yoy 1-2Q 18 1-2Q 17 yoy Revenues 748,8 664,3 +13% 1 423,6 1 265,8 +12% Operating profit 94,5 81,4 +16% 169,0 151,2 +12% margin 12,6% 12,3% 11,9% 11,9% EBITDA 126,4 110,9 +14% 231,5 210,4 +10% margin 16,8% 16,6% 16,2% 16,5%
Slide 21: Cost increasement under control
COST INCREASEMENT UNDER CONTROL PLN million Q2 2018 Q2 2017 yoy 1-2Q 2018 1-2Q 2017 yoy Sales revenues 748,8 664,3 +13% 1 423,6 1 265,8 +12% Total operating costs, including: 659,3 600,5 +10% 1 279,1 1 156,8 +11% Depreciation 31,9 29,5 +8% 62,4 59,2 +6% Raw materials, Energy, cost of goods sold 454,
Slide 22: Strong cash flow from operating activity despite working capital growth
STRONG CASH FLOW FROM OPERATING ACTIVITY DESPITE THE WORKING CAPITAL GROWTH Working Capital (PLN million) PLN million 2Q_2017 3Q_2017 4Q_2017 1Q_2018 2Q_2018 +12% yoy Working Capital 716 726 697 748 800 900 Inventories 429 437 458 476 497 800 Receivables 531 543 475 531 583 716 726 748 Liabilities 2
Slide 23: Stable financing
STABLE FINANCING Bank debt (PLN million) 750 469,2 490,1 500 482,3 Increase in debt compared to last year resulting from the need 282,4 340,9 to finance a significant investment program and working capital. 250 179,4 241,0 152,3 146,9 165,2 0 2Q_2017 3Q_2017 4Q_2017 1Q_2018 2Q_2018 Net debt at PLN 5
Slide 24: Summary
SUMMARY Excellent financial results. Optimistic prospects for the second quarter. The Management maintains the forecast of results published at the beginning of the year. 24
Slide 25: Supplementary information
SUPPLEMENTARY INFORMATION VOLUME SALES (thousands of tons) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Extruded Products Segment 19,2 19,8 16,3 18,3 19,8 Flexible Packaging Segment 12,5 13,6 13,7 15,2 14,6 EBITDA per Segment (PLN million) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Extruded Products Segment
Slide 26: 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