Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q3 2019 Earnings Presentation
24 slides from Grupa Kety Sa's earnings presentation, Oct 24, 2019
Slide 1: Results for the 3rd Quarter of 2019
RESULTS FOR THE 3rd QUARTER of 2019 DARIUSZ MAŃKO RAFAŁ WARPECHOWSKI PIOTR WYSOCKI TOMASZ GRELA CHAIRMAN OF THE MEMBER OF THE BOARD MEMBER OF THE BOARD MEMBER OF THE BOARD BOARD 24 October 2019
Slide 2: Record results in the changing environment
RECORD RESULTS IN THE CHANGING ENVIRONMENT • LOWER RAW MATERIAL’S QUOTATIONS MARKET • PLN DEPRECIATION AGAINST FOREIGN ENVIRONMENT CURRENCIES • SIGNS OF SLOWING DEMAND IN EUROPE • HIGHER SALE VOLUMES OPERATIONS • INCREASING SHARE OF EXPORT AND • STRENGTHENING THE LEADER'S POSITION IN INVESTMENTS ALL
Slide 3: Variable macroeconomic and market environment
VARIABLE MACROECONOMIC AND MARKET ENVIRONMENT Aluminum in USD and PLN USD / PLN and EUR / PLN exchange rate 4,7 8 500 zł 7 651 $2 300 4,30 4,32 $2 200 8 000 zł -9 % $2 100 4,4 7 500 zł 3,89 6 949 $2 000 4,1 3,70 +5 % 7 000 zł $1 900 $1 800 3,8 6 500 zł $1 700 3,5 6 000 zł $1 600 AL. (PLN) AL. (USD)
Slide 4: Segment operating activities
SEGMENT OPERATING ACTIVITIES 4
Slide 5: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT 1-3Q 1-3Q (PLN million) 3Q 2019 3Q 2018 change 2019 2018 change • Lower sales revenues due to a Sales 329 352 -6% 997 976 2% decline in aluminum prices on domestic 179 187 -4% 550 536 3% global markets export 150 165 -9% 447 441 1% Sales breakdown by sectors 48% 51% • Stron
Slide 6: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Volume sales (`000 tons) +1% 20,9 20,6 • Increase in volume sales by 1% y/y and a repeat of the record level of production from the second quarter of this year 3Q 2018 Kategoria 1 3Q 2019 Production capacity* (`000 tons) and capacity • Total production capacity increase in
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT The total The amount Implementati The amount PLN million amount of planned for on for 2019 planned the project 2019 after 3Q after 2019 Counter-rotating press for hard alloys + ingot scaleer 45,0 9,5 7,7 0,0 Anodizing line – the second unit 45,1 13,5 4,3 29,5 Cogeneration 8
Slide 8: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Example of activities increasing the efficiency of production processes HAND WORK AUTOMATIC WORK Efficiency : 75 pieces/h Efficiency : 120 pieces/h Cost : - 43% Efficiency: 150 pieces/h Wydajność: 270 pieces/h Cost : - 45% 8
Slide 9: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT (PLN million) 3Q 2019 3Q 2018 change 1-3Q 2019 1-3Q 2018 change • Significant increase in revenues in Sales 403 360 12% 1 108 950 17% the third quarter, mainly due to high domestic 244 233 5% 693 597 16% export dynamics export 158 127 24% 415 353 18% Sales breakdown by produ
Slide 10: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT Test completion of the standard systems for the US and Canada markets New prestige contract acquired – 185 Broadway New York 185 Broadway
Slide 11: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT Increased sales of systems in Poland by 13 % in 3Q (yoy) Cavatina Hall – Bielsko-Biała Art Norblin - Warszawa Final stage of development the biggest building contracts in Poland ( Mennica i Posejdon) Sales decreased by PLN 13 million in comparison to the 3rdQ 2018 Posejdon S
Slide 12: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT Dynamic growth in export sales in Oxygen Tower (Manchester/UK) River Plaza (Ułan Bator/MON) the 3rd Q (24%) Significant part of energy saving solutions in sales Kuopio Gate Kandinsky (Odessa/UA) (Kuopio/FI)
Slide 13: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT The total The amount Implementati The amount PLN million amount of planned for on for 2019 planned the project 2019 after 3Q after 2019 R&D Centre 35,5 8,4 5,8 0 Vertical powder coating line + hall 17,4 8,9 7,7 0 Opole production hall 28,0 8,7 0 28,0 Main projects total 80,9
Slide 14: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT ALUPROF FOR THE 11TH TIME WITH THE TITLE OF THE WOODWORK MARKET LEADER Zrównoważony rozwój – Aluprof partnerem Green Building Symposium Innowacje – Aluprof partnerem I Wystawy Innowacji podczas Warsaw Build CONSTRUCTION BRAND Proekologiczne Budownictwo – III Miejsce w OF THE
Slide 15: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT 1-3Q 1-3Q (PLN million) 3Q 2019 3Q 2018 change 2019 2018 change • Significant dynamics of export Sales 191 179 7% 584 527 11% sales in the third quarter domestic 96 98 -3% 301 288 5% export 96 80 20% 283 240 18% Sales breakdown by sectors 37% 35% • Increasing product 29% 2
Slide 16: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT Volume sales (`000 tons) 7,3 +5% 7,7 • Steady growth in both areas of activity – production of unprinted BOPP films as +7% 7,5 8,0 well as production of specialized multi- 3Q 2018 3Q 2019 layer flexible packaging with print packaging BOPP films Production capacity* (`000 t
Slide 17: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT The amount The amount Implementation % planned after PLN million planned for for 2019 after 3Q implementation 2019 2019 BOPP line – second unit 79,6 70,9 89% 2,6 Other 4,7 4,1 87% 0 Total 84,3 75,0 89% 2,6 • Launch of the second BOPP film production line at the end of the
Slide 18: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 18
Slide 19: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 3Q 3Q 1-3Q 1-3Q change change PLN million 2019 2018 2019 2018 Revenues 839 812 +3% 2 450 2 235 +10% The increase in revenues resulting from higher EBITDA 161 140 +15% 406 372 +9% volumes EBITDA margin 19,1% 17,2% 16,5% 16,6% Improvement of EBITDA profit of all segments
Slide 20: Cash Flows in the 3rd Quarter
CASH FLOWS IN THE 3rd QUARTER Operating cash-flow (PLN million) CAPEX (PLN million) 200 200 159 137 123 100 89 84 100 92 64 68 53 46 0 0 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Cash flow in the 3rd Q (PLN million) 180 7 161 150 -9 120 90 -46 3 49 60 30 -67 0 E
Slide 21: Safe Level of Financial Indicators
SAFE LEVEL OF FINANCIAL INDICATORS Net debt (PLN million) and net debt/EBITDA Maturity structure Currency structure ratio 1000 1,7 1,7 1,6 1,8 long term EUR 1,6 1,6 800 1,3 1,4 36% PLN 17% 1,2 83% 600 1,0 0,8 400 786 774 727 683 0,6 634 200 0,4 0,2 short term 0 0,0 64% 3Q 2018 4Q 2018 1Q 2019 2Q 201
Slide 22: Prospects for the 4th Quarter 2019
PROSPECTS FOR THE 4th QUARTER 2019 MARKET • STABILIZATION OF RAW MATERIAL PRICES ENVIRONMENT • „DIFFICULT” MARKET • 4th QUARTER RESULTS AFFECTED BY OPOPERATIONS SEASONALITY AND MARKET PRESSURE INVESTMENTS • POSTPONED OF INVESTMENT EXPENSES FOR ANOTHER YEAR • MANTAINED 2019 FORECAST FINANCE • 2nd TRA
Slide 23: Additional Information
ADDITIONAL INFORMATION VOLUME SALES (thousands of tons) 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Extruded Products Segment 20,6 16,8 19,4 20,9 20,9 Flexible Packaging Segment 14,9 14,7 16,2 16,0 15,8 EBITDA per Segment (PLN mn) 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Extruded Products Segment 48,7 25
Slide 24: 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