Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q1 2018 Earnings Presentation
26 slides from Grupa Kety Sa's earnings presentation, 2018
Slide 1: Q1 2018 Earnings Presentation
Q1 2018 EARNINGS PRESENTATION DARIUSZ MAŃKO ADAM PIELA PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ PRESIDENT OF THE BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD
Slide 2: A Few Words on Q1
A FEW WORDS ON Q1 DARIUSZ MAŃKO PRESIDENT OF THE BOARD
Slide 3: Solid First Quarter in Accordance with Expectations
SOLID FIRST QUARTER IN ACCORDANCE WITH EXPECTATIONS High rate of growth of the sales revenues both on domestic and foreign markets (approx. 12%). Another quarter of growth of the operating profit and EBITDA, by 7% and 6%, respectively. Key investments carried out in accordance with the schedule. 3
Slide 4: Macro Factors in the 1st Quarter
MACRO FACTORS IN THE 1st QUARTER Aluminium prices in USD and PLN 8400 2400 8000 2200 7600 An increase in the average price of aluminum in USD 2000 in the first quarter of 2018 (yoy) by 17% has been 7200 fully offset by the appreciation of the PLN to USD. 1800 6800 6400 1600 AL. 3M (PLN) AL.3M (USD)
Slide 5: Dynamic Sales Growth in Spite of Polish Zloty Appreciation
DYNAMIC SALES GROWTH IN SPITE OF POLISH ZLOTY APPRECIATION Sales by segments (PLN million) 800 + 12% 600 Very good dynamics of revenues in all segments 400 + 9% + 13% despite stronger zloty. + 21% 602 675 200 273 296 235 265 148 178 0 EPS ASS FPS Consolidated Q1 2017 Q1 2018 Geographical structure o
Slide 6: Segments' Operating Activities
SEGMENTS’ OPERATING ACTIVITIES PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ BOARD MEMBER BOARD MEMBER BOARD MEMBER
Slide 7: Extruded Products Segment - Import duties on aluminium in the USA and sanctions on Rusal
EXTRUDED PRODUCTS SEGMENT - Import duties on aluminium in the USA and sanctions imposed on Rusal and their impact on business SALES PURCHASES Sales to the USA - 0.9% of EPS sales Rusal's share in billet purchases = 7.5% 90% deliveries made based on EXW Kęty Rusal's share in aluminum purchases = 0% S
Slide 8: Extruded Product Segment – market situation is still at a good level
EXTRUDED PRODUCT SEGMENT – market situation is still at a good level Sustainable, very good economic situation on domestic market. Last year's export "drivers" - Germany and Czechia this year flat. Other major markets from 7% to 15% sales increase. Utilisation of domestic production capacities at th
Slide 9: Extruded Product Segment – Aluminium Kety Emmi
EXTRUDED PRODUCT SEGMENT– Aluminium Kety Emmi EMMI - EBITDA (EUR thousand) Relocation of production from Grupa Kęty to Aluminum 600 9,0% Kety EMMI based on specificity of the machinery park of 500 8,0% each plant. 7,0% 400 6,0% 5,0% Cooperation of sales departments - gaining new 300 4,0% projects, i
Slide 10: Extruded Product Segment – Alupol LLC - Ukraine
EXTRUDED PRODUCT SEGMENT– Alupol LLC - Ukraine Capacity utilization at the level of 75 - 80% Improving production efficiency in the first half of the year efficiency in 2017 efficiency in 2018 Month change avg in quarter (kg/h) (kg/h) Jan 883 981 11% 13% Feb 887 1052 19% Mar 949 1036 9% Apr 791 1023
Slide 11: Extruded Product Segment – investment projects
EXTRUDED PRODUCT SEGMENT– investment projects Estimated Spendings Project Project Spendings spendings beyond (PLN million) total value in 1Q in 2018 2018 Production hall AAP (continuation) 12,3 1,6 1,3 0,0 Extrusion press – soft alloys 70 0 40,6 8,3 0,0 Extrusion press – hard alloys 54,4 42,7 3,4 0,
Slide 12: Aluminium Systems Segment - Import duties on aluminium in the USA and Rusal sanctions
ALUMINIUM SYSTEMS SEGMENT - Import duties on aluminium in the USA and sanctions imposed on Rusal and their impact on business SALES PURCHASES Sales to the USA - 5,0% of ASS sales 90% of demand for aluminium profiles covered by EPS The product dedicated to the US market has not An increase of alumini
Slide 13: Aluminum Systems Segment - another successful quarter, good prospects
ALUMINUM SYSTEMS SEGMENT - another successful quarter, good prospects Product mix (%) Q1_2018 Q1_2017 change ready made products Sales 264,6 235,1 13% 8% Domestic 158,9 143,2 11% roller shutters International 105,7 91,9 15% 28% The market situation is still good. Sales in the current quarter on the
Slide 14: Aluminum Systems Segment – information on staff
ALUMINUM SYSTEMS SEGMENT – information on staff AVG NUMBER OF EMPLOYEES IQ 2018 IQ 2017 change Aluminium Systems Segment 2 133 2 052 +4% STAFF TURNOVER RATIO IQ 2018 IQ 2017 change Aluminium Systems Segment 3,6 % 4,1 % -14% Turnover rate below the industry average Unit labor cost increase by 7% New
Slide 15: Aluminium Systems Segment – investment projects
ALUMINIUM SYSTEMS SEGMENT – investment projects Estimated Project Project total Spendings in Spendings spendings in (PLN million) value 1Q beyond 2018 2018 R&D Center 33,0 26,0 5,3 6,0 Verical 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 39,5
Slide 16: Flexible Packaging Segment – successful quarter
FLEXIBLE PACKAGING SEGMENT – succesful quarter Q1_2018 Q1_2017 change Sales 178,4 147,5 21% Domestic 100,3 86,6 16% International 78,1 60,9 28% % of export 44% 41% Main export markets eksportowe PLN million 1Q’2018 1Q’2017 change The Netherlands 19,1 11,1 + 72% Germany 13,5 13,2 + 2% Hungary 7,4 4,9
Slide 17: Flexible Packaging Segment – investment projects
FLEXIBLE PACKAGING SEGMENT– investment projects Estimated Spendings Project Project total Spendings spendings beyond (PLN million) value in 1Q in 2018 2018 Second BOPP line 110,0 42,6 0,6 55,5 Other items 7,2 0,8 Main projects total 110,0 49,8 1,4 55,5 Implementation of the main project (the second
Slide 18: Flexible Packaging Segment – expected continuation of sales increases
FLEXIBLE PACKAGING SEGMENT – expected continuation of sales increases Information on staff 1Q’2016 1Q’2017 1Q’2018 No of employees 632 726 779 Avg cost per emploee (PLN thousand) 6,0 6,4 6,4 Turnover ratio 2% 4% 4% Sales per employee (PLN thousand) 193 203 229 Current capacity utilisation at 80-90 %
Slide 19: Consolidated Results
CONSOLIDATED RESULTS ADAM PIELA BOARD MEMBER
Slide 20: Operating Profit in Accordance with Expectation
OPERATING PROFIT IN ACCORDANCE WITH EXPECTATION PLN million 1Q 2018 1Q 2017 change Revenues 674,8 601,5 +12% Operating profit 74,5 69,8 +7% margin 11,0% 11,5% EBITDA 105,1 99,5 +6% margin 15,6% 16,4% Result on financial activity -5,2 -0,6 interests -2,8 -2,4 fx gains/loses on bank loans -1,4 2,3 oth
Slide 21: Cost Increasement Under Control
COST INCREASEMENT UNDER CONTROL PLN million Q1 2018 Q1 2017 change Revenues 674,8 601,5 +12% Total operating costs, 619,8 556,3 including: +11% Depreciation 30,6 29,7 +2% Raw materials, Energy, +11% cost of goods sold 432,0 387,5 External services 47,5 40,0 +19% Taxes and fees 3,7 3,7 0% Employee be
Slide 22: Strong Cash Flow from Operating Activity Despite the Working Capital Growth
STRONG CASH FLOW FROM OPERATING ACTIVITY DESPITE THE WORKING CAPITAL GROWTH Working Capital (PLN million) PLN million 1Q_2017 2Q_2017 3Q_2017 4Q_2017 1Q_2018 +11% yoy Working Capital 676 716 726 697 748 750 Inventories 419 429 437 458 476 716 726 748 676 697 Receivables 480 531 543 475 531 500 Liabi
Slide 23: Stable Financing
STABLE FINANCING Bank debt (PLN million) Increase in debt compared to last year resulting from the need to 750 finance a significant investment program and working capital. 490,1 482,3 500 340,3 340,9 282,4 Net debt at PLN 583 million. 250 151,7 152,3 146,9 179,4 165,2 0 1Q_2017 2Q_2017 3Q_2017 4Q_2
Slide 24: Summary
SUMMARY Very good financial results. Optimistic prospects for the second quarter. The Management maintains the forecast of results published at the beginning of the year.
Slide 25: Supplementary Information
SUPPLEMENTARY INFORMATION VOLUME SALES (thousands of tons) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Extruded Products Segment 17,4 19,2 19,8 16,3 18,3 Flexible Packaging Segment 11,1 12,5 13,6 13,7 15,2 EBITDA per Segment (PLN million) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 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