Fabryka Farb I Lakierow Sniezka S.a. · GPW:SKA
Fabryka Farb I Lakierow Sniezka — Q1-3 2024 Earnings Presentation
46 slides from Fabryka Farb I Lakierow Sniezka's earnings presentation, Nov 21, 2024
Slide 1: Performance presentation of the Śnieżka Group for Q1-3 of 2024
Performance presentation of the Śnieżka Group for Q1-3 of 2024 21 November 2024
Slide 2: Agenda
SNIEZKA Introduction p.3 Enclosures p. 23-38
Slide 3: Introduction
Introduction ▪ The 8.1% decline in the Group's revenues compared to the previous year in the period Q1-3 2024 was mainly due to the decrease in the sales volume in the decorative paints market. The latest data indicate that this decline has slowed to single-digit levels. ▪ The current market situati
Slide 4: Agenda
SNIEZKA Environment p. 5-7 Enclosures p. 23-38
Slide 5: Macro 1/3 (GDP in major markets)
Macro 1/3 (GDP in major markets) Poland ▪ According to the flash estimate of the Central Statistical Office, Quarterly gross domestic product dynamics y/y (in %, seasonally Polish GDP in Q3 of 2024 recorded an increase of 2.7% y/y. The National Bank of Poland in its November inflation and GDP unadju
Slide 6: Macro 2/3 (inflation across the key markets)
Macro 2/3 (inflation across the key markets) Consumer price index in the first nine months of 2024 (%) January February March April May June July August September PL HU UA Poland: inflation increase from 3.9% in January to 4.9% in September Hungary: inflation decrease from 3.8% in January to 3.0% in
Slide 7: Macro 3/3 (EUR/PLN, USD/PLN, HUF/PLN)
Macro 3/3 (EUR/PLN, USD/PLN, HUF/PLN) EUR AND USD QUOTATIONS AGAINST PLN HUF QUOTATIONS AGAINST PLN 7
Slide 8: Agenda
Agenda Performance p. 9-19 8
Slide 9: Performance summary
Performance summary PLN 647.7 mln PLN 126.5 mln PLN 67.4 mln of revenues (- of EBITDA of net profit 8.1% y/y) (-12,8% y/y) (-18.3% y/y) a demand decline mainly as a result a decline in revenues primarily as a consequence of falling volumes, rising wage costs and the of demanding market conditions ef
Slide 10: Performance summary
Performance summary CORE RESULTS KEY INSIGHTS Revenues (in PLN mln) -8,1% ▪ Decline in revenues observed in key markets (PL, PL HU, UA) GROUP’S REVENUES HU UA ▪ Strategic objective: PLN 1.1 billion of consolidated PLN 647.7 million (-8.1% y/y) Rest revenue in 2028 Total 2022-9M 2023-9M 2024-9M 2028f
Slide 11: The Śnieżka Group’s key markets
The Śnieżka Group’s key markets MARKET SIZE MARKET SHARES KEY INSIGHTS (in terms of value) +6% -2% ▪ Inflation and the premiumization trend 100% 2 811 2 846 2 984 2 119 2 071 that have been present on the Polish In terms of value (PLN million) market for several years support the Konkurencja market'
Slide 12: The position of Śnieżka Group brands in key markets
The position of Śnieżka Group brands in key markets Bar charts - sustained knowledge (source: internal research, 2023). PAINTS FOR INTERIOR ENAMELS PRODUCTS FOR WOOD Donut charts – share of Śnieżka brands in the category, by value (GfK tracking panel sell out 8 months 2024)*. WALLS AND CEILINGS DECO
Slide 13: Summary
Summary CONSOLIDATED REVENUES IN THE GROUP CURRENCY KEY INSIGHTS (PLN mln) % share in the -4,3% Group’s revenues ▪ Decrease in sales revenues on Group’s key markets. Total decrease by 8.1% (PLN 57.4 mln). ▪ The presented revenue decrease is greater due to exchange rate differences and Poland present
Slide 14: Communication activity - Poland
Communication activity - Poland COMMUNICATION GOALS: ▪Follow-up of building mental links and mental accessibility of the Magnat and Śnieżka brands ▪Improvement of brand perception in the area of expertise and inspiration (Magnat) and competence in colours (Śnieżka) ▪Maximizing reach within selected
Slide 15: Communication activity - Poland
Communication activity - Poland COMMUNICATION GOALS: ▪Follow-up of building mental links and mental accessibility of the Magnat and Śnieżka brands ▪Improvement of brand perception in the area of expertise and inspiration (Magnat) and competence in colours (Śnieżka) ▪Maximizing reach within selected
Slide 16: Communication activity - Hungary
Communication activity - Hungary COMMUNICATION GOALS: ▪Building the premium paint segment by investing in the Magnat brand in the digital channel ▪Maximizing reach within selected target groups for individual brands ▪Support in wide-reaching media and digital for the entire portfolio of the Poli-Far
Slide 17: Communication activity - Hungary
Communication activity - Hungary COMMUNICATION GOALS: ▪Building the premium paint segment by investing in the Magnat brand in the digital channel ▪Maximizing reach within selected target groups for individual brands ▪Support in wide-reaching media and digital for the entire portfolio of the Poli-Far
Slide 18: Communication activity - Ukraine
Communication activity - Ukraine COMMUNICATION GOALS: ▪Building the premium paint segment by investing in the Magnat brand in the digital and instore channel ▪Maximizing reach within selected target groups for individual brands ▪Promoting the Śnieżka brand as a proven expert in the category of inter
Slide 19: Communication activity - Ukraine
Communication activity - Ukraine COMMUNICATION GOALS: ▪Building the premium paint segment by investing in the Magnat brand in the digital and instore channel ▪Maximizing reach within selected target groups for individual brands ▪Promoting the Śnieżka brand as a proven expert in the category of inter
Slide 20: Revenue structure - product categories
Revenue structure - product categories (in PLN ‘000) Q1-3 2023 Q1-3 2024 change (y/y) STRUCTURE OF THE GROUP'S SALES REVENUES BY PRODUCT CATEGORY IN Q1-3 OF 2024 SALES REVENUES OF THE ŚNIEŻKA GROUP BY PRODUCT CATEGORIES Decorative products Decorative products 570 391 541 726 -5.0% 83,7% Construction
Slide 21: P&L (key items): Q1-3 2024
P&L (key items): Q1-3 2024 The Śnieżka Group in Q1-3 of 2024 generated a consolidated Net profit attributable to shareholders of the parent company net profit of PLN 67,409 thousand, i.e. 18.3% lower than in the amounted to PLN 64,643 thousand (a decrease by 16.1% y/y). corresponding period of the p
Slide 22: P&L (key items): Q3 2024
P&L (key items): Q3 2024 In Q3 of 2024 the Śnieżka Group generated a consolidated Net profit attributable to shareholders of the parent company net profit of PLN 35,692 thousand, i.e. 13.3% lower than in the amounted to PLN 34,617 thousand (a decrease by 10.5% y/y). corresponding period of the previ
Slide 23: Cash flow
Cash flow THE ŚNIEŻKA GROUP’S CASH FLOWS IN Q1-3 OF 2024 Negative cash flows in Q1-3. in the amount of PLN 5,466 thousand 76 064 (adjusted for exchange differences). Cash and cash equivalents amounted to PLN 60,199 thousand at the end of the reporting period. ▪Negative cash flows from investing acti
Slide 24: Balance
SNIEZKA GROUP. (in PLN min) 30.09.2023 change (y/y) 558.1 556.0 -0.4% 104.9 107.6 2.5% 108.0 117.0 8.3% Equity 382.8 390.4 2.0% Trade and other liabilities 118.0 104.2 -11.7% As at September 30, 2024 the value of assets of the Sniezka Group amounted to PLN 843,234 thousand, which accounts for an inc
Slide 25: Debt
Debt THE ŚNIEŻKA GROUP’S LIQUIDITY AND DEBT RATIOS 25
Slide 26: Dividend
Dividend ( in PLN ‘000) PLN 544,221 thousand Total value of dividend paid since the debut on the WSE 26
Slide 27: Agenda: Enclosures
SNIEZKA GROUP. Enclosures p. 23-38
Slide 28: Medium-term perspective
Medium-term perspective The main external factors affecting the Group's performance in Main internal factors affecting the Group's the coming quarters will be: performance: ▪Development of the product offer in current sales channels. Macroeconomic: Geopolitical: ▪Growth rate of Gross Domestic ▪Armed
Slide 29: Agenda: Enclosures
Agenda Enclosures p. 22-38 29
Slide 30: Mission and Vision
SNIEZKA GROUP MISSION AND VISION MISSION We believe COIOUrS matter. Our values: We want to VISION! e inspire with colours, < Tae @ Innovation create space, build emotions. *, Business QO efficiency
Slide 31: Strategic objectives (1/2)
Strategic objectives (1/2) Together with the publication of ▪ Further increasing recognition of key brands: the annual report, a decision was Śnieżka, Magnat, Polifarbe, Vidaron, so that they made to announce new strategic can become the first three brands indicated by objectives of the Śnieżka Grou
Slide 32: Strategic objectives (2/2)
Strategic objectives (2/2) Assumptions: ▪The adoption of the objectives is based on the assumption that the conditions for conducting business activities will remain stable, which includes Not only will their legal, tax and administrative regulations in Śnieżka's implementation increase key markets.
Slide 33: Selected financial information
Selected financial information CONSOLIDATED STANDALONE (in PLN ‘000) As at/period As at/period (in PLN ‘000) As at/period As at/period 9 months ended 9 months ended 9 months ended 9 months ended 30 September 2023 30 September 2024 30 September 2023 30 September 2024 Net sales revenues Net sales reve
Slide 34: Seasonality
Seasonality SEASONALITY OF SALES OF THE ŚNIEŻKA GROUP IN POLAND (in PLN mln) 2020 2021 2022 2023 2024 ▪ Seasonality is observed in the Śnieżka Group’s activities, which stems from the intensity of renovation work performed at different times of the year. The greatest interest in the work in question
Slide 35: Foreign markets
Foreign markets The markets where our companies are based Other foreign markets where we actively operate: Moldova Slovakia Romania Kazakhstan Armenia Lithuania Georgia Czech Republic Kyrgyzstan Serbia 35
Slide 36: Our locations
Our locations Warsaw Brzeźnica, Pustków, Lubzina, Zawada Radom BELARUS 7 production facilities POLAND 4 countries, where our offices, facilities and warehouses are located UKRAINE Production facilities HUNGARY Offices Zhodino near Minsk Logistics centre Bócsa Yavoriv 36
Slide 37: Product categories
Product categories PREMIUM VALUE FOR MONEY WALLS WOOD METAL FACADES PUTTIES 37
Slide 38: Brand structure
Brand structure SUB-BRANDS: SUB-BRANDS: SUB-BRANDS: SUB-BRANDS: CERAMIC PLATINUM RADACH EKO, EKO PLUS #KOLORLOVE INNTALER FOR GATES AND FENCES SUPERMAL CREATIVE WHITE CELLKOLOR FOR CONCRETE ACRYL PUTZ BE EKO BOROKA DIRECTLY TO RUST BARWY NATURY (COLOURS OF NATURE) GRUNT (PRIMER) NON REFLEX CHLORINAT
Slide 39: Our key brands 1/2
Our key brands 1/2 The core brand of the Group, which Products for the most demanding An umbrella brand, which offers offers a wide range of products. Its customers who value quality and a wide portfolio of products for portfolio is comprised of products for style. The portfolio of this the protecti
Slide 40: Our key brands 2/2
Our key brands 2/2 A top quality brand for wood A brand specializing in the production A brand of facade products protection and decoration. The of decorative products (enamels for based on decorative plasters brand's offer has been prepared for metal protection and decoration) and and facade paints
Slide 41: The key market: Poland
The key market: Poland Decorative paint products – use* of purchased paints for walls and ceilings will 71% be used for renovation previously used flats/houses The main players operating on the market of paint products and wood protection agents in Poland (which together account for over 80% of reve
Slide 42: Market in Poland: other key manufacturers
Market in Poland: other key manufacturers A manufacturer of paint, varnishes, chemicals, optical products, glass and Dutch manufacturer of paints and glass fibres, listed on the New York Stock varnishes and special-purpose Exchange. chemicals, listed on Euronext Amsterdam. The core brands are as fol
Slide 43: Raw materials for the paint production
Raw materials for the paint production Resins - natural or synthetic substances that bind pigments and fillers in paint with each other and with the substrate. They ensure paint properties such as: wash and scrub resistance and gloss. Generally, the higher the resin content, the higher the quality a
Slide 44: Selected awards and distinctions
Selected awards and distinctions European Coatings ESG POLITYKA EcoVadis Gold Medal ranking White Leaf Fabryka Farb i Lakierów Śnieżka SA was For the seventh time, the Śnieżka Group has assessed for its activities in the area of been ranked among the largest and best- FFiL Śnieżka SA made its debut
Slide 45: Disclaimer
Disclaimer Reading the content of this Presentation ("Presentation") or participation in a meeting at which this Presentation is displayed or discussed, shall be equal to the acceptance of the content of the following disclaimer. This Presentation has been prepared by Fabryka Farb i Lakierów Śnieżka
Slide 46: Thank you
Thank you Fabryka Farb i Lakierów Śnieżka SA the company’s seat: Warsaw, ul. Chłodna 51 mailing address: 39-207 Brzeźnica, ul. Dębicka 44 Aleksandra Małozięć Corporate Communication and ESG Director aleksandra.maloziec@sniezka.com phone: +48 667 660 399 46
Fabryka Farb i Lakierów Śnieżka — Q1-3 2024 Earnings Presentation on 6ix