Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q2 2019 Earnings Presentation
33 slides from Grupa Kety Sa's earnings presentation, 2019
Slide 1: Q2 2019 Earnings Presentation
Q2 2019 EARNINGS PRESENTATION DARIUSZ MAŃKO PIOTR WYSOCKI RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD BOARD MEMBER CHAIRMAN OF THE BOARD ALUPOL PACKAGING S.A. 1
Slide 2: A few words on Q1
A FEW WORDS ON Q1 DARIUSZ MAŃKO CHAIRMAN OF THE BOARD 2
Slide 3: The second quarter still excellent
THE SECOND QUARTER STILL EXCELLENT High revenue growth rate (11%). Operating profit and EBITDA increase by 7% as expected. Another excellent quarter in terms of cash flow (over PLN 130 million of operating inflow) Outlook for the third quarter is stable. 3
Slide 4: Macro factors in the 2nd quarter
MACRO FACTORS IN THE 2nd QUARTER Al in USD and PLN 3000 9000 8500 2500 8000 The average aluminum price converted to PLN fell 7500 by 14% yoy in the second quarter. 2000 7000 6500 1500 6000 AL (USD) AL (PLN) EUR/PLN and USD/PLN Increase in average USD / PLN exchange rate in the 4,6 second quarter by
Slide 5: High dynamics of sales
HIGH DYNAMICS OF SALES Sales by segments (PLN mn) +11% 800,0 748,8 600,0 All segments achieved very good sales results. +4% +16% 400,0 +13% 376,4 328,0 341,5 324,8 200,0 192,8 170,0 0,0 SWW SSA SOG Skonsolidowane 2Q 2018 2Q 2019 Geographical structure of sales (PLN mn) 900 + 8% The domestic market a
Slide 6: Extruded Product Segment
EXTRUDED PRODUCT SEGMENT PIOTR WYSOCKI BOARD MEMBER 6
Slide 7: Extruded Product Segment – record sales in the 2nd quarter
EXTRUDED PRODUCT SEGMENT– record sales in the 2nd quarter Q2_2019 Q2_2018 chg 1-2Q_2019 1-2Q_2018 chg Sales 341,5 327,9 4% 667,9 624,3 7% Domestic 185,4 182,9 1% 370,4 348,3 6% Export 156,1 145,1 8% 297,5 276,0 8% 25 000 20 000 15 000 10 000 5 000 0 1 Q 2017 2 Q 2017 3 Q 2017 4 Q 2017 1 Q 2018 2 Q 2
Slide 8: Extruded Product Segment – business in industries with higher margins
EXTRUDED PRODUCT SEGMENT– development of business activity in industries with higher margins 2Q 2019 2Q 2018 2Q 2017 8
Slide 9: Extruded Product Segment – important projects
EXTRUDED PRODUCT SEGMENT– importand projects New contracts on the doorsteps for a special, luxury edition of the Mercedes G series. 9
Slide 10: Extruded Product Segment – increasing production efficiency projects
EXTRUDED PRODUCT SEGMENT– increasing production efficiency projects Optimization of the extrusion parameters robotic nests on the production plant Robotization of selected processes and activities of aluminium components implementation of a cooperating robot YASKAWA HC10. 10
Slide 11: Extruded Product Segment – investment projects
EXTRUDED PRODUCT SEGMENT – investment projects The total The amount Implementati The amount Position amount of planned for on for 2019 planned (PLN mn) the project 2019 after 1Q after 2019 Counter-rotating press for hard alloys + ingot scaleer 45,0 9,5 6,8 0,0 Anodizing line – the second unit 45,1 1
Slide 12: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT DARIUSZ MAŃKO CHAIRMAN OF THE BOARD 12
Slide 13: Aluminium Systems Segment – very good quarter
ALUMINIUM SYSTEMS SEGMENT– very good quarter Q2_2019 Q2_2018 chg 1-2Q_2019 1-2Q_2018 chg Sales 376,4 324,8 16% 705,2 589,7 20% Domestic 231,9 204,1 14% 448,6 364,3 23% Export 144,5 120,7 20% 256,6 225,4 14% High sales dynamics on export markets (the largest increases on the following markets: the Ne
Slide 14: Aluminium Systems Segment – US market
ALUMINIUM SYSTEMS SEGMENT– US market Completion of the second phase of testing of the standard systems for the US and Canada market New projects in the USA: • B4 Pacific Park • 1808 Pacific Park B15 14
Slide 15: Aluminium Systems Segment – investment projects
ALUMINIUM SYSTEMS SEGMENT– investment projects The total The amount Implementation The amount Position amount of planned for for 2019 planned after (PLN mn) the project 2019 after 2Q 2019 R&D Centre 35,5 8,4 4,9 0 Vertical powder coating line + hall 17,4 8,9 6,5 0 Opole production hall 28,0 8,7 0 19
Slide 16: Aluminium Systems Segment – investment projects
ALUMINIUM SYSTEMS SEGMENT– investment projects Completed investment in the construction of the R&D center in Ogrodzona 16
Slide 17: Aluminium Systems Segment – investment projects
ALUMINIUM SYSTEMS SEGMENT – investment projects On 03-05.07, acceptance tests were carried out along with training of laboratory employees. - tests completed successfully Chamber for leakage tests Fire resistance test stand 17
Slide 18: Aluminium Systems Segment – selected projects acquired in Q2
ALUMINIUM SYSTEMS SEGMENT– selected projects acquired in Q2 Poznań - WCZD Warszawa – Browary Warszawskie bud. G-H Poland Kraków – Unity Centre AB Katowice – Grundmanna I i II 18
Slide 19: Aluminium Systems Segment – selected projects acquired in Q2
ALUMINIUM SYSTEMS SEGMENT– selected projects acquired in Q2 Korolenkovskaya (UA) Serena kenya (NL) Export markets Budynki rządowe (SEN) Kuopio Gate (FIN) 19
Slide 20: Aluminium Systems Segment – selected projects acquired in Q2
ALUMINIUM SYSTEMS SEGMENT– selected projects acquired in Q2 Lindehove (NL) Uniwersytet Göttingen (DE) Export markets The Denizen (UK) Opatovska (CZ) 20
Slide 21: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD ALUPOL PACKAGING S.A. 21
Slide 22: Flexible Packaging Segment – best quarter and half year in history
FLEXIBLE PACKAGING SEGMENT – best quarter and half year in history PLN mn 2Q 2018 2Q 2019 chg 1H 2018 1H 2019 chg Revenues 169,9 192,8 + 13% 348,4 393,2 + 13% - packaging segment 119,9 133,3 + 11% 249,9 279,8 + 12% - BOPP film 50,0 59,5 + 19% 98,5 113,4 + 15% EBIT 22,7 29,8 + 31% 45,9 58,8 + 28% - p
Slide 23: Flexible Packaging Segment – increases in leading sectors
FLEXIBLE PACKAGING SEGMENT – increases in leading sectors + 7% + 20% INSTANT FOOD (33% of total sales) FRESH FOOD (14% of total sales) + 1% + 19% CONFECTIONERY AND BREAKFAST CEREALS (7% of total sales) BOPP FILMS (31% of total sales) * OTHER – FAT PRODUCTS, DIARY PRODUCTS, HOUSEHOLD CHEMICALS, PET F
Slide 24: Flexible Packaging Segment – sales changes on specific markets
FLEXIBLE PACKAGING SEGMENT – sales changes on specific markets PLN mn 2Q 2018 2Q 2019 yoy 1H 2018 1H 2019 yoy Revenues 169,9 192,8 + 13% 348,4 393,2 + 13% Domestic 88,9 97,6 + 10% 189,2 205,5 + 9% Export 81,0 95,2 + 17% 159,2 187,7 + 18% share of export sales 47,7% 49,4% 45,7% 47,7% + 10% + 40% POLA
Slide 25: Flexible Packaging Segment – investment projects
FLEXIBLE PACKAGING SEGMENT– investment projects Implementation PLN mn Budget 2019 % of the budget after 1H’19 BOPP line – second unit 79,6 62,2 78% Other 4,7 3,9 83% Total 84,3 66,1 78% BOPP production line „the old one” BOPP production line „the new one” 25
Slide 26: Consolidated Results
CONSOLIDATED RESULTS DARIUSZ MAŃKO CHAIRMAN OF THE BOARD 26
Slide 27: Operating profit – very good quarter
OPERATING PROFIT – VERY GOOD QUARTER PLN mn 2Q 2019 2Q 2018 chg 1-2Q 19 1-2Q 18 chg Revenues 831,8 748,8 +11% 1610,7 1 423,6 +13% Operating profit 101,3 94,5 +7% 178,0 169,0 +5% margin 12,2% 12,6% 11,1% 11,9% EBITDA 135,5 126,5 +7% 245,6 231,5 +6% margin 16,3% 17,0% 15,2% 16,3% Result on financial a
Slide 28: Cost increase under control
COST INCREASEMENT UNDER CONTROL PLN mn Q2 2019 Q2 2018 chg 1-2Q 2019 1-2Q 2018 chg Sales revenues 831,8 748,8 +11% 1610,7 1 423,6 +13% change in inventories -12,8 1,9 -21,6 15,4 cost of products used for own purposes 4,1 3,1 6,6 5,7 Total operating costs, including: 725,6 659,4 +10% 1 423,8 1 279,1
Slide 29: Record result in flows from operating activities in the second quarter
RECORD RESULT IN FLOWS FROM OPERATING ACTIVITIES IN THE SECOND QUARTER Working capital (PLN mn) PLN mn 2Q_2018 3Q_2018 4Q_2018 1Q_2019 2Q_2019 900 Working Capital 800 825 797 827 801 800 825 797 827 801 Inventories 497 514 509 486 467 600 Receivables 583 588 532 623 614 Liabilities 280 277 244 282 2
Slide 30: Stable financing
STABLE FINANCING Bank debt (PLN mn) 900 661,1 654,3 622,7 618,7 600 469,2 The increase in debt compared to last year resulting from the 300 need to finance the investment program and working. 241,0 231,1 220,8 263,0 266,7 0 2Q_2018 3Q_2018 4Q_2018 1Q_2019 2Q_2019 long term short term Net debt at the
Slide 31: Summary
SUMMARY Very good financial results. Stable outlook for the next quarter. The Management Board maintains its annual forecasts. 31
Slide 32: Additional information
INFORMACJE DODATKOWE VOLUME SALES (thousands of tons) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Extruded Products Segment 19,8 20,6 16,8 19,4 20,9 Flexible Packaging Segment 14,6 14,9 14,7 16,2 16,0 EBITDA per Segment (PLN mn) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Extruded Products Segment 50,2 48,7
Slide 33: 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