Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q2 2023 Earnings Presentation
23 slides from Grupa Kety Sa's earnings presentation, Aug 3, 2023
Slide 1: Results for the 2nd Quarter 2023
RESULTS FOR THE 2ND QUARTER 2023 DARIUSZ MAŃKO RAFAŁ WARPECHOWSKI PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD MEMBER BOARD MEMBER BOARD MEMBER CEO ALUPOL PACKAGING BOARD AUGUST 3RD 2023
Slide 2: Another quarter above expectations
ANOTHER QUARTER ABOVE EXPECTATIONS MARKET OPERATIONS FINANCES ENVIRONMENT AND INVESTMENTS + DECREASE IN PRICES OF RAW + CONTINUATION OF + HIGH PROFITS: MATERIALS (q/q) CONSTRUCTION OF THE NEW SSA • EBITDA – PLN 240 mn - LOWER DEMAND VS RECORD PLANT IN ZŁOTÓW • NET PROFIT – PLN 151 mn LEVEL OF THE PR
Slide 3: Increased forecast for 2023
INCREASED FORECAST FOR 2023 PLN 810 MN PLN 487 MN PLN 1 200 MN + 12 % + 25 % - 17 % EBITDA NET PROFIT NET DEBT 3
Slide 4: Operating activity of segments
OPERATING ACTIVITY OF SEGMENTS 4
Slide 5: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Aluminium price on LME 3M (USD/t) • Downward trend of aluminum quotations on the LME in Q2. • Lowering the value of the billet premium 2215 • For manufacturers of aluminum profiles in Europe, the second quarter was a continuation of the trend observed since February: fallin
Slide 6: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT 2Q 2Q 1-2 Q 1-2 Q (PLN million) change change 2023 2022 2023 2022 Sales 566,9 726,1 -22% 1 161,3 1 367,7 -15% • Sales revenue - slight decrease in Domestic 261,2 389,2 -33% 539,8 724,2 -25% volume sales (3%) compared to record-breaking 2Q22. International 305,7 336,8 -9% 62
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT 45 000 100% 87% 85% 40 000 90% 96% 99% 74% 35 000 64% 80% Lower utilization of production capacity y/y 70% 30 000 60% due to increased availability since 2Q23 and 25 000 20 000 50% due to limited demand. 40% 15 000 30% 10 000 22,6 24 20,3 23 23 Alupol LLC in Ukraine – in 2Q
Slide 8: Extruded Products Segment – Energy Transition Projects
EXTRUDED PRODUCTS SEGMENT PROJECTS UNDER THE ENERGY TRANSITION PROGRAM • PHOTOVOLTAIC CARPORT Joint project of EPS and ASS - CARPORT based on own aluminum profiles. • PHOTOVOLTAIC PANELS EPS, Kęty Planned installed capacity: 1 MW INSTALACJA PANELI SOLARNYCH AK EMMI INSTALACJA PANELI SOLARNYCH AK EMM
Slide 9: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT 2Q 2Q 1-2 Q 1-2 Q (PLN million) change change 2023 2022 2023 2022 • Sales revenue: Sales 591,5 691,0 -14% 1 151,6 1 367,7 -10% - the level of sales reflects Domestic 359,8 425,3 -15% 683,1 780,2 -12% demand trends - maintaining market shares International 231,7 265,7 -13% 46
Slide 10: Aluminum Systems Segment – Market Situation
ALUMINUM SYSTEMS SEGMENT MARKET SITUATION (+) Gradual increase in construction and assembly production in the first half of 2023 (+) Increase in the number of small and medium-sized public investments VIBE, Warszawa (+) Sustained high demand for industrial and warehouse facilities DREEFTOREN, AMSTER
Slide 11: Aluminum Systems Segment – 2Q 2023
ALUMINUM SYSTEMS SEGMENT 1 – 2Q 2023 (PLN million) Budget 2023 % of the budget implementation INVESTMENTS 141 40 29% Investment Project - New production plant in Złotów (planned total investment this year - PLN 61 million): - implementation of works in accordance with the schedule: • facades made in
Slide 12: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT • Utilization of 80% of the assumed production capacity of the glass production plant • Completion of certification of Glassprof glass on European markets with high sales potential in the field of doors and internal and external walls: EI 30 - EI 90 • Continuation of researc
Slide 13: Flexible Packaging Segment – Market Situation
FLEXIBLE PACKAGING SEGMENT MARKET SITUATION LDPE resins ICIS spot low (EUR/t) PP resins ICIS spot low (EUR/t) 2 020 2 000 1 908 2 000 1 810 1 800 1 636 1 688 1 583 1 475 1 410 1 450 1 410 1058 1 600 1 600 1 356 1 263 1 258 1 268 1230 1 265 1133 1 150 1 150 1 150 1005 1 105 1 150 1 190 1170 1121 1 20
Slide 14: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT • Decrease in the value of sales due to lower 2Q 2Q 1-2 Q 1-2 Q (PLN million) 2023 2022 change 2023 2022 change volumes and a sharp drop in the prices of BOPP film, mainly as a result of weak Sales 294 399 -26% 643 803 -20% demand affecting significant reductions in Domest
Slide 15: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT capacity utilisation (%) Despite the unfavorable market 89% 89% 30 100% 75% 85% 80% environment, maintaining a high level of 25 capacity utilisation - 80%, thanks to the 20 50% 15 adjustment of the market strategy to 10 current challenges. 5 0% 0 2Q 2022 3Q 2022 4Q 2022 1Q
Slide 16: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 16
Slide 17: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 2Q 2Q 1-2Q 1-2Q PLN million Change change 2023 2022* 2023 2022* Sales revenue: Sales 1 338,4 1 648,5 -19% 2 711,4 3 148,6 -16% • lower volumes - reduced demand vs EBITDA 240,1 350,3 -31% 440,6 618,2 -29% exceptional level after the outbreak of war in Ukraine EBITDA mar
Slide 18: Cash Flow
CASH FLOW Operating cash flow (PLN mn) CAPEX (PLN mn) 150 400 318 298 125 95 99 300 255 100 87 208 75 61 67 62 200 50 100 85 58 25 0 0 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 • High cash from operating activities, including: - decrease in net w
Slide 19: Financial Ratios
FINANCIAL RATIOS Debt maturity structure Debt currency structure Net debt (PLN mn)* / net debt/EBITDA short term PLN; 1100 1,2 0,9 1,0 29% 71% 0,9 0,9 0,9 1056 0,8 1,0 900 1016 0,8 913 931 877 0,6 700 0,4 EUR; 698 0,2 long term Other; 1% 28% 500 0,0 71% 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 202
Slide 20: Prospects for Q3 2023
PROSPECTS FOR Q3 2023 MARKET OPERATIONS FINANCES ENVIRONMENT AND INVESTMENTS • STABILIZATION OF ALUMINUM • CONTINUATION OF KEY • MAINTAINING SAFE FINANCIAL PRICES, DECREASE IN DEVELOPMENT INVESTMENTS RATIOS PETROCHEMICALS • MAINTAINING A HIGH LEVEL • PAYMENT OF THE Ist TRANCHE • CONTINUED PRESSURE O
Slide 21: Additional Information
ADDITIONAL INFORMATION 21
Slide 22: Additional Information
ADDITIONAL INFORMATION Volume sales (`000 tons) 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Extruded Products Segment 23,9 19,9 16,0 22,0 23,2 Flexible Packaging Segment 23,2 23,3 19,6 22,7 20,7 Segment’s EBITDA (PLN million) 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Extruded Products Segment 124,4 74,7 4
Slide 23: 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