Fabryka Farb I Lakierow Sniezka S.a. · GPW:SKA
Fabryka Farb I Lakierow Sniezka — Śnieżka Group — FY2023 Earnings Presentation
41 slides from Fabryka Farb I Lakierow Sniezka's earnings presentation, Mar 27, 2024
Slide 1: Performance presentation of the Śnieżka Group for 2023
Performance presentation of the Śnieżka Group for 2023 27 March 2024
Slide 2: Agenda
SNIEZKA GROUP. Enclosures p. 28-40
Slide 3: Summary
Summary Successful season and 2023 in the Good performance despite a difficult geopolitical and Group macroeconomic environment: GDP decline, high (Sales revenues increase y/y by +3.3%): inflation and interest rates. However, the Group was affected by favourable exchange rates. Polish market: increa
Slide 4: Agenda
SNIEZKA GROUP. Environment p. 5-7 Enclosures p. 28-40
Slide 5: Macro 1/3 (GDP in major markets)
Macro 1/3 (GDP in major markets) Annual gross domestic product dynamics Poland for the key markets of the Group (in%) ▪ According to preliminary estimates, GDP in 2023 increased by 0.2%. The European Commission 19,5 estimates the national GDP in 2024 at 2.7%. 9,3 Hungary 2,5 0,2 0,5 1,0 0,0 ▪ GDP re
Slide 6: Macro 2/3 (inflation across the key markets)
Macro 2/3 (inflation across the key markets) The Consumer Price Index (CPI) for goods and services in 2023 (in %) Poland Hungary Ukraine 25,7 26,0 25,4 25,2 24,9 24,0 21,3 21,5 20,1 18,4 17,9 17,6 16,6 16,1 16,4 14,7 15,3 13,0 12,8 12,2 11,5 10,8 11,3 10,1 9,9 8,6 8,2 7,9 7,1 6,6 6,6 6,2 5,5 5,3 5,1
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 ▪ 4,80 EUR 4,70 USD 4,60 ▪ 4,50 4,40 4,30 ▪ 4,20 4,10 4,00 3,90 3,80 30.12.2022 28.02.2023 30.04.2023 30.06.2023 31.08.2023 31.10.2023 31.12.2023 HUF QUOTATIONS AGAINST PLN 1,26 ▪ 100 HUF 1,24 1,22 ▪ 1,20 1,18 1,16 ▪ 1,14 1,12
Slide 8: Agenda
SNIEZKA GROUP. Enclosures p. 28-40
Slide 9: Performance summary
Performance summary PLN 857,8 mln 18.6% EBITDA of revenues margin (+5.2% (+8.3% y/y) y/y) ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 9
Slide 10: Key markets - Poland (1/3)
Key markets - Poland (1/3) THE POLISH MARKET (in PLN mln) +10.0% 591,1 537,2 PLN 591 090 thousand – Group’s revenues from sales on the Polish market: ▪share in the sales structure in 2023: 69.0%, ▪increase in sales revenues y/y by 10%, ▪increase in the value of sales in Poland resulted from: 2022 20
Slide 11: Key markets - Hungary (2/3)
Key markets - Hungary (2/3) THE HUNGARIAN MARKET (in PLN mln) 136,8 -6.3% PLN 128 153 thousand – Group’s revenues from 128,2 sales on the Hungarian market ▪share in the sales structure in 2023: 14.9% ▪decrease in sales revenues y/y by 6.3% (in local currency sales decrease by 5.4%), ▪the effect of u
Slide 12: Key markets - Ukraine (3/3)
Key markets - Ukraine (3/3) THE UKRAINIAN MARKET PLN 88 439 thousand – Group’s revenues from sales on the (in PLN mln) 88,4 Ukrainian market +29.6% 68,2 ▪share in the sales structure in 2023: 10.3% ▪sales increase by 29.6% (in local currency by 54.8%) supported by low base related to the closure of
Slide 13: Revenue structure - product categories
Revenue structure - product categories (in PLN ‘000) 2022 2023 change (y/y) STRUCTURE OF THE GROUP'S SALES REVENUES BY PRODUCT CATEGORY IN 2023 SALES REVENUES OF THE ŚNIEŻKA GROUP BY PRODUCT CATEGORIES Decorative products Decorative products 623 543 694 659 11.4% 81,0% Construction 106 497 102 803 -
Slide 14: P&L (key items): FY 2023
P&L (key items): FY 2023 In 2023 the Śnieżka Group generated a consolidated net Net profit attributable to shareholders of the profit of PLN 83,481 thousand, i.e. 102.3% higher than in parent company amounted to PLN 77,634 the corresponding period of the previous year. thousand (increase by 111.6% y
Slide 15: P&L (key items): Q4 of 2023
P&L (key items): Q4 of 2023 ▪ ▪ ▪ Q4 of 2022 Q4 of 2023 Change (y/y) Revenues (in PLN mln) EBIT (in PLN mln) EBITDA (in PLN mln) Net profit (in PLN million) 15
Slide 16: Cash flow
Cash flow Positive cash flows in 2023 in the amount of PLN 45,749 thousand (adjusted for exchange differences). THE ŚNIEŻKA GROUP’S CASH FLOWS IN 2023 Cash and cash equivalents of the Group amounted to PLN 65,665 thousand at the end of the reporting period. ▪Positive cash flows from operating activi
Slide 17: Balance
Balance (in PLN mln) 31.12.2022 31.12.2023 change (y/y) Fixed assets Inventory Trade and other receivables Equity Trade and other liabilities ▪ ▪ ▪ ▪ ▪ 17
Slide 18: Debt
Debt THE ŚNIEŻKA GROUP’S LIQUIDITY AND DEBT RATIOS 31.12.2022 31.12.2023 Net debt /EBITDA Current liquidity ratio (Current assets / Short-term liabilities) Total debt ratio (Total liabilities / Total assets) x 100% Fixed-asset to equity-capital ratio (Equity/Fixed assets) x 100% ▪ ▪ ▪ ▪ 18
Slide 19: Dividend (in PLN '000)
Dividend ( in PLN ‘000) PLN 504,223 thousand Total value of dividend paid since the debut on the 45 424 WSE 39 998 4 970 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ▪ ▪ 19
Slide 20: Agenda
SNIEZKA GROUP. Enclosures p. 28-40
Slide 21: Key events of 2023 in the ESG context
Key events of 2023 in the ESG context Implementation of the First EcoVadis assessment Work on reporting Sustainable Development - ending with "gold" compliant with CSRD Strategy Report for With ESRS reporting 2023 r. elements (selected indicators), content based on simplified dual materiality analys
Slide 22: Agenda
SNIEZKA GROUP. Enclosures p. 28-40
Slide 23: Mission and Vision
MISSION AND VISION Our values: Customer People Innovation Business efficiency 23
Slide 24: Strategic objectives
Strategic objectives: Together with the publication of ▪ Further increasing the recognition of key brands: this 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 25: 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 26: Medium-term perspective
Medium-term perspective The main external factors affecting the Group's performance in Selected internal factors affecting the Group's the coming quarters will be: performance: Macroeconomic: Geopolitical: ▪Expansion of the distribution model on the independent market in Poland: ▪Increase or decreas
Slide 27: Agenda
Agenda Enclosures p. 28-40 27
Slide 28: 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 12 months ended 12 months ended 12 months ended 12 months ended 31 December 2022 31 December 2023 31 December 2022 31 December 2023 Net sales revenues Net sales reve
Slide 29: Seasonality
Seasonality SEASONALITY OF SALES OF THE ŚNIEŻKA GROUP IN POLAND (in PLN mln) 2019 2020 2021 2022 2023 ▪ 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 30: 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 30
Slide 31: 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 31
Slide 32: Product categories
Product categories PREMIUM VALUE FOR MONEY WALLS WOOD METAL FACADES PUTTIES 32
Slide 33: 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 34: 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 35: 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 36: 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 sale
Slide 37: 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 38: 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 39: Selected awards and distinctions
Selected awards and distinctions The Largest Polish 2023 Top Companies Private Dividend EcoVadis Gold Medal Report Companies Fabryka Farb i Lakierów Śnieżka SA was The Śnieżka Group has again achieved a For another year in a row, FFIL Śnieżka SA assessed for its activities in the area of position am
Slide 40: 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 41: 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 41