Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q1 2020 Earnings Presentation
20 slides from Grupa Kety Sa's earnings presentation, Apr 23, 2020
Slide 1: Results for the 1st Quarter of 2020
RESULTS FOR THE 1st QUARTER of 2020 DARIUSZ MAŃKO RAFAŁ WARPECHOWSKI PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD MEMBER BOARD MEMBER BOARD MEMBER CEO ALUPOL PACKAGING BOARD 23rd APRIL 2020
Slide 2: The Quarter Without Significant Impact of the Pandemic
THE QUARTER WITHOUT SIGNIFICANT IMPACT OF THE PANDEMIC MARKET OPERATIONS & FINANCE ENVIRONMENT INVESTMENT • LOWER RAW MATERIAL PRICES • EARLY ACTIONS TO REDUCE THE • PLN 146 million EBITDA IN Q1 • WEAKNESS OF PLN vs MAIN IMPACT OF THE CORONAVIRUS • HIGH FREE CASH FLOW FOREIGN CURRENCIES SINCE PANDEM
Slide 3: Segment Operating Activities
SEGMENT OPERATING ACTIVITIES 3
Slide 4: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT (PLN million) 1Q 2020 1Q 2019 change The segment delivers its products to food producers, one of the strategic area during Sales 245,0 200,4 22% the pandemic Domestic 117,6 107,9 9% Export 127,4 92,5 38% Increase in EBITDA profit mainly due to EBITDA 50,1 36,1 39% growing
Slide 5: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT Sales volume (`000 tons) High operational efficiency and effective +89% commercial activities: 14,4 - approx. 90% increase in BOPP film sales - 7,6 +6% effective coverage of the second production 8,6 9,2 line launched in Q4 2019 - an increase in sales of packaging due to 1
Slide 6: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT CAPEX Execution 2020 F Q1 2020 (PLN million) (%) Druk flekso (Kęty) 14 5 38% Wydmuch folii PE (Tychy) 10 7 65% Pozostałe 8 1 12% Razem 32 13 40% Implementation of key replacement investments as planned: • replacement of a fully depreciated PE film blowing line • replacemen
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT (PLN million) 1Q 2020 1Q 2019 change Lower sales value due to decreasing Sales 318,4 326,5 -2% aluminum prices: Domestic 162,8 185,0 -12% 1713 $ / t in Q1 2020 compared to Foreign markets 155,6 141,4 10% 1880 $ / t in Q1 2019 EBITDA 37,3 29,7 26% Higher EBITDA mainly due to
Slide 8: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Production capacity* (`000 tons) & capacity Volume sales (`000 tons) utilisation (%) 20,8 95% 91% 90% +8% 100% 88% 30 20 19,4 68% 20 50% 15 22 22 23 23 23 10 10 0% 0 Kategoria 1 1Q_2019 2Q_2019 3Q_2019 4Q_2019 1Q_2020 1Q 2019 1Q 2020 • Sales volume increase by 8% y / y. - a
Slide 9: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT Investments: total expenses in the first quarter - PLN 21 milion • Investment optimization - focus on the necessary from a production perspective • Limitation of equipment repairs to the most urgent. Activities of foreign companies during a pandemic: • AK EMMI, Slovenia: pe
Slide 10: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT (PLN million) 1Q 2020 1Q 2019 change Increase in revenues in all areas of activity despite of the completion of two big Sales 335,1 328,8 2% conntract in 2019 (Mennica, Posejdon) Domestic 214,0 216,7 -1% Foreign markets 121,1 112,1 8% Increase in EBITDA mainly due to higher
Slide 11: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT DOMESTIC SALES • High interest in aluminum systems for new investments (mainly: office buildings, hospitals, hotels, apartment buildings) • At the end of the first quarter, some investments (mainly hotels) were suspended (several months horizon) • At the same time, the Segm
Slide 12: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT FOREIGN SALES High sales dynamics in Europe: • sales increases on stable Czech, Slovak, German and Austrian markets • dynamic development of object sales in Lithuania, Ukraine and Scandinavia Hunter’s Point G (Nowy Jork) • temporary restrictions in Great Britain, Benelux -
Slide 13: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT Investments: total expenses in the first quarter - PLN 13 million: • postponing the construction of a new production hall in Opole • tasks carried out in the first quarter mainly concerned the purchase of machinery, equipment and means of transport as well as modernization
Slide 14: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT TOP BUILDER 2020 for MB-SE80 MLT system and SKB STYROTERM system COMMUNICATION WITH THE MARKET: • A cycle of production training webinars - Alueducator on line • A series of webinars and support for architects - online catalogs • Production training, zone for manufacturers
Slide 15: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 15
Slide 16: Consolidated P&L
CONSOLIDATED P&L 1Q 2020 1Q 2019 change PLN million Revenues 829,0 778,9 +6% Revenue increase resulting from higher sales volumes EBITDA 145,6 110,1 +32% EBITDA margin 17,5% 14,1% EBITDA improvement y/y in all segments: EBIT 108,4 76,6 +41% PLN 7.6 million - EPS EBIT margin 13,0% 9,8% PLN 15.3 milli
Slide 17: Cash Flow in the 1st Quarter
CASH FLOW IN THE 1ST QUARTER Operating cash flow (PLN million) CAPEX (PLN million) 200 200 137 159 144 123 117 100 100 92 53 46 55 43 0 0 1Q_2019 2Q_2019 3Q_2019 4Q_2019 1Q_2020 1Q_2019 2Q_2019 3Q_2019 4Q_2019 1Q_2020 Cash flow in 1Q (PLN million) 180 150 145,6 120 -26,0 90 -11,9 62 60 -42,3 30 -3,4
Slide 18: Safe Level of Financial Indicators
SAFE LEVEL OF FINANCIAL INDICATORS Net debt (PLN million) and net debt/EBITDA Maturity structure Currency structure ratio 1000 1,7 1,7 1,6 1,8 short term 1,6 EUR 800 37% 1,3 1,15 1,4 23% 1,2 USD 600 1,0 1% 0,8 400 786 774 727 703 0,6 641 PLN 200 0,4 0,2 long term 76% 0 0,0 63% 1Q_2019 2Q_2019 3Q_201
Slide 19: Summary – Prospects for the 2nd Quarter
SUMMARY – PROSPECTS FOR THE 2ND QUARTER MARKET OPERATIONS & FINANCE ENVIRONMENT INVESTMENT • STABILIZATION OF RAW • FOCUS ON PRODUCTION • SUSTAINABLE FORECAST 2020 (ON MATERIAL PRICES OPTIMIZATION AND THE ASSUMPTION OF A GRADUAL • POSSIBLE REDUCTION OF EMPLOYEE SAFETY IMPROVEMENT OF BUSINESS IN DEMA
Slide 20: 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