Grupa Kety SA · GPW:KTY
Grupa Kety SA — Investor Presentation (2017)
29 slides from Grupa Kety SA's investor presentation, 2017
Slide 1: Presentation of the Update of 2020 Strategy and the Forecast for 2017
PRESENTATION OF THE UPDATE OF "2020 STRATEGY" AND THE FORECAST FOR 2017 DARIUSZ MAŃKO CHAIRMAN OF THE BOARD & CEO ADAM PIELA BOARD MEMBER & CFO 1 www.grupakety.com
Slide 2: Agenda
AGENDA 1. WHERE WE ARE AFTER TWO YEARS 2. THE NEW 'OLD' STRATEGY FOR 2020 3. THE FORECAST FOR 2017 4. SUMMARY 5. QUESTIONS www.grupakety.com 2
Slide 3: Where We Are After Two Years
WHERE WE ARE AFTER TWO YEARS (PLN milion) 2014 2016* change GOALS FOR Achieved level of 2016/2014 target values 2020 Revenues 1 820 2 252 +24% 2 820 80% EBITDA 309 396 +28% 465 85% EBIT 225 290 +29% 314 92% Net profit 169 275 +63% 264 104% CAPEX 484 930 52% (cumulatively) * Not audited 3
Slide 4: Benefits for Shareholders
BENEFITS FOR SHAREHOLDERS Grupa Kęty share price The increase of the share price by 36% 430 between Dec 31st, 2016 and Dec 31st, 2014 410 whereas WIG Index rose only by 1% in the 390 370 same period. 350 330 310 290 In addition, the company has paid approx. 32 zł 270 250 dividend per share (10% more
Slide 5: Changes in the Assumptions of 'Strategy 2020'
CHANGES IN THE ASSUMPTIONS OF 'STRATEGY 2020' www.grupakety.com 5
Slide 6: Objectives That Always Remain Actual
OBJECTIVES THAT ALWAYS REMAIN ACTUAL To ensure sustainable growth of shareholder value by: 1. Sustainable development leading to a systematic increase of profits and cash 2. Stable dividend policy 3. Creating the potential for development in the subsequent periods 4. Maintaining high standards of co
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT The utilisation of the competence of the The growing importance of foreign sales segment and the opportunities provided by the 57% 58% 50% 50% 43% 42% market: 1) in terms of product types: components and profiles processed, hard alloys 2016 2020 previous 2020 actual domesti
Slide 8: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT 2016 BASIS GOALS FOR 2020 GOALS FOR 2020 change (previous) (actual) 2020/2016 Revenues PLN 942 mn PLN 1 158 mn PLN 1 444 mn +53% EBITDA margin 14,9% 12,2% 11,4% The share of processed 20% 25% 25% products Working capital 89 days 89 days 80 days turnower CAPEX 2015 - 2020 PL
Slide 9: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT Maintaining the leading position of the domestic The growing importance of foreign sales market by systematically extending the product offer including: 59% 62% 55% 1) Systems for passive construction 41% 38% 45% 2) Solutions that outpace the requirements of the EU in the a
Slide 10: Aluminium Systems Segment
ALUMINIUM SYSTEMS SEGMENT 2016 BASIS GOALS FOR 2020 GOALS FOR 2020 change (previous) (actual) 2020/2016 Revenues PLN 1 074 mn PLN 1 150 mn PLN 1 420 mn +32% EBITDA margin 15,9% n/a 15,3% The share of foreign 41% 40% 45% sales Working capital 91 days n/a 99 days turnower CAPEX 2015 - 2020 PLN 246 mn
Slide 11: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT Entry into new product segments will change the Entry into new areas of the market (Alupol Films) geographical breakdown of sales - unprinted and printed plastic films for further refining, which are used in: 67% 67% 57% 43% 1) the food industry: bakery, snacks (including
Slide 12: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT 2016 BASIS GOALS FOR 2020 GOALS FOR 2020 change (previous) (actual) 2020/2016 Revenues PLN 496 mn PLN 652 mn PLN 665 mn +34% EBITDA margin 20,4% 20,7 20,3% The share of exports to Western Europe 50% 55% 55% in total exports Working capital 120 days 99 days 110 days turnowe
Slide 13: Strategy 2020 – Consolidated Figures
„STRATEGY 2020” – CONSOLIDATED FIGURES www.grupakety.com 13
Slide 14: Capital Group - Macroeconomic Assumptions
CAPITAL GROUP - MACROECONOMIC ASSUMPTIONS 2015 – 2020 2017 - 2020 (previous) (actual) EUR/PLN 4,20 4,30 USD/PLN 3,62 4,05 EUR/USD 1,16 1,06 AL. (3M) 1900 1800 GDP Poland 3,4% 3,4% GDP EURO-zone 1,8% 1,5% Cost of debt 3,0% 3,0% www.grupakety.com 14
Slide 15: Capital Group – Consolidated Results
CAPITAL GROUP – CONSOLIDATED RESULTS PLN million GOAL FOR GOAL FOR change 2016 BASIS* 2020 2020 20/16 (previous) (actual) Extruded Products Segment 942 1 158 1 444 +53% Aluminium Systems Segment 1 074 1 150 1 420 +32% Flexible Paskaging Segment 496 652 665 +34% CONSOLIDATED SALES 2 252 2 820 3 257 +
Slide 16: Capital Group – Capex Plan
CAPITAL GROUP – CAPEX PLAN CAPEX PLAN FOR 2015 – 2020 www.grupakety.com 16
Slide 17: Capital Group - Financing
CAPITAL GROUP - FINANCING The main source of funding will be own funds and 1000 external financing (debt). 800 58 119 73 762 600 682 In 2018, the Group will reach the highest level of 97 400 599 net debt - PLN 762 million. 200 423 0 2016 2017F 2018F 2020F The projected net debt / EBITDA at a maximum
Slide 18: Capital Group – Other Assumptions
CAPITAL GROUP – OTHER ASSUMPTIONS The forecast includes approx. 80% dividend payout rate which is within the framework of the new dividend policy assuming the payment of 60% to 100% of the consolidated net profit, assuming that the net debt of the Group to the consolidated operating profit plus depr
Slide 19: Capital Group – Creating the Holding Structure
CAPITAL GROUP – CREATING THE HOLDING STRUCTURE The holding company listed on the WSE without Grupa Kęty S.A. production activities Business segments with production activities. Each has its leading company Extruded Flexible Aluminium New Segment Products Packaging Systems Segment ??? Segment Segment
Slide 20: Summary
SUMMARY MAIN STRATEGY DIRECTIONS REMAIN THE SAME. INCREASED THE RATE OF GROWTH OF INDIVIDUAL BUSINESS SEGMENTS. PARALLEL TO THE IMPLEMENTATION OF THE PARTICULAR BUSINESS GOALS, ORGANIZATIONAL STRUCTURE OF THE GROUP WILL BE CHANGED - HOLDING STRUCTURE. MARKET POSITION GROWTH WILL BE ACCOMPANIED BY AN
Slide 21: Forecast for 2017
FORECAST FOR 2017 www.grupakety.com 21
Slide 22: Summary of the 2016 Results
SUMMARY OF THE 2016 RESULTS Forecast Actual change Feb 2016 results A very good year for the Group. EUR/PLN 4,30 4,36 +1% USD/PLN 4,05 3,94 - 3% EUR/USD 1,06 1,11 +5% The investment plan implemented in AL (3M) 1600 1610 +1% approx. 80%. Projects with a value of GDP 3,5% 2,8% PLN 41 milion moved to 2
Slide 23: Forecast for 2017 – Operating Assumptions
FORECAST FOR 2017 – OPERATING ASSUMPTIONS Maintaining a very good operating performance, comparable with the record 2016 year - projected margin decline resulted mainly from an increase in the raw material base. Obtaining a possible high degree of capacity utilization during the first year of operat
Slide 24: Forecast for 2017 – Sales Revenues
FORECAST FOR 2017 – SALES REVENUES PLN million 2016 2017 FORECAST change Extruded Products Segment 942 1 063 +13% Aluminium Systems Segment 1 074 1 180 +10% Flexible Packaging Segment 496 515 +4% CONSOLIDATED SALES 2 252 2 500 +11% www.grupakety.com 24
Slide 25: Forecast for 2017 – Consolidated Figures
FORECAST FOR 2017 – CONSOLIDATED FIGURES PLN million 2016 * 2017 FORECAST change CONSOLIDATED EBIT 290 297 +2% CONSOLIDATED EBITDA 396 420 +6% CONSOLIDATED NET PROFIT 275 ** 227 *** -18% * not audited ** includes PLN 42 milion of tax benefits *** includes PLN 5 milion of tax benefits www.grupakety.c
Slide 26: Forecast for 2017 – Capex Plan
FORECAST FOR 2017 – CAPEX PLAN PLN million EXTRUDED PRODUCTS SEGMENT 156 400 Development of production capacity in the area of profile processing 14 796 Production tools 24 038 New extrusion press for soft-alloys (includes production hall) 32 000 Development of production capacity in the area of har
Slide 27: Forecast for 2017 - Financing
FORECST FOR 2017 - FINANCING The projected increase in debt due to the Debt level value of the investment program, the 800 73 payment of dividends and the adoption of a 600 safety margin (about PLN 50 mn) for an 97 increase in working capital. 400 599 80 423 200 230 Increasing the dividend payout ra
Slide 28: Summary
SUMMARY A MAINTAINING OF FAVOURABLE BUSINESS ENVIRONMENT IN 2017 IS EXPECTED. MANAGEMENT BOARD FORECASTS THAT NET PROFIT IN 2017 WILL REMAIN AT A LEVEL SIMILAR TO THE RECORD RESULT OF 2016 YEAR (BEFORE THE IMPACT OF TAX BENEFITS ON THE RESULTS OF THESE YEARS. NEW DIVIDEND POLICY - MANAGEMENT BOARD R
Slide 29: Thank You
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