Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q1 2023 Earnings Presentation
23 slides from Grupa Kety Sa's earnings presentation, Apr 20, 2023
Slide 1: Results for the 1st Quarter 2023
RESULTS FOR THE 1ST 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 APRIL 20, 2023
Slide 2: Start of the Year Above Expectations
START OF THE YEAR ABOVE EXPECTATIONS MARKET OPERATIONS FINANCES ENVIRONMENT AND INVESTMENTS + STABILIZATION OF COMMODITY + COMMENCEMENT OF + HIGH RESULTS: PRICES Q/Q CONSTRUCTION OF NEW ASS EBITDA - PLN 201 million + IMPROVEMENT IN MARKET PLANT IN ZŁOTÓW NET PROFIT - PLN 136 million CONDITIONS COMPA
Slide 3: Operating Activity of Segments
OPERATING ACTIVITY OF SEGMENTS 3
Slide 4: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT LME aluminium 3M (USD/t) (+) Limitation of fluctuations in aluminium prices on LME during the quarter and stabilization at a lower level YoY (+) Continuation of the downward trend of the billets' premium 2350 Apr '22 Apr '23 (-) Turkey, the second-largest importer of Russia
Slide 5: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT (PLN million) 1Q 2023 1Q 2022 change Sales volume: Sales 594,4 641,7 -7% • 6% lower YoY • 5% higher compared to the average of 2H Domestic 278,6 335,0 -17% 2022 - including the effect of replenishing International 315,8 306,7 +3% inventory levels. EBITDA 76,0 81,9 -7% EBITD
Slide 6: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT 30 000 96% 99% 91% 100% 90% 25 000 74% 80% Lower capacity utilization rate due to 64% 20 000 70% increased availability of presses in 1Q 2023 60% 15 000 50% YoY (+2k tons vs 23k tons in 1Q 2022). 22,6 24 23,0 40% 10 000 20,3 30% 16,7 Alupol LLC in Ukraine - the company has
Slide 7: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT SUCCESSFUL LAUNCH OF THE 14TH EXTRUSION LINE IN KĘTY In March 2023, the Kęty Group successfully extruded the first billet on the new 14th line for profile extrusion. The press with a pressure of 2000 tons was installed in a new hall with an area of approximately 10,000 sq.
Slide 8: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT (PLN million) 1Q 2023 1Q 2022 change Decrease in revenue: Sales 560,1 585,1 -4% • lower sales volumes (aluminum Domestic 323,3 354,9 -9% systems -18% y/y, roller shutter International 236,7 230,2 +3% systems -15% y/y) • partially compensated by higher EBITDA 77,6 98,4 -21% t
Slide 9: Aluminum Systems Segment: Domestic Market
ALUMINUM SYSTEMS SEGMENT DOMESTIC MARKET Projects acquired in Q1 2023 (+) Sustained high demand for industrial and ATLAS OLIMPIJSKA, Katowice, LAKESIDE (Atenor), warehouse facilities PL Warszawa, PL (+) Increasing number of certified energy-efficient office buildings (+) Modernization of facilities
Slide 10: Aluminum Systems Segment: International Market
ALUMINUM SYSTEMS SEGMENT INTERNATIONAL MARKET Projects acquired in Q1 2023 (+) High sales and marketing activity on the Balkan KIPS_Czarnogó De Grote ra Beer_Holandia markets (+) Increased activity of institutional clients in the US (+) Opening of new Aluprof product showrooms in Vietnam and strengt
Slide 11: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT Budget 1Q 202 (PLN million) % of budget 2023 execution Investments 141 20 14% The main investment project this year is the construction of a new production plant in Złotów (planned total investment in this year - PLN 61 million). Scope of work carried out in Q1 2023: • earth
Slide 12: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT DEVELOPMENT OF THE OFFER FOR THE RESIDENTIAL SEGMENT - PERGOLA MB - OPENSKY120. The new product represents an expansion of the family of terrace coverings available in the form of a self-fabrication system. GLASSPROF - A NEW BRAND IN THE FIRE-RESISTANT GLASS MARKET A new pro
Slide 13: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT Market situation LDPE granulates ICIS spot low (EUR/t) PP granulates ICIS spot low (EUR/t) 2 020 2 000 1 883 1 908 2 000 1 758 1 735 1 810 1 800 1 725 1 688 1 636 1 583 1 563 1 550 1 475 1058 1 450 1 410 1 390 1 600 1 600 1 356 1 263 1 258 1 268 1 265 1005 1 150 1 150 1 15
Slide 14: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT A decrease in sales value due to lower volumes and (PLN million) 1Q 2023 1Q 2022 change lower prices in Alupol Films, despite an increase in Sales 349 404 -14% turnover in the packaging area. Domestic 171 177 -3% A decrease in EBITDA, despite its growth in the Internationa
Slide 15: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT capacity utilisation (%) 97% 89% 89% 100% 85% 30 75% 25 A significant increase in the utilization of 20 50% 15 production capacity compared to 4Q 2022, 10 despite supply pressure in the BOPP 5 segment market. 0% 0 1kw 2022 2kw 2022 3kw 2022 4kw 2022 1kw 2023 The investment
Slide 16: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS 16
Slide 17: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS PLN million 1Q 2023 1Q 2022* change Reduction in sales revenue: mainly due to Sales 1 373,0 1 500,1 -8% volume effects and the decrease in prices of EBITDA 200,6 267,9 -25% major raw materials. EBITDA margin 14,6% 17,8% EBITDA - lower volumes in all segments and Operat
Slide 18: Cash Flow
CASH FLOW Operating cash flow (PLN million) CAPEX (PLN million) 100 95 99 400 86 87 318 298 300 75 61 67 208 50 200 100 85 58 25 45 0 0 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 • Cash flows from operating activities - including a decrease in net
Slide 19: Financial Ratios
FINANCIAL RATIOS Debt maturity structure Debt currency structure net debt (PLN million)* / net debt/EBITDA ratio short term 1100 1,1 1,2 17% EUR; 0,9 0,9 1,0 0,9 15% USD; 0,9 1,0 1056 0% 900 1016 0,8 913 931 875 877 0,6 700 0,4 PLN; 0,2 long term 85% 500 0,0 83% 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 20
Slide 20: Prospects for Q2 2023
PROSPECTS FOR Q2 2023 MARKET OPERATIONS FINANCES ENVIRONMENT AND INVESTMENTS • RAW MATERIALS PRICE • CONTINUATION OF KEY • MAINTAINING SAFE FINANCIAL STABILIZATION DEVELOPMENT INVESTMENTS RATIOS • MARKET UNCERTAINTY - • COST OPTIMIZATION OF • GSM AT JUNE 21, 2023 SHORT ORDER HORIZONS OPERATIONS AND
Slide 21: Additional Information
ADDITIONAL INFORMATION 21
Slide 22: Additional Information
ADDITIONAL INFORMATION Volume sales (`000 tons) 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Extruded Products Segment 23,5 23,9 19,9 16,0 22,0 Flexible Packaging Segment 26,4 23,2 23,3 19,6 22,7 Segment’s EBITDA (PLN million) 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Extruded Products Segment 81,9 124,4 7
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