Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q2 2021 Earnings Presentation
24 slides from Grupa Kety Sa's earnings presentation, Aug 5, 2021
Slide 1: Results for the 2nd Quarter of 2021
RESULTS FOR THE 2ND QUARTER of 2021 DARIUSZ MAŃKO RAFAŁ WARPECHOWSKI PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD MEMBER BOARD MEMBER BOARD MEMBER CEO ALUPOL PACKAGING BOARD 5TH AUG 2021
Slide 2: Results of the quarter are above the expectations
RESULTS OF THE QUARTER ARE ABOVE THE EXPECTATIONS MARKET OPERATIONS AND FINANCES ENVIRONMENT INVESTMENTS + STRONG DEMAND IN + HIGH SALES VOLUME + PLN 252 million - EBITDA / SECTORS RELATED TO PLN 162 million - NET ALUMINUM CONSUMPTION + OPERATING WITHOUT PROFIT INTERFERENCE + PAYMENT OF THE FIRST +
Slide 3: Increasing the investment plan for 2021-2025
INCREASING THE INVESTMENT PLAN FOR 2021-2025 RATIONALE • HIGHER THAN PLANNED IN THE STRATEGY, THE PACE OF DEVELOPMENT OF NEW MARKETS • VERY HIGH UTILISATION OF PRODUCTION CAPACITY • LIMITED POSSIBILITIES OF EXTERNAL CO-OPERATION SCOPE OF CHANGES +PLN 256 million OF ADDITIONAL INVESTMENTS, INCLUDING
Slide 4: Operating activity of segments
OPERATING ACTIVITY OF SEGMENTS 4
Slide 5: Flexible Packaging Segment - market situation
FLEXIBLE PACKAGING SEGMENT Market situation LDPE granules ICIS spot low (EUR/ton) PP granules ICIS spot low (EUR/ton) 1980 1995 2000 1838 1863 1790 2000 1872 1813 1738 1645 1600 1478 1600 1500 1383 1230 1168 1200 1058 1200 1005 902 898 890 880 948 838 762 780 820 848 850 848 885 805 766 833 800 800
Slide 6: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT 1-2 Q 1-2 Q (PLN million) 2Q 2021 2Q 2020 change change 2021 2020 Sales increased mainly due to Sale 305,1 253,5 +20% 589,5 498,5 +18% higher petrochemical prices including BOPP films 161,1 111,5 +44% 282,5 206,2 +37% domestic 130,9 108,5 +21% 270,1 226,1 +19% EBITDA incre
Slide 7: Flexible Packaging Segment - volume and capacity utilisation
FLEXIBLE PACKAGING SEGMENT volume sales capacity utilisation 98% 96% 96% 100% 88% 81% 85% 30 25 20 Maintaining a high level of production 50% 15 capacity utilization despite the turmoil on 23,6 23,0 21,1 24,5 21,7 10 the raw materials market. 19,2 5 0% 0 1Q 2020 2Q 2020 3Q 2020 4Q 2020 *1Q 2021 *2Q
Slide 8: Extruded Products Segment - aluminum industry globally
EXTRUDED PRODUCTS SEGMENT The aluminum industry globally 1250 Aluminium price 3M (USD/t) Billet premium (USD/t) 1150 1050 950 850 750 650 550 450 350 Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 Jul '21 (-) The continuing increase in the price of aluminum in the world markets, stimulated by stron
Slide 9: Extruded Products Segment
EXTRUDED PRODUCTS SEGMENT 1-2 Q 1-2 Q (PLN million) 2Q 2021 2Q 2020 change change 2021 2020 Increase in volume sales by 14% in Q2 21 Sales 445,7 323,9 38% 816,4 642,3 27% supported by the dynamic development 234,4 163,1 44% 425,6 326,0 31% of industry. domestic foreign 211,3 160,8 32% 390,8 316,3 24
Slide 10: Extruded Products Segment - production and investments
EXTRUDED PRODUCTS SEGMENT production ('000 tons) capacity utilisation (%) 95,3% 99% 30,0 92,5% 88,6% 91,9% 100,0% 85,2% 90,0% 25,0 80,0% Maximum use of production capacity. 20,0 70,0% 60,0% 15,0 50,0% 23 40,0% 10,0 20,4 21,6 22,6 20,1 22,2 30,0% 5,0 20,0% 10,0% 0,0 0,0% 1Q 2020 2Q 2020 3Q 2020 4Q 20
Slide 11: New investment projects - increasing production capacity
EXTRUDED PRODUCTS SEGMENT NEW INVESTMENT PROJECT - INCREASING THE PRODUCTION CAPACITY OF GRUPA KĘTY S.A. Construction of a production hall and installation of two new presses - total expenses of approx. PLN 220 million, including PLN 162 million as part of increasing the investment plan of Strategy
Slide 12: Aluminum Systems Segment - markets
ALUMINUM SYSTEMS SEGMENT DOMESTIC MARKET Objects acquired in 2Q. (+) high growth of granted building permits (y / y) referring into sales increases in the segment of single-family houses, apartment buildings and small and medium-sized facilities, (-) unstable situation in terms of prices, delivery t
Slide 13: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT (PLN million) 2Q 2021 2Q 2020 change 1-2 Q 2021 1-2 Q 2020 change High dynamics of orders in the segment Sales 492,6 383,6 28% 903,1 718,7 26% of single-family houses, apartment domestic 303,3 229,9 32% 543,6 443,9 22% buildings and small and medium-sized foreign 189,3 153,7
Slide 14: Aluminum Systems - implementation of the investment plan
ALUMINUM SYSTEMS SEGMENT Implementation of the investment plan • projects increasing added value chain - selection of 2021 1 -2 Q % of (PLN million) Forecast Expences forecast equipment suppliers, administrative proceedings to obtain environmental approvals (transfer of approx. Total 135,4 28,9 21%
Slide 15: Aluminum Systems Segment - rebranding
ALUMINUM SYSTEMS SEGMENT REBRANDING ALUPROF GOLDEN CONSTRUCTION BRAND and GOLDEN CHAMPION OF THE YEAR 2021 Aluprof - continuation of the TV campaign on the channels of several TV stations:TVP 1, TVP SPORT, POLSAT, TVN, HGTV and Domo + ALUPROF IS A GOOD BRAND Aluprof - a series of trainings for partn
Slide 16: Consolidated financial results
CONSOLIDATED FINANCIAL RESULTS 16
Slide 17: Consolidated financial results
CONSOLIDATED FINANCIAL RESULTS • Increase in revenues mainly due 1-2 Q 1-2 Q to higher sales volumes and (PLN million) 2Q 2021 2Q 2020 change change 2021 2020 higher raw material prices Revenues 1151,1 887,8 30% 2 141,2 1 716,8 25% • EBITDA: profit improvement in EBITDA 251,9 187,4 35% 451,6 333,0 3
Slide 18: Update of the annual forecast 2021
UPDATE OF THE ANNUAL FORECAST 2021 PLN 4 280 MLN PLN 774 MLN PLN 490 MLN + 7,0 % + 11,5 % + 13,0 % SALE EBITDA NET PROFIT The changes presented above refer to the deviations from the forecast for the year's performance, published on April 22 this year. 18
Slide 19: Second quarter cash flow
SECOND QUARTER CASH FLOW Operating cash flow (PLN million) CAPEX (PLN million) 250 100 209 200 159 152 150 117 99 43 50 43 45 94 100 30 23 50 0 0 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Cash flow in 2Q (PLN million) Net debt • Increase in net w
Slide 20: Secure level of financial ratios
SECURE LEVEL OF FINANCIAL RATIOS Net debt (PLN million) and net debt/EBITDA ratio Debt maturity structure Debt currency structure 1000 1,4 short term EUR 1,2 1,2 43% 25% 800 1,0 0,8 0,8 0,8 0,7 0,8 600 0,5 0,6 665 620 0,4 PLN 400 586 534 long term 484 0,2 75% 347 57% 200 0,0 1Q 2020 2Q 2020 3Q 2020
Slide 21: Outlook for Q3 2021
OUTLOOK FOR Q3 2021 MARKET OPERATIONS FINANCES ENVIRONMENT ANDINVESTMENTS • STABLE DEMAND, • MAINTAINING HIGH CAPACITY • EXPECTED BINDING OFFERS ESTIMATED SALES AT A UTILISATION WHILE ENSURING POSSIBLE SALE OF FPS LEVEL COMPARABLE TO Q2 WORK SAFETY • HIGH RAW MATERIAL • PAYMENT OF THE SECOND PRICES,
Slide 22: Additional information
ADDITIONAL INFORMATION 22
Slide 23: Additional information
ADDITIONAL INFORMATION VOLUME SALES (‚000 tons) 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Extruded Products Segment 22,0 22,5 19,9 22,8 25,1 Flexible Packaging Segment 23,0 21,1 19,2 24,5 21,7 EBITDA per Segment (PLN million) 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Extruded Products Segment 43,4 51,4
Slide 24: 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