Fabryka Farb I Lakierow Sniezka S.a. · GPW:SKA
Fabryka Farb I Lakierow Sniezka — Śnieżka Group — H1 2021 Earnings Presentation
33 slides from Fabryka Farb I Lakierow Sniezka's earnings presentation, Sep 15, 2021
Slide 1: Prezentacja wyników za 1H 2021
SNIEZKA GROUP Prezentacja wynikéw za 1H 2021. 15 wrzesnia 2021 r.
Slide 2: Presentation agenda: Summary
Presentation agenda 1. Summary Performance Outlook p. 3 2
Slide 3: The most important events
The most important events ▪ The renovation boom in May and June 2020, a one-off event. Following the return of consumer behaviour on the decorative products market to the pre-pandemic state, the performance of the 2021 season ought to be assessed against the background of the 2019 season. ▪ While an
Slide 4: Presentation agenda: Environment
Presentation agenda 2. Environment Performance Outlook p. 5-8 4
Slide 5: Macro 1/4 (inflation in major markets)
Macro 1/4 (inflation in major markets) 9,9 9,5 9,4 9,5 8,7 8,5 8,5 8,4 8,6 7,7 7,5 6,1 5,1 5,1 5,3 4,7 4,4 4,3 3,7 3,1 3,2 2,6 2,7 2,4 I 2021 II 2021 III 2021 IV 2021 V 2021 VI 2021 Polska Węgry Ukraina Białoruś 5
Slide 6: Macro 2/4 (GDP in major markets)
Macro 2/4 (GDP in major markets) 17,9 11,1 5,4 1,1 -0,2 -0,5-0,2 -0,9 -1,7 -2,1-2,2 -3,3 -3,5 -2,7-3,5 -4,6 -8,3 -11,2 -13,3 II kw. 2020 III kw. 2020 IV kw. 2020 I kw. 2021 II kw. 2021 Polska Węgry Ukraina Białoruś 6
Slide 7: Macro 3/4 (currencies: EUR/PLN and USD/PLN)
Macro 3/4 (currencies: EUR/PLN and USD/PLN) In the first half of this year the zloty remained consistently weak against the euro and the dollar. The euro was at the end of the first half of 2021 at the level of 4.5208 (+1.2% y/y), and the dollar at 3.80035 (-4.0% y/y). 7
Slide 8: Macro 4/4 (currencies: HUF/PLN and UAH/PLN)
Macro 4/4 (currencies: HUF/PLN and UAH/PLN) The Hungarian forint exchange rate fluctuated in the first half of 2021, maintaining limited volatility in the range 1.24 and 1.30 (PLN per 100 HUF). Since the beginning of this year the Hungarian currency has appreciated against the Polish zloty by approx
Slide 9: Presentation agenda: Performance
Presentation agenda 3. Performance Performance Outlook p. 10-19 9
Slide 10: Summary
SNIEZKA GROUP a PLN 409.5 million of revenues (-5.0% y/y) PLN 39.0 million of net profit (-25.6% y/y) 15.5% of EBITDA margin (-3.2% y/y) Summary Maintaining last year's good performance on the Polish market. Lower sales revenues (after conversion into PLN - which had a negative impact when the perfo
Slide 11: The key market: Poland
The key market: Poland -0.2% decrease in sales 1H 2021/1H 2020 11
Slide 12: Key foreign markets
Key foreign markets -14.3% decrease in sales 1H 2021/1H 2020 -5.7% decrease in sales 1H 2021/1H 2020 -32.8% decrease in sales 1H 2021/1H 2020 12
Slide 13: Geographical structure of revenues
Geographical structure of revenues (in PLN ‘000) 1H of 2021 1H of 2020 change (y/y) Sales revenues of the Śnieżka Group by product categories 409 514 431 095 -5.0% Total sales Sales revenues of the Śnieżka Group by product categories Total sales 409 514 431 095 -5.0% 13
Slide 14: Revenues in key markets
Revenues in key markets -0.2% -14.3% 1H 2021/1H 2020 1H 2021/1H 2020 278,8 278,1 85,0 72,8 1H 2020 1H 2021 1H 2020 1H 2021 -5.7% -32.8% 1H 2021/1H 2020 1H 2021/1H 2020 38,3 36,1 13,0 8,7 1H 2020 1H 2021 1H 2020 1H 2021 14
Slide 15: Profit and Loss Account (key items): 1H of 2021
Profit and Loss Account (key items): 1H of 2021 1H of 2021 1H of 2020 change (y/y) 15
Slide 16: Profit and Loss Account (key items): Q2
Profit and Loss Account (key items): Q2 of 2020 Q2 of 2021 Q2 of 2020 change (y/y) 16
Slide 17: Financial ratios
Financial ratios 18,7% 14,9% 15,5% 11,2% 12,2% 9,5% 1H 2020 1H 2021 1H 2020 1H 2021 1H 2020 1H 2021 -3.7% -3.2% -2.7% 17
Slide 18: Cash flow
Cash flow In the first half of 2021, the Group generated positive cash flows of PLN 13,878 thousand. As a result, at the end of this period, the Group's cash amounted to PLN 29,668 thousand. Positive cash flows from operating activities Their level was positively influenced by the profit generated b
Slide 19: Balance
Balance (in PLN million) 30.06.2021 30.06.2020 change (y/y) 19
Slide 20: Presentation agenda: Outlook
Presentation agenda 4. Outlook Performance Outlook p. 21 20
Slide 21: Outlook for the second half of 2021 (short-term)
Outlook for the second half of 2021 (short-term) ▪ On the one hand, deteriorating consumer confidence (visible, for example, in the GfK Consumer Confidence Barometer), a probable reduction in purchasing power, a greater propensity to save and limiting larger expenses may result in a reduction in out
Slide 22: Presentation agenda: Enclosures
Presentation agenda Enclosures Outlook p. 29-37 22
Slide 23: Selected financial information
Selected financial information Consolidated Standalone (in PLN ‘000) As at/period 6 As at/period 6 (in PLN ‘000) As at/period 6 As at/period 6 month ended month ended month ended month ended 30 June 2021 30 June 2020 30 June 2021 30 June 2020 409 514 431 095 Net sales revenues 241 382 308 728 Profit
Slide 24: Seasonality
Seasonality The industry features the phenomenon of seasonality, related to the intensity of renovation and construction works in particular periods of the year, (it is higher in spring and summer). The Group usually generates higher revenues in the second and third quarters of each financial year.
Slide 25: Production sites and capacity
190 BELARUS million Zhodino near Minsk kilograms of products per annum POLAND UKRAINE Yavoriv POLAND HUNGARY Brzeźnica Bócsa Lubzina Pustków Radom HUNGARY UKRAINE BELARUS 25
Slide 26: The key market: Poland
The key market: Poland The main players operating on the market of paint products and wood protection agents in Poland (which together account for over 80% of sales) are as follows: ▪ The Śnieżka Group, ▪ PPG Deco Polska, ▪ AkzoNobel Polska ▪ Tikkurila Polska (controlled by PPG since June 2021). 6.2
Slide 27: Market: other key manufacturers operating in Poland
Market: other key manufacturers operating in Poland 27
Slide 28: Raw materials for the production of paint
Raw materials for the production of paint Approximate, averaged share of raw materials in the production of paints * Core raw materials: 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
Slide 29: Our key brands 1/2
Our key brands 1/2 The products addressed to the most demanding customers, who value quality and style. The portfolio of this innovative premium brand includes high quality ceramic paints featuring colour durability, remarkable colour range, resistance to stains and dirt as well as heavy duty purpos
Slide 30: Our key brands 2/2
Our key brands 2/2 A top quality brand for wood protection and decoration. The brand's offer has been prepared for all of those who are willing to take care of wood used both indoors or outdoors in a comprehensive manner. The brand portfolio includes, inter alia,: high-quality preservatives ensuring
Slide 31: Selected awards and distinctions
Selected awards and distinctions „European Coatings” ranking The Śnieżka Group took 23rd position (up from 24th) in the prestigious ranking of the "European Coatings" magazine. The ranking summarized the results of the largest European manufacturers of paint and varnish products for 2020. Śnieżka is
Slide 32: 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 33: FFIL Śnieżka SA / Nobili Partners contacts
Fabryka Farb i Lakierów Śnieżka SA the company’s seat: 00-845 Warszawa, Al. Jana Pawła II 23; mailing address: 39-207 Brzeźnica, ul. Dębicka 44 FFIL ŚNIEŻKA SA Aleksandra Małozięć phone: +48 667 660 399 NOBILI PARTNERS Sp. z o.o. Marcin Gliński phone: +48 513 284 119