Grupa Kety Sa · GPW:KTY
Grupa Kety Sa — Q1 2019 Earnings Presentation
30 slides from Grupa Kety Sa's earnings presentation, 2019
Slide 1: Q1 2019 Earnings Presentation
Q1 2019 EARNINGS PRESENTATION DARIUSZ MAŃKO ADAM PIELA PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ CHAIRMAN OF THE BOARD BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER
Slide 2: A Few Words on Q1
A FEW WORDS ON Q1 DARIUSZ MAŃKO CHAIRMAN OF THE BOARD 2
Slide 3: A Positive Surprise at the Beginning of the Year
A POSITIVE SURPRISE AT THE BEGINNING OF THE YEAR High rate of the sales growth (approx. 15%). The increase in operating profit and EBITDA in line with the assumptions, by 3% and 5%, respectively. The outlook for the second quarter is still good. 3
Slide 4: Macro Factors in the 1st Quarter
MACRO FACTORS IN THE 1st QUARTER Aluminium price in USD and PLN 2700 9000 2500 Demand remains at a high level. 2300 8000 2100 1900 7000 The average price of aluminum converted to PLN 1700 decreased in the first quarter by 3% y/y. 1500 6000 AL (USD) AL (PLN) Exchange rates EUR/PLN and USD/PLN 4,6 An
Slide 5: High Dynamics of Sales
HIGH DYNAMICS OF SALES Sales by segments (PLN mn) +15% 800,0 778,9 674,8 600,0 +10% +24% 400,0 All segments achieved very good sales results. +12% 326,5 328,8 296,4 200,0 264,9 200,4 178,4 0,0 EPS ASS FPS Consolidated 1Q 2018 1Q 2019 Geographical structure of sales (PLN mn) 900 + 20% The domestic ma
Slide 6: Segments' Operating Activities
SEGMENTS’ OPERATING ACTIVITIES PIOTR WYSOCKI TOMASZ GRELA RAFAŁ LECHOWICZ BOARD MEMBER BOARD MEMBER BOARD MEMBER 6
Slide 7: Extruded Product Segment
EXTRUDED PRODUCT SEGMENT PIOTR WYSOCKI BOARD MEMBER 7
Slide 8: Extruded Product Segment – record sales, but the market is difficult
EXTRUDED PRODUCT SEGMENT– record sales, but the market is difficult Monthly volume sales 8000 Q1_2019 Q1_2018 change 3Q_2018 3Q_2017 zmiana 7000 Total sales 326,5 296,4 10% 976,2 6000 876,3 11% Domestic 185,0 165,4 12% 535,5 476,6 12% 5000 Export 141,4 130,9 8% 440,7 399,7 10% 4000 3000 Volume sales
Slide 9: Extruded Product Segment – projects in the automotive industry
EXTRUDED PRODUCT SEGMENT– projects in the automotive industry Maintaining a high level of production of thresholds for Mercedes G Series - 14 750 pcs. / Q1 2019. Production of automotive frame parts for Land Rover Defender 2019 - prototyping phase. 9
Slide 10: Extruded Product Segment – investment projects
EXTRUDED PRODUCT SEGMENT– investment projects The total The amount Implementati The amount Pozycja amount of planned for on for 2019 planned (dane w mln zł) the project 2019 after 1Q after 2019 Counter-rotating press for hard alloys + ingot scaleer 45,0 9,5 2,2 0,0 Anodizing line – the second unit 4
Slide 11: Aluminum Systems Segment
ALUMINUM SYSTEMS SEGMENT TOMASZ GRELA BOARD MEMBER 11
Slide 12: Aluminium Systems Segment – successful quarter, good prospects
ALUMINIUM SYSTEMS SEGMENT– successful quarter, good prospects Q1 2019 Q1 2018 change Sales 328 771 264 851 24% Domestic 216 698 160 216 35% Export 112 073 104 635 7% EBITDA 45 774 38 849 18% Net profit 28 349 22 025 29% Very good situation on the domestic market. On major European export markets (Cz
Slide 13: Aluminium Systems Segment – development of fire protection systems
ALUMINIUM SYSTEMS SEGMENT– development of fire protection systems First sale of fire protection products to Africa – Senegal B15 laboratory tests in Belfast for products designed for ships Assembly of the test furnace in Segment’s Research Center - planned completion with acceptance tests in June 20
Slide 14: Aluminium Systems Segment – US market
ALUMINIUM SYSTEMS SEGMENT– US market Completion of the first phase of standard systems testing for the US and Canada Closing of the 125 Greenwich facility The new project B15 US Greenwitch 125- project closing US B15 –new projct 14
Slide 15: Aluminium Systems Segment – selected objects acquired in Q1
ALUMINIUM SYSTEMS SEGMENT– selected objects acquired in Q1 Kraków - SELVITA Warszawa - Cavatina Poland Warszawa -Art Norblin Warszawa -DSV 15
Slide 16: Aluminium Systems Segment – selected objects acquired in Q1
ALUMINIUM SYSTEMS SEGMENT– selected objects acquired in Q1 Zalmhaven - The Netherlands, Rotterdam Tax office building, Germany Central and Western Europe Embassy Gardens, UK Babak, Czechia 16
Slide 17: Aluminium Systems Segment – selected objects acquired in Q1
ALUMINIUM SYSTEMS SEGMENT– selected objects acquired in Q1 Perła 38, Ukraine Kandinsky, Ukraine, Odessa Eastern Europe Nikolskiy, Ukraine, Kharkov Litgrid, Lithuania, Vilnus 17
Slide 18: Flexible Packaging Segment
FLEXIBLE PACKAGING SEGMENT RAFAŁ LECHOWICZ BOARD MEMBER 18
Slide 19: Flexible Packaging Segment – best quarter in the history of the Segment
FLEXIBLE PACKAGING SEGMENT - best quarter in the history of the Segment PLN mn 1Q 2018 1Q 2019 change y/y Sales 178,4 200,4 + 12% Domestic 100,3 107,9 + 8% Export 78,1 92,5 + 18% EBIT 23,2 29,0 + 25% EBITDA 30,3 36,1 + 19% EBITDA margin FPS 17,0% 18,0% EBITDA margin - PACKAGING (73% of total sales o
Slide 20: Flexible Packaging Segment – increases in leading sectors
FLEXIBLE PACKAGING SEGMENT– increases in leading sectors + 12% + 21% INSTANT FOOD (41% of total sales) FRESH FOOD (6% of total sales) + 3% + 11% CONFECTIONERY AND BREAKFAST CEREALS (7% of total sales) BOPP FILMS (27% of total sales) * OTHER – FAT PRODUCTS, DIARY PRODUCTS, HOUSEHOLD CHEMICALS, PET FO
Slide 21: Flexible Packaging Segment – increases on all markets
FLEXIBLE PACKAGING SEGMENT– increases on all markets + 8% + 16% POLAND (54% of total sales) WESTERN EUROPE (27% of total sales) + 20% + 23% CENTRAL EUROPE (10% of total sales) EASTERN EUROPE (9% of total sales) 21
Slide 22: Flexible Packaging Segment – investment projects
FLEXIBLE PACKAGING SEGMENT– investment projects PLN mn 2019 forecast after 1Q’19 BOPP line – second unit 79,6 7,5 Other 4,7 0,4 Total 84,3 7,9 Architect visualization Current status 22
Slide 23: Consolidated Results
CONSOLIDATED RESULTS ADAM PIELA BOARD MEMBER 23
Slide 24: Operating Profit – level exceeding the assumptions for the first quarter
OPERATING PROFIT – level exceeding the assumptions for the first quarter PLN mn 1Q 2019 1Q 2018 change 1-3Q 18 1-3Q 17 zmiana Revenues 778,9 674,8 +15% 2 235,2 1 982,3 +13% Operating profit 76,6 74,5 +3% 278,3 249,9 +11% margin 9,8% 11,0% 12,4% 12,5% EBITDA 110,1 105,1 +5% 371,9 339,2 +10% margin 14
Slide 25: Cost Increase Under Control
COST INCREASEMENT UNDER CONTROL PLN mn Q1 2019 Q1 2018 change 1-3Q 2018 1-3Q 2017 zmiana Sales revenues 778,9 674,8 +15% 2 235,2 1 982,3 +13% change in inventories -8,8 13,5 412411 4444444 55445445 cost of products used for own purposes 2,5 2,6 445545445 5555 555555 Total operating costs, including:
Slide 26: Over PLN 123 Million Cash from Operating Activity in the 1st Quarter
OVER PLN 123 MILLION CASH FROM OPERATING ACTIVITY IN THE 1ST QUARTER Working capital (PLN mn) PLN mn 1Q_2018 2Q_2018 3Q_2018 4Q_2018 1Q_2019 + 10% yoy Working Capital 748 800 825 797 827 900 Inventories 476 497 514 509 486 800 825 797 825 Receivables 531 583 588 532 623 748 Liabilities 258 280 277 2
Slide 27: Stable Financing
STABLE FINANCING Bank debt (PLN mn) 900 661,1 654,3 622,7 The increase in debt compared to last year resulting from the 600 469,2 482,3 need to finance the investment program and working capital as 300 well as the payment of dividends. 241,0 231,1 220,8 263,0 165,2 0 1Q_2018 2Q_2018 3Q_2018 4Q_2018
Slide 28: Summary
SUMMARY Very good financial results. Stable outlook for the next quarter. The Management maintains the forecast of results published at the beginning of the year. 28
Slide 29: Supplementary Information
SUPPLEMENTARY INFORMATION VOLUME SALES (thousands of tons) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Extruded Products Segment 18,3 19,8 20,6 16,8 19,4 Flexible Packaging Segment 15,2 14,6 14,9 14,7 16,2 EBITDA per Segment (PLN mn) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Extruded Products Segment 38,8
Slide 30: 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