Top Banner
www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003
18

Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

Mar 26, 2015

Download

Documents

Ariana Kidd
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

1

H1 2003 Results: Above Target

Higher Profit Guidance for 2003

September 2003

Page 2: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

2

Current Busines Activities

FlexiblePackaging

ExtrudedProducts

AluminiumSystems

AdditionalActivities

OthersThree Main Businesses

28% 20%41% 11%

89% INCOME FROM SALES

Page 3: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

3

Recollection of the expansion strategy for 2002 - 2004

1. Expansion of activity of the three core segments

EPS - development of hard alloys and large sized products (press 4400 MN)

FPS – new products based on thin aluminium foils

ASS – new systems (fire resistant)

2. Maintaining the leading position on the Polish market through continuous improving the

quality of the products manufactured and offering new products

3. Aggressive expansion of export to further diversify market risk and enhance capacity

utilisation

4. Continued cost cutting program enabling profit growth

centralization of administrative functions (accounting, finances)

activities related with logistics and production

5. Further investment projects in new technology as well as analysis of acquisitions within the

basic Segments

6. Dividend policy - pay out ratio of 50% of consolidated net profit

Page 4: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

4

Overview of the 2000-2002 Performance

[mn PLN] 2000 2001 2002

Sales 640 583 623

EBITDA 72 85 115

EBIT 50 58 81

Profit before tax 32 50 61

Net profit 21 39 47

Investment expenditures

110 74 29

Page 5: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

5

Summary of the 2003 results

[mn PLN] 2Q 2003 2Q 2002 Change

Sales 186,4 137,5 35,6%

EBITDA 32,4 26,2 23,7%

EBIT 23,6 17,6 34,1%

Profit before tax 21,7 12,3 76,4%

Net profit 17,9 10,7 67,3%

Investment expenditures

5,3 4,4

H1 2003 H1 2002 Change

353,1 279,8 26,2%

60,5 49,1 23,2%

42,9 31,8 34,9%

40,7 24,3 67,5%

33,1 21,3 55,4%

9,6 15,2

Page 6: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

6

Extruded Product Segment

130,9

168,1

12,622,3 26,4

43,2

65,2

88,0

-30

20

70

120

170

Q22002

Q22003

H12002

H12003

Q22002

Q22003

H12002

H12003

Sales including export

EPS sales [in PLN milion]• 16% sales volume growth in H1 2003

• Segment's leading position on the market

• 40% growth of exports in H1 2003

• 10% growth of domestic sales in H1 2003

• Capacity utilisation at 75%–85%

• Further diversification of exports to markets other than Germany

Page 7: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

7

EPS Exports Markets

LITHUANIA 6%

DENMARK 3%

GERMANY 39%

HOLLAND 7%

CZECH REP. 8%

ITALY 14%

SLOVAKIA 4%

OTHERS 14%

USA 5%

Page 8: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

8

Aluminium System Segment

• Segment's leading position on the market

• 50% growth of exports in H1 2003

• 25% growth of domestic sales in H1 2003

• Strong position in the Ukraine

28,2

41,4

52,6

67,5

2,7 4,2 4,8 7,1

- 10

10

30

50

70

Q22002

Q22003

H12002

H12003

Q22002

Q22003

H12002

H12003

Sales including export

ASS sales [in PLN million]

Page 9: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

9

ASS Exports Markets

LITHUANIA 5%

UKRAINE 33%

BELARUS 5%

HUNGARY 12%

CZECH REP. 7%

RUSSIA 31%

SLOVAKIA 7%

Page 10: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

10

Flexible Packaging Segment

• 14% sales volume growth in H1 2003

• Stabile position on the Polish market, sales growth by 6% in H1 2003

• 42% growth of exports in H1 2003

• Capacity utilisation at 70%–80%

38,5

51,1

80,9

98,4

10,115,9 18,6

28,9

- 20

20

60

100

Q22002

Q22003

H12002

H12003

Q22002

Q22003

H12002

H12003

Sales including export

FPS sales [in PLN million]

Page 11: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

11

FPS Exports Markets

UKRAINE 8%

BELARUS 5%

OTHERS 6%

HUNGARY 4%

CZECH REP. 21%

RUSSIA 36%

KAZACHSTAN 7%

LITHUANIA 7%

ROMANIA 6%

Page 12: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

12

Capital Group

• Stable domestic sales

• Increasing export

• Stable margins in each of the core business segments

• Effective tax rate continues below nominal

137,5

186,4

279,8

353,1

25,2 42,6 49,879,3

0

100

200

300

400

Q22002

Q22003

H12002

H12003

Q22002

Q22003

H12002

H12003

Sales including export

Consolidated sales [in PLN million]

17,623,6

31,8

42,9

10,7

17,921,3

33,1

0

10

20

30

40

50

Q22002

Q22003

H12002

H12003

Q22002

Q22003

H12002

H12003

EBIT Net profit

Consolidated profit [in PLN million]

12,8 12,711,4 12,1

7,89,6

7,69,4

0

10

Q22002

Q22003

H12002

H12003

Q22002

Q22003

H12002

H12003

Margins EBIT Margins Net

Consolidated margins [in %]

Page 13: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

13

Improvement in the working capital

• Stable receivables at still growing sales

• Further improvement of the receivable’s term structure

156165,4

100

200

H1 2002 H1 2003

Receivables

80 80,3

0

100

H1 2002 H1 2003

Inventory

137,5

186,4

279,8

353,1

0

100

200

300

400

Q2 2002 Q2 2003 H1 2002 H1 2003

Sales

+36%

+6%

+26%

Page 14: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

14

Safe indebtedness ratio of the Capital Group

USD0,3%

PLN91,3%

EUR8,4%

Loan structure by currency - IIQ ‘03

Indebtedness [in PLN mn]102,0

82,0 77,0 74,8

19,029,0

56,0

13,9

0

40

80

120

XII 2001 VI 2002 XII 2002 VI 2003

Long-term Short-termStable operating cash-flow

• Further decrease of debt of the Capital Group – net debt below 60 PLN million

• Safe currency structure of the debt

• Falling costs of debt – below 6%

• Stable operating cash flow

0

5

10

15

20

25

30

35

40

45

50

Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03

Page 15: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

15

Higher Profit Guidance for 2003

[mn PLN] 2002 2003E Change

Sales 623,7 710,0 13,8%

EBITDA 115,4 130,0 12,6%

Net Profit 47,1 65,0 38,0%

Page 16: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

16

Drivers of the Higher Guidance

1. Stronger sales – Flexpol’s effect on the consolidated sales

2. Stable margins

3. Lower financing costs

4. Effective tax rate continues below nominal (18 – 19% in

2003)

Page 17: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

17

Flexpol Disinvestment

1. Huge investment needs – in excess of PLN 100 million

2. Products with low added value – raw material for flexible packaging

3. Low level of operational synergies with Kęty Group – less than 5% of the total output of Flexpol transferred to the Kęty Group

0

10

20

30

40

50

60

70

2000 2001 2002

Sales Net profit

Flexpol results

Page 18: Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.

www.gk-kety.com.pl

18

Summary

LONG-TERM GROWTH PROSPECTS OF THE COMPANY VALUE

LONG-TERM GROWTH PROSPECTS OF THE COMPANY VALUE

1. Consistent performance under the adopted strategy

2. Prospects of higher sales and profit figures

3. Stable operation cash-flow and improving debt ratios

4. Completed strategic investment plan

5. Prospects of substantial dividend payments for the shareholders

0

2

4

6

8

2000 2001 2002 2003F

EPS