230 likes | 546 Views
Successful Q3 2002 Positive prospects for 2003 Warsaw, 4 November 2002. Presentation Plan. Current operational activity and growth prospects Purchase of assets from the company Erg Pak Repayment of Alumetal’s liabilities Summary.
E N D
Successful Q3 2002 Positive prospects for 2003 Warsaw, 4 November 2002
Presentation Plan • Current operational activity and growth prospects • Purchase of assets from the company Erg Pak • Repayment of Alumetal’s liabilities • Summary
quarter performance improved by 40% versus market expectations* change of the 2002 forecast – net profit improved from PLN42m up to at least PLN47m - EPS PLN5.3 At PLN11.4mn from one of our competitors – 2003 year orders secured finalization of the sale transaction of Alumetal (PLN8mn paid on 29 October) */ according to Rzeczpospolita daily Core elements Operational profit +42% Net profit +45%
Recollection of the expansion strategy for 2002 - 2004 • Expansion of activity of the three core segments • Maintaining the leading position on the Polish market • Active penetration of the neighbouring markets • Optimization of processes in the Group itself as to reduce costs • Further investment projects in new technology • Payment of divideng for shareholders due to termination of the strategic investment scheme
Extruded Product Segment EPS sales [in PLN million ] • sales volume growth by more than 9% up to a level of around 18,000 tonnes • strengthening of the market leading position – estimated market share of 52% w versus 50% in the year 2001 • aluminium prices lowered by around 7% • capacity utilisation level of 70 - 75% • further diversification of exports sales to other regions than Germany
EPS Exports Markets GERMANY 50% DENMARK 3% LITHUANIA 5% CZECH REP. 12% AUSTRIA 4% HOLLAND 8% UK 2% HUNGARY 1% ITALY 13% OTHERS 2%
Aluminium System Segment • market share growth from 40% in 2001 up to 45% • stable position of the Segment on the Polish market • a 25% growth of the exports share • strong position of the Segment in the Ukraine ASS sales [in PLN million]
ASS Exports Markets RUSSIA 7% BELARUS 16% UKRAINE 48% LITHUANIA 6% CZECH REP. 4% HUNGARY 19%
Flexible Packaging Segment FPS sales [in PLN million] • sales volume growth by more than 13% up to a level of 9,300 tonnes • market share growth up to a level of 21% versus 17% in the year 2001 • closer collaboration with multinational concerns • growth of exports by almost 50% • capacity utilisation level of 85 - 90%
FPS Exports Markets RUSSIA 38% BELARUS 14% UKRAINE 7% LATVIA 2% CZECH REP. 20% ROMANIA 12% OTHERS 7%
Capital Group • Grupa Kęty saw improved sales proceeds despite a lower aluminium price level by 7% in y-o-y comparison • further optimization of operational costs • lower financial costs Consolidated sales [in PLN million] Employment level in the Capital Group Consolidated profit [in PLN million]
lowering of the receivables’ level at still growing sales substantial improvement in the inventory management Substantial improvement in the working capital Sales +13% Inventory Receivables -3% -16%
Safe indebtedness ratio of the Capital Group • despite PLN80mn expenses to buy-back own stock and pay dividend – indebtedness rose only by PLN50mn • net indebtedness to fall to PLN120mn until the end of year Indebtedness [in PLN million] Growing cash flows Loan structure by currency – IX ‘02
Presentation Plan • Current operational activity and growth prospects • Purchase of assets from the company Erg Pak • Repayment of Alumetal’s liabilities • Summary
Why the decision on this investment was taken? • continuous growth of packaging sales: from 8.5 thousand tonnes in 1998 up to more than 12 thousand tonnes in the year 2002 • increasing requirements of the customers on number of colours placed on the packaging • capacity utilisation of printers has reached almost its top level
Assets purchased • Transaction value – PLN11.4mn + VAT • Core machinery • 2 rotogravure printers (9 i 10 colour) • 2 laminators 3. Localization: Oława 4. Basing on these assets a Grupa Kęty subsidiary will be registered
Presentation Plan • Current operational activity and growth prospects • Purchase of assets from the company Erg Pak • Repayment of Alumetal’s liabilities • Summary
Repayment of receivables from the company Alumetal Receivables as at 31. 12.2001 • PLN15.5mn due to purchase of own shares, PLN7.5mn as a provision included • PLN4mn due to current payments, the whole sum is overdue Receivables as at 31.10.2002 • receivables due to purchase of own shares • PLN8mn provided as cash payment, • PLN4.5mn repaid in the form of Alumetal’s receibables (provision was kept until the repayment date), • PLN3mn covered with provision was extinguished • PLN4mn due to current payments, PLN2mn is overdue
Presentation Plan • Current operational activity and growth prospects • Purchase of assets from the company Erg Pak • Repayment of Alumetal’s liabilities • Summary
Grupa Kęty sees expansion prospects • large-size extrusions – capacity utilisation of 35% - new shift should boost sales by PLN20 – 30mn/annum • hard alloys – investment expenditures of PLN20mn – 30mn – double output figures should result in sales improved by PLN40mn – 50mn • improved sales figures of thin-gauge foils (capacity utilisation of 60%) – sales may rise from PLN10mn up to PLN20mn per year • we expect both EBITDA and net profit figures to rise by 20% in the year 2003
Summary • Consistency in fullfilment of the adopted strategy • Prospects of higher sales and profit figures • Stable operational cash-flow and lowering indebtedness ratio • Termination of the strategic investment scheme • Prospects of substantial dividend payments for the shareholders EPS LONG-TERM GROWTH PROSPECTS OF THE COMPANY VALUE