Www.gk-kety.com.pl 1 H1 2003 Results: Above Target Higher Profit Guidance for 2003 September 2003.
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Transcript of 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
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2
Current Busines Activities
FlexiblePackaging
ExtrudedProducts
AluminiumSystems
AdditionalActivities
OthersThree Main Businesses
28% 20%41% 11%
89% INCOME FROM SALES
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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
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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
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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
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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
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EPS Exports Markets
LITHUANIA 6%
DENMARK 3%
GERMANY 39%
HOLLAND 7%
CZECH REP. 8%
ITALY 14%
SLOVAKIA 4%
OTHERS 14%
USA 5%
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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]
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ASS Exports Markets
LITHUANIA 5%
UKRAINE 33%
BELARUS 5%
HUNGARY 12%
CZECH REP. 7%
RUSSIA 31%
SLOVAKIA 7%
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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]
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FPS Exports Markets
UKRAINE 8%
BELARUS 5%
OTHERS 6%
HUNGARY 4%
CZECH REP. 21%
RUSSIA 36%
KAZACHSTAN 7%
LITHUANIA 7%
ROMANIA 6%
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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 %]
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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%
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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
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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%
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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)
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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
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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