PL

2021-2025 Strategy

On 16 December 2020, the Management Board passed the Strategy of Grupa Kęty S.A. Capital Group development for the years 2021–2025, which is based on four pillars compliant with the Mission, Vision, and Values of the Group:

1.
Growth of the Group revenue beyond the development of the markets in which it operates
2.
High operating profitability
3.
Performance of development projects
4.
Environmental and social responsibility

When working on the Strategy, the main market, environmental and regulatory trends affecting the particular Segments of the Capital Group were analysed, the pace of market development estimated and the optimal development scenario, in the opinion of the Company Management Board, for each of the Segments determined. The basic conclusion during the work was a confirmation that the Capital Group Segments operate on attractive and prospective markets, whereas the potential generated during the performance of Strategy 2015–2020 enables further organic development.

The Company Management Board assumed operating and financial results as well as, for the first time ever, parametrised and presented the commitment in the ESG (Environmental, Social and Corporate Governance) area in the form of sustainable development goals, which comprises the impact on the environment, safety and development of the Company employees, responsibility within the supply chain and engagement in local communities among the key elements of the Strategy performance.

Our strategy is based on organic development. About 50% of the whole capital expenditure budget, amounting to PLN 1.3 million, will be spent on development projects in the years 2021–2025. Therefore, it is natural that we focus on our production and improvement potential. We have been constantly searching for solutions improving our processes in all areas of operation. Such activities will help us maintain high profitability and effectiveness.

Dariusz Mańko

President of the Management Board

The Strategy of the Extruded Products Segment (EPS) assumes systematic increase of share in the European market through:

  • doubling the sales of processed products, i.e. components for the automotive and transport sectors;
  • selective expansion on the target European markets (intensified sales and marketing activities);
  • systematic increase of production capacity to the level of about 110,000 tons in 2025, which enables higher flexibility in customer service.

The estimated average annual pace of market development in the period 2021–2025 was determined at the level of ca. 2%, whereas the Segment plans to generate 4.8% increase by quantity and 6.3% increase by value.

One of the Segment priorities is the maintenance of high level of operating profitability with growing revenues, thanks to utilisation of its production capacity and a continuous efficiency improvement process. Assumed has been the generation of over 10% EBITDA growth per employee in the period of the Strategy performance.

About 43% of the whole capital expenditure budget of the Segment, amounting to PLN 504 million, will be spent on development projects. The rest of the budget will be spent on current maintenance of infrastructure and production potential.

Owing to high market share in Poland, the sales development of the Aluminium Systems Segment (ASS) within the Strategy horizon is based mainly on:

  • intensified foreign sales, particularly on the British and American markets;
  • extension of the offer for new products, e.g. internal or fire-resistant partition structures;
  • investment in activities which extend the chain of the created value;
  • extension of product offer as well as technical and sales support focusing on individual construction business.

The average annual market growth rate was estimated at the level of about 3% (by value). It is, however, the ambition of the Segment to generate roughly 6%, which includes over 9% on foreign markets and ca. 4% in Poland.

The Aluminium Systems Segment shall strive to maintain high operating profitability thanks to systematic improvement of operations effectiveness. EBITDA per employee will increase by 6% in the Strategy period.

Development projects will constitute a majority in the Segment budget. They will represent approximately 61% of the PLN 424 million allocated to projects in the Strategy period. Replacement projects will be worth PLN 166 million.

Owing to a series of changes in the market environment, the Flexible Packaging Segment (FPS) has based its Strategy on the existing production potential. Capital expenditures have been optimised to PLN 82 million in the Strategy period. That will ensure maintenance of flexibility as well as efficient utilisation of plant and machinery. Despite the above, sales goals, considering the adjustment of the base year (2020) resulting from one-off positive effect of the world’s economy lockdown, are equally ambitious as in the other Segments. It has been assumed that the average annual sales growth will be 4.4% in the Strategy period compared to 2% market growth. Over 10% EBITDA growth per employee is assumed for the period of the Strategy performance.

The aforesaid one-off positive effect of the lockdown resulted from breaking the supply chains from Middle and Far East, mainly in the second and third quarters of 2020, which has brought about a significant limitation of plastic film imports from those directions, with simultaneous benefit to the European manufacturers, including FPS. In that period it was possible to generate outstanding results of operation. The effect was estimated as PLN 66 million of sales revenue, PLN 60 million of EBITDA, and PLN 51 million of net profit.

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