PL

2025-2029 Strategy

On 22 April 2025 The Management Board of Grupa Kęty S.A. adopted the Development Strategy of the Capital Group of Grupa Kęty S.A. for the years 2025-2029 (hereinafter referred to as the ‘Strategy’), which was approved by the Supervisory Board.

The strategic objective of the Capital Group for the coming years is to create one of the leading companies in Europe, focusing its operations in the area of aluminium processing and broadly understood construction industry, based on the Architectural Systems Segments and Sun Protection Systems Segment, with production base for aluminium profiles extrusion of the Extrusion Systems Segment.

There is planned a thorough integration of the Extruded Products Segment (EPS), the Architectural Systems Segment (ASS), and the new Sun Protection Systems Segment (SPSS) created based on the acquired SELT Sp. z o.o. as well as the assets of the ASS located in Opole, in order to create one strong and cohesive organisation operating under the ALUPROF brand.

The Strategy performance means even more dynamic development on foreign markets through intensifying the actions up to date in the form of a new structure of ALUPROF INTERNATIONAL. The objective of the new structure will be to manage all foreign companies owned by the Capital Group, effectiveness improvement of that part of the business by way of achieving costs synergies, harmonising the group operations, adopting coherent and uniform processes and tools.

An integral component of the new Strategy will also be development through acquisitions. On the foreign markets the operations in that area will be focused on searching for companies which fit the ASS and the SPSS and contribute do their scalability, specifically by gaining a new market, customers and brand. On the domestic market, acquisitions will mainly apply to extending the value chain for the EPS, and utilisation of the Segment's capacity (construction industry, synergies with the ASS and the SPSS), as well as developing the product offer of the particular segments.

The Strategy provides for further development of the profitable packaging business within the Flexible Packaging Segment (FPS), with the option of selling the Segment in case a situation enabling generation of additional value for the shareholders is identified. During the term of the Strategy, there is planned an investment in the prospective area of operation of that Segment, i.e. the third BOPP production line, with the project completion and production commencement in 2028, and reaching the full capacity of roughly 50,000 tons a year in 2029.

One company, three market segments, high concentration on international operations, structure simplification, separation and strengthening of the foreign business management.

Operating and sales goals of the particular business segments

  • Sales volume of 134,000 tons / income increase from PLN 1.9 billion to 3.0 billion
  • Gradual recovery of the EBITDA margin, to the level of approximately 12% in 2029
  • Sales increase from PLN 1.8 billion to PLN 2.5 billion
  • Maintenance of over 18% EBITDA margin in the long term
  • Income increase from PLN 1.0 billion to PLN 1.5 billion within the Strategy period
  • Complete integration of SELT Sp. z o.o. and attainment of the assumed synergy effects
  • Sales increase from PLN 1.2 billion to 1.7 billion based on the new BOPP film production line
  • Maintenance of approximately 20% EBITDA margin

The adopted Strategy sets out very ambitious financial goals for the Capital Group, foreseeing that during the term of the Strategy the organic growth of consolidated sales will improve by PLN 2.6 billion, to nearly PLN 7.8 billion in the last year of the term, which represents Compound Annual Growth Rate (CAGR) of 8.6%, and increase in the share of foreign sales from about 50% to 54% in 2029.

The expected EBITDA growth in the period is going to be roughly PLN 0.4 billion (7.6% CAGR), and net profit – over PLN 0.2 billion (6.9% CAGR), with maintained high profitability level of 17.3% and 10.1%, respectively, at the end of the Strategy term.

The planned capital expenditure in the years 2025-2029 will jointly reach nearly PLN 1.7 billion, out of which PLN 0.7 billion will refer to development projects serving systematic improvement of processes and development of new technologies and products, in compliance with the operating tasks launched by the Capital Group segments, including stage 2 of the development of the plant in Złotów within the ASS, and construction of the third BOPP line within the FPS.

High cash flows on operating activities of PLN 4.6 billion, despite the planned capital expenditure and maintenance of the current dividend policy foreseeing the payout of 60 100% of consolidated net profit, will enable maintenance of financial ratios on safe level, including net debt at the end of 2029 of PLN 1.6 billion and net debt to EBITDA ratio of 1.2.

Based on the forecasts prepared, there have been estimated alternative example scenarios of attracting funding, with regard to the selected levels of the net debt to EBITA ratio equal 2.0 and 2.5 in the last year of the forecast. Such estimated amounts (PLN 1 billion and PLN 1.7 billion, respectively) may serve the performance of additional projects which have not been provided for in the 2025-2029 Strategy, including acquisitions, the effects of which should have further positive impact on the value of the Capital Group.

We wish to remain a dividend-paying company. Despite the planned capital expenditure, the good financial standing, available finance, and the expected high cash flows on operating activities will enable the Management Board to recommend dividend payment at the level of 85% of consolidated net profit, at the same time creating potential for additional investment projects which have not been foreseen in the financial objectives of the Strategy, including acquisitions.

Main financial objectives of the Strategy

 Consolidated data (PLN millions) 2024 S2029 CAGR (w %)
2029 / 2024
Sales of which: 5,144 7,754 +8.6
– EPS 1,912 2,968 +9.2
– ASS 1,780 2,520 +7.2
– SPSS 830 1,409 +11.2
– FPS 1,184 1,671 +7.1
EBITDA (1) of which: 932 1,345 +7.6
– EPS 217 346 +9.8
– ASS 362 461 +5.0
– SPSS 139 257 +13.1
– FPS 240 325 +6.3
Profit on operating activities 721 1 052 +8.3
Net profit (2) 560 782 +6.9
(1) EBITDA – operating profit plus depreciation and amortisation.
(2) Net profit attributable to owners of the parent.