Preliminary results for the fourth quarter

The Management Board of Grupa Kęty S.A., according to the announced calendar of corporate events, hereby publishes preliminary forecasts of results for the fourth quarter of 2017

The Management Board confirms that the business conditions continue to be very good. It positively affects sales growth both on the Polish market and on other European markets. Estimated sales revenue growth rate is even higher than in the third quarter, in which the best results are usually recorded. This situation may support the assumptions that the next year the demand will not be lower and further market development will be possible. In the fourth quarter of 2017, particular segments of the Group recorded the following revenue growths as compared to the corresponding period of 2016:

• Extruded Products Segment – an increase by 16%
• Aluminium Systems Segment – an increase by 14%
• Flexible Packaging Segment – an increase by 30%

As estimated by the Management Board, consolidated sales revenue will amount to 650 million PLN, i.e. will be 18% higher than in the corresponding period of 2016. Consolidated operating profit in the fourth quarter will increase from 50.2 million PLN recorded last year to ca. 60.0 million PLN (+20%) in the present year. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) will increase from 83.8 million PLN to ca. 92.0 million PLN (+10%). The balance of financing activities in the fourth quarter (interest expense, exchange rate differences on balance sheet items valuation, including foreign currency loans) will be negative and amount to ca. 3 million PLN (in the fourth quarter of 2016, the balance was -4.7 million PLN). Estimated consolidated net profit for the fourth quarter will amount to ca. 46 million PLN, i.e. only 2 million PLN less than in the fourth quarter of the previous year, in which the Group recognised ca. 11 million PLN of income tax asset, which increased the profit for this quarter on a one-off basis. According to estimates, at the end of 2017, the Group’s net debt will amount to ca. 570 million PLN, thus it will be higher by ca. 180 million PLN than the figure recorded after the third quarter. Higher debt results mainly from the payment of the second part of dividend and the implemented investment programme.

The above forecast was prepared on the basis of the following assumptions.