Preliminary results for the second quarter of 2017

The Management Board of Grupa Kęty S.A., as scheduled in the corporate events calendar, hereby publishes preliminary forecasts concerning the results for the second quarter of 2017.

In the second quarter, the Company continued the positive trends concerning the sales growth in particular business segments of the Group. Persisting favourable business conditions and the revenue from new companies in the Group result in sales growth both in Poland and on international markets. As estimated by the Management Board, consolidated sales revenue in the second quarter is estimated at 675 million PLN, i.e. 20% higher than in the corresponding period of 2016. All three Segments estimate the sales growth rate at ca. 30%.

High sales were accompanied by high profitability. As estimated by the Management Board, consolidated operating profit in the second quarter will increase from 75.4 million PLN recorded last year to ca. 82.0 million PLN (+9%) in the present year. Consolidated profit at EBITDA level (earnings before interest, taxes, depreciation and amortisation) will increase from 101.1 million PLN to ca. 112.0 million PLN (an increase by ca. 11%). The balance of financing activities in the quarter (costs of interest, exchange rate differences on balance sheet items valuation, including foreign currency loans) will be negative and amount to ca. 2 million PLN (in the second quarter of 2016, the balance amounted to +0.3 million PLN). Consolidated net profit for the second quarter will amount to ca. 66 million PLN (a decrease by 23 million PLN as compared to the previous year), but the Management Board would like to note that, in the second quarter of 2016, the Company recognised ca. 25 million PLN of income tax asset, which resulted in a one-off increase in profit for this quarter. According to estimates, at the end of June 2017, the Group’s net debt will amount to ca. 415 million PLN, thus it will be similar to the figure recorded at the end of the first quarter of 2017.

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