Update of the investment plan for the years 2021–2025 and adjustment of basic financial assumptions projected for 2025, as presented in the Strategy 2021–2025

In relation to the market trends and the resulting high levels of utilisation of the currently possessed production capacity as well as the favourable perspectives for the further growth of sales, the Management Board of Grupa Kęty S.A. made a decision on updating the investment plan for the years 2021-2025, as presented in the Strategy of the Grupa Kęty S.A. Capital Group for the years 2021–2025 (‘Strategy’), and submit the update to the Supervisory Board for acceptance. With regard to approval of the requested update by the Supervisory Board in the meeting held on 30 July 2021, the Management Board discloses the above information in public. Scope of the update:

1. Increase of capital expenditures in the Extruded Products Segment by PLN 188 million, to PLN 692 million, to be spent on:
   1. extension of the production capacity of Grupa Kęty S.A. by way of construction of a production and warehouse hall complete with infrastructure, and purchase of a 4000 T press. Apart from the 4000 T press, the aforesaid hall will house a 2000 T press, the purchase of which has been included in the Strategy;
   2. extension of the production capacity of Aluminium Kety Emmi by way of construction of a production line intended for the production of aluminium profile components, mainly for the automotive market.
2. Increase of capital expenditures in the Aluminium Systems Segment by PLN 68 million, to PLN 492 million, to be spent on:
   1. construction of a production and warehouse hall comprising the whole production process of coating, crimping and storing aluminium profiles, complete with infrastructure;
   2. adjustment of the other items referring mainly to the logistics area and resignation from one task which refers to increasing the scope of production within the Segment.

The total value of the assumed capital expenditures in the years 2021–2025 will amount to PLN 1,321 million after the adjustment.

The Management Board estimates that 90% of the additional expenditures will be spent by the end of 2023. By the end of the same year (2023), launching of the new production capacity created under the programme has also been planned.

The above presented adjustments to the investment plan shall affect the basic financial assumptions projected for the year 2025, as presented in the Strategy 2021–2025, in the following manner:

1. increase of sales by PLN 506 million, to PLN 5,143 million;
2. increase of EBITDA by PLN 77 million, to PLN 864 million;
3. increase of profit on operating activities by PLN 52 million, to PLN 650 million;
4. increase of net profit by PLN 38 million, to PLN 508 million;
5. increase of net debt by PLN 279 million, to PLN 919 million, owing to higher capital expenditures, higher demand for working capital and higher value of the assumed dividends in the Strategy period, which results from the planned higher profits.

The adjustment of the basic financial parameters presented in the report has been prepared based on the macroeconomic assumptions which have been used in preparing the Strategy 2021–2025.

In the presented values, the effect of the possible recognition of deferred tax asset in the event of implementing the above mentioned projects, in consideration of tax allowance, has not been taken into account.

The projects will be financed with bank loans and income on the operating activities.