Due to the accomplishment of a part of objectives to be implemented as part of the strategy for 2015-2020 and measures aiming at the consolidation of smaller business units within the Aluminium Systems Segment, the Management Board of Grupa Kęty S.A. decided to develop and submit to the Company’s Supervisory Board an updated strategy for 2015-2020 (‘2020 Strategy’). In relation to the approval of its basic objectives at the Supervisory Board meeting held on 7 February 2017, the Management Board presents the following information:
The Strategy objectives:
The basic objective of ‘2020 Strategy’ is ensuring steady increase in shareholder value owing to:
Operating and macroeconomic objectives:
On the basis of adopted assumption concerning the prices of raw materials and exchange rates, particular segments forecast the following sales revenue:
Taking the above into consideration, consolidated sales revenue of the Group in 2020 should amount to 3,257 million PLN (+44% as compared to 2016), operating profit to 359 million PLN (+24% as compared to 2016), EBITDA to 506 million PLN (+28% as compared to 2016) and consolidated net profit to 265 million PLN (-4% as compared to 2016).
The above forecasts have been prepared on the basis of the following macroeconomic assumptions:
Changes in the management structure:
The Management Board of Grupa Kęty S.A. intends to take measures to separate the production activities of the Extruded Products Segment from the structures of Grupa Kęty S.A. Grupa Kęty S.A. would remain the holding company listed on Warsaw Stock Exchange with assets in the form of shares and interests in leading companies in each segment.
Investment plan:
The Management Board assumes that, in the period covered by this strategy (taking into account the expenses incurred to date from the beginning of the implementation of the strategy, i.e. from 2015), the capital expenditure will amount to ca. 1,246 million PLN (+316 million PLN as compared to the 2015 strategy and the total of 787 million PLN of spending in 2017-2020), including:
This forecast does not comprise any possible additional expenditure on acquisitions, whose effects are also not included in the forecast of sale and results.
Dividend policy:
The dividend policy adopted by the Supervisory Board of Grupa Kęty S.A. provides for the payment of dividend amounting to 60%-100% of consolidated net profit of Grupa Kęty S.A. during the implementation period of ‘2020 Strategy’. The Management Board assumes that the payment of dividend during the implementation period of ‘2020 Strategy’ strategic plan will amount on average to 80% of consolidated net profit of Grupa Kęty S.A.
The Management Board, when determining the recommended dividend, will take into account, among other things:
Potential acquisitions:
The forecasts until 2020 do not take into account any effects of potential acquisition projects. Nevertheless, the Management Board takes into account two directions of potential acquisitions within existing segments and the establishment of a new segment:
Debt:
In relation to the investment programme being implemented and the planned payment of dividend, the Group’s debt will rise to ca. 820 million PLN at the end of 2018 (ca. 762 million PLN in net terms) and ca. 801 million PLN at the end of 2020 (ca. 682 million PLN in net terms).
Uncertainty risk and the frequency of the evaluation of the strategy accomplishment degree:
These strategy objectives, including the forecasts of future revenue and profits, have been established on the basis of a number of assumptions, expectations and projections and, as a result, are subject to uncertainty risk and may change due to both external and internal factors. The Company will assess the possibility of the implementation of ‘2020 Strategy’ and make any possible adjustments on an annual basis.
