Dear Sir or Madam,
Enclosed are the answers to frequently asked questions about the company. (updated in November 2016)
What does Grupa Kęty S.A. do?
Grupa Kęty S.A. is a parent company for the Group composed of three main business segments (24 companies in total, including 13 foreign companies), operating in the following areas:
- the production of aluminium profiles and components (Extruded Products Segment, EPS)
- designing and production of architectural systems and external aluminium shutters, construction and assembly services for aluminium facades and the production of accessories for the assembly of windows and doors (Aluminium Systems Segment, ASS)
- the production of flexible packaging (Flexible Packaging Segment, FPS)
For more information, please go to: Who we are • Grupa Kęty
Who is the Company’s main shareholder?
For the current list of shareholders holding more than 5 % of votes at the General Meeting of Shareholders, please go to: Shares and Shareholders • Grupa Kęty
Does the Company have a permanent dividend policy?
The Company has paid dividend on a regular basis since 2001. 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:
- the Group’s net debt to EBITDA ratio calculated as at the last balance sheet date of the previous financial year with the maximum level of 2.0;
- time shifts of dividends received from subsidiaries affecting the maximum level of recommended dividend;
- the value of potential and feasible acquisitions;
- the value of actual capital expenditure to be made in the year of dividend payment.
What is the strategy of Grupa Kęty S.A.?
For the presentation of the strategy objectives for 2015-2020, please go to: Presentation of the uptade of 2020 Strategy and the forecast for 2017
Where does the Company buy basic raw materials?
Aluminium and semi-finished products from aluminium account for ca. 50 % of the costs of raw materials. These materials are purchased based on the prices of aluminium quoted at the London Metal Exchange (e.g. average monthly prices from the month preceding the delivery date) and our suppliers comprise leading European manufacturers and traders. In addition, the main raw materials for the production of flexible packaging (plastic, paper, aluminium film) are sourced for the most part from the European market.In accordance with our purchasing policy, we have several qualified suppliers for each type of raw material.
What are the Group's markets?
Ca. 55 % of the Group’s sales is made to Polish customers. The remaining 45 % are customers located on ca. 50 markets, and the most important of them are: Germany, United Kingdom, Italy, the Czech Republic, Slovakia, Hungary, Austria, the Netherlands, Belgium and the USA. They account for ca. 70 % of consolidated export sales.
How does aluminium affect the Group’s sales value and profits?
The Group’s companies for which aluminium is the largest cost component (the Extruded Products Segment) apply pricing formula to include price changes for the raw material and their impact on the price of the final product, keeping profit in terms of value at an unchanged level. Therefore, fluctuations of aluminium prices at the LME have significant impact on the level of sales, but this impact is limited if we record operating profit.
Do currency exchange rates affect the Group?
Yes. EUR/PLN exchange rates have significant impact on the Group. This is due to the surplus of sales in EUR (ca. 45 % of consolidated sales are denominated in this currency) over the costs incurred in EUR (ca. 25 % of the costs are denominated in EUR). Therefore, significant appreciation of the Polish currency may adversely affect generated profit. The Group’s companies take measures to mitigate this risk (derivatives, keeping part of debt in EUR); however, they do not ensure complete protection against this risk.
Are sales based on long-term contracts?
Although with some of our customers we have cooperated for more than 20 years, the cooperation based on short-term contracts, typically for a period of up to 3 months, became a market standard. Only 5-10 % of sales are based on medium- and long-term contracts with the term exceeding 3 months.
Does the Company publish annual financial forecasts?
The Company has published consolidated annual forecasts for the Group on a regular basis since 2001. They contain estimated financial results, investment plans and operations that the Company intends to carry out in a given year. The forecast is published in the form of a current report and is available at Current reports - Grupa Kęty
The Company monitors the implementation of the forecast and publishes any revisions on a quarterly basis. Due to the short time horizon of contracts, such revisions are usually published at the end of the third quarter.
Where can I find information about upcoming important events planned by the Company, e.g. the publication of quarterly reports?
For the calendar of the most important corporate events, please go to: Corporate calendar - Grupa Kęty
Who can I talk to about the Company as a shareholder or stock trader?
On the right side of the screen at Investor Relations section, you will find a box with contact data of the person in charge of investor relations.
Which brokerage houses publish recommendations concerning the Company?
For the current list of analysts issuing regular reports on the Company, please go to: Analysts