Report 2021

Development strategy

Four pillars of the Strategy of the Kęty Capital Group for the years 2021–2025 (‘Strategy’), as published on 16 December 2020, compliant with the Mission, Vision and Values of the Group, include:


When working on the Strategy, the main market, environmental and regulatory trends affecting the particular segments of the Capital Group were analysed, the pace of market development estimated and the optimal development scenario, in the opinion of the Company Management Board, for each of the Segments determined. The basic conclusion during the work was a confirmation that the Capital Group Segments operate on attractive and prospective markets, whereas the potential generated during the performance of 2015–2020 Strategy enables further organic development.

Taking into account the above, the Company Management Board assumed operating and financial results as well as, for the first time ever, parametrised and presented the commitment in the ESG area (Environmental, Social and Corporate Governance) in the form of sustainable development goals, which comprises the impact on the environment, safety and development of the Company employees, responsibility within the supply chain and engagement in local communities among the key elements of the Strategy performance.

Strategy of the Extruded Products Segment

The Strategy of the Extruded Products Segment assumes systematic increase of share in the European market through:
  • doubling the sales of processed products, i.e. components for the automotive and transport sectors by 2025;
  • selective expansion on the target European markets (intensified sales and marketing activities);
  • systematic increase of production capacity to the level of about 125,000 tons in 2025, which enables higher flexibility in customer service.

The estimated average annual pace of market development in the period 2021–2025 was determined at the level of roughly 2%, whereas the Segment plans to generate 9% increase by value. One of the Segment priorities is the maintenance of high level operating profitability with growing revenues, thanks to utilisation of its production capacity and a continuous efficiency improvement process. Assumed has been the generation of over 10% EBITDA growth per employee in the period of the Strategy performance. About 58% of the whole capital expenditure budget of the Segment for the years 2021–2025, amounting to PLN 692 million, will be spent on development projects. The rest of the budget will be spent on current maintenance of infrastructure and production potential.

Strategy of the Aluminium Systems Segment

Owing to high market share in Poland, the sales development of the Aluminium Systems Segment within the Strategy horizon is based mainly on:
  • intensified foreign sales, particularly on the British and American markets;
  • extension of the offer for new products, e.g. internal or fire-resistant partition structures;
  • investment in activities which extend the chain of the created value;
  • extension of the product offer as well as technical and sales support focusing on individual construction business.

The average annual market growth rate was estimated at the level of about 3% (by value). It is, however, the ambition of the Segment to generate roughly 9%. The Aluminium Systems Segment shall strive to maintain high operating profitability thanks to systematic improvement of operations effectiveness. EBITDA per employee will increase by 6% in the Strategy period. Development projects will constitute a majority in the Segment budget. They will represent approximately 66% of the PLN 492 million allocated to projects in the Strategy period. Replacement projects will be worth PLN 166 million.

Strategy of the Flexible Packaging Segment

Owing to a series of changes in the market environment, the Flexible Packaging Segment has based its Strategy on the existing production potential. Capital expenditures have been optimised to PLN 82 million in the Strategy period. That will ensure maintenance of flexibility as well as efficient utilisation of plant and machinery. Despite the above, sales goals, considering the adjustment of the base year (2020) resulting from one-off positive effect of the world’s economy lockdown, are equally ambitious as in the other Segments. It has been assumed that the average annual sales growth will be 4.4% in the Strategy period compared to 2% market growth. Over 10% EBITDA growth per employee is assumed for the period of the Strategy performance.

The aforesaid one-off positive effect of the lockdown resulted from breaking the supply chains from Middle and Far East, mainly in the second and third quarters of 2020, which has brought about a significant limitation of imports from those directions, with simultaneous benefit to the European manufacturers, including the FPS. In that period it was possible to generate outstanding results of operation. The effect was estimated as PLN 66 million of sales revenue, PLN 60 million of EBITDA, and PLN 51 million of net profit.

Dividend policy

The Strategy assumes maintenance of stable dividend policy in the years 2021–2025, in accordance with which 60–100% of accumulated net profit generated in the preceding year shall be paid out to the shareholders. In the Strategy it has been assumed that the average annual payout will amount to 85% of consolidated net profit generated in the preceding year.

Moreover, the assumption is that in the years 2021–2025 dividend of about PLN 2.0 billion will be paid out, which means a growth of about PLN 0.8 billion compared to the period of 2016–2020. In reference to one share, the amount is going to be about PLN 200, which will provide the shareholders with the average 7% return on shares (with the price per share of PLN 585). When preparing the recommendation for the General Meeting with regard to the amount of dividend allocated to payout, the Company Management Board shall consider, among other things, the current and expected financial standing of the Capital Group, the amount of dividends to be received by the Company from its subsidiaries, and the value of the actual capital expenditure to be incurred in the year of the dividend payout.