grupa boryszew wyniki finansowe – iii kwartały 2018 · automotive-3.2 12.7 20.5 31.8 30.2 metals...

BORYSZEW GROUPQ3 2019 FINANCIAL RESULTS

2. Market environment

1. Boryszew Group – Q1-Q3 2019 Summary

3. Q1-Q3 2019 financials

4. Operating segments

5. Plans for the next quarters

2

KEY FACTORS AFFECTING THE GROUP IN Q3 2019

• Positive effects of active management of working

capital ;

• Improved profitability in the Maflow Group;

• A noticeable economic slowdown in Western

Europe;

• A significant slowdown on the market of

infrastructural and construction investments;

• Lower volumes and margins in the steel sector.

3

1,437 1,4131,505

1,7061,577

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Revenue

[PLN m]

Net profit

[PLN m]

EBITDA

[PLN m]

4

BORYSZEW GROUP – Q1-Q3 2019 SUMMARY

8067

90

139

92

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

44

-11

24

49

6

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Q3 2019 REVENUES BRIDGE

5

1,437.023.0

-29.6

164.6

-10.0 -9.0

1,577.0

IIIQ18 Motoryzacja Metale bez Alchemii Alchemia Chemia Pozostałe IIIQ19Q3 2018 Q3 2019Automotive Metals without

Alchemia

Chemicals OthersAlchemia

Q3 2019 EBITDA BRIDGE

6

80.0

33.4

-10.3-3.1

-2.0-6.2

92.0

IIIQ18 Motoryzacja Metale bez Alchemii Alchemia Chemia Pozostałe IIIQ19Q3 2018 Q3 2019Automotive Metals without

AlchemiaChemicals OthersAlchemia






7

PRICE QUOTATIONS OF KEY METALS (PLN/t)

8

-10.1% -0.2%

Q3

2018

Q4

2018

Q1

2019

Lead

Q2

2019

Zinc

-2.7%

Q3 2018 avg: 9,369

Aluminium Copper

1.8%

Q3

2019

Q3 2019 avg: 6,840 Q3 2018 avg: 22,565 Q3 2019 avg: 22,520Q3 2018 avg: 7,609

Q3 2019 avg: 9,113 Q3 2018 avg: 7,739 Q3 2019 avg: 7,876

Q3

2018

Q4

2018

Q1

2019

Q2

2019

Q3

2019

Q3

2018

Q4

2018

Q1

2019

Q2

2019

Q3

2019

Q3

2018

Q4

2018

Q1

2019

Q2

2019

Q3

2019

3.50

3.60

3.70

3.80

3.90

4.00

4.10

4.20

4.30

4.40

4.50EUR

USD

CURRENCY EXCHANGE RATES

9

Q3

2018

Q3 2018 avg: 4.31

Q4

2018

Q1

2019

Q2

2019

Q3

2019

Q3 2019 avg: 4.32

0.3%

Q3 2018 avg: 3.70 Q3 2019 avg: 3.88

4.9%

10

EUROPEAN AUTOMOTIVE MARKETRegistrations of new cars by country in millions (according to ACEA*)

* ACEA (European Automobile Manufacturers Association)

9M 2019 – 12.12 million

9M 2018 – 12.31 million

-1.6%2.67

1.91

1.66

1.49

1.04

0.46 0.400.36

0.28 0.28

1.75

2.74

1.86

1.64

1.47

692

0.44 0.410.33

0.250.26

1.75

Germany UK France Italy Spain Belgium Poland Netherlands Austria Sweden Others

9M 2018 9M 2019

EUROPEAN AUTOMOTIVE MARKET

11

Registrations of new cars by country in millions (according to ACEA)

* PSA Group = Peugeot, Opel, Citroen, DS.

** FCA Group = Fiat, Jeep, Alfa Romeo, Lancia, Chrysler

***JLR = Jaguar Land Rover

3.00

1.96

1.30

0.81 0.830.78 0.77

0.73

0.60

0.41

0.240.18

0.11

2.96

1.96

1.27

0.820.74 0.78 0.74 0.75

0.61

0.310.25

0.180.10

VW Group PSA Group* Renault Group HYUNDAI&KIA FCA Group** BMW Group Ford DAIMLER TOYOTA Group NISSAN VOLVO JLR Group*** HONDA

9M 2018 9M 2019

1.39

0.610.56

0.36

0.060.00

1.34

0.58 0.58

0.40

0.060.00

Volkswagen Audi Skoda Seat Porsche Others

12

EUROPEAN AUTOMOTIVE MARKET

Registrations of new cars in 9M 2019

Market share (%) Quantity (’000) Y/Y %

2018 2019 2018 2019 change

VW Group 24.3 24.4 2,996 2,958 -1.3

VOLKSWAGEN 11.3 11.1 1,394 1,340 -3.9

AUDI 5.0 4.8 610 581 -4.9

SKODA 4.6 4.8 562 581 +3.2

SEAT 2.9 3.3 363 397 +9.5

PORSCHE 0.5 0.5 62 55 -10.9

OTHERS 0.0 0.0 4 5 +15.5

Registrations of new cars by country in millions (according to ACEA*)

3.5

3.2

4.0

4.4

3.7

IIIQ2018 IVQ2018 IQ2019 IIQ2019 IIIQ2019

* ACEA (European Automobile Manufacturers Association)

Q3 2018 Q3 2019Q4 2018 Q2 2019Q1 2019






13

KEY FINANCIALS (PLN million)

14

Q3

2018

Q4

2018

Q1

2019

Q2

2019Q3

2019

Y/Y %

change

2019 vs

2018

Sales revenues 1,437 1,413 1,505 1,706 1,577 9.7%

EBIT 43 29 49 87 41 -4.7%

EBITDA 80 67 90 139 92 15.0%

EBITDA margin 5.6% 4.8% 6.0% 8.1% 5.8% 4,8%

1,437 1,413

1,505

1,707

1,577

IIIQ 2018 IVQ 2018 IQ 2019 IIQ 2019 IIIQ 2019

REVENUES (PLN million)

Revenues

by segment

(PLN m)

Q3

2018

Q4

2018

Q1

2019

Q2

2019

Q3

2019

Y/Y %

change

Q3 2018 vs

Q3 2019

Automotive 401 466 449 474 424 5.7%

Metals 923 808 907 1,133* 1,058* 14.6%

Chemicals 69 81 73 60 59 -14.5%

Others** 44 58 76 39 35 -20.5%

• Automotive Segment:

+ sales growth by nearly 6% on Q3 2018;

• Metals Segment:

+ consolidation of Alchemia Group’s revenues

in Q3 2019 (PLN 164.6m);

* including Alchemia Group’s revenues ** including consolidation adjustments 15

9.7%

-7.6%

+ tool sales growth in BAP (PLN 42m).

- lower metal prices on the LME

(ca. PLN 35m).

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

8067

90

139

92

IIIQ 2018 IVQ 2018 IQ 2019 IIQ 2019 IIIQ 2019

EBITDA by

segment

(PLN m)

Q3

2018

Q4

2018

Q1

2019

Q2

2019

Q3

2019

Y/Y %

change

Q3 2018 vs

Q3 2019

Automotive -3.2 12.7 20.5 31.8 30.2

Metals 74.9 50.5 58.0 102.7 61.5 -17.9%

Chemicals 3.7 4.1 3.5 5.0 1.7 -54.1%

Others** 4.8 -0.1 8.2 -1.0 -1.4 -129.2%

EBITDA (PLN million)

• Automotive Segment:

+ cost optimization in plants;

+ reduction of the cost of poor quality (CoPQ);

+ tool sales growth (PLN 42m).

5.9%*5.6%*

16* EBITDA margin

14.7%

33.3%

• Metals Segment:

+ EBITDA growth in NPA Skawina (PLN 1.3m);

+ EBITDA growth in Huta Oława (PLN 1.0m);

- Consolidation of Alchemia Group’s EBITDA

in Q3 2019 (PLN -3.1m).

** including consolidation adjustments

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Q1-Q3 2019 CAPEX

17

PLN

52 million

Alchemia GroupAutomotive Metals

PLN

111 million

PLN

25 million

PLN 190 million

Chemicals

and Other

PLN

2 million

INNOVATIVE PROJECTS

18

Innovative production technology of wire rod from high-strength

aluminium alloys of 2xxx, 5xxx, 7xxx series

Reduction of transmission losses in HV (110kV) power distribution lines

through the development of innovative material and design solutions

and technologies for the production of low-loss overhead lines

Development of highly advanced production technology of multilayer

HSAA-P30 aluminium tapes for the new generation of automotive heat

exchangers

Implementation of innovative production technology of sheets and strips

made from AlMg-VHS alloy intended for pressing car body parts and

structural elements

Development and implementation of a production technology of

an innovative aluminium alloy for the production of high-pressure caps

in the packaging industry

Unique forged and rolled special-purpose steel ring with advanced,

designed cross-section and adjustable operating properties

Innovative production technology of products from copper alloys with

a new standard of geometric quality intended for material removal

processing on high-speed automatic cutting machines

Development and implementation of a production technology of a full

range of Zn-Al alloy wires intended for corrosion protection by spray

metallization method

WIRE ROD

LOW-LOSS CABLE

ALUMINIUM TAPES

ALMG-VHS

ALUMINIUM ALLOY

BRASS

CAST&DRAW® Tech

ZN-AL ALLOY WIRES

Smart Growth Operational

Programme INNOSTAL

1,079958 986

849 780

259

252

213

IIIQ 2018 IVQ 2018 IQ 2019z Alchemią

IIQ 2019 z Alchemią

IIIQ 2019 z Alchemią

• Positive effects of active management of working capital;

• Working capital decline in Boryszew by PLN 300m (Q3 2019 vs Q3 2018);

• Decrease in inventories by 8% (Q3 2019 vs Q3 2018).

Working capital and debt

19

Working capital

29.8%

-8.13%

-11.1%

-11.6%

2.88 3.04 3.09 3.043.45

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

-1,082 -1,109

1,234 1,244

950 858

Q2 2019 Q3 2019

-903 -746 -789 -909 -948

1,095 1,040 1,014 967 1,009

887 664 761 791 719

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Liabilities Inventories Receivables

Boryszew

with Alchemia

Boryszew

2.8%-13.9%

-9.8%

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

with Alchemia with Alchemia with Alchemia






20

-3

13

20

32 30

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

401

466449

474

424

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

AUTOMOTIVE SEGMENT RESULTS (PLN million)

• The result of the Automotive Segment was mainly influenced by:

+ improved profitability in the Maflow Group;

+ streamlining of production processes;

+ tool sales in BAP;

- Persistently low sales of parts.

Revenues EBITDA

7.1%*

* EBITDA margin

-0.7%*5.6%

-10.5%

21

-6.3%

NOMINATIONS FOR NEW PROJECTS

22

In Q1-Q3 2019, new nominations for contracts with the value

of over EUR 90.9 million were required with EOP 2030*

*EOP - End of Production

Value of new contracts

in Q1-Q3 2019 in EUR million

BAP Group 27.4

Maflow Group 63.5

Share of nominations

concerning electric vehicles in

the total value of nominations

throughout the project life cycle

BAP Group 10%

Maflow Group 47%

923 808

907 856 817

277 242

Q3 2018 Q4 2018 Q1 2019 Q2 2019with

Alchemia

Q3 2019with

Alchemia

75

51 58

82 64

21

-3 Q3 2018 Q4 2018 Q1 2019 Q2 2019

withAlchemia

Q3 2019with

Alchemia

• The Segment’s EBITDA was affected by factors such as:

+ higher EBITDA in NPA Skawina (PLN 1.3m), Huta Oława (PLN 1m) and Hutmen (PLN 0.8m);

- lower EBITDA in Baterpol (PLN 7m), FŁT (PLN 4.1m), Walcowna Metali Dziedzice (PLN 2.7m),

Aluminium Konin (PLN 2m).

METALS SEGMENT RESULTS (PLN million)

Revenues EBITDA

5.8%*

* EBITDA margin

8.1%*

23

14.6%

-6.6%

-18.5%

-40.8%

3.74.1

3.5

5.0

1.7

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

69 81

73

60 59

Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019

CHEMICALS SEGMENT RESULTS (PLN million)

• The Chemicals Segment’s EBITDA was affected by:

- the effect of a drop in sales of coolant and ergolid fluids in Boryszew ERG;

- increase in the price of flakes and decrease in trade margins in Elana PET.

Revenues EBITDA

2.9%*

* EBITDA margin

5.4%*

24

-14.8%

-1.7%

-54.2%

-66%






25

26

FORECAST FOR THE NEXT QUARTERS

•Launch of a new production line in NPA Skawina“The Demonstrator Project”;

•Launch of a new rolling mill in Huta Bankowa;

•Challenges related to the prolonged economic downturn in the automotive industry;

•Plant automation in the Automotive Segment;

•Challenges related to the significant rise in the minimum wage;

•Rising energy prices;

•New structure of Boryszew Group.

Thank you!

grupa boryszew wyniki finansowe – iii kwartały 2018 · automotive-3.2 12.7 20.5 31.8 30.2 metals...

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