Boryszew S.a. · GPW:BRS
Boryszew — Q3 2022 Earnings Presentation
28 slides from Boryszew's earnings presentation, Nov 1, 2022
Slide 1: Boryszew Group Q3 2022 Financials
BORYSZEW GROUP Q3 2022 FINANCIALS
Slide 2: Q3 2022 Summary
1. Q3 2022 Summary 2 3 4 5 Market Boryszew Group’s Performance of Prospects for the environment consolidated business coming quarters results segments
Slide 3: Key factors affecting the Group's performance in Q3 2022
KEY FACTORS AFFECTING THE GROUP’S PERFORMANCE IN Q3 2022 Lower demand for steel Challenges in the Lower prices of key raw Good performance and metal products automotive sector materials and rising prices ratios: of utilities due to the economic caused by supply chain • continued decline in slowdown
Slide 4: 9M 2022 Summary
9M 2022 SUMMARY Consolidated revenue [PLN m] Consolidated EBITDA* [PLN m] 24.5% 18.8% 12.6% 10.1% 5,243 4,212 4,657 269 290 320 9M 2020 9M 2021 9M 2022 9M 2020 9M 2021 9M 2022 Net profit [PLN m] 219.9% 50.0% 92 137 -115 9M 2020 9M 2021 9M 2022 * Adjusted for one-offs
Slide 5: Q3 2022 Summary
Q3 2022 SUMMARY Consolidated revenue [PLN m] Revenue by segment 6.7% Metals Automotive Chemicals 4.5% 4.9% 4.5% 4.4% 4.6% 20.8% 21.9% 22.0% 22.9% 24.7% 1,703 1,834 1,707 1,600 1,607 72.1% 67.2% 67.1% 65.4% 59.8% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Consolid
Slide 6: Q3 2022 Summary
Q3 2022 SUMMARY Consolidated revenue [PLN m] Consolidated EBITDA* [PLN m] -16.7% 6.7% 135 102 85 100 85 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 1,834 1,703 1,707 1,600 1,607 One-off items [PLN m] Q4 2021 Q2 2022 Impairment of assets 31 Sale / Liquidation of assets -60 Risk provision 23 Q3 2021 Q4 20
Slide 7: 9M 2022 EBITDA Bridge [PLN m]
9M 2022 EBITDA* BRIDGE [PLN m] 10.1% 82 320 -42 -7 -4 290 9M 2021 Metals Automotive Chemicals Other 9M 2022 * Adjusted for one-offs
Slide 8: Q3 2022 EBITDA Bridge [PLN m]
Q3 2022 EBITDA* BRIDGE [PLN m] -16.7% 102 3 85 -10 -3 -6 Q3 2021 Metals Automotive Chemicals Other Q3 2022 * Adjusted for one-offs
Slide 9: Market environment
2. Market 1 3 4 5 environment Q3 2022 Summary Boryszew Group’s Performance of Prospects for the consolidated business coming quarters results segments
Slide 10: Price Quotations of Key Metals [USD/t]
PRICE QUOTATIONS OF KEY METALS [USD/t] Aluminium Copper -11.1% -17.4% 4,500 Q3 2021 avg: 2,648 Q3 2022 avg: 2,354 Q3 2021 avg: 9,372 4,000 11,000 Q3 2022 avg: 7,745 10,500 3,500 10,000 9,500 3,000 9,000 8,500 2,500 8,000 7,500 2,000 7,000 6,500 1,500 6,000 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2021 2021 202
Slide 11: Currency Exchange Rates
CURRENCY EXCHANGE RATES 3.9% Q3 2021 avg: 4.57 Q3 2022 avg: 4.75 5.2 5 4.8 4.6 4.4 4.2 EUR/PLN USD/PLN 4 3.8 3.6 Q3 2022 avg: 4.71 Q3 2021 avg: 3.87 3.4 21.7% 3.2 Q3 Q4 Q1 Q2 Q3 2021 2021 2022 2022 2022
Slide 12: Gas and Energy Spot Prices in Q3 2022 [PLN/MWh]
GAS AND ENERGY SPOT PRICES IN Q3 2022 [PLN/MWh] Gas – SPOT prices Energy – SPOT prices 1,600 2,500 1,400 2,000 1,200 1,500 1,000 1,000 800 500 600 400 0
Slide 13: Energy security
Energy security Hedged energy and Diversification Continuous Diversified customer component price of the Group’s improvement base for end products fluctuations in contracts operations of energy efficiency with clients Pursuit of energy self- Flexible production sufficiency through the Continued inve
Slide 14: European Automotive Market
EUROPEAN AUTOMOTIVE MARKET New car registrations by manufacturer in millions (according to ACEA*) Pozostałe Toyota Renault HYUNDAI & KIA Stellantis VW Group In Q3 2022, 0.69 new passenger 0.66 0.67 0.57 0.68 registrations in Europe declined to 2.67 million 0.56 vehicles, i.e. 0.52 0.52 0.48 0.47 by
Slide 15: Boryszew Group's consolidated results
3. Boryszew Group’s 1. 2 consolidated results 4 5 Q3 2022 Market Performance of Prospects for the Summary environment business coming quarters segments
Slide 16: Key Consolidated Financials [PLN m]
KEY CONSOLIDATED FINANCIALS [PLN m] Y/Y change Q3 Q4 Q1 Q2 Q3 Q3 2022 2021 2021 2022 2022 2022 vs Q3 2021 Revenue 1,600 1,607 1,703 1,834 1,707 6.7% EBIT 59 38 56 91 41 -30.6% EBITDA* 102 85 100 135 85 -16.7% EBITDA margin 6.4% 5.3% 5.9% 7.3% 5.0% -1.4 pp * Adjusted for one-offs
Slide 17: Consolidated Revenue [PLN m]
CONSOLIDATED REVENUE [PLN m] 6.7% Change Revenue by segment Q3 Q4 Q1 Q2 Q3 Q3 2022 vs [PLN m] 2021 2021 2022 2022 2022 Q3 2021 Metals 1,153 1,081 1,142 1,200 1,020 -11.6% 1,703 1,834 1,707 1,600 1,607 Automotive 332 352 375 419 421 26.8% Chemicals 72 79 77 80 79 8.9% Other* 42 95 109 134 187 342.5%
Slide 18: Consolidated EBITDA [PLN m]
CONSOLIDATED EBITDA* [PLN m] 6.4%** -16.7% 5.0%** EBITDA by segment Q3 Q4 Q1 Q2 Q3 [PLN m] 2021 2021 2022 2022 2022 Metals 82.5 93.8 99.0 120.9 72.0 135 Automotive 4.2 0.1 -1.7 7.9 7.0 102 100 85 85 Chemicals 5.2 -15.1 3.7 4.1 2.0 Other*** 10.0 6.2 -1.0 1.8 3.8 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 202
Slide 19: Capital Expenditures [PLN m]
CAPITAL EXPENDITURES [PLN m] 167 19 8 108 Other 89 38 Chemicals 53 Metals 103 Automotive 55 9M 2020 9M 2021 9M 2022
Slide 20: Working Capital and Debt [PLN m]
WORKING CAPITAL AND DEBT [PLN m] Net working capital Receivables/Inventories/Liabilities -7.7% 1,188 1,020 964 960 900 975 982 1,097 927 966 1,044 992 1,026 1,092 1,120 -14.1% -820 -3.7% -899 -1,004 -1,025 -998 -1.7% 13.6% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 20
Slide 21: Performance of business segments
4. Performance of 1. 2 3 business segments 5 Q3 2022 Market Summary environment Boryszew Group’s Prospects for the consolidated coming quarters results
Slide 22: Automotive Segment Results [PLN m]
AUTOMOTIVE SEGMENT RESULTS [PLN m] 26.8% 1.3%* 66.8% 1.7%* 419 421 375 332 352 4.2 0.1 7.9 7.0 -1.7 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Revenue EBITDA • Segment’s revenue in Q3 2022 on par with Q2 2022 despite a 6.7% decline in new car registrations (seaso
Slide 23: Nominations for New Projects
NOMINATIONS FOR NEW PROJECTS Total value of nominations for contracts with EOP 2035*: EUR 557 million Share of nominations Value concerning of new contracts electric vehicles concluded in the total value of in Q1-Q3 2022 nominations throughout the project life cycle EUR 24.6 million 81.6% * EOP - En
Slide 24: Metals Segment Results [PLN m]
METALS SEGMENT RESULTS [PLN m] -11.6% 7.1%** -12.6% 7.1%** 1,153 1,142 1,200 1,081 1,020 121 82 94 99 72 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Revenue EBITDA* • Change in the Segment’s results due to the sale of non-strategic assets; • EBITDA margin (7.1%) o
Slide 25: Chemicals Segment Results [PLN m]
CHEMICALS SEGMENT RESULTS [PLN m] 8.9% 7.2%** 2.6%** -61.3% 5 2 72 79 77 80 79 4 4 -15 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Revenue EBITDA* • Segment’s revenue remains stable (launch of a new product range and expansion into new markets); • EBITDA under pre
Slide 26: Prospects for the coming quarters
5. Prospects for the 1. 2 3 4 coming quarters Q3 2022 Market Boryszew Group’s Performance of Summary environment consolidated business results segments
Slide 27: Prospects for the Coming Quarters
PROSPECTS FOR THE COMING QUARTERS Continued strong Reduced market Strategy automotive orders investment and falling Rising inflation and implementation driven by growth in demand for goods and higher interest rates electric vehicle sales products Prolonged Leveraging competitive Uncertainty over gas
Slide 28: Thank you!
Thank you! Boryszew Group is: • one of the largest private industrial groups in Poland; • the largest non-ferrous metals processing group in Poland and CEE; • the largest manufacturer of automotive components in Poland. The Group operates 35 manufacturing plants and 6 R&D centres located in Europe,