Development strategy of the particular operating segments

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 the average 2% a year, whereas the Segment plans to generate about 9%.

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.

Owing to high market share in Poland, the sales development of the Aluminium Systems Segment within the Strategy horizon is based mainly on:

• foreign sales intensification;
• 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 average of about 3% a year (by value). It is, however, the ambition of the Segment to generate roughly 9%.

The Aluminium Systems Segment has strived to maintain high operating profitability thanks to systematic improvement of operations effectiveness. EBITDA per employee will increase by 6% in the Strategy period.

Development investment projects will represent approximately 66% of the PLN 492 million allocated to projects in the Strategy period.

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) due to 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 the expected 2% market growth in that period.

Over 10% EBITDA growth per employee is assumed for the Strategy period.