Accomplishment of the Strategy main goals

In the opinion of the Management Board of Grupa KĘTY S.A., as at the end of 2022, the main goals of the Capital Group Development Strategy for 2021–2025 remain valid. The individual operating segments – despite the unstable economic and macroeconomic environment occurring since the announcement of the Strategy, comprising the effects of the pandemic (e.g. problems with supply chains), the outbreak of war in Ukraine (e.g. high prices of raw materials and limited availability of raw materials), high inflation and growing interest rates (e.g. more difficult and expensive access to financing, higher costs of doing business) – have been consistently implementing the business assumptions adopted in the Strategy while taking advantage of emerging market challenges and opportunities (e.g. increased demand for the Capital Group products due to concerns about their availability and price) thanks to high operational efficiency.

The financial results achieved in 2022, similarly as in 2021, were better than anticipated in the development of the Strategy financial goals, however, due to the fact that the events that largely influenced the above-average performance in its first two years were of a unique nature, as well as due to the economic slowdown felt from the second half of 2022 onwards, the Company Management Board expects that the financial results in the following years may come closer to those assumed while developing the Strategy and, thus, the achievement of the strategic objectives is possible.

We define ESG objectives as the process of improving and adapting the Capital Group to the changing market environment and expectations in terms of environmental, social and governance impact. We welcome progress and analyse deviations. Information on the status of the achievement of targets in the area of ESG and sustainability are presented in the ESG results section.

In 2022, the operating segments continued the performance of investment projects envisaged in the Strategy, while some of the capital expenditure envisaged for that year had been postponed to 2023 due to the economic slowdown observed in the second half of the year.

The following tables present the status of accomplishment of the main financial goals within the Strategy as at the end of 2022.

Accomplishment of the strategy main financial goals
Consolidated data (PLN million)	Balance as at the end of 2022	2025 goals
Sales revenue:	5,931	5,143
-of which EPS	2,451	2,072
-of which ASS	2,440	2,306
-of which FPS	1,517	1,070
EBITDA⁽¹⁾	1,031	864
Net profit on operating activities	865	650
Net profit⁽²⁾	678	508

⁽¹⁾ EBITDA – operating profit plus depreciation and amortisation
⁽²⁾ Net profit attributable to owners of the parent

Accomplishment of goals in investing activities and sources of investment finance as well as dividend policy
PLN million	Balance in 2022, accumulated data for 2021–2022	Goal for 2025, accumulated data for 2021-2025
Cash flow from operating activities	1,103	2,927
Cash flow from investing activities	-525	-1,321
Dividends paid out	-936	-2,002
	As at the end of 2022	As at the end of 2025
Net debt	1,056	919

Sustainable development goals in the operations of the Capital Group KĘTY S.A.

Outlook