1. BSC Drukarnia Opakowań
Publishing the results for 1H 2017

2. Reservation
This presentation is only informative and it is not to be treated as investment advice.
This presentation was drawn up by BSC Drukarnia Opakowań S.A. (hereinafter referred to as “the Company”).
Neither the Company nor any of their subsidiaries take any responsibility for any harm resulting from using this presentation or its part or for any harm caused in any other way in connection with this presentation.
The recipients of this presentation take exclusive responsibility for their own analyses and evaluations of the market, the company’s market situation and potential future results of the Company performed on the basis of the information included in this presentation.
In the scope this presentation contains statements concerning the future, and particularly words: “projected”, “planned”, “predicted” and other similar expressions (together with their negative forms), these statements are connected with known and unknown risk, uncertainty and other factors which might contribute to the fact that the actual results, financial standing, the Company’s operations, achievements and the results of the branch will significantly differ from any future results, operations or achievements expressed in such the statements concerning the future.
Neither the Company nor any of their subsidiaries are obliged to provide the recipients of this presentation with any additional information or to update this presentation.

3. Company profile Current Customers:
Leading supplier of cardboard packaging in Poland
Over 80% of sales to renowned international concerns
Innovative, unique in Europe technologies allowing to obtain the highest quality print and visual effects
Stable results (2016) Revenue: PLN million EBITDA: PLN 46.6 million, Net profit: PLN 26.3 million

4. Business in figures 30 thousand tons
26 years on the market
30 thousand tons
of packaging produced in 2016
300 trucks monthly with finished goods delivered to Customers
over 400 employees
PLN 340 million of stock market capitalization
PLN 33 million
of dividend paid in the years

5. Packaging Premium packaging (highly refined)
Classic packaging (high - volume, high quality)
Packaging - essential factor which affects purchasing decision:
First element the consumer notices
Effective tool encouraging the purchase
Basic source of information on the product
Key role in creating the image and position of the product and brand
Blister cards (premium and classic)
Leaflets and labels (e.g. for pharmaceutical packaging)

6. Branch diversification of customers
Objectives:
Establishing strong position as the supplier of carton packaging to cosmetic and food branches
Increase in pharmaceutical segment’s participation in sales
Development of flexo technology – price competitiveness in certain packaging segment
Other
Pharmaceutical
Cosmetic
Food
*data as of the end of June 2017

7. We are a part of international group
A part of the international printing group rlc Packaging Group (since 2004 )
Cooperation with the strategic shareholder - Colorpack GmbH:
prestige and recognition on world markets – essential for development of cooperation with customers operating on global scale
technical substance and production support
access to the newest technologies
easy access to raw materials
cooperation with global suppliers on preferrential conditions
member of the Global Packaging Alliance (international association of printing houses)
RLCGmbH + Co KG
36%
Colorpack GmbH
BSC Drukarnia Opakowań SA

8. Value chain
Managing the whole process of packaging production – added value
active participation in the philosophy of packaging creation
designing
technological process
logistics
own research&development department
construction department (4 registered patents)
printing
refining
die-cutting
window patching
gluing

9. Profitability, safety, development
effective management of packaging
high margin
premium packaging
diversification
safety
cooperation with strategic partner
growth together with customers
development
Identification of market niches

10. We sell to many countries
As of the end of June of 2017 export constituted nearly 21 per cent of the group’s sales
Smithers Pira’s report indicates that in the years the world packaging market will grow by approx. 3.5 per cent yearly. Its value will reach $ 998 billion in ($ 839 billion in 2015 ) 

11. Shares of BSC Drukarnia Opakowań on Stock Exchange
The Company’s shares have been listed on WSE since 2011
Share price has increased by over 117% since debut

12. The market Competitive environment:
Consolidation of small and medium printing houses on Polish market
European (incl. Polish) market penetration by big concerns aiming at takeovers
Searching for new niches in order to gain competitive advantage (which is why BSC Drukarnia Opakowań invests in the development of web–fed and flexographic printing on carton)
Source: Equity Advisors

13. Financial results for 1H 2017
 (billion PLN)
1H 2016
1H 2017
Dynamics
Revenues
111.5
110.3
-1 per cent
EBITDA
23.6
21.7
-8 per cent
Net profit
13.2
12.4
-6 per cent
The Group’s results in 1H 2017 were mainly caused by :
Slight decrease in revenues resulted from losing some contracts, e.g. with Mondelez;
The decrease in net profit resulted from the market conditions, incl. e.g. carton prices, which increased in the analysed period. Further increase in prices of raw material are expected in IV quarter this year and in I quarter of 2018;
Decrease in net profit also derives from the increase in remuneration expenses and from not fully utilised manufacturing capacities.
* The net result in 2015 was caused by profit from one-off bargain acquisition of shares in POSBAU S.A. at the amount of PLN 5 million.

14. Cost structure
Costs of material and energy consumption and labor costs dominate in the structure of the group’s nature expenses because of the production character of the business run. In the first half-year of 2017 they constituted respectively 62% and 20% of the total costs by nature.
Among the other operating costs there are expenses and losses not connected directly with the group’s operating activity. The category includes most of all involuntary shortage and liquidations.

15. Debt and liquidity ratios
In I half-year of 2017 compared to the group’s operational margins decreased by over 1 percetage point mainly because of the increase in carton prices, growing labour costs and not fully utilising manufacturing capacities. The dynamics of decrease in gross and net margin was lower because of strenghtening of Polish zloty against Swiss franc.
Profitability ratios
1H (per cent)
1H 2017 (per cent
Dynamics
(percentage point)
Operational margin
15.45
13.66
-1.79
EBITDA margin
21.15
19.71
-1.44
Gross profit margin
15.15
13.87
-1.28
Net profit margin
11.84
11.23
-0.61
The group still maintains high liquidity ratios. Debt decreased as a result of repayment of credit installments.
Debt and liquidity ratios
1H 2016
1H 2017
Dynamics
Liquidity ratio I
4.53
6.02
33%
Liquidity ratio II
3.13
4.42
41.4%
Debt ratio
19%
16.6%
-12.6 percentage points
Net working capital (million PLN)
97.2
113.9
17.2%

16. Development of production plant
Last year BSC Drukarnia Opakowań started the procedures connected with obtaining the necessary permits for building a new production – warehouse plant.
Currently the company is applying for building permit
Estimated value of the investment is PLN 15.5 million
The Company is planning to complete the construction in II quarter of 2018
The new hall will be equipped with state-of-the-art machines

17. Objective: increase in sales to pharmaceutical branch
We want to grow dynamically in pharmacutical segment
Business relations built with the Customers from pharmaceutical branch are of longterm character
Pharmaceutical branch is resistant to prosperity fluctuations
We comply with strict standards and hold several certificates, which is why we are able to meet high demands of the pharmaceutical branch

18. Investment thesis Support from branch investor
Stable financial results
Dividend paid
Efficient business model based on three pillars: profitability, safety, development
High business profitability
High cash flow ratios
Leading producer of packaging on WSE
Biggest world concerns among the Customers
Two modern production plants
Exposition to the growing packaging market, which in the coming years will increase by nearly 7 per cent yearly and in 2020 it will reach the value of PLN 46 billion

19. Contact Andrzej Baranowski Financial Vice- President of the Board
Tomasz Danelczyk
PR & IR Consultant
665 885 390