Letter of the resigning President of the Management Board of the 11th term

Dear Ladies and Gentlemen,

The 2024 results of the Capital Group of Grupa Kęty S.A. once again confirmed our efficiency in the difficult environment, in face of strong competitive struggle. The Group generated PLN 5.1 billion sales and PLN 560 million net profit (growth by 4%), with EBITDA amounting nearly to PLN 932 million (growth by 7%). The stable financial situation enabled the payout of dividend in 2024 in the amount of PLN 539 million, i.e. PLN 55.40 per share.

The highest contribution to the 2024 results was brought by Aluprof, which thanks to its developed sales organisation, including a network of international companies, and innovative solutions recorded significant sales growth year over year, both in Poland (+21%) and in exports (+37%).

The Extruded Products Segments, on the other hand, has strongly felt the European slow-down in the sector of aluminium processing, recording lower results than in the preceding year. Worth mentioning is the fact of completion of a large capital project and launching of production lines with 2,000 tons and 4,000 tons presses and auxiliary equipment, which will enable the Segment to serve their customers more efficiently in the requiring sectors of automotive, construction and electronics.

Traditionally, stable results were generated by the Flexible Packaging Segment, which not only recorded a 3% growth in sales but also a major improvement of EBITDA (+26% y/y) and net profit higher by 29% net profit.

The Extruded Products Segments extended production capacity by roughly 25% (+ 26,000 tons a year), whereas the Aluminium Systems Segment increased production capacity with regard to architectural systems by 20-25% thanks to the extension of the plant in Złotów (vertical paint shop and warehouse space were provided with a new production and warehouse hall, among other things).

The product portfolio of the Capital Group also comprises a series of innovative products, including environmentally friendly architectural systems which support the development of sustainable construction, packaging contributing to the development of circular economy, as well as profiles with high content of recycled material. Our activities in that area are presented in more detail in the Sustainability Statement of Grupa Kęty S.A. for the year ended 31 December 2024, which has been adjusted to the requirements of the European Sustainability Reporting Standards (ESRS). The extremely requiring process of preparing the Statement allowed us to better understand the impact of our operations on the environment and set out new directions for operation.

While we support the idea of ESG and honest, complete reporting in this area, we perceive that the complexity and number of obligations imposed by the new regulations may pose a risk to the very essence of sustainability efforts. Despite that, we are convinced that balance between regulatory obligations and the actual activities for sustainable development is key to creating permanent value both for our Capital Group and other stakeholders. We believe that responsible approach to environmental, social and corporate governance issues is key to building long-term economic value and market success.

Summing up the year 2024, I wish to congratulate the whole team the awards obtained, which confirm the high market assessment of Grupa Kęty S.A. The Company is 22nd on the list of 50 Polish Global Companies with ambition to expand internationally and build strong brands. High level of foreign sales and over 50 foreign markets served evidence that a company with strong regional roots may create modern products for which borders do not mean limits.

Further, in the ‘Polish Eagles’ ranking of Rzeczpospolita Daily and the SGH Warsaw School of Economics Grupa Kęty S.A. was honoured in the category of Industry. It was also awarded the title of a Good Company 2024 within the Corporate Social Responsibility Leaders Programme, and took the 15th position in the ranking of Climate-aware Corporates. The good practices of the Capital Group were honoured and described in the latest Responsible Business Forum report.

There were also personal awards. In the main ranking of the ‘Polish Stock Exchange TOP30 CEOs Valuation’ I ranked 11th. I also obtained the statue of the Bull and Bear from the jury of the Parkiet magazine in the category of the ‘CEO of the Year’.

The prizes symbolically crown the 30 years of my professional career. I take the opportunity to personally thank the jury again in this place for stating in the justification of the award that ‘after 19 years the CEO has built a modern industrial group of global reach with revenue of over PLN 5 billion and net profit exceeding PLN 500 million. The jury esteems the quality of management, consequent development and goodwill growth, very good results, fulfilment of forecasts and strategies, investments, growing dividends, perfect investor relations, and transparency’. The words are a token of appreciation not only of myself, but of the skills and hard work of all Employees. The time of receiving the honours is special for me, as at the end of 2024 I made the decision not to run for another term on the Management Board.

I have been lucky that my leadership of the Capital Group coincided with Poland’s entrance to the European Union in 2004. 20 years passed since that time, and Grupa Kęty S.A. has gone a long way which led it to the gate of the first league of the European business. In order to get to the place we are in now, the Company had to develop two times faster than others, we had to increase sales many times by improving exports channels which now sell roughly half of the products offered around the world. We have been investing all the time. We have spent the total of PLN 4.3 billion on modern technologies and solutions.

All our activities contribute to maintaining high value of the Group. The capitalisation of Grupa Kęty S.A. at the Warsaw Stock Exchange amounted to approximately PLN 6.6 billion at the end of 2024, despite unfavourable economic situation.

Sharing the good results with you, I would like to cordially thank all the Employees of the Capital Group for their engagement and cooperation. I wish you satisfaction from work and further development opportunities.

I would also like to thank the Shareholders and the Supervisory Board for their trust and support, which helps us manage the Company and the Capital Group in an efficient way.

In one of the interviews I said that aluminium is more valuable than gold. Today, aluminium is a desired raw material on our way to climate neutrality, perfectly suited to the circular economy concept, which is going to play a key role in the leading sectors of economy. This should bring opportunities for further development of the Capital Group.

Yours faithfully,