Pkp Cargo Spolka Akcyjna · GPW:PKP
Pkp Cargo Spolka Akcyjna — PKP Cargo — H1 2014 Earnings Presentation
27 slides from Pkp Cargo Spolka Akcyjna's earnings presentation, Aug 28, 2014
Slide 1: Record results and successful reorganisation
Record results and successful reorganisation Financial results for the first half of 2014 28 August 2014
Slide 2: Agenda
Agenda Major achievements Operating results Financial results Summary 2
Slide 3: Record financial results on a competitive market
Record financial results on a competitive market PLN 2 100 m PLN 128 m PLN 1 931 m REVENUE OPERATING NET PROFIT EXPENSES -8% y/y in H1 2014 -11% y/y in H1 2014 +67% Consistent cost-cutting Impact of the situation in the coal market y/y policy PLN 257 m PLN 350 m 56.7% CAPEX EBITDA MARKET Rolling sto
Slide 4: Reorganisation of the Group – improved management and operation
Reorganisation of the Group – improved management and operation New management . Better information flow, greater flexibility model . Reduced operating costs . Trade structure adapted to the market needs Finansoweof Consolidation . 10 7 divisions, location near major trade routes in Poland div
Slide 5: Agenda
Agenda Major achievements Operating results Financial results Summary 5
Slide 6: Clear leader of the rail freight market
Clear leader of the rail freight market Market share of the PKP CARGO Group PKP CARGO freight in H1 2014 In terms of freight turnover, H1 2014 H1 2013 H1 2014 change % PKP CARGO Freight turnover Others 13 947 13 522 -3.0% Group (m tkm) 43.3% 56.7% Volume (‘000 t) 52 832 51 221 -3.0% Source: UTK Coal
Slide 7: Hard coal - lower competitiveness of Polish coal
HARD COAL - lower competitiveness of Polish coal, decrease in export freight, increase in domestic freight PKP CARGO: freight turnover - coal H1 2014 bn tkm 6.0 Freight turnover growth: +7% y/y for domestic, transit -16% and import freight 5.0 2.3 Winning the largest coal transport tender in Pol
Slide 8: Aggregates and construction materials
AGGREGATES AND CONSTRUCTION MATERIALS – record infrastructural investments, new PKP CARGO’s sales initiatives PKP CARGO: freight turnover - aggregates H1 2014 and construction materials bn tkm 2.7 Better economic outlook in the construction sector +38% (construction and assembly production +10% y/
Slide 9: Metals, ores and scrap metal
METALS, ORES AND SCRAP METAL – new contracts and low raw material prices - good prospects for H2 2014 PKP CARGO: freight turnover – metals, H1 2014 ores and scrap bn tkm The largest contract in the market with the ArcelorMittal -11% Group and the first transports of 120m rails 2.0 1.7 Continued
Slide 10: Intermodal transport – new contracts in a growing market
INTERMODAL TRANSPORT – new contracts in a dynamically growing market PKP CARGO: freight turnover - intermodal H1 2014 m tkm +4% 6% Recovery of the market position in Q2 Commercialisation of the operations of the Poznań 155 160 154 terminal (a new permanent connection to ports from 150 128 129 -5
Slide 11: Agenda
Agenda Major achievements Operating results Financial results Summary 11
Slide 12: Record EBITDA profitability
Record EBITDA profitability EBITDA EBITDA Net margin margin +3.1 +2.7 312 m 350 m 16.7% 13.6% 6.1% H1 2013 H1 2014 3.4% +PLN38 m +12% y/y H1 2013 H1 2014 H1 2013 H1 2014 EBIT Net profit Operating revenue vs. expenses* (PLN m) (PLN m) -PLN101 m +34% +67% -PLN152 m 2 177 169 2 067 2 076 128 1 915 77 1
Slide 13: Cost effectiveness
Cost effectiveness Operating expenses Infrastructure access PLN 1,931 m in Q1/14 Other -11% y/y 21% Employee- >20% decrease in unit cost -118 m related Optimisation of freight logistics Depreciation expenses 9% 38% Fuel 5% Energy Infrastructure Employee benefits 10% access 17% Cost reduction b
Slide 14: Investment directions: rolling stock, intermodal, IT
Investment directions: rolling stock, intermodal, IT Modernisation and routine repairs H1 2014 Increase in investment to PLN 257 m as expected, +PLN85 m 213 adjusted to the rolling stock needs (+3,000 wagons y/y) 128 Replacement investment ~10% of sales >90% repairs within the Group, visible e
Slide 15: Strong balance sheet, various financing possibilities
Strong balance sheet, various financing possibilities Net cash H1 2014 PLN m 400 331 0,80 +PLN 136 m from operating activities 0,70 0.75 0,60 Influence of one-off events on the cash level at the end 0.64 0.68 0,50 of period 200 0.53 0,40 110 74 0,30 Investment financing in H1 with own funds an
Slide 16: Summary
Agenda Major achievements Operating results Financial results Dziękujemy za uwagę Summary 16
Slide 17: PKP CARGO – new Polish Champion ready for expansion
PKP CARGO – new Polish Champion ready for expansion Group after internal reorganisation Significant potential Optimised business modelDziękujemy za uwagę for domestic and Solid financial results international Potential for debt growth development 17
Slide 18: Key challenges
Key challenges .Taking advantage of big infrastructure investments and energy security program Commercial .Development of international freight .New intermodal connections . Better use of resources Drivers - increase in the working time on the locomotive Operational Rolling stock– improvemen
Slide 19: Q&A Session
19 Q&A Session LoG 2 IsTICS
Slide 20: Transport results
Transport results Freight turnover (m tkm) Change Share Share H1 2014 H1 2013 % H1 2014 H1 2013 solid fuels 5 733 6 738 -15% 42% 48% including coal 5 020 5 977 -16% 37% 43% aggregates and construction 2 674 1 940 38% 20% 14% materials metals and ores 1 741 1 953 -11% 13% 14% chemicals 877 836 5% 6%
Slide 21: Consolidated profit and loss statement
Consolidated profit and loss statement PLN m H1 2014 H1 2013 change % Sales revenue 2 053.3 2 152.7 -5% Revenue from the sales of goods and materials 23.7 114.0 -79% Other operating revenue 22.8 24.5 -7% Total operating revenue 2 099.8 2 291.2 -8% Depreciation and impairments 181.5 186.0 -2% Consump
Slide 22: Consolidated statement of financial position
Consolidated statement of financial position PLN m As at 30/06/2014 As at 31/12/2013 Tangible fixed assets 3 926.4 3 855.4 Intangible assets 58.1 61.4 Goodwill 2.7 2.7 Investment property 1.4 1.4 Investments measured using the equity method 33.6 38.2 Other non-current financial assets 6.1 6.1 Other
Slide 23: Consolidated statement of financial position
Consolidated statement of financial position PLN m As at 30/06/2014 As at 31/12/2013 Share capital 2 239.3 2 166.9 Supplementary capital 625.8 692.8 Other equity components (17.0) (16.4) Retained earnings / Uncovered losses 585.0 603.2 Equity attributable to shareholders of the parent company 3 433.
Slide 24: Consolidated cash-flow statement
Consolidated cash-flow statement PLN m H1 2014 H1 2013 Gross profit/(loss)for the financial year 163.6 104.7 Adjustments: Depreciation of fixed assets 181.5 186.8 Impairment of fixed assets - (0.8) Profit on the sale of fixed assets and intangible assets 5.2 11.6 Profit (loss) on operating activitie
Slide 25: Consolidated cash-flow statement
Consolidated cash-flow statement PLN m H1 2014 H1 2013 Expenditures in respect of purchase of fixed assets and intangible assets (309.9) (209.8) Proceeds from the sale of fixed assets and intangible assets 0.8 1.1 Proceeds from the sale of other financial assets - 0.0 Interest received 15.1 14.8 Div
Slide 26: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by PKP CARGO S.A. (“Company”). Neither this Presentation nor any part of this Presentation may be copied, distributed or delivered, directly or indirectly, to any person for any purpose without the knowledge and consent of the Company.
Slide 27: Investor Relations contact
For additional information on PKP CARGO please contact the Investor Relations Department: PKP CARGO S.A. tel: +48 22 391 47 09 Investor Relations Department ul. Grójecka 17 fax: +48 22 474 29 53 02-021 Warszawa e-mail: relacje.inwestorskie@pkp-CARGO.eu 27