Coal Energy S.a. · GPW:CLE
Coal Energy — Investor Presentation (December 2012)
16 slides from Coal Energy's investor presentation, December 2012
Slide 1: Coal Energy – a leading Ukrainian coal mining company
Coal Energy – a leading Ukrainian coal mining company Management Presentation December 2012
Slide 2: Disclaimer
Disclaimer The information in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the
Slide 3: Contents
Contents 1 Company Overview 4 2 Coal Mining Market Overview 7 3 1Q FY2013 Performance Overview 11 3
Slide 4: 1. Company Overview
1. Company Overview 4
Slide 5: Coal Energy – Key Indicators
Coal Energy – Key Indicators 1Q FY2013 Results (1) Location of Operating Assets Resources(2) 235.5 mln t Reserves(3) 151.2 mln t Russia Production(4) 0.5 mln t Belarus Poland Sales 0.4 mln t UKRAINE Slovakia Revenue US$ 39.4 mln Hungary Moldova Romania EBITDA US$ 13.5 mln Bulgaria Georgia Domestic /
Slide 6: Investment Highlights Summary
Investment Highlights Summary • #3 by reserves and #4 by production in Ukraine among private coal producers(1); Significant reserves 1 with growth potential • 235 mln.t of in-place coal resources under JORC, 151 mln.t of proven and probable coal reserves under JORC(2); • 2x reserves growth potential
Slide 7: 2. Coal Mining Market Overview
2. Coal Mining Market Overview 7
Slide 8: Thermal coal market: production growth and good perspectives on the domestic market
Thermal coal market: production growth and good perspectives on the domestic market …. • Local power plants bought 37.2 mln tonnes of salable coal in 2011, which accounted for 82% from the total thermal coal output. During 9 months 2012 the power plants consumed 3.6% more thermal coal compared to th
Slide 9: Thermal coal market: growing competition and lagged demand on export destinations
Thermal coal market: ... growing competition and lagged demand on export destinations The countries of Eastern Europe and Turkey are the key destinations Price increase for thermal coal is caused by growing for export opportunities demand for it in Ukraine, but margins experience Largest thermal coa
Slide 10: Coking coal market: price correction on the back of significant deferred demand
Coking coal market: price correction on the back of significant deferred demand Extraction has been falling since 2001… Local private mining companies Correction in prices is caused by volatility on 45.0 Ukraine’s Coking Coal Output, Mt (9 months 2012) dominate in volume of extraction the steel mark
Slide 11: 3. 1Q FY13 Performance Overview
3. 1Q FY13 Performance Overview 11
Slide 12: Integrated Business Model
Integrated Business Model Coal Energy activities include all stages of coal production, waste dumps processing, coal beneficiation and trading, the first two from the list being the key activities of the company Consumers Government (2) ROM coking coal Sales of ERUs(1) Acquisitions from third pariti
Slide 13: Key Company Sales Indicators
Key Company Sales Indicators Coal sales volume, kt 1,575 The decrease was caused 1,600 1,472 1,600 mainly by abnormally high comparison base: in 4Q The decrease was FY2012 Coal Energy caused mainly by 1,200 marketed inventory surplus, 1,200 activity reduction in created in the previous the steel mar
Slide 14: Production and Cash Costs Overview
Production and Cash Costs Overview Underground Mining, kt Waste Processing, kt 1,800 600 568 1,639 1,600 310 500 123 thousand tonnes of middlings were 1,400 beneficiated on Postnikovskaya plant into 71 thousand tonnes of high quality 1,200 1,061 400 coal concentrate 400 1,000 267 300 262 800 1,329 1
Slide 15: Dynamics of Production Results
Dynamics of Production Results Coal output by types of coal, kt 200 182 182 178 178 179 180 155 25 25 159 147 150 151 152 152 152 25 23 22 160 147 147 147 24 140 21 24 24 29 28 28 26 28 28 26 120 100 80 153 156 157 157 156 125 125 126 124 126 135 60 123 123 121 121 123 40 20 0 Jul-11 Aug-11 Sep-11 O
Slide 16: Appendix 1. Legal Structure
Appendix 1. Legal Structure Luxembourg Coal Energy S.A. 100% Cyprus Nertera Investments Limited 100% BVI Coal Energy Trading Ltd 99% 99% Tekhinovatsiya LLC Ugledobycha LLC 99% 99% Donbasuglerazrabotka LLC Eximenergo LLC 99% 99% Donantracit LLC Nedra Donbasa LLC Ukraine 99% 99% Antracit LLC CwAL LE “