Lubelski Wegiel Bogdanka Sa · GPW:LWB
Lubelski Wegiel Bogdanka Sa — 1-3Q 2011 Earnings Presentation
27 slides from Lubelski Wegiel Bogdanka Sa's earnings presentation, Nov 9, 2011
Slide 1: Investors presentation 1-3Q 2011
Investors presentation 1-3Q 2011 Warsaw, 9 November 2011
Slide 2: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by BOGDANKA S.A. ("Company"). The information contained in the Presentation has been gathered and prepared with due diligence, based on facts and information originating from sources which the Company views as reliable, and in particula
Slide 3: Presenting team
Presenting team Mirosław Taras Krystyna Borkowska Zbigniew Stopa CEO CFO The Deputy to the President of Management for Technical Affairs 3
Slide 4: Agenda
Agenda Introduction Hard coal market Bogdanka in 3Q2011 Investments in 3Q2011 Appendices 4
Slide 5: Effectiveness leader
Effectiveness leader One of the largest and most state-of-the-art hard coal mines in CEE, Producer of power coal used for production of electricity, Recoverable resources: 247 million metric tonnes of coal (current licence ensures the mine’s life until 2034), LW BOGDANKA S.A. initiated a procedure t
Slide 6: Agenda
Agenda Introduction Hard coal market Bogdanka in 3Q2011 Investments in 3Q2011 Appendices 6
Slide 7: Situation of Polish coal market in 3Q 2010
Situation of Polish coal market in 3Q 2010 In 2011 an increase in demand for power coal on the domestic market is observed. Coal reserves on mounds have decreased significantly. An average price of power coal (in all sizes) in the period between January and September 2011 amounted to PLN 276.79 per
Slide 8: … creates import growth
… creates import growth Import and export of coal Coal output in the industry Power coal sales in the (1-3Q 2011, million of (1-3Q 2011, million of tonnes) industry tonnes)* (1-3Q 2011,million of tonnes) 14.0 60,0 11.7 52.07 52.14 42.1 44.2 45,0 12.0 50,0 43.33 43.61 40,0 10.0 9.4 8.8 35,0 40,0 8.0
Slide 9: Agenda
Agenda Introduction Hard coal market Bogdanka in 3Q2011 Investments in 3Q2011 Appendices 9
Slide 10: Results for 1-3Q 2011 meet the assumptions
Results for 1-3Q 2011 meet the assumptions PLN (000’) 1-3Q 2011 1-3Q 2010 Change (%) Revenue 865 761 934 224 -7.33 Gross profit 182 880 317 232 -42.35 EBITDA 220 662 337 458 -34.61 EBIT 101 691 233 140 -56.38 Net profit 88 043 192 980 -54.38 Earnings per share (PLN)* 2.56 5.62 -54.45 * On a stand al
Slide 11: Commercial coal extraction in 1-3Q 2011 with intensified preparatory works
Commercial coal extraction in 1-3Q 2011 with the intensified preparatory works … Gross extraction (1,9% growth 3Q 2011/3Q 2010) is executed with the use of maximum Commercial coal yield power and extraction capacity. Net extraction (12,6% fall 3Q 2011/3Q 2010) depends on the intensity of preparatory
Slide 12: ... which is reflected in profitability ratios for 1-3Q2011
... which is reflected in profitability ratios for 1- 3Q2011 40.00% 36.12% 35.00% 30.00% 24.96% 25.49% 25.00% 20.66% 20.00% 15.00% 11.75% 10.17% 10.00% 5.00% 0.00% 3Q2010 3Q2011 Net profit margin EBIT margin EBITDA margin Source: Company 12
Slide 13: Results for three quarters 2011 meet the Company’s assumptions
Results for three quarters 2011 meet the Company’s assumptions Revenue on sales: The Group’s sales revenue was by 7.3% lower than in the analogous period of 2010. The decrease in total revenue is attributable to lower revenue on sales of coal (by 11.2%). A decrease in revenue on core activity, i.e.
Slide 14: High operational indicators in the industry despite ongoing preparatory works
High operational indicators in the industry despite ongoing preparatory works Much higher coal extraction efficiency than the average of the industry in Poland: - general efficiency in 1-3Q 2011: 238,38% of the industry average (274,12% in 1-3Q 2010); - underground efficiency in 1-3Q 2011: 315,82% o
Slide 15: Key events in the third quarter 2011 and after the balance-sheet date
Key events in the third quarter 2011 and after the balance-sheet date On 19 July 2011 a long-term coal sale agreement was concluded with PH-U “Energokrak” Sp. z o.o. with registered office in Kraków - the value of the Agreement, without regard to additional options, possible increases, deviations an
Slide 16: Agenda
Agenda Introduction Hard coal market Bogdanka in 3Q2011 Investments in 3Q2011 Appendices 16
Slide 17: Key material investments of the LW BOGDANKA Group in 2011
Key material investments of the LW BOGDANKA Group in the 3 quarters of 2011 and the 3 quarters of 2010 Outlays incurred Outlays incurred Key material investments [PLN '000] 01.01.2011 - 01.01.2010 – 30.09.2011 30.09.2010 Construction and assembly work 402 792 271 889 Completion of deliveries and pur
Slide 18: Key development investments: shaft 2.1 in Stefanów field
Key development investments of LW BOGDANKA S.A. in Q3 2011 and after the balance-sheet date 1. Construction of the 2.1 extraction and ventilation shaft in the Stefanów field a. Hoist tower together with the lift machinery room building for shaft 2.1: • In September 2011 the construction works and as
Slide 19: Key development investments: extension of Mechanical Coal Processing Plant
Key development investments of LW BOGDANKA S.A. in Q3 2011 and after the balance-sheet date 2. Extension of the Mechanical Coal Processing Plant a. Extension of the MCPP processing capacity from its current level of 1200 up to 2400 t/h: • The construction works and assembly of equipment were concent
Slide 20: Key development investments: buildings in the Stefanów Field
Key development investments of LW BOGDANKA S.A. in Q3 2011 and after the balance-sheet date 3. Construction of buildings in the Stefanów Field a. The main fan station at shaft 2.1. • In August 2011 the construction structure of the fan station was commissioned by UGBKUE. The mine obtained the use pe
Slide 21: Thank You!
Thank You! Lubelski Węgiel BOGDANKA S.A. Bogdanka, 21-013 Puchaczów tel. (0-81) 462-51-00, 462-51-01 fax (0-81) 462-51-91, 462-56-37 bogdanka@lw.com.pl 21
Slide 22: Agenda
Agenda Introduction Hard coal market Bogdanka in 3Q2011 Investments in 3Q2011 Appendices 22
Slide 23: Profit and loss account – 1-3Q 2011
Profit and loss account – 1-3Q 2011 1-3Q 1-3Q Change (PLN ‘000) 2011 2010 2011/2010 [%] Revenue 865 761 934 224 -7.33 Cost of products, goods and materials sold, sales and 767 118 692 677 10.75 administrative costs Gross profit on sales 98 643 241 547 -59.16 Other revenue 8 056 4 458 80.71 Other cos
Slide 24: Balance sheet
Balance sheet PLN (000’) 30.09.2011 31.12.2010 Fixed assets, including: 2 587 138 2 163 972 Cash and cash equivalents 52 673 50 909 Current assets, including: 290 201 664 073 Cash and cash equivalents 100 328 472 101 Total assets 2 877 339 2 828 045 Current liabilities 414 147 403 139 Non-current li
Slide 25: Cash Flow
Cash Flow 9 months 9 months (‘000 PLN) 2011 2010 Operating cash flow 237 989 283 836 Operating cash inflow 255 192 334 598 Interest paid -1 833 -8 009 Income tax paid -15 370 42 753 Investing cash flow -553 143 -447 443 Acquisition of tangible fixed assets -561 555 -462 207 Acquisition of intangible
Slide 26: Sales structure – 1-3Q 2011
Sales structure – 1-3Q 2011 1-3Q Share 1-3 Q Share Wyszczególnienie (tys. zł) 2011 [%] 2010 [%] Coal sales 805 380 93.03 906 651 97.05 Sales of ceramics 7 043 0.81 6 699 0.72 Other activities 32 552 3.76 14 869 1.59 Sales of goods and materials 20 786 2.40 6 005 0.64 Total sales revenue 865 761 100.
Slide 27: Structure of costs by type at Bogdanka – 1-3 Q 2011
Structure of costs by type at Bogdanka – 1-3 Q 2011 3Q2010 3Q2011 27
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