Pkp Cargo Spolka Akcyjna · GPW:PKP

Pkp Cargo Spolka Akcyjna — PKP CARGO Group — Investor Presentation (October 2017)

31 slides from Pkp Cargo Spolka Akcyjna's investor presentation, October 2017

  1. Slide 1: PKP CARGO Group Corporate presentation

    PKP CARGO Group Corporate presentation October 2017 © Copyright PKP CARGO S.A.

  2. Slide 2: PKP CARGO Group's 2016 and H1 2017 results

    PKP CARGO Group’s 2016 and H1 2017 results* ✓ ✓ ✓ MARKET SHARE EBITDA CAPEX 12M 51.6% PLN 562 million PLN 533 million measured by freight turnover (-4.2 p.p. yoy) profitability of 12.7% H1 52.7% PLN 333 million PLN 201 million measured by freight turnover (+2.8 p.p. yoy) profitability of 14.7% REVEN

  3. Slide 3: Adjusted financial results – costs under control

    Adjusted financial results* – costs under control Operating revenues Operating expenses PLN million PLN million -0.1% +4% 4,416 4,411 4,249 4,437 +7% +0,1% 2,123 2,267 2 219 2,222 2015 2016 H1 2016 H1 2017 2015 2016 H1 2016 H1 2017 EBITDA Net profit PLN million PLN million -12% +72% 637 562 94 193 3

  4. Slide 4: Agenda

    AGENDA ‖ PKP CARGO at a glance ‖ Market overviev ‖ Key accomplishments © Copyright PKP CARGO S.A.

  5. Slide 5: PKP CARGO Group's enormous potential

    PKP CARGO Group’s enormous potential 10% © Copyright PKP CARGO S.A. 5

  6. Slide 6: PKP CARGO – leading player in the EU, Poland and the Czech Republic

    PKP CARGO – leading player in the EU, Poland and the Czech Republic PKP CARGO is the third largest rail freight company in the EU… …Operating on the second largest rail freight market, located Main EU rail freight operators by freight turnover (2015) at the crossroads of European rail networks Bn tk

  7. Slide 7: PKP CARGO Group's international potential

    PKP CARGO Group’s international potential in international transport services in the transport corridor network Main streams for container transport in Leveraging the potential the CEE for modernizing the key Location of Cooperation PKP CARGO CONNECT intermodal terminals transport corridors with Swe

  8. Slide 8: Steady development of collaboration with China

    Steady development of collaboration with China Fruitful development of collaboration Mix of launched connections with China freight turnover data for 2016 2016 data change yoy Suzhou – Warszawa Praga 9% 13% Chengdu – Łódź Olechów 1% +34% trains 22% Zhengzhou – Hamburg Billwerder Zhengzhou/Erlian – H

  9. Slide 9: PKP CARGO – multi-purpose logistic operator

    PKP CARGO – multi-purpose logistic operator – comprehensive product offer CARGO GROUPS RAIL FREIGHT ANCILLIARY SERVICES Forwarding – rail, road, water transport, storage, transshipment, Coal customs duty Aggregates Terminals – conventional and intermodal Metals Rolling stock – maintenance, rapair, r

  10. Slide 10: PKP CARGO's business model

    PKP CARGO’s business model Rolling stock Terminals Human capital RESOURCES Rail infrastructure Diesel fuel Traction energy KEY Key suppliers of fuels Key suppliers of the energy SUPPLIERS on the Polish market on the Polish market Regulated prices Market prices Market prices Power plants Coal mines S

  11. Slide 11: Agenda

    AGENDA ‖ PKP CARGO at a glance ‖ Market overviev ‖ Key accomplishments © Copyright PKP CARGO S.A.

  12. Slide 12: Poland – Stable market based on bulk commodities

    Poland – Stable market based on bulk commodities Rail freight transport market by freight turnover PKP CARGO’s market share by commodity segments bn tkm by 2016 freight turnover 60 51,6 54,0 90% 48,8 49,1 50,9 50,1 50,6 50,6 71% 50 43,6 40 60% 48% 52% 44% 47% 30 27% 20 30% 10 0 0% Hard coal Aggregat

  13. Slide 13: Czech Rep. – Stable volume growth since 2009

    Czech Rep. – Stable volume growth since 2009 Rail freight transport market by freight turnover AWT’s market share bn tkm by 2016 freight turnover ČD Cargo, a. s. 15,2% 20 15.4 14.3 14.3 14.6 15,3 15,5 PKP CARGO 12.8 13.8 14.0 (AWT+PKPC) 4,2% 10 METRANS Rail s.r.o. 7,1% 11,0% Unipetrol Doprava, s.r.o

  14. Slide 14: Strengthening of the PKP CARGO Group's position

    Strengthening of the PKP CARGO Group’s position PKP CARGO Group’s share of the Polish market PKP CARGO Group’s share of the Polish market by freight turnover by freight volume +2.8 p.p. +2.5 p.p. 51,9% 52,0% 52,4% 53,0% 50,2% 43,3% 44,1% 45,0% 44,8% 45,8% Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q2 2

  15. Slide 15: Positive developments on major markets

    Positive developments on major markets Intermodal Aggregates and construction materials Metals and ores Fraight turnover, billion tkm Freight turnover, billion tkm Freight turnover, billion tkm 1,52 +32% 2,36 +19% +33% 1,15 2,05 1,78 1,72 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 Liquid fuels

  16. Slide 16: Intermodal

    Intermodal Key events in H1 2017 Intermodal freight turnover, billion tkm ► Rapid development of the New Silk Road. Higher land transport from/to China by 88% yoy measured by container volume of which AWT: of which AWT: 0.10 0.05 ► The volume of containers transported by PKP CARGO to and from Polish

  17. Slide 17: Aggregates and construction materials

    Aggregates and construction materials Key events in H1 2017 Aggregates and construction materials ► The lift of the financial cap for the National Road Building Program in 2014-2020 freight turnover, billion tkm (with an outlook to 2025) from PLN 107 billion to PLN 135 billion will enable the of whi

  18. Slide 18: Metals and ores

    Metals and ores Key events in H1 2017 Metals and ores freight turnover, billion tkm ► Higher steel production: up 16.1% yoy (5.1 million tons) in Poland, up 4.1% yoy (86.1 million tons) in the EU and up 4.4% of which AWT: of which AWT: (836 million tons) across the globe 0.03 0.04 +19% ► Global iron

  19. Slide 19: Hard coal

    Hard coal Key events in H1 2017 Hard coal freight turnover, billion tkm ► Hard coal output down 1.5 million tons (-4.3% yoy), hard coal sales down (- of which AWT: of which AWT: 3.3% yoy) coupled with inventories down by 3.3 million tons (-63% yoy) 0.25 0.12 ► Transport in Poland measured by freight

  20. Slide 20: Agenda

    AGENDA ‖ PKP CARGO at a glance ‖ Market overviev ‖ Key accomplishments 20© Copyright PKP CARGO S.A.

  21. Slide 21: Continued development of the pillars of success

    Continued development of the pillars of success STRENTHENING THE DEVELOPING LEADING POSITION INTERNATIONAL DYNAMIC DEVELOPMENT OF COOPERATION INTERMODAL TRANSPORT CONSTANT BUILDING OF SHAREHOLDER VALUE PKP CARGO – TRANSPARENT COMPANY OF THE YEAR 2016 OPTIMIZATION OF TANSPORT EXECUTION OF SPECIALIZED

  22. Slide 22: Outlook: key commercial areas – challenges for PKP CARGO

    Outlook: key commercial areas – challenges for PKP CARGO  Development of Polish ports  Terminal network expansion  Development of collaboration along the New Silk Road Intermodal  Return to the concept of energy security based on hard coal Coal  Closure of the Paskov and Łazy mines  Coking coa

  23. Slide 23: Outlook: key growth areas 2017

    Outlook: key growth areas 2017 New Silk Road Preparing rolling Specialized stock to intensify transport freight transport Development 2017 Transport Extending the – Black Sea logistics chain – Adriatic Sea – Baltic Sea Social dialogue © Copyright PKP CARGO S.A. 23/32

  24. Slide 24: Appendix

    APPENDIX 24© Copyright PKP CARGO S.A.

  25. Slide 25: Consolidated Statement of Comprehensive Income

    Consolidated Statement of Comprehensive Income PLN million 2016 2015 % change Revenues on the sale of services 4,342 4,330 0% Revenue from sales of goods and materials 30 33 -9% Other operating revenue 39 191 -79% Total operating revenue 4,411 4,554 -3% Depreciation and amortization and impairment l

  26. Slide 26: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position As at 31 ASSETS [PLN million] As at 31 December December 2016 2015* Property, plant and equipment 4,701 4,720 Intangible assets 56 66 Goodwill - - Investment property 1 1 Investments accounted for under the equity method 41 40 Other long-term receivables

  27. Slide 27: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position As at 31 As at 31 EQUITY AND LIABILITIES [PLN million] December December 2016 2015* Share capital 2,239 2,239 Supplementary capital 619 619 Other items of equity 11 -3 Exchange differences resulting from conversion of financial statements of foreign opera

  28. Slide 28: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement Cash flow from operating activities [PLN million] 2016 2015 Gross result For the financial year -151 11 Adjustments: Amortization and depreciation of non-current assets 596 468 Impairment of non-current assets 25 181 (Profit) / loss on the sale/liquidation of propert

  29. Slide 29: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement Cash flow from investing activities [PLN million] 2016 2015 Expenditures to acquire property, plant and equipment and intangible assets -588 -509 Proceeds from the sale of property, plant and equipment and intangible assets 14 8 Expenditures to acquire entities measu

  30. Slide 30: Legal disclaimer

    Legal disclaimer This presentation has been prepared by PKP CARGO S.A. (“Company”, “PKP CARGO S.A.”) solely for information purposes. This presentation may not be copied, distributed or transmitted directly or indirectly to any person, for any purpose whatsoever without PKP CARGO’s knowledge and exp

  31. Slide 31: Investor Relations contact details

    To obtain additional information about PKP CARGO, please contact the Investor Relations Department: PKP CARGO S.A., Investor Relations Department, ul. Grójecka 17, 02-021 Warsaw, Poland Telephone: +48 22 391-47-09 Fax: +48 22 474-29-53 e-mail: relacje.inwestorskie@pkp-cargo.eu 31© Copyright PKP CARG

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