Pkp Cargo Spolka Akcyjna · GPW:PKP
Pkp Cargo Spolka Akcyjna — PKP Cargo — Q3 2020 Earnings Presentation
27 slides from Pkp Cargo Spolka Akcyjna's earnings presentation, 2020
Slide 1: PKP CARGO Group Q3 2020
PKP CARGO GROUP Q3 2020 LEADING FREIGHT CARRIER
Slide 2: Agenda
Agenda 01 02 03 04 Market Commercial Financial PKP CARGO environment results results Group 2 GRUPA PKP CARGO 2020
Slide 3: Results of the PKP CARGO Group in Q3 2020
Results of the PKP CARGO Group in Q3 2020 Financial data Operational data Q3 2020 Q3 2020 PLN 1,009.6 million in 5.99 billion tkm freight revenue on contracts turnover with customers 23.9 million tons freight PLN 226.9 million volume EBITDA PLN 36.6 million EBIT 3 GRUPA PKP CARGO 2020
Slide 4: Market environment
01 Market environment 4 GRUPA PKP CARGO 2020
Slide 5: In 9M 2020, the cargo rail transport market in Poland shrank by more than 10%
01 In 9M 2020, the cargo rail transport market in Poland shrank by more than 10% on an annual basis. POLISH RAIL FREIGHT MARKET MEASURED BY FREIGHT TURNOVER Jan-Sep 2019 and 2020 Market share Market share billion tkm measured by freight measured by freight turnover turnover -10,1% 9M 2019: 9M 2020:
Slide 6: The largest players with a universal profile continued to post significant slumps in Q3
01 The largest players with a universal profile of business continued to post significant slumps in Q3 CHANGE IN FREIGHT TURNOVER Jan-Sep 2020 % yoy Total losses on the Total gains on the Net market position: market: market: -4.3 billion tkm -5.4 billion tkm +1.1 billion tkm Logistics & Transport -3
Slide 7: Commercial results
02 Commercial results 7 GRUPA PKP CARGO 2020
Slide 8: COVID-19 epidemic and climate policy have curtailed market demand for freight transport
02 The COVID-19 epidemic and climate policy have curtailed market demand for freight transport in the most important cargo categories Solid fuels • Power sector’s dwindling coal demand and downtime in mines • Higher energy imports from neighboring countries and high coal inventories in power plants
Slide 9: Best quarterly results this year in terms of freight performance
02 The Group posted the best quarterly results this year in terms of freight performance, having improved yoy results in two key segments PKP CARGO GROUP’S FREIGHT TURNOVER Q3 2019 – Q3 2020 million tkm -10.2% 6,671 Hard coal 6,471 Change % yoy 5,989 5,805 2 071 5,327 Aggregates 2 142 1 716 -17.1% a
Slide 10: The Group intensified its commercial activities and expanded intermodal connections
02 The Group intensified its commercial activities and expanded its offering of intermodal connections in the recent months Launch of the Warsaw-Gdynia-Warsaw operator connection under the CONNECT OPERATOR brand JULY Signing of agreements with the ENEA Group for deliveries of coal to power plant
Slide 11: Financial results
03 Financial results 11 GRUPA PKP CARGO 2020
Slide 12: PKP CARGO is gradually rebuilding its revenues and recurring EBIT
03 PKP CARGO is gradually rebuilding its revenues and recurring EBIT after the weak Q2 2020 PKP CARGO GROUP’S REVENUE ON CONTRACTS WITH CLIENTS Q3 2019 – Q3 2020 PLN million -15,3% Gradual improvement in revenues as a result of growing transport 1 191 1 165 activity in each month of Q3 1 036 929 1
Slide 13: The Group consistently pursues significant savings efforts in all cost categories
03 The Group consistently pursues significant savings efforts in all cost categories COMPONENTS OF THE EVOLUTION IN THE PKP CARGO GROUP’S OPERATING PROFIT Q3 2019 vs. Q3 2020 PLN million -15.3% +4.5% -5.5% -17.1% -7.2% -7.0% -12.3% -11.8% Change % yoy 80,9 -44.3 36,6 60.9 -181.7 8.1 12.7 5.9 10.3 25
Slide 14: Non-recurring events and cost efficiency translated into a significant increase in EBITDA
03 Non-recurring events and improvement in cost efficiency translated into a significant increase in EBITDA and net result in qoq terms EBITDA OF THE PKP CARGO GROUP Q3 2019 – Q3 2020 PLN million -13,7% EBITDA after 9M 2020: PLN 433.6 million 263,0 226,9 146,8 116,7 90,0 Q3 2019 Q4 2019 Q1 2020 Q2
Slide 15: Stable balance sheet structure and secured funding sources
03 The Group has a stable balance sheet structure and secured funding sources KEY BALANCE SHEET ITEMS FINANCIAL RATIOS PLN million 31 Dec 2019 30 Sep 2020 9M 2019 9M 2020 Fixed capital 6,539 6,288 ROA2 1.2% -3.1% Non-current assets 6,504 6,453 Coverage ratio1 ROE3 2.5% -7.6% 1.01 0.97 Total debt EBI
Slide 16: PKP CARGO Group
04 PKP CARGO Group 16 GRUPA PKP CARGO 2020
Slide 17: Group's headcount decreased over the last 12 months
04 During the last 12 months, the Group’s headcount decreased significantly, but the downward trend in the market is likely to rebound HEADCOUNT IN THE PKP CARGO GROUP PKP CARGO S.A.’S FREIGHT TURNOVER in persons billion tkm -5.6% -2.4% 23,662 2.05 2.00 22,343 6 407 6 109 -4.7% Group companies PKP C
Slide 18: Dynamic growth of intermodal transport reflects goals of PKP CARGO Strategy
04 Dynamic growth of intermodal transport reflects goals of PKP CARGO Strategy SHARE OF INTERMODAL IN FREIGHT TURNOVER OF INTERMODAL FREIGHT TURNOVER OF PKP CARGO GROUP PKP CARGO GROUP First 9 months of each year Q3 2017-2020 million tkm % +8.9 p.p. CAGR: 9.6% 19.4% 3 028 3 086 2 926 16.5% 2 347 12.
Slide 19: PKP CARGO International recorded only a slight decrease in freight turnover
04 Despite the epidemic, PKP CARGO International recorded only a slight decrease in freight turnover PKP CARGO INTERNATIONAL GROUP’S FREIGHT TURNOVER million tkm -3,2% Intermodal 1,106 1,071 Increase by 11.8% yoy in January-September 2020 Nearly a 37% share in freight turnover 349 Solid fuels 39
Slide 20: Appendices
Appendices 20 GRUPA PKP CARGO 2020
Slide 21: Freight results
Z Freight turnover Freight results 9M 2020 9M 2019 Change % change Share – 9M 2020 Share – 9M 2019 [million tkm] Solid fuels 6,207 7,497 -1,291 -17.2% 36% 37% including: hard coal 5,114 6,360 -1,245 -19.6% 30% 31% Aggregates and construction materials 3,317 3,995 -678 -17.0% 19% 20% Metals and ores
Slide 22: Consolidated statement of comprehensive income
Z Consolidated statement of comprehensive income CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [PLN million] 9M 2020 9M 2019 Revenues from contracts with customers 2,974.2 3,616.6 Consumption of electricity and traction fuel (359.2) (430.2) Infrastructure access services (375.4) (431.6) Transport s
Slide 23: Consolidated statement of financial position
Z Consolidated statement of financial position ASSETS [PLN million] As at 30 September 2020 As at 31 December 2019 Rolling stock 4,312.2 4,329.6 Other property, plant and equipment 861.7 872.4 Right-of-use assets 1,022.7 1,078.8 Investments in entities accounted for under the equity method 41.7 40.4
Slide 24: Consolidated statement of financial position
Z Consolidated statement of financial position EQUITY AND LIABILITIES [PLN million] As at 30 September 2020 As at 31 December 2019 Share capital 2,239.3 2,239.3 Supplementary capital 782.4 781.4 Other items of equity (155.9) (77.7) FX differences from translation of financial statements of foreign o
Slide 25: Consolidated cash flow statement
Z Consolidated cash flow statement Cash flow [PLN million] 9M 2020 9M 2019 Cash flow on operating activities Profit / (loss) before tax (208.4) 129.0 Adjustments Depreciation and impairment losses 579.0 530.3 (Profits) / losses on interest, dividends 42.3 39.7 Interest received / (paid) 1.9 1.2 Inco
Slide 26: Disclaimers
Z Disclaimers This presentation has been prepared by PKP CARGO S.A. All the data set forth in this presentation are based on sources (“Company”, “PKP CARGO”) solely for information purposes. the Company deems to be exact and credible; however, the This presentation may not be copied, distributed or
Slide 27: Contact PKP CARGO Investor Relations
To obtain additional information about PKP CARGO, please contact the Development, Investor Relations and Promotion Department: PKP CARGO S.A. Development, Investor Relations and Marketing Department ul. Grójecka 17 02-021 Warsaw Telephone: +48 22 391-47-09 Fax: +48 22 474-29-53 e-mail : relacje.inwe