Lubelski Wegiel Bogdanka Sa · GPW:LWB

Lubelski Wegiel Bogdanka Sa — FY2011 Earnings Presentation

30 slides from Lubelski Wegiel Bogdanka Sa's earnings presentation, Mar 20, 2012

  1. Slide 1: Investors Presentation Y 2011

    INVESTORS PRESENTATION Y 2011 March 20, 2012

  2. Slide 2: Presenting Team

    PRESENTING TEAM ZbigniewStopa Mirosław Taras Krystyna Borkowska The Deputy to the CEO CFO President of Management for Technical Affairs 2

  3. Slide 3: Hard coal market, Bogdanka in 2011, Investments in 2011, Appendices

    Hard coal market Bogdanka in 2011 Investments in 2011 Appendices 3

  4. Slide 4: Increase in demand on the domestic market

    INCREASE IN DEMAND ON THE DOMESTIC MARKET …  In 2011 an increase in demand for power coal on the domestic market is observed. Coal reserves on mounds have decreased significantly.  The average price of power coal (all types) in the industry in 2011 was PLN 278,35 per tonne, was higher by 9.88% com

  5. Slide 5: Influences the increase in coal imports

    ...INFLUENCES THE INCREASE IN COAL IMPORTS Coal output in the industry Power coal sales in the industry (million of tonnes) (million of tonnes) 80.0 80.0 70.2 69.5 70.0 70.0 58.5 58.1 60.0 60.0 54.4 49.3 50.0 50.0 40.0 40.0 30.0 30.0 20.0 20.0 10.0 10.0 - - 2010 2011 2010 2011 Total coal output Powe

  6. Slide 6: Market position of LW Bogdanka S.A.

    MARKET POSITION OF LW BOGDANKA S.A. The Company maintains such level of coal production and sales that guarantees its current share in hard coal production in Poland of almost 8%, and more than 13% share in sales of power coal in Poland. 16% 14% LWB‘ market share (production) in the total market of

  7. Slide 7: LW Bogdanka S.A. – reliable supplier for commercial power sector

    LW BOGDANKA S.A. – RELIABLE SUPPLIER FOR COMMERCIAL POWER SECTOR Directions of coal sale in 2011 - LWB Directions of coal sale in 2011 – other producers 6.60% 0.70% 4.70% Commercial power sector 26.50% Industrial power sector Industrial and municipal heat and power plants 8.80% 62.40% Other domestic

  8. Slide 8: Hard coal market / Bogdanka in 2011 / Investments in 2011

    Hard coal market Bogdanka in 2011 Investments in 2011 Appendices 8

  9. Slide 9: Extraction of commercial coal in 2011 under the influence of intensified preparatory works

    EXTRACTION OF COMMERCIAL COAL IN 2011 UNDER THE INFLUENCE OF INTENSIFIED PREPARATORY WORKS  Gross extraction (8.78 million tons in 2011, i.e. a 12% increase in comparison with 2010) was executed with the use of maximum power and extraction capacity. Net extraction w LW BOGDANKA S.A. (‘000 tonnes) 

  10. Slide 10: Commercial coal extraction in Y2011 with intensified preparatory works

    COMMERCIAL COAL EXTRACTION IN Y2011 WITH THE INTENSIFIED PREPARATORY WORKS … Commercial coal yield 90% 81% 81% 80% 75% 74% 76% 76% 76% 72% 72% 73% 73% 71% 70% 67% 67% 69% 65% 66% 65% 66% 65% 64% 64% 58% 60% 60% 50% 40% 30% 20% 10% 0% January February March April May June July August September Octobe

  11. Slide 11: Results of the LW Bogdanka Group for 2011 (1)

    RESULTS OF THE LW BOGDANKA GROUP FOR 2011 (1) IVQ IVQ Change Change Item (PLN’000) 2011 2010 2011 2010 (%) (%) Revenue 435 588 296 223 47.05 1 301 349 1 230 447 5.76 Gross profit 201 773 92 452 118.25 384 653 409 684 (6.11) EBITDA 229 941 77 090 198.28 450 603 414 548 8.70 EBIT 164 048 43 332 278.58

  12. Slide 12: Results of the LW Bogdanka Group for 2011 (2)

    RESULTS OF THE LW BOGDANKA GROUP FOR 2011 (2) Revenue on sales:  In 2011, the Group's sales revenue was by 5.76% higher than in the analogous period of the previous year. The increase in total revenue is primarily attributable to higher revenue on sales of coal (by 2.83%) and higher revenue on othe

  13. Slide 13: Profitability ratios

    PROFITABILITY RATIOS 35,00% 34.63% 33.69% 30,00% 25,00% 22.47% 20.42% 20,00% 18.70% 17.00% 15,00% 10,00% 5,00% 0,00% 2010 2011 Net profit margin EBIT margin EBITDA margin Source: Company 13

  14. Slide 14: Key events in 2011 and after balance-sheet date (1) - trade agreements

    KEY EVENTS IN 2011 AND AFTER THE BALANCE-SHEET DATE (1) - trade agreements Date of the Contract value/ total trading for the No. Customer Subject of the agreement Term agreement previous 12 months coal supplies provided by the Company in 2012 for Vattenfall Heat the purposes of, among others, Żerań

  15. Slide 15: Key events in the Y 2011 and after the balance-sheet date (2)

    KEY EVENTS IN THE Y 2011 AND AFTER THE BALANCE- SHEET DATE (2) Partial release of provisions for real property tax on the value of underground workings:  on 2 February 2012, in connection with a judgement of the Constitutional Tribunal with regard to imposing real property tax on the value of under

  16. Slide 16: Key events in the Y 2011 and after the balance-sheet date (3)

    KEY EVENTS IN THE Y 2011 AND AFTER THE BALANCE- SHEET DATE (3) Introduction of employee shares to Giełda Papierów Wartościowych w Warszawie S.A.:  The procedure of introducing employee shares to the Warsaw Stock Exchange was completed on 4 January 2012 – 3,208,111 shares, i.e. 9.43% of LW BOGDANKA

  17. Slide 17: Hard coal market / Bogdanka in Y2011 / Investments in 2011

    Hard coal market Bogdanka in Y2011 Investments in 2011 Appendices 17

  18. Slide 18: Investment projects of the LW Bogdanka Group in 2011 and 2012

    INVESTMENT PROJECTS OF THE LW BOGDANKA GROUP IN THE 2011 AND THE 2012 Plan 2011 Plan Investment projects 2011 implementation 2012 (PLN’000) (PLN’000) (PLN’000) Gr.1 Development investments (development of the Stefanów Field) 437 369 384 308 235 666 A Technical infrastructure (shaft 2.1, development

  19. Slide 19: Investments in 2011 – key events

    INVESTMENTS IN 2011 – KEY EVENTS Investments:  1 October 2011 – launch of test run of mining panel in the Stefanów Field and achieving, at the beginning of November 2011, of a level of the average of 10,000 tons of coal extraction per day (which is a target level at this stage), with the use of exc

  20. Slide 20: Key investments in 2011

    KEY INVESTMENTS IN 2011 1. Investment in the Stefanów Field in order to double the Company’s production capacity  The development of the Stefanów Field is one of the largest investments in the European hard coal sector over the past several dozen years  The investment comprised the following tasks

  21. Slide 21: Investment tasks – plan for 2012 (1)

    INVESTMENT TASKS – PLAN FOR 2012 (1) Gr. 1 Investments in development: A. Investments in technical infrastructure  completion of building of storage reservoirs at shaft 2.1 in the Stefanów Field  completion of construction facilities for the Stefanów Field area  extension of central air condition

  22. Slide 22: Investment tasks – plan for 2012 (2)

    INVESTMENT TASKS – PLAN FOR 2012 (2) Gr. 3 Replacement investments:  modernisation and renovation of the existing machines and devices  building and modernisation of construction facilities and installations Gr. 4 Environmental protection  works connected with the extension of the mining waste du

  23. Slide 23: Hard coal market / Bogdanka in Y2011 / Investments in 2011

    Hard coal market Bogdanka in Y2011 Investments in 2011 Appendices 23

  24. Slide 24: 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 Investor Relations tel. +48 81 462 56 29 fax +48 81 462 55 14 ir@lw.com.pl 24

  25. Slide 25: Profit and loss account

    PROFIT AND LOSS ACCOUNT Change (PLN ‗000) Y2011 Y2010 2011/2010 [%] Revenue 1 301 349 1 230 447 5.76 Cost of products, goods and materials sold, sales and 1 035 717 926 865 11. 74 administrative costs Gross profit on sales 265 632 303 582 (12.50) Other revenue 5 597 3 902 43.44 Other costs 2 434 3 3

  26. Slide 26: Balance sheet

    BALANCE SHEET (PLN ‘000) 31.12.2011 31.12.2010 Fixed assets, including: 2 674 216 2 163 972 Cash and cash equivalents 58 288 50 909 Current assets, including: 402 012 664 073 Cash and cash equivalents 102 820 472 101 Total assets 3 076 228 2 828 045 Current liabilities 307 016 403 139 Non-current li

  27. Slide 27: Cash flow

    CASH FLOW (PLN‘000) Y2011 Y2010 Operating cash flow 313 802 368 235 Operating cash inflow 342 263 443 700 Interest paid (31) (12 268) Income tax paid (28 430) (63 197) Investing cash flow (726 489) (597 244) Acquisition of tangible fixed assets (718 096) (617 159) Interest paid regarding investing a

  28. Slide 28: Sales structure

    SALES STRUCTURE Y 2011 Share Y 2010 Share Item (PLN ‘000) [%] [%] Coal sales 1 224 690 94.11 1 191 016 96.80 Sales of ceramics 8 678 0.66 7 868 0.64 Other activities 43 807 3.37 22 442 1.82 Sales of goods and materials 24 174 1.86 9 121 0.74 Total sales revenue 1 301 349 100.00 1 230 447 100.00 28

  29. Slide 29: Structure of costs by type at Bogdanka

    STRUCTURE OF COSTS BY TYPE AT BOGDANKA Y2011 Y 2010 24.99% 22.47% 28.52% 29.32% 29.87% 13.01% 11.26% 32.66% 1.29% 1.51% 1.79% 0.68% 0.99% 1.64% Depreciation and amortisation Materials and energy consumption External services Employee benefits Entertainment and advertising expenses Taxes, fees and ch

  30. Slide 30: 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

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