Lubelski Wegiel Bogdanka Sa · GPW:LWB
Lubelski Wegiel Bogdanka Sa — Investor Presentation (2017)
24 slides from Lubelski Wegiel Bogdanka Sa's investor presentation, 2017
Slide 1: Development Strategy of LW Bogdanka S.A. until 2025
Development Strategy of LW Bogdanka S.A. Mining Area of the Enea Group until 2025 (under the 2030 framework)
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by benefits and risks connected with the sale or purchase Lubelski Węgiel Bogdanka S.A. (“Company”). Any of shares in the Company, on the basis of any and all information included in this Presentation has been information provided by th
Slide 3: The Management Board of LW Bogdanka S.A.
The Management Board of LW Bogdanka S.A. Krzysztof Szlaga President of the Management Board Stanisław Misterek Adam Partyka Sławomir Karlikowski Marcin Kapkowski Vice-President of the Vice-President of the Vice-President of the Vice-President of the Management Board, Management Board, Management Boa
Slide 4: LW Bogdanka Group - key facts
KEY FACTS LW Bogdanka Group - key facts Lubelski Węgiel Bogdanka Group Łęczyńska Energetyka EkoTrans Bogdanka RG Bogdanka MR Bogdanka Sp. z o.o. Sp. z o.o. Sp. z o.o. Sp. z o.o. 88.7%* 100%* 100%* 100%* LW Bogdanka S.A.: Shareholders of LW Bogdanka S.A. • A member of the Enea Group since October 201
Slide 5: Strategy of the Enea Group and the Mining Area is consistent with plans adopted
KEY FACTS Strategy of the Enea Group and the Mining Area is consistent with plans adopted both at national and sector level Strategy of the Enea Group Strategy of LW Bogdanka S.A. Draft Polish Hard Coal Mining Programme Responsible Energy Security Development Plan Policy for Poland PRIMARY GOALS: •
Slide 6: LW Bogdanka is a vital link of the Development Strategy of the Enea Group until 2030
KEY FACTS As the Mining Area is developed, LW Bogdanka is a vital link of the Development Strategy of the Enea Group until 2030 Mining Generation Distribution Trade COMMENTS • LWB has a vital role to play to enable the Enea Group to achieve the target efficiency ratios and EBITDA by 2025 • Ensure ap
Slide 7: As a member of the Enea Group, LW Bogdanka contributes to energy security of Poland
KEY FACTS As a member of the Enea Group, LW Bogdanka contributes to energy security of Poland Clean coal technologies (including IGCC) Electromobility Development of distributed polygeneration Internet of Things Hybrid RESs services Integrated product and service Smart Mine packages Prosumer Best pr
Slide 8: Vision and mission of LW Bogdanka S.A.
KEY FACTS Vision and mission of LW Bogdanka S.A. VISION Bogdanka is a strong link in the value chain of the Enea Group and the efficiency leader in the mining sector with the highest work safety standards. MISSION By contributing to energy security of Poland, Bogdanka proves that it is a reliable su
Slide 9: Projected growth of demand for electricity will be correlated with Poland's growth rate
MARKET Projected growth of demand for electricity will be correlated with Poland’s growth rate Projected electricity consumption in Poland [TWh, 2015-2030] COMMENTS • Projected demand for electricity will grow +24 TWh (+15%) slower that GDP, which is expected to increase by about 3% y/y 201 • Over 2
Slide 10: Share of hard coal in electricity generation structure will not change significantly by 2025
MARKET Share of hard coal in electricity generation structure will not change significantly by 2025 Projected electricity production structure by generating sources COMMENTS [%, 2015-2025] • Taking into account investments in new generation capacity with 7% 8% 8% simultaneous upgrades of old coal- f
Slide 11: Demand for fine coal will be stable over the next decade
MARKET Demand for fine coal will be stable over the next decade Projected fine coal consumption in Poland [million tonnes, 2015-2025] COMMENTS • Higher demand for energy means an -0.6 million tonnes (-1%) increase in production on the basis of hard coal-fired sources 48,9 49,3 • High-performance uni
Slide 12: LW Bogdanka is favourably situated versus large buyers of fine coals operating in east Poland
MARKET LW Bogdanka is favourably situated versus large buyers of fine coals operating in east Poland COMMENTS 4 6 • Within a 150-kilometer radius from LWB, the following plants use thermal fine coal: 1 Kozienice Power Plant 9 2 Połaniec Power Plant 3 ZA Puławy 1 • Within a 300-kilometer radius from
Slide 13: Coal companies maximize the production of high-margin products – lower production of fine coal
MARKET Coal companies maximize the production of high-margin products – lower production of fine coal Projected hard coal production in Poland [million tonnes, 2015-2025] COMMENTS • It is estimated that over 2015-2025 -3.3 million tonnes (-4.6%) hard coal production will decline by about 3.3 million
Slide 14: Two development scenarios: baseline scenario and flexible development scenario
PRODUCTION AND CAPEX In the course of our activities to formulate the strategy, we prepared two development scenarios: baseline scenario and flexible development scenario Planned coal production over the years [million tonnes, 2015-2030] COMMENTS 9,3 • Planned production in 2017 will be 9,0 9,1 comp
Slide 15: CAPEX forecast for 2016-2025 amounts to PLN 3.7 billion for baseline scenario
PRODUCTION AND CAPEX CAPEX forecast for 2016-2025 amounts to PLN 3.7 billion for the baseline scenario and about PLN 4 billion for the flexible development scenario Total capital expenditures forecast over 2016-2025 [PLN million, nominal values] COMMENTS • CAPEX in the baseline scenario is in 224 70
Slide 16: Focus on areas of key importance to the Company's strategy
Focus on areas of key importance to the Company’s strategy Mining and Power Generation Area Kozienice-Bogdanka-Połaniec Ostrów deposit development of exploitable resources Operationalization of strategic initiatives feasibility study for high-performance and low-emission supercritical power unit / I
Slide 17: Takeover of Engie's assets by Enea will spur synergies in the Mining and Power Generation area
MARKET Takeover of Engie’s assets by Enea will spur synergies in the Mining and Power Generation area COMMENTS Kozienice Power Plant • Investment project to acquire Połaniec Power Plant which is currently being pursued by the Enea Group means that two main clients of LWB will be its affiliates in th
Slide 18: The Company will be increasing its exploitable resource base
PRODUCTION AND CAPEX The Company will be increasing its exploitable resource base to extent its expected life in the long run – even for over 50 years Estimated exploitable resources in prospective areas [million tonnes] COMMENTS • In the time horizon of the 33 Strategy until 2030, the key 446 areas
Slide 19: Development of infrastructure in the Ludwin Mining Area (Ostrów deposit)
PRODUCTION AND CAPEX Until 2030, a key direction for the Company will be the development of infrastructure in the Ludwin Mining Area (Ostrów deposit) COMMENTS • The Company estimates that exploitable resources in the Ludwin Mining Area (Ostrów deposit) are about 186 million tonnes • This project is
Slide 20: The Company will be improving its market situation by implementing various strategic initiatives
INNOVATIONS IN LW BOGDANKA - STRATEGIC INITIATIVES The Company will be improving its market situation by implementing various strategic initiatives Effective waste Further work safety rock management improvement • Waste rock placement • Improve safety • Use of waste rock for awareness among staff ro
Slide 21: The mine will be implementing its CSR strategy
SOCIAL RESPONSIBILITY The mine will be implementing its Corporate Social Responsibility (CSR) strategy SAFE ECO-EFFICIENT MINE MINE Ensure the highest safety Ensure eco-efficiency level and protect local at workplace biodiversity Effective management of CSR relationships with all groups of Stakehold
Slide 22: Key indicators for LW Bogdanka until 2025 – flexible development scenario
FINANCIAL RESULTS - 2015 vs 2025 NOMINAL VALUES Key indicators for LW Bogdanka until 2025 – flexible development scenario RESOURCES COSTS2 Exploitable +100% resources UMCC decline [million tonnes] 227 FINANCIALS1 [% vs -10% 2015] Return on Equity 10.9% (ROE) 8.7% Return on Assets 8.5% (ROA) 5.3% MAR
Slide 23: LW Bogdanka S.A. wants to be a dividend-paying company in medium and long run
FINANCIAL RESULTS - DIVIDEND POLICY LW Bogdanka S.A. wants to be a dividend-paying company in medium and long run In the future, the Management Board of LW Bogdanka S.A. intends to ask the General Shareholders Meeting for approval of dividends up to 50% of the net profits shown in the Company’s sepa
Slide 24: The Enea Group and LW Bogdanka S.A. are jointly building an Innovative Material and Energy Group
The Enea Group and LW Bogdanka S.A. are jointly building an Innovative Material and Energy Group to reinforce energy security of Poland
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