Lubelski Wegiel Bogdanka Sa · GPW:LWB
Lubelski Wegiel Bogdanka Sa — Q1 2011 Earnings Presentation
22 slides from Lubelski Wegiel Bogdanka Sa's earnings presentation, May 12, 2011
Slide 1: Investors presentation 1Q 2011
Investors presentation 1Q 2011 Warsaw, 12 May 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 the facts and information originating from the sources which the Company considers as reliable, and
Slide 3: Introduction
Introduction Hard coal market Bogdanka in 1Q2011 Investments in 2011 - Plan Appendices 3
Slide 4: 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) Good geographic location (Lublin Coal Bas
Slide 5: Hard coal market
Introduction Hard coal market Bogdanka in 1Q2011 Investments in 2011 - Plan Appendices 5
Slide 6: Domestic market demand…
Domestic market demand… Currently the Company witnesses an increase in the demand on the domestic market for coal to be supplied in 2011. Decrease in coal reserves on mounds. The average price of power coal (all types) in the industry in January and February 2011 was PLN 268.66 per tonne, higher by
Slide 7: … creates environment for price increases
… creates environment for price increases Import and export of Coal output in the industry Coal sales in the industry coal (million of tonnes) (million of tonnes) (million of tonnes) 3,00 2.8 20,00 18.32 18.80 2.44* 18,00 17,00 2.4 15.88 16.55 2,50 15.33 16,00 16,50 14,00 16,00 2,00 1.59 12,00 15,50
Slide 8: Bogdanka in 1Q2011
Introduction to Bogdanka Hard coal market Bogdanka in 1Q2011 Investments in 2011 - Plan Appendices 8
Slide 9: Results for 1Q 2011 in line with the objectives
Results for 1Q 2011 in line with the objectives Change PLN (000’) 1Q 2011 1Q 2010 [%] Revenue 309 961 294 096 5.39 Gross profit 72 818 95 672 -23.89 EBITDA 77 906 95 261 -18.22 EBIT 43 698 62 164 -29.71 Net profit 35 958 52 770 -31.86 Earnings per share (PLN)* 1.05 zł 1.55 zł -32.26 The growth rate
Slide 10: Commercial coal mining in 1Q 2011 due to the intensity of preparatory works...
Commercial coal mining in 1Q 2011 due to the intensity of preparatory works... In 1Q 2011, commercial coal production fell by over 5% y-o-y, with an increase in gross output Commercial coal yield by more than 9%, which is the result of a greater intensity of preparatory works (20% more drifts 74% 72
Slide 11: ... which is reflected in profitability ratios
... which is reflected in profitability ratios 35% 32.39% 30% 25.13% 25% 21.14% 20% 17.94% 15% 14.10% 11.60% 10% 5% 0% 1Q2010 1Q2011 EBITDA margin rentowność EBITDA EBIT marginEBIT rentowność rentowność Net netto profit margin Source: Company 11
Slide 12: Results for 1Q 2011 in line with the objectives
Results for 1Q 2011 in line with the objectives Revenue growth of 5.39% is the consequence of an increase in commercial coal sales volume by 5.2%, with the average price of coal sold being slightly lower (in relation to 1Q 2010) (due to a change in the structure of sales). The increase in operating
Slide 13: 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 1Q2011: 244.95% of the industry average (249.86% in 1Q2010) - underground efficiency in 1Q2011: 311.68% of the indu
Slide 14: Investments in 2011 - Plan
Introduction to Bogdanka Hard coal market Bogdanka in 1Q2011 Investments in 2011 - Plan Appendices 14
Slide 15: Investments in 1Q2011
Investments in 1Q2011 In 1Q2011, the Company was carrying out the following investment projects: Continuing the construction of an excavation and ventilation shaft 2.1 in the Stefanów Field, together with accompanying facilities Extension of the Mechanical Coal Processing Plant The construction of c
Slide 16: Thank You
Thank You Lubelski Węgiel BOGDANKA S.A. Bogdanka, 21-013 Puchaczów tel. (81) 462-51-00, 462-51-01 fax (81) 462-51-91, 462-56-37 bogdanka@lw.com.pl 16
Slide 17: Appendices
Introduction to Bogdanka Hard coal market Bogdanka in 1Q2011 Investments in 2011 - Plan – 2011 Appendices 17
Slide 18: Profit and loss account
Profit and loss account Change % (PLN ‘000) 1Q2011 1Q2010 [2011/2010] Revenue 309 961 294 096 5.39 Cost of products, goods and materials sold, sales and 265 126 223 777 18.48 administrative costs Gross profit on sales 44 835 70 319 -36.24 Other revenue 1 628 2 013 -19.13 Other costs 285 1 566 -81.80
Slide 19: Balance sheet
Balance sheet PLN (000’) 1Q2011 1Q2010 Fixed assets, including: 2 289 501 2 163 972 Cash and cash equivalents 51 608 50 909 Current assets, including: 572 008 664 073 Cash and cash equivalents 357 601 472 101 Total assets 2 861 509 2 828 045 Current liabilities 399 970 403 139 Non-current liabilitie
Slide 20: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (‘000 PLN) 1Q2011 1Q2010 Operating cash flow 77 562 203 816 Operating cash inflow 88 956 218 452 Interest paid -2 799 -2 343 Income tax paid -8 595 -12 293 Investing cash flow -189 062 -241 872 Acquisition of tangible fixed assets -192 095 -248 185 Acquisition of int
Slide 21: Sales structure
Sales structure (PLN ‘000) 1Q2011 share 1Q2010 share Coal sales 289 138 93.28% 284 890 96.87% Sales of ceramics 2 039 0.66% 1 463 0.50% Other activities 12 704 4.10% 5 844 1.99% Sales of goods and materials 6 080 1.96% 1 899 0.64% Total sales revenue 309 961 100.00% 294 096 100.00% Majority of sales
Slide 22: Structure of costs by type at Bogdanka
Structure of costs by type at Bogdanka 1Q2011 1Q2010 1,20% 1,80% 1,70% 1,00% 3,70% 10,10% 3,40% 11,20% 27,80% 29,10% 31,80% 31,20% 23,90% 22,10% Depreciation and amortisation Materials and energy consumption External services Employee benefits Entertainment and advertising expenses Taxes, fees and c
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