Pkp Cargo Spolka Akcyjna · GPW:PKP
Pkp Cargo Spolka Akcyjna — PKP Cargo — H1 2016 Earnings Presentation
25 slides from Pkp Cargo Spolka Akcyjna's earnings presentation, Sep 27, 2016
Slide 1: PKP CARGO Group H1 2016 results
PKP CARGO GROUP H1 2016 results © Copyright PKP CARGO S.A.
Slide 2: Agenda
AGENDA ‖ Recap of the interim results ‖ Commercial results ‖ Financial results ‖ Challenges © Copyright PKP CARGO S.A.
Slide 3: H1 2016 results
H1 2016 results ✓ ✓ ✓ MARKET SHARE EBITDA* CAPEX 51.2% PLN 193 PLN 267 measured by freight turnover (-4.8 p.p. yoy) 43.8% million profitability of 9.1% million 6% yoy measured by freight volume (-4.1 p.p. -51% yoy yoy) * reported EBITDA was PLN 130 million REVENUES NET RESULT* OPEX PLN 2,123 PLN -11
Slide 4: Agenda
AGENDA ‖ Recap of the interim results ‖ Commercial results ‖ Financial results ‖ Challenges © Copyright PKP CARGO S.A.
Slide 5: Position of the PKP CARGO Group
Position of the PKP CARGO Group Market for rail freight transport in Poland PKP CARGO Group’s freight transport measured by freight turnover data for H1 2016, bn tkm measured by freight turnover data for H1 2016, bn tkm including including AWT*: AWT: 0.1 0.8 -2% 0.3% 23,9 13,8 13,5 24,0 H1 2015 H1 2
Slide 6: Hard coal
Hard coal Key events in H1 2016 Hard coal Freight turnover, billion tkm including including AWT: ► Average monthly ARA coal price in H1 2016 up 12% AWT*: 0.25 ► Electricity production in H1 2016 up 0.22% yoy, including hard 0.05 -3% coal-fired by 3.24% yoy (the price rose 17.5% from February to 5,59
Slide 7: Aggregates and construction materials
Aggregates and construction materials Key events in H1 2016 Aggregates and construction materials Freight turnover, billion tkm including including AWT: ► Construction and assembly production in H1 2016 down 11.9% yoy AWT*: 0.03 -24% and in companies specializing in building civil and marine 0.001 e
Slide 8: Railway infrastructural investments – 2016
Railway infrastructural investments – 2016 Key tender procedures announced: ► Work on rail line no. 7 Warszawa Wschodnia Osobowa–Dorohusk (ca. PLN 3.1 bn) ► Construction of the infrastructure for the ERTMS/GSM-R system within the framework of NPW ERTMS (ca. PLN 3.1 bn) ► Execution of construction wo
Slide 9: Railway infrastructural investments – 2017
Railway infrastructural investments – 2017 Tenders planned to be announced in 2017: ► work on the E75 line, Białystok Suwałki Trakiszki RailBaltica (ca. PLN 2.5 bn) ► Installation of ERTMS/ETCS system, level 2 on line E20, Kunowice–Terespol (excluding the Warsaw junction) and the ERTMS/ETCS system,
Slide 10: Road infrastructural investments - 2016
Road infrastructural investments - 2016 Key investments executed in 2016: ► S-51 ring road around Olsztyn along the DK16/S51 route (25 km, completion date of June 2018, investment of PLN 1.3 bn) ► S-8 Marki – Radzymin (15 km, completion date of March 2017, investment of PLN 738 million) ► S-7 ring r
Slide 11: Ore and metals
Ore and metals Key events in H1 2016 Ore and metals Freight turnover, billion tkm including ► Overhaul of the metallurgical furnace of PKP CARGO’s customer including AWT: from May to July 2016 AWT*: 0.03 0.007 -7% ► Steel production in Poland down 11.3% vs 2015 1,85 1,72 ► Import duties for steel pr
Slide 12: Intermodal
Intermodal Key events in H1 2016 Intermodal Freight turnover, billion tkm including including AWT: ► Rapid development of the New Silk Road. Land transport from/to AWT*: 0.10 China up 11.3% yoy. +25% 0.004 ► Container freight volume reloaded in Polish ports up 8.3% yoy. 1,15 ► Providing freight tran
Slide 13: AWT key information
AWT key information Share in the Market position Freight volume Czech market No. 2 in the 9.57% Czech 6.8 million tons Republic measured by gross freight H1 2016 turnover – H1 2016 wagons locomotives PLN 18 million intermodal terminal 4,632 167 NET Paskov PROFIT 72% of own wagons 3 multi-system on
Slide 14: AWT Group
AWT Group Segments Rail transport Current situation ► 3 May 2016 – announcement of OKD’s bankruptcy Siding operations ► NWR (New World Resources) claims rejected (ca. EUR 17.3 million) ► Receiver accepted 100% of AWT’s claims (EUR 17.15 million) ► AWT one of the 4 members of the Creditor Committee (
Slide 15: Agenda
AGENDA ‖ Recap of the interim results ‖ Commercial results ‖ Financial results ‖ Challenges © Copyright PKP CARGO S.A.
Slide 16: Financial highlights
Financial highlights PKP AWT’s Group CARGO Group share AWT PKP Group Group PKP yoy Change in the PLN million CARGO without CARGO change % yoy PKP AWT H1 2016** CARGO H1 2015* H1 2016 H1 2016 Group Operating revenues 2,070 1,748 375 2,123 53 +3% 18% Operating expenses 1,889 1,837 480 2,317 428 +23% 2
Slide 17: Operating expenses
Operating expenses EBITDA per employee Remuneration Energy and fuel Access to infrastructure (PLN 000s / employee)1 (PLN/thousand tkm)2 (PLN/thousand tkm)3 (PLN/thousand tkm)4 55,9 15,6 50,4 -65% +11% +1% +6% 0.3% 23,6 20,1 20,4 22,3 5,5 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 2016 H1 2015 H1 201
Slide 18: Employee benefits
Employee benefits Group PKP CARGO Group Group AWT Group Change Change AWT’s share PLN PKP CARGO without AWT PKP CARGO H1 2016 yoy % yoy in the Group million H1 2015* H1 2016 H1 2016 Payroll 508 496 72 568 60 +12% 12% Social security costs 104 99 25 124 19 +19% 20% Charges to the Company Employee Ben
Slide 19: Selected external services
Selected external services Group PKP CARGO Group Group AWT Group Change Change AWT’s share PLN PKP CARGO without AWT PKP CARGO H1 2016** yoy % yoy in the Group million H1 2015* H1 2016 H1 2016 Access services to lines of infrastructure managers 308 294 24 318 10 +3% 7% Fees for the use of real prope
Slide 20: Capital expenditures (CAPEX)
Capital expenditures (CAPEX) Group PKP CARGO Group Group PLN AWT Group Change Change AWT’s share PKP CARGO without AWT PKP CARGO H1 2016 yoy % yoy in the Group million H1 2015* H1 2016 H1 2016 Investment construction activity 4 5 1 6 2 +50% 17% Purchase of traction vehicles 0 102 0 102 102 - 0% Mode
Slide 21: Financing structure
Financing structure Available funding sources Debt structure as at 30 June 2016 PLN million Cash1 313 BGK Debt 31.12.2015* 30.06.2016 162 155 EIB Long-term 654 826 PLN 1,743 585 EBRD Short-term 319 340 million 398 Bank Pekao S.A. Total debt 973 1,167 130 Other lines of credit Financial ratios Cash f
Slide 22: Agenda
AGENDA ‖ Recap of the interim results ‖ Commercial results ‖ Financial results ‖ Challenges 22© Copyright PKP CARGO S.A.
Slide 23: Challenges for PKP CARGO
Challenges for PKP CARGO Commercial ► Ability to transport materials at the climax of rail Taking advantage of market conditions and road construction projects at the same time and place ► Higher profitability of transport services ► Extension of contracts for coal transport ► Development of interna
Slide 24: China Railway Express
”China Railway Express” (Warsaw, 20 June 2016) Expected growth in intermodal transport in Poland 12.0 billion tkm 10.7 10.5 9.0 7.5 6.8 +7% p.a. 6.0 4.5 3.0 2008 2010 2012 2014 2016 2018 2020 Source: Eurostat; GUS; UIC; own analysis © Copyright PKP CARGO S.A. 24
Slide 25: Investor Relations contact
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 25© Copyright PKP CARG