Jastrzebska Spolka Weglowa S.a. · GPW:JSW

Jastrzebska Spolka Weglowa — Jastrzębska Spółka Węglowa — H1 2024 Earnings Presentation

42 slides from Jastrzebska Spolka Weglowa's earnings presentation, September 2024

1. Slide 1: Results of the JSW Group for H1 2024

   Results of the JSW Group for H1 2024 September 2024

2. Slide 2: Disclaimer

   Disclaimer This presentation has been prepared by Jastrzębska Spółka Węglowa S.A. (“Company”). The contents of this Presentation have been prepared with due care based on the facts and information from the sources deemed reliable by the Company. This presentation is for information only and should n

3. Slide 3: Agenda

   Agenda Section Title Presented by I. Introduction Ryszard Janta II. JSW Group highlights Ryszard Janta III. JSW Group’s strategic objectives Jarosław Kluczniok IV. JSW Group’s operating results Adam Rozmus V. Market environment Jolanta Gruszka VI. JSW Group’s investments Adam Rozmus VII. JSW Group’s

4. Slide 4: JSW Group highlights

   JSW Group highlights Q2 2024 vs. Q1 2024 Coal Coke Active longwalls MCC production production 2,868.2 thous. t 727.9 thous. t 21.7 902.61 PLN/t vs. vs. vs. vs. -8.5% -12.3% +1.9% 21.3 in Q1 2024 +22.4% 737.69 PLN/t in Q1 2024 3,133.9 thous. t in Q1 2024 829.6 thous. t in Q1 2024 Sales revenues Avera

5. Slide 5: Net coal production / productivity / employee benefits/CAPEX – JSW S.A.

   Net coal production / productivity / employee benefits/CAPEX – JSW S.A. [thous. tons / tons per person / PLN m] 695 661 670 640 693 669 662 624 647 628 629 594 600 566 512 501 490 523 481 455 433 2019 2020 2021 2022 2023 TEP 2024 2024 F Productivity per employee - KWK Productivity per employee - KWK

6. Slide 6: Impairment - JSW S.A. PLN 6,132.1 million

   Impairment - JSW S.A. Identified indications causing changes in asset values  Increased costs of operating activities  Decreased coal production to 12.45 million tons (according to current operational assumptions),  Updated price assumptions for coal prices forecast for the coming years,  Signif

7. Slide 7: JSW Group’s strategic objectives

   JSW Group’s strategic objectives 7

8. Slide 8: JSW Group’s strategic goals for 2022-2030

   JSW Group’s strategic goals for 2022-2030 (actual data for H1 2024) Actuals Actuals Plan for Goals and measures Trend H1 2024 2023 2022-2030 EBITDA margin -94.3%* 29.7% 25% Stable financing structure >1 Equity to non-current assets ratio >1 0.82** 0.94** in 2022-2030 Efficient JSW Group: 816.50 [PLN

9. Slide 9: JSW Group’s strategic goals for 2022-2030

   JSW Group’s strategic goals for 2022-2030 (actual data for H1 2024) Actuals Actuals Plan for Goals and measures Trend H1 2024 2023 2022-2030 Diversification of revenue: Coal: Coal: Coal: 74% - Poland 75% - Poland 60% - Poland -0.5% 26% - Europe 25% - Europe 40% - Europe 2030 target • Product and geo

10. Slide 10: JSW Group’s strategic goals for 2022-2030

    JSW Group’s strategic goals for 2022-2030 (actual data for H1 2024) Actuals Actuals Plan for Goals and measures Trend H1 2024 2023 2022-2030 Coking coal: Coking coal: Coking coal: CSR 58 CSR 58 CSR ≥ 60 Product quality: Production and sale of coking coal and coke with stable and CRI 31 CRI 31 CRI ≤

11. Slide 11: ESG activities

    ESG activities E - environment S - social G - governance Natural environment Corporate social responsibility Corporate governance  CSRD - Analysis of the dual relevance of  CSRD - Analysis of the dual relevance of labor and  CSRD - Analysis of the dual relevance of governance environmental issues

12. Slide 12: JSW Group’s operating results

    JSW Group’s operating results 12

13. Slide 13: Coal and coke production

    Coal and coke production Coal production Active longwalls [000 tons] [number] -10.4% -0.9% -8.5% +1.9% 6,700.5 6,002.1 3,133.9 2,868.2 1,343.9 1,288.5 728.2 560.3 5,356.6 21.3 21.7 21.7 21.5 4,713.6 2,405.7 2,307.9 Q1 2024 Q2 2024 H1 2023 H1 2024 Q1 2024 Q2 2024 H1 2023 H1 2024 Steam coal Coking coa

14. Slide 14: Market environment

    Market environment

15. Slide 15: Market trends

    Market trends Ratio comparison Q2 2024 vs. Q1 2024 Steel production Steel prices on the European market [m tons] [EUR/t] 469.1 485.5 718.7 633.1 632.7 33.0 34.2 610.0 World EU Steel prices on the European market Steel prices on the European market - HRC – rods Coking coal spot prices* Coke prices**

16. Slide 16: Prices of JSW’s products in relation to market prices

    Prices of JSW’s products in relation to market prices Ceny węgla koksowego JSW JSW’s coke prices in relation to prices of w relacji do notowań Premium Low Vol [USD/t] blast-furnace coke on the European market [USD/t] 97% 97% 87% 80% 84% 92% 76% 88% 98% 96% 330 443 430 306 415 296 294 407 280 370 265

17. Slide 17: Sales of coal produced in the JSW Group

    Sales of coal produced in the JSW Group Sales of coal to external customers Revenues on sales of coal to external customers* [000 tons] [PLN m] -20.3% -14.1% 4,490.5 4,955.7 3,581.1 928.8 3,174.6 1,926.4 1,216.4 811.8 1,764.8 1,409.8 393.3 1,654.7 474.5 337.3 230.2 4,026.9 3,274.1 2,769.3 163.1 2,78

18. Slide 18: Sales of coke

    Sales of coke Sales of coke to external customers Average coke sales price [000 tons] [PLN/t] 1,724.4 1,747.9 1,645.54 1,370.87 1,376.57 1,373.35 986.7 761.2 Q1 2024 Q2 2024 H1 2023 H1 2024 Q1 2024 Q2 2024 H1 2023 H1 2024 Revenues on sales of coke and hydrocarbons to external customers* [PLN m] 3,24

19. Slide 19: Inventory of coal and coke

    Inventory of coal and coke Inventory of coal produced in the JSW Group Inventory of coke produced in the JSW Group as at [000 tons] as at [000 tons] +29,5% -22,3% 285.7 1,092.7 771.5 761.6 843.9 194.0 624.4 148.4 131.7 102.3 30-Jun-2023 30-Sep-2023 31-Dec-2023 31-Mar-2024 30-Jun-2024 30-Jun-2023 30-

20. Slide 20: JSW Group’s investments

    JSW Group’s investments

21. Slide 21: JSW Group’s investments

    JSW Group’s investments Capital expenditures in the JSW Group* Capital expenditures in the JSW Group** Accrual basis [PLN m] Cash basis [PLN m] 2,448.7 42.7 1,975.8 86.5 287.3 1,381.1 24.8 237.3 1,067.6 17.9 98.9 2,118.7 2,392.9 188.4 1,652.0 2,028.7 1,257.4 1,322.9 861.3 1,070.0 Q1 2024 Q2 2024 H1

22. Slide 22: JSW Group’s financial highlights

    JSW Group’s financial highlights

23. Slide 23: Financial highlights of the JSW Group

    Financial highlights of the JSW Group Sales revenues EBITDA net of non-recurring events [PLN m] [PLN m] -28.2% -19.1% 3,325.3 8,597.8 532.1 6,176.3 (6,355.2) 3,627.6 (5,823.1) 3,414.8 572.0 2,761.5 257.5 829.5 Q1 2024 Q2 2024 H1 2023 H1 2024 Q1 2024 Q2 2024 H1 2023 H1 2024 xx.x EBITDA Net working ca

24. Slide 24: Change in sales revenues in the JSW Group

    Change in sales revenues in the JSW Group Q2 2024 vs. Q1 2024 [PLN m] (142.4) (149.8) (64.8) (2.3) (309.1) 10.7 4.4 3,414.8 2,761.5 Sales revenues Impact of coking coal Impact of coking coal Impact of steam coal Impact of change in Impact of coke sales Impact of coke price Impact of revenues Sales r

25. Slide 25: JSW Group’s expenses by nature

    JSW Group’s expenses by nature [PLN m] +4.8% Most significant changes Q2 2024 vs. Q1 8,043.7 2024 in the following positions: 7,678.0 204.7 211.9 Employee benefits (PLN +203.2 m) Depreciation and amortization +6.8% (PLN +44.4 m) 3,701.0 3,661.9 Materials (PLN +34.8 m) 4,153.6 3,890.1 105.0 106.9 Con

26. Slide 26: Cost change drivers, by type, in the JSW Group Q2 2024 vs. Q1 2024

    Cost change drivers, by type, in the JSW Group Q2 2024 vs. Q1 2024 net of cost of materials and goods sold [PLN m] 203.2 (1.9) 34.8 13.2 44.4 (30.2) 4,153.6 3,890.1 Costs Depreciation and Consumption Consumption External Employee Other costs Costs by nature by nature amortization of materials of ene

27. Slide 27: Unit Mining Cash Cost

    Unit Mining Cash Cost Q2 2024 vs. Q1 2024 [PLN/t] 68.31 70.76 (0.07) 0.18 24.83 6.03 (5.12) 902.61 737.69 Q1 2024 Consumption Consumption External Employee Taxes and Other costs Impact of Q2 2024 of materials of energy services benefits charges by nature volume 27

28. Slide 28: Unit Cash Conversion Cost

    Unit Cash Conversion Cost Q2 2024 vs. Q1 2024 [PLN/t] 3.74 (4.93) (27.53) 2.39 43.04 (8.43) (2.85) (1.93) (0.15) 308.00 311.35 Q1 2024 Consumption of Consumption of External services Employee Taxes and Other costs Administrative Selling and distribution Impact of Q2 2024 materials energy net of tran

29. Slide 29: Mining Cash Cost Cash Conversion Cost

    Mining Cash Cost Cash Conversion Cost Mining Cash Cost Cash Conversion Cost [PLN m] [PLN m] +3.0% +18.1% +22.4% +1.1% 300.53 309.56 691.60 816.50 737.69 902.61 308.00 311.35 4,900.7 488.7 482.1 4,634.1 2,311.8 2,588.9 255.5 226.6 Q1 2024 Q2 2024 H1 2023 H1 2024 Q1 2024 Q2 2024 H1 2023 H1 2024 xx.xx

30. Slide 30: EBITDA drivers in the JSW Group Q2 2024 vs. Q1 2024

    EBITDA drivers in the JSW Group Q2 2024 vs. Q1 2024 [PLN m] 257.5 532.1 10.7 (359.3) (304.7) (263.5) (6,355.2) 6,612.7 (6,267.4) 272.0 44.4 (19.5) EBITDA Impact of coal Impact of coke Other Impact of costs Impact of impairment Impact of Other Impact of EBITDA Non-recurring events EBITDA Q2 2024 Q1 2

31. Slide 31: EBITDA drivers in the JSW Group Q2 2024 vs. Q1 2024

    EBITDA drivers in the JSW Group Q2 2024 vs. Q1 2024 [PLN m] 257.5 532.1 (5,717.3) (6,355.2) 6,612.7 (2,380.1) 1,211.0 (0.9) EBITDA Change in Change in Change in Change in EBITDA of EBITDA Non-recurring events EBITDA Q2 2024 Q1 2024 coal segment EBITDA coke segment EBITDA other segment EBITDA consoli

32. Slide 32: JSW Group’s financial highlights

    JSW Group’s financial highlights Net working capital (with FIZ) as at 30 June 2024 [PLN m] 14.6 518.0 348.7 269.4 3,192.8 8,985.8 3,370.5 275.5 17.8 84.4 1,248.8 5,109.7 1,637.9 1,130.9 Inventories Trade and other Income tax Cash and cash Investments in Other current Loans and Employee benefit Lease

33. Slide 33: JSW Group's cash flows

    JSW Group's cash flows [PLN m] (203.8) 360.7 (180.9) (12.1) (583.5) 528.2 (156.5) (80.3) (992.1) 832.9 1,736.2 1,248.8 Cash at the end of Profit/(loss) Depreciation Change in Change in Change in Other operating Investing Loans and Repayment of Other financing Cash at the end of 31 March 2024 before

34. Slide 34: Q&A

    Q&A

35. Slide 35: Appendices

    (4, XX. JSWSA Appendices

36. Slide 36: Impact exerted by non-recurring events on JSW Group’s EBITDA

    Impact exerted by non-recurring events on JSW Group’s EBITDA [PLN m] Q1 2024 Q2 2024 H1 2023 H1 2024 Sales revenues 3,414.8 2,761.5 8,597.8 6,176.3 EBIT 48.3 (6,883.4) 2,535.9 (6,835.1) EBITDA 532.1 (6,355.2) 3,325.3 (5,823.1) Impact of non-recurring events on results 39.9 6,612.7 302.3 6,652.6  es

37. Slide 37: Production, external sales, inventories of coal and coke produced in the JSW Group

    Production, external sales, inventories of coal and coke produced in the JSW Group [000 tons] Change Change Item Q1 2024 Q2 2024 H1 2023 H1 2024 Q2 2024 / H1 2024 / Q1 2024 H1 2023  Coking coal production 2,405.7 2,307.9 5,356.6 4,713.6 -4.1% -12.0%  Steam coal production 728.2 560.3 1,343.9 1,288

38. Slide 38: Mining Cash Cost

    Mining Cash Cost [PLN m] Change Change Item Q1 2024 Q2 2024 H1 2023 H1 2024 Q2 2024 / H1 2024 / Q1 2024 H1 2023  Consumption of materials and energy 548.0 550.6 1,086.7 1,098.6 +0.5% +1.1%  External services 531.3 602.5 968.4 1,133.8 +13.4% +17.1%  Employee benefits 1,167.3 1,370.2 2,459.5 2,537.

39. Slide 39: Cash Conversion Cost

    Cash Conversion Cost [PLN m] Change Change Item Q1 2024 Q2 2024 H1 2023 H1 2024 Q2 2024/ H1 2024/ Q1 2024 H1 2023  Consumption of materials net of coal feedstock 26.1 22.5 61.2 48.6 -13.8% -20.6%  Energy consumption 27.9 21.9 45.2 49.8 -21.5% 10.2%  External services net of transport costs of coa

40. Slide 40: Economic position

    Economic position [PLN m] Change Change Item 30.06.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.06.2024/ 30.06.2024/ 31.12.2023 31.03.2024 ASSETS 28,954.3 30,434.4 27,793.8 25,704.9 23,218.7 -16.5% -9.7% Non-current assets 21,176.1 22,758.4 22,095.9 21,375.6 18,595.6 -15.8% -13.0% - Property,

41. Slide 41: Asset financing sources

    Asset financing sources [PLN m] Change Change Item 30.06.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.06.2024/ 30.06.2024/ 31.12.2023 31.03.2024 EQUITY AND LIABILITIES 28,954.3 30,434.4 27,793.8 25,704.9 23,218.7 -16.5% -9.7% Equity 18,063.8 16,823.9 16,971.7 16,962.3 10,936.3 -35.6% -35.5% N

42. Slide 42: Jastrzębska Spółka Węglowa SA

    Jastrzębska Spółka Węglowa SA Aleja Jana Pawła II 4 44-330 Jastrzębie-Zdrój tel.: +48 32 756-41-13 fax: +48 32 476-26-71 www.jsw.pl biuro@jsw.pl relacje@jsw.pl Węgiel metalurgiczny to nieskończony potencjał rozwoju.

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