Lubelski Wegiel Bogdanka Sa · GPW:LWB
Lubelski Wegiel Bogdanka Sa — FY2010 Earnings Presentation
24 slides from Lubelski Wegiel Bogdanka Sa's earnings presentation, Mar 21, 2011
Slide 1: Investors presentation Y2010
Investors presentation Y2010 Warsaw, 21 March 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 2010 Investments in 2010 - 2011 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 2010 Investments in 2010 - 2011 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 2010 was PLN 253.33 per tonne, down by 5.6% compared to the fi
Slide 7: … creates conditions for price growth
… creates conditions for price growth Import and export of coal Coal output in Wydobycie the industry węgla w branży Sprzedaż Coal saleswęgla in thewindustry branży mln ton mln ton mln ton 14,00 12,2 75,00 72,03 75,00 11,6* 70,16 69,47 12,00 10,2 67,60 70,00 70,00 8,7 10,00 63,48 65,00 65,00 8,00 58
Slide 8: Bogdanka in 2010
Introduction to Bogdanka Hard coal market Bogdanka in 2010 Investments in 2010 – 2011 Appendices 8
Slide 9: Consistent creation of shareholders value
Consistent creation of shareholders value 5 October 2010 - New World 9 March 2010 - disposal of Resource N.V. announced a tender 8 November 2010 – the 24 November 2010 – 46.96% of Company’s offer inviting the Company’s Company publishes the Company updates shares by the State shareholders to sell th
Slide 10: Exceeded financial forecasts
Exceeded financial forecasts Projection Change Achieved PLN (000’) 1-4Q 2009 1-4Q 2010 2010 (update [%] [%] 24.11.2010) Revenue 1 118 393 1 230 447 10.02% 1 237 000 99.47% Gross profit 357 460 409 684 14.61% - - EBITDA 367 988 414 548 12.65% 410 000 101.11% EBIT 226 710 276 472 21.95% 270 000 102.40
Slide 11: continued improvement of operational indicators…
continued improvement of operational indicators… Productivity (t/wall/day) Efficiency (t/employee/year) Coal output and coal extraction levels were improved by: 11250 * 1482 Implementation of modern technological 12000 1600 1395 10352 * solutions in coal extraction, e.g. purchase 1400 10000 of a coa
Slide 12: Continued improvement in operating indicators...
Continued improvement in operating indicators... Commercial coal yield The Company achieved the highest ever coal output level, i.e. 5,800,030 tonnes (up by almost 11% 90% 81% 81% compared to 2009) (gross output down by 1.4%) 75% 76% 76% 80% 71% 72% 74% 72%70% 70% 70% 72% 73% 69% 67% 67% 66% 66% 70%
Slide 13: Enhanced profitability ratios
Enhanced profitability ratios 40% 32.90% 33.69% 35% 30% 22.47% 20.27% 25% 17.06% 18.70% 20% 15% 10% 5% 0% 2009 2010 EBITDA margin EBIT margin Net profit margin Source: Th e Company 13
Slide 14: Investments in 2010 – 2011
Introduction to Bogdanka Hard coal market Bogdanka in 2010 Investments in 2010 – 2011 Appendices 14
Slide 15: Development of Stefanów field progressing on schedule
Development of Stefanów field progressing on schedule Outlays for development investments (including purchase of investment goods) in 2009-2011 CAPEX 600 534 Mln zł Planned CAPEX for development investments for 525 2010-2011 is slightly lower due to favourable 500 conditions under contracts awarded
Slide 16: Investments in 2010
Investments in 2010 In 2010, 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 and construction of a con
Slide 17: Investment expenditure in 2010-2011
Investment expenditure in 2010-2011 2010 2011 Item Investment task [PLN ‘000] [PLN ‘000] 1. Development investments, including: 367 665 437 369 Technical infrastructure at the surface of the Stefanów Field, shaft 2.1, a) 204 832 303 682 extension ZPMW, other items including - Construction of an exca
Slide 18: Appendices
Introduction to Bogdanka Hard coal market Bogdanka in 2010 Investments in 2010 – 2011 Appendices 18
Slide 19: Profit and loss account
Profit and loss account Change % (PLN ‘000) 2009 2010 [2010/2009] Revenue 1 118 393 1 230 447 10,.02% Cost of products, goods and materials sold, sales and administrative costs 868 866 926 865 6.68% Gross profit on sales 249 527 303 582 21.66% Other revenue 6 143 3 902 -36.48% Other costs 2 140 3 34
Slide 20: Balance sheet
Balance sheet PLN (000’) 2009 2010 Fixed assets, including: 1 617 528 2 163 972 Cash and cash equivalents 46 158 50 909 Current assets, including: 852 286 664 073 Cash and cash equivalents 681 659 472 101 Total assets 2 469 814 2 828 045 Current liabilities 253 138 403 139 Non-current liabilities 47
Slide 21: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (‘000 PLN) 2009 2010 Operating cash flow 365 586 368 235 Operating cash inflow 423.069 443.700 Interest paid - 9.353 - 12.268 Income tax paid - 48.130 -63.197 Investing cash flow -365 932 - 597 244 Acquisition of tangible fixed assets - 373 468 - 617 159 Acquisition
Slide 22: Sales structure
Sales structure (PLN ‘000) 2009 share 2010 share Coal sales 1 078 681 96.45% 1 191 016 96.80% Sales of ceramics 8 528 0.76% 7 868 0.64% Other activities 22 514 2.01% 22 442 1.82% Sales of goods and materials 8 670 0.78% 9 121 0.74% Total sales revenue 1 118 393 100.00% 1 230 447 100.00% 2009 2010 Ch
Slide 23: Structure of costs by type at Bogdanka
Structure of costs by type at Bogdanka Y 2010 1.79% 1.50% Y 2009 11.26% 1.00% 32.66% 1.76% 2.73% 12.32% 0.82% 29.32% 35.48% 28.96% 22.47% 17.93% Depreciation and amortisation Energy and materials Third party services Labour Representation and advertisment Taxes Other 23
Slide 24: 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 24
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