Slide 1: PKP CARGO Group financial results 2023
PKP CARGO Group financial results 2023 Warsaw, April 24th 2024
Slide 2: Agenda
Agenda Results overview 2 Operational results Financial results Market perspectives in 2024 Goals for the future
Slide 3: Cargo freight market in 2023 under pressure
Cargo freight market in 2023 under pressure Cargo freight market under pressure Economic downturn, inflation, high costs of capital, rise of costs of fuel and traction electricity. 62,5 61,6 War in Ukraine, change in routes, limitations in cargo Freight turnover deliveries, drop in sea freight r
Slide 4: Largest declines in the freight market in Poland
Largest declines in the freight market The decline affected mostly the biggest players in in Poland the market Freight turnover Key players noted decreases 24,9 PKP CARGO GROUP 20,9 On freight volume- by 10,4% y/y KEY PLAYERS1 -16,3% -4,1% 14,6 14,0 On freight turnover- by 4,1% y/y bn tkm 2022
Slide 5: Agenda
Agenda Results overview 5 Operational results Financial results Market perspectives in 2024 Goals for the future
Slide 6: PKP CARGO Group in 2023 – freight volume
PKP CARGO Group in 2023 – freight volume Solid fuels* Aggregates and construction materials Intermodal Freight volume, m tons Freight volume, m tons Freight volume, m tons 51,5 41,5 21,0 20,0 -5,2% -29,4% -19,4% 8,4 5,9 6 2022 2023 2022 2023 2022 2023 Metals and ores Chemical products Liquid fuels F
Slide 7: PKP CARGO Group in 2023 - freight turnover
PKP CARGO Group in 2023 - freight turnover Solid fuels* Aggregates and construction materials Intermodal Freight turnover, bn tkm Freight turnover, bn tkm Freight turnover, bn tkm 11,7 9,4 -19,8% -0,5% -33,5% 5,5 5,5 3,6 2,4 2022 2023 2022 2023 2022 2023 7 Metals and ores Chemical products Liquid fu
Slide 8: Coal transport in PKP CARGO Group
Coal transport in PKP CARGO Group Starting in February 2023 the energy sector demand decreased: Transport: coal Low intake of coal transports ordered by Freight volume (ths. tons) local authorities. 14 000 12 967 Stock pile-up resulted in lower coal import 12 751 11 947 through sea ports. 12 0
Slide 9: Agenda
Agenda Results overview 9 Operational results Financial results Market perspectives in 2024 Goals for the future
Slide 10: PKP CARGO Group results in 2023 impacted negatively by market downturn
PKP CARGO Group results in 2023 impacted negatively by market downturn Revenues from contracts with Freight volume Freight turnover CAPEX customers PLN 5 491,9 m 82,7 m tons 22,3 bn tkm PLN 1 721,4 m +1,9% y/y -17,8% y/y -17,5% y/y +121,8% y/y EBITDA EBIT Net profit FINANCIAL SOURCES AS OF 2023 10 P
Slide 11: Revenues and EBITDA grow in a competitive market
Revenues and EBITDA grow in Growth in revenues and EBITDA a competitive market Growth in revenues and EBITDA despite geo- political factors, economic or market downturn. Revenues from contracts with customers EBITDA Active pricing strategy:Increase in transport rates on chosen projects. 5 390 +1
Slide 12: Active pricing strategy and cost discipline
Active pricing strategy and cost discipline Operational ratios in 2023 2022 2023 Change y/y Change % y/y % Share 12 Average time of work od Freight turnover per employee Employee costs 1 738,4 1 958,4 220,0 12,7% 38% locomotive per day (h) (ths tkm/per capita) 1 337,3 Depreciation, amortization and
Slide 13: Development and investments in modern rolling stock
Development and investments in modern rolling stock CAPEX structure in 2023 (PLN m) 2022 2023 Change Change Share Rolling stock structure in numbers y/y % y/y % PKP CARGO Group Purchases, periodic repairs and maintenance of train 510,4 771,2 260,8 +51% 44,8% cars Modernization and periodic repairs a
Slide 14: Cash flows, liabilities and funding sources
Cash flows, liabilities and funding sources (in PLN mln) Available external funding sources as of 31.12.2023 Cash flow (PLN m) 3,3 BGK S.A. 100,0 PKO BP S.A Cash flow 2022 2023 change % y/y Bank Pekao S.A. 101,6 Operational 1 018,4 1 211,0 192,6 +19% PKO Leasing S.A. ING Lease (Polska) sp. z o.o. IN
Slide 15: Agenda
Agenda Results overview 15 Operational results Financial results Market perspectives in 2024 Goals for the future
Slide 16: PKP CARGO under market pressure in 4Q 2023
PKP CARGO under market pressure in 4Q 2023 Freight turnover Freight turnover Freight turnover m tkm m tkm m tkm PKP CARGO GROUP MARKET IN TOTAL KEY PLAYERS1 15 874 -3,4% -0,7% -21,3% 15 333 6 333 4 983 3 551 3 526 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 16 Freight volume Freight volume Freig
Slide 17: Market decline continues in January – February 2024
Market decline continues in January – February 2024 Freight turnover Freight turnover Freight turnover m tkm m tkm m tkm PKP CARGO GROUP MARKET IN TOTAL -13,6% -32,8 % 10 543 KEY PLAYERS1 9 106 -12,7% 4 027 2 354 2 705 2 054 JAN - FEB 2023 JAN - FEB 2024 JAN - FEB 2023 JAN - FEB 2024 JAN - FEB 2023
Slide 18: Agenda
Agenda Results overview 18 Operational results Financial results Market perspectives in 2024 Goals for the future
Slide 19: Perspectives and goals for the next quarters
Perspectives and goals for the ESG strategy next quarters implementation Focus on optimizing processes Striving to change energy mix model into and increasing operational more renewable energy usage given the efficiency while cost-curbing and specifics of rail cargo market growth in Group sales
Slide 20: Intermodal terminal Karsznice
Intermodal terminal Karsznice Smart technology in transportation sector in Poland and in Europe Intermodal terminal located in Central Poland, at the junction of the main European east-west communication line and the north-south route connecting e.g. Adriatic, Baltic and North Sea. located directl
Slide 21: Thank you
Thank you More info: Investors Relations Team PKP CARGO S.A. ul. Grójecka 17 02-021 Warszawa e-mail: relacje.inwestorskie@pkpcargo.com phone: +48 22 391 46 67