Lubelski Wegiel Bogdanka Sa · GPW:LWB
Lubelski Wegiel Bogdanka Sa — LW Bogdanka — H1 2010 Earnings Presentation
27 slides from Lubelski Wegiel Bogdanka Sa's earnings presentation, August 2010
Slide 1: Presentation of financial results for 1H 2010
Presentation of financial results for 1H 2010 Warsaw, August 2010 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for information purposes. It is not an advertisement or a proposal to purchase securities. In preparing the presentation, LW Bogdanka S.A. used sources it deems reliable and accurate, how it cannot guarantee that those sources are precise and ful
Slide 3: Presenters
Presenters Mirosław Taras Krystyna Borkowska Zbigniew Stopa CEO Vice President for Vice President for Economic & Financial Technical Affairs Affairs 3
Slide 4: Agenda
Agenda KEY INFORMATION ABOUT LW BOGDANKA Hard coal market LW Bogdanka in 1H 2010 Development strategy and investment goals Appendices 4
Slide 5: LW Bogdanka
LW Bogdanka One of the largest and most state-of-the-art hard coal mines in Poland Producer of power coal used for production of electricity Recoverable resources: 251.3 million metric tonnes of coal (current licence ensures the mine’s life until 2034) Good geographic location (Lublin Coal B
Slide 6: Agenda: Hard coal market
Agenda Key information about LW Bogdanka HARD COAL MARKET LW Bogdanka in 1H 2010 Development strategy and investment goals Appendices 6
Slide 7: Situation of Polish coal market in 1H 2010
Situation of Polish coal market in 1H 2010 In the Company’s opinion, currently the terms of coal trade are stabilising and no price pressure is observed as it was the case in 2009. The increase in coal prices in Poland continues to be limited by a high supply of coal on the part of the Company’s
Slide 8: Imports vs. Exports
Imports vs. Exports 14 Coal imports Coal exports 12,1 12 10 10,2 10 8,7 8,1 8 6,4* 6,2 5,9 6 4 2 0 2007 2008 2009 1H 2010 Source: Ministry of Economy, Central Statistical Office (excluding mines of ZG Siltech and LW Bogdanka S.A.) * Data for imports in 1H 2010 – company estimates based on imports in
Slide 9: Agenda: LW Bogdanka in 1H 2010
Agenda Key information about LW Bogdanka Hard coal market LW BOGDANKA IN 1H 2010 Development strategy and investment goals Appendices 9
Slide 10: Key events at LW Bogdanka in 1H 2010
Key events at LW Bogdanka in 1H 2010 In March 2010 Polish pension funds purchased a 46.7% stake in LW Bogdanka from the State Treasury for over PLN 1 billion, thus making LW Bogdanka a private company. In the first half of 2010, the Bogdanka LW Group completed investments in fixed assets with th
Slide 11: Financial data - 1H 2010
Financial data - 1H 2010 (PLN ‘000) 1H 2010 1H 2009 Change (%) Revenue 578,099 520,795 11.00% Gross profit 183,103 159,620 14.71% EBITDA 194,709 173,695 12.10% EBIT 126,638 104,546 21.13% Net profit 106,920 83,538 27.99% 1H 2009 1H 2010 Earnings per share (PLN)* PLN 3.62 PLN 3.12 * Basic earnings pe
Slide 12: Profit and loss account
Profit and loss account (PLN ‘000) 1 H 2009 1H 2010 Change (%) Revenue 520,795 578,099 +11.00% Cost of products, goods and materials sold, sales and administrative costs 417,237 446,617 +7.04% Gross profit on sales 103,558 131,482 +26.96% Other revenue 2,569 2,251 -12.38% Other costs 1,104 1,745 +58
Slide 13: Balance sheet
Balance sheet (PLN ‘000) 31.12.2009 30.06.2010 Fixed assets, of which: 1,617,528 1,899,369 Cash and cash equivalents 46,158 47,351 Current assets, of which: 852,286 771,001 Cash and cash equivalents 681,659 577,170 Total assets 2,469,814 2,670,370 Current liabilities 253,138 348,840 Non-current liab
Slide 14: Profitability ratios
Profitability ratios EBITDA and EBIT margins EBIT and net margins 40% 25% 21.91% 35% 33.35% 33.68% 20.07% 20% 18.50% 30% 16.04% 25% 21.91% 15% 20.07% 20% 15% 10% 10% 5% 5% 0% 0% 1H 2009 1H 2010 1H 2009 1H 2010 EBITDA margin EBIT margin EBIT margin net margin 14
Slide 15: Sales structure
Sales structure (PLN ‘000) 1H 2009 share % 1H 2010 share % Coal sales 499,737 95.95% 559,914 96.86% Sales of ceramics 5,721 1.10% 3,535 0.61% Other activities 13,635 2.62% 10,700 1.85% Sales of goods and materials 1,702 0.33% 3,950 0.68% Total sales revenue 520,795 100.00% 578,099 100.00% 1H 2009 1H
Slide 16: Structure of costs by type at LW Bogdanka
Structure of costs by type at LW Bogdanka 1H 2009 1H 2010 Costs by type Costs by type (PLN ‘000) (PLN ‘000) 509,606 4,217 594,686 3,764 -33,389 -23,190 Amortisation Amortisation 67,650 66,573 66,401 131,208 Materials Materials and and energy used energy used Cost of goods and 177,210 156,513 materia
Slide 17: Structure of costs by type at LW Bogdanka
Structure of costs by type at LW Bogdanka 1H 2009 1.4% 1.8% 2.3% 13.3% 34.3% 30.7% 1H 2010 16.1% 1.8% 1.4% 1.8% 11.2% Amortisation Amortyzacja 31.7% Materials Zużycie and energy materiałów used i energii 29.8% Contracted Usługi obce services Labour costsna rzecz pracowników Świadczenia Advertising K
Slide 18: Agenda: Development strategy and investment goals
Agenda Key information about LW Bogdanka Hard coal market LW Bogdanka in 1H 2010 DEVELOPMENT STRATEGY AND INVESTMENT GOALS Appendices 18
Slide 19: Development strategy
Development strategy Building and increasing the value of the LW BOGDANKA Group for shareholders, by: gaining access to new reserves and increasing the level of coal extraction – extension of the Stefanów Field maintaining a stable position as the main supplier of coal in eastern Poland, particularl
Slide 20: Investment expenditures in 2010
Investment expenditures in 2010 Key material investments of the LW BOGDANKA Group in the first half of 2010 (PLN ‘000) Key material investments 1H 2010 Construction and installation works 158,213 Delivery completion and purchases of fixed assets 192,118 Other 1,104 Advances toward fixed assets under
Slide 21: Achievement of issue goals in 1H 2010
Achievement of issue goals in 1H 2010 In the 1st half of 2010 the company spent PLN 58,988,000 of proceeds from the issue of Series C shares to carry out the following investment tasks: Construction of lifting and ventilation shaft 2.1 in the Stefanów Field Construction of system for transportin
Slide 22: Thank you
Thank you Lubelski Węgiel BOGDANKA S.A. Bogdanka, 21-013 Puchaczów tel. (+48) 81 462-51-00, 81 462-51-01 fax (+48) 81 462-51-91, 81 462-56-37 bogdanka@lw.com.pl 22
Slide 23: Agenda: Appendices
Agenda Key information about LW Bogdanka Hard coal market LW Bogdanka in 1H 2010 Development strategy and investment goals APPENDICES 23
Slide 24: Shareholding structure
Shareholding structure Shareholding structure of LW Bogdanka as of 31 August 2010 State Treasury 4.97% OFE Aviva BZ WBK 14.74% ING OFE 9.63% OFE PZU Others Złota Jesień 55.80% 9.76% AMPLICO OFE 5.10% 24
Slide 25: Competitive edge
Competitive edge NATURAL CONDITIONS TECHNOLOGY ORGANISATION location bonus – good geographic cutting-edge technologies and world- experienced Management Board location for major customers (transport class machinery used in the process of composed of persons working for many cost is a significa
Slide 26: Mining companies in Poland
Mining companies in Poland Hard coal mine sector in Poland 2 coal basins: Lublin region – power coal Upper Silesia – power coal and coke coal 32 working mines, including: Lubelski Węgiel BOGDANKA S.A. – 1 mine Lower Silesia Coal Upper Kompania Węglowa S.A. – 16 mines Basin* Silesia Coal Basi
Slide 27: Hard coal – main power source
Hard coal – main power source Almost 90% of electricity produced in Poland is produced from coal, mainly hard coal (56.07%). Forecast stable and long-term demand for coal: planned new power blocks* (16.3 GW – 33.4 million tonnes of coal) no effective alternative sources (until 2020) increase i