Slide 1: Financial and operating results of the PKP CARGO Group for Q1 2024
Financial and operating results of the PKP CARGO Group for Q1 2024 Warsaw, 27 May 2024
Slide 2: Agenda
Agenda Summary of results 2 Market environment Operating results Financial results Priorities in 2024
Slide 3: Agenda
Agenda Summary of results 3 Market environment Operating results Financial results Priorities in 2024
Slide 4: Deepening downturn in the industrial sector
Polish rail freight market under pressure from a slowdown in the industrial sector in Q1 2024 Deepening downturn in the industrial sector Industrial production growth, y/y A slowdown in the industrial sector in Q1 2024: In March 2024, year-on-year decreases in 14,9% 16,4% 16,3% 14,5% 13,4% indus
Slide 5: Agenda
Agenda Summary of results 5 Market environment Operating results Financial results Priorities in 2024
Slide 6: Decline in freight volume
Polish rail freight market under pressure in Q1 2024 Decline in freight volume Total rail market [thous. tons] 2023 2024 Month-on-month change +902 +5.1% In Q1 2024, the rail freight sector transported 54.2 -6,379 Yoy change -10.5% -2,400 Yoy change -11.4% million tons of cargo (-10.5% yoy). 21 08
Slide 7: Situation in key transport segments - freight volume in Q1 2024
Situation in key transport segments - freight volume of the PKP CARGO Group in Q1 2024 (consolidated numbers) Aggregates and construction Solid fuels* Intermodal transport materials 13.4 -19.2% +28.8% -35.1% 8.7 4.4 3.6 1.2 1.6 million tons Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 7 Timber an
Slide 8: Decline in freight turnover
Polish rail freight market under pressure in Q1 2024 Decline in freight turnover 2023 2024 Total rail market [mm tkm] Month-over-month change +307 +6.6% In Q1 2024, freight turnover fell 12.6% yoy to 14.0 -2,015 Yoy change -12.6% -569 Yoy change -10.3% billion tkm. In the period under review, th
Slide 9: Situation in key transport segments - freight turnover
Situation in key transport segments - freight turnover PKP CARGO Group in Q1 2024 (consolidated data) Aggregates and Solid fuels* construction materials Intermodal transport 3.4 -24.2% +48.4% -48.9% 1.7 1.2 0.9 0.5 0.7 billion tkm Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 9 Timber and Metals a
Slide 10: Critical segment of the rail freight market impacted by the climate policy
Critical segment of the rail freight market The demand of the energy sector for coal impacted by the climate policy is consistently declining: Companies adapt to the requirements Transport: hard coal - PKP CARGO Group (consolidated data) of the climate policy freight volume (thous. tons) Domes
Slide 11: Agenda
Agenda Summary of results 11 Market environment Operating results Financial results Priorities in 2024
Slide 12: Q1 2024 results under pressure from market slowdown
Q1 2024 results of the PKP CARGO Group under pressure from market slowdown REVENUES FROM CONTRACTS WITH FREIGHT FREIGHT CAPITAL EXPENDITURES CUSTOMERS VOLUME TURNOVER (CAPEX) PLN 1,180.7 m 17.9 m tons 4.6 b tkm PLN 323.5 m -24.5% yoy -23.3% yoy -28.8% yoy -31.1% yoy EBITDA EBIT NET RESULT CASH AT TH
Slide 13: Decrease in revenues and operating results
Decrease in revenues and Decrease in revenues and operating results operating results Revenues and EBITDA fell by 24.5% and Revenues from contracts with 65.9% yoy, respectively. customers EBIT impacted by: 1,564.0 -24.5% Increased depreciation expenses, which are 1,180.7 driven by capital expend
Slide 14: Net profit under pressure from financial expenses
Net profit under pressure from Decline in profit financial expenses Net financial revenue and (expenses): Pre-tax result PLN m Net result PLN m PLN -48.0 million. PLN -273.4 million PLN -222.3 million Negative pre-tax result: PLN -142.8 130.6 -142.8 104.2 -118.1 million. Q1 2023 Q1 2024 Q1 2023
Slide 15: Pressure from employee and depreciation expenses
Pressure from employee and Payroll costs up by 6% yoy. depreciation expenses Headcount down by 408 in PLN million Change % change people compared to 31 Q1 2023 Q1 2024 % share Employee benefits yoy yoy December 2023 Employee benefits are 491.8 521.3 29.5 +6.0% 41.3% 191.4 219.2 +14.5% 17.4% De
Slide 16: Reduction of capital expenditures to match the needs
Reduction of capital expenditures to match the needs PLN m Change % change % Structure of rolling stock used Q1 2023 Q1 2024 yoy yoy share by the PKP CARGO Group Investment construction activity 29.5 2.8 -26.7 -90.5% 0.9% Locomotive upgrades 0.1 0.0 -0.1 -100.0% 0.0% Workshop machinery and equipment
Slide 17: Improvement of operational efficiency as an objective for 2024
Improvement of operational efficiency as an objective for 2024 Average daily running time of Average gross train tonnage Average distance covered per a locomotive (h) per operating locomotive locomotive (km/day) (in tons) 13.2 11.4 1,593 -8.5% 1,457 210.7 -13.6% -14.2% 180.7 Q1 2023 Q1 2024 Q1 2023
Slide 18: Financial position under pressure from debt
Financial position under pressure from debt Cash flows in Q1 (PLN million) Available external financing sources as at 31 March 2024 (PLN million) 100.0 BGK S.A. PKO BP S.A Bank Pekao S.A. 10.6 PKO Leasing S.A. ING Lease (Polska) sp. z o.o. ING Bank N.V. 12.9 9.8 74.3 1.1 18 Cash and cash equivalents
Slide 19: Current and non-current liabilities a challenge for liquidity
Current and non-current liabilities a challenge for liquidity Structure of liabilities (PLN million) Liabilities 31 Dec 2023 31 Mar 2024 Non-current 2,784.2 2,770.7 Current 2,333.3 2,414.7 Total liabilities 5,117.5 5,185.4 Contractual maturities from the end of the reporting period Total 31 March 20
Slide 20: Agenda
Agenda Summary of results 20 Market environment Operating results Financial results Priorities in 2024
Slide 21: Management priorities in the upcoming quarters
Management priorities in the upcoming quarters Implement the ESG Strategy Focus on optimizing processes and reducing costs to improve the Make efforts to change the energy financial standing of the Group consumption model towards increasing the share of renewable energy, taking Active cost pol
Slide 22: Thank you for your attention
Thank you for your attention For more information, contact Management Board Office and Investor Relations Department PKP CARGO S.A. ul. Grójecka 17 02-021 Warsaw e-mail: relacje.inwestorskie@pkpcargo.com Phone no.: +48 22 391 46 67