Coal Energy S.a. · GPW:CLE
Coal Energy — CC Group Small & MidCap Conference 3rd Edition (March 2013)
18 slides from Coal Energy's conference presentation, March 2013
Slide 1: Coal Energy – a leading Ukrainian coal mining company
Coal Energy – a leading Ukrainian coal mining company CC Group Small & MidCap Conference 3rd Edition March 2013
Slide 2: Disclaimer
Disclaimer The information in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the
Slide 3: Contents
Contents 1 Company Overview 4 2 Coal Mining Market Overview 7 3 1H FY13 and 2Q FY13 Performance Overview 11 4 Development Strategy for FY13 16 3
Slide 4: 1. Company Overview
1. Company Overview 4
Slide 5: Coal Energy – Key Indicators
Coal Energy – Key Indicators Semi-annual Indicators (1H FY2013)(1) Location of Operating Assets Resources(2) 235.5 mln. t Reserves(3) 151.2 mln. t Russia Production(4) 1.0 mln. t Belarus Poland Sales 0.9 mln. t UKRAINE Slovakia Revenue US$ 86.7 mln. Hungary Moldova Romania EBITDA US$ 24.1 mln. Bulga
Slide 6: Investment Highlights Summary
Investment Highlights Summary • #3 by reserves and among top 5 by production in Ukraine among private coal producers(1); Significant reserves 1 with growth potential • 235 mln.t of in-place coal resources under JORC, 151 mln.t of proven and probable coal reserves under JORC(2); • 2x reserves growth
Slide 7: 2. Coal Mining Market Overview
2. Coal Mining Market Overview 7
Slide 8: Thermal coal market: weak demand on the domestic market ...
Thermal coal market: weak demand on the domestic market ... Thermal coal accounts for almost 100% of fuel for the domestic power and heating power plants Although nuclear and hydro power plants produce cheaper electricity than thermal, they already operate at close to capacity, leaving thermal p
Slide 9: Thermal coal market: …. as well as on export destinations
Thermal coal market: …. as well as on export destinations The geography of export sales remain almost unchanged but export Prices remain stable in the 2H 2012 and 1Q 2013 volumes decrease due to oversupply in the global markets Thermal Coal Export Breakdown (2012) Thermal Coal Exports from Ukraine (
Slide 10: Coking coal market: price correction on the back of significant deferred demand
Coking coal market: price correction on the back of significant deferred demand Extraction has been falling since 2001… Local private mining companies Price correction is caused by volatility on the dominate in volume of extraction steel market 45.0 Ukraine’s Coking Coal Output (Mt) 400 Coking Coal
Slide 11: 3. 1H FY13 and 2Q FY13 Performance Overview
3. 1H FY13 and 2Q FY13 Performance Overview 11
Slide 12: Integrated Business Model
Integrated Business Model Coal Energy activities include all stages of coal production, waste dumps processing, coal beneficiation and trading, the first two from the list being the key activities of the company Consumers Government(2) ROM coking coal Sales of ERUs(1) Acquisitions from third paritie
Slide 13: Key Company Sales Indicators
Key Company Sales Indicators Thermal coal sales volumes, kt Coking coal sales volume, kt 1,575 1,600 1,472 1,600 The company was realizing 1,200 1,200 coal under the existing sales contracts 818 800 800 503 428 330 337 375 400 302 400 264 261 84 60 70 57 73 65 77 - - FY10 FY11 FY12 1Q 2Q 3Q 4Q 1Q 2Q
Slide 14: Financial Performance Overview
Financial Performance Overview Underground Mining, kt Waste Processing, kt 1,800 600 1,639 1,600 123 thousand tonnes of 310 500 middlings were beneficiated 1,400 on Postnikovskaya plant into 1,200 400 71 thousand tonnes of coal 1,061 400 concentrate 1,000 267 300 800 - 1,329 200 600 447 451 473 447
Slide 15: Dynamics of Production Results
Dynamics of Production Results Coal output by types of coal, kt 200 182 182 179 178 178 180 159 152 152 152 155 23 25 25 22 157 160 25 150 148 24 20 18 140 28 26 28 28 15 120 100 81 80 153 156 157 157 156 135 137 16 60 125 126 124 126 132 133 40 65 20 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-
Slide 16: 4. Development Strategy for FY13
4. Development Strategy for FY13 16
Slide 17: Development strategy for remaining FY13: keeping investments in the underground mining
Development strategy for remaining FY13: keeping investments in the underground mining CAPEX for 1H FY13 Plan of Group’s own coal production growth until FY16 35.0 4 3.8 CwAL LE “Sh/U 3.4 30.0 10.1 Blagoveshenskoe” 2.9 Donprombiznes LLC 3 25.0 4.2 20.0 3.2 CwAL LE “Mine St. 2 Matrona Moskovskaya” 1.
Slide 18: Appendix 1. Legal Structure
Appendix 1. Legal Structure Luxembourg Coal Energy S.A. 100% Cyprus Nertera Investments Limited 100% BVI Coal Energy Trading Ltd 99% 99% Tekhinovatsiya LLC Ugledobycha LLC 99% 99% Donbasuglerazrabotka LLC Eximenergo LLC 99% 99% Donantracit LLC Nedra Donbasa LLC Ukraine 99% 99% Antratcit LLC CwAL LE
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