Slide 1: Mo-BRUK: the leader of growth in the waste industry builds a circular economy in Poland
Mo-BRUK: the leader of growth in the waste industry Rok założenia 1985 builds a circular economy in Poland 2020 results presentation April 2021
Slide 2: Presenters
Presenters Wiktor Mokrzycki Rafał Janik Vice President of the Board CFO 2
Slide 3: Mo-BRUK is the market leader in waste treatment with modern facilities
Mo-BRUK is the market leader in waste treatment with modern facilities and unique technologies 5 facilities >500 ths tonnes Processing capacity Waste treatment (capacity utilisation in 2019: ca. 50%) +230 people +90% Waste catalogue Group employment processed PLN 178.5 mn PLN 103.1 mn Up to 100% pro
Slide 4: Description of activities
Description of activities 4
Slide 5: The history of Mo-BRUK constitutes 35 years of continuous development
The history of Mo-BRUK constitutes 35 years of continuous development, broadening competences and building market position Józef Mokrzycki Purchase Construction of another plant Debut on the WSE Commissioning Capital increase establishes a of — RDF production in Karsy NewConnect market main market o
Slide 6: Mo-BRUK bases its activities on three diversified segments
Mo-BRUK bases its activities on three diversified segments Mo-BRUK operates in three complementary areas of waste management, with a particular specialisation in waste recovery The activity includes also 3 areas not related to waste management – other activities 1 Incineration of medical and hazardo
Slide 7: The Company's plants are located in the southern part of Poland
The Company’s plants are located in the southern part of Poland, close to plants generating large volumes of industrial waste The network of modern processing plants which allows Mo-BRUK to effectively respond to the growing market needs Management of approximately 90% of the Karsy Processing: was
Slide 8: The process chains with waste-free production
The process chains with waste-free production INORGANIC WASTE FLAMMABLE WASTE MEDICAL WASTE • Slags and ashes from waste • Flammable municipal waste • Inks incineration fractions • Lacquers, paints and adhesives • Galvanic waste • Plastics • Medical and veterinary waste • Until 2019: waste other tha
Slide 9: Segments with diversified supplier base
Segments with diversified supplier base… Waste incineration Solidification and stabilisation RDF production Waste incineration plants, chemical wastewater Recycling companies Health care centres treatment plants Municipal waste collection companies & processing Major Drug manufacturers C
Slide 10: Dynamically growing prices with visibility of further growth
…and dynamically growing in prices with visibility of further growth to levels achieved in Western European countries Price for waste acceptance (PLN/t) Waste incineration Solidification and stabilisation RDF production 4 000 500 424 416 600 540 3 796 400 500 3 000 400 300 2 000 300 200 200 120 1 00
Slide 11: Market growth potential and competitive advantages of Mo-BRUK
Market growth potential and competitive advantages of Mo-BRUK 11
Slide 12: Mo-BRUK's activity is a part of the circular economy concept
Mo-BRUK’s activity is a part of the circular economy concept Mo-BRUK’s customers, using the Company’s services, are involved in the creation of circular economy — a concept of the most rational possible use of resources and reduction of negative environmental impact of manufactured products Raw ma
Slide 13: ESG - development of our sustainability values
ESG - development of our sustainability values International funds, including funds pursuing responsible ESG investing presented significant demand for Mo-BRUK’s shares during the re-IPO transaction executed at the end of last year. Last year was a landmark year considering Mo-BRUK’s shareholder
Slide 14: Industrial waste volumes provide Mo-BRUK growth potential for many years
The amount of industrial waste generated and combustible fractions from municipal waste provides Mo-BRUK with the growth potential for many years Waste generation in Poland in years Structure of industrial waste in Poland in Market outlook for Mo-BRUK 2000-2018 (mn tonnes) 2018 (%) (annual capacity
Slide 15: Mo-BRUK is a beneficiary of EU circular economy regulations
Mo-BRUK is a beneficiary of EU regulations on circular economies forcing countries to process waste rather than to landfill, and has growth prospects due to the ever-growing waste market Disposal methods for municipal waste in selected EU countries (2018) 100% 11% 16% Reduction of waste storage an
Slide 16: High growth opportunities in all segments of the Company's operations
High growth opportunities in all segments of the Company’s operations Incineration of hazardous and medical waste Stabilization and solidification of waste Alternative fuels (RDF) Growing number of municipal incinerators Over 12 million tonnes of municipal Insufficient processing capacity in in Pola
Slide 17: Incineration of hazardous and medical waste: ecological bombs
Incineration of hazardous and medical waste The management of ecological bombs and further limiting of shadow economy will positively affect the Company dynamic development Waste generation in Poland is spatially uneven — the largest amount of waste is generated mainly in southern and western provin
Slide 18: Stabilization and solidification of waste: municipal incineration plants
Stabilization and solidification of waste Operating and planned municipal waste incineration plants will drive the solidification and stabilisation segment Bydgoszcz Białystok planned Annual capacity: Annual capacity: 9 modern municipal waste 180,000 t/y 120,000 t/y incineration plants operating i
Slide 19: RDF production segment
RDF production segment Recycling of railway sleepers and the use of RDF in power plants and municipal heat power companies constitute the assumed directions of Mo-BRUK’s development The implementation of the investment assumptions to the railway sector in Poland involves the replacement of obsolete
Slide 20: High entry barriers make similar scale of operations rare
High entry barriers make it lacking of entities with a similar scale of operations and comparable degree of diversification of activities on Polish market 1 The waste management Remondis / Remondis Medison 8 market is highly fragmented 2 Entry barriers Several large concerns and Suez Polska 3 sm
Slide 21: Strategy
Strategy 21
Slide 22: Strategy combines sustainable above-average growth with profit distribution
Mo-BRUK’s strategy combines sustainable but above-average growth with profit distribution Mission and objectives of the Increasing the value of shareholders’ assets through environmental protection activities Group Increasing the amount of processed waste based on the existing machinery park in
Slide 23: Strengthening leading position through acquisitions
Strengthening its leading position in the waste management industry in Poland through acquisitions Currently, Mo-BRUK is involved in two processes which can be finalized in the near future The key boundary conditions for the processes implemented by the Company are: • Location: mainly northern P
Slide 24: The Company is consistently attracting foreign contractors
The Company is consistently attracting foreign contractors • Cooperation in the field of waste management (i.e. import of waste) concerned contractors Status of foreign contracts from such countries as: Germany, Italy, Lithuania, Greece • Mo-BRUK does not exclude further foreign development, especia
Slide 25: 2020 results presentation
2020 results presentation 25
Slide 26: Key 2020 highlights
Key 2020 highlights • Contract with PKP Polskie Linie Kolejowe for PLN 18.1 million to utilize rail ties • Zabrze plant sold for PLN 12 million (non-core asset; the plant’s carrying value was approximately PLN 9 million yielding a profit on the sale) • Contract for up to PLN 48.9 million to utilize
Slide 27: Mo-BRUK realizes the potential built up through an intensive investment program
Mo-BRUK realizes the potential built up through an intensive investment program and takes advantage of the limitation of shadow economy Revenues (PLN million) +37,0% EBITDA (PLN million) and EBITDA margin (%) 200 178,5 120 70,0% +40,9% 57,8% +x% 150 130,6 100 60,0% +41.3% - % change y/y 92,7 43,1% 5
Slide 28: The lack of debt gives the potential to pay dividend and implement plans
The lack of debt gives the potential to pay dividend and implement strategic plans, including primarily acquisitions CFO, EBITDA (PLN million) 80 40 70,8 20 120 60 30 103,1 Standalone net profit 48,3 100 (PLN million) 6,8 39,4 0 80 74,2 40 Dividend (PLN million) -14,4 56,3 60 Buy back of shares (PLN
Slide 29: The company has doubled its revenues over the past three years
The company is taking advantage of market conditions and has doubled its revenues over the past three years, and the growth prospects are still almost limitless Revenues (PLN mn) Volumes (k tonnes) 37,0% 300 200 250 15,9 150 40,9% 78,8 32,3 200 89,4 62,8 41,2% 15,8 100 25,5 60,5 150 15,9 80,9 19,3 1
Slide 30: Strict cost discipline
One of the elements of Mo-BRUK’s success is its strict cost discipline Costs by type (PLN million) Share of operating costs in total sales revenues (%) Specification in PLN million 2017 2018 2019 2020 100 100% Total operating expenses 54.9 66.1 79.2 83.9 84% Change in the balance of products 0.1 0.1
Slide 31: Investment considerations
Investment considerations 31
Slide 32: Mo-BRUK constitutes a very attractive proposition for investors in waste management
Mo-BRUK constitutes a very attractive proposition for investors interested in exposition to the waste management industry, which is part of the global circular economy trend The leader on the prospective market of industrial and hazardous waste processing and selected municipal waste fractions Uniqu
Slide 33: Thank you for your attention
Thank you for your attention 33
Slide 34: Legal disclaimer
Legal disclaimer This document has been prepared by Mo-BRUK S.A. (“Mo-BRUK”) with its registered office in Niecew 68, Korzenna 33-322, entered in the Register of Commercial Undertakings of the National Court Register kept by the District Court for Kraków- Śródmieście in Kraków, 12th Commercial Divis