Lubelski Wegiel Bogdanka Sa · GPW:LWB

Lubelski Wegiel Bogdanka Sa — Investor Presentation (May 2013)

22 slides from Lubelski Wegiel Bogdanka Sa's investor presentation, May 2013

  1. Slide 1: Strategy 2020

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020

  2. Slide 2: Disclaimer

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 DISCLAIMER This presentation (‘the Presentation’) has been prepared by of shares in the Company based on this Presentation as well LW BOGDANKA S.A. (‘the Company’). The information as the Company’s current and periodic reports. contained in this Presentati

  3. Slide 3: LW BOGDANKA S.A. Today

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 LW BOGDANKA S.A. Today  LW BOGDANKA S.A.:  FINANCIAL DATA (2012 consolidated): • One of Poland's largest thermal coal producers • Three coal fields • Revenue: PLN 1.8 billion • Poland's most efficient hard coal mine • Net profit: PLN 290 million • Most a

  4. Slide 4: LW BOGDANKA S.A.'s Strategy – Key Elements

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 LW BOGDANKA S.A.'s Strategy – Key Elements Completion of the investment process to double production and reinforce BOGDANKA'S position as the leading supplier of coal to commercial power plants Doubling of LW BOGDANKA S.A.'s recoverable reserves in the Lub

  5. Slide 5: Hard Coal – Poland's Main Source of Energy until 2020

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Hard Coal – Poland's Main Source of Energy until 2020 According to forecasts:  In 2013-2020, there will be a stable demand for hard coal-based primary energy in Poland, of approximately 35 million tonnes or 67 million Mg of thermal coal 1)  Production of

  6. Slide 6: To Remain the Leader in Mining Efficiency

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 To Remain the Leader in Mining Efficiency: Unit Mining Cash Cost (PLN/tonne) 200 160 150 136 100  Continuous improvement of extraction efficiency through: 50 • Work organisation 0 • Use of innovative technologies and 2012 2017 equipment  Increased outsou

  7. Slide 7: LW BOGDANKA S.A. – Strategic Objectives for 2013-2020

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 LW BOGDANKA S.A. – Strategic Objectives for 2013-2020  Long-term, sustainable growth to maintain the Company’s competitive advantage, and optimal use of internal growth potential to: • keep our position as the leader in mining efficiency • and maintain ou

  8. Slide 8: Maintaining Our Leadership in Innovative Technological Solutions – Intelligent Mine

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Maintaining Our Leadership in Innovative Technological Solutions – Intelligent Mine  Full use of a decision support system in the  Construction of an INTELLIGENT MINE process of preparing a deposit for extraction • Object-based map of underground • Uniqu

  9. Slide 9: Completion of the Investment Process Designed to Double Production

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Completion of the Investment Process Designed to Double Production Net coal production at LW BOGDANKA S.A. (million tonnes) 14 12 ≈11,5 ≈12,0 ≈10,5 10 8,6* 8 7,8 4,7 5,7 6,2 5,8 2,0 2,8 6 4 5,8 5,8 5,8 5,8 5,8 5,8 2 0 2011 2012 2013 2014 2015 2018 Net prod

  10. Slide 10: 20% Share in the Thermal Coal Market by 2015

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 20% Share in the Thermal Coal Market by 2015 Share of LWB sales in the Polish thermal coal market 25% 20% 20% 14% 15% 10% 10% 5% 0% 2011 2012 2015  BOGDANKA'S share in the thermal coal market increased significantly from ca. 10% in 2011 to ca. 14% in 2012

  11. Slide 11: Plan to Double Resources and Extend the Mine's Operating Life to about 2050

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Plan to Double Resources and Extend the Mine’s Operating Life to about 2050 Radzyń BELARUS Podlaski Kock Parczew Włodawa Lubartów UKRAINE Łęczna Lublin Chełm Krasnystaw Hrubieszów  The Company is applying for new licences in the Zamość Lublin Coal Basin 

  12. Slide 12: CAPEX for 2013-2020 (PLN 600m annual average)

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Basis for Development and Efficiency Improvement: CAPEX for 2013-2020 (PLN 600m annual average) DEVELOPMENT CAPEX MAINTENANCE CAPEX  Objective – to support the increase of  Objective - to maintain production levels and production and efficiency modernise

  13. Slide 13: Potential Synergies with Energy Producers

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Potential Synergies with Energy Producers POTENTIAL ENERGY-RELATED PROJECTS – CURRENTLY UNDER ANALYSIS: ŁĘCZYŃSKA ENERGETYKA SP. Z O.O. GDF SUEZ ENERGIA POLSKA GROUP  Modernisation and Expansion of the Bogdanka  Cooperation with Elektrownia Połaniec S.A.

  14. Slide 14: Corporate Governance, Corporate Social Responsibility and Sustainable Development

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Complying with the Highest Standards of Corporate Governance, Corporate Social Responsibility and Sustainable Development  The entire infrastructure of the mine and the Objectives for 2013-2020: Puchaczów V mining area are surrounded by  Implementation o

  15. Slide 15: Financing and Dividend Policy for 2013-2015

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Financing and Dividend Policy for 2013-2015  Cash amount necessary to protect the Company against risks in its operating Dividend as a percentage of the Group’s net profit activities: for 2013-2015 • At the level of one-month sales revenue, or • Ca. PLN 2

  16. Slide 16: The Management Board's Commitment

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 The Management Board’s Commitment  To strengthen LW BOGDANKA S.A.'s position as the leading and most efficient supplier of coal to the energy sector, to pursue the strategy to double production levels and market share, and to double recoverable reserves N

  17. Slide 17: Thank you for attention

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Thank you for attention 17

  18. Slide 18: Appendix

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Appendix 18

  19. Slide 19: LW BOGDANKA S.A. 2009-2012

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 LW BOGDANKA S.A. 2009-2012 Revenue (PLN ‘000)* Capital expenditure (PLN ‘000) 2 000 000 1,835,801 800 000 672,929 690,529 1 800 000 700 000 638,764 1 600 000 1,230,447 1,301,349 600 000 1 400 000 1,118,393 1 200 000 500 000 370,138 1 000 000 400 000 800 00

  20. Slide 20: Commercial coal production and efficiency at LW BOGDANKA S.A.

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Commercial coal production and efficiency at LW BOGDANKA S.A. Net coal production Underground productivity in output (thousand tonnes) (kg/man-days) 8 000 22 500 7 000 20 500 6 000 18 500 5 000 16 500 4 000 14 500 3 000 12 500 2 000 1 000 10 500 0 8 500 19

  21. Slide 21: Unit Mining Cash Cost – calculation based on 2012 data

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Unit Mining Cash Cost – calculation based on 2012 data Unit Mining Cash Cost = [Adjusted costs – depreciation and amortisation – change in inventories] / net production where: Adjusted costs = (cost of merchandise and materials sold + distribution costs +

  22. Slide 22: Investor Relations LW BOGDANKA S.A.

    Lubelski Węgiel BOGDANKA S.A. STRATEGY 2020 Contact Details Investor Relations LW BOGDANKA S.A. Tel. +48 81 462 56 29 +48 81 462 55 44 E-mail: ri@lw.com.pl 22

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