Lubelski Wegiel Bogdanka Sa · GPW:LWB
Lubelski Wegiel Bogdanka Sa — LW Bogdanka — Q3 2009 Earnings Presentation
24 slides from Lubelski Wegiel Bogdanka Sa's earnings presentation, Nov 10, 2009
Slide 1: Presentation of Q1-Q3 2009 Financial Results
Presentation of Q1-Q3 2009 Financial Results Warsaw, 10 November 2009 www.bogdanka.eu 1
Slide 2: Disclaimer
Disclaimer This presentation is provided for information purposes only. It does not constitute an advertisement or offer to buy securities, IPO included. It contains sources of information that LW “BOGDANKA” S.A. (the “Company”) to be reliable and accurate, but the Company does not make any warranty
Slide 3: Agenda
Agenda LW BOGDANKA Hard coal market Presentation of financial results Development strategy and investment goals Appendices www.bogdanka.eu 3
Slide 4: LW BOGDANKA
LW BOGDANKA EBIDTA (PLN m) Net profit (PLN m) 400 339,6 350 319,5 One of the largest and most modern 300 266,6 241,4 243,4 hard coal mines in Poland, 250 Producer of steam coal used to 200 155,8 174,4 150 125,5 generate electricity, 105,7 94,3 100 Coal reserves: 254.7m tonnes (the 50 current license
Slide 5: Competitive Advantages
Competitive Advantages NATURAL CONDITIONS TECHNOLOGY ORGANISATION beneficial location – convenient use of latest technologies and state- Management Board comprising persons geographical location relative to main of-the-art. Equipment in hard coal with extensive long-term experience in customers (cos
Slide 6: Agenda
Agenda LW BOGDANKA Hard coal market Presentation of financial results Development strategy and investment goals Appendices www.bogdanka.eu 6
Slide 7: Hard Coal Market in Poland between January and September 2009
Hard Coal Market in Poland between January and September 2009* Improvement of macroeconomic conditions and increase in demand for coal in H2. 2009 Following substantial deterioration in the coal mining industry in H1. 2009, H2. 2009 has seen improvement of macroeconomic conditions and the Company ha
Slide 8: Coal Imports vs. Exports
Coal Imports vs. Exports m tonnes 18 Coal imports Coal exports 15,8 16 14 12,1 12 10 10 ARA Ports 8,1 (Amsterdam- 7,4 Russia 8 Rotterdam- 6,6 5,9 Antwerp) 6 5,2 4 2 0 2006 2007 2008 Q1-Q3 2009 Source: Ministry of Economy, Main Statistical Office (GUS) Figures on imports in Q1-Q3 2009: Company’s esti
Slide 9: Agenda
Agenda LW BOGDANKA Hard coal market Presentation of financial results Development strategy and investment goals Appendices www.bogdanka.eu 9
Slide 10: Summary of Q1-Q3 2009 Financial Results
Summary of Q1- Q1-Q3 2009 Financial Results Q1-Q3 Q1-Q3 Item (PLN ‘000) Q3 2008 Q3 2009 Change (%) Change % 2008 2009 Revenue 279,329 329,877 +18.10% 773,255 850,672 +10.01% Gross profit 98,809 143,234 +44.96% 216,577 302,854 +39.84% EBITDA 129,507 145,759 +12.55% 266,652 319,454 +19.80% EBIT 93,800
Slide 11: Profitability Ratios
Profitability Ratios EBITDA and EBIT margin (%) EBIT/net margin (%) 30% 40% 37,6% 34,5% 25,1% 35% 25% 21,2% 30% 25,1% 20% 25% 16,2% 21,2% 20,5% 20% 15% 15% 10% 10% 5% 5% 0% 0% Q1-Q3 2008 Q1-Q3 2009 Q1-Q3 2008 Q1-Q3 2009 EBIDTA margin EBIT margin EBIT margin Net margin Above average profitability in
Slide 12: Sales Structure
Sales Structure Item (PLN ‘000) Q1-Q3 2008 Share % Q1-Q3 2009 Share % Coal sales 749,195 96.89% 820,764 96.48% Sales of ceramics 2,021 0.26% 7,148 0.84% Other activities 15,631 2.02% 16,071 1.89% Sales of goods and materials 6,408 0.83% 6,689 0.79% Total sales revenue 773,255 100.00% 850,672 100.00%
Slide 13: Structure of Costs by Type in LW BOGDANKA S.A.
Structure of Costs by Type in LW BOGDANKA S.A. PLN ‘000 www.bogdanka.eu 13
Slide 14: Forecast of Financial Results
Forecast of Financial Results Execution after Forecast Original Forecast Current Forecast Forecast Execution Change Q1-Q3 2009 Item (PLN ‘000) (PLN ‘000) (PLN ‘000) (PLN ‘000) Revenue 1,091,713 1,143,649 +4,8% 850,672 74.4% EBIT (operating profit) 178,319 222,445 +24,8% 213,302 95.9% Net profit 140,
Slide 15: Agenda
Agenda LW BOGDANKA Hard coal market Presentation of financial results Development strategy and investment goals Appendices www.bogdanka.eu 15
Slide 16: Development Strategy
Development Strategy Creating and increasing the shareholder value of LW BOGDANKA Group through: Gaining access to new reserves and increasing coal extraction capacity based on expansion of the Stefanów Field Maintaining a stable position of the main coal supplier, in particular for electricity prod
Slide 17: Capital Expenditure Programme
Capital Expenditure Programme Execution of IPO Objectives Capital Expenditure Planned for Years 2009-2010 (PLN ‘000) 2009 2010 Total Growth capex (expansion of Stefanów Field) 330,974 446,274 777,248 Purchases of fixed assets 145,162 20,000 165,162 Replacement capex 50,578 38,070 88,648 Environmenta
Slide 18: Thank you
Thank you Lubelski Węgiel "Bogdanka" S.A. Bogdanka, 21-013 Puchaczów, Poland tel. (+48 81) 462-51-00, 462-51-01 fax (+48 81) 462-51-91, 462-56-37 bogdanka@lw.com.pl www.bogdanka.eu 18
Slide 19: Agenda
Agenda LW BOGDANKA Hard coal market Presentation of financial results Development strategy and investment goals Appendices www.bogdanka.eu 19
Slide 20: Income Statement
Income Statement [PLN ‘000] Q1-Q3 2008 Q1-Q3 2009 Change % Revenue 773,255 850,672 +10.01% Cost of products, goods, and materials sold 620,841 639,242 +2.96% Gross profit on sales 152,414 211,430 +38.72% Other revenue 9,815 5,380 -45.19% Other expenses 12,466 2,754 -77.91% Operating profit/(loss) ne
Slide 21: Balance Sheet
Balance Sheet [PLN ‘000] 31.12.2008 30.09.2009 Fixed assets, of which: 1,386,033 1,561,883 Cash and cash equivalents 41,073 43,109 Current assets, of which: 271,397 906,354 Cash and cash equivalents 99,874 697,240 Total assets 1,657,430 2,468,237 Current liabilities 318,828 509,670 Non-current liabi
Slide 22: Mining Companies in Poland
Mining Companies in Poland Hard Coal Mining in Poland 2 coal basins operated in Poland: Lublin Coal Basin – steam coal, Upper Silesian Coal Basin – steam and coking coal. 32 operating coal mines, of which: Lubelski Węgiel Bogdanka S.A. - 1 mine, Lower Kompania Węglowa S.A. - 16 mines, Silesian Coal
Slide 23: Capital Group Structure
Capital Group Structure New Shares (IPO) Freefloat AVIVA OFE 26% 6.3% Kozienice Power Plant State Treasury (ENEA Group) – 1.4% * 65.5% NFOŚiGW – 0.4% * Others – 0.3% * * As of June 30, 2009 ŁĘCZYŃSKA ENERGETYKA Sp. z o.o. Building Ceramics Plant (88.70%) EkoKLINKIER Production and distribution of he
Slide 24: Hard Coal – Main Energy Source
Hard Coal – Main Energy Source Almost 90% of electricity in Poland is produced from coal, mainly hard coal (55.87%); Steady long-term demand for coal: New power units planned* (16.3 GW – 33.4m tonnes of coal), Lack of efficient alternative energy sources (until 2020), Increase in demand for energy f