Jastrzebska Spolka Weglowa S.a. · GPW:JSW
Jastrzebska Spolka Weglowa — Jastrzębska Spółka Węglowa — Q3 2024 Earnings Presentation
40 slides from Jastrzebska Spolka Weglowa's earnings presentation, Nov 29, 2024
Slide 1: Results of the JSW Capital Group for Q3 and 9 months of 2024
Results of the JSW Capital Group for Q3 and 9 months of 2024 November 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Jastrzębska Spółka Węglowa S.A. (“Company”). The contents of this Presentation have been prepared with due care based on the facts and information from the sources deemed reliable by the Company. This presentation is for information only and should n
Slide 3: Agenda
Agenda Section Title Presented by I. Introduction Ryszard Janta II. JSW Capital Group highlights Ryszard Janta III. JSW Capital Group’s operating results Adam Rozmus IV. Market environment Adam Rozmus V. JSW Capital Group’s investments Adam Rozmus VI. JSW Capital Group’s financial highlights Remigiu
Slide 4: JSW Capital Group highlights
JSW Capital Group highlights Q3 2024 vs. Q2 2024 Coal Coke Active longwalls MCC production production 3,053.0 t tons 812.5 thous. tons 25.3 782.83 PLN/t vs. vs. vs. +6.4% vs. +11.6% +16.6% -13.3% 727.9 t tons in Q2 2024 21.7 in Q2 2024 902.61 PLN/t in Q2 2024 2,868.2 thous. tons in Q2 2024 Sales rev
Slide 5: JSW Capital Group's operating results
JSW Capital Group’s operating results
Slide 6: Coal and coke production
Coal and coke production Coal production Active longwalls [000 tons] -10.5% [number] 10,118.5 9,055.1 +16.6% +1.3% +6.4% 1,932.9 1,836.8 2,868.2 3,053.0 25.3 560.3 548.3 8,185.6 7,218.3 21.7 22.5 22.8 2,307.9 2,504.7 Q2 2024 Q3 2024 9M 2023 9M 2024 Q2 2024 Q3 2024 9M 2023 9M 2024 Steam coal Coking c
Slide 7: Market environment
-. X. JSWSA Market environment
Slide 8: Market trends
Market trends Q3 2024 vs. Q2 2024 ratio comparison Steel production Steel prices on the European market [m tons] [EUR/t] 485.5 633.1 439.5 610.0 615.0 34.2 30.6 597.9 World EU Steel prices on the European market Steel prices on the European market - HRC – rods Coking coal spot prices* Coke prices**
Slide 9: Prices of JSW Capital Group's products
Prices of JSW Capital Group’s products in relation to market prices JSW Capital Group’s coking coal prices in relations JSW Capital Group’s coke prices in relation to prices of to Premium Low Vol quotations [USD/t] blast-furnace coke on the European market [USD/t] 97% 87% 80% 84% 94% 76% 88% 98% 96%
Slide 10: Sales of coal produced in the JSW Capital Group
Sales of coal produced in the JSW Capital Group Sales of coal to external customers Revenues on sales of coal to external customers* [000 tons] [PLN m] -17.7% 6,606.5 6,930.9 +12.0% 5,434.4 1,379.4 4,581.8 1,792.8 1,265.9 598.5 1,654.7 1,853.3 1,409.8 1,407.2 454.1 4,813.7 5,551.5 337.3 4,168.5 163.
Slide 11: Sales of coke produced in the JSW Capital Group
Sales of coke produced in the JSW Capital Group Sales of coke to external customers Average coke sales price [000 tons] [PLN/t] 2,531.3 2,484.8 1,376.57 1,554.19 1,305.86 1,353.34 761.2 736.9 Q2 2024 Q3 2024 9M 2023 9M 2024 Q2 2024 Q3 2024 9M 2023 9M 2024 Revenues on sales of coke and hydrocarbons t
Slide 12: Inventory of coal and coke produced in the JSW Capital Group
Inventory of coal and coke produced in the JSW Capital Group Inventory of coal produced in the JSW Group Inventory of coke produced in the JSW Group as at [000 tons] as at [000 tons] +9,0% +74,8% 285.7 1092.7 194.0 1191.3 178.8 771.5 761.6 843.9 131.7 102.3 30-Sep-2023 31-Dec-2023 31-Mar-2024 30-Jun
Slide 13: JSW Capital Group's investments
JSW Capital Group’s investments
Slide 14: JSW Capital Group's investments
JSW Capital Group’s investments [PLN m] Capital expenditures in the JSW Group* Capital expenditures in the JSW Group** Accrual basis Cash basis 3,088.9 3,267.8 176.3 80.0 309.3 373.1 1,381.1 24.8 3,314.2 2,878.5 3,044.1 819.1 37.3 2,539.5 98.9 1,257.4 22.0 1,070.0 921.3 759.8 Q2 2024 Q3 2024 9M 2023
Slide 15: JSW Capital Group's financial highlights
JSW Capital Group’s financial highlights
Slide 16: Financial highlights of the JSW Capital Group
Financial highlights of the JSW Capital Group [PLN m] Sales revenues EBITDA net of non-recurring events -26.1% -2.6% 3,856.4 11,999.7 8,866.6 (6,355.2) 18.2 4,639.7 (5,804.9) 2,761.5 2,690.3 257.5 57.5 887.2 Q2 2024 Q3 2024 9M 2023 9M 2024 Q2 2024 Q3 2024 9M 2023 9M 2024 xx.x EBITDA Net working capi
Slide 17: Change in sales revenues in the JSW Capital Group
Change in sales revenues in the JSW Capital Group Q3 2024 vs. Q2 2024 [PLN m] 77.3 (126.5) 52.8 (10.8) (33.5) (52.1) 21.6 2,761.5 2 690,3 Sales revenues Impact of coking coal Impact of coking coal Impact of steam coal Impact of change in Impact of Impact of Impact of revenues Sales revenues Q2 2024
Slide 18: JSW Capital Group's expenses by nature
JSW Capital Group’s expenses by nature [PLN m] -0.6% Most significant changes Q3 2024 vs. Q2 2024 in the following items: 11,829.4 11,762.6 320.8 Depreciation and amortization (PLN - 327.0 196.8 m) Employee benefits (PLN -188.1 m) 5,693.1 5,465.0 Materials (PLN -74.7 m) -10.5% 4,153.6 1,725.3 1,847.
Slide 19: Cost change drivers, by type, Q3 2024 vs. Q2
Cost change drivers, by type, in the JSW Capital Group Q3 2024 vs. Q2 2024 [PLN m] (196.8) 10.8 4.0 (74.7) (188.1) 10.1 4,153.6 3,718.9 Costs Depreciation and Consumption of Consumption of External Employee Other costs Costs by nature amortization materials energy services benefits by nature by natu
Slide 20: Mining Cash Cost and Cash Conversion Cost
Mining Cash Cost Cash Conversion Cost Mining Cash Cost Cash Conversion Cost [PLN m] +13.7% [PLN m] +1.0% 307.50 310.44 -13.3% 708.08 805.15 +0.3% 902.61 782.83 762.3 735.7 7,164.7 7,290.7 312.13 311.35 2,588.9 2,390.0 253.6 226.6 Q2 2024 Q3 2024 9M 2023 9M 2024 Q2 2024 Q3 2024 9M 2023 9M 2024 xx.xx
Slide 21: Unit Mining Cash Cost
Unit Mining Cash Cost Q3 2024 vs. Q2 2024 [PLN/t] (1.01) 2.64 (1.66) (65.04) 902.61 (0.11) 0.04 (54.64) 782.83 Q2 2024 Consumption of Consumption of External Employee Taxes Other costs Impact of Q3 2024 materials energy services benefits and charges by nature volume 21
Slide 22: Unit Cash Conversion Cost
Unit Cash Conversion Cost Q3 2024 vs. Q2 2024 [PLN/t] 0.13 3.00 10.18 (1.15) 32.41 1.00 26.17 (1.24) (4.90) 311.35 312.13 Q2 2024 Consumption of Consumption External services Employee Taxes and Other costs Administrative Selling and distribution Impact of Q3 2024 materials net of of energy net of tr
Slide 23: EBITDA drivers Q3 2024 vs. Q2 2024
EBITDA drivers Q3 2024 vs. Q2 2024 JSW Capital Group [PLN m] 5.2 18.2 39.5 57.7 (73.3) (196.8) (6,355.2) 6,274.8 434.7 21.6 (7.2) (85.6) EBITDA Impact of coal sales Impact of coke sales Other sales Impact of costs by Impact of impairment Impact of Other Impact of EBITDA Non-recurring Q3 2024 EBITDA
Slide 24: EBITDA drivers Q3 2024 vs. Q2 2024
EBITDA drivers Q3 2024 vs. Q2 2024 JSW Capital Group [PLN m] (13.0) (1,252.2) 39.5 57.7 18.2 2,570.8 (6,355.2) 5,067.8 EBITDA Change in coal segment Change in coke segment Change in other segment Change in EBITDA of EBITDA Non-recurring events Q3 2024 EBITDA Q2 2024 EBITDA EBITDA EBITDA consolidatio
Slide 25: Net working capital as at 30 September 2024
JSW Capital Group’s financial highlights [PLN m] Net working capital (with FIZ) as at 30 September 2024 32.0 519.3 288.7 259.3 5,304.5 3,339.7 271.2 14.1 63.5 769.2 1,433.2 4,158.6 1,248.5 Inventories Trade and other Income tax Cash and cash FIZ Other current Loans and Employee benefit Lease Trade a
Slide 26: JSW Capital Group's cash flows
JSW Capital Group's cash flows [PLN m] 27.4 (75.5) 202.8 (117.6) (229.4) 48.9 (362.1) 331.4 (209.2) (96.3) 1,248.8 769.2 Cash Profit/(loss) Depreciation Change in Change in Change in Other operating Investing Loans and borrowings Repayment of Other financing Cash at the end of before tax and amortiz
Slide 27: Transformation Plan
Transformation Plan
Slide 28: Constraints on transformation plan and implementation
Constraints on JSW Capital Group's transformation plan and implementation Key assumptions for the transformation process Transformation priorities Reduce the negative cash flows in JSW by 1 Transformation Plan compliant with the applicable regulations in particular in the area of safety regulations,
Slide 29: Six critical and three supporting work streams
The transformation of JSW Capital Group will be carried out in six critical and three supporting work streams Transformation of the JSW Group I II III IV V VI Planning and execution Planning and Work time Optimum use Procurement and capital JSW Group Efficient Mine of preparatory works conducting pl
Slide 30: Estimated impact of the Transformation Plan implementation
Estimated impact of the Transformation Plan implementation 2025-2027, [PLN m] The total estimated impact of implementing the Transformation Plan is approx. PLN 8.5 billion over the period of 2025-2027 2933,9 3035,7 2560,4 2025 2026 2027 * Estimated financial impact shown in terms of costs rather tha
Slide 31: Estimated impact of the Transformation Plan by area of operation
Estimated impact of the Transformation Plan implementation by area of operation 2025-2027, [PLN m] 2025 461.0 2,933.9 0 360.0 1,550.0 1,330.5 (767.6) The greatest impact 562.9 of the Transformation 2026 Plan will be felt from 2027, when the initiatives of the (1,694.9) 0 0 297.0 2,560.4 Efficient Mi
Slide 32: Q&A
Q&A
Slide 33: Appendices
(4, XN. JSWSA Appendices
Slide 34: Impact exerted by non-recurring events on JSW Group's EBITDA
Impact exerted by non-recurring events on JSW Group’s EBITDA [PLN m] Q2 2024 Q3 2024 9M 2023 9M 2024 Sales revenues 2,761.5 2,690.3 11,999.7 8,866.6 EBIT (6,883.4) (313.2) 2,621.3 (7,148.3) EBITDA (6,355.2) 18.2 3,856.4 (5,804.9) Impact of non-recurring events on results 6,612.7 39.5 783.3 6,692.1
Slide 35: Production, external sales, inventories of coal and coke
Production, external sales, inventories of coal and coke produced in the JSW Group [000 tons] Change Change Item Q2 2024 Q3 2024 9M 2023 9M 2024 Q3 2024/ 9M 2024/ Q2 2024 9M 2023 Coking coal production 2,307.9 2,504.7 8,185.6 7,218.3 8.5% -11.8% Steam coal production 560.3 548.3 1,932.9 1,836.8
Slide 36: Mining Cash Cost
Mining Cash Cost [PLN m] Change Change Item Q2 2024 Q3 2024 9M 2023 9M 2024 3Q2024/ 9M2024/ 2Q2024 9M2023 Consumption of materials and energy 550.6 555.5 1,623.5 1,654.1 +0.9% +1.9% External services 602.5 597.4 1,475.9 1,731.2 -0.8% +17.3% Employee benefits 1,370.2 1,171.7 3,886.8 3,709.2 -14
Slide 37: Cash Conversion Cost
Cash Conversion Cost [PLN m] Change Change Item Q2 2024 Q3 2024 9M 2023 9M 2024 3Q2024/ 9M2024/ 2Q2024 9M2023 Consumption of materials net of coal feedstock 22.5 23.3 84.9 71.9 3.6% -15.3% Energy consumption 21.9 20.8 68.1 70.6 -5.0% 3.7% External services net of transport costs of coal feedst
Slide 38: Economic position
Economic position [PLN m] Change Change Item 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 30.09.2024/ 30.09.2024/ 31.12.2023 30.06.2024 ASSETS 30,434.4 27,793.8 25,704.9 23,218.7 23,483.6 -15.5% 1.1% Non-current assets 22,758.4 22,095.9 21,375.6 18,595.6 19,132.8 -13.4% 2.9% - Property, pl
Slide 39: Asset financing sources
Asset financing sources [PLN m] Change Change Item 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 30.09.2024/ 30.09.2024/ 31.12.2023 30.06.2024 EQUITY AND LIABILITIES 30,434.4 27,793.8 25,704.9 23,218.7 23,483.6 -15.5% 1.1% Equity 16,823.9 16,971.7 16,962.3 10,936.3 10,648.2 -37.3% -2.6% Non
Slide 40: Jastrzębska Spółka Węglowa SA
Jastrzębska Spółka Węglowa SA Aleja Jana Pawła II 4 44-330 Jastrzębie-Zdrój tel.: +48 32 756-41-13 fax: +48 32 476-26-71 www.jsw.pl biuro@jsw.pl relacje@jsw.pl Węgiel metalurgiczny to nieskończony potencjał rozwoju.
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