Q1-Q3 2016 FACT SHEETri.lw.com.pl/pub/files/fact_sheets/FS_3Q_2016_ENG.pdf · 1.4 5.4 10.46 16.26...
Transcript of Q1-Q3 2016 FACT SHEETri.lw.com.pl/pub/files/fact_sheets/FS_3Q_2016_ENG.pdf · 1.4 5.4 10.46 16.26...
FACT SHEETLubelski Węgiel Bogdanka Spółka Akcyjna
Lubelski Węgiel Bogdanka is one of the largest and most advanced hard coal mines in Poland, standing at the forefront of domestic power coal producers. The extraction level of commercial coal in Q1-Q3 2016 amounted to 6.7 million tonnes, while in Q1-Q3 2015 equalled 5.9 million tonnes.
The BOGDANKA mine mainly supplies industrial customers located in eastern and north-eastern Poland. The customer market is stabilised and sale is conducted mostly on the basis of long-term agreements. The major directions of sale of commercial coal from LW Bogdanka are commercial and industrial power sectors. The Company stands out in the industry with regard to its financial results, efficiency of hard coal extraction and investment plans.
THE COMPANY
SALE OF COAL IN 2011-2015 AND PLAN FOR 2016 (in million of tonnes )
8
4
10
6
2
0
2011 2012 2013 2014 2015
5.8
7.8 8.29.2
2016
8.6
Sale of coal
MANAGEMENT BOARD
Krzysztof Szlaga - President of the Management Board
Stanisław Misterek - Vice-President of the Management Board, Economic and Financial Affairs
Adam Partyka - Vice-President of the Management Board, Labor and Social Affairs
Sławomir Karlikowski - Vice-President of the Management Board, Production Head of Mining Supervision in Mining Facility
Marcin Kapkowski - Vice-President of the Management Board Procurement and Investments
FINANCIAL RESULTS
approx. 8.5 - 9.0
Plan for 2016
COAL YIELD AT LW BOGDANKA S.A. 2013 - 2016 (Q3)
FINANCIAL AND OPERATING DATA
ITEM Q3 2015 Q3 2016 CHANGE Q1-Q3 2015
Q1-Q3 2016 CHANGE
TECHNICAL AND OPERATING DATA
Gross production 3,188kt
3,831 kt 20.2 % 8,946
kt10,751
kt 20.2 %
Net production 2,039 kt
2,397kt 17.6 % 5,930
kt6,682
kt 12.7 %
Coal sales 2,187 kt
2,360 kt 7.9 % 6,008
kt6,739
kt 12.2 %
Inventories (end of period)
228 kt
172kt -24.6 % 228
kt172 kt -24.6 %
New galleries (by length) 5.4 km 5.1 km -5.6 % 15.5 km 17.2 km 11.0 %
Coal yield 64.0 % 62.6 % -1.4 p.p. 66.3 % 62.2 % -4.1 p.p.
FINANCIAL DATA
Revenue 483,424 (PLN ‘000)
465,442(PLN ‘000) -3.7 % 1,326,984
(PLN ‘000)1,314,387(PLN ‘000) -0.9 %
Gross profit 74,931 (PLN ‘000)
65,942(PLN ‘000) -12.0 % 174,678
(PLN ‘000)152,280(PLN ‘000) -12.8 %
EBITDA 166,334 (PLN ‘000)
154,900(PLN ‘000) -6.9 % 458,121
(PLN ‘000)432,279 (PLN ‘000) -5.6 %
EBITDA margin 34.4 % 33.3 % -1.1 p.p. 34.5 % 32.9 % -1.6 p.p.
EBIT 73,225 (PLN ‘000)
58,072(PLN ‘000) -20.7 % 174,545
(PLN ‘000)154,637(PLN ‘000) -11.4 %
EBIT margin 15.1 % 12.5 % -2.6 p.p. 13.2 % 11.8 % -1.4 p.p.
Net profit 56,639 (PLN ‘000)
45,205(PLN ‘000) -20.2 % 132,137
(PLN ‘000)120,159(PLN ‘000) -9.1 %
Net debt/ EBITDA 0.7 0.3 -57.1 % 0.7 0.3 -57.1 %
Share of LWB sales in the thermal coal market
Share of LWB sales in the thermal coal market – products soldto the commercial power plants
MARKET SHARE IN THE PERIOD OF 2011 - 2016 (Q1-Q3)
Q1-Q3 2016
20.0%
10.0%
25.0%
15.0%
5.0%
0.0%
2011 2012 2013 2014 2015
9.9%
14.2% 14.8%16.6%
13.7%
19.8% 19.3%
24.9%
Q1-Q3 2016
14.4%
22.5%
30.0%
15.7%
25.9%
900,000
600,000
300,000
750,000
450,000
150,000
0
1,314,387
Q1-Q3 2015 Q1-Q3 2016
152,280 154,637 120,159
458,121
174,678 174,545132,137
432,279
1,050,000
1,200,000
1,350,0001,326,984
Revenues Gross profit from sales
EBITDA EBIT Nett profit
64,0 %66,0 %
68,0 %70,0 %
72,0 %
62,0 %60,0 %
Q1 Q2 Q3 Q42013
Q1 Q2 Q3 Q4
2014 2015Q1 Q2 Q3 Q4 Q1
2016
Q2
58,0 %56,0 %
Q3
annual average
quarterly coal yield
FACT SHEETLubelski Węgiel Bogdanka Spółka Akcyjna
This communication material has been prepared by BOGDANKA S.A. (the “Company”). The information contained in this material has been compiled and prepared with due care, based on facts and data taken from sources believed by the Company to be reliable, in particular based on the Company’s own research and estimates prepared on the basis of publicly available information, or Company data not constituting inside information within the meaning of Art. 154 of the Act on Trading in Financial Instruments. The Company shall not be held liable for any reason whatsoever as a result of the use of the information in this material. No information contained in this material shall be construed as a recommendation or as investment, legal or tax advice, nor is it an indication that any investment or strategy is suitable or addressed individually to any investor. The Company does not guarantee that the information contained herein is complete and does not accept any liability for the consequences of investment decisions made on the basis of this material. Sole responsibility for such investment deci-sions and any resulting losses shall lie with the investor. Every investor making an investment decision in reliance on this material is obliged to make its own assessment of the risks and benefits of the sale or acquisition of Company shares, based on all information made available by the Company in this material as well as its current and periodic reports. Some information contained herein involves a degree of risk and uncertainty, as it refers to events and is contingent on circumstances which either will or only may occur in the future. Such information is based on assumptions relating to the Company’s current and future strategies, and to the economic environment in which the Company will be operating in the future. Accordingly, actual performance may significantly differ from the plans, objectives and expectations expressed herein. Further, the Company notes that some of the information may become outdated, and the Company does not undertake any obligation to update such information. This material is not an offer within the meaning of civil law, nor is it a public offering within the meaning of the Public Offering Act, nor is it a proposal, advertisement or invitation to purchase Company shares, and has been prepared for information purposes only. Nothing in this material shall be taken as a commitment to enter into any agreement or establish any legal relationship involving the Company.
DISCLAIMER
SALES STRUCTURE
STOCK RATE FOR THE PERIOD OF 01.01.2016 - 10.11.2016
ITEM Q3 2015 SHARE Q3 2016 SHARE
Coal sales 466,584 (PLN ‘000) 96.5 % 453,005
(PLN ‘000) 97.3 %
Ceramics sales 281 (PLN ‘000) 0.1 % 6
(PLN ‘000) 0.0 %
Other activities 13,208 (PLN ‘000) 2.7 % 9,609
(PLN ‘000) 2.1 %
Sales of merchandise and materials
3,351 (PLN ‘000) 0.7 % 2,822
(PLN ‘000) 0.6 %
Total revenue 483,424 (PLN ‘000) 100.0 % 465,442
(PLN ‘000) 100.0 %
Closing price
PLN point [‘000]
Tradeover
LUBELSKI WĘGIEL BOGDANKA S.A. AT STOCK MARKET
66% ENEA S.A.
29% Others
INDICES:• WIG - Surowce• WIG30• Respect Index
* As at 10th November 2016, as per notifications from shareholders.
5% TFI PZU S.A.
DEVELOPMENT STRATEGY OF LW BOGDANKA SAAs a result of the difficult market situation affecting the Company, various activities have been carried out to enable it to adapt to the rapidly changing environment. As the sales opportu-nities are limited, it is the output level that must be accordingly adjusted. The Management Board’s assessment is that the sales capability, which influences the production level, is likely to fluctuate in the range of about 8.5 million tons over the next few years, i.e. significantly below the current capacity of the mining plant, which exceeds 10.5 million tons. Because of the sales reduction and instable coal prices, the Company has assumed as its primary goal that it will continue the policy aimed at ensuring long-term financial liquidity – under which the Company is to:
As per the business plan for 2016, the planned capital expenditures of the Company will not exceed PLN 437.9 million. This level of investments will ensure the achievement of the adopted goals, which mainly include:
• optimise the production plan
• reduce outsourced services and capital expenditures, the latter mainly by cutting back the plans of construction of new headings (in accordance with the new production assumptions for 2016-2017)
• keep the basis of the average monthly remuneration at the 2013 level at least until the end of 2016
• trim down third party services.
• maintain the production capacity at the assumed level
• implement the project to double the resources and extend the life of the mine beyond 2050, by obtaining licences and developing new prospective areas (to increase operationally usable re- sources)
• reinforce the Company as the main supplier of coal, especially for commercial power plants – to keep the existing share in sales of power coal in Poland in 2016
• keep the leader’s position in the mining sector in terms of productivity.
In 2016, LW Bogdanka S.A. will continue to implement the optimisation actions and keep costs under strict control on the basis of a new production plan. At the same time, the Company is working on acquiring contracts with small and medium customers in Poland, and is also seeking to acquire larger contracts in Ukraine. In connection with the changes to the Company’s shareholding structure, the Strategy for the subsequent years will be developed in correlation with the strategy of the new majority shareholder (Enea S.A.).
Department responsible for Investor Relations and Stock Exchange Information
Paweł BIELSKI Magdalena SZEWCZYK Paweł KRASZEWSKI+ 48 81 462 55 44
+ 48 81 462 55 44
+ 48 81 462 50 29
CONTACT
DIVIDEND POLICY
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The dividend policy forming part of the approved Strategy for the 2013-2015 period provides for the payout to Company shareholders of a dividend standing at 60% of the consolidated net profit.
The adoption of such dividend payout ratio will allow the Company, on the one hand, to finance development investments using part of the net profit, while on the other hand it will guarantee the shareholders a rate of return on the investment in Company shares in the form of an above-average dividend for the coal-mining sector.
The change in the Management Boards recommendation with regard to the dividend payout ratio can be attributed to the change in the assumptions concerning Company, net profit recorded in the Company’s separate financial statements, projected investment expenditure and other capital outlays, current possibilities and costs of obtaining debt financing and other factors having significant impact on the Company’s financial standing.
Accumulated dividend from previously years Dividend
2011 2012 2013
Accumulated dividend per share (PLN) for 2010 - 2014
19.76
2014
4.0
5.06
5.8
3.5
Q1-Q3 2016
50
30
20
0
300
250
200
150
100
50
0
350
400
I’16 II’16 III’16 IV’16 V’16 VI’16 VII’16 VIII’16 IX’16 X’16 XI’16
10
40
60
70
80