Pkp Cargo Spolka Akcyjna · GPW:PKP
Pkp Cargo Spolka Akcyjna — PKP Cargo — Merger or Acquisition (2015)
19 slides from Pkp Cargo Spolka Akcyjna's merger presentation, 2015
Slide 1: PKP CARGO purchases ORLEN KolTrans and ZCP Euronaft Trzebinia
PKP CARGO purchases ORLEN KolTrans and ZCP Euronaft Trzebinia © Copyright PKP CARGO S.A.
Slide 2: Agenda
AGENDA ‖ Deal summary ‖ Liquid fuel market ‖ Refinery product logistics ‖ Financial and operational data © Copyright PKP CARGO S.A.
Slide 3: PKP CARGO's return to the attractive liquid fuel market – deal's key parameters
PKP CARGO’s return to the attractive liquid fuel market – deal’s key parameters ✓ ✓ ✓ Purchase Enterprise value Net debt ORLEN KolTrans (99.85%) PLN 228 -PLN 23.9 ZCP Euronaft million million Trzebinia total EV pro forma net debt (net cash) of the two entities of the two entities as at 31 December 2
Slide 4: CARGO'20 – an important element in building the PKP CARGO Group's value
CARGO’20 – an important element in building the PKP CARGO Group’s value Strengthening its Product Growth through position in the liquid diversification acquisitions fuel segment Long-term contracts with the Rolling stock and commercial Growing liquid fuel segment PKN ORLEN Group synergies Limited ab
Slide 5: Significant synergies – at least PLN 10 million per annum
Significant synergies – at least PLN 10 million per annum SYNERGIES SYNERGIES Joint Shared Services Center, to move services Replace the leased multi-system locomotives from PKN Orlen’s Shared Services Center with PKP CARGO’s locomotives to PKP CARGO’s Shared Services Center Commercial synergies Lea
Slide 6: Best market practices in M&A – project execution in a few months
Best market practices in M&A – project execution in a few months Negotiation of transaction Submission of final proposal documentation 5 6 SPA / APA signing Confirmatory due diligence 4 Submission of preliminary proposal 3 Due diligence 2 NDA signing, 1 distribution of the Information Memorandum © C
Slide 7: Agenda
AGENDA ‖ Deal summary ‖ Liquid fuel market ‖ Refinery product logistics ‖ Financial and operational data © Copyright PKP CARGO S.A.
Slide 8: Non-organic growth in a forward-looking segment
Non-organic growth in a forward-looking segment 2% CAGR liquid fuel market growth until 2020 Rail transport market in the Market: rail freight turnover in the liquid fuel segment liquid fuel segment in 2015 mln tkm 5.8 5.8 2% Petroleum refinery products thousand tonne 8 877 9 771 5.6 CAGR 10% 5.5 20
Slide 9: Agenda
AGENDA ‖ Deal summary ‖ Liquid fuel market ‖ Refinery product logistics ‖ Financial and operational data © Copyright PKP CARGO S.A.
Slide 10: No alternative to rail freight – petrochemical and refinery industry logistics chain
No alternative to rail freight – petrochemical and refinery industry logistics chain Extraction Commodity logistics Product logistics Product logistics Distribution Petroleum Petroleum and Petroleum and petrochemical petrochemical products products Petroleum products (fuels) Tankers Tankers Fuel sta
Slide 11: Acquired asset being key logistics partner – handling 24% of the ORLEN Group's transport
Acquired assest being key logistics partner – handling 24% of the ORLEN Group’s transport needs Rail transport Handling of sidings c ► Key routes | Płock – Świnoujście, Płock – Warszawa, ► Sidings handled | Płock, Trzebinia, Jedlicze, Ostrów Ostrów Wlkp. – Piekary/Radzionków Wielkopolski, Włocławek
Slide 12: Rail transport is an alternative to pipelines – specific nature of the refinery industry
Rail transport is an alternative to pipelines – specific nature of the refinery industry Rail transport ► ~80% of the transport handled by ORLEN KolTrans is conducted from Płock ► The key destination for ORLEN KolTrans from Płock is Świnoujście (~50% of transport) Germany ► International transport h
Slide 13: Agenda
AGENDA ‖ Deal summary ‖ Liquid fuel market ‖ Refinery product logistics ‖ Financial and operational data © Copyright PKP CARGO S.A.
Slide 14: Business model ORLEN KolTrans and ZCP Euronaft Trzebinia
Business model ORLEN KolTrans and ZCP Euronaft Trzebinia Rolling stock Human resources (locomotives, tankers) (seasoned, well-trained staff holding the certificates required by law) Resources Infrastructure Fuel Traction energy Forwarding Key suppliers THIRD PARTIES Transport Handling of Lease of Ma
Slide 15: ORLEN KolTrans and ZCP Euronaft Trzebinia – operational highlights
ORLEN KolTrans and ZCP Euronaft Trzebinia – operational highlights Operational data of ORLEN KolTrans & ZCP Euronaft Trzebinia Revenue structure by segment (2014) Unit 2014 Jan-Sep 2015 6,7% Freight turnover billion tkm 1.3 1.0 9,5% Freight volume (transport) million tons 3.3 3.1 Wagons units 852 1,
Slide 16: Potential to enhance results further – excellent financial condition
Potential to enhance results further – excellent financial condition ORLEN KolTrans + ZCP Euronaft Trzebinia1) 2013 2014 change pro forma data (PLN million) Revenues adjusted by the loading department 188.3 186.8 -1.4 Gross profit on sales 27.1 22.0 -5.1 EBIT 16.0 16.0 0.0 EBITDA 23.0 21.2 -1.8 Net
Slide 17: Deal structure and schedule
Deal structure and schedule Assumption of operational control 5 Consent from the Office for Conditions precedent Competition and Consumer Protection 4 Registration of the amendments to the articles of association of Koltrans Bank financing 3 10-year bank loan to be repaid using the cash flow g
Slide 18: Legal disclaimer
Legal disclaimer This presentation has been prepared by PKP CARGO S.A. (“Company”, “PKP CARGO S.A.”) solely for information purposes. This presentation may not be copied, distributed or transmitted directly or indirectly to any person, for any purpose whatsoever without PKP CARGO’s knowledge and exp
Slide 19: Investor relations contact
To obtain additional information about PKP CARGO please contact the Analysis and Investor Relations Department: PKP CARGO S.A. Analysis and Investor Relations Department ul. Grójecka 17 02-021 Warsaw Telephone: +48 22 391-47-09 Fax: +48 22 474-29-53 e-mail: [email protected] © Copyri