Pkp Cargo Spolka Akcyjna · GPW:PKP

Pkp Cargo Spolka Akcyjna — PKP Cargo — 9M 2017 Earnings Presentation

29 slides from Pkp Cargo Spolka Akcyjna's earnings presentation, 2017

  1. Slide 1: PKP CARGO GROUP 9M 2017

    PKP CARGO GROUP 9M 2017 1 © Copyright PKP CARGO S.A.

  2. Slide 2: Agenda

    AGENDA ‖ Recap of quarterly results ‖ Key achievements in 9M 2017 ‖ Commercial results ‖ Financial results ‖ Outlook 2 © Copyright PKP CARGO S.A.

  3. Slide 3: PKP CARGO's performance in 9M 2017 – cost discipline along with growing revenue

    PKP CARGO’s performance in 9M 2017* – cost discipline along with growing revenue ✓ ✓ ✓ MARKET SHARE EBITDA CAPITAL EXPENDITURES 9M 52.0% PLN 531 million PLN 332 million measured by freight turnover +54% yoy -22% yoy (+0.6 p.p. yoy) profitability of 15.4% Q3 50.9% PLN 199 million PLN 131 million +29%

  4. Slide 4: Agenda

    AGENDA ‖ Recap of quarterly results ‖ Key achievements in 9M 2017 ‖ Commercial results ‖ Financial results ‖ Outlook 4 © Copyright PKP CARGO S.A.

  5. Slide 5: Challenges in the operational area – response to growing market needs

    Challenges in the operational area – response to growing market needs ► Priority for freight trains SITUATION STABILIZED ROLLING STOCK ► Resumption of operations by the Rolling Stock Maintenance Unit in Jasło 9M 2017 ► Launch of a modern technological line in Karsznice ► Further optimization of tran

  6. Slide 6: Agenda

    AGENDA ‖ Recap of quarterly results ‖ Key achievements in 9M 2017 ‖ Commercial results ‖ Financial results ‖ Outlook 6 © Copyright PKP CARGO S.A.

  7. Slide 7: Position of the PKP CARGO Group – strengthening the leading market position

    Position of the PKP CARGO Group – strengthening the leading market position PKP CARGO Group’s share of the Polish market PKP CARGO Group’s share of the Polish market measured by freight turnover data for 9M 2017 measured by freight volume data for 9M 2017 +0,63 +1,15 p.p. p.p. 51,39% 52,02% 43,87% 4

  8. Slide 8: Positive developments on major markets – diversification of transport services

    Positive developments on major markets – diversification of transport services Intermodal Aggregates and construction materials Metals and ores freight turnover, billion tkm freight turnover, billion tkm freight turnover, billion tkm +30% +16% +34% 4,24 3,27 2,99 2,58 2,35 1,75 9M 2016 9M 2017 9M 20

  9. Slide 9: Positive developments on major markets – diversification of transport services

    Positive developments on major markets – diversification of transport services Intermodal Aggregates and construction materials Metals and ores freight turnover, billion tkm freight turnover, billion tkm freight turnover, billion tkm +26% +9% +36% 1,88 1,48 0,86 0,94 0,83 0,61 Q3 2016 Q3 2017 Q3 201

  10. Slide 10: Hard coal – lower output

    Hard coal – lower output Key events in 9M 2017 Hard coal freight turnover, billion tkm ► Hard coal output down 3.1 million tons (-6.0% yoy), hard coal sales down (- 9.0% yoy) coupled with inventories down by 1.2 million tons (-36,4% yoy) including including AWT: 0.31 AWT: 0.16 ► Transport in Poland

  11. Slide 11: PKP CARGO Group's freight transport via Polish ports

    PKP CARGO Group’s freight transport via Polish ports – growing significance of intermodal transport Freight transport via Polish ports Share of freight transport via Polish ports million tons in the PKP CARGO Group’s freight transport in 9M 2017 by freight volume -6% 42% 10,26 9,69 +11% Średnia Over

  12. Slide 12: Intermodal – rapid growth of a promising market

    Intermodal – rapid growth of a promising market Key events in 9M 2017 Intermodal freight turnover, billion tkm ► Rapid development of the New Silk Road. Higher land transport from/to China by 88% yoy measured by container volume including including AWT: 0.14 AWT: 0.10 ► The share of land transport f

  13. Slide 13: Aggregates and construction materials – robust growth in a difficult market

    Aggregates and construction materials – robust growth in a difficult market Key events in 9M 2017 Aggregates and construction materials ► The lift of the financial cap for the National Road Building Program in 2014-2020 (with an freight turnover, billion tkm including outlook to 2025) from PLN 107 b

  14. Slide 14: Metals and ores – favorable economic situation

    Metals and ores – favorable economic situation Key events in 9M 2017 Metals and ores freight turnover, billion tkm ► Higher steel production: up 18.9% yoy (7.8 million tons) in Poland, up 4.1% yoy (126.4 million tons) in the EU and up including including 5.6% (1,267 million tons) across the globe AW

  15. Slide 15: Agenda

    AGENDA ‖ Recap of quarterly results ‖ Key achievements in 9M 2017 ‖ Commercial results ‖ Financial results ‖ Outlook 15© Copyright PKP CARGO S.A.

  16. Slide 16: Building the Group's value – strong financial performance

    Building the Group’s value* – strong financial performance Operating revenue Operating expenses PLN million PLN million 7.7% 3 460 1.6% 3 214 3 303 3 358 9.4% 4.9% 1 091 1 193 1 136 1 083 9M 2016 9M 2017 Q3 2016 Q3 2017 9M 2016 9M 2017 Q3 2016 Q3 2017 EBITDA Net result PLN million PLN million 54% 53

  17. Slide 17: Steadfast cost discipline – improved ratios

    Steadfast cost discipline – improved ratios EBITDA per employee Remuneration Energy and fuel Access to infrastructure (000s PLN/employee) (PLN/thousand tkm) (PLN/thousand tkm) (PLN/thousand tkm) -2% 22,8 55% -2% 40,5 -11% -3% +6% 14,7 0.3% 35,9 19,9 19,2 23,5 23,0 9M 2016 9M 2017 9M 2016 9M 2017 9M

  18. Slide 18: Increasing cash flow on operating activity – safe financing structure

    Increasing cash flow on operating activity – safe financing structure Available funding sources Debt structure as at 30 September 2017, PLN million PLN million Cash* 31 Dec 30 Sep 111 EIB 2016 Debt 2017 BGK Long-term 1,416 1,206 647 PLN 1,141 282 Short-term 376 382 million PEKAO SA Total debt 1,792

  19. Slide 19: Capital expenditures – in line with market needs

    Capital expenditures in 9M 2017 – in line with market needs Group Group Change Capital expenditures PKP CARGO PKP CARGO Change yoy % yoy PLN million 9M 2016 9M 2017 Periodic repairs of rolling 185 258 73 40% stock 10 5 -5 -56% ICT development 1% Structure in 5% Investment construction 16 8 8 93% 78%

  20. Slide 20: Agenda

    AGENDA ‖ Recap of quarterly results ‖ Key achievements in 9M 2017 ‖ Commercial results ‖ Financial results ‖ Outlook 20© Copyright PKP CARGO S.A.

  21. Slide 21: Outlook: key commercial areas – potential for higher transport volumes

    Outlook: key commercial areas – potential for higher transport volumes Development of Polish ports Terminal network expansion Development of collaboration along the New Silk Road Intermodal Return to the concept of energy security based on hard coal Coal Closure of the Paskov and Łazy mines Coking c

  22. Slide 22: Attachments

    Attachments © Copyright PKP CARGO S.A.

  23. Slide 23: Consolidated Statement of Comprehensive Income

    Consolidated Statement of Comprehensive Income PLN million 9M 2017 9M 2016 % change Revenue from sales of services 3,402 3,166 7% Revenue from sales of goods and materials 29 22 31% Other operating revenue 29 25 13% Total operating revenue 3,460 3,214 8% Depreciation and amortization and impairment

  24. Slide 24: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position As at 30 As at 31 ASSETS [PLN million] September December 2017 2016 Property, plant and equipment 4,607 4,701 Intangible assets 44 56 Investment property 1 1 Investments in entities accounted for under the equity method 54 58 Trade and other receivables 2

  25. Slide 25: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position As at 30 As at 31 EQUITY AND LIABILITIES [PLN million] September December 2017 2016 Share capital 2,239 2,239 Supplementary capital 618 619 Other items of equity 0 11 Exchange differences resulting from conversion of financial statements of foreign operat

  26. Slide 26: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement Cash flow from operating activities [PLN million] 9M 2017 9M 2016 Gross result for the financial year 74 -230 Adjustments: Depreciation of property, plant and equipment and amortization of intangible assets 429 435 Impairment of non-current assets 0 35 (Profit) / los

  27. Slide 27: Consolidated Cash Flow Statement

    Consolidated Cash Flow Statement Cash flow from investing activities [PLN million] 9M 2017 9M 2017 Expenditures to acquire property, plant and equipment and intangible assets -368 -438 Proceeds on the transfer of property, plant and equipment, intangible assets and non-current assets held for sale 8

  28. Slide 28: Freight results

    Freight results Freight turnover (million tkm) 9M 2017 9M 2016 Change % change Share in 9M 2016 Share in 9M 2017 solid fuels 8,592 9,202 -611 -7% 37% 44% including hard coal 7,566 8,099 -533 -7% 33% 39% aggregates and construction 4,238 3,268 970 30% 18% 16% materials metals and ores 2,990 2,582 408

  29. Slide 29: Investor Relations contact

    To obtain additional information about PKP CARGO, please contact the Investor Relations Section: PKP CARGO S.A. Investor Relations Section ul. Grójecka 17 02-021 Warsaw Telephone: +48 22 391-47-09 Fax: +48 22 474-29-53 e-mail: [email protected] 29© Copyright PKP CARGO S.A.

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