Pkp Cargo Spolka Akcyjna · GPW:PKP

Pkp Cargo Spolka Akcyjna — PKP Cargo — Q1 2015 Earnings Presentation

20 slides from Pkp Cargo Spolka Akcyjna's earnings presentation, May 12, 2015

  1. Slide 1: PKP CARGO Group Q1 2015 Results

    PKP CARGO Group Q1 2015 Results 12 May 2015

  2. Slide 2: Agenda

    Agenda Q1 2015 Summary Operating results Financial results Outlook 2

  3. Slide 3: Most important achievements in Q1 2015

    Most important achievements in Q1 2015 – on the path to becoming a comprehensive logistics operator 1 Strengthening  Acquisitions / strategic alliances – gateway to southern Europe the position  Utilization of European transport corridors – growth in transport outside Poland in Europe  100% equit

  4. Slide 4: Results for Q1 2015

    Results for Q1 2015 – in line with expectations, improved efficiency 56% PLN 119 million PLN 95 million MARKET EBITDA CAPEX SHARE by freight turnover mainly rolling stock profitability of 13.3% maintenance Q1 2015 and modernization PLN 896 million PLN 18 million PLN 874 PLN 18 million million -13.7%

  5. Slide 5: Agenda

    Agenda Summary of Q1 2015 Operating results Financial results Outlook 5

  6. Slide 6: PKP CARGO's market shares stable despite unfavorable trends

    PKP CARGO’s market shares stable despite unfavorable trends – uncontested leader in coal and aggregate transportation Freight turnover and market structure billion tkm measured by freight turnover data for Q1 2015 -7% 2% 1% 4.20 4.25 Lotos Kolej 10% 3.70 3.46 3.52 3.60 1.82 1.81 PKP LHS 7% 1.51 1.52

  7. Slide 7: SOLID FUELS – hard coal

    SOLID FUELS – hard coal – rebound in the latter half of Q1 2015 Freight turnover hard coal (billion tkm) ARA prices +2% Coal imports from Russia and Ukraine 2.59 Higher domestic transport 2.53 Q1 2014 Q1 2015 Source PKP CARGO Main directions of transport Structure of transport by types of transporta

  8. Slide 8: Aggregates and construction materials

    AGGREGATES AND CONSTRUCTION MATERIALS – good prospects for the latter half of the year Freight turnover billion tkm Delay in investments -10% Exports to Germany 1.06 Market conditions in the 0.95 construction industry Q1 2014 Q1 2015 Source PKP CARGO Expenditures for infrastructure GDDKiA and Struct

  9. Slide 9: Metals, metal ores and scrap

    METALS, METAL ORES AND SCRAP – low commodity price, accelerating economy Freight turnover billion tkm Conflict in the east -9% Imports from Russia and Ukraine 0,96 Market conditions in industry 0,87 Q1 2014 Q1 2015 Source PKP CARGO Main directions of transport Structure of transport by types of tran

  10. Slide 10: Intermodal transport

    INTERMODAL TRANSPORT – double-digit growth YTD Freight turnover Development of Polish ports billion tkm Modernization of line no. 226 +11% Operator train 0,46 0,41 Terminal expansion in Franowo Q1 2014 Q1 2015 Acquisition of intermodal platforms Source PKP CARGO PKP CARGO’s container terminals Struc

  11. Slide 11: Operating efficiency

    Operating efficiency – improving transport and maintenance processes Operational efficiency Access to infrastructure Energy and fuel Average gross train tonnage Average running time of PLN / thousands tkm PLN / thousands tkm per operating locomotive in tons locomotives hours per day -15% -7% 3% 2% 2

  12. Slide 12: PKP CARGO is training new generations – 1,000 new train engineers

    PKP CARGO is training new generations – 1,000 new train engineers to be hired by PKP CARGO in 2015/2016 Headcount of train engineers at the end of the period Number of overtime hours per train engineer persons hours 5,008 10 4,790 7 4,559 5 2012 2013 2014 2012 2013 2014  Reducing overhauls of the P

  13. Slide 13: Agenda

    Agenda Summary of Q1 2015 Operating results Financial results Outlook 13

  14. Slide 14: Costs under control

    Costs under control – operational efficiency % Q1 2014 Q1 2015 change PLN million change Operating revenues 1,038 896 -142 -14% Operating expenses 970 874 -96 -10% EBITDA 159 119 -40 -25% EBIT 68 22 -46 -68% Net profit 58 18 -40 -69% % Q1 2014 Q1 2015 change Operating expenses change PLN million Amo

  15. Slide 15: CF, CAPEX

    CF, CAPEX – Financial ratios guaranteeing investments and development Available funding sources CASH FLOW Cash* PLN 59 million Operating (adjusted by the Voluntary 23% EIB Redundancy Program) Investing PLN 76 million PLN 1,035 41% million 24% BGK Financing - PLN 30 million Other lines of credit 12%

  16. Slide 16: Voluntary Redundancy Program

    Voluntary Redundancy Program – improving efficiency and greater flexibility Salaries in PKP CARGO Lower headcount* PLN million Headcount in persons -6% -3,922 273 257 26,478 22,556 Q1 2014 Q1 2015 31 March 2014 31 March 2015 Savings of PLN 16 million yoy -3,041 employees – outcome of the Voluntary R

  17. Slide 17: Agenda

    Agenda Summary of Q1 2015 Operating results Financial results Outlook 17

  18. Slide 18: Global approach to logistics services

    Global approach to logistics services – competitiveness of Adriatic ports and the potential offered by the Silk Road days days km k days* km k Days* days* km k days* km k maritime routs days* maritime rout through Suez Canal km k selected seaports The Silk Road countries of PKP CARGO and AWT operati

  19. Slide 19: Main challenges for the PKP CARGO Group

    Main challenges for the PKP CARGO Group Acquisitions o Domestic and international market Taking advantage of market Commercial conditions o Development of the offer for „all in one” clients o International transport development o Terminal strategy o Freight forwarding consolidation Industrial produc

  20. Slide 20: Q&A Session

    20 Q&A Session 2 LoGisTics

PKP Cargo — Q1 2015 Earnings Presentation on 6ix