Energomontaż Południe S.A. Meeting with Investors. Development of the Energomontaż Południe S.A. Capital Group

Transcription

1 Energomontaż Południe S.A. Meeting with Investors Development of the Energomontaż Południe S.A. Capital Group Warsaw, 18 March 2010

2 /COMPANY PROFILE/COMPANY MANAGEMENT BOARD/ Andrzej HOŁDA President of the Management Board Managing Director Alina SOWA Vice President of the Management Board Financial Director Jacek FYDRYCH Member of the Management Board Director of Trade Dariusz KOWZAN Member of the Management Board Director of Contract Implementation and Development 2

3 /COMPANY PROFILE/OPERATIONS Energomontaż Południe SA specialises in the assembly, modernisation and repair of equipment and installations for professional and industrial electric power plants and hydroelectric power plants, as well as the construction of new,complete power facilities. It also assembles and installs industrial equipment for coking plants, cement plants, chemical plants and refineries. Its long experience, highly qualified management team and cooperation with reputable companies allows it to implement the latest assembly technologies for power industry equipment. 3

4 /COMPANY PROFILE/ SCOPE OF OPERATIONS/ Cooling installations 2. Turbine set 3. Carbonising system 4. Water and steam pipelines 5. Combustion system 6. Pressure element 7. Coal bunkers 8. Coal pulverizers 9. Deslagging system 10. Ventilators 11. Air heaters 12. Electrostatic precipitator 13. Flues 4

5 CURRENT POTENTIAL OF THE COMPANY 5

6 COMPANY POTENTIAL IMPORTANT CONTRACTS GERMANY RDK8 POWER PLANT KARLSRUHE value of the work approx. PLN 120 million Assembly of pressure elements pertaining to vertical walls, heating surfaces, collectors and pipelines for the new 910 MW power unit. Hamm WESTFALLEN POWER PLANT value of the work approx. PLN 100 million Pre fabrication, delivery and assembly of exhaust and air flues (approx tonnes) for two newly constructed power units of 800 MW each. Karlsruhe 6

7 COMPANY POTENTIAL IMPORTANT CONTRACTS The NETHERLANDS EEMSHAVEN POWER PLANT value of the work approx. PLN 30 million Pre fabrication and supply of exhaust and air flues (about 2600 tonnes) for two newly constructed power units of 800 MW each. Eemshaven MAASVLAKTE POWER PLANT value of the work approx. PLN 13 million Assembly of the vertical walls, boiler suspension system and heating surfaces for the pressure element of a newlyconstructed 1100 MW power unit. Maasvlakte 7

8 COMPANY POTENTIAL IMPORTANT CONTRACTS POLAND BEŁCHATÓW POWER PLANT value of the work approx. PLN 190 million Assembly of pressure elements, steam and water pipelines, exhaust and air flues, as well as auxiliary systems. Gdańsk FOOTBALL STADIUM IN GDAŃSK LETNICA value of the work approx. PLN 85 million Pre fabrication, supply and construction assembly of a steel roof for the football stadium in Gdańsk Letnicy (approx tonnes). Bełchatów 8

9 COMPANY POTENTIAL CONTRACTING The Company's current portfolio of orders is PLN 479,464,000. PORTFOLIO OF ORDERS 2010 [PLN 'ooo' ooo] 2011 [PLN 'ooo' ooo] 1 Assembly Production Lüdenscheid Technical Office Industrial Production Large Projects and General Contracting Developer Other 928 Total Including exports

10 COMPANY PROFILE SUPPLEMENTARY ACTIVITIES DEVELOPER OPERATIONS KSIĄŻĘCE ESTATE Planned completion of construction of the Investment: April 2010 Residential part: 220 apartments of a total usable Area of: 13,820 m 2 Planned revenue from the sale of units: approx. PLN 80 million The next stage of implementation will be the construction of a commercial complex 10

11 COMPANY PROFILE SUPPLEMENTARY ACTIVITIES DEVELOPER OPERATIONS LEGNICKA PARK POPOWICE Usable office area 7,868.4 m 2 Commercialisation rate 96% Planned revenue from rentals PLN 5,400,000 Planned profit PLN 1,400,000 In 2010, one offarrangementcosts are planned for PLN 600,000 11

12 COMPANY PROFILE SUPPLEMENTARY ACTIVITIES TRAINING ACTIVITIES The Company's Training Centre offers courses in basic and advanced welding, copper soldering, oxygen and plasma cutting, plastics welding and courses for operators of covered arc welding equipment. STEEL MATERIALS WHOLESALE The unit conducts trade activities for steel materials. The warehouse conducts sales externally and at the same time supplies the Company's production units. The technical equipment it possesses allows it to provide a wide range of supplementary services, such as high precision sheet cutting and producing assembly ready elements from sheeting. 12

13 COMPANY PROFILE SUPPLEMENTARY ACTIVITIES The Laboratory Research Centre is highly experienced in studying the newest generation destructive and non destructive materials used in the power industry and other industries where steel structures of high technical parameters are employed. 13

14 COMPANY POTENTIAL INVESTMENT OUTLAYS IN THE COMPANY [PLN million] * *Outlays planned for

15 COMPANY POTENTIAL INVESTMENT OUTLAYS IN THE COMPANY 2009 Grupa GUS Name Outlays [PLN 'ooo' ooo] 1 and 2 Buildings and construction and 4 General purpose boilers, machines and equipment Technical equipment Means of transport Other fixed assets Intangible assets TOTAL Units Łaziska Assembly Production Plant Łagisza Industrial Production Plant Laboratory Research Centre Outlays [PLN 'ooo' ooo] Training Centre Integrated intangible assets Other TOTAL

16 COMPANY POTENTIAL PLANNED COMPANY INVESTMENT OUTLAYS FOR 2010 Grupa GUS Name Outlays [PLN 'ooo' ooo] Units Outlays [PLN 'ooo' ooo] 1 and 2 Buildings and construction and 4 General purpose boilers, machines and equipment Technical equipment Łaziska Assembly Production Plant Łagisza Industrial Production Plant Means of transport Other fixed assets Integrated intangible assets Intangible assets TOTAL Laboratory Research Centre Integrated intangible assets Other TOTAL

17 COMPANY POTENTIAL / EMPLOYMENT IN THE CAPITAL GROUP Blue collar workers White collar workers 17

18 / COMPANY POTENTIAL / COOPERATION ,600 1, ,200 1,168 1, ,000 1, I II III IV V VI VII VIII IX X XI XII Employment in Capital Group Cooperation 18

19 FINANCIAL DATA 19

20 FINANCIAL DATA REVENUES [PLN million] * Energomontaż Południe SA EP Capital Group *based on Q Report 20

21 [PLN million] / FINANCIAL DATA / SEGMENTATION NON CONSOLIDATED REVENUES BY SECTOR / * including developer *based on Q Report 21

22 [PLN million] / FINANCIAL DATA / SEGMENTATION CONSOLIDATED REVENUES BY SECTOR / including developer * *based on Q Report 22

23 / FINANCIAL DATA / PROFITABILITY OF GROSS PROFIT FROM SALES / [PLN million] % 14.3% 15.5% 13.6% 7.6% 7.7% 4.7% 5.0% * Energomontaż Południe SA EP Capital Group *based on Q Report 23

24 / FINANCIAL DATA / SEGMENT GROSS RESULT FROM SALES AND NET RESULT/ [PLN million] * Net profit Gross profit from sales *based on Q Report 24

25 / FINANCIAL DATA / CONSOLIDATED GROSS RESULTS FROM SALES AND NET RESULT / [PLN million] * Net profit Gross profit from sales *based on Q Report 25

26 No. COMPANY RESULT SELECTED BALANCE SHEET ITEMSI ASSETS 2009* [EP] 2009* [CG] I. Non current assets II. Current assets, including: Inventories Current receivables including receivables from issues Total assets No. LIABILITIES 2009* [EP] 2009* [CG] I. Equity, including: Capital reserves including capital from issues II. Non current liabilities Financial liabilities including bank credits and loans III. Current liabilities Financial liabilities including bank credits and loans Total liabilities *based on Q Report

27 / FINANCIAL DATA/ VALUE OF CONSOLIDATED INVENTORIES / [PLN million] * Development Value of material inventories *BASED ON Q result 27

28 BUILDING THE POTENTIAL OF THE CAPITAL GROUP 28

29 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Vision: On the basis of the experience and resources of Energomontaż Południe, to create an important engineering concern in the region specialising in the general contracting of installations and the assembly of power and industrial equipment. Strategic goals: 1. Growth through strategic alliances 2. Making use of synergies within the Capital Group 3. Reinforcing the financial strengths of the Company 4. Growth through mergers and acquisitions 5. Restructuring employment in the direction of highly qualified engineering personnel 6. Maximising the use of company assets beyond basic operations (inc. developer activities) 7. Inwestments in the production and assembly base 29

30 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Capital alliances: Thanks to an issue of series E shares, the Company joined the PBG Capital Group Effects: EP S.A. is described as the leader of the "Power group of companies in the PBG Group, operating in the area of contracting for the power industry Access to PBG Group know how Expanding potential markets to include those sectors in which the PBG Group operates Access to the financial potential of PBG 30

31 / SYNERGY IN THE CAPITAL GROUP / Revenue synergies Packaging of offers cooperating with entities in the capital group on making joint offers on high value tenders An effect of revenue synergy is the cooperation of Companies in the construction investment for MW power units in the Opole Power Plant, where: PBG is responsible for guaranteeing the investment financing, coordinating the project, and Energomontaż Południe is responsible for providing comprehensive assembly services and the pre fabricationand delivery of steel elements supporting the General Contractor in managing projects 31

32 / SYNERGY IN THE CAPITAL GROUP / Cost synergies Economies of scale the possibility of obtaining greater price reductions at the Group scale Reductioninsalescosts by using group contacts with strategic customers 32

33 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Reinforcing the financial strengths of the Company Number of shares in the series E issue: 22,582,001 Unit issue price per series E share: PLN 3.45 Proceeds from the issue: PLN 77,907, Thanks to the funds obtained from the issue, the company increased its capability of implementing large projects, and now has the financial strength to carry out mergers and acquisitions. 33

34 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Current shareholding structure Other shareholders per cent PBG S.A. 25 per cent + 1 share Renata Gasinowicz per cent Stanisław Gasinowicz 6.81 per cent Andrzej Hołda 6.96 per cent 34

35 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / The Company plans to designate the proceeds from the share issue for: PLN 50 million Acquisition of companies in the power industry PLN 12 million Working capital PLN 15 million Investments in fixed assets 35

36 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / GROWTH THROUGH MERGERS AND ACQUISITIONS / Mergers and acquisitions Entities with significant construction and design know-how resources Entities with high contracting and technological potential Basic criteria for the selection of M&A targets Complementary operational profile Entities which have a solid position in the industry Building value for EP shareholders by searching for attractively-priced entities Sound financial condition (we do not rule out acquiring entities which meet the above criteria but whose financial standing is in jeopardy, if they are obtainable at a bargain price) 36

37 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Restructuring employment As at The Company's goals are: to increase its engineering potential, to participate in investments at the design stage, to develop and launch new technologies, and it aims to achieve these by: doubling its engineering staff by 2012, 983 by: Engineering staff Others ongoing hiring within the Company, acquisitions of engineering firms operating in the power industry. 37

38 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Optimising Company assets beyond basic operations The Company owns land designated for the following investments: Katowice Ligota theksiążęce Estate Consecutive stages are under construction, covering commercial and residential sections 31,400 m 2 Katowice Piotrowice Land being developed as an estate, not far from the city centre m 2 Opole The Company owns land in Wójtowa Wieś of an area of 80,000 m 2 38

39 / BUILDING THE POTENTIAL OF THE CAPITAL GROUP / Inwestments in the production and assembly base Planned average yearly outlays in future years PLN million Growth in the production base by: direct outlays on fixed assets, the acquisition of companies with welldeveloped technical support. 39

40 / MARKET NEEDS / TENDERS / Investor Facility Subject of the tender ZEPAK PKE SA PKE SA Synthos Dwory Sp.z o.o. PGE SA Jastrzębska Spółka Węglowa SA PGE SA Elektrownia Konin Elektrownia Jaworzno III Elektrownia Łaziska Zakłady Chemiczne Dwory Dolna Odra Power Plant KWK Krupiński Bełchatów Power Plant Turnkey construction of a biomass storage and transport installation Adaptation of the OP 650k boiler on units No. 1, 2, 3, 4, 5, and 6 to reduce NOx emissions Adaptation of the OP 650k boiler on units No. 9, 10, 11 and 12 to reduce NOx emissions Construction of cogeneration sets based on gas powered engines Adding an installation for co combustion of biomass without the use of coal pulverizers in power unit No. 8 Construction of a cogeneration system with a 4 MWe generator powered by gas from mine demethanization Modernisation and renovation of the combustion system together with the boiler pressure elements of units No The current value of Company's offer shares, excluding construction of new power units, for the period , amounts to approx. PLN 1.3 billion. 40

41 / MARKET NEEDS / PLANNED INVESTMENTS / PGE [to 2025] Tauron [to 2020] Energa [to 2015] Enea [to 2020] [PLN billion] PGE: Construction of new power units: 2x 800 MW in Elektrownia Opole, 460MW in Elektrownia Turów Construction of a 1700 MW power plant in Lublin Complete modernisation of 6 power units in the Bełchatów Power Plant Tauron: Construction of a new biomass power unit in the Jaworzno Power Plant Construction of new power units in the Stalowa Wola, Blachownia and Halemba Power Plants Energa Construction of power units in the Ostrołeka Power Plant and the Elbląg Heat and Power Plant Enea Construction of a 100 MW power unit in the Kozienice Power Plant RWE Construction of a coal fired power plant in Wola (Silesia Province) ` 41

42 THANK YOUR FOR YOUR ATTENTION! Contact with investors: Alina Sowa - Vice President of the Management Board sowa@energomontaz.pl Katowice; ul. Mickiewicza 15 Tel.: ; Fax: info@energomontaz.pl; sekretariat@energomontaz.pl