Leader in the logistics services market

Summary of 2018

The previous year was a very good period for the PKP CARGO Group. I would even dare to say that it was the best year in the Group’s history. This was due to both high levels of transport indicators and outstanding financial performance.
Our performance indicators demonstrate that we are improving the efficiency of our core business, as the Group’s revenue growth rate is greater than the rate of growth in its expenses. Thus, I can proudly say that I successfully deliver on the promises that I made when I assumed the position of President of the PKP CARGO S.A. Management Board to strengthen the Company’s market position and improve its financial performance.

Czesław Warsewicz President of the PKP CARGO Management Board

In 2018, the PKP CARGO Group reached a record EBITDA level of above PLN 900 million. It was driven by the Group’s effective use of the high pace of economic growth and discipline in cost management. In this period, we continued the ambitious program of upgrading the rolling stock, while reducing debt at the same time. We intend to share the net profit, which was more than 100% higher than in the previous year, with our Shareholders. The results earned last year offer a stable foundation for the Group’s further growth in all areas of its activity.

Leszek Borowiec Management Board Member in charge of Finance

In 2018, the PKP CARGO Group leveraged the good economic conditions on the rail transport market generating more than PLN 5.24 billion in revenues, carrying 121.9 million tons of cargo.
The good performance of PKP CARGO resulted from the consistent implementation of our commercial policy in recent times. The success confirms the increased trust in the PKP CARGO Group and reflects good working relations with our business partners. As a modern rail operator, we continuously strive to optimize our business in order to meet our Clients’ expectations.

Grzegorz Fingas Management Board Member in charge of Commerce

2018 is the year, in which PKP CARGO has continued the process of improving its production capacity by conducting a broad capital expenditure process.
We expand our transport capacity to satisfy the increased demand and to improve our operating efficiency through innovation and technical changes. It is also the year, in which we started implementing several organizational initiatives, which improved our effectiveness and operating efficiency.

Witold Bawor Management Board Member in charge of Operations

Corporate Social responsibility is more than just following the company management standards. It stands primarily for long-term development of a multi-dimensional, positive history of the company, with its clients, shareholders, employees and local communities.
2018 marked 10 years since PKP CARGO S.A. has been developing initiatives in the area of corporate social responsibility (CRS). As a socially responsible company, PKP CARGO manages the transportation process with respect for the highest standards of sustainable development in the economic, social and environmental aspect. In this way, the Company combines professional implementation of business objectives with a responsible attitude towards employees, business partners and the natural environment

Zenon Kozendra Management Board Member – Employee Representative

PKP CARGO Group Strategy

PKP CARGO Group - the leader on the Central and Eastern European logistics services market by becoming the no. 1 in the area of the Three Seas Initiative and on the New Silk Road.

Our main goals for 2019-2023:
SHORT-TERM OBJECTIVE

Generate annual net profit equal to

AT LEAST 8% OF REVENUE starting from 2023

SHORT-TERM OBJECTIVE

Generate annual net profit equal to

AT LEAST 5% OF REVENUE starting from 2019

SHORT-TERM OBJECTIVE

MAINTAIN A PACE OF GROWTH

in the share price that is higher than the WIG30’s growth

SHORT-TERM OBJECTIVE

GROW OPERATIONAL EFFICIENCY

measured by KPIs on an annual basis

SHORT-TERM OBJECTIVE

DEVISE THE MOST COMPETITIVE OFFER

for business partners on the New Silk Road in the European Union and in the area of the Three Seas Initiative

STRATEGIC OBJECTIVE

Gain 65%

of the Polish rail freight market by 2023 measured by freight turnover

STRATEGIC OBJECTIVE

BECOME NUMBER 1

in the area of the "Three Seas Initiative" and on the New Silk Road routes in the European Union measured by freight turnover and freight volume by 2023 and strengthen this position in 2023-2038

MAP FOR PKP CARGO GROUP INTERMODAL TRANSPORT DEVELOPMENT

PKP CARGO GROUP IN NUMBERS

  • Solid fuel
    (freight volume)
    m tonnes
  • Aggregates
    (freight volume)
    m tonnes
  • Metals and ores
    (freight volume)
    m tonnes
  • Intermodal
    (freight volume)
    m tonnes
  • Other products
    (freight volume)
    m tonnes
  • Revenue bn pln
  • EBITDA m pln
  • EBIT m pln
  • Net result m pln
  • CAPEX m pln
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Professional
personnel
(FTEs)

23 664 persons

Transparent
company
of the year

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Intermodal
Transport
Leader

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GAZELE
BIZNESU 2018

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SOLIDNA
FIRMA 2018

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BUSINESS ACTIVITIES OF PKP CARGO GROUP

Main activity
PKPCARGO

The PKP CARGO Group is the biggest in Poland and one of the biggest rail freight operators in the European Union. The Group’s development is focused on enhancing and extending its operations in terms of its product range and geographic area. At present, the Group is the leader on the Polish market (according to the Office of Rail Transport – UTK) and it is the second largest operator on the Czech market (according to SZDC).

Products transported by PKP CARGO Group
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    Solid
    fuels
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    Aggregates
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    Metals and ores
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    Intermodal
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    Chemical products
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    Liquid fuels
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    Timber and produce
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    Other
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Forwarding

rail, road, water transport, storage, transshipment, custody duty.

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TERMINALS

conventional and intermodal.

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ROLLING STOCK

repair, maintenance and rental.

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Sidings

formation of trains, rail traffic management on sidings.

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LAND RECLAMATION

revitalisation of post industrial areas.

How do we create value?

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Financial
capital

PLN 5.24 bn

Group revenues in 2018

over PLN 800 m
 

diversified sources of financing

PLN 894 m
 

CAPEX

PLN 907 m
 

EBITDA

Dividend

pay out recommendation

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Production
capital

over 2 300

locomotives

ca 65 000

of train wagons

Intermodal transport
leader

Award

comprehensive rail infrastructure

sidings, terminals, railway cranes, customs agencies, warehouses, rolling stock repair plants

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Intellectual
capital

innovations

modernization of the rolling stock:
locomotives and train wagons

SMS and MMS

top-notch
safety systems

technological projects

an autonomous dual-mode locomotive
and a hydrogen project

30 international industrial organizations

membership in international industrial organizations

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Human
capital

over 23 000

of employees in the Group qualified personnel

over 96%

of employed on contract
of employment stable level of employment

over 95 000

of training hours for employees

numerous awards

confirming the high quality of services provided

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Social
capital

Safety improvement campaigns campaigns

„Railroad barrier to risk”
and „I want to live safely”

Organization of cultural events

„PAROWOZJADA",
„Summer with Steam Locomotives"

Open-air museum in Chabówka

protection of the rail freight monuments

We run to help

sports initiatives engaging the employees

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Natural
capital

PLN 176 m

expenditure on environment

Monitoring

measuring the emission of substances into the air

Drones

providing monitoring of hazardous products transport

land reclamation

revitalization of post industrial area

MAP FOR PKP CARGO GROUP INTERMODAL TRANSPORT DEVELOPMENT

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