FY 2012 Results and Strategy Update

2012 Financial summary

• Revenues of EUR 1,299 million, down 20%.
• Mining unit costs of EUR 81/t, down 1%.
• Q4 inventory revaluation of EUR -15 million.
• EBITDA of EUR 223 million, down 51%.
• Basic Loss per A share of EUR (0.02).
• Net debt of EUR 551 million.
• Debt maturity profile pushed out.
• Interim dividend of EUR 0.06 per A share with no final dividend

2012 Operational summary

• Further improvement in safety with LTIFR down 2.5% to 7.45.
• Regrettably, 5 miners lost their lives. Drive for fatality-free operations continues.
• Coal production of 11.2Mt, and external sales of 9.7Mt.
• External sales mix of 51% coking coal and 49% thermal coal.
• Coke production of 680kt and external sales of 555kt.
• Year-end coal inventories at 1.3Mt.
• Recent technical review of Debiensko project completed. EUR 10 million CAPEX spend planned for 2013 on purchase of surface properties and value engineering.
• Expansion of existing Karvina mine continues to plan.
• Total JORC[3] reserves of 374Mt as at 1 January 2013.

FY 2013 guidance

• Coal production target of 10.0-11.0Mt.
• Coke production target of 800kt.

External sales

• External sales target of 9.5-10.5Mt of coal equally split between coking and thermal coal.
• Coke sales target of 700kt.

Prices

• Thermal coal priced at EUR 60/t for 2013. 80% priced yearly and 20% priced quarterly, with an expected mix of 85% thermal coal and 15% middlings.
• Coking coal Q1 2013 average price agreed at EUR 103/t with an expected mix of 45% mid-volatility hard coking coal, 47% semi soft coking coal and 8% PCI coking coal.
• Coke Q1 2013 average price agreed at EUR 253/t with expected mix of 76% foundry coke, 15% blast furnace coke and 9% other types of coke.

Costs

• Broadly flat mining unit costs on a constant currency basis.
• Broadly flat coke conversion costs on a constant currency basis.

CAPEX

• Expected CAPEX of EUR 120-130 million, including EUR 10 million on Debiensko.
• Capital spending on new mining equipment down 57% year-on-year.
• Capital spending on gateroad development down 24% year-on-year.

NWR website - full announcement