PBG SA
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COMPANY PRESENTATION
October 2006
Company you can relay on, according Forbes & PID rating
PBG SA – Company listed on the Warsaw Stock Exchange
Shareholders structure (in votes)
Jerzy Wiśniewski52,36% Tomasz Woroch
3,79%
BZ WBK AIB AM5,32%
ING TFI 5,04%
remaining shareholders
33,49%
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IPO – issue price of PLN 32 per share (June 2004) Debut price on the WSE – PLN 35 (July 2nd 2004) SPO – issue price of PLN 92 per share (Jan 2006) Current market price – PLN 189 (September
29th2006)
PBG stock performance
on the WSE
Jerzy Wiśniewski, MBA – President of the Management Board, graduate of the Civil
Engineering Faculty of Politechnika Poznańska [Poznań University of Technology].
Małgorzata Wiśniewska, MBA – Vice-President of the Management Board, graduate of the
Civil Engineering Faculty of Politechnika Poznańska [Poznań University of Technology]. Post-
graduate studies in Public Relations at the Finance and Banking Faculty of Wyższa Szkoła
Biznesu [Business College] of Poznań.
Tomasz Woroch, MBA – Vice-President of the Management Board, graduate of the Social
Studies Faculty of Uniwersytet im. Adama Mickiewicza of Poznań [Poznań University].
Przemysław Szkudlarczyk, MBA – Vice-President of the Management Board, graduate of the
Building Machine and Vehicle Faculty of Politechnika Poznańska [Poznań University of
Technology].
Tomasz Tomczak – Vice-President of the Management Board, graduate of the Building
Machine and Vehicle Faculty of Politechnika Poznańska [Poznań University of Technology].
Mariusz Łożyński – Member of the Board, graduate of Politechnika Poznańska [Poznań
University of Technology], Civil Engineering Faculty
Managing Personnel
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Business Profile
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General execution of natural gas, crude oil and water installations in turn-key system
A. PRODUCTION
of
natural gas
and crude oil
B. TRANSMISSION
of
natural gas,
crude oil
and water
C. STORAGE
of natural gas, fuels and LNG
D. DISTRIBUTION
of natural gas
and water
E. ENVIRONMENTAL PROTECTION &
1. Water & sewage systems
2. Hydro construction
3. Renovations
Business Profile
A. Production of natural gas and crude oil Above-ground installations for crude oil and natural gas production Installations for liquefaction of natural gas (LNG) LPG separation stations Crude oil desulphurization units
B. Transmission of natural gas, crude oil and water Steel pipelines and structures for transmission of natural gas, crude oil and water,
including: steel water pipelines and collectors, crude oil pipelines and high-pressure gas pipelines Gas pressure-reduction and measuring stations, mixing plants, separation nodes, gas
compressor stations, etc.
LNG transport
C. Storage of natural gas, fuels and LNG Installations for storage and degasification of LNG Storage stations for LPG and C5+ Fuel depots Above-ground installations of underground gas storage facilities
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Business Profile
D. Distribution of natural gas and water Polyethylene pipelines and installations for distribution of natural gas and
water
Heat-generation infrastructure (boiler houses, heat generating plants, heat distribution centres)
Co-generation (combined heat and power generation from natural gas)
E. Environmental protection and sanitary systems Water and wastewater systems, including:
Water pipelines
Sewage systems
Wastewater and water treatment plants
Water intakes
Incinerating plants
Hydro-engineering structures
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Completed Projects
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• Natural Gas Plant in Kościan • Crude Oil Plant in Sławoborze
• LNG Installation • LPG Separation and Storage Station in Władysławowo
Projects
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• NRU Grodzisk Wlkp
• Stage of fall in Malczyce
• WWTP – Zabrze
• Fuel Depots - Orlen
Competition
Activity Domestic competition Foreign competition
Natural gas and crude oil plants Naftomontaz Krosno ABB
Gas and crude oil transmission systems
Naftomontaz Krosno, Gazobudowa Zabrze, Gazobudowa Poznan, Gazomontaz Wołomin, POL-AQUA
Underground gas storages - ABB, Sofregas
LNG installations Polimex Mostostal Tractebel, Linde, Costain, Air Products
Fuel depots Hydrobudowa 6 Warsaw, Polimex Mostostal Bilfinger Berger
Construction of sewage and water systems
Hydrobudowa 6 Warsaw, Hydrobudowa 9 Poznan, POL-AQUA, Mitex, Hydrobudowa Gdansk, Budimex, Polimex Mostostal
SKANSKA, STRABAG, Ferrovial
Renovation of sewage and water systems
- Per Aarslef, Diringer&Scheidel, Ludwig Pfeifer
Hydro-construction - SKANSKA, Bilfinger Berger, Ferrovial
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PBG Group
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ATG Sp. z o.o.
91,84%
Metorex Sp. z o.o.
99,98%
KRI Sp. z o.o.
92,24%
INFRA Sp. z o.o.
99,75%
PGS Sp. z o.o.
7,76%
15,0%99,56%
100%
Employment PBG Capital Group - 2104 (05.09.06)
HydrobudowaŚląsk S.A.
58,10%
Hydrobudowa-Włocławek S.A.
KB GAZ S.A.
100%
Structure of the PBG Group
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Company Interest held
Business profile
ATG Sp. z o.o 100% Trading, including supply of materials and equipment, comprehensive supplies to companies operating in the gas, oil, heat-generation, as well as water and wastewater industries, organisation of purchases for the PBG Group – optimisation of purchasing terms.
KB GAZ S.A. 100% Infrastructure investment, environmental protection, such as waterworks and wastewater systems, pumping stations and water treatment plants; low-, medium and high-pressure gas supply systems. It is a pioneer on the Polish market in terms of using directional drilling technologies for laying underground systems.
KRI Sp. z o.o. 99.9% Transmission, distribution of and trade in natural gas, generation and distribution of heat, Advisory services in the area of fund raising for and implementation of investment projects relating to the use of natural gas and generation of heat, as well as application of the LNG technology to the distribution of natural gas.
INFRA Sp. z o.o 99.75% Specialist services in the area of rehabilitation of water pipes and sewage systems
METOREX Sp. z o.o
99.6% Construction of water-pipe networks, sewage systems, heat and gas distribution networks,land melioration networks, hydro-engineering, wastewater treatment plants, road and square pavement.
PGS Sp. z o.o. 92.24% Specialist services in the area of road transport, mainly of LNG, road transport by specialist and universal vehicles, transport via pipelines, handling and storage of goods.
HYDROBUDOWA Włocławek S.A.
91.8% Comprehensive execution and servicing of investment projects in the area of civil engineering, hydro-engineering, as well as environmental protection, water supply and sewage systems.
HYDROBUDOWA ŚLĄSK S.A.
65,9% Execution of huge water supply and sewage systems and hydro-engineering
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PBG Group’s 2002–2006 Financial Highlights [PLN’000]
net profit
4 626
11 301
36947
47341
13 947
0
10 000
20 000
30 000
40 000
50 000
2002 2003 2004 2005 2006E
operating profit
9 18114 290
25 880
41331
05 000
10 00015 000
20 00025 000
30 00035 000
40 00045 000
2002 2003 2004 2005
Net margin
2,9%
6,3%
8,4%8,8%
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
2002 2003 2004 2005
sales
162 141 180 666 216 131
408539
702135
0
200 000
400 000
600 000
800 000
2002 2003 2004 2005 2006E
forecast
Amount [mPLN]
In year
2006
2007…
Backlog of orders
1506,2 760,
0 756,0
0
Revenue Structure 2002-2005 [PLN ‘000]
22 512 26 04250 572
149 738
33 09767 439
58 918
79 847
8 592
9 21726 414
65 758
0
982
5 018
52 547
47 655
39 661
42 437
19 418
15 428
10 365
728
12 623
30 13823 401
8 502
5 062
02 160
2 794
2 863
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000
2002 2003 2004 2005
Reve
nue
environmental protection transmissionindustrial infrastructure and buildings storageproduction natural gas distributiondistribution systems sales of w ater and w astew ater treatment
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Revenue structure 2005
21%
1%
5%
14%
17%
38%
1% 3%
Key Clients – Year 2005
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Client %
GOV. of the PROVINCE of OLSZTYN 13,62%
PKN ORLEN S.A. 13,29%
PGNiG S.A. 10,41%
PROCHEM S.A. 6,95%
MUNICIPAL WATER and SEWAGE COMPANY - SZCZECIN 4,82%
MUNICIPAL WATER and SEWAGE COMPANY - WARSZAWA 3,72%
GAZ-SYSTEM Ltd. 2,97%
MITEX S.A. 2,35%
MEGAGAZ S.A. 1,82%
CONTROL PROCESS S.A. 1,75%
Ministry of Defence - NATO 1,28%
Significant Running Contracts
Contract Signed Investor Contractor Value
Modernisation and extension of the Włocławek wastewater treatment plant
Sep 17, 2004
MPWiK (Municipal Water and Sewage Company) of Włocławek
Hydrobudowa Włocławek SA, PBG SA
EUR 16.49m
Górzyca crude oil plant Nov 8, 2004 PGNiG SA PBG SA, Thermo Design Engineering
EUR 16.9m
Refurbishment of the existing sewage network of the left-bank Szczecin
Dec 9, 2004 ZWiK of Szczecin (Municipal Water and Sewage Company of Szczecin)
PBG SA, DIRINGER&SCHEIDEL Rohrsanierung GmbH&Co KG
EUR 42.22m
Construction of the Grzechotki – Mamonowo road border crossing point
Dec 17, 2004
Governor of the Province of Olsztyn
PBG SA, Hydrobudowa Włocławek SA
EUR 13.42m
Modernisation of Storage Depot in Wrocław and Storage Depot in Nowa Sól
Feb 1, 2005 PKN ORLEN SA PBG SA PLN 45m
Construction of the ”SASKA KĘPA II” floating pumping station
Jun 28, 2005
MPWiK of Warsaw PBG SA, Hydrobudowa Włocławek SA
PLN 30.88m
Modernisation and extension of the fuel and lubricant inland depot in Cybowo
Jun 30, 2005
NATO Investments Unit PBG SA PLN 31.12m
Executing Biszcza natural gas plant Oct 31, 2005
PGNiG SA PBG SA, Control Process PLN 24.6m
Executing Wilga natural gas plant Oct 3, 2005 FX Energy Poland Sp. z o.o. PBG S.A. PLN 19.87m
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Significant Running Contracts
Contract Signed Investor Contractor Value
Executing of floating pumping station and wastewater collectors in Bydgoszcz
Dec 22, 2005
MWiK Bydgoszcz Hydrobudowa Włocławek SA, WPPU Alfa Sp. z o.o., Zakład Inst. Wod-Kan i C.O.
EUR 13.99m
Modernisation of sewage system in Gliwice
Nov 29, 2005
PWiK Gliwice Hydrobudowa Włocławek SA EUR 4,76m
Construction of barrage Malczyce on the Odra river
Feb 06, 2006
RZGW Wrocław PBG SA PLN 102,14 mln
Modernisation and extension of the fuel and lubricant inland depot in Gardeja
April 2006 NATO Investments Unit PBG SA PLN 20m
Construction of sewerage system and water supply system for right riverbank of Szczecin
June 2006 ZWiK of Szczecin (Municipal Water and Sewage Company of Szczecin)
KB GAZ S.A., Energopol-Szczecin S.A. and Wiemer & Trachte AG
EUR 22,5m
Constructing of the sewage system in Elbląg
June 2006 MPWiK Elbląg Hydrobudowa Włocławek SA, PBG, ABT, Pekum
EUR 15,7m
Construction of sewage system June 2006 MPWiK Wrocław Hydrobudowa Wlocławek S.A., PBG S.A.
EUR 22,8m
Modernisation of wastewater treatment plant, left bank of Poznan
June 2006 City of Poznan Hydrobudowa 9, PBG S.A. EUR 55m, (PBG 13,2)
Nitrogen Removal Unit Grodzisk Wlkp.
Sept.2006 PGNiG PBG S.A., Chart Ind., TDE PLN 120m
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Natural gas PGNiG Group’s published investments plans for 2006–2008 – ca PLN 8.75bn,
including ca PLN 3.6bn in exploration and production, ca PLN 2.35bn in transmission and ca PLN 2.45bn in distribution (source: PGNiG’s Issue Prospectus)
Increase in domestic natural gas production from 4.3bn m3 in 2005 up to 5.5bn m3 in 2008
Increase in the capacity of underground gas storage facilities from the current 1.5bn m3 to at least 5bn m3 – including Ist stage of extension of the Underground Storage in Wierzchowice from 0.5bn m3 up to 1.5bn m3 (PLN 0.4bn)
Diversification of natural gas supply sources, including plans providing for import of LNG beginning in 2010 (ca 5bn m³ per annum) – LNG onshore terminal (PLN 2bn) and adaptation of Polish gas transmission network (PLN 0.5bn)
Construction of pipeline interconnections between the Polish and foreign gas systems (Norway, Germany, Ukraine)
„Poland’s Energy Policy until 2025” – growing share of natural gas (as an environment friendly fuel) through its use in the commercial power sector and industry
Potential Market
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Crude oil Discovery of new deposits in Poland and the related plans for an increase in
production from 0.6m tonnes to 1.4m tonnes per annum over the next 3 years – Lubiatow-Miedzychod-Grotow (LMG) crude oil plant (PLN 0.43m)
Construction of the crude oil pipelines from the Ukraine to Poland (Adamów-Płock and Odessa-Brody)
Environmental protection and hydro-engineering EU funds for Poland – EUR 4.5bn in 2004–2006 assigned mainly for water and
wastewater installations New EU funds for 2007–2013 – EUR 56bn for Poland Funds assigned for flood protection improvement projects – increase in the
capacity of storage reservoirs in Poland from ca 2bn m³ to ca 3.3bn m³, reconstruction of ca 1,000 km of embankments and river engineering (ca 4,000 km) - „Programme for the ODRA River 2006” – estimated total cost of main investment projects exceeds EUR 0.52bn
Potential Market
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Fuel storage facilities NATO’s investments in Poland (2004-2007)total PLN 2bn, including PLN 0.7bn in
fuel storage depots; Extension of PKN ORLEN’s and Naftobazy’s fuel storage depots.
Foreign markets Extension of underground storages in Latvia and Hungary Increasing natural gas production in the Ukraine, modernisation and
reconstruction of gas transmission network LNG installations and natural gas plants in Norway Cooperation with Foreign Partners (Wavin, TD Williamson, Pall Corporation,
Thermo Design Engineering, Chart, Bergen Engineering, etc.);
Potential Market
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Significant Potential Contracts in 2006/07Contract Contract
awardBudget
Modernisation and extension of the fuel and lubricant inland depot in Cybowo October 2006
PLN 250m
LMG crude oil plant June 2007 PLN 430m
LNG plant in Norway November 2006
EUR 60m
Wastewater treatment installation „Czajka” in Warsaw March 2007 EUR 261m
Racibórz reservoir on the Odra river November 2007
PLN 650m
Modernization of a sewage system in Mysłowice Nov. 2006 EUR 58m
Sewage system modernization in Warsaw November 2006
EUR 6m
Modernization of the filters for the waterworks in Warsaw November 2006
EUR 56m
Underground Gas Storage in Wierzchowice June 2007 PLN 400m
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Competitive Advantages
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Financial capabilities – banking and insurance limits exceeding PLN 0.5bn
Execution capabilities – development through organic growth using EU subsidy
and acquisitions, commissioning works to companies from the PBG Group who
serve as subcontractors, thus allowing us to fully carry out contract terms and
strictly keep to deadlines
Narrow specialisation – delivery of specialised services in several areas:
natural gas, crude oil, water and investments in modern technologies; recruitment
and employment of highly educated workers
Project management – budget-driven management, extensive use of IT tools,
including integrated management systems, virtual document circulation, data
warehouse, analytical programs
Quality, effectiveness and modernity
PBG Group’s Development Strategy
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Increasing value through:
Strengthening on the construction market and high specialisation in executing transmission and distribution installations for natural gas, crude oil and water
Expansion in the area of specialised installations for natural gas and crude oil production and processing, as well as fuel depots for the army and the industrial sector;
Expansion in the area of specialised, sanitary and hydro-engineering systems (including design, construction and refurbishment);
Acquisition of contractor companies, especially companies with niche technologies;
Procurement of high-value contracts as the General Contractor;
Procurement of contracts on the foreign markets;
Implementation of new products and technologies.
Thank you for your attention
Contact information:
tel. (+4861) 665 17 00, 665 17 50fax. (+4861) 665 17 01,
PBG SAul. Skórzewska 35, Wysogotowo near Poznań
62-081 PrzeźmierowoPoland
www.pbg-sa.pl
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