The Strategy for 2020-2030 set new directions and undertakings, which support the JSW Group’s efforts to increase the shareholder value of the company and the entire Group. Strategic objectives have been set, which are parameterized in accordance with the current and forecast market standing of the company.

In accordance with the adopted Strategy, the Group’s mission is to strengthen its position as the leading producer and supplier of coking coal and coke in Europe in a manner that ensures growth in the Company’s value and taking into account Stakeholder expectations. The Group’s vision is to enjoy the status of a supplier of the strategic chemical raw material indispensable for the production of steel, which is the foundation for sustainable development and transformation towards the low-emission economy.

The JSW Group’s strategic goals for 2020-2030 are as follows:

• achieve the average EBITDA margin of at least 25% in 2020-2030;
• develop the coking coal resource base through development investments enabling the Group to open up new deposits and new mining levels;
• increase the percentage of coking coal with stable and desirable quality parameters to above 85% from 2021;
• safe JSW: further increase our high safety standards;
• efficient JSW: work intensity ratio at a level of at least 4.5 running meters per thousand ton per year, optimization of the structure and level of costs by applying innovative solutions and efficient use of hydrocarbons and strive to achieve energy self-sufficiency.

The supporting objectives will include:

• learning organization – knowledge management and continuous improvement;
• curtailing our impact on the environment;
• stable employer developing employee competences;
• flexible Organization 4.0: growth through innovation.

The key development plans will be based, among others, on:

• optimization efforts in the mining and coking area and activities improving integration between the two operating areas;
• ensuring energy self-sufficiency of JSW through the development of production capacities based on the Group’s own base of raw materials (methane, coke oven gas);
• implementation of the Quality Program: modeling production and deposit schedules, ongoing monitoring and supervision over the quality of the JSW Group’s products, introduction of innovative exploration techniques;
• solutions mitigating our impact on the natural environment will be implemented in all the activities pursued by the JSW Group. The strategy sets out the main directions of activities in the environmental protection area, including climate impact, carbon footprint and other emissions;
• implementation of innovative solutions.

Regarding the operational assumptions:

• in 2020-2030, coal production is planned to increase from about 14.8 million tons in 2019 to roughly 18 million tons in 2030. The strategy assumes that the output will be ultimately increased through investments in the development of new production levels and launching production in the Bzie Dębina area. The structure of the planned production level assumes an increase in the percentage of coking coal from 71% in 2019 to over 85% from 2021, while steam coal production levels are to decrease from 29% in 2019 to 12% in 2030;
• the average annual roadway excavation works in JSW in 2020-2030 should exceed 80 thousand running meters;
• during the term of the Strategy, JSW assumes an increase in efficiency (productivity) per employee, from roughly 700 tons to about 850 tons of coal per person in 2030, assuming the average annual headcount of approx. 21.4 thousand FTEs in 2020-2030. At the same time, the Strategy assumes that average headcount in the JSW Group will increase from the current 30 thousand FTEs to approx. 31 thousand FTSs by 2030;
• sustainable volume of coke production and sales at a stable level of approx. 3.5 million tons;

The Strategy for 2020-2030 envisages the JSW Group to incur capital expenditures in the estimated total amount of PLN 24.5 billion. Capital expenditures in the coal segment will represent approx. 84% of the JSW Group’s total capital expenditures.

The major objectives of the Company’s financing strategy include:

• ensuring a stable financing structure by achieving and maintaining at least 50% of the share of equity in the structure of equity and liabilities and covering the value of non-current assets with fixed capitals;
• taking actions to ensure the amount of financing which allows for maintaining continuity of operating and investing activity processes at the assumed levels.