Strategic objectives
JSW Group's strategy is based on five pillars:
The strategic objectives are defined on the basis of areas in which JSW Group conducts operating and investing activities. The company's strategy introduced another operating area - people and environment, which has become equally important as the other areas: finance, development, customers and internal processes. The Company's vision is a reflection of its values, from business values through to environmental aspects.
Objectives that result from strategic operating areas are being directly implemented through operating activities in each segment:
| JSW Group's strategic objective | Segment/area where the objective will be achieved | ||||
|---|---|---|---|---|---|
| Coal segment | Coke segment | Processing segment | Diversification | Support area | |
| Average EBITDA margin in 2020-2030 of at least 25%. | X | X | X | X | X |
| Development of resource base as regards coking coal through development investments related to accessing new deposits and mine levels. | X | ||||
| Increase in the share of coking coal production and sales, with stable and attractive quality parameters, to over 85% from 2021. | X | X | |||
| Revenue diversification: Average of 10% of revenue coming from sales of products not related to core business in 2020-2030 - Geographic diversification. | X | X | X | ||
| Safe JSW - further enhancement of our high safety standards. | X | X | X | X | |
| Effective JSW: Work intensity index of at least 4.5 running metres per thousand tonnes annually, Optimisation of cost structure and levels using innovative solutions, Effective use of coal derivatives and striving for energy self-sufficiency. | X | X | X | X | X |
| Learning organisation - knowledge management and continuous learning. | X | X | X | X | X |
| Reducing environmental impact. | X | X | X | X | X |
| Stable employer developing its employees' competences. | X | X | X | X | X |
| Flexible Organisation 4.0 - development through innovations. | X | X | X | X | X |
JSW Group's development plan defines the key assumptions with regard to directions and possibilities for development in the long term. Development processes are envisaged to be based mainly on developing the core business, without ruling out development based on the acquisition of attractive assets and entities as elements in potential diversification and business model evaluation.
JSW Group's investment programme encompasses investment projects for 2020-2030 worth in total approx. PLN 24.5 billion, with the highest priority given to projects focusing on:
- development of mining activities,
- modernisation and optimisation in coke segment,
- reaching energy self-sufficiency by developing new generation capacities based on products accompanying coal mining - methane, and coke production - coke oven gas,
- improving the Group's profitability and integrating various operating segments,
- implementing innovative technologies,
- improving efficiency in core business and support functions.
The highest priority is given to investment projects that offer the highest rates of return and flagship projects within the core business, which are of key importance to building JSW Group's competitive advantage and leading to the optimisation of operating costs.
JSW plans to incur approx. PLN 20.5 billion in investment expenditures in 2020-2030, which constitutes approx. 84% of the Group's total expenditures. Subsidiary JSW KOKS expects to spend approx. PLN 2.2 billion on investments. Development investments constitute 35% of JSW Group's planned CAPEX.
Chart. CAPEX PLN billion
Results achieved in 2021
By continuously optimising its production structure, the Company is improving the yield of coking coal. In 2021, JSW S.A. recorded an increase in the share of coking coal in overall output to nearly 80%, thus reducing the share of thermal coal. Nearly 77 000 running metres of walkways were developing, allowing proper access to longwalls. The work intensity index reached 5.6 running metres per 1000 tonnes.
Selected production indicators
Modernisation and optimisation in the coke segment
The coke segment constitutes JSW Group's second-largest operating area.
The investment program for the coke segment includes projects in the period 2020-2030 worth in total approx. PLN 2.2 billion, divided as follows:
- investments in the area of coke production,
- investments in the area of carbon-related products,
- investments in the area of energy,
- innovative projects and R&D projects,
- other investments.
Results achieved in 2021:
CAPEX in the coke segment reached approx. PLN 227 million, which constitutes around 13% of the overall expenditures for the entire JSW Group.
Strengthening our position as Europe's top producer of coke will be possible by achieving our strategic objectives, focused on the following areas:
- maximum use of coals produced by JSW Group's mines in the production of coke
- maximum and flexible use of coking plants' production capacities
- optimisation of technological processes
- energy independence
- greater synergies between the mining and coking areas
- product diversification by extending the processing chain
Coke production in 2021 reached 3 659 mt