Jastrzebska Spólka Weglowa Stock

Good morning, ladies and gentlemen. I'd like to welcome you to the earnings conference for Q1 2026. My name is Boguslaw Oleksy. I'm the acting CEO. I'm joined today by Jolanta Gruszka, Vice President; and Adam Rozmus, Vice President. If you allow me, we'll go ahead and give you a quick walk-through of our group and what's happened in Q1 of this year.

If we look at our figures, what we've achieved in Q1 versus Q4 2025, coal production is down by around 7% in terms of coke production, it's down by more than 11%. Our sales revenue is down quarter-on-quarter by 12%. It's slightly above PLN 2 billion in sales revenue. Our net result in Q1 is a loss of PLN 616 million. In comparison to Q4, this is a major swing or change because in Q4 2025, the net result was negative at more than PLN 3.3 billion. If we look at EBITDA, net of nonrecurring events, it was PLN 192 million with a negative sign, so it was minus compared to the previous quarter when it was nearly PLN 300 million in the red. This is an improvement. If we look at the average price of coking coal and coke in the most recent quarterly period, we see that the average price of coking coal has grown by more than 9%. If we look at coke, the price has grown by more than 4%. Our capital expenditures in turn in this period came in at PLN 803 million versus PLN 680 million in Q4, which is an incremental growth of 18%. What is our major objective here. We're talking about our mining cash cost. The MCC has fallen compared to Q4 by nearly 9%, and it came in at PLN 631 as opposed to PLN 692 in Q4. So this continues to be our major objective. That is to meet the expectations of the market by reducing our costs.

I want to show you one more graph that illustrates what we've done over the course of the last year. So if we compare Q1 2026 to Q1 2025 and not just the Q4 2025. So we can see that our coal production is up by 13%. Coke production is up by 7%. Sales revenue is down by 12%. The net result has improved. It's still in the red at EUR 616 million, but a year ago, we were at PLN 1.3 billion in the red. So if you look at EBITDA, we also saw improvement. So we were in the red at PLN 552 million last year in Q1 2025. And so this is, of course, negative EBITDA, and we've improved that to, let's say, EUR 192 million, which is also a negative figure. The average price of coking coal and coke have moved down by 3.2% if we talk about coking coal and more than 12%, if we look at coke. Our CapEx, capital expenditures, we're at a pretty similar level. So it's PLN 803 million in Q1, as I mentioned previously as opposed to PLN 826 million in Q1 2025. If we look at the mining cash cost, this is what, as I said previously, is the most important thing -- the most important metric. And the cost here has fallen by more than 24% from PLN 836 per tonne in Q1 2025 to PLN 631 at present in Q1 2026. So we can say the movement here is very desirable, and this is exactly what we had in mind to move that mining cash cost down.

Some 3 weeks ago, we presented to you at the annual earnings conference, we presented our restructuring efforts. Restructuring is a process. It's not something that transpires quickly. It needs some time to be implemented. Let me remind you of the areas which are the most important in the framework of our restructuring efforts. So it's the support of the state treasury, then our relationships with trade unions and our relations with financial institutions. So let me begin with the state treasury in this short period of time since the annual earnings conference. One important thing has transpired.

The law has been enacted on the system of development institutions, which will allow us to think about obtaining support from the Industrial Development Agency, ARP. And now we're working on obtaining a loan from the Industrial Development Agency, ARP. So we should be able to utilize this instrument to obtain that support. We've advised you some time now that the mining functioning law applies to us -- is applicable to us. And here, we want to utilize all of the instruments afforded by this law. It gives us the opportunity to reduce our mining cash cost and to restructure the headcount. So essentially, to downsize. And we're working at present on closing the deal with ARP when it comes to the sale of shares in the PBSz company and JZR company, so the renovation company, this process is underway. As I mentioned previously, a couple of weeks ago, we're also in the process of obtaining a deferral and installment payment of ZUS contributions here at JSW S.A., the mother company in JSW KOKS.

If we look at some of the issues related to the trade unions and staff, what's very important here, let me mention -- nothing major has happened since the most recent conference, but we have limitation of labor costs and limitation of employment guarantees. And so if we're talking about the bank institutions, this process is very dynamic. We're working together with them hand in hand on the remedial program, the remedy program in order to put together a new financing package. And this process should be wrapped up by 31 August of the current year. So -- all of this work takes time, it's a lengthy process. Our commitment and engagement are required and the company is working very intensely on these subjects because restructuring is a type of panaceum for what's happening on the coking coal and coke market and also having in mind to our cost position. So that would be it in terms of my preparatory comments.

And I'd like to ask Adam Rozmus now to say a few words about our operating activities.

So ladies and gentlemen, coal production in Q1 of this year topped 3.2 million tons compared to Q4 of last year. This is a decline of 7%. But if we look at the corresponding period of last year, we've increased coal production by more than 13%. What's important here is that we're continuing to increase the percentage of coking coal in our mix. And so you can see -- we've been able to reduce the quantum of steam coal by 90,000 tons. So we're focusing on coking coal. If we look at the corridor works, they're pretty much flat in Q1 of this year, it's 16.9 kilometers, so 16,900 meters, very similar to what we did last year in Q4 as well as in Q1.

What should be emphasized is that we have a change in the proportions -- so we're limiting the quantum of work done by external companies. So it's 1,200 meters lower in Q1 2026. And so we're using our own staff to a greater extent, and that's an increase of roughly 1,000 meters. So the number of active longwalls, this is not something that is -- has a direct impact on output. We have more than 30 longwalls located in different places. And so depending on how the deposit lays in the ground, -- so we have somewhere between 19 and 23 longwalls that are active. So we were working on setting up some longwalls. And if we talk about coke production, this is in parallel with extraction.

So I'll go ahead and give the floor now to Jolanta Gruszka, who is in charge of sales.

So as a matter of our tradition, we'll talk about market trends and what's happened in our sales. So let's begin with looking at steel production. In Q1 of this year, we had the CBAM tax implemented, and this is one of the protective mechanisms to protect the European steel market. In Q1, we can say that CBAM didn't produce any effects. So the production of steel was more or less flat, but it was down from the previous year. And so it did affect prices. And so steel prices for flat goods was up by 10%. And for rods, it was up by more than 3%.

If we look at global steel production, it's up in Q1 over the previous quarter by nearly 7%. With respect to Q1 of the previous year, it was down by 2.3%. And so if we look what's happening in the Middle East, this led to greater uncertainty and greater unpredictability or lack of predictability. So we have the CBAM implementation in the EU. And as of July, there should be a more rigorous system for, let's say, collaterals being put in place. And this means that we should have some conservative optimism and the EU countries are counting on some greater protection for the market, as I said at the previous conference. And so we see this being fleshed out or being borne out by firing up blast furnaces, which have been down for a while.

But we can say that what's happening in the middle sector -- Middle East could have an impact on the steel market, higher interest rates could mean that there's less usage of steel in the automotive industry, the construction industry, and there can be some disruptions in supply. And so we can say that 10% of aluminum production comes from the Middle East and also chemicals and plastics. If we think about coking coal, we saw quite a bit of volatility in Q1. In January, there was -- the disruptions in Australia and the supply led to some changes there. Then there were fears about mining damages and rail infrastructure or harbor infrastructure and as a result of supply restrictions. So Australian Premium Low Vol prices moved up above $250 per tonne at the end of January. American indices in the same period grew by a much smaller percentage.

So after the cyclone came to an end, then there was an expectation that production would be upped and the logistics barriers had a time-limited period. And so then prices fell for coking coal once those disruptions were overcome. And so at the end of March, the price was down to around $220 per tonne. Another factor affecting this market was the outbreak of war in Iran and the Strait of Hormuz. And so the knock-on impact was smaller here than in gas prices, but freight rates were up. Diesel fuel was more expensive, and that affects extraction costs, especially in strip mines. Steel prices moved up, especially in March. And so premium low vol were at the $234 in Q1. And so we saw quarter-on-quarter increase of prices by 70% for premium low vol and semi-soft prices were up by nearly 15% compared to the previous year. It was up by 26% for semi-soft. It was up by 24%.

Another area in this market, this is the coke market. So in Q1 of this year, we saw that there was an oversupply or a glut because of more Indonesian exports of coke. We talked about at the previous conference, and we also saw that demand was falling. According to McCloskey's report in Q1, Indonesia exported 2.5 million tons of coke, which is an increase of 89% over the previous -- corresponding period of the previous year.

So if we look at the global coke market, we also saw changes in how the Indonesian market is being protected. So there were import quotas in place last year, they have antidumping tariffs. And so Poland is not the object of these measures. But duties vary depending on the importing country. And so for Indonesia, so it's much lower for Indonesia as opposed to China. And so we have $48 per tonne. So as the demand for coke falls on the internal Chinese market, that means that Chinese coke became the least expensive product on the market.

And so if you look at the ratio of blast furnace coke in China as opposed to premium low vol, which is very important for coking plants. In the first quarter, it was at a record low level, and it was 0.82 to 1.01 -- and so -- and the average for the quarter was 0.92 in terms of that ratio. And so we can say that what was happening on the Chinese coke market was totally different. So quarter-on-quarter, it fell by 2.4%. That was the price for blast furnace coke as opposed to the previous year, it was 2.5%. And so we also see greater differences in terms of coke price movements between Europe and Asia. So according to McCloskey, the blast furnace coke price imported was up by more than 14% whereas last year it was 6.6% growth.

On the next slide, we'll show you the ratio of JSW product prices to the market prices. And if we look at the various ratios that affect our prices and what happened in the first quarter of 2026 versus Q4. And so you can say there's a difference of a little less than 15%. We're talking about the benchmark price, which is -- it's from October 2025 to February 2026. And then you have the July and November window for 2025. So if we're talking about external buyers in the benchmark period, -- so it fell from 97% to 93%. That's the price of JSW coking coal in relation to premium low vol prices. And so the coking coal price had a different -- varying impact on individual months because of FX rate volatility and what was happening with production.

If we look at coke in Q1. So we can say the increase was a little less than 7%, but the average for the relation of these prices. The blast furnace coke was roughly 105%. That was the relationship between our coke prices and the coke prices in ARR -- ARA ports. And if we look at steam coal price, quarter-on-quarter, it fell and it fell by 4.2%. But with respect to Q1 of last year, it was down by 14.7%. So with respect to our benchmark that we use, which is the PSCMI, it fell from 93% to 86%. That's the ratio.

On the next slide, we talk about the sales of coal produced in the JSW Group. So our revenue on the sale of coal to external customers it was PLN 1.16 billion, and it was down by 10.6% versus Q4. And this was driven by a lower volume of sales. So we also saw the price of this coal falling at the same time. We can say with respect to Q4, we had a price increase of 9.2% with a similar level of sales of coal between internal customers. So we also wanted to optimize our inventories. And so the inventories or the steam coal moved down by 11.3%. Now if we look at the summary of sales of coke produced in the JSW Group. So we had PLN 713 million, this was down by 23% compared to the previous quarter, and that was because we had sales volume down by 15%, while the average coke sales price was up by 4.2%.

And the final slide that I want to present to you pertains to inventories of coke produced in the group. So we saw coke inventory falling by 5.5%, while our coal inventory was up by nearly 28%. So steam coal has some -- inventories haven't changed. We have roughly 80,000 tons, very low. But if you look at the coking coal inventory, we have higher planned production and contracting for Q1 was done based on production forecast prepared at the end of the year. And so extraction was up above the forecast, especially in Q3, but there's a lot of volatility in Q4 in the market. So you had the cyclone in Australia, the prices moved up. And then there was a rapid correction. At the same time, American coal grades had a stable price level. In the same period or at the end of this period, we had the breakout or outbreak of war in iron, and this led to greater uncertainty. And that meant that there was quite a bit of measured response and conservatism by the buyers. And so they was a downplay their purchases.

And let's go on to the investments within the JSW Group. I'll begin by talking about our CapEx in the group. On a cash basis. And I'll compare Q1 2026 to Q4 2025. In Q1 (sic) [2026], we see that the CapEx is down, so down by 35%, and this is because we're reducing CapEx as a result of optimizing the operations within our group. But let's break down or look -- drill down into the results. And so I'll compare Q1 to Q4, we can say there was an increase of 18% within the coal segment. And this was a result of preparing new longwalls. And in Q1 of this year, we had to purchase 2 longwall shares and we have the mechanized shields and so CapEx was up for that.

And then to prepare -- to purchase transportation equipment as well and the shields, while at the same time, we were spending less on the vending machines, and this is because we're optimizing some of our contracts. If we look at the CapEx, we had some decline, for example, in construction and then the wash plants as well as expensable mine pits as well as expensable mining pits under IFRS 16. So we can say that within the Coke Group, JSW KOKS in Q1, it was down by PLN 18.3 million versus Q4, so that's roughly 1%. And with -- in terms of continued investments, we're modernizing coking battery #4 at the Przeworsk Coking Plant. And also in Radlin, we're working on the energy block with respect to the other group companies. We have a major decline in JZR in the IT company in PBSz. And so there was only increase of PLN 5.7 million for JSW Logistics.

So thank you very much. And so I'll go ahead and give the floor back to the CEO, Boguslaw.

So now I'd like to present briefly our financial highlights. with respect to the major fundamental parameters, and I'll talk about the contributing factors. If we look at sales revenue, Q1 revenue is down by more than 12% versus Q4. And if we talk about EBITDA net of nonrecurring events, so showing it on an adjusted basis, last quarter, we had negative PLN 299 million in Q1 of this year, it's still negative, but it's lower at PLN 192 million. So we do observe a positive trend, a positive change, but we're still not -- we're not in the black at a level that we consider to be desirable.

If we look at net working capital, unfortunately, it's still fairly negative, a pretty substantial level, PLN 4.8 billion. And this is an element linked to liquidity management. The net result in turn in Q4 was in the red at more than PLN 3.3 billion. But in Q1, we're able to reduce that negative figure to PLN 616 million. So now if we look at the bridge, what were the major driving -- drivers. We have had the impact exerted by coking coal price change and then also what happened with coke. So the biggest positive impact was exerted by the movement in coking coal prices. So this improved our sales revenue by PLN 87 million.

If we look at the negative drivers, we can say that steam coal sales volume led to revenue falling by more than PLN 200 million. And then the impact exerted by the coke sales volume was also negative at nearly PLN 122 million.

Here, one should note there was a positive impact exerted by the movement in coke prices. And as a result, the drop in revenue in Q1 versus Q4 -- all these factors led to this specific volume or this amount of sales revenue. Of course, on one side, we have revenue. On the other side, we have expenses by nature. Here, we see our costs were shaped, reduced by nearly 15%. The biggest drivers here, there are 3 major line items. I'll talk about them in just a moment. What were the major contributors. This is what I mentioned at the beginning of our presentation today, this is one of our major goals. This is something that we need to monitor. We need to react to what's happening in the marketplace, both when it comes to coking coal and coke.

And if you look at the cost change drivers, we can say we were able to reduce costs through restricting consumption of materials, and we're optimizing. This is what Mr. Rozmus has been doing, and this has generated a positive impact. We also have some optimization in terms of external price services. And so we had consumption as well as materials, and so external services were down by nearly PLN 124 million. And as Mr. Rozmus mentioned, this is an avenue that we will continue to follow, a direction we will continue to move in. This is another important element of our cost path. And the third very major cost driver.

Well, the arrangement or agreement we've entered into with the staff, trade unions means we've been able to reduce employee benefits in Q1 by PLN 241 million. So these costs can be shown jointly through the mining cash cost metric. So we've been able to drive down MCC substantially by nearly 9 percentage points. This is our major target, how we're reacting to the market situation. We don't have much to say or much impact over the revenue side of things. We have to react to what's happening on the marketplace. And -- so we had some MCC of nearly PLN 693 million in Q4. We've been able to slash that to PLN 631. That's something that's noticeable.

So costs contribute to that production, but volume has a minor impact. In fact, it actually raised that a little bit. If we look at the cash conversion cost in coke production, if we look at the difference between Q4 of last year and Q1 of this year, we were able to slash that by more than 28% -- so our cash conversion cost is down substantially. We moved down from PLN 380 per tonne more or less to PLN 274 per tonne of coke. But in just a moment, I'll show you the major drivers of this cost reduction. So we have to understand which elements are leading to that. If we look at the unit mining cash cost -- if we think about how we've been able to reduce that mining cash cost, it was external services, energy consumption and employee benefits.

That's what helped us in terms of expenses by nature. And there are also taxes and fees and the volume portion of the equation actually increased the mining cash cost by PLN 54. So as a result, we came out with this PLN 631 at the end of Q1 or in Q1. That's the cost per tonne. If we look at the cash conversion cost in [indiscernible] we moved from PLN 383 in the previous quarter, Q4 to PLN 274. How did we achieve that? We reduced the consumption of materials. This is net, of course, of the coal feedstock. There are also some fees reduced. So the emissions and external services, this is a trend in our operations as we restructure, we want to do as much as possible as many operations as we can do with our in-house staff, and we're utilizing external service providers to a lesser extent.

So if we think about EBITDA, these nonfinancial impairment losses, and these impairments are affecting the results as well as the EBITDA performance. And we also have the impact of the cost by nature. This is where we're able to achieve certain improvement. We've been able to reduce costs elsewhere, but this is -- these are some of the most important ones. And these 3 line items made the greatest impact. If we look at the volume and sales of coal, this reduced -- the impact of coal sales volume and price reduced EBITDA by PLN 136 million.

And in coke, that impact was PLN 93 million, so reduced by PLN 93 million. Now if we look at the individual segments and how they affected our EBITDA in the coal segment and the coke segment, -- we had the biggest change due to impairments. What usually happens, we have some one-offs in the quarter. They were pretty small, roughly PLN 46 million only. So that meant -- our EBITDA net of non-recurring events was negative at PLN 192 million. Now if we look at net working capital, this is something the company has been grappling with for many months. This is working capital and cash.

Unfortunately, here, the level of working capital -- net working capital, including the closed-end investment fund, we're negative here at a very satisfactory level. And so this is a level that we absolutely must improve. And then we have liquidity. This is what you see in our current reports and what the media is reporting. This is the major, let's say, pain point for the management team. And this is something that we're working on very intensively. So cash balance at the end of the year and the end of the quarter, well, at the end of the year and in Q4 was nearly PLN 800 million. Now at the end of March, it's at PLN 234 million.

So this is something -- this cash balance has fallen quite substantially. And that's why we're doing the restructuring efforts that we talked about in the first part of the presentation. So the fact that we're availing ourselves of a number of different instruments, and that's why this is a top priority for us. So we have, of course, the instruments available under the Mining Functioning Act. So the non-recurring cash severance payments and for employees in the wash plants or coal preparation plants as well as the underground miners. This is very important because thanks to that, the company is going to be able to reduce its costs by shedding employment and -- the second part is the support given to the restructuring efforts we're running. So these processes are lengthy in nature.

The results -- the short-term results have been discounted, but the long-term impacts of restructuring headcount of putting our operations together at a certain run rate and the organizational changes we're making in JSW, the company itself, as well as across the group. So we need some support to do that, and that's why we're thinking about that loan from the Industrial Restructuring Agency, ARP, and that's why we're working on that at this time to have that support for this process.

And so I think this is the same sort of summary of everything that 3 of us have tried to convey to you today. You've got all the other information in the financial statements we have published. So we'd like to thank you for your attention in terms of being able to present to you the major elements. We believe that quarter-on-quarter, we're going to be able to show you better and better results, announce better and better results. So as a result, I would propose now that we move on to our Q&A session.

So there are questions that were posed. Let's go ahead and field those questions. So thank you very much. Ladies and gentlemen, I'll go ahead and read the questions that have come into the company.

By how many kilometers is the plan for corridor works understated in 2026 compared to the needs of the company, which wants to produce 13.5 million tonnes of coal. To what extent will this reduce your costs in 2026?

So the planned run rate or production quantum in 2026 is 13.3 million tonnes. So when we talk about optimizing the corridor works planned to be done, but to do that, we had to verify the periods of tunneling, and we wanted to push back to a later time some of this work. However, the fundamental criteria here is to ensure that we have walls, longwalls where we can mine. So we don't want to consume our own galleries.

We have to do preparatory works. We have the preparatory plan. We have to do these corridor works. And so we're within the band of good mining practice. So, I would say that limiting the corridor works this year will not affect our run rate. Thank you very much.

Is the PLN 2 billion CapEx for the mining segment sufficient to maintain a production volume of 13.5 million tonnes per annum? If not, to what extent is it understated versus the annual investment needs?

Once again, the limited CapEx has been thought through at a cogent level. We're pushing back some of the investments. And so we're making these time shifts. This will not lead to a curtailment in terms of our run rate. So we sustain our plan for production this year at 13.3 million tonnes.

What is the management team's idea of what you're going to do with JSW KOKS? Do you want to spin it off or sell it to the industrial Restructuring Agency? Or would you do restructuring within the JSW Group?

If you allow me, I'd like to say a few words about that subject. So for many months, the management team has been working on a variety of scenarios in terms of how JSW KOKS is going to operate. The results generated by this segment are not satisfactory. What's worse, because of the market situation, we don't see fundamental changes on the revenue side of this segment. So these scenarios call for us to optimize costs of this entity of this segment, let me put it that way.

So we're eyeballing these scenarios on a long-term basis, having in mind what's happening in the marketplace this is what Jolanta Gruszka, Vice President of Sales said. The market is somehow destabilized in this segment of our business. It's -- when I say destabilized, I mean there's a lot of volatility there.

It's hard to predict what's going to happen. So we have to be very deliberate in terms of defining what this segment should produce, what results should it perform and also having in mind technological changes in the steel milling industry. What's critical here for us is to maintain a certain level of operational stability, and we want to maximize the value for the overall group.

We're considering a variety of options. We haven't made final decisions on them.

The question includes a scenario or proposal to spin something off or selling it to ARP. It seems to me that the option to sell is not being considered by us as opposed to other methods of operation in JSW KOKS. I think at this point in time, this is what I can say about the coking segment. Thank you very much.

The next question. Does the Management Board believe that the current cost side initiatives where the state treasury is paying for 4,200 people to leave the company, will be sufficient for the group to generate cash in 2028 when the 2-year agreement or memorandum of understanding comes to an end with the trade unions. If not, what additional savings initiatives will be taken by the group?

And what level of savings should we expect on top of the ones -- the savings that you received from this agreement with the trade unions and the agreement with the state treasury?

Let me continue my response here. When we think about the cost side, as I've mentioned, this is our major challenge, having in mind what's happening in the marketplace. And here, we're going to have to optimize the cost side of our operations. So the cost side initiatives -- do they only pertain to the law on the functioning of the mining sector? Well, that's not the totality of our efforts. So from the context of this question, it suggests that the State Treasury is paying only JSW for this attrition. Well, it's applicable to the entire mining sector. JSW is only one of the beneficiaries, so we want to tap into these opportunities. So we assume that within the framework of the current year, our savings should exceed PLN 400 million.

In the latter half of the question, there's a question about other savings initiatives that could enhance the cost side. And as I previously said when we talked about the results themselves, these initiatives have been launched already. They're linked to slashing the costs of external services, the operation of mines.

That's why we've signaled certain projects to centralize functions in two areas. This is something that's happening. It's underway. It's in progress. These processes are strictly linked to our employees, our staff. These aren't things that happen overnight. As I said, the work is in progress. And as a result, we should be successful. That's what our analysis suggests in any case. Today, I cannot say that we've exhausted the list of initiatives. We continue to look for all possible savings in order to be able to reckon with the marketplace and function well. Thank you.

Does the Management Board expect that non-recurring cash severance payments and mining leaves will begin in May of 2026? Or do you think this will be delayed by a month? From which month will our OpEx incorporate the savings from the attrition of 4,200 employees?

Let me continue here since I started the subject -- discussing the subject, what we're assuming that this process will commence in May. The impact or the knock-on effects of this process will start to show up in May. If we think about the full-blown impact as we have broken this down into two stages, well, the knock-on impacts will be disclosed gradually as people take these mining leaves.

The company is well prepared to run this process, contrary to what some people may think or what it seems to be the case. There are a number of preparatory activities that have been prepared in terms of accommodating mining leaves. So those persons who want to utilize these mining leaves, we have to check them. We have to vet them in terms of safety. We're talking about thousands of people in JSW and other mining groups, mining companies. So we'll kick that process off in May. And then gradually or steadily, we will turn over or provide cash severance payments to these people as well as offer them the mining leave.

The next question concerns a similar subject. How many employees thus far have elected to utilize these safety net instruments? Can you present as a company, the schedule for changes in headcount for the upcoming years to have a reduction of 4,248 people by 2031?

So we have submitted an application to the Ministry of Energy. And this application pertains to that number of employees, 4,248 people. So if you're asking about the number of applications, I can say that the company is receiving them day-to-day. So one of the testers for this process.

Well, we did some initial research, what would be...

We tried to pull to find out what would be the acceptance of the employees. That was just a test. Now we're preparing the documents for the mining leave as well as the cash severance payments. So when we talk about a schedule, a specific schedule, at present, we have two rounds that are planned for employee attrition. We should also be aware of the fact that some employees will want to utilize mining leaves. But in terms of our efficiency, mining efficiency and certainty and above all, and I want to highlight this subject and Adam Rozmus has highlighted this, safety is very -- a pillar is very important for us.

So we'll have to filter through that list of people who file these applications. We want to make sure that this will not exert a negative impact, adverse impact on our ability to operate. So the work, especially we talk about mining leave, well, this work is underway. In the near future, we should have some pretty precise schedules defined in terms of how these persons will be furloughed. As I said previously, our assumption is that this year, the all-in impact should be around PLN 460 million. So what's important here is to run this process in a streamlined fashion without undue delay because every additional month would represent money we can save.

So the number of people, let's say, roughly 4,300 employees, does this apply only to JSW or the whole group? If it applies to the whole group, how many people will be in the individual big companies, JSW S.A., JSW KOKS and JSW SIG?

Well, that number, that quantum comes directly from the act on the functioning of the mining sector. And that law speaks or names the entities that can utilize those instruments. So it's not possible under this law for employees of other companies to participate the sole beneficiary of these instruments. Well, the employees and the company, it's only the employees of JSW S.A. that can participate can benefit from that law. So the expectation that employees of other companies could participate is not based in law. So it's unwarranted because the law doesn't allow or doesn't permit that to take place. Thank you very much.

And this year's run rate is 13.3 million tonnes. Does the company sustain its mid-term plan of 14 million in 2027, 14.5 million tonnes of coal in '28, '29 and roughly 15 million tonnes starting in 2030. Do you sustain this approach?

So at the previous conference, when we summed up 2025, we talked about the need to update our strategic goal, strategic document, strategy document. So we started the work to update our goals for the overall group.

One of the big elements is the restructuring program. That's something that's being done. So the restructuring program based on what Boguslaw Oleksy talked about, we have this attrition or downsizing. So we need to be able to estimate the possible run rate over the upcoming years. So thank you very much.

Thank you very much.

So that's it. If there are no other questions, once again, I would like to thank you very cordially for your participation and attendance, and we'll see you and hear from you during the next conference. Thank you very much.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen. My name is Boguslaw Oleksy. I am the CEO of JSW. We would like to share and present the results of the JSW Group for 2025 today. I'm joined by Jolanta Gruszka and Adam Rozmus. We want to walk you through the results. So we'll go ahead and kick off at this time.

Ladies and gentlemen, 2025 was a special and challenging year for us. The company began grappling with the financial position, financial situation. So these drivers affecting the situation also affected the results of our group. If we look at coal production, we produced more than 13 million tons of coal. This was up by more than 6% compared to the previous year. Coke production was also higher. It was above the threshold in 2024 by nearly 3%. Sales revenue because of the prices commanded in 2025, unfortunately, were down with respect to what was seen in 2024.

The net result we generated is better than in the previous year. However, we just reduced the loss. We have our big ambitions. We'll talk about later. EBITDA in 2025 was PLN 1.696 billion, and it was negative. And with respect to the previous year, it was at a much lower level. The average price of coking coal and coke, which in fact determine or drive our sales revenues had fallen quite substantially. Jolanta Gruszka will discuss that in detail. So I'll refrain from making any remarks right now. But the decline was in excess of 20% in both cases, so very substantial.

If we look at CapEx, in 2025, we curtailed the CapEx by more than PLN 1 billion with respect to the previous year. And of course, the financial position had an impact there. If in turn, we look at the mining cash cost, we achieved the first effects in terms of reducing the MCC, mining cash cost, which is the mining cash cost, the cost and cash it takes to mine a tonne of coal.

And now what is our biggest challenge, that's the business restructuring of the group. This is something we're engaged in running right now. We have several areas we've identified or flagged where we're running this restructuring. This process is highly complicated, multifaceted. The main pillar is operational restructuring. It is starting to produce the first fruits, first effects. But this is a very widespread program. And as we see from experience until now, it requires the support of the government. And ultimately, we anticipate support from the European Union.

We have to build a very sensible program, restructuring program that will be clear to our internal and external stakeholders. That's why this challenge is material from our point of view, and it calls upon us to communicate very clearly. What we've sketched out in the presentation are the 3 areas. So we have external and internal areas. So we have the participation of the trade unions and the actions that we're taking within the group itself. If we look at the state treasury in turn, JSW is now subject to the act on the functioning or operation of the hard coal mining sector. And this statute or this law enables us to utilize or take advantage of certain instruments, so safety net instruments for employees. I will -- we will address that a little bit later in the course of today's presentation. This is a very important element which gives us hope in terms of reducing or cutting expenses.

The second area, that support from the Industrial Development Agency. This agency has been designated as the entity that will be capable of providing assistance to companies undergoing troubles or turmoil. So the regulations have been revamped in terms of the rules for the operation of that agency. And this should enable us to utilize a variety of instruments to buttress our operations. We have also, in the recent period, entered into some sales and purchase transactions where basically we would sell 2 subsidiaries to the Industrial Development Agency. So this is the PBSz or PBSz and JZR. These transactions have not yet been completed, but the initial effects have been achieved.

The next very important component of our restructuring plan is a deferral or installment plan for our social insurance contributions, and that applies to JSW and JSW KOKS. As I said, this is a very important role of the state treasury to play here. If we look at the social party, so the trade unions, this is not something that can be overestimated. So jointly with the representatives of our employees, we managed to agree on 2 important vital issues. One is to shorten -- the employment guarantees. And the second thing is to reduce the labor costs in JSW.

This was preceded by negotiations, a large number of meetings with the trade unions, social party, and we ultimately achieved the outcome of suspending employment guarantees for administrative employees from the Management Board office and administrative employees. And so it seems that this is a very important memorandum of agreement, giving us the ability to do a more profound restructuring on the cost side.

I would emphasize here that the role played by the trade unions, the social party is incredibly important. If we look at the cost side of things, if we look at labor or payroll costs, so we've agreed with the trade unions that certain elements would be suspended, certain components would be suspended. And this should make it easier for us to restructuring the financing of the group over the next 2 years. And this should, in fact, form the basis for doing what we have in front of us, which is to repair the financial situation of our company.

So if we look at the overall group, our group consists of 15-some-odd companies. And this -- they also have to go through restructuring. We have to reconfigure the composition of the group. This is something that's happening. As I said, we've divested or sold 2 of our companies. The other companies are undergoing analysis. Up until now, these companies were support companies for our core business. Nevertheless, we're continuing to analyze the needs, the magnitude of their operations. We're reducing the costs of the structures in these entities, and these are things that are happening.

The second area is the need -- it's not so much the financial situation, but as a matter of looking through our business model and our needs, we want to sell off assets, noncore assets. So in the near future, we will clean up our assets and dispense with -- get rid of some assets as well. What's another very equally important area is linked to financial institutions. In the recent period, we entered into an annex to the consortium financing agreement. So we had very intense negotiations in this period. And as a result, we have suspended a number of issues linked to the contract until 31 August. And in this period, in terms of when these covenants are suspended, this should be filled in with the restructuring plan, which we will agree upon with the financial institutions as well as the social part of the trade unions. And what's even more important than we have to implement that. We have to execute that plan.

The second area, the company is looking for external financing. And here, the work is underway, for several months there was some turmoil as a result of the fact that we didn't have agreements in place with the trade unions. But the company is talking about those subjects and is striving to obtain financing that would be used for the stabilization of finances and to enable us to go through the restructuring process because as we know, the most important thing is to have this money and run this process reasonably and effectively. So for that period, we have to have the proper financial backing.

Having in mind what I've said, I would now like to move on to the strategy. But as you've heard, having regard for what's happening in the group right now, the company right now and the processes that we're running, our strategic objectives that have been identified some 4 years ago are being modified, tweaked. And that's why we've launched work to update the strategic objectives of the group. One of the big elements in this process is the restructuring program itself, which we are planning, we're preparing. This will pertain to the overall group, and it would be operationalized at the level of the various entities.

We want to redefine materially our objectives. We need to align our business because the time when the previous strategy was prepared, this was more of a time of prosperity. That time has come to an end. And so we have to redefine our objectives. This needs to be done. No doubts whatsoever about that. So if we take a look at what has been done in terms of executing the strategy up until now, what we've achieved, unfortunately, having in mind what transpired with the finance of the company, what happened on the marketplace for our products. As we can see, both with respect to the EBITDA margin, stability of the financing structures or costs, we have not achieved the intended objectives.

Those goals were set up for the period from 2022 to 2030. But having in mind the current market context, they would not be satisfactory to us at present. So if we look at safety, the mining industry continues to grapple with risks, especially in JSW when we think about the set of hazards we face. And so our ratios continue to be a challenge. So at the level of the Management Board, we're saying safety above all with respect to the business that we're running.

What we have improved substantially, that's reducing the carbon footprint. This is something that was done with respect to the methane utilization program. We continue to pursue it. And Mr. Rozmus will surely say a few words about that because that's an important area for us. So the carbon footprint as well as reducing our energy costs. Both of those facets are vital.

If we look at coking coal production in our mix, it's insufficient, but the positive or the trend is positive. The Management Board took up the challenge to reduce the production of coal, that's not interesting to us in terms of the price or the quality. And that's why our analysis about which mines should be the leaders where it's worthwhile to invest in them is what I have in mind. This will be linked to the product and price-related limitations or constraints.

If we think about production of coal and coke, at the beginning of the presentation we had a few figures given. But in terms of implementing the strategic objectives from 2022, we are far away from the objective. This is an area we will redefine because the market is evolving, and we have to customize or adapt ourselves to the market and not the other way around. We are fully abreast. And Jolanta Gruszka will show us the fuller context of the market.

So in terms of coke, so the metallurgical industry is the customer and profound analysis show that we have to redefine our goals and the product quality is better than we had initially posited. But having in mind the commercial contracts we have, this is not quite the level we would like to have or reach. We need to weigh that the mining sector has an attribute that geology can play tricks on you. And so sometimes it's difficult to define the qualitative factor in a precise manner because as I said, in geology, you can encounter everything, better conditions, worse conditions and diversification of revenue. This is something we're doing.

But when we think about revenue diversification, we're thinking about noncore operations as well. We're considering some disinvestments or deinvestments, divestments. So that means these parameters will also need to be redefined. So those are the fundamental issues linked to executing our strategic objectives. So in the near future, we will update these objectives, make sure that we put up the signposts in the right way. So the strategic avenues or directions of activity would be then aligned to the current market situation and what the market actually anticipates because our strategy covers or spans a period of several years into the future.

I think that would be more or less it in terms of some preliminary remarks. Now we can drill down into some of the operational results. And we'll show you in detail what our achievements were in the previous year. Ladies and gentlemen, in terms of our ongoing operations, we undertook certain optimization efforts with respect to coal production. So I hope these slides will show that we've embraced the right directions. And as a result, that will drive up extraction or output.

So quarter-on-quarter, in Q4 2025 versus Q3 2025, we were able to increase coal production by 5.2%. And so if we look year-on-year 2025 versus 2024, we were able to grow by 6.2%. So it's more than 750,000 tons of coal. So it's volume. But at the same time, we're consistently executing our quality parameters. So one thing that you can see that we've increased by 10% the production of coking coal. But steam coal, we have limited that quantum, and we're focusing on coking coal with the highest possible quality parameters.

And then if we look at corridor works, so we have clearly reduced those numbers in 2025 versus 2024. And this is something we're doing as a matter of purpose. So we had put in place certain conscious decisions in order to have places to mine. So we had to reduce the amount of quarter works, but we had done the initial preparatory work in previous years, and that's why it was possible. So we're down by 9.5%. So we had done in previous years more than 70,000 meters. And so we've been able to reduce that to below 70,000.

So the number of production lines, let's put it that way, it's smaller than the number of active longwalls, but this is a result of decisions made to focus our extraction efforts on longwalls that are longer. And that means we don't need as many quarter works to do that. And at the same time, it's -- we have -- we've decreased that by nearly 8% from 2024 to 2025 in terms of the active longwalls. So that's for improving production. If we look at coke production from Q3 to Q4, it was down slightly, but year-on-year it was up at 3%.

And if we move on to the market environment, I'll give the floor now to Jolanta Gruszka to walk us through what was happening in the market.

So let's begin with an overview of events that affected coking coal and coke. So we saw economic slowdown and geopolitical softness, as we mentioned in our results communication. The market where our company operates, unfortunately, was a buyer's market. So softer internal demand in [ Cheni ] because of the crisis in the construction sector meant that the top quality hard coking coal, so premium low vol well, the price was below $200. It wasn't until the end of the year that we saw an upward price adjustment or correction.

There were major differences in terms of prices in Australian ports and the prices of products delivered to China. And so people, the traders were selling on other markets, and that had a downward impact on prices. If we look at coke, last year, we saw oversupply or glut, and that was because of the product coming on board from Indonesia. We talked about that many times. And so the demand for coke was also down at the same time. And then we had transport of coke. Well, it was down by some 15% it fell to 27 million tonnes. And in the 27 million tonnes, we can say that Indonesia has delivered more than 6 million of that 27 million. So Indonesia has increased its exports 4x over 2023, and this company is now -- or country is now #2 amongst the coke exporters. So we, as Poland have lost our #2 position, and we're now #3 in terms of coke exporting.

In 2025 versus the previous year, the Indonesian coke exports grew twice or doubled to more than 1 million tonnes. And so it's -- most of the import from abroad in Europe is coming from Indonesia because the restrictions applied to India. So the European market is not protected in any way. So it's worth mentioning that the fact that production utilization of coke is at a stable level, around 30 million tonnes. And as opposed to coking coal, the European Union doesn't have to be dependent upon overseas imports of coke.

What also is important that glut meant we had CSR of like 68, 62, so premium low. So we can say that the prices were at a low level. So there was a range of 0.98 to 108. And so the average ratio was 1.13. And that means that coke cannot generate a positive financial return with such a low ratio between coking coal prices and coke prices.

The next slide, there we go. Now it's clicked over. Here we want to show you the major sales markets for JSW Group. We have emphasized many times that we have long-term stable contracts with clients from Central and Eastern Europe. And we can show you that here on the graph that into Poland and Austria, Czech Republic and elsewhere and then Ukraine. So if we look at the Coke segment, 40% of our revenue comes from sales outside of the European Union, primarily countries not belonging to the European Union, but in Europe, so Serbia and Ukraine. And then we have the Indian market.

We talked about the presentation and the strategy. We see higher sales of coke to non-EU markets, but that's a result of the shrinkage of the market in the European Union. But at the same time, it's a matter of diversifying our overseas markets and thinking about the selling of the coking coal produced in JSW mines. So primarily steel mills are buying from us. Then you also have iron manufacturers, nonferrous metal mills, carbide producers. You also have sugar plants. These type of entities are purchasing coke from us.

The next slide is one of our traditional slides. We want to show you the fundamental market trends over the most recent periods. When we talk about steel, the global steel market was driven by 2 major factors. Well, this is a growing protectionism of the market. This is something that we flagged multiple times. In 2025, the United States added steel tariffs. Basically, they reorganized the global market and had a major impact on the European steel industry. So after those tariffs were added on imported steel, so they lost a portion of the market. But at the same time, EU started to receive cheaper steel from other countries that couldn't access the U.S. any longer, and they were looking for alternative markets.

The second factor was growing steel exports from China. Estimates suggest that it grew by 9% last year over the previous year. According to the data produced by -- or developed by the World Steel Association, there was a decline in EU of 2.6%, 226 million tonnes. We're talking about a decline year-on-year. In 2025, according to EUROFER, the imports grew by 8%, but the exports from the EU fell by more than 11%. In Q4 of last year, as we're waiting for the situation to improve, having in mind the planned implementations, well, the production grew by 8.2% over the Q4 of the previous -- in Q4 over Q3 of the previous year. So global steel production overall, so it was more than 1 billion tonnes, but it was down by 2%. It was 1.8 billion tonnes, so 1,880 million tonnes.

So I want to show you some of these figures to show you the scale of the largest players. So 900-some-odd million tonnes. And even so, the production was down by more than 4% over the previous year. So steel production in Chinese is 52% of global production. The second major producer of steel is India, and that's the only place in the world that has seen higher steel production, and it was 10.4% growth year-on-year. And so it's 165 million tonnes of production in India.

If we look at steel prices, the average price of HRC fell by 4.6% compared to the average for the previous year. But in Q4, waiting for the import restrictions, prices grew by some 7% versus Q3 of the previous year. If we look at the average price for rods last year, it was down by 1.7% compared to what we saw in 2024. But for this segment of the market, there was no increases. Prices fell by 4% with respect to Q3 2025.

So if we look at coking coal prices, the factors affecting the market, I've already discussed, let me sum up the prices. Australian coking coal in 2025 premium low volume, so it's $178. So it was down by 21.7% with respect to the average in 2024. So it's $188 in Q4 as opposed to Q3, it was up by 9.1%. The average price for semisoft last year was $116, and this was also lower. So it was down by some 19.4%. That was for semisoft.

In Q4, the semisoft prices grew up by 9.1% in Q4 versus Q3. I think it's worthwhile to mention that in 2025, the semi-soft price grew with respect to premium low vol. So it's moving up from like 62% to 65%. So coke prices, Chinese coke prices based on FOB, $64, $67, $62. So it was $100-some-odd, and it was down by $212. So it's down by 24.6% compared to 2024.

In Q4, however, the average price was up by 9% versus Q3 of the previous year. As we've emphasized multiple times, coke prices are usually higher in Europe than in China. So blast furnace coke imported to Europe with CSR of around $68, 63, having in mind the ARA port deliveries. So $243. Unfortunately, prices saw a downward trend, and they were down by 24% in 2025 over 2024. In Q4, we saw an increase in the blast furnace coke quotes or prices in the ARR ports, so by 6.7% to $242.

On the next page, we show you the ratio of prices for JSW products versus market prices in a given quarter. So this is the average from July to November. So in Q4, we had an increase in the benchmark price over Q3. So that was an increase of more than 2%. But if you look at the average sales price to external buyers in the benchmark period, we didn't see any change. And so that ratio was 97%. If we look at coke, we saw the benchmark price falling in Q4. We're talking the blast furnace coke prices based on CIF to the ARA ports. Once again, having in mind the prices in Q3, so it was more than 6% difference. But if we look at all the product ranges within coke, so it was 107%.

So steam coal prices, if we look at the energy price and the sales to power plants, this was down by 2.7% with respect to the previous quarter, but the price achieved for steam coal in Q4 was up by 8.8% over -- in Q4 over Q3, which means that our ratio of our prices to PSCMI, we were able to bump that up to 93% in Q4 as a result of that price movement.

Then if we look at the sales of coal produced in the group, here, I can say the sales of coal to external customers in Q4, it was PLN 1.3 billion, so it was up by 2.8% over Q3. So we had higher sales volumes, up by 11.4%. And then we also had higher prices. So those prices grew by 1.7% and steam coal prices moved up by 8.8% across the year, even though we sold more. And so the volume was up by 21%, but the revenue was down by 12.8%. And so when we had in 2024 -- well, we had the PLN 5.16 billion in 2025. And so the average selling price was down by 23.7% and for coking coal, and it was down by 34% for steam coal across the year. So that's -- those were sales to external customers. But the sales of coal to internal customers to our plants, we took in mind the optimization of, let's say, inventories of coking coal.

The next slide talks about the sales of coke and the sales of coke and hydrocarbons. So we had PLN 969 million in sales. So this was up by 16% over Q3 because of the volume increase, but the average price fell, however, by 3.7%. Across the year, the revenue in the overall coke segment was PLN 3.5 billion. With respect to '24, the overall revenue fell by 24.3%. And the main driver was the decrease in prices, and that was a price decrease of 25.6%, whereas the volume was down by 2%.

And so the last slide from our market overview is to talk about our inventories. At the end of Q4 2025, we had lower inventories of coal as well as coke. So if we talk about coal, we reduced stocks or inventories by more than 21%. In terms of coke, we reduced that by more than 22%. And so coke then later was up by 7%, coking coal was up. So that would be it more or less in terms of my overview of what happened in sales.

So ladies and gentlemen, we can talk about now the investments in the JSW Group. In 2025, we were primarily thinking about savings, to reduce capital expenditures. Of course, these limitations didn't pertain to safety, and I would confirm that on behalf of the entire management team. So we wanted to improve working conditions and safety. We want to have new, let's say, longwalls opened and new areas opened up. And the next thing that's worth mentioning is the limitations of methane emissions.

We continue to pursue the methane emissions reduction program. So we've gotten down by -- we're now down by 24% compared to 2018. So we're on a good path. So we're reducing the amount of methane directly in the rock mass itself, and that's making it a safer workplace. And so we're reducing emissions of CO2. As a result, the second thing is the fact that we're running investments to utilize economically methane. And so today, ladies and gentlemen, some 15-odd percent of the energy in JSW, which is an energy-intensive business, we're able to produce ourselves, utilizing electricity, utilizing the methane that we capture.

So as part of our discussion of these slides, we can look at the capital expenditures in the group on a quarter-on-quarter base. We can say that CapEx is down by 11.8%. Year-on-year, we're down by 25.2%. So we've really scaled back investments, CapEx, and that applies to the coking coal or the coal segment as well as the coke segment and other segment. So I'll focus on JSW itself. So we have CapEx down by more than 23.8% year-on-year, and that's in terms of our investments for property, plant and equipment, expensable mining pits, outfitting expenditures and then the IFRS sort of depreciation and amortization. This is in line with reducing the number of active longwalls. And so we would concentrate our mining activities on certain sections.

So if we look about the capital expenditures for KOKS, so we have a slight increase because of continued investments, but year-on-year we're down by some 47% almost in terms of CapEx in KOKS. So there are certain investments that are being continued. In coke, we want to ramp up the investment in the power unit in Radlin CHP plant and then we're modernizing coking battery #4. I would mention that all the decisions about curtailing investments in the group stem from the need and two is that we have a very well-written plan in that area. Thank you very much.

So ladies and gentlemen, I will try now to show you the financial side of the information we've delivered to you so far. So this is a very precise and extensive information. So if we look at sales revenues, as I mentioned at the outset, the revenue in 2025 versus 2024 did diminish by nearly 17%. That is a major swing, major loss in terms of sales revenue. In just a moment I'll provide some more details on that. If we look at EBITDA net of nonrecurring events at the end of 2025, it was nearly PLN 1.7 billion. That's a negative EBITDA, whereas previously we had a positive figure in 2024 of nearly PLN 400 million. If we include those nonrecurring events, then the EBITDA in 2024 was negative at PLN 6.5 billion, whereas in 2025, the EBITDA was PLN 4.988 billion.

So working capital, net working capital, including the closed-end investment fund, at the end of the year we were at minus PLN 4 billion as opposed to the initial or the starting point at the end of December 2024 of PLN 2.5 billion. Well, net working capital without including the fund was down by more than PLN 800 million. So the net financial result, as I said at the outset, we had a slightly better result in 2025 than in 2024. This is not our ambition to be here. We will work to improve that. So we reduced that loss from PLN 7.2 billion to PLN 6.2 billion in 2025.

Having in mind what Jolanta Gruszka said, if we think about the swings in revenue, well, this change was driven by 2 factors. If we think about coal and coke, the first thing is volume. So with respect to coke volume, we have a positive change. And so the volume increase exerted a positive impact. But here, as Mrs. Gruszka said, the difference is nearly PLN 1.3 billion. But for steam coal, the volume we had 410 million, but the price had a negative impact of some PLN 400 million. So if you think about Coke, as we can see, this is what Mrs. Gruszka referred to, we had the volume -- the impact of coke sales volume, this was a negative impact on the EBITDA bridge or sales revenue of PLN 78 billion. And so the impact of the coke price change was even higher and in excess of PLN 1 billion. So as a result, the change of more than 16% with respect to revenue, well, this led to total revenue in 2025 of PLN 9.4 billion. So we moved down from PLN 11.3 billion to that.

So if we talk about revenue, we need to talk about cost in order to be able to present our results. So here is our information about costs by nature. We reduced costs by 5%. We believe that there is potential to continue reducing those expenses. So they've been reduced substantially versus 2023 in terms of employee benefits, more than PLN 270 million decrease. Materials are down by almost PLN 220 million. Depreciation and amortization is down by almost PLN 200 million. Energy, this is something that Mr. Rozmus referred to. This is a result of the methane capture activities. So it's more than PLN 150 million. Then we have the reduction in cost of external services. So we see potential to continue reducing costs.

Generally, what are the drivers of cost changes? So our overall costs in 2024 were PLN 15.76 billion in 2024, and they dropped to PLN 14.979 billion. I said there is potential to reduce those costs. And I flagged those elements. But here graphically, you can see how those individual, let's say, cost items or buckets affected our costs by nature.

Now subject that is what we're working on, what we're concerned by and driven by, that's the mining cash cost and the cash conversion cost. So if we look at MCC, we have managed to reduce MCC by more than 8%. As I mentioned previously, we see the opportunity to continue reducing costs. So this ratio can come down. So you can see the decline. It went down from PLN 804 per tonne to PLN 738 per tonne. This is not a reflection of what our ambition is. Our ambitions have to come from what the market offers, and this is something that we need to work on.

If we look at cash conversion cost in turn, unfortunately, well, in mining cash cost, it's down by 8.3%, whereas in cash conversion cost, it's up. So expenses are up for cash conversion cost. So then the CCC itself, the combined CCC moved up from PLN 317 to PLN 347. So as we see, costs are driving it up. Whereas the decline is because of production volumes. As I showed you at the beginning, we want to update our strategy here. These figures are not at a satisfactory level, and that's why we want to revise our strategic guidance.

So if we break down that cost into the unit mining cash cost, here, you can see where the biggest impact, negative impact. Well, that was the impact of volume. Well, negative in the sense that it reduced that cost. So we had the volume impact, consumption of materials and energy and employee benefits. Those are the main areas which enabled us to reduce the unit mining cash cost. And so that's why our efforts need to be focused on those areas where we have achieved this outcome.

But then we also have external services, which saw an increase. That's due to our liquidity position. So this is something, well it's a goal that we want to regulate our payables. So many activities are required. We've already undertaken them. So we're talking with our business partners who render services and deliver materials to us, have longer payment terms. So we have limitations in investments, as Mr. Rozmus said.

If we turn now we move on to the unit cash conversion cost. We can say that this increase was driven by the consumption of materials, net of coal feedstock, the second big area, which drew up that cost were taxes and charges. That's, of course, due to, let's say, emissions due to the ETS regulation. And so we have an increase of essentially PLN 30. So we can say that ETS was largely responsible.

If we look at the EBITDA drivers for the JSW Group, so in this bridge that you saw for revenue, so volume had an impact and price had an impact. Those are some of the most important factors. Impairment losses had an impact. So it's a gigantic impact. But when we compare that to 2024, it's smaller by more than PLN 3.5 billion. So we're talking about impairment losses for noncurrent assets. So that's the major factor in 2025. We've also reversed an impairment loss on one of our assets, which means we have a positive figure of, let's say, PLN 76 million. And then we have reserves or provisions for returns of emission rights. They have a smaller impact. But in total, this is PLN 3.273 billion.

Then we have the operating segments because we follow the segmentation in our business model. So EBITDA here in the coal segment was PLN 1.5 billion. In the coke segment, it was negative at PLN 58.7 million. In the other segment, it was also positive at PLN 26.7 million. So if we were to look at that without the one-offs, we would have EBITDA of PLN 1.7 billion. So net working capital has changed, has -- what the major elements, the major drivers are inventories of nearly PLN 1 billion, trade and other receivables of PLN 840 million, almost PLN 7 million. Then you have cash and cash equivalents of nearly PLN 800 million. The big impact here is from trade and other liabilities, current provisions and other current liabilities. So these things have an impact.

I haven't talked about loans and borrowings because they're a fixed part of our financing structure. And so that has an impact or the level of loans and borrowings have an impact on the net working capital.

Then we can look at cash flow. The previous year 2025. We started 2025 with cash from the end of the previous year at PLN 885 million. And as a result of all of these things, all these factors, depreciation, change in inventory, so on and so forth, that meant that at the end of the year 2025 we had cash of slightly less than PLN 800 million.

So this is where I would like to wrap up the financial portion of our presentation.

So I think we can come on to the next portion of our presentation. These would be questions, and I hope we're going to be able to provide answers. So ladies and gentlemen, I'll read out the questions the company has received. "Please present in 2026, how much CapEx would be in JSW and the overall group."

Ladies and gentlemen, in 2026, this is a continuation of our limitation process. So yesterday, the company published forecasts of CapEx for 2026 for the group, it's PLN 2.44 billion coal segment, it's around PLN 2 billion. Let me emphasize the limitations of CapEx do not affect the run rate and enables us to complete -- do investments to improve safety. When it comes to planning CapEx for subsequent years, this is something we're doing under the framework of the restructuring plan. So I think we can add that having in mind CapEx in previous years, this CapEx in previous years was very high. So even though this decline has materialized, this will not affect quantum of production or working conditions in the company. Thank you.

"After the CBAM implementation, do you see any more activity in the coke market?"

So I will respond to this question. Even though CBAM has been fully implemented in Q1 of this year, this has not led to higher steel production in the EU. So we see declines in steel production in Q1 compared to Q1 of the previous year by some 2.1%. In March, this decline was 4.8%. In the longer run, introducing the CBAM mechanism, having in mind the announcement of an implementation as of July of this year of a more rigorous system of safeguards to protect the European steel market this would form the basis for expectations that steel production would grow in the EU. And that would mean that there would be more demand for our products above all coke.

We see statements have been made to fire up blast furnaces after a downtime. This is true also of the furnace in Dabrowa Gornicza, then we have a lot of uncertainty because of the war in iron, and that's why there's a lot of reticence to make decisions. It would be difficult to assess what will happen if this conflict continues to last. So all of these factors can affect the market and the level of uncertainty is quite high. Thank you very much.

"Can you state the plan when JSW can utilize the act on restructuring the mining industry? How many employees have decided to utilize the safety net under that amended act? So mining leaves and one-off cash severance payments. So what does the Management Board believe to have? What's the optimum headcount in JSW and the other companies to achieve its production targets?"

Perhaps I can respond to that. Last year, that act on the functioning of the mining sector was enacted to provide support to employees of the mining industry. So JSW is now a target of that act, that law. So this is a mining-related act or statute. And so certain instruments have been identified, which employees can utilize. This is mining leave, leave for people working in the coal preparation plants.

And then we also have one-off cash severance payments. Under that framework of this law, we're expecting that the process, the full legislative process will be brought to fruition and completed. So the Council of Ministers would also have to adopt a program for the mining sector, hard coal mining sector. And this was adopted by the cabinet 2 days ago. And so that means we have the opportunity to take advantage of that mechanism.

So in 2 rounds, we want to give employees the ability to take advantage of these instruments. What we have to find at present in terms of the number of employees who could utilize that. So in total, the number is 4,200 people would be able to utilize those instruments. So that would give us a lot of cost breathing room if that's achieved. That's why we have the determination to prepare our staff, our departments to follow this process. There's a lot of technical things that need to be done. We need to vet employees or check them.

In terms of the social insurance institution, that's something that's underway. So we believe that in these 2 rounds, we'll give the opportunities for these employees to utilize that safety net. Thank you.

"Does JSW want to use a loan or financial support from the industrial development agents?"

So there have been statements made by the Ministry of State Assets that this opportunity would exist for some time now. Having in mind our situation, our financial position and the ongoing restructuring, of course we want to tap into the opportunities that it will have, I say it will have because even though this statute has been enacted by the same in the Senate, the signature of the President is still missing.

From a formal point of view, originating those opportunities by the Industrial Development Agency would not yet quite be possible. But since we need that support, we are working on a loan instrument with the Industrial Development Agency, ARP. The work is quite intense. And so we're counting on being able to secure funds from ARP at the right time. The change that was required pertains to the ability for ARP to grant loans to entities of particular importance.

And that list of entities now includes mining companies, miners. And so that means that there's an opportunity for ARP to provide support. As I said previously, what we've been working on, making sure that we don't squander this time. We don't have too much time. So we're counting on being capable of securing this loan. Thank you.

Next question. "After reducing the coal production target for 2026 and having N9 in Pniowek changing of the longwall, what is the quarterly split of production to the rest of the year? And what's the contingency plan if we get behind in terms of opening up that longwall?"

So having a smaller extraction volume in 2026, this is because of events that transpired in December 2025 in one of the parcels in Pniowek. So we had some methane in rocks and so we had to redesign one of the longwalls, and this is N9. And so that's a difference of 250,000 tons. So we gave a report in the current report section. So that's in terms of framing the situation itself. So the ability to set up a longwall in this region, we had to get the positive opinion of the commission that looks at threats or hazards. So we've received that decision. And so we're preparing some tunneling for N9A because we'll add an A to that. And so this should be done by the end of the year.

So we have good parameters of the coking coal. So we can't wait to add that wall to our longwall to our production output. We have an alternative solution. So in Pniowek, we have some efforts with respect of longwall #11, and there are 2 subparcels, and then we have W3 in a slightly different place in a different layer. So basically, we are securing our ability to fill in that production if we're not able to set up 9A. So the group extracted 3.94 tonnes, of which 2.8 was -- 2.8. And so then the coke production was 0.7 in Q1. To what extent is this supporting the achievement of the full year objectives? And do you see the ability to maintain those annual plans without any risks?

The results of Q1 2026 support the achievement. We don't report that in the quarterly reports. We're in the process. We have the right run rate for production. So today, the Management Board has not identified an elevated risk in terms of the volumes, assuming that we're going to be diligent operationally and that we continue to execute those plans that are required for production.

And then we have employee attrition because of the safety net mechanisms, but we're going to have to do certain things to make sure that the production run rate is maintained. So you have basically impairment losses for [ Zofiowka ], Bobrek and a reversal in Pniowek. And then you also have impairment loss for a receivable from JSW cash.

"What are the cash cost, CapEx and interest rate? What sort of things do you have in mind in terms of these tests? Is this something that's a partial result? Or do you think there's a risk that you might have to take additional impairment losses?"

Well, the detailed description of these tests -- impairment tests can be found in a note in the financial statements. I think it's 6.4. And those issues are presented there in the financial statements. I don't think we should look at that right now. This test, impairment test is not a simple mechanism that we would be capable of presenting here right now. But that note, 6.4 gives precise information. So I would ask you to look at that, scrutinize that note. It's on Page 42. And we give precise information about how that impairment test was run.

"After entering into the preliminary contracts to sell PBSz and JZR, are you considering selling off additional assets? If so, what other areas of the group could be sold? And what would be the impact on operating expenses and cash?"

So if we look at group restructuring and divestment, I talked about that during the beginning of the presentation, and I gave you the initial postulates. The 2 entities you referred to, which are being sold, this process hasn't entirely been completed yet. The closing of that transaction will take place on 30 June of this year. And then we'll be able to say that we've been able to get rid of some entities within the group.

If we look at the other entities in the group, analysis is still underway in progress. And as I mentioned, we're doing analysis within the group, looking at various assets. So we'll move on to a phase in the near future when we'll say which areas will be undergoing restructuring. We've done some testing here. In other words, we've vetted or checked how various companies could be sold and what sort of interest would be generated.

It would be difficult right now to say or talk about the impacts on liquidity, but we are giving serious consideration to restructuring of the group. So if we're supposed to restructure the core areas of the business, then other companies within the group will also have to go through that process. Thank you very much.

Next question. "The strategy of GSW suggests that you'll have more than 90% of the product mix in the form of coking coal. What are the 3 most important factors of competitive edge, geology, CapEx, replacement CapEx or logistics? And under what parameters would you have the breakeven -- cash breakeven achieved?"

So all of those elements are extraordinary that you've mentioned in order to achieve that goal. So first, geology and then, of course, productivity of longwalls. This is the foundation of costs. So in the long run, this has the biggest impact on unit cash cost, mining cash cost. So basically, the recognition of the surveys. This is clearly the case that's very important because that gives you the ability to design the longwalls and choose the ones with the best parameters.

The next thing that's very important is the mix and the quality of the coking coal. So the actions the company is taking are designed to get the best or extract the best possible coking coal and then to utilize the coal preparation plant in order to have a higher recovery rate of coking coal than the organization of work and cost discipline are also very important, rationalizing fixed costs, variable costs, all of those things have to work in tandem in order to achieve good outcomes.

So let me add to that. If we look at the situation in which we achieve on a permanent basis a cash breakeven point. What we're trying to achieve is for revenue to be higher, unit revenue to be higher than unit cost. We can't really influence costs, sorry, revenues. So this is what Jolanta Gruszka talked about. We track that, but we don't have any impact over the specific revenue. So where we can be active is on our costs. And this is the primary area of our activities and efforts. So we're analyzing these costs not only on block, but we're breaking them down into individual buckets.

And as I mentioned previously, the market is merciless. We have to adjust to the market, not the other way around. And so our cost reduction efforts are treated as of paramount importance. So if a mine is not capable of reducing its costs sufficiently and improving its efficiency, then we'll have to scale back our capabilities because the business has to generate on a permanent basis its profitability. And this can only be done if revenue is higher than costs.

"Thank you very much for the extensive response and comprehensive. We're talking about the sales of coking coal. Why do we have a low level of sales, which is much below production? Is this a problem in terms of the sales markets in Europe? Or is there some other problem?"

Ladies and gentlemen, if we look at the data in 2025, so we sold to external, so this was down, was below 3.7% below in terms of production. If you look at the total sales to external markets and the internal. But in Q2 and Q4, it was actually lower than in production. So we've said many times, this is something that hinges on the changes in the structure or mix of production and other factors, which have been discussed multiple times.

If you look at the individual quarters, let's take a look at Q1 of this year. We've published information about our operating results. And in Q1 of this year and the sale of coking coal in total, both internally and then externally was just like in Q1 of last year was lower than the production level. And why is that the case? In Q1 of this year, I would look at -- I would flag 2 reasons. First, the contracting for Q1 was done on the basis of production forecast prepared at the end of last year, and they had assumed a lower level of production, but the actually output -- actual output is higher. So that's one factor.

The second factor is related to the market. So we don't see the effect of implementing CBAM. I already mentioned about some of these declines quarter-on-quarter. So Q1 was a period in which -- and this is something we showed in the report, in which prices for coking coal rose, but this was not because of changes in the foundational principles of the market, this was a result of certain weather phenomena in disruptions in Australia. And this was not something that could be planned by our clients. On top of that, the outbreak of war in Iran led to higher uncertainty and other types of market risks. And this had an impact on or led to buyers buying less optional quantities.

And the next question, "To what level of CapEx on a quarterly basis do you want to come down to in order to achieve liquidity? To what extent will this limit future output and to what level?"

The company wants to reduce CapEx in 2026 significantly because of our financial position. But this limited level of CapEx is linked to what will give us safety as well as the means of production. In terms of achieving the run rate, 13.3 million in 2026 is something that we uphold. And so we want to have CapEx that would be aligned to that run rate.

"What sort of annual average run rate are you planning over the several years?"

I can't speak to that directly. We're working on the financial model right now. We're preparing those documents. So I'm not going to give you any specific figures right now. I apologize for that.

"In terms of the unit MCC, how low do you want to go on the unit MCC? What is your ambition?"

The company published the unit MCC for 2026. And the goal here, the objective is set at PLN 577. And as we said last year, it was PLN 738. So this is a pretty big decline in unit MCC. And there are a number of efforts being taken by myself and Mr. Rozmus, we've talked about it. This is CapEx, cost of external services, cost of materials. So every zloty, not only because we have much less cash, this needs to be subject to a review, and so this has to lead to a major decrease in costs, especially the ones other than payroll.

And so this is the goal for this year. Is it satisfactory? I don't think so. But it's realistic. So we have to obtain that level. Let me mention, the market dictates at what price or what price it wants to pay for the commodity. And of course, overlooking political elements, Mrs. Gruszka talked about that because all these regulations, all these market protection mechanisms, they act in a bidirectional pace. So if we want to protect the European market, other markets utilize a variety of instruments. So on top of operational productivity, we have to be highly flexible in our operations in order to be able to react to what's happening in the marketplace. Thank you very much.

So if you will allow me, since we've completed the Q&A session, once again I'd like to thank you for your participation in our conference. I'm convinced that in a year we're going to be able to talk about having totally different results. I would like to thank you once again. Bye-bye.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Ladies and gentlemen, I would like to welcome you very cordially to the results conference where my 2 colleagues will join me from the Management Board. We'll talk about the results of the Group for Q3 and the first 9 months of the year.

Before we go on to delivering a presentation concerning these results, I'd like to say a few words about the current situation, position of the company. And as we'll present the market context in a moment, this is not favorable to us, so we see the down conditions on the steel market and what's happening in our business. This is not conducive to us achieving our intended results. And so when we talk about the FX rate, this is problematic for our FX exposure in terms of the situation of the company.

As you've capably noted previously, the funds we have available at the closed-end investment fund are dwindling, and we're at the final stages of paying out the final amounts from that fund, closed-end investment fund. And this is a strong reason for us to commence, we started 2 months ago, the process of restructuring, reorganization of the company. Here we should highlight that without clear and decisive actions, the company in the near future would have difficulties with respect to liquidity.

At the current time, the St. Barbara festival, it's not something we can celebrate the way we have usually done that in the past because the position of the company is challenging. And despite these difficulties, I would like to thank our employees for the accomplishments and achievements they've made up until now. So I hope that we'll be able to wrap up the year at the level that we had assumed. Personally, I'm of a good mind here, of good opinion.

As I started, we began October where we kicked off the process of restructuring, reorganization. So personally, for 2 months in essence, I've been participating in a very clear fashion. And so we have a large number of challenges linked to the consultations, negotiations with the social party, with financial institutions, with the owner. And the work we're doing is in progress. These meetings are being held on a regular basis. And for the entire time, we're looking for the best possible solution for the company to be able to navigate the upcoming period with -- as fast as possible with an undisturbed fashion.

So yesterday's information gave some hope that the Ministry of Energy is revisiting our application to reimburse or refund the windfall tax. That, of course, does not mean that this decision will be in our favor. However, undoubtedly, we treat this as a statement of accepting our point of view and that the ministry will once again reexamine our application for a refund of the windfall tax.

What also is important is that we are working at present on crafting a concept with respect to the overall reorganization effort jointly with our employees. We're using in-house resources. We've completed our cooperation with respect to the support in these processes. And so we're convinced that what we've prepared, these efforts that we've prepared will be conducted successfully.

So if you allow me now after having made this initial statement, we'd like to go to the slide, which recaps what's happened over the last quarter. And perhaps I'll begin with the main bullet points about our Group.

So if you look at coal production during the most recent quarter, it was in excess of 3.3 million tons. So this is a slight decline compared to the previous quarter. My colleague will drill down in details in just a moment. We look -- if we look at coke production, we see that it's up by more than 20%. And so this is something that we should embrace with satisfaction. The number of active longwalls at present. So we have 22.2 active longwalls, which is an increase of essentially 2 longwalls. The mining cash cost in term has -- we've managed to decrease the MCC over the previous quarter.

Sales revenues have also grown slightly. So this is something we welcome with satisfaction. The average price of coking coal and coke, unfortunately, this is what I mentioned at the beginning, that we have a downward-moving market. And so my colleague, Jolanta Gruszka, will talk about in just a few moments. In both cases or in both products, we see price declines.

The EBITDA posted has a bigger negative figure in Q3. It's bigger than in Q2, which is also negative. And as a result, the net result, well, the loss basically increased in Q3 to PLN 793.7 million.

So if we look at the operating results, I'd like to ask my colleague to go ahead and say a few words about that.

Ladies and gentlemen, if we look at coal production, so if we measure Q3 of this year to Q2 of this year, it's at a similar level. We have 3.3 million tons of production. But if we look at the first 9 months of this year versus the first 9 months of last year, we're up by 5.1%. So we have more coking coal and less steam coal. So this is in line with our target mix, as the market would expect.

If we look at the quarter works and the parcels that have been available to mine goal, and we compare Q-on-Q, it's very stable. So we have more than 17,500 meters. And if we do a comparison of the first 9 months of this year versus last year, there's a slight decline, but this is a matter of stabilization. And so if we look at coke production, it's up by more than 20% -- by more than 26% quarter-on-quarter, but it's pretty stable if you look at the first 9 months of the year.

And so I would ask our Chief Sales Officer to speak to the market environment.

Ladies and gentlemen, if we look at the market trends and sales trends, as my colleague mentioned, the steel market context hasn't improved. And so in Q3, according to the World Steel Association, we've seen a greater decline. So production of steel is down by 5.6% globally, whereas in the EU, this decline over Q3 2025 to Q2 2025 is down by 11.5%. If we look at steel production in the first 9 months of this year versus the 9 months of last year, it's down across the world by 1.6% and the EU is down by 3.7%.

So the only place we have a clear increase is India, where if we look at the period from January to September of this year, and so we have more steel being produced in India. Whereas in other Asian countries, we can see that there's less or softer internal support. And so they're generally trying to sell on the export markets.

On the global markets, we see that the steel exports from China are growing in the first 3 quarters of this year compared to the similar period of last year. And so it's up by some 9% and that's some 80 million tons. And here, it's worthwhile noting that steel production in the EU was less than 95 million tons. In the EU, we see more and more steel from countries where the Chinese steel has squeezed them out. And so that means they're not under the ETS systems.

And so the decline in utilization of steelmaking production capacity doesn't improve the prices. As you can see on the market, prices continue to fall. So we have, of course, the flat goods and the long goods and so the rods. And so this is less dynamic. And so the expectations of the steel industry is they want some legal activity to be done by the European Commission to protect the European steel market, having in mind the global glut of steel production. And so the current functioning mechanism should be replaced in June of next year. As of January, we'll have the new tax, border tax, which is referred to as [ CM ].

On the next slide, we see a short summary of prices for coking coal and coke. So if you look at Q3 prices, we could say the average quarterly price was more or less the same. If we look year-to-date, for PLV, they're down by some 27.2%. If we look at semi-soft prices in Q3 versus Q2, they're up by 12.5%, but the average for the first 9 months of the year is lower by 23.2%.

Moving on to coke prices, maybe I can give you a short commentary about the market position from January to September of this year. We can say that the globally trade of coke was mostly affected by the import quotas introduced by India. And so this means that Indonesian coke started to access other markets because of the lack of access to the Indian market. And so according to information, these quotas are enforced in India until the end of the year. And so the general director responsible for the commercial production means, instead of quotas, they want to have antidumping tariffs. And so this would apply to coke imports from countries where there was basically antidumping procedures. And Poland is not one of the countries where there was any type of antidumping activities done. And so we've seen more seaborne incoming coke, where we didn't see that present in 2023 in the European Union. And so if you look at the corresponding period of last year versus this year, so Indonesian coke exports have more than doubled, from 510 to more than double that figure.

In Q3 of this year, Chinese coke prices were up by 3.5%. And this is primarily a result of the internal coke prices rising on the internal market there in China. But if we look at the imported coke prices in ARA, it's down by 7% if we look at the ARA ports. So if you look year-to-date in this year, we can say that coke prices decline is quite similar. So it's edged downwards by some 27% or 27.8% if working at Chinese coke prices.

And so what's very important, we talked about this multiple times, let me talk about the relationship or the ratio of coke prices to PLV prices. They're very similar. And so we could say that they were identical, but then there was an improvement in excess of 1.2x, but then they fell again. And so the quarter brought it back down to 1.12 in terms of the relationship of the coal to coal prices.

And then if we look at our prices related to market prices, so in Q3 of this period, we had prices from April to September of 2025 affecting that price level. And so we can say that the benchmark price in Q3 of this year is down from what we saw in the previous quarter by 1.5%. And so the ratio of these prices to the benchmark prices was more or less at the same levels in Q2. So we were 97% in Q3 versus 98% in Q2.

And so if we look at the overall coke price with respect to blast furnace coke in the ARA ports, it's more or less at the same level of 104%. This is coke price versus the price of blast furnace coke into ARA ports. And so we can say that we have regular price decline if we look at the PSC 1 price index or the curve. And so this is down by some 6% to [ PLN 21 ] per ton. And so our prices were 83% of that index, and this is something that relates to what we've talked about multiple times, what our position is on that market and our parameters. The parameters of our coal differ from the ones that you would generally see for standard steam coal prices.

The next slide basically sums up coal sales. And so we have the coal sales produced in the Group, and so it's up by 15.5% in Q3 versus Q2. And then we could see that the coal -- the steam coal is up by 75%, even though the prices are lower by 4.8% and the steam coal prices are being down by 10%. So we had greater revenue from coal sales because we had higher volumes. And so the increase quarter-on-quarter is 2.3% in terms of the revenues on sale of coal to external customers.

So if we look at the first 9 months of the year, so the revenue was down in the first 9 months of this year versus the first 9 months of last year by 15.7%. And that's because of having lower coking coal prices, which are down by 27%, and then the coal prices were down by 37%. And so then if you look at sales of coal to internal customers, so they're up by some 27.4%. And this is a result of higher coke production, as we said previously.

And then if we look at the sales of coke in Q3, it's up by 5.6% over Q2, where, in fact, the revenue is down by 3.4%. If we look at the overall coke price, we have, of course, the coke price down by 11.3%. And then we had some revenue from hydrocarbons, where we had a higher quantum or volume of sales because we're utilizing the production capacity at the coking plants. If you look year-to-date, we can say the sales of coke were down by 9.1% versus last year, and this is a result of having lower production.

The average coke sales price was down by nearly 26% in the first 9 months of this year versus the first 9 months of the previous year. And that meant that the overall revenue and sales was down by nearly 30% in the first 9 months of the year.

And then we have the last slide in my section, which is about the inventories of coke produced in the U.S. group. And so the coal inventory is down by 14.4% to 1.3 million tons. And so there's not a major change here. But steam coal [indiscernible] down by more than 200,000 tons, which is more than 24%. And so this is 46% of the total inventory, and this includes the technological inventory utilized in the coking plants of the group.

If we look at the coke inventory at the end of the quarter, it's up substantially by 127.7%. Please note that this increase was from the lowest level of inventory we had in history, which was below 100,000 ton watermark. Increase in this inventory is because of loading ships for overseas sales. And so it's 70,000 tons of coke in the ports to be loaded on to ships.

So that's it from my side. So I'll go ahead and give the floor back.

So thank you very much, gentlemen. And so we have the results of a number of initiatives that have been undertaken by the JSW Management Board in order to carry out the transformation program of the Group as well as its reorganization. So this is applied to the capital expenditures. And so the CapEx for the Group's needs are down by more than 20%. That's on a quarter-on-quarter basis as well as on a basis of comparing the first 9 months of this year to the first 9 months of last year. So we've optimized those expenditures.

And so if we look at the coal segment, it's down by more than 18%, so PLN 531 million. And this applies above all to investment construction as well as [ expensable ] pits as well as putting in shields and things like that in the longwalls. And so in respect of the investments, so we have the decline of [ PLN 71 million ]. So this is more than 20%. And if we compare quarter-on-quarter, this is roughly PLN 182 million, so it's 17.7%.

What's important here is CapEx in JSW, well, we have in the coke segment, it's quarter-on-quarter, this is 44% decline of roughly PLN 40 million. And this is 50% 9 months of this year to [indiscernible] and so roughly PLN 150 million. So even though we've been radically optimizing our CapEx, I want to highlight and emphasize that we're not doing any savings on important elements of the plant, so the safety of our crews and for the continued operation of our mines and plants. This also applies to the future of the company, having in mind the individual mines and plants. We continue to incur CapEx in order to open up new parcels of coal expected by the market.

So we're thinking about focusing on coking coal. If we talk about investments, we're talking about expanding existing levels in order to enhance safety. And if we look at coke, we're going to continue those operations in terms of building coking battery #4 at the [indiscernible] coking plant, as well as completing the power plant in the Radlin plant.

So thank you very much. I'm going to go ahead and give the floor back to the CEO, Mr. Boguslaw Oleksy, at this time.

Okay. I'm in the right spot now. Ladies and gentlemen, what we said at the beginning in terms of sales revenue, we see quarter-on-quarter a slight increase of 0.8% roughly. In Q3, our revenue was PLN [ 2.29, almost 5 ], billion. If we look at the same period in 2024 in the first 9 months of the year this year versus the first 9 months of last year, we can say the decline in the revenue is much more important because it's in excess of 20% -- or sales have fallen by more than 20%. What were the drivers? So Jola Gruszka pretty much discussed these contributing factors. They were market related.

If we look at EBITDA net of nonrecurring events, we can say that Q3 EBITDA, unfortunately, was lower than the EBITDA in Q2. So it was PLN 528.6 million. But year-to-date, the results after the first [indiscernible] is 2.8, compared to the previous period where we had more than PLN 5 billion.

And so if we look at the net working capital, including the closed-end investment fund, as you can see, our net working capital is negative and has become more negative. So at the midyear point, it was PLN 200 million in the negative. And now at the end of September, it's more than PLN 1.4 billion in the negative. The net result in turn after the 3 quarters, we can say that the total loss is PLN 2.8 billion, whereas in Q3 alone, it exceeded PLN 793 million. And it was higher -- this loss was higher than in Q2 of this year.

The next slide presents the change in sales revenue. And so there are basically 2 areas. One is volume and the other one is price-based. So the rectangles show you what happened with volume, that volume was rising. So this was the impact exerted by sales volume in the coking coal area. And so revenue was up by more than PLN 16 million. So coking coal price change, however, exerted impact, leading to revenue falling by more than PLN 53 million.

Again, we had the volume side impact exerted by steam coal. And so here we have a positive increase. If we look at the price impact of steam coal, we had a loss -- well, it's not a loss, but it's actually a decline in the sales revenue. Then we have a green rectangle, which again shows the impact of coke sales volume, which is up by more than PLN 42 million. Then we have the impact exerted by coke price changes. So it's a negative impact of more than PLN 91 million. So the market description really does have a major impact on declining sales revenue in the Group.

And then we have expenses by nature across the Group. So we have seen a decline quarter-on-quarter. This decline is linked to external services being down. You can see that on the side. Employee benefits are down and materials costs are down. If we look at the first 9 months of this year versus the last 9 months of last year, we also climbed.

What we're not satisfied by, however, is employee benefits being down. This is a result of the accounting treatment of holiday vacation and allowances for that, as well as for jubilee awards. So this is not something -- this is not the level we're thinking about in the framework of restructuring the [indiscernible].

So the major cost change, as I presented, so we have lower cost of depreciation of nearly PLN 17 million. Consumption is down by nearly PLN 50 million. Energy consumption, unfortunately, is up as a result of energy prices on the market. We've also reduced, as Mr. Rozmus mentioned, we reduced the cost of external services. And this is a direction we'd like to follow in the future.

Then we have employee benefits. As I mentioned previously, this is about reclassification of provisions for recreational leaves, holiday leaves and the jubilee award provision. And that's why we have a movement here of nearly PLN 73 million, which had an impact on the cost and the cost drivers.

Then we have the mining cash costs. So it fell in Q3 and Q2, this decline is, percent, in the first 9 months of this year versus the first 9 months of last year, the magnitude of this decline is greater because it's 6.3% down. It's down by more than 6%. And so this is the unit mining cash cost.

If we look at the cash conversion costs quarter-on-quarter, this cash conversion cost has fallen 23% quarter-on-quarter in first 9 months this year versus the corresponding period of last year, we have posted an increase of 7.3%.

Below, we could see the impact I referred to previously. We see the cost impact as well as the volume impact. So this is something we have to grapple with having in mind or as long as the market is going to look the way it looks at present.

Here is what I said briefly. You can look at the unit mining cash cost on this graph. So we can see the breakdown in the bridge. The consumption of materials and energy is up by PLN 3.91, whereas we have lower costs of external services. So that means a decline of more than PLN 15 per ton. The next thing is the decline in employee benefits. Then we have a minor item, which are taxes and charges. The other costs by nature and the volume impact on production were negative.

If we look at the cash conversion cost, what we're presenting here is a decline from PLN 363 in Q2 to PLN 278 in Q3. And this is mainly driven by an increase in the consumption of materials net of coal feedstock. Energy consumption here was down by nearly PLN 2 million, and that means that this cost diminished by PLN 2.2. The cost of external services were down. And this should be a constant trend. And so we've been able to reduce by more than PLN 5.

The next thing is employee benefits, which is down by PLN 7.54 per ton. And then we have a decline, products and fees, taxes and charges, so it's pretty high. This is mostly a result of accounting treatment of provisions in terms of issuance rates for CO2.

The other items are as follows. We have other costs by nature, it's pretty minor, and we have an increase of admin expenses. So it's up by PLN 25 plus per ton. This result is a result of certain disputes with Rafaco. The dispute here is about the installation and the account receivable of JSW [ Cox ] vis-a-vis Rafaco, and for the construction of Radlin. The impact on volume is quite substantial. As we showed you previously in Q3, this was a big impact versus the previous period.

If we look at the main EBITDA drivers across the Group of JSW, these are things that we've discussed previously. And we can say that the impact of coal sales volume and price is more than PLN 30 million. The impact of coke sales volume and price, this is an impact of PLN 49 million almost. Other sales has a positive influence of more than PLN 35 million.

Then we see the impact of cost by nature. That's an overall impact of nearly PLN 198 million. And then we have the impact of impairment of nonfinancial, noncurrent assets. So there is a negative impact of nearly PLN 9 million.

The next thing is the impact of the result of other activities. So this is more than PLN 106 million. Then we have other items, which is more than PLN 200 million. And then we have the value of internal construction and the change in the inventories. So that's the main thing.

As a result, the EBITDA comes in of Q3 is in the negative at PLN 528.6 million. After some adjustments are made to exclude one-offs, the end figure for Q3 2025 is negative PLN 485.3 million for EBITDA. These nonrecurring adjustments are for acts of [ fate], unfortunately, and a large portion of that amount, of the PLN 43 million, these are basically pure act of chance that have [indiscernible] an impact.

If we look at the contribution of the various segments to EBITDA, what is the most important here is that the change in the coal segment leads to a negative impact of a little bit more than [ PLN 193 million ]. Then we have the changes in the coke segment, which also has a negative impact, which is almost PLN 11 million. And then we have the changes in the other segment. The negative impact is more than -- is around PLN 10.5 million.

And then if we look at the change in EBITDA because of consolidation, we have PLN 97.7 million. And just as we previously mentioned, after the adjustments for the one-offs, the EBITDA in Q3 was in the negative at EUR 85 million.

Then if we look at net working capital, including the closed-end investment fund, as we did. So it consists of inventory of [ PLN 982 million ]. We have trade and other receivables in excess of PLN 1 billion. Then we have cash and cash equivalents. So we're talking about the first 9 months. And then we have the funds in the closed-end investment fund, more than PLN 500 million, after making some adjustments [indiscernible] and loans, liabilities, employee benefits and having adjusted lease liabilities. So at the end of the year -- or at the end of the period, excuse me, was nearly PLN 2 billion and was a figure in the negative.

Then if you look at the cash flow across the Group, what we saw at the end of the Q2, we had PLN 677 million. At the end of the quarter 3, we had PLN 513 million. The major impact can be seen in the various bars in this bar graph. So we had [indiscernible] we had change in liabilities, we had trade payables, receivables and then movement in liabilities, loans and borrowings, and the negative impact, so the pretax impact. All those factors are taken into consideration.

This is where I will wrap up the financial portion of the presentation. But in terms of our business restructuring assumptions, in many cases, this, of course, touches upon the financial side of things. And now I would say a few words to you about the business restructuring program, which is being prepared and is being executed at the same time, because we weren't really able to wait to start the performance of this program. And so we start to perform it immediately after the core assumptions were embraced.

The major areas identified in our reorganization plan, so we have the financial security of the JSW Group, and this is a core thing that we're addressing. And so basically reduction of operating expenses and our financial liquidity in making us [indiscernible] a good, let's say, debtor.

The next thing is restructuring the current debt. Here, work is in progress. This work entails our relationships with financial institutions. And in just a couple of moments, I'll say a few more words about that subject. We're also working on securing funding sources in order to be able to execute the restructuring plan, because the money in the closed-end investment fund basically is dwindling, is coming to an end. So we need to have additional sources of funding.

The second area is linked to cost side of financing. So we want to reduce, on a sustainable basis, our operating expenses. Looking at our market analysis about coking coal and coke, what's happening on the local market as well as the global market, we need to find a different cost model, so -- and continue operations with the current cost structure. And so this is something that's very important, especially if we talk about employment costs or labor costs, which is more than 50% of our budget.

The other thing that was mentioned by Mr. Rozmus, this is a matter of our investments in capital expenditures. We want to prioritize them. We want to make sure that we're allocating funds correctly in order to be the best possible outcomes. And that's why our people are working on that subject intensively such that we'll be prepared. But we're already in the process of delivering this, executing this program, but we'll be ready with respect -- in the near future with respect to next year and subsequent years.

Another thing is the sale or liquidation of assets. We're not talking about assets [indiscernible] in terms of certain facilities or things like that, but we're talking about large-scale facilities held by the Group where we would like to monetize them in the near future.

In terms of the structure of the Group, so we have a review of the processes and the implementation of measures. Above all, we want to optimize the Group structure. So what do we understand by that? We want to diminish the size of the Group. All of those companies not directly related to core business should be sold, divested.

We also want to optimize the structure. So we want to merge companies to achieve some of the synergies that exist within the Group. So this is a big area. Of course, we attach great hopes to that because our Group consists of multiple elements. We can't say that it's an optimal structure at present.

And so as we restructure the Group, we have to change the oversight. It has to be strengthened. It has to be more efficient in order to manage our capital group, our Group, and not just exercise formal oversight.

What awaits us. We have 4 major areas. So we have to devise a support plan from the state treasury. We need to work out an agreement with the trade unions in terms of reducing costs and -- or the work organization versus the Group itself. So we need to have the business restructuring plan for the overall Group. And we also have to work out some financial terms with financial institutions because we have loans, a syndicate loan granted by several banks. And so the conditions of this financing need to be adept to the assumptions embraced in our restructuring plan.

So the parties I've mentioned are very important. And so the management is spending a lot of time at present with the state treasury and financial institutions and with the trade unions in order to be able to achieve the intended objectives.

When it comes to the state treasury, we're working -- this is not the most important element. We're working with the social insurance institution to obtain support, and we want to defer and make installment payments for [indiscernible] contributions. That's one area.

The second area is working out possible forms of support by the state treasury. Here we're looking at a variety of a large number of solutions available in this period in the scope. What we want to do is adapt that to our solutions in terms of the magnitude of that support. And this is something that we would like to do in the short period. That's something we don't conceal.

And there is the inclusion of JSW under the act on the functioning of the hard coal mining industry. This law has not yet been enacted. But we're working quite intensively on this subject over the last several months because, originally, JSW was not a target beneficiary of that law. And this law would enable the company to cover the costs of minor recreational leaves, holidays as well as several cash severance pay [ provisions ] in the law. And we hope that this law by the end of the year will be enacted and will take force and that we'll be able to access that law. So legislative period is not something that's beneficial to us because it really depends when finally the law takes force and then we can make a precise calculation of cash flow in the next year.

So we have more than 3,000 people scheduled for vacation or basically for these leaves, and then most of the people [indiscernible] immediately. And so we're going to try to increase the number of one-off cash severance payments because the assumptions we've made about restructuring suggest that we'll be able to have a higher number of people subject to these one-off cash severance payments.

So the trade unions are presented here. The social party is the second party, but the management team is working above all on reaching an agreement with the social party, with the trade unions in the recent period. And we advised you through our current reports that we've managed to sign an agreement about guarantees of employment. And so this was abolished with respect to several categories of employees. And here we're talking about administrative staff.

Let me remind you that these employment guarantees were 10 years in length and were absolute. And so that somehow capped our ability to do some -- or our flexibility, limited our flexibility in terms of restructuring. We're still talking about limiting the St. Barbara payment and of limiting the payments of bonuses, the so-called 14th salary, and also the calculation of sick leave.

What we see in the company, that it's more than 20% higher than what's decided or determined by the labor code. These negotiations are very difficult because our expectations to reduce labor costs are very high. The bar is very high for that reduction of employment benefit costs.

If we look at the Group itself, we're working on 2 mining centers. We would like to have 2 centers for mining. This is not something that's well known in the mining industry in Poland. So we'd like to have 2 structures, which would give us the ability to allocate employees more strategically and utilize the assets, that this is something that would be desirable. And we're convinced that this is something that will produce the outcomes we have laid out at the beginning.

Then the next items is about our operating expenses. And my colleague, Mr. Rozmus, is working on that. And so his team is working on OpEx, on CapEx. These are quite important issues. As you can see in our cost breakdown, if we looked at external services and our expenditures for staff were also important. So this is something that will determine the future of these mines. Without these expenditures, it's hard to imagine that we would be capable of maintaining our run rate and having that position in place for our customers. Those are the 3 issues.

And then we have financing institutions. I already mentioned that. Work is in progress. This is not straightforward. Each one of these areas is difficult, with the exception of the group where we have a direct impact in terms of what we're proposing and we will enforce what we've stated as a matter of our targets. But in terms of the state treasury, trade unions and financial institutions, those are difficult discussions. But we continue to run them on an unwavering basis. And we're convinced that we're going to be able to achieve our intended outcomes.

And so in terms of restructuring, this is something -- well, there are some minor things that I don't want to discuss. And so it's a matter of our basic activities, so renegotiating contracts, reducing energy consumption, reducing inventories, shortening the cash conversion period, getting rid of -- or divesting of extraneous assets, reducing the number of FTEs. This was something that was blocked by the employment guarantees. This has now been abolished with respect to admin employees, people who have reached retirement age. And this will support our operating activities in the mines.

These are things that have been done. We have certain soft elements that had to be scaled back, unfortunately, like training. So there are certain things that are required by law that we continue those, but we also have to scale back on those type of expenditures. So we've refrained from paying out bonuses linked to the results.

We had a pilot and so we notified you of that. This pilot is no longer up and running. So we're not incurring costs there. I didn't mention this because I think it's pretty straightforward. We're looking at all of these areas. We're looking at all of the processes because we have to find savings in these processes.

And so the procurement process, this is also an area that we're going to be optimizing and restructuring the organization. And so we have these mining centers, which will testify to that. So these are things that we're doing the optimization on an ongoing basis. And so managing the cash centers, these are things that are happening. So we're not articulating that at full throttle because this is basically our daily bread. What goes beyond that is what we've presented today.

And this is where I'd like to wrap up our presentation. So thank you very much for your attention. And now I think we'll move on to some questions that have appeared. Then I would ask us to start the Q&A session now.

So ladies and gentlemen, I'll read the first question that the company has received.

So the voluntary redundancy program, when will this take place in the company?

So as I mentioned, work is underway with respect to the draft legislation on the functioning of the hard coal mining industry. And so if this work is completed, then we will immediately proceed to implementing our voluntary redundancy program. There's a specific number that's been defined. So we can say that we will probably be able to increase that number based on what's happening with that legislative process.

So we're working jointly with the [indiscernible] insurance institution because we'll have to process those people in terms of the vacation leave or holiday leave and make the calculations as well as their retirement or redundancy. So we're working with them hand-in-hand. A lot of the work has been done because this will have to do a lot more as a result of this process. And so this is something that got started in November of this year.

The next question. What number of employees does the Management Board expect to reduce? And what are the estimated annual cost savings?

Once again, I have to refer to the fact that we don't know what the final shape of this law will be. But amongst the employees, we've distributed a questionnaire or a survey, which is to check their perception of utilizing these 2 instruments in the law. And to our surprise, even though the number of people who are entitled, which is in excess of 3,100 employees, that number was defined by our HR team. We have more than 6,000 people who have come forward with their requests to participate. And so we believe that more people would like to take advantage of this process.

So if we look at one-off cash severance payments, we can say that nearly 700 people responded to that. So this would basically fulfill the figure defined in the draft legislation. So this does not surprise us. And so we're working on to be able to increase or drive up that number of people. Because after -- once after the guarantees, working guarantees, labor guarantees being suspended, then it's clear that the number of voluntary redundancies on a nonrecurring basis with cash severance will be higher.

Well, would this be something that would affect current operations, reducing production? Will there be any negative EBITDA impacts as a result?

Well, the question is very interesting because we're working on the subject with my colleague in the management team. What is the -- with Mr. Rozmus. What is the optimum number of people? What's -- how many people do we need? Because this is where we're doing the actual mining. And at present, we haven't defined a specific number. But having in mind the average age and skills and qualifications that employees have, we need to have a precise definition. So we don't want to have a situation in which employees will take vacation or holiday leave and we won't have the right level of output.

So the work is underway here. We're trying to standardize that across the production-related units and departments. This is underway. So I don't think this will have a major impact on our production capacities.

So if we look at these leaves, these holiday leaves, this is spread over years. So this is not something that would happen all at once. So we would prepare to replace those persons who would leave.

The next question. What is the estimated financial effect of making changes to the 10-year employment guarantee? How many employees might, let's say, walk away?

As I mentioned, the employment guarantees that have been executed means that the administrative staff, so people working on the surface, with the exception of people working in our wash plants, all of those people are potentially ones subject to restructuring. So we assume that the number of these employees -- well, this is around 1,000 people. But until we complete the work on the standardization of our departments, until we've completed the preparations on these 2 mining centers, it would be very difficult to give you a precise response. However, in the near future, the Management Board office will be restructured as well as the production support department.

We've identified a large -- excess number of staff. And so this is an area that will be profoundly restructured. I don't want to speak to the costs themselves yet because, as I mentioned, we haven't fully defined this area yet. Of course, these costs will be calculated. And I think it's going to be material. Because when we say 10% of our employees might leave the company, well, that 10% would have an impact on the amount of our costs.

How many people still have employment guarantees and how many people do not have employment guarantees?

At present, we have roughly 20,000 employees in JSW. So almost 4,000 people do not have employment guarantees. The other people have employment guarantees. These are people in our core business. These are the people who are supposed to extract the coal. And we're not including people who are destabilizing the workplace, because we do see cases like that, which are not just individual cases. These people are affecting production output. And if somebody is making a review of that person's, let's say, involvement, and that person might come to the conclusion that that person poses a risk to our stable production and then we get rid of those people. We won't be afraid of doing that, getting rid of people like that, because there's no place for us to retain employees who are pretending to work. And our remuneration system is somehow petrifying or, well, we can say our heads to the social party to the employees because they've actually pointed out which people should be reviewed and examined and to ensure that only those people are paid who are contributing to the company and its value.

Will Parraburca be paid to -- the bonus for St. Barbara's festival be paid to employees?

Well, this question is a difficult question because we are checking and tracking our cash flow. And having in mind that we have negative cash flow and the company has had negative cash flow for a while, and this could be a fundamental problem had we not had the closed-end investment fund. Well, we haven't made the decision yet, but the decision to pay out this bonus is subject to a high level of risk.

Even though PGG and other miners intend to pay out these St. Barbara festival cash bonuses, we see this is subject to high risk, and we haven't made that decision to do so yet.

When does the company effectively intend to utilize funds from the state treasury for restructuring? How many employees might be subject to this plan?

Well, this, as I've mentioned, well, it depends on the date on which this law is enacted, the law that I've been talking about, this legislation. So as soon as it goes into force, then funds have to be allocated for that purpose because the law itself will not enable us to put these persons into these individual leave programs. So after that law takes force, it's our plan or planning that jointly with the social insurance institution. We assume that this will take place starting from the second month of next year.

When can we expect there to be a new agreement struck with the trade unions reducing staff salaries by a double-digit figure, in the teens?

Well, I don't know because, as I said previously, this work is underway. And I would emphasize here, this work is very difficult. And here, my 2 colleagues from the management team and I are participating in these talks. And so I continue to believe in the wisdom of our staff. And I believe that we will strike an arrangement, an agreement. But these negotiations are quite demanding.

Next question. The company is reporting a very low monthly sales of -- external sales of coking coal. Is this because of a softer market or cheaper coal coming into Europe? Or maybe there's been a loss of confidence amongst JSW's partners following the last 3 months of extraordinary events?

Well, the European market is clearly in a difficult position. EU steel production is falling year-on-year. And of course, that's having an impact on the products that we generate or produce, so coking coal and coke.

In recent months, [ ArcelMonte ] made the decision to turn off its blast furnace in Dabrowa Gornicza temporarily. And so of course, this is something that's having a local impact. So we've seen some events in the mines which affected the availability of semi-soft coal. And so our partners had to react. And so they had to buy semi-soft coal from others.

Despite that, as we indicated during the presentation, we've been able to sell more coal in Q3 versus Q2, we've been able to increase that. And if we look at the period from January to September 2025 compared to that same period in 2024, the volume of sales is up by 17%.

Next question. Is a run rate in 2026 of 13.5 million tons, is that your minimum plan, or is that the best case scenario, optimistic plan?

So as we prepared the foundation for the 2026 economic and financial plan, we embraced basically a run rate. And this is a matter of having in mind where we are in terms of setting up or opening up areas to produce coal. And then we have how advanced our work is on preparing the galleries, capital expenditures, what sort of resource -- natural resource base we'll have having in mind mining leave as well as retirement attrition, generally speaking. And so I think it would be best to call this the optimum plan.

Next question. Having in mind your production in October, does the plan of 13.5 million seem to be a conservative plan?

Well, that's true. October, we had a record-breaking level of production of 1.4 million tons. But to achieve that plan, there are a number of elements that were must in order to do that. So we can't build plans based on what happens in a single month because there are a number of other factors we have to incorporate. And so basically geological mining difficulties have to be factored in. And so that's why I can't -- we can't rely only on a single month.

So the 13.5 million ton production plan, does take into consideration some possible conservative estimates? So you might have planned -- possible, but not planned deterioration in geology and unforeseen incidents? To what extent do you have reserves or provisions?

Well, it's very difficult to assume for extraordinary events. But we have to anticipate certain events or circumstances and we have to organize our operations in such a way to think about things that have happened in the past. Well, we always have a certain margin of error included, but we're focusing on those efforts that would prevent those events from happening.

Next question. If we look at the long-term outlook, what are the strategic major avenues for the company's restructuring or reorganization?

Well, I'll respond to this question. At present, we're focusing on, not on strategic efforts, but on our current operations and stabilizing things and ensuring that our financial liquidity is secured. This is key to talk about the future. So we have to have a stable foundation. And this is what we're working on. That's number one.

Number two, as I said previously, this is a cost side thing. We have to be much more flexible on a cost basis. Because without having the flexibility, then we might have big losses. And without having funds set aside for a stabilization fund, we wouldn't be able to operate on this marketplace.

And what's key here and what's more strategic here is having an effective or efficient group. As I mentioned, strategically, we want to restructure the Group very strongly. We want to reduce the number of companies we need to have. And we only have [indiscernible] business support companies.

So our operations will be swift. And some people might think these are drastic decisions, but we have to go through a process to convert ourselves quickly into a lean organization. So it's a necessity.

What CapEx do you plan for 2026? What quantum do you want to reduce the annual CapEx in upcoming years?

Ladies and gentlemen, at present, we're working on defining our annual financial budget. And this means, of course, within the context of the restructuring plan. And so the decision has been made to finish up investments that were commenced, and we're thinking about new levels or new areas and fields of mining. Of course, we do plan to scale back our CapEx in 2026 as well as in subsequent years.

If we look at merging mines, what sort of savings does merging mines deliver?

At present, it would be premature to talk about savings or specific savings in terms of giving or stating a given figure. If we look at other mining enterprises, this is something that has to be taken into account. And we're working on a model that will ultimately be followed. So we have a separate southern mine section as well as northern mine section, and we're looking at the benefits.

We want to prepare the organization to function for many years to come in terms of our resilience to changes, in terms of technology operation, utilizing headcount and utilizing the mine pits and the mine deposits on a rational basis and reasonably. And so we want to coordinate our efforts and factor in, of course, natural hazards, we want to manage, manage our assets, our equipment, reducing admin functions. These are some of the slogans or topics that we have to have in mind as we do this work.

What are your planned cost savings in 2026 versus 2025? By how much does the management team want to reduce the company's operating expenses?

I can say clearly that we plan to achieve major cost savings. Since the work is underway, about 3 weeks ago, we started that process and we're working -- we're in dialogue with the owner, with financial institutions and other stakeholders, and this work is underway the entire time. So after we complete this planning process, then we'll know the details. Generally speaking, when I say significant savings, this is not something that's meaningless. These are expectations that we have to change our cost mix substantially or considerably.

What is the outcome of the work done by the adviser, [ A.J. Kearney ] where JSW terminated that agreement after working together for a year? How much money was spent on cooperation with the company? And how much do you think you'll be able to save, thanks to the ideas they've generated?

If we think about the work done by A.J. Kearney, we published a current report. But since we had the termination of that agreement with A.J. Kearney adviser, and we're revising or we're looking at the work on the strategic transformation, and so possible continuation and initiatives with the greatest potential and perhaps we'll have to revisit certain assumptions. This is all a matter of doing the restructuring with our in-house resources.

But I don't want to talk about the details because of some contractual relationships as well as the commercial secrecy under the agreement that we have to uphold.

Next question. Are you considering any type of capital support from external entities at all at present?

So ladies and gentlemen, the financial operations and the business operations have to take into consideration a variety of scenarios. So we have to be prepared for a variety of scenarios. And that's why we're working to have the windfall tax being reimbursed or refunded. So the company, as we analyze our position is looking at capital support from other sources. And this analysis, well, it has to be a market-based approach in terms of what about the funds that could be achieved from the market. And so we're looking at the ability to obtain funds support in terms of the European approach, CESG, so this is something that limits our capability quite strongly.

So we're penetrating the markets in order to secure additional funding from the markets. And that's why we're determined to change our costs to restructure things because potential investors or financing entities will want to see this company that would be able to generate a return in terms of the business that would be financed, utilizing their funds. So this is something we're working on. So we would not consider the fact. Work is underway on this subject.

Next question. Any other directions of restructuring, reorganization?

Well, I think we're really drilling down on the first 2 that have already been enumerated. And so we're involved in the remedial process that's quite profound, working with our majority shareholder. And we're working with the social partner. These are those avenues which have informed our restructuring efforts.

So we talk about cost restructuring. We're doing some remedial work, organizational work across the Group. So in terms of the owner, we're thinking about those expectations to optimize business processes and cost structures. Banks also anticipate and are asking about the return profile, what sort of profits we're generating within the business. All this is underway.

And we should mention the final outcome will depend on what we agree upon. And that's why we're determined and we're talking about making achievements across all of these areas in terms of our intended objectives or outcomes.

So if we don't strike an arrangement or an agreement, then we're going to have to look for other solutions and other avenues of restructuring. Nonetheless, as I've mentioned, I think it's possible to achieve a consensus here.

After 1 January, where will JSW source cash in order to fill in the gaps in the revenue? Have you already utilized all of the funds that you had in the closed-end investment fund?

Well, if we talk about the funds in that closed-ended fund, well, we still have funds there, some money there. And we have some plans in December to utilize that money from the fund, the closed-end investment fund. So we'll still have around 100 million unused in that fund. And this is a result of the security or collateral given to the credit structure.

Everything that we're doing, well, we have to ensure that funds will be generated through current operations. Since we can't determine or force the market to do something, that's why we have such a strong determination. We want to reduce the cost to make sure that our operations would generate a profit.

But something else I've also mentioned, we are working on identifying other sources. And so we have support from the owner. So I assume and expect that the support will materialize at the right time and we won't have any difficulties at the beginning of the year with liquidity.

Thank you very much. That was the final question.

In that case, if we've completed the Q&A session and the presentation, I would like to thank you very cordially for your attendance.

We are in a difficult and challenging situation, but it is my hope that you can see that we are endeavoring to utilize all of the opportunities available for the company to be able to operate in an undisturbed fashion. And we're doing a lot of work across the board. We're bringing order to the company, cleaning things up. And after this reorganization, we want the company to be a good, solid business partner for our customers and for this company to be a safe and certain place of employment for employees. This is our joint objective. And this is a conviction that we have as we enter into and perform our various activities. So thank you very much for your attention.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen. I would like to welcome you cordially to the earnings conference of JSW for H1 of this year. My name is Richardianta. I'm the CEO. And we will present today's results along with Jolanta Gruszka, who's responsible for sales, [indiscernible], who's the CEO; and Adam Rosmos, who's responsible for operational and technology -- technical affairs. We'll begin as a matter of tradition, with the slides we've prepared, and we'll end up today's session with a Q&A session.

Let's move on to the highlight highlights for the JSW Group in numbers. In Q2 of this year, our production of coal was 3.3 thousand tonnes, so 3,339,000 tonnes, which is up by 16.7% over Q1. Then if we look at coal production, we were at 706,900 tonnes. We're up by 0.5% over Q1 of this year. In Q2, we had nearly 21 active longwalls. So we were up by 2 versus Q1 of the current year. If we look at the MCC ratio, it was down to PLN 727.5 per tonne, which is down by 13%. Unfortunately, the market continues not to be [indiscernible]. So the prices of coking coal and coke continue to descend. So we see a decline of 8.5% for the average coking coal price. And we have a decline in the coke price by nearly 1.5% down to PLN 1,038 per tonne, whereas coal was at PLN 683 per tonne.

So EBITDA is still negative at 365.9 million tonnes, but it is a lower loss than we saw in Q1 of this year. So as I said, we're nearly at PLN 366 million in the negative with EBITDA. And then we have a net result of PLN 712 million, which is a lower loss than what we had in Q1 of this year. Then we can look at the operating results, and I'll give the floor to Mr. Rosmos at this time.

So if we look at coal production in Q1 of this year versus Q2, if we look at that comparison, we can see that we've been able to increase production by 16.7%. If we compare H1 2025 to H1 2024, we're up by 3.3%. We see that there is more coking coal being extracted. And we've also reduced the amount of steam coal. Sorry for turning off my microphone. So we have an increase of 2.7% in corridor works in running meters. So if we look at the amount of corridor works in the first half of 2024 versus first half of 2025, well, this is down by 11.6%. This was a matter of optimizing our CapEx for individual mines. Optimization means to focus on those corridors, those mining pits that will produce coking coal.

So if we look at coke production, we're up by 0.5% from quarter-to-quarter, down by 9.4% year-on-year. And I'll give the floor now to Madam Lantagluska to talk about the market environment.

So let me give you a short review as a matter of tradition in terms of what's happening on the market, what the market trends were during the reporting period, and then I'll sum up the sales in this period. On the steel market, we can see that there's growing uncertainty as a result of 2 factors. We talked about this previously, the unpredictable tariff policy of the United States and the growing protectionism that we see there. And then we also see growing exports of steel. So it's more than 58 million tonnes in China in the first half of the year, which is an increase of more than 9% over the record-breaking year of last year.

Unfortunately, the threats to the European market are much greater than what we could see directly coming from Chinese growing exports. So Chinese exports are squeezing out production from other domestic markets like Indonesia, which was not sending lots of quantities into the European market, and so they're not subject to certain protection mechanisms. Then we have Ukraine and Serbia, then we have European countries, which are not members of the European Union. And so they're not subject to the ETS system.

So as a result of the tough situation on the market, what we can say that certain decisions were made by European steel producers. So in the middle of the year, the total capacity of production in Europe, we have some 17 million tonnes which is the highest level since the end of 2023 in terms of shutdowns. So the situation has deteriorated. So the total quantity of blast furnace shutdown is more than 23 million tonnes of production than we've seen recent information about [ ArcelorMittal ] shutting down the plant in Dom. So generally, we can say that the sole producer that's increased production is India.

So they are up in terms of their production by more than 9% in the European Union, even though we saw some increase in production of 20%, the overall decrease was substantial. And so it's like 7.1% in other European countries. So what's important here is to look at the first half of 2020. Well, we can say the steel production is down by some 16% compared to 2020. And so this is the level of production in 2020. This was a pandemic period, a COVID period.

So the market situation has affected the prices of steel goods. In November of last year, so hot-rolled prices had rebounded from the lower level, which gave hope, but this trend ended in May of this year. In Q2, as we can see on the slide, the average price for the [indiscernible] was up by some 4% over Q1. But we can say that the sheets were down versus the similar period of the previous year. And if we look at long goods in Europe, we can say that there's more stability quarter-on-quarter. We had an increase by 3.4% for raws. But overall, this was down by 1.4% compared to the first half of the previous year.

If we look at the spot prices, where we have the prices being defined. There was a lot of inactivity. And so we can say that we were at $169 to $96. So we can say that the prices are affected by uncertainty of the tariff policy in customs policy in the United States. In the long term, we can say that there are some expectations about Indian export rules. So if you look at PLV prices in the first 2 quarters of this year, we can say that the prices for that Australian was around $180, $184, $185 for coking coal spot prices. In Q2, it was down by 0.5% compared to Q1, but it was down by some 24% compared to Q2 of the previous year. So if we look year-to-date, if we can compare the first half of this year to the first half of last year, prices were down by some 34%.

If we look at semisoft, we have seen more price volatility. And so the prices were around $103 for FOB in Australia, and they were down by 12% compared to the first quarter of this year and down by 32% versus the similar quarter in the previous year. So semi-soft prices were down by 27% in total year-on-year. And then let me give you a short commentary in terms of what's happening with coke. In the first half of the year, we were affected primarily by the quotas implemented by India.

These were import quotas. As we said at previous conferences, India wanting to protect its own merchant cokers has limits -- placed limits on imports of coke. And this is for met coke with a low amount of ash and this was extended until the end of the year on the 30th of June. So antidumping procedures are underway in India. And so we're one of the biggest exporters to India, but we're not -- we're not subject to these proceedings. And so for Indonesian met coke is now going to India and so -- and has 715,000 tonnes is what they sold to India. This is 3x more than they sold the previous year from Indonesia. And so this growth is driven by competitive pricing. And so the oversupply of coke, which is a trend that's very unfavorable to us, combined with aggressive pricing policy of suppliers from Asia, which means that the ratios are deteriorating, and this makes it impossible for merchant cokers to achieve a profit.

So if we look at the TLB ratio, we're coming down to 1 -- a ratio of 1, if you look at the ratio of prices between coking coal and coke. So if you look at the Chinese FOB rates, things have fallen from $212 to $178 at the end of June. So we can say that the average Chinese coke price was lower by 11.4%. This is what's happening with respect to blast furnace coke prices from Chinese coke. So we can say there's a substantial decline of some 31%. What we've emphasized previously in the European market, coke prices are usually higher than for Chinese coke prices. And based on the data, if we're looking at the imports into the European Union, we have a higher CSR than we would see in China.

So we can say in Q2, it was $244 per tonne, and this was down versus the previous quarter by 6.4%. So if you look year-to-date for the first half of this year, so imported coke prices based on the ARR worked deliveries. So this is down compared to the previous year. So based on this market commentary, we can take a look at what is happening with the prices commanded by JSW's products. And so as I said previously, I pointed this out on the previous slide.

So we can say in the second quarter, we have an impact on our prices from the period of January through May. And we can see the reference prices for Q2 of this year are down versus Q1 by 6%. And the ratios of our prices to the benchmark prices are 98%. So we have 98% of the reference price. If we look at coke price sold by JSW compared to the coke reference prices, we're at 106%.

Here, let me emphasize once again that the coke market where we are present has more customers in a greater geographic region. And so it's more difficult for us to get a better price compared to what's happening with the coking coal. But as we explained in the reports, we're comparing to the prices of coke delivered to the AR ports. So if we compare this to the first quarter, so the decline is roughly 5%. If we look at steam coal prices on the domestic market, we can say that the prices are regularly falling. And we can see this in the PSCMI1 index. So this is down by nearly 3%. And if we look at our steam coal price versus the index, there's not a major change. So we're roughly at 87% of the index. And as we explained previously, this is a result of our position on the steam coal market in Poland, on the domestic market in Poland.

On the next slide, we summarize the sales of coal produced by the group. What I would indicate here, I think we should focus on revenue to external customers. So they're down in Q2 versus Q1 by 9.4%. If we look at coking coal, it's down by 7% for it's down for steam coal by nearly 27%. And so if you look at the decline in revenue, this is a result of falling prices, as I showed you on the previous slide, so some 8.5%. But we can say that we had a slight increase of 1.1%. If we look at steam coal, the main reason for revenue falling is the fact that we have lower sales than in Q1. It's down by some 25%. And this is primarily a result of the seasonality on this market. And so steam coal prices are down by 1.5% in terms of quantities.

So we can say that the total revenue on sale of coal to external customers fell by 18.1%, whereas nearly 17% on coking coal and nearly 29% on steam coal. Of course, the key factor is falling prices. So it's nearly by 29% on coking coal and 35% for steam coal. The fall in prices has not been offset by the increase in the quantity of coal sold, which was up by 15%, 17% increase in coking coal and 11% in steam coal. And so if we look at the sales of coal to internal customers, this is linked to our coke production. And then we can move on to the slide about the sale of coke. If we look at the sales of coke and hydrocarbons, we are at a similar level in Q2 as in Q1.

And so the quantity of sales was similar. And so the average coke sales price was down by 1.4%. So if we compare the H1 2025 to H1 2024, we can say the revenue was down by 33%. And so we had a decrease in the average coke sales price by like 24% as a result of coke sales being down by 15%. Then we have the last slide about inventories. And here, we can see that the coal inventory at the end of Q2 was 1.6 million tonnes, a little under that, which is an increase by some 30% and over the beginning of the year, it's an increase of 10%.

So 950,000 tons is for steam coal. And so this is an increase of 13.8% over the first quarter. And so it's roughly 600,000, and this is an increase of 0.68%. Of course, we're talking about the inventories that we have in our mines and in the coking plants. And this is a result of the change in the production mix. And we've reported that because in the first half, we had 2 extraordinary events in [ Budrecuvisa ]. And then we had to adjust the sales mix as a result of these events. Coke inventory is at a minimum level, so it's 90,000 tonnes, which is an increase of roughly 22.6% and it's a decrease of some 40-odd percent from the beginning of the year.

That's it from my side. Thank you very much.

Thank you very much. Ladies and gentlemen, if we look at the capital expenditures of the JSW Group on an accrual basis, if we compare H1 2025 to H1 2024, the CapEx was down by 25.7%, and this is roughly PLN 630 million less. We were optimizing our CapEx as a result of realizing our transformation plan on an unwavering basis where we've identified the prospects for the upcoming years. We want to have greater productivity, and we want to increase the quantum of coal that the market wants to buy.

So we saw a decrease of 22.6% for capital expenditures in JSW. So this is a decrease of 63% in JSW Co, some PLN 43 million different. So ladies and gentlemen, if we look at the coal segment, which is in JSW itself, so we had in the coal segment, a decrease in CapEx for property, plant and equipment, expensable mining according to IFRS, and we had an increase in CapEx. And this is a result of following our policy. We were buying finished goods. So we're talking about the production longwalls in JSW. So we've done more there. So if we look at the capital expenditures in the group, if we compare the first half of this year to the first half of last year, we can say they're down by PLN 400 million plus, which is a decrease of more than 20%. And these declines are a result of pursuing our strategic transformation plan as well as our plan to do investments. If we look at Coke in this period, we had lower expenditures -- we also have some strategic investments that are being done there.

We should mention the modernization of battery # 4 in the Pan coking plant as well as the Radin expenditure. If we look at the JSW coal segment in the mines, we're pursuing strategic investments for each one of those mines to ensure that we're going to be able to open up new mining fields, the existing shifts, and we want shafts -- excuse me, we want to deepen the existing shafts. So thank you very much.

And then I'll give the floor to Mr. Alex.

Good morning, ladies and gentlemen. I'm here for the first time with you. So you can only do -- make a good first impression once. So please forgive me in terms of changing the method of presentation, I want to say a couple of words about myself. I'm a person from the industry, the mining industry and the energy industry. I've worked for many years in management boards as a director in these type of companies.

My main areas of responsibility are finance, project management, asset management, as well as organizing financing for large-scale investment undertakings. It seems to me that my skills and knowledge poised me to act with responsibility and deal with the finances of our company. Of course, this is a major challenge, having in mind the magnitude of this task and the magnitude of the problems we face.

Nevertheless, I believe that I should be able to grapple with this successfully. The current position of the company is very difficult. The current position -- situation stems from a large number of elements. And so my colleagues from the Board talked about that. We're talking about the market conditions. And here, we do not have influence over those factors. We also look at the exchange rate where volatility in the exchange rate has produced lower revenue on our sales. We also have the high OpEx in our company. We should not forget that on top of the external factors over which we have no control, costs are elements which we can. And this is one things that we have to deal with in the...

Even though we have this technical plan, business plan. So these are things that we have to deal with. So the consequences of decisions made several years ago in terms of paying the windfall tax in excess of PLN 1.5 billion also had an impact.

What the management has done up until now. Well, it's taken a number of measures that are structural in nature that have an extemporaneous impact. We've mastered a large number of measures to renegotiate contracts with our contracting partners. We've also optimized CapEx. This process has been undertaken and it's still underway.

So as you know, our expenditures have to be aligned to our investments and our production plans. A pilot program was for on the longwalls. This is something we should also mention. In the near future, we'll prepare a summary of the efforts we've taken. All of these efforts are linked to a core issue and object, which is to stabilize the financial position of the company.

Even though the stabilization will take some time. As my colleague mentioned, we do not forget about investments. Investments are way to a large extent, they are for augmenting the safety of our staff -- we're also keen on efficiency, productivity of the business we're running. Let me walk you through a few slides. What we would like to emphasize is that the effort undertaken by the Management Board is being intensified. We've asked the ministry to reimburse that windfall tax. We're working with the social insurance institution, which will improve the liquid the company. We're talking with banks.

Here, we should mention that banks have prepared an independent report or basically an independent report. Business report was drafted at their request. And we've presented a number of actions, which are indispensable for the company to be able to achieve financial stability in the near future. This is only a matter of reimbursing this windfall tax, but also reducing labor expenses. This is one of the parts that we have to do in the upcoming future. And all of these things have to be consistent or interconnected with one another in such a way, have to dovetail in order for us to achieve stability.

So let me refer to some of the data. I won't talk about, but I'll talk about those things, which are important from a financial point of view. First, if we look at sales revenue, if we look year-on-year, we can observe that the sales revenue has fallen. We have to understand what is the contributing factor. These are issues related to what Madam Kruska discussed, the market price and the volatility of the exchange primary factors leading to this situation. But by the end of the year, we our efforts to ensure that we have the proper volume of production, proper amount of sales revenue we get money.

If we talk about revenue, we need to talk also about EBITDA. Unfortunately, at the end of H1, our EBITDA is negative. And this level of PLN 1.6 billion more or less is not satisfactory, but I'll talk about that in just a moment. If we look at the net result, well, this is the compilation of our revenue and expenses. The net result is still negative. And despite the large number of measures taken, this market situation, the cost side of things do determine a negative result. So then if we look at expenses, I'm going to focus on expenses.

Here, we see a lot of potential.

So when we talk about reducing costs, labor costs, this is something that must be implemented as Maden, we're not competitive in terms of our pricing. We are cost competitive. If problems related to that, easy to work in a mining sector. We have deeper and deeper mines, more and more difficult working conditions. But with these costs, we're not able to compete. We can't be in our marketplace with these costs. So factors... Related to cost, if we look quarter-on-quarter, we can say...

Maybe they're not surprising because it's just the way the cost accounting works.

One good signal is the reduction of energy costs, reduction of materials, look at external services, this is a market impact. Then we have depreciation and amortization. This is something that's linked directly to our CapEx. The direction that we see here quarter-on-quarter I wouldn't say it's disquieting, but this is something that needs to change fundamentally. What we're primarily interested in...

Which is the mining cash cost. So converting the cash conversion cost for coke. So as we see, the mining cash cost has been falling. So that's a positive trend. But as I mentioned previously, this is not a sufficient decline. If we look at the cash conversion cost, unfortunately, we see substantial increase in this cash conversion cost. So the unit cost grew by nearly 20%.

So our management team will intervene profoundly. So JSW Coke's management team needs to scrutinize the cost side of things here. So if you look at EBITDA, the EBITDA drivers, this is something that also is of great interest to us. Here, we see the major drivers. I don't want to identify individual focus on every single driver. But if we look at the trends, we can say the trend is good, but all of our efforts taken as a whole are insufficient. If we look at the various segments and their contribution is pretty clear. We can see that the coal segment makes the major contribution. Here, we're not discovering anything new.

One of the things we have to do one of our jobs with -- as a management team is to optimize the group to make sure these segments are productive. And if they're not going to be productive, then we have to take suitable measures. And then we can look at working capital. I would draw attention to the net working capital because at the end of the day, we have negative working capital. This is one of the symptoms that something bad is starting to happen. If we're looking at the flows, the cash flows, between payables and receivables. And this is one of the reasons that we've made the decision to undertake additional efforts. One of the things that we're working on intensely right now is cash flow.

As I mentioned at the beginning, the situation of the company, its position is quite difficult, especially as in the near future, we will deplete the funds in the closed-end investment fund, and this will affect our ability to service our payables. At this point, it's absolutely necessary for us to focus our attention...

On utilizing instruments...

For the company to retain its liquidity, financial liquidity. So we started with revenue, and we've wrapped up this portion of the presentation with a discussion of cash flow. because the quantum of the cash we have and the cash flows themselves will depend to a large extent on volume and revenue and of course, costs. All of these external factors are outside of our control, where we do have control in the near future will be drained substantially. And so we need to find additional funds and at the same time, ensure that we are efficient, that we obtain a certain level of productivity.

So from my side, that would be it. So I would like to thank you for your attention.

Ladies and gentlemen, as we wrap up the presentation that we prepared for you, we have another slide, which is about the strategic transformation plan. And we want to talk about 2 streams of the strategic transformation plan. One is the efficient mine and the other is about procurement and capital expenditure processes.

So as of April, we implemented changes as proposed with respect to the proposed strategic transformation plan activities relating to incentive measures. In May of this year, we've added individual longwalls. And -- so we have longwalls as well as phases have been added where the geological and mining conditions make it possible to do so. And if we look at the results generated by those longwalls and phases that are incorporated under this plan, well, they have output that's up by 54%. Then if we look at the procurement and CapEx process, we've identified the ability to optimize another PLN 1.6 billion.

So ladies and gentlemen, this is where we would end the presentation we prepared for you today. But before we go on to the Q&A section, as a matter of tradition, I wanted to give some information, up-to-date information. We, today, the process of selecting the CFO has been completed as of tomorrow. Our CFO Mr. Alex will join us as the CFO, no longer as an acting CFO, but he will officially as of tomorrow, be our CFO. Then we can go on to ask for the questions people.

So ladies and gentlemen, let me go ahead and read the first question. What is the idea to finance activities of the company after you deplete the funds in the fees in the closed-end investment fund. As I mentioned, we launched a number of actions, a number of activities, measures whose short-term impact should enable us to achieve stability. These actions, as I said, are -- their nature varies. We want to cooperate with the owner as well as with the social partners as well as financial institutions.

So we're working intensively -- and all of this should enable us to achieve the intended outlook.

Next question. By when -- or up until when do you have money set aside to pay the salaries of the employees, which month in this year or next year?

Well, the company assumes that we have funds payments by the deadlines that are assumed having in mind our needs, we have to start profound cost restructuring. Thank you very much. When will the Management Board ultimately call off the intended outcome for the strategic transformation plan for 2025?

So if decisions are made by the management team, the management team will provide the necessary information to the market in the form of a current report as required. I want to tell you that as of Q1 of this year, intense work is underway in terms of securing the liquidity position, as Mr. Alex said, we're talking with us and our counterparties, business partners. And we've asked or submitted an application to get a reimbursement of the windfall tax. So the Management Board is doing everything it can, which according to the Management Board would make it possible to stabilize and improve the financial position of the company. Thank you very much.

The next question. Does the Management Board uphold the plan to have a run rate of 15 million tonnes in 2026, in line with the strategic transformation plan -- ladies and gentlemen, we are planning next year's output. We're analyzing the schedules for utilizing mine longwalls in the various sections in various mines, having in mind the one-offs that took place this year and looking at what's happened with the strategic transformation plan, we're ending that process, and we're preparing the business plan for 2026.

Next question. Could you update the plan for 2025 since you had force majeure at dissatisfactory or unsatisfactory production results in August 2025. So we should combine 2 events, what happened in August and the fire that took place in the [indiscernible] mine and the volume we lost as a result of that one-off that's 60,000. So we continue to declare that this year, we should be above million tonnes. What is the impact of 3 force majeures on next year's production volumes?

Ladies and gentlemen, so one-offs in the form...

We've seen like in January of this year with [indiscernible] event and having in mind some of the prevention work that we've done to reduce the methane risk or the fire risk that have a measurable impact on the current year as well as on upcoming years.

So we're doing everything we can to return to those longwalls, which were sealed off temporarily. So it would be difficult to say when this would happen. So let's begin from the end. If we look at what happened in [indiscernible] and the fire or the increase in the fire risk, where we seal that off?

Well, the plan is for next year, which is 200,000 tons of coal plant for this next year. If we look at [indiscernible] or sealing off one of those longwalls, we plan to return to that longwall in 2027. So the loss in 2026 is roughly 100,000 tonnes. Then we have, this is the most difficult topic, having in mind the size of that event. So I would say very cautiously. So the events of January of this year and their impact, this is around 150,000 tonnes. That's the total impact. So the company has started a new longwall in BW Budrec with 1.6 of coking coal resources.

Over what period do you believe that this longwall will start to generate a real net profit. So we need just to open up a longwall. We have to be able to open up the longwall and then we have several hundred meters to a kilometer anything is to preparing that mine to be shut down or that wall to be shut down. So -- this is which will be a breakthrough in the Buderk might be the coal seam and the parameters that we're going to be able to achieve there. So this longwall under our plan should give us 4,000 tonnes per day. The only limitation we see is a methane risk.

Let me remind you that the amount of methane is substantial. So we are trying to solve that through prevention. And so we want to have an output of 6,000 tonnes per day. Thank you very much.

The next question is a clear limitation of CapEx, the annual savings, will this not affect the mine in the future? What sort of CapEx should we see in the upcoming years, both across the group as well as on individual mine basis. As we optimize CapEx and limitation, we talk about limiting CapEx. We're not shortcutting ourselves in terms of safety or the future of our mines.

So as part of each one of our sections of the mines, we have key tasks, which over the upcoming years means we'll have new seams, new levels, and we'll have a large number of longwalls to mine in the future. Having in mind the amount of CapEx, I don't want to talk about that right now because we're wrapping up our work on the financial model for the period 2025 to 2030. Thank you very much.

Next question. The methane regulation enumerates or events a lot of uncertainty about the future. over the next upcoming years, what is your expectations for that? What sort of technology for utilizing methane? What sort of technology is your priority? And what sort of funds have you secured for that work on those technologies? So if you think about the methane directive and limitations because of the methane emissions, this is a subject that we treat very seriously at JSW. And having in mind these legal curtailments, it may be possible that certain fines will be assessed if you exceed certain emission limits.

So we are extracting a critical raw material. So there are no penalties or fines at present, but we do have to report those overruns or breaches. So there's a large number of preventive efforts underway and investment efforts underway. So we're thinking about capturing methane in the rock mass in order to be able to continue doing our work to ensure that we can have more mine walls, longwalls -- and so we want to pipe out the methane, and we want to utilize that methane after we put it into pipes.

So of course, the assumption that there will be a ban on emissions. So we want to use more and more of the methane commercially as possible. We have good experience in terms of the ability to build a module to generate electricity. We're talking about gas-fired turbines or cogeneration turbines. So to utilize that methane for other purposes. But the topic about methane originating from mines as a part of the air shaft. Here, we're working in several projects about the ability to capture methane in the air shafts. This is difficult because the methane concentration is very low.

So we have to have different technologies in terms -- capable of capturing that, but doing that on a commercially viable manner.

Next question in the press, there was a proposal for JSW to utilize a voluntary redundancy program. So employees would be moved to the PGG mine, which is supposed to be liquidated, and this would make it possible to utilize the voluntary redundancy program and utilize the state the management Board to scrutinize this proposal and what other proposals are being analyzed.

Ladies and gentlemen, the Management Board has analyzed that concept. Generally speaking, the management is looking at all of the possibilities afforded by the current legal regulations. So an application was submitted to the Ministry of State Assets for the company to be subject to these type of regulations. So these type of scenarios are, of course, analyzed by the management team on an ongoing basis. Thank you very much.

Next question, does JSW is it part of the program, the government program to reduce headcount in the mining sector? Do you have your own plan in terms of which -- how many miners could take advantage of this program without doing harm to the company.

Ladies and gentlemen, having in mind the current state of legislation, JSW is not part of that program. That's the first thing. The second thing is we still do not have the final version of that law. So that's why we haven't been able to do any surveys with respect to any of the potential that might stem from that.

The next question. The steel industry's position is quite difficult. We don't see a lot of positive things coming out of the low prices and the low exchange rates. Is the image of JSW improving with respect to its business partners, having in mind what's happening.

So ladies and gentlemen, we can say the European market for steel has a difficult position. As we said during our presentation, we also know that European steel works are trying to have some internal market protections against steel imports as of January of next year, we'll have the CBAM coal tax on the border, which may improve the situation.

Unfortunately, the coke market is not protected with any mechanisms whatsoever. As I said during the presentation, Europe is the target market for Indonesian coke producers once India shut down its market. But working together with our business partners is done with long-term contracts where we talk about volumes or price structures, discussions about next year are difficult, having in mind the uncertainty, but our talks are constructive. The vast majority of our business partners have worked together with us from the day when the company was set up.

So we've learned how to strike an agreement even when we're dealing with crisis like situations. So we have an open and transparent communication policy with one another. We exchange information about our strategic plans, our operating plans, operational plans, having in mind all of the doubts and worries we can have from the marketplace. We don't surprise one another with our decisions. So our cooperation -- collaboration is open, and we exchange information and build our position together on an open and honest communication. And so we want to remain -- continue to be this type of supplier. We are talking to our business partners as we talk about our desire to stabilize production of coking coal and coke, both with respect to the quality parameters and the quantity parameters. And this is something that gives us a position to look engage into the future with a certain amount of optimism that we're going to be able to stabilize those things. Thank you very much.

The company in its reports talk about the positive impact of incentive mechanisms, having in mind the business plan in subsequent months, will you communicate these type of efforts? And what are the costs of running that program this year?

Having in mind the strategic transformation plan, there are a large number of elements, which should improve the position of our company, one of the projects is the efficient mine. We want to improve our yield, optimize the utilization of equipment. And the overarching objective is to encourage all employees to participate in this change process. And so we have an incentive plan for employees who are on the front.

So those employees who are working in direct production efforts. And since April of this year, this has been expanded to include other groups involved in, let's say, corridor works and additional works basically to put in new work shields and then the liquidation of these longwalls once mining is complete. So we can brag about some of the effects we've been able to improve the productivity. But of course, we have to do an overall summary and then make a decision about that.

Well, the efficient mine project, where we have tens of initiatives, I'm confident that we're going to continue this one. So the incentive pilot will have a positive opinion from my side and certain things will need to be tweaked or changed or modified. But this period of summary is something we still have in front of us. Thank you very much.

What's happening with the mechanisms to support financial liquidity, what's happening with the deferrals of ZUS payment, social insurance contribution payments. If we talk about our talks with the social insurance institution, US, based on yesterday's decision and the current report we published, we can say that these negotiations were successfully brought to a conclusion for another 3 months. We're analyzing our financial position or is analyzing our financial position very -- with great scrutiny. These are tough negotiations. If we talk about the reimbursement of the windfall tax, as I mentioned, we're working on it intensively to define an instrument that could be utilized here. A team, a task force has been appointed from a variety of ministries from the Ministry of State Assets and the Finance Ministry. So this work is very intense. It's very difficult. But at the same time, we're looking for an instrument that would not put us on the litigation path because there's nothing will come with litigation.

So we're preparing a solution. And so we're working on this quite intensively to persuade the ministers that this possibility does, in fact, exist. Thank you very much.

The next question Recently, in response to a question posed by an MP that the state Asset Ministry is supporting JSW in its efforts to recover PLN 1.6 billion windfall tax. Where are you with that process in that procedure? Could you give a commentary?

The only thing that I could add to response -- to my response to the previous question is that we do have -- enjoy the support of the Ministry of State Assets. And he was involved or inspired the appointment of a task force. If we think about the timing of this process, it would be difficult to find an end date thinking that the reimbursement or refund should be made at the beginning of next year, and that's why the work is so intense. And that's why we're looking to identify an instrument that could be put forward for use.

Of course, one should have in mind that the budgetary position of the country is quite difficult and discussions with the Finance Minister are not easy. And this is probably something that our colleagues from PGG have noted where there was a rejection to issue securities by the state. And so we're working on a systemic basis, and we want to put forward our proposal of the solution to the ministers.

Thank you very much. That was the final question we had received. Thank you very much. If there are no other questions, we would like to thank you very cordially for your attendance, for your attention. And so I would encourage you to visit our website to review the information we've published there. Thank you very much, and I'll say goodbye. Thank you very much, ladies and gentlemen.