- We see further, very concrete effects of the Strategic Transformation Plan. In addition to previously reported measures, we are implementing a plan that improves efficiency and finances, and organizes and simplifies the operation of the entire Group. We will continue this direction - concluded Ryszard Janta, President of the JSW SA Management Board.
As a reminder, in April this year an incentive pilot program was launched at 5 selected longwalls. At the end of May, the results achieved were in line with assumptions - coal mining exceeded expectations by more than 277,000 tons and the progress of work in the pilot working faces exceeded 600 meters of workings. Therefore, the project has been expanded to include 12 more strategic working faces. The effects of the Pilot Program achieved in June, according to preliminary estimates, have also produced tangible benefits.
However, it should be emphasized that the work carried out under the Incentive Pilot Program is carried out in compliance with all safety standards. Crew safety and continuous improvement of OSH are basic conditions for qualifying longwalls and working faces to participate in the incentive pilot.
It is worth mentioning what has already been achieved. At JSW, in addition to increasing production, effective cost-saving measures are being implemented. In the area of procurement, the measures taken under of the Strategic Transformation Plan have yielded tangible savings of more than PLN 307 million as at 22 May, which is as much as 85 percent of the target amount for the entire year 2025. In the area of investments, the effects are even more impressive - savings have already exceeded PLN 1.2 billion. Work is currently underway to further optimize expenditures on longwall outfitting, expensable mining pits and other capital expenditures.
At the end of April this year, by a decision of JSW’s Management Board as part of the Strategic Transformation Plan, an initiative to optimize and economize on material procurement at mines was launched. The first results of the implemented measures are promising. In the period between the launch of the initiative and mid-June, the amount of approx. PLN 29 million was saved in this way.
It is worth noting that in June, JSW's Management Board appointed a committee to assess the viability of further implementation of specified contracts. Its tasks include reviewing the Company's current contracts and assessing the viability of implementing new purchase requests. The main objective is to implement the "Ongoing Verification and Control of Purchasing Expenses" initiative, an important component of the Strategic Transformation Plan. This allows JSW to better manage costs and make more informed investment decisions.
In the JSW Group, intensive work is underway to update the JSW Group Code, which defines the principles of cooperation and operation of companies. At the same time, policies, procedures and the reporting system are being analyzed and simplified to eliminate unnecessary bureaucracy and create clearer operating rules. A review of the reporting system in place at the JSW Group is also being conducted to eliminate duplication of information provided. The overriding value of this project will be to create a simple, unified system.
In addition, in May and June work began on implementing open-book principles and standardizing pricing in contracts with selected subsidiaries. The aim of these measures is to improve the financial and operational efficiency of the entire JSW Group. Special working teams composed of employees of Jastrzębska Spółka Węglowa and representatives of Group companies have been established for this task. Their task is to analyze the data necessary to develop a new pricing model and new costing within the JSW Group. Of the 11 Group companies based on size and materiality criteria, 8 were selected for detailed analysis and divided into two groups. In May, the work of the first group, including JZR, PBSz, JSW Szkolenie i Górnictwo and JSW IT Systems, began. The working teams have already held their first meetings and are conducting ongoing analytical activities. The target result of the ongoing work will be the preparation of a new type of contracts based on the open-book principle, which will enable transparent and effective settlements within the JSW Group.
