Good morning, ladies and gentlemen. My name is Ryszard Janta. I'm the CEO of JSW S.A. I'm very pleased to be able to welcome you to the Results Conference for JSW Group for Q3 and the first nine months of 2024. So today we would like to present to you the results along with our CFO, Remigiusz Krzyżanowski. We'll also have the development deputy CEO, which is Jarosław Kluczniok, as well as our technical and operational director, Mr. Adam Rozmus. Ladies and gentlemen, before we begin with the merits of the conference, I want to give you two pieces of information, quite brief, because Jolanta Gruszka is not present. So when we talk about the market environment, so Adam Rozmus will discuss that today.
The second piece of information, as you certainly know, a few days ago the company reported that it is beginning the process of a strategic transformation process. This is very important information about the directions of the company's operations for upcoming years. And so having in mind today's conference, we'd like to leverage that opportunity after we discuss the normal results slides. We want to talk with you about some of the information about our plan, what is the potential, what are the borderline conditions, how the results will be spread over time, and what are the major pillars and streams of activity. So let's go back then to the earnings conference, and we'll begin with the key highlights. So when we talk about coal production in Q3, so it was 3,053,000 tons. This is an increase quarter and quarter of 6.4%.
Coal production in Q3 was also higher by more than 11.6%, and it came in at 812,500 tons. In Q3, the average number of active long walls was 25.3. This is also a number higher than the previous quarter by 16.6%, so our fundamental ratio, which is MCC, is down, so in Q3, the cost of extracting one ton is PLN 782.83, which is down by 13.3% over the previous quarter. If we look at prices of coke as well as coal, they're down, so it's down by 9.6% in terms of coal to PLN 854 per ton, while the coke price is down by 5.1% to PLN 1,305 per ton, and that led to a diminishment in sales revenue to PLN 2.69 billion. EBITDA in Q3 was PLN 57.7 million, and our net result was negative at PLN 308.9 million.
Now I'd like to ask my colleague Adam Rozmus to talk about the operating results of the group, so if you can give me the directional device, so ladies and gentlemen, as we compare the nine months of 2023 with the nine months of 2024, we can say that extraction is down. This is primarily a result of some fire in Pniówek, and we at the turn of 2023 and 2024, and then we also had a fire in the Budryk mine, and so the measures we've taken in order to remodel those mines have led to a situation that if we compare extraction in Q2, which was much lower than Q3, we can say that we've noted a substantial increase, so basically our measures are producing results, and so that means we have a higher number of active long walls in Q3.
This is similar to what we saw in 2023. This is the proper direction. If we look at the cut-through works, so we had some optimization done there. We had to do some more cut-through works as opposed to the production in order to be able to open up longwalls on a timely basis. Ladies and gentlemen, if we look at coke production, if we look at the first nine months of this year versus the first nine months of last year, it's down because of some of the production-related reasons. If we look at Q3, we have an increase. This is the expected positive direction as a result of leveling out our production. Ladies and gentlemen, having in mind the market environment, we have some slides about steel production.
Global steel production, raw steel production, is down by 9.5% across the globe, and it's down to around 440 million tons. In the EU, steel production in Q3 of this year is down versus Q2 of this year by 10.5%, and it's fallen to 30.6 million tons. If we look at steel prices, we can say that we have some stagnation in China and the crisis in terms of real estate. That means that Chinese steel producers have to export more steel goods. This major increase in exports, especially to Asian countries, means they're sending more to European Union countries, and that means that the European steel milling industry has a negative impact in Europe. We can say that there's limited demand.
If we look at the European motor industry, automotive industry, which is the key consumer of flat rolled steel, and it's particularly affected by this softer demand as well as the fierce competition from electric vehicles from China. Ladies and gentlemen, this topic in terms of the European market and the demand for flat steel, this is something flat rolled products, that's something that I've already discussed. Now we can talk about coke demand in Q3. We saw, coke and coal prices were down because there was an oversupply on the global market. If we look at what's happened in this situation, we've had basically less activity amongst the Indian buyers. We had price down to $180 in September. The last time that we saw that was in the middle of 2021.
At the end of September, we can see the coke and coal market basically started to move up because of greater demand and purchases by Chinese players, and so we can see that premium global on the 30th of September was above higher than $204, so it came back up a little bit. Now, if we look at the slide, which depicts the relationship between our group's prices and global prices, so we have a price formula based on benchmark prices, and so basically we're able to level out or equalize the pricing to ensure that there's less impact, volatility impact, so if you look at the daily quotations, we have basically a reference price, which is negotiated with the buyers, and so we draw the average for hard premium volume.
We can say that the way in which these prices are averaged, we use the average, we use the reference prices, we use the quarterly prices based on the average prices from the previous quarter, and we have the monthly prices based on the averages from the previous month. And so this change will not change the reference period or the benchmark period, which is depicted on the graph. We can say that we have the impact of five months from the previous quarter and the two first months of the current quarter. Ladies and gentlemen, in Q3 of 2024, we can say that the coke and coal prices of JSW moved up by 10 percentage points with respect to the benchmark price, and that's because we've improved the mix of coal grades sold.
We have Pniówek, Borynia, and Zofiówka grades being sold in the overall mix to a greater extent. If we look at the coke with respect to the Premium Low Vol, we can say that if we make the comparison to European blast furnace coke prices, it's down to around 87% that ratio. It's more difficult in coke as opposed to coal to find a uniform benchmark, which you can reference the price that's commanded by JSW. We compare basically the average price of all the coke grades sold by JSW, and we compare it or draw that comparison against the blast furnace coke sold on the European market. We also have overseas markets where there was a decrease in prices, and so the prices are set on that market, having in mind what's going on on the overall market.
We can say that all of these things impact the coke prices. This is something that we've treated as the benchmark. If you look at steam coal prices, so JSW with respect to the PSCMI ratio, so basically there's a large amount of surplus that's been imported in previous years of steam coal based on that data. We can say the production of electricity from January to September of this year is up by 3% compared to the previous year comparable period of the previous year. Basically the amount of coal used to do that production is down by 10.7%. We're basically. We have to compete with the typical suppliers of steam coal, and we're just one of the smaller players. The ratio that we've achieved was 94%.
So, ladies and gentlemen, if you look at the sales of coal to external customers in Q3 versus Q2, so it's up by some 80,000 tons, so it's up by 12%. But if we look at coke and coal, it's not on a slide. It's up by 34.6%, and this has made it possible to maintain the similar level of revenue as in Q2, despite the fact that coke and coal prices were down by 10% and steam coal prices were down by 5%. If we look at the year-to-date figures of this year, so it's down by some 34% compared to 2023. And so we had a lower volume of coal sold, so it's down by 17.7%. And then the price is down by nearly 17% for coke and coal and 36% by steam coal.
So we can say from January to September, the overall decline was by some 55%. And so we have this in mind as we look at the supply of products. And so if you look at the sales of coke Q on Q, it was down by 3.2%. The average coke sales price was down by 5.1%. And so then basically coke and hydrocarbons revenue sales were basically down by 7.5%. So if you look at January to September, so we had a similar level of sales of coke to external customers, but prices were down by nearly 13%. And that means that the revenue on the sales of coke and hydrocarbons to external customers was down by 16.3%. Now if we look at the inventories of coal and coke in the JSW Group, so sales were down by 3.2%, prices were down by 5%.
We had that the total impact down by 7.5%. As I said, if we look at coal inventories, coal inventories are up by 9%, and this is with respect to steam coal. This was 868,000 tons. If we look at coke and coal inventory, it is down by some 27,000 tons. This also takes into consideration the technological contingency supply within our group. Ladies and gentlemen, the next slide is about our investments as part of the group. If we make a comparison of Q3 2024 to Q2 2024, the CapEx incurred in the group was down by 40.7%. This is PLN 562 million less. In the coal segment, we had a decline of nearly 40%. Investment construction was down by PLN 44 million, and to purchase variable goals was down by PLN 72 million.
And then to reinforce long walls is also down, and they were down by 3.8%. And we were down by minus 357. So in the subsidiaries of the company, the expenditures were down by 52%. And so we can say that the coke and Battery number four had a decline in its CapEx by 5.4%, also in Radlin. And so it's down by 5.7% in terms of other investment tasks as well. So if we make that comparison of the first nine months of this year to the previous year, we can say that CapEx is higher by some 5.8%. And that's because we had more spent on investment than we had. So basically the IRS, and then we had the cost of external financing. And then we had a clear decline in terms of the purchases of ready-made durable goods as well as the expendable mining bits.
Under the coke segment, we can say that investments were down in Radlin as well as in the Przyjaźń coking plants. So making these optimization efforts in terms of our investments, this is something that ensues from the position of the JSW Group, but this does not impact our strategic investments for the functioning of our group. And we're fully aware of their level, and this will reference the production capacity of the group in the upcoming years. So thank you very much for your attention. So welcome, ladies and gentlemen. As usual, or as a matter of tradition, after having listened to the operating results and what's happening in the market environment, what's the market context, now we can take a look at the impact exerted on the finances of JSW Group.
Later we'll make comparisons between Q3 2024 and Q2 of this year, as well as the nine months year to date. If we look at the first slide, it shows us sales revenues. We see a slight decline of 2.6% in sales revenue to PLN 2.69 billion. If we look over the first nine months year to date, sales revenue is down by 26.1% to PLN 8.8 billion, nearly PLN 7 billion złoty. What is the impact on a net of non-recurring events in Q2, sorry, in Q3 2024? And if we make that comparison to Q2 of this year, we can say that it was PLN 57.5 million. And if we look at the first nine months of the year, it was PLN 887 million złoty.
If we look at Net Working Capital, including our closed-end investment funds, let me remind you that's in long-term assets in the balance sheet, but it's something that's available on an ongoing basis to the company, and we tap into that when there's a need to do that, and since operating revenue is down, that means that we have some liquidity gaps, so if we compare the two dates of 30 June of this year and 30 September of this year, we can say that Net Working Capital is down from PLN 5.1 billion to PLN 4.1 billion, and this is a result of tapping into those funds. If we look at the net result, Q3 of this year is a net loss of PLN 308.9 million. Year to date, we have PLN 6.37 billion minus.
The major impact is linked to write-downs of non-financial write-downs of non-current assets. If we take a look at what contributed to this revenue change, if we look at what happened in Q2 of this year, sales revenue was PLN 2.77 billion, almost PLN 2.76 billion. Sales revenues in Q3 were PLN 2.69 billion. The negative impact on sales revenue, we can say this was primarily a result of the impact exerted by coke and coal price change. If we look at the impact of the coke segment, there is a volume-side impact as well as a price impact. That is PLN 33 million and PLN 52 million in both cases. Those are negative impacts.
If we look at some of the positive impacts, things that contributed to the sales result, so we can say the impact of coke and coal sales volume, so we were increasing production quarter on quarter, and then we had the impact of steam coal sales volume also exerted a positive impact, made a positive contribution, and then we had the impact exerted by revenues on other sales, which was nearly 22 million PLN. So now if we look at expenses by nature, maybe this time I would start with the nine months year to date versus the nine months year to date last year, so it's down by nearly 1%, and so I was starting at the 11-month figure because it would be good to look at what's happening quarter on quarter where the change in costs is bigger.
So it's down by 10.5% to PLN 3.7 billion, whereas it was down to PLN 11.7 billion for the first nine months of the year. This somehow confirms a good trend. So the work that's being done to reduce fixed expenses, if we look at the bridge, what are the most important impacts of cost by or expenses by nature? So the negative impact is exerted by consumption of energy and other costs by nature, which is also PLN 10 million. The positive impacts are coming from depreciation, amortization, indubitably because of some of these write-downs of assets. And then employee benefits are down by PLN 188 million. So this is something that's reduced expenses by nature. And you remember this is a matter of the one-off bonuses that were issued or paid on an accrual basis in June. And then we had consumption of materials down by PLN 75 million.
That means right now the costs in the quarter were PLN 3.7 billion in Q3 2024. If we look at some of the parameters that the company as well as the group are analyzing or tracking, we're talking here about the mining cash cost and the cash conversion cost. I'll begin with MCC. We've presented this information at one of the earlier slides. If we look at the comparison of the first nine months year to date, we still have an increase of 13.7%. It comes in at PLN 805 per ton. If we look at the quarter-on-quarter comparison, we can say that the trend is downward in MCC. This is something that we would consider to be a positive outcome. It's down by 13.3% to 780, almost 3 złoty per ton.
If we look at the cash conversion cost, here we have insignificant changes within the framework, within the range of roughly 1% over the first nine months of the year to date as well as the last quarter, so we're around PLN 312 per ton in terms of the cash conversion cost for coke. If we look at the categories or classes that exerted the biggest impact below, you can see the mining cash cost. So what made a positive contribution? Basically, the expense impact was positive in terms of PLN 65 million, so it reduced the mining cash cost, and also there was the volume impact, which gave a PLN 55 million. If we look at the cash conversion cost for coke, we had the expense impact, which was negative at PLN 33 million, and the volume impact was PLN 32 million.
And that's why the cash conversion cost at the end of Q3 or in Q3 is PLN 312. And so here we have a more detailed cascade approach. And so we have consumption of materials, energy, external services, employee benefits. So basically, a number of these categories had a very minimal impact on our mining cash cost. But what exerted the biggest impact was employee benefits and the volume impact. They were exerted a positive impact. And that's why the mining cash cost at the end or in Q3 2024 was PLN 783 per ton. And so we have a bridge also for the cash conversion cost of coke. And here we had a number of factors that were negative. And so employee benefits, taxes, and charges. So this is PLN 26 million and PLN 10 million. Then we had admin expenses, which was PLN 3 million.
Then we had a reduction of minus depreciation and amortization. So that admin expense impact was 3 million PLN. Then we had the volume impact, which was positive, which is 32 million PLN. And so that gave us an outcome of 312 PLN per ton of coke produced. So if we think about the EBITDA drivers, so if we look at 2024, so the impact of impairment was 6.27 billion PLN. So the EBITDA at the end of Q3 is 57.79. So this is the EBITDA that has been adjusted for one-offs and as a result of the impairments of non-financial, non-current assets. And of course, that had the biggest impact. And the impact of cost by nature was 435 million PLN. If we look at EBITDA by segments, we can see the impact exerted by the coal segment and the coke segment.
We had the consolidation eliminations within the group, which was a negative PLN 1.25 billion. That means at the end of Q3, we have the exact same EBITDA, net of non-recurring events at PLN 57.7 million. If we look at the net working capital, including the investment funds, we had basically a number. We had inventories, trade and other receivables, cash and cash equivalents, and then the investment fund. We had a number of adjustments because we had trade liabilities. Then we had loans and borrowings of PLN 520 million. Then employee benefit liabilities, PLN 289 million, lease liabilities, nearly PLN 260 million. At the end of the day, we end the quarter with a net working capital, including the money we have in the closed-end investment fund. We have PLN 4.2 billion nearly.
To wrap up the financial portion of the presentation, we can look at our cash flow. At the end of 30 June 2024, we had 1.25 billion PLN. We end 30 September 2024 with 770 million PLN in cash flow. The biggest impact was exerted on the negative side by the loss. We had a loss of 362 million PLN. We had 229 million PLN as a result of cash flow and investing activity. The payment of loans and borrowings was negative of 209 million PLN. We had the change in inventory, which is 118 million PLN. The negative on the positive side of things, we've already presented them. Depreciation and amortization, 331 million PLN, 203 million PLN is the change in trade and other receivables.
So that means we've done quite a bit of work to ensure that we are able to recover our receivables more effectively. If we look at the, we have a positive impact of PLN 27 million in terms of change in trade and other liabilities. So that had a good impact on our cash flow position. And that's why we're able to wrap up the quarter on the 30th of September 2024 with PLN 779 million. Thank you very much. Well, thank you very much. So that's all of the information about the earnings in Q3 2024. But having in mind what we said at the beginning of the conference, we want to share with you some of the key highlights about the transformation plan. So thank you very much. The last two weeks were very important for the work of the management team as well as the future of JSW.
And so we've made the plan or the decision to implement or approve a transformation plan and talk about its implementation. This is the long-term plan, and the full management team has signed off on it, and we're convinced of its implementation. And so this is something that's going to take place over the next three years. So on the first slide, we want to talk about the borderline conditions that the management team has identified for the implementation of this plan and based on what were the goals of this plan. So the key assumption is that this will be done in compliance with the safety regulations, mining law, and labor law. The second goal the management has is that we would not reduce headcount.
So in terms of the mining segment as well as the conversion segment, we would like to support our employees in terms of motivations as a management team. We looked at the transformation plan. We were looking at the core business, which is the production of coking coal. So according to the European Union, this is a critical raw material. And if we think about the steel industry, the future of coking coal has a positive role to play in the upcoming period. And that's why the company will maximize the potential it holds in terms of delivering this product to the market. The next thing is the ability to implement the transformation plan utilizing internal regulations. We might have to modify or rebuild some of those internal regulations. And so we want the company to be able to operate in the new environment.
So if you think about some of the priorities, this is a result of what we've said during today's conference about our financial results, as well as having in mind information that we've provided in previous periods. So the goal of transformation is to stem the tide of negative cash flow, which has appeared in the recent period in JSW. And we also want to identify key initiatives to restore, regain profitability in the core business of JSW. So we're talking about the mining segment as soon as possible. So the ambition of this plan is to change the long-term position of the group or the company. And in the long term, this should enable us to launch the next phase of development.
So we'd like to diversify the company's revenue by making investment decisions, enabling the company to generate positive cash flow and to be able to obtain debt funding. And so if we look at the details, the specifics, the transformation plan, there are six pillars. And so the key area is in the core business of our group. So this is the mining segment. And when it comes to the production of coking coal, we call this the efficient mine approach. We have a number of initiatives to improve quality and preparatory works to ensure that all of our production efforts would be done in a qualitative and efficient manner. And these initiatives should change the philosophy of how this work is done and how we will pay for that work. So we want to maximize the potential during this transformation plan execution period.
We want to minimize downtime and shorten the time between shifts. And this should enable us to utilize the assets we have where we've invested in those assets and will continue to invest as we've done over the last few years. So on one hand, we want to avoid downtime, and we want to improve the maintenance. At the same time, we want to optimize and utilize the metering and automation of what we've done in previous years. Another key element on top of those four key areas of the efficient mine, we want to take a holistic look at procurement and capital expenditure processes. And we want to talk about the way in which we make investment decisions as well.
So this is an area that should generate a little bit less revenue in terms of the numbers figures I'll show you in a moment, but it's quite key in terms of tweaking the philosophy, our mindset, and how we run the business and run our investments. And the sixth pillar is the change in the group and changing support functions. This will take the longest amount of time. It will produce the least financial impacts, but it's key in terms of changing the culture of the organization and preparing it for the long-term development of, which is basically revenue diversification. So on top of the core portion, which I just presented, the six pillars of that efficient mine, then we have the support areas.
They're necessary in order to change the culture of the organization, to develop the culture of the organization, and to change the philosophy of how we do business. As we said previously, we're, as a management team, profoundly convinced that JSW that produces a critical raw material in the EU, having in mind the decarbonization policy, we have a place, a role to play on this market. It's quite an important role. It's important to be able to develop or to deliver the critical raw material, which is for the production of steel, which is necessary for decarbonization, not only in Poland, but across the European Union, but also in the industry. This is a process that will continue to move forward.
If we think about our goals for Sapar, we want to identify and achieve synergy in terms of sharing knowledge, exchanging knowledge, so basically transfer of knowledge between the mines and the various sections of the mines, so as the effects will be linked to rebuilding the motivation system, this will be integrated with the priorities identified for the transformation plan, and the ambition of this management board is that the communication with internal stakeholders, of course, employees are the key players for this transformation, and then we have the financial institutions as well as our partners. We want that communication to be transparent and clear to ensure that there will be a good understanding, good common understanding of the goals that we've set out to achieve, that we set out to achieve. In terms of the financial impact, so the total impact is estimated to be PLN 8.5 billion.
We'll maximize that impact in 2026 and 2027 when, as a result of changing the philosophy of running extraction business, this is where we're going to have the greatest contribution. So the major contribution will be through investments and rebuilding the procurement process, as I've indicated previously. So if we look at the details of these figures, we can say that the transformation doesn't anticipate that we're going to make changes by leaps and bounds. Rather, this is a long-term approach. And that's why the effects of these changes should be equally distributed across each one of these years. So roughly PLN 3 billion of impact in each one of the three years, 2025, 2026, 2027. So the cost of the transformation and the cost of preparatory works linked to extraction will be slightly higher.
So on the next slide, we show you the impact of the various components broken down by year. As I said, in 2026 and 2027, we want to maximize the impact in terms of revenue generated by the efficient mine. So we want to utilize the working time to a better extent. So we want to limit the downtime between shifts. And so we want to have organized. We want to make sure that the travel to the sections will be reduced. And so this will mean that we'll have a long-term change in the philosophy. So this is something that's going to happen in the section headed up by Mr. Rozmus.
If we look at the first year and subsequent years of our net margin, the additional margin we anticipate that will be generated an additional PLN 0.5 billion in the first year and then PLN 1.6 billion in the subsequent years. In total, around PLN 2 billion. The change in the philosophy of procurement is something that will make a contribution of PLN 0.6 billion. In the first year, it's around PLN 0.3 billion in the first year because we need some time to make these changes. The first results will show up more or less in the middle of the year. As I've indicated previously, our major goal is to improve the financial liquidity of cash position of the group. We want to rebuild or retool the philosophy of how we make decisions on CapEx or investments, generally speaking.
So we want to have a PLN 1.5 billion impact in 2025. In terms of the other savings we want to make, which are smaller, but we have identified them as we were preparing the transformation plan. So in subsequent years, we believe that other savings will be somewhere between PLN 0.4 billion and PLN 0.2 billion, almost PLN 0.3 billion. And they'll be distributed in terms of the culture of how we do our business and making sure that we have a rational approach when we're making our investment decisions. So as a result, the total impact of this transformation plan should be PLN 8.5 billion in effect. And according to the belief of the management board, this is something that should enable us to prepare the organization to a long-term change in its development position. So we'll be able to diversify our revenue.
And that would mean that as a supplier of the critical raw material for the European Union, it's going to be able to have a stable foundation for its operations. So thank you very much for your attention. So thank you very much, ladies and gentlemen. That's the entirety of our presentation that we've prepared for you today. So I'd like to thank you very much for your attention. So you'll have the opportunity to review this presentation on our website. Now, as a matter of tradition, we can go on to the Q&A section. And then I'd like to ask you to post those questions. So ladies and gentlemen, the first question is, what percentage of sales of coal and coke was purchased by the German and European automotive industry in 2023? So I'll respond to that question.
So ladies and gentlemen, the automotive industry does not make direct purchases of coal or coke from the JSW Group. We supply coking coal to coking plants that produce foundry coke, as well as coking coal and coke to steel businesses that in turn supply products to the automotive industry. So we're not able to give you a response to the question of how much foundry coke and how much of the steel products of our buyers are ultimately used by the automotive industry. So we think this is probably going to be a commercial secret of our consumers. It's worth mentioning here that if we look at the automotive industry, we can say that original steel is generally used. So it's the steel produced using blast furnace technology, which means that our coke is used for that purpose. So as Mr.
Rozmus said, it's very difficult for us to give you an absolute value, although we do have an impact on the automotive industry. The second question, 14.5 million tons of coking coal in 2026. And what is going to be your total output? What will be the level of total production and the production mix in 2025, 2027? If we look at the volumes, what sort of level or run rate do you anticipate for 2025? Does the company target a volume in excess of 14.5 million tons like in 2027? So ladies and gentlemen, well, as a result of implementing these initiatives in the scope of the effective mine, should lead us to having 14.5 million tons run rate in 2026. The optimization efforts we're taking would mean that less steam coal is going to be available. So we're ready to do that.
So we want to make sure that we're going to be able to move into coking coal seams. So we're looking, doing some analysis in terms of what is the capacity of individual mines in both sections in order to be able to produce that coking coal. So we assume that the mix will improve. So we're going to increase or drive up the coking coal. Right now, it's 79% is coking coal as opposed to 21% steam coal production. So we want to optimize things to ensure that we're going to be able to ramp up the percentage of coking coal. Thank you very much. The next question, how soon will JSW be able to extract the first coal from the Dębieńsko deposit if it were to receive a concession? And what level of what volume would be possible to be done without CapEx for new wells?
If we're looking at the resource base for the future, this is a pretty theoretical approach. The process of obtaining or securing a concession, we have to start with a survey. This is something we're going to apply for. Here, I would like to emphasize in terms of the concession. This is the sovereign decision and an attribute of individual member states. We'll be talking about this in Poland. Our position as a producer of a critical raw material gives us the ability in the long run to obtain a concession. The future of coking coal in the European Union is rather unthreatened. Thank you very much. Is the management board capable of stating expectations for 2025 in terms of the production volume, CapEx at the group level, what the increase in labor costs will be, and what will the increase of total costs?
The work on 2025 plans is still underway. I assume that when we meet up with you in the near future, we're going to be able to provide you with more detailed information. I think this is something that has resounded in today's conference, is that we're reducing total costs. I think this is something that's a positive factor. When will the restructuring program be rolled out or implemented? Ladies and gentlemen, the implementation of the transformation program has already been launched a few days ago. In 2025, we'll be able to see the first key effects of implementation. As we've shown you during the presentation, Mr. Krzyżanowski showed you a slide in terms of what amounts we'd like to generate with our expectations are in the individual years.
I think the first year where we'll have the full year to reveal the impacts will be 2027. This is not something that's a one-off impact. These are things that would have recurring impacts. Thank you very much. Should we assume or can we count on PLN 5.7 billion of savings over the three years? Let me reiterate what I said on the slides. The full potential of the plan is PLN 8.5 billion. As I said previously, we showed you the distribution, but the biggest share is going to be in the effective mine. That's more than PLN 4 billion over the full three-year period. The second most important area in terms of our holistic approach to the subject, in terms of investments and procurement and the total impact over the three-year period, is PLN 3.2 billion.
Does the management team plan to reduce its CapEx in 2025, 2026, or do you want to increase CapEx so as to be able to ramp up the run rate in subsequent years? So I think the question already incorporates the response. We're already optimizing the CapEx. It depends on the level of extraction. So CapEx will be aligned to those plans and the transformation plan. And above all, this should secure the long-term operations of the company, having in mind a specific production volume. In the current report, you've talked about an additional margin as a result of higher output. What is the split into incremental income and costs in 2025, 2026, and 2027? So just a moment ago, Mr. Krzyżanowski talked about the revenue and costs linked to our transformation plan in the group. And this plan will be available on the website.
We'd invite you to review it there. So using which price paths for coal and coke did you develop this plan? So we've used the McCloskey forecast of September 2024 to prepare the price paths for coking coal and coke. So the cost optimization of PLN 600 million, which the company has referenced, is that a real decrease versus the 2024 expectations, or is it something that is a reduced value versus the plans of the company? So in 2025, the assumption is PLN 360 million, and in 2026 and 2027, it's PLN 600 million. And those figures reference 2023 as the base year. The 600 million, does that figure include this incremental margin of extraction, or is it something more? It doesn't include that. These are additional savings, which we identified in investments and procurement areas. What level of fee does A.T. Kearney receive in 2024-2027?
Ladies and gentlemen, the company does not give any comments on the details of contracts in place with business partners. Okay, I don't understand. What do the savings of 550 million PLN in 2024 mean? Do we already see the results, the effects, which are exerting an impact on the group's results in Q3 and Q4 2024? The outcomes that are identified in the plan for 2024 follow primarily from the reduction of CapEx planned in JSW. This is for non-strategic issues like the purchases of ready-made goods as well as investment construction. This gives you a total figure of 280 million PLN. If we look at the efforts undertaken in JSW Koks, so this is in terms of cost production. And so we're doing a review of those investments and a large number of other initiatives. And so then basically optimizing the mix.
Here we're talking about savings of around PLN 200 million. The other effects stem from a number of other initiatives in terms of materials management, how we organize our business. We've introduced new practices, which mean that we're buying already today. Of course, this is something that will have an impact over time. We're purchasing materials and products much less expensively, and we're able to contract services much on better, smarter terms. The next question, the savings of PLN 0.5 billion, this is something you stated. Is this something that will show up in Q4, or is this something that you've already partially achieved? Are these cost savings, will there be an impact on profit, or is this a cash impact that will affect your cash flow and the balance sheet? I think I gave the responses to a moment ago to a large extent.
Of course, this will have an impact on the cash flow position as well as the balance sheet. These measures enable us to reduce the previously planned CapEx and OpEx. There was also a question about staff costs. So I'll read it out in one block. Why does the transformation plan not address the primary cost factors? So the payroll fund, does that mean that you need to get the consent of trade unions for its implementation? If so, to what extent does your program plan or does your program call for headcount reductions? Do you want to discontinue allowances for employees or no pay raises or free coal allowances? And then what is the level of costs? So ladies and gentlemen, as we've said a moment ago, and we gave you the information on the slides, the priority of this program is to increase the output and our efficiency.
Today, the management board does see a reason to align the rules for paying, so we have more than one type of contract, and this is an area which needs to be cleaned up, and so we're talking with the social partners, with the trade unions, and this is something that's obviously necessary. We'll notify you of the results of these talks, but this is not part of the plan. Today, we're talking with the trade unions, but this is not at all part of the transformation plan. Thank you very much. The next question, what will the costs by type be or by nature in 2025, 2027, and what's going to happen with the largest cost input, which are staff costs? Well, just a moment ago, our CEO, Mr. Janta, responded that work is underway in terms of the level of costs by kind.
So once we make any decisions whatsoever, we'll advise the market of that through current reports. Let me add, as a result of a decision made by the management board, we take a very restrictive approach to hirings, which aren't taking place in JSW as a result of natural attrition. 202 employees have left the company, and this has an impact on reducing the cost, and we want to maintain that level in the future. Thank you very much. Let me have the final questions. So PLN 1.5 billion for a one-off savings of CapEx. What's the reference? Is it 2024 since we're planning for 2025? And when will this CapEx reduction be visible? So we're looking at the 2024 CapEx as the reference here, and this will be adjusted to the production plans in subsequent years, as I've stated previously. So thank you very much.
So there are no more questions? No. We'd like to thank all of you for your attention and for you having stuck with us until this moment. We'd like to invite you to join us for the subsequent earnings calls. And so thank you again for your attention and say goodbye to you, ladies and gentlemen. Thank you. Bye-bye.