Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q2 2011 Earnings Presentation
21 slides from Cognor Holding Sa's earnings presentation, Sep 8, 2011
Slide 1: Q2 2011 Business and Financial Performance
ZŁOMREX S.A. Q2 2011 Business and Financial Performance September 08, 2011
Slide 2: Content
Content 1. Introduction 2. Business overview 3. Financials 4. Q3 2011 outlook 5. Q&A 2
Slide 3: Introduction
ZŁOMREX S.A. Introduction Section 1
Slide 4: Speakers
Introduction Speakers Krzysztof Zola CFO Member of the Board Age – 39 8 yrs with Złomrex 4
Slide 5: Q2 2011 Highlights
Introduction Q2 2011 Highlights Stabilization of demand and prices after the improvement in the first quarter Revenues’ increase by 39,8% compared to Q2 2010 value-wise and 19,1% tonnage-wise Further increase in production capacities utilization ANNUAL UTYLIZATION RATE CAPACITY Q2 2011 Q1 2011 Y 200
Slide 6: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 7: Business environment
Business overview Business environment CRUDE STEEL PRODUCTION (1) Q2 2011 % YoY Q2 2010 million tonns Poland 2,3 0% 2,3 EU (27) 48,8 2% 47,9 Global 385,7 6% 363,4 UNIT PRICES (2) Q2 2011 % YoY Q2 2010 PLN / tonn Scrap metal 988 10% 895 Billets 2 014 12% 1 804 Bars 2 318 15% 2 020 (1) Source: World S
Slide 8: Q2 2011 performance drivers
Business overview Q2 2011 performance drivers SALES Q2 2011 % YoY Q2 2010 Tonns Scrap metal 28 016 -22% 36 015 Billets 65 122 36% 47 902 Steel Products 64 138 33% 48 092 SALES Q2 2011 % YoY Q2 2010 000 PLN Scrap metal 27 667 -14% 32 246 Billets 131 141 52% 86 412 Steel Products 218 207 30% 167 347 8
Slide 9: Segments: Scrap metal
Business overview Segments SCRAP METAL Q2 2011 Q1 2011 Q2 2010 PURCHASES FROM EXTERNAL SUPPLIERS Tonns FERR 34 357 34 610 25 790 ZLMET 111 832 101 697 96 911 HSJ 36 994 36 016 30 277 ZJEL 0 0 0 INTERNAL USE Tonns FERR 94 197 96 131 79 455 HSJ 63 023 52 768 40 954 ZJEL 0 0 0 SALES TO EXTERNAL CUSTOME
Slide 10: Segments: Billets
Business overview Segments BILLETS Q2 2011 Q1 2011 Q2 2010 PURCHASES Tonns EXTERNAL SOURCES 0 0 0 PRODUCTION Tonns FERR 80 516 79 906 67 564 HSJ 55 844 45 367 35 040 ZJEL 0 0 0 INTERNAL USE Tonns FERR 20 661 36 277 20 197 HSJ 50 588 43 131 34 505 ZJEL 0 0 0 SALES TO EXTERNAL CUSTOMERS Tonns FERR 59
Slide 11: Segments: Finished products
Business overview Segments FINISHED PRODUCTS Q2 2011 Q1 2011 Q2 2010 PRODUCTION Tonns FERR / ZW-WB 20 703 23 181 15 440 HSJ 44 437 40 618 31 487 SALES TO EXTERNAL CUSTOMERS Tonns FERR 20 300 20 379 17 828 HSJ 43 838 39 155 30 264 SALES '000 PLN CONSOLIDATED 218 207 168 265 167 347 TOTAL PRODUCTION i
Slide 12: Financials
ZŁOMREX S.A. Financials Section 3
Slide 13: P&L
Financials P&L INCOME STATEMENT Q2 2011 Q1 2011 Q2 2010 '000 PLN Revenue 399 714 332 073 286 005 Cost of sales -352 832 -297 225 -253 813 Gross profit 46 882 34 848 32 192 Other income 4 336 2 878 7 954 Distribution expenses -8 618 -7 486 -10 646 Administrative expenses -9 433 -9 558 -12 606 Other g
Slide 14: Assets
Financials Assets ASSETS Q2 2011 Q1 2011 Q2 2010 '000 PLN A. TOTAL NON-CURRENT ASSETS 470 441 448 662 725 708 I. Intangible assets 18 329 19 711 39 930 II. Property, plant and equipment 362 933 369 187 582 605 III. Other receivables 244 256 2 339 IV. Investment property and other investments 4 610 4
Slide 15: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES Q2 2011 Q1 2011 Q2 2010 '000 PLN A. EQUITY 211 420 110 901 247 280 I. Issued share capital 47 691 47 691 47 691 II. Reserves and retained earnings 61 281 -16 116 86 944 III. Minority interest 102 448 79 326 112 645 B. LIABILITIES 794 400 1 014
Slide 16: Cash Flow
Financials Cash Flow CASH FLOW Q2 2011 Q1 2011 Y 2010 '000 PLN A. FROM OPERATING ACTIVITIES -23 886 -53 791 50 688 B. FROM INVESTING ACTIVITIES -2 118 -704 8 232 C. FROM FINANCING ACTIVITIES -97 232 -21 092 -52 096 NET INCREASE IN CASH -123 236 -75 587 6 824 Q2 2011 working capital outflow at pln (-
Slide 17: Metrics
Financials Metrics MAIN METRICS Q2 2011 Q1 2011 Y 2010 Q2 2010 Q1 2010 Liquidity ratio 1,72 1,18 1,19 1,15 0,98 Quick ratio 1,13 0,94 0,97 0,83 0,65 Inventories turnover (days) 50 66 72 93 127 Receivables turnover (days) 65 94 53 101 143 EBITDA margin 10,0% 8,2% 2,8% 10,0% 0,0% Net profit margin 25,
Slide 18: Q3 2011 Outlook
ZŁOMREX S.A. Q3 2011 Outlook Section 4
Slide 19: Q3 2011 outlook
Q3 2011 outlook Slowdown in GDP growth below 4% Slight decrease of demand and stabilization of prices Further improvement in profitability Utilization rate at Q2 2011 level Finalization of internal reorganization 19
Slide 20: Organization Chart
STEEL PRODUCTS Organization Chart PRODUCTION 92.4% FERROSTAL 100% ZW-WB MERGER HSW-HSJ OTHER ACTIVITIES 100% OMS Złomrex 100% 99,9% Production Production ZIF 64,4% HoldCo COGNOR Other Other Scrap SCRAP TRADING Non-core business and Non-core business and 100% non-operational subsidiaries non-operatio
Slide 21: Q&A
_——sZEOMREX S.A. == —_O8A — —— Section 5