Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q2 2008 Earnings Presentation
22 slides from Cognor Holding Sa's earnings presentation, Sep 1, 2008
Slide 1: Q2 2008 Business and Financial Performance
ZŁOMREX S.A. Q2 2008 Business and Financial Performance September 1, 2008
Slide 2: Content
Content 1. Introduction 2. Business overview 3. Financials 4. Q2 2008 outlook 5. Q&A 2
Slide 3: Introduction
ZŁOMREX S.A. Introduction Section 1
Slide 4: Speakers
Introduction Speakers Krzysztof Krzysztof Walarowski Zola Member of the CFO Board Age – 51 Age – 35 4 yrs with 6 yrs with Złomrex Złomrex 4
Slide 5: Q2 2008 Highlights
Introduction Q2 2008 Highlights Very good market conditions; record breaking sales and financial results, much over the budget. Work on restructuring of Distribution Division and Zeljezara Split. Management of short-term financing. GDP growth of 5,6% in Poland Steel consumption decline by 9% in Pola
Slide 6: Q2 2008 Highlights - Income Statement
Introduction Q2 2008 Highlights INCOME STATEMENT Q2 2008 Q2 2007 Q2 2006 '000 PLN Revenue 1 248 059 980 530 498 804 Cost of sales -1 063 161 -849 652 -429 026 Gross profit 184 898 130 878 69 778 Other income 7 884 4 708 1 412 Distribution expenses -46 353 -36 134 -6 917 Administrative expenses -42 7
Slide 7: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 8: Business environment
Business overview Business environment CRUDE STEEL PRODUCTION (1) Q2 2008 % YoY Q2 2007 Q2 2006 million tones Poland 2,8 0% 2,8 2,5 EU (25) 53,2 -1% 54,0 53,6 Global 355,3 7% 332,3 311,7 STEEL USE (April-May)(2) Q2 2008 % YoY Q2 2007 million tonnes Poland 1,925 -9% 2,118 long products 0,772 -18% 0,9
Slide 9: Q2 2008 performance drivers
Business overview Q2 2008 performance drivers Q2 2008 Q2 2007 SALES NEW ACQUISITIONS’ CONTRIBUTION REPORTED HISTORICAL REPORTED ZLOMREX STX ZJEL TOTAL Tones SCRAP 59 070 58 380 690 0 690 60 111 BILLETS 43 646 42 273 1 373 0 1 373 45 466 FINISHED PRODUCTS 358 527 287 400 41 573 29 554 71 127 249 626
Slide 10: Segments - Scrap Metal
Business overview Segments SCRAP METAL Q2 2008 Q2 2007 PURCHASES FROM EXTERNAL SUPPLIERS (Tones) ZLOM 0 188 627 ZLMET 189 705 N/C HSJ 60 963 50 366 ZJEL 37 678 N/C OTHER 0 0 INTERNAL USE (Tones) ZLOM 115 207 103 970 ZLMET 0 N/C HSJ 69 061 71 412 ZJEL 32 427 N/C SALES TO EXTERNAL CUSTOMERS (Tones) ZL
Slide 11: Segments - Billets
Business overview Segments BILLETS Q2 2008 Q2 2007 PURCHASES (Tones) EXTERNAL SOURCES 12 745 19 773 PRODUCTION (Tones) FERR 101 591 90 920 HSJ 59 482 62 063 ZJEL 27 704 N/C INTERNAL USE (Tones) ZLOM 72 017 67 743 HSJ 58 155 59 547 ZJEL 27 704 N/C SALES TO EXTERNAL CUSTOMERS ZLOM 40 946 42 950 FERR 0
Slide 12: Segments - Finished Products
Business overview Segments FINISHED PRODUCTS Q2 2008 Q2 2007 PRODUCTION (Tones) ZWWB 37 654 22 076 FERR 23 122 25 380 HSJ 52 221 50 185 ZJEL 34 278 N/C SALES OF PRODUCTION TO DISTIBUTION (Tones) ZLOM 13 645 10 235 HSJ 1 904 2 134 SALES TO EXTERNAL CUSTOMERS (Tones) ZLOM 47 838 41 564 HSJ 47 791 45 1
Slide 13: Financials
ZŁOMREX S.A. Financials Section 3
Slide 14: P&L
Financials P&L INCOME STATEMENT Q2 2008 REPORTED ZLX HIST VASTH STX ZJEL ELININ '000 PLN Revenue 1 248 059 666 711 427 146 114 621 69 599 -30 018 Cost of sales -1 063 161 -566 845 -357 618 -105 635 -62 768 29 705 Gross profit 184 898 99 866 69 528 8 986 6 831 -313 Other income 7 884 5 261 1 449 595
Slide 15: Assets
Financials Assets ASSETS Q2 2008 Q1 2008 Q2 2007 '000 PLN A. TOTAL NON-CURRENT ASSETS 1 202 021 1 206 519 814 971 I. Intangible assets 44 007 44 596 31 466 II. Property, plant and equipment and usufruct of land 1 099 609 1 113 788 752 819 III. Other receivables 9 318 2 992 1 988 IV. Investment prope
Slide 16: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES Q2 2008 Q1 2008 Q2 2007 '000 PLN A. EQUITY 743 960 698 948 570 296 I. Issued share capital 47 691 47 691 47 691 II. Reserves and retained earnings 551 962 504 198 382 306 III. Minority interest 144 307 147 059 140 299 B. LIABILITIES 1 996 793
Slide 17: Cash Flow
Financials Cash Flow CASH FLOW Q2 2008 Q2 2007 Q2 2006 '000 PLN A. FROM OPERATING ACTIVITIES 26 032 -14 655 42 787 B. FROM INVESTING ACTIVITIES -32 042 -31 816 -24 829 C. FROM FINANCING ACTIVITIES -28 987 99 403 -5 106 17
Slide 18: Main Metrics
MAIN METRICKS Q2 2008 Q1 2008 Y 2007 Financials Liquidity ratio 1,27 1,27 1,28 Metrics Quick ratio 0,63 0,66 0,68 Inventories turnover (days) 66 66 86 Receivables turnover (days) 52 55 56 EBITDA margin 9,0% 5,8% 6,4% Net profit margin 5,5% 1,3% 6,1% Equity 743 960 698 948 689 568 Debt 1 058 483 1 10
Slide 19: Q2 2008 v. Budget
Financials Q2 2008 v. Budget Q2 2008 REPORTED BUDGETED '000 PLN Revenues 1 248 059 1 224 683 EBITDA 112 167 95 000 net profit 68 504 48 313 Working capital 768 977 803 700 CAPEX -19 096 -10 000 net debt 1 023 345 1 071 099 Moody's adjusted net debt 1 144 858 1 195 927 Złomrex will consider increase
Slide 20: Q3 2008 Outlook
ZŁOMREX S.A. Q3 2008 Outlook Section 4
Slide 21: Q3 2008 outlook
Q3 2008 outlook Polish GDP growth lower at around 5% Decrease in Polish steel consumption in comparison to Q2 2008 increase in comparison to Q3 2007 Decrease in scrap and product prices Good profitability, especially by Production Division BUDGET SUMMARY Q1 2008 Q2 2008 Q3 2008 Q4 2008 TOTAL '000 PL
Slide 22: Q&A
_——sZEOMREX S.A. == —_O8A — Section 4