Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Q3 2020 Earnings Presentation
19 slides from Cognor Holding Sa's earnings presentation, Nov 2, 2020
Slide 1: Q3 2020 Business and Financial Performance
Q3 2020 Business and Financial Performance November 02, 2020
Slide 2: Agenda
1. Introduction 2. Business Overview 3. Financials 4. Q4 2020 Outlook
Slide 3: Introduction | Speaker
Introduction | Speaker Krzysztof Zoła Board Member, CFO Responsibility Cooperation with financial institutions Budgeting and controlling IR M&A and major CAPEX projects Experience with Cognor since 2002 Board Member of Cognor Holding since 2013 CFO for 13 years
Slide 4: Introduction | Q3 2020 Highlights
Introduction | Q3 2020 Highlights Polish GDP expected to be negative at between 2% and 4% compared to 3.9% growth in Q3 2019; -8.9% in Q2 2020 ; a strong rebound qoq; EU28 GDP negative at -3.9% (-4.3% Eurozone), compared to 1.4% (1.1% Eurozone) in Q3 2019; -13.9% in Q2 2020 (-14.8% Eurozone); a
Slide 5: World's Steel Output
Business Overview | World’s Steel Output Crude steel production CRUDE STEEL PRODUCTION Q3 2020 % YoY Q3 2019 m tonnes Europe 66.8 -6.6% 71.4 UE (28) 31.1 -16.2% 37.1 EU strongly down incl. Poland 2.0 -13.4% 2.3 Poland even worse CIS 25.4 0.5% 25.2 North America 23.9 -19.6% 29.7 USA 17.3 -20.9% 21.8
Slide 6: EU Trade Policy
Business Overview | EU Trade Policy Anti Dumping Anti dumping measures have always been an available trade control tool. However, only since 2016 there has been a growing number of cases where the European Commission was willing to impose double digit duties compared to rather symbolic levels before
Slide 7: EU Safeguard
Business Overview | EU Safeguard Q3 2020 - REBARS as of: 30.09.2020 period start 01.07.2020 period end 30.09.2020 period days 91 days remaining 0 period advancement 100% quota utilisation 75% ORIGINS Initial Amount Quota Available Turkey 76 792 970 0 Russia 61 630 080 0 Ukraine 40 963 470 544 089 Bi
Slide 8: BOF / EAF Feedstock Cost
Business Overview | BOF / EAF Feedstock Cost BOF & EAF Feedstock Costs 2018 2019 2020 Feedstock Cost 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 USD / Tonne BOF 372 363 284 190 189 260 267 291 285 259 255 268 289 312 300 263 270 266 309 EAF 423 388 352 257 216 299 338 28
Slide 9: Ferrostal Prices & Spreads
Business Overview | Ferrostal Prices & Spreads Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 (pln/ tonne) FERROSTAL SCRAP METAL - average purchase price 898 891 934 849 932 scrap metal price down by 34 & 3.6% BILLETS - average price 1 797 1 747 1 767 1 630 2 056 billet sales price down by 259 & 12.6% volu
Slide 10: HSJ Prices & Spreads
Business Overview | HSJ Prices & Spreads Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 (pln/ tonne) HSJ SCRAP METAL - average purchase price 967 976 1 018 927 1 049 scrap metal price down by 82 & 7.8% BILLETS - average price 2 044 2 191 2 309 1 985 2 069 billet sales price down by 25 & 1.2% volume 17 744
Slide 11: Scrap Metal
Business Overview | Scrap Metal Segments SCRAP METAL Q3 2020 Q2 2020 Q3 2019 PURCHASES FROM EXTERNAL SUPPLIERS Tonnes FERROSTAL 90 677 99 270 89 986 ZŁOMREX 71 996 63 707 71 872 ZŁOMREX purchases up by 0.2% HSJ 43 183 45 173 30 360 INTERNAL USE Tonnes FERROSRAL 95 934 120 694 105 846 HSJ 62 984 69 8
Slide 12: Billets
Business Overview | Billets Segments BILLETS Q3 2020 Q2 2020 Q3 2019 PURCHASES Tonnes FERR 0 0 0 PRODUCTION Tonnes FERR 73 384 107 956 84 674 HSJ 37 287 61 865 28 127 INTERNAL USE Tonnes FERR 75 774 81 769 88 791 HSJ 44 526 46 272 26 679 SALES TO EXTERNAL CUSTOMERS Tonnes FERR 12 387 43 534 14 761 H
Slide 13: Finished Products
Business Overview | Finished Products Segments FINISHED PRODUCTS Q3 2020 Q2 2020 Q3 2019 PURCHASES Tonnes ALL ENTITES 0 0 0 PRODUCTION Tonnes ZWWB 20 527 17 934 20 208 HSJ 37 287 41 238 28 127 PROFIL 51 857 60 207 64 466 SALES TO EXTERNAL CUSTOMERS Tonnes FERROSTAL 65 968 71 143 66 200 HSJ 48 364 52
Slide 14: Statement of Profit or Loss
Financials STATEMENT OF PROFIT OR LOSS Q3 2020 Q2 2020 Q3 2019 '000 PLN Sales revenue 372 293 455 955 399 511 Revenues down by 6.8% Cost of sales -348 656 -408 559 -364 456 - shipments up by 5.8% Gross profit 23 637 47 396 35 055 Gross profit down by 25.6% - spreads compression loss of PLN 27.1m - R
Slide 15: Financials: Assets
Financials ASSETS Q3 2020 Q2 2020 Q3 2019 '000 PLN A. TOTAL NON-CURRENT ASSETS 492 502 495 308 445 177 Fixed assets up by 10.6% I. Intangible assets 17 637 24 642 20 533 - CAPEX increase of PLN 85.4m II. Property, plant and equipment 386 665 382 816 342 465 - D&A charges of PLN 47.1m III. Other rece
Slide 16: Financials: Equity and Liabilities
Financials EQUITY AND LIABILITIES Q3 2020 Q2 2020 Q3 2019 '000 PLN A. EQUITY 299 629 299 992 282 736 Equity up by PLN 16.1m I. Issued share capital 185 911 185 911 184 605 - LTM net result increase of PLN 20.6m II. Reserves and retained earnings 94 774 94 900 79 324 - exchangeable notes coupon decre
Slide 17: Cash Flow and Main Metrics
Financials CASH FLOW Q3 2020 Q2 2020 Q3 2019 - working capital inflow of PLN 6.0m '000 PLN (decrease of receivables and increase of inventories, increase of trade liabilities as compared to Q2 2020) A. OPERATING ACTIVITIES 26 683 53 947 28 902 B. INVESTING ACTIVITIES -9 928 -16 959 -13 848 - CAPEX o
Slide 18: Q4 2020 Outlook | Main Factors
Q4 2020 Outlook | Main Factors 1 2 3 Poland’s crude steel production under pressure due to BOF mills’ GDP declining and a drop qoq in Poland diminishing output; EAF producers and in the EU (28) in the wake of the Demand picture mixed; fair for stable at high utilization rates. Polish second wave of
Slide 19: Cognor SA contact details
COGNOR SA ul. Zielona 26, 42 - 360 Poraj tel. +48 34 316 01 10, fax +48 34 316 01 12 [email protected], www.cognor,pl