Viohalco Sa/nv · ATHEX:VIO
Viohalco Sa/nv — Investor Presentation (May 2014)
72 slides from Viohalco Sa/nv's investor presentation, May 14, 2014
Slide 1: Viohalco
VIOHALCO
Slide 2: Corporate Presentation
1 VIOHALCO 2 Steel 3 Steel Pipe 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix Corporate Presentation
Slide 3: Our Company
Our Company Viohalco SA, a publicly traded company (Euronext: VIO, Athens: VIO/BIO) based in Brussels, Belgium, is one of Europe’s largest and longest-standing metals processing Group and is the holding company of a group of companies active in the fields of steel, steel pipes, aluminium, copper, ca
Slide 4: Viohalco Highlights
VIOHALCO Highlights Established in 28 Participation in numerous 1937 Production plants Companies € 3.4 bil of total Assets Major player 7,800 € 1.9 bil in European employees markets of non current Assets 4
Slide 5: Viohalco Highlights
VIOHALCO Highlights Sales of almost € 3 bil. in approx. 100 84% countries of turnover in Europe €1.8 bil. CAPEX since 2001 Production facilities in Greece, Bulgaria, Romania, SIDENOR 5 Russia, FYROM and the U.K. ETEM HELLENIC CABLES HALCOR ELVAL CORINTH PIPEWORKS * 2013 data
Slide 6: Technology and R&D
Technology and R&D Keeping current with technology developments, VIOHALCO subsidiaries implement significant investments that improve the effectiveness and enhance the capacity of their production facilities. R&D facilities promote research to expand the product portfolio with innovative and high ad
Slide 7: 2013 Highlights
2013 Highlights Financials Consolidated revenue of euro 2,885 million, down 13% from 2012, mainly driven by the weak demand and decreased metal prices, compared to 2012. EBITDA of euro 4 million vs. euro 155 million in 2012 and negative EBIT of euro 109 million vs. a positive EBIT of euro 14 mil
Slide 8: 2013 Highlights
2013 Highlights Restructuring of euro 727 million of outstanding debt completed through the issuance of a series of long-term syndicated bond loans, for the major Greek subsidiaries of the Viohalco Group as follows: Sidenor Group (€298 m) Halcor Group (€270 m) Elval Group (€159 m) Group Rest
Slide 9: Group Financial Data
Group Financial Data Key Financials Amounts in € Mil 2007 2008 2009 2010 2011 2012 2013 Turnover 3,683 3,763 2,298 2,958 3,536 3,317 2,885 EBITDA 394 183 91 159 177 155 4 Profit (Loss) of the 162 -28 -110 -32 -56 -76 -224 Year Profit (Loss) attributable to the owners of the 84 -11 -77 -21 -43 -50 -1
Slide 10: Group Financial Data
Group Financial Data Summarized Consolidated Income Amounts in € Mil 2013 2012 Revenue 2,885 3,317 Gross Profit 175 229 EBIT before Non Recurring -18 19 EBIT -109 14 Financial Income/Expenses -86 -90 Loss Before Income tax -192 -75 Depreciation 113 141 EBITDA before Non Recurring 95 160 EBITDA 4 155
Slide 11: Group Sales
Group Sales Group turnover € mil. 3.683 3.684 3.536 3.317 2.958 2.885 2.298 2007 2008 2009 2010 2011 2012 2013 Export orientation Turnover (2013) split per region Turnover (2013) split per sector <1% 1% 2% European Union | 60% 6% 3% Steel /% Greece | 13% 28% 35% Copper Other European Countries | 11%
Slide 12: Group Sales per sector
Group Sales per sector Sales evolution per sector € mil. 4.000 3.000 974 975 830 1.051 1.060 919 1.004 2.000 701 1.252 1.253 678 664 1.194 1.103 900 1.091 588 568 555 682 593 1.056 1.000 423 511 434 425 422 1.211 1.407 1.408 1.241 412 912 937 932 994 1.044 346 347 462 529 805 0 2000 2001 2002 2003 2
Slide 13: Group Sales outside Greece
Group Sales outside Greece Sales evolution % 4.000 3.500 3.000 * 2.500 72% 70% 69% 2.000 85% 76% 86% 87% 1.500 Sales evolution per sector 64% (%) 65% 71% 53% 52% 1.000 45% 51% 500 31% 28% 30% 55% 47% 48% 36% 35% 29% 24% 49% 15% 14% 13% 0 13 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 14: Steel
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix
Slide 15: SIDENOR Group
SIDENOR Group The largest long products steel producer in South Eastern Europe, with a leading position in Greece. Strong presence in the pipe industry through CORINTH PIPEWORKS, one of the largest ERW/HFI & SAWH manufacturers globally. 78.55% 100% 100% 100% 64.01% 15 Notes • % share in voting right
Slide 16: Group overview
Group overview Set of modern mini- CORINTH PIPEWORKS mills focusing on the is one of the largest production of steel and most modern products including: steel pipe rebar, merchant bars, manufacturers of ERW wire rod, mesh and SAW pipes, in the products and plates world Holds prominent position in th
Slide 17: Product Portfolio
Product Portfolio Tubes & Attractive & diversified product portfolio that reduces volatility Wires & Small Wire Rod Holow 3% Sections 7% Greek Steel Operations Merchant Bars 21% Mesh Rebars 6% 68% Balls 2% Balkan Steel Operations Special Rebars Steels/ 23% Long products 30% Plates 45% Pipes, Tubes &
Slide 18: Greek Steel Plants
Greek Steel Plants THESSALONIKI, GREECE Meltshop – (1991) (1) 800 kMT/y M/R Long Product Mill – (1998-99) (1) 800 kMT/y (3) Thessaloniki (Rebar, Merchant Bars, Wire Rod) Mesh 40 kMT/y GREECE Land approx. 441 K sq.m. Covered area approx. 75 K sq.m. M/R Athens ALMYROS, GREECE Meltshop – (2001) (2) 1,3
Slide 19: Downstream operations
Group Financial Data Downstream Processing Products: Operations Products: By-products processing Wire, Fencing, Welding electrodes Capacity: 80 KMT wires, Products: Bright & Special Steels Capacity: 200 kMT 12 kMT welding electrodes Distribution & Marketing 19
Slide 20: Steel Plants in Bulgaria & FYROM
Steel Plants in Bulgaria & FYROM M/R Meltshop /Rolling Mill R Rolling Mill BULGARIA M/R Sofia Skopje FYROM R PERNIK, BULGARIA DOJRAN, FYROM Meltshop – (2002-3) (2) Rolling Mill – (2006) (2) 1,400 kMT/y 200 kMT/y Plate Mill – (2003-4) (2) Mesh 400 kMT/y 20 kMT/y Long Product Mill Lattice Girders 1,00
Slide 21: Distribution Network
Steel Plants in Bulgaria & FYROM Distribution Network SLOVENIA Sidenor’s existing logistic centres are characterised by Zagreb advantageous means of transportation: ROMANIA Ljubljana Belgrade CROATIA BOSNIA-HERZEGOVINA Bucharest SERBIA Sarajevo Truck Ship Rail BULGARIA MONTENEGRO Sofia KOSOVO New pl
Slide 22: Projects in Balkan Area
Projects in Balkan Area METROPOLITAN CENTER SOFIA SUBWAY - BULGARIA CET BUDAPEST - HUNGARY BUCHAREST - ROMANIA KRINKAL BRIDGE - SLOVENIA STADIUM - SLOVENIA HYGEIA HOSPITAL, TIRANA - ALBANIA BUSINESS CENTER CVOR OREHOVICA GRUZANSKOM BRIDGE TIRANA - ALBANIA RIJEKA - CROATIA JEZERU - SERBIA LARNAKA AIR
Slide 23: Sales
Sales Group Turnover € mil. 1.713 1.390 1.247 1.228 916 957 938 993 1.047 808 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Turnover (2013) split per region International Sales 2013 175 632 78% 5% European Union | 46% 9% 2012 211 835 80% 7% 13% Greece | 22% 2% 2011 219 1.028 82% 4% 23 Other Euro
Slide 24: Profitability
Profitability € mil. Profitability 250 220 213 200 144 139 140 150 129 108 101 92 100 62 59 47 50 50 31 29 35 22 27 16 11 0 -23 -50 -30 -49 -59 -59 -71 -67 -76 -75 -74 -100 24 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EBITDA EBT EATAM
Slide 25: Steel Pipes
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix
Slide 26: CPW at glance
CPW at glance Worldwide Approved supplier of the largest international sales network Oil and Gas companies Amongst the world’s largest and highly advanced steel pipe producers for the Sales in Oil & Gas 94% 40 countries industry of turnover was achieved abroad 2006-2013 Major hollow section supplier
Slide 27: A global supplier of Oil & Gas Industry
A global supplier of Oil & Gas Industry Consolidated Sales 2006-2013 (in €) Sales Breakdown 2006-2013 (in €) 11% 6% 6% 6% Greece 11% 11% 23% 10% 23% European Union 23% 10% 23% 11% Other European Countries 39% 6% 39% Americas 11% 10% Asia 11% 11% 39% 11% Africa 10% 10% 10% 13% 13% % in total (consoli
Slide 28: Managing big projects
Managing big projects NORTH AMERICA EUROPE Customers Customers Denbury Resources, DCP Midstream, GDF, Snam Rete Gas, Dow Chemical, Spectra Energy, Cheniere, Enbridge, RWE, OMV, Plinacro, Enagas, Panhandle, Kinder Morgan, Energy TransGas, BG Group, National Grid, Transfer, EPCO, Williams, Spartan, Bo
Slide 29: The Russian venture
The Russian venture Russian Oil & Gas Industry is among the largest and fastest growing worldwide Russian Steel pipes industry is a high margin market TMK and Corinth Pipeworks S.A. have registered a joint venture (JV) named ZAO “TMK-CPW” in order to satisfy ZAO TMK - CPW the growing needs of th
Slide 30: Our response to new energy sector trends
Being at the forefront of energy sector new trends Small-Medium New investment in LSAW-JCOE Offshore, deep diameter & heavy large-diameter pipe mill for & ultra deep wall thickness longitudinally welded pipes, by water pipelines and pipes SMS-Meer. onshore projects The market trend with heavy wall T
Slide 31: Production & Port facilities
Being at the forefront of energy sector new trends Production & Port facilities 1 Port 8 2 4 5 7 6 3 Port facilities NEW LSAW plant ERW/HFI plant (exclusive use): (400 KMT/year) (150 KMT/year) Lining Berth “A” : Grade up to: Grade up to: S355J2H 1 Depth: 11.10m, length:205 m 3 X80 (X100 in the futur
Slide 32: Deeper waters and heavier pipes
Region of interest worldwide (offshore – onshore) Deeper waters and heavier pipes Offshore development or sour service conditions projects North Sea West Africa Gulf of Mexico (GoM) Brazil South East Europe Middle East Caspian region USA East Africa Canada Big prospective projects in our region (det
Slide 33: Major prospective projects in our region
Major prospective projects in our region TAP TANAP SOUTH STREAM IGB Onshore Onshore Onshore Length: 755km Onshore Length: 2.581km Length: 1.455km Offshore Length: 110 km Length: 183km Investment: 7 billion $ Number of Lines: 1 Capacity: 3-5 bcm Capacity: 16-31 bcm Offshore Capacity: 10 bcm Total qua
Slide 34: Strategic alliances with HRC producers
Strategic alliances with HRC producers HRC in API Grades is a value added product for Corinth Pipeworks has a competitive advantage due to long-term major steel relationship with major steel producers for the supply of top quality producers and hot rolled coil (API grades up to X80) is considered a
Slide 35: Sales
Sales Group Turnover € mil. 385 358 319 285 264 261 235 155 165 2005 2006 2007 2008 2009 2010 2011 2012 2013 Turnover (2013) split per region International Sales % 2% 9% European Union | 33% 2013 13 153 92% 20% Greece | 8% 2012 40 194 83% 14% 33% Other European Countries | 7% 2011 9 255 97% Asia | 0
Slide 36: Profitability
Profitability € mil. 70 60 57 50 41 40 41 40 36 34 31 30 28 20 20 21 19 18 20 16 14 12 9 10 10 7 6 3 5 0 -2 -2 -3 -10 -6 -6 2005 2006 2007 2008 2009 2010 2011 2012 2013 36 EBITDA EBT EATAM
Slide 37: Aluminium
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix
Slide 38: ELVAL Group
ELVAL Group The largest Greek aluminium processor, operating in manufacturing and trading of flat rolled and extruded products. Total production capacity exceeds 350 thousand tons. Significant international presence - exports exceed 85% of total turnover. 75% 70.78% 99.99% 100% 38 Notes • % share in
Slide 39: Aluminium Processing
Aluminium Processing 1. Medium size – flexible independent supplier. Production capability for wide coils (up to 2.5 m) and long slabs (8m) resulting 2. to low production cost. Upgraded / state-of-the-art key equipment – Emphasis on R&D. 3. Quality compatible with the highest market standards. 4. Si
Slide 40: Main Production Plants
Main Production Plants BRIDGNORTH ELVAL ETEM BULGARIA ALUMINIUM (Oinofyta - Greece) (Sofia - Bulgaria) (Bridgnorth - UK) Aluminium Rolling Plant: Aluminium Rolling Plant: Aluminium Extrusion Plant: 486,000 sqm 268,400 sqm 131,000 sqm Buildings: Buildings: Buildings: 134,000 sqm 63,000 sqm 39,000 sqm
Slide 41: Product Line – Rolled Products
Product Line – Rolled Products Facades (Etalbond ®, Beverage cans, Household foil, Shipbuilding & ELVAL ENF), Gutters food cans & closures Cigarette packing, Marine applications, (Ydoral), Roller Confectionary Trucks & Trains Shutters, Roofing, packaging, Frozen Wall cladding Rigid Packaging Food, e
Slide 42: Product Line – Rolled Products
Product Line – Rolled Products Water Heaters, Litho Coils for Heat exchangers Fridges Cookware Printing Units (Brazing), components, insulation Household Appliances Litho Coils (Sheets, Coils) Automotive (Sheets, Coils) 42
Slide 43: Product Line – Extrusion Products
Product Line – Extrusion Products Aluminium systems Profiles for special for all types of doors applications, and shutters, Industrial profiles for Roller shutters, automotive Venetian blinds, etc. applications, etc. Architectural Industrial Profiles Profiles 43
Slide 44: Sales Network
Sales Network Bridgnorth Ltd Tepro Metal AG Metal Agencies Ltd Steelmet Genecos S.A Romania SA ETEM BG SA Alurame Spa Base Metal 44 ELVAL S.A ETEM S.A
Slide 45: Sales
Sales Group Turnover € mil. 980 1.062 1.064 1.009 860 902 930 668 706 690 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Turnover (2013) split per region International Sales % 2013 107 902 89% 9% 2012 118 946 89% 10% European Union 2011 132 930 88% Greece 45 8% Asia 2010 140 790 85% 62% America 2
Slide 46: Profitability
Profitability € mil. 100 87 82 82 80 77 74 80 66 68 60 44 38 40 30 31 33 26 23 21 22 23 22 16 17 17 16 20 10 9 0,4 0 -9 -8 -6 -20 -29 -40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 46 EBITDA EBT EATAM
Slide 47: Copper
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix
Slide 48: HALCOR Group
HALCOR Group Leading fabricator of copper and copper alloy products in Greece 72.53% 100% 100% 98.59% 100% 48 Notes • % share in voting rights, as at Dec. 31, 2013 or more recent announcements
Slide 49: Copper and copper alloy product manufacturing
Copper and copper alloy product manufacturing Casting Facilities Dynamically growing international presence 9 modern production facilities Copper Tube Plant Extensive distribution network 10 large warehouses in the Balkans, 2 in Germany and 1 in Italy Rolled Products Plant Active in the cable indust
Slide 50: Production Plants
Production Plants 2 plants in Greece 4 plants in Greece 1 plant in Bulgaria 1 plant in Greece 1 in Romania 75 kMT /y 100 kMT /y Copper & 40 kMT /y Copper tubes 164 kMT /y Cables, Brass rolled products Brass Bars & Tubes 120 kMT /y Copper 25 kMT /y Copper & wire rod Brass extruded product
Slide 51: Fabricator of Diverse Metal Products
Fabricator of Diverse Metal Products Category Products Applications Water supply, heating, heating (pre-insulated), Copper refrigeration, natural gas, medical use, cooling, solar Tubes energy and various industrial applications Rolled • Construction (roofing, gutters), electrical engineering Product
Slide 52: Innovative New Products
Innovative New Products Category Products Applications ® • TALOS DUAL : consists of two seamless metallic layers, an inside copper layer and an outside layer made from aluminum Competitive price, reduced weight, tailored solutions • Also, entering new value-added market segments with industrial Indu
Slide 53: Sales
Sales Group Turnover € mil. 1.369 1.247 1.200 1.249 1.259 1.044 1.102 718 679 559 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Turnover (2013) split per region International Sales % 0% 2013 89% 117 985 4% European Union | 71% 2012 152 1.107 88% 4% 8% Greece | 11% 2011 204 1.045 84% 2% 53 Other
Slide 54: Profitability
Profitability € mil. 120 95 100 86 80 60 48 52 49 43 36 33 32 34 40 20 20 20 13 14 13 3 4 7 0 -20 -11 -16 -13 -16 -22 -19 -26 -40 -31 -60 -48 -56 -54 -58 -80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 54 EBITDA EBT EATAM
Slide 55: Cables
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix
Slide 56: Production Plants
Production Plants THIVA, GREECE LIVADIA, GREECE BUCHAREST, ROMANIA OINOFYTA, GREECE CORINTH, GREECE Enamelled Wire Cable Plant Cable Plant Compound Plant Cable Plant Plant Total Area: Total Area: Total Area: Total Area: Total Area: 175,082 sqm 121,818 sqm 268,000 sqm 21,263 sqm 218,247 sqm Buildings
Slide 57: Cable Products
Cable Products The largest cable producer in SE Europe, with 5 production plants and exports to over 50 countries globally. Power Cables Submarine Cables Telecom Cables Enamelled Wires Compounds Installation & • MV Submarine Cables Building Cables • Paper Telecommunication Enamelled Wires for
Slide 58: High Added-Value Products
High Added-Value Products Specialized Cables requiring both Capital Investment & Know-how to Produce Submarine Limited Supply, thus High Margins Cables Increased Demand for Power Grid Expansion Projects & Off-shore Wind Parks Require Know-How and References (installed & in use cables) High /
Slide 59: Diversified Product & Customer Mix
Diversified Product & Customer Mix Power & Telecom Cables, as well as Enamelled Wires Specialized products for niche markets, such as High Wide Product Voltage & Extra High Voltage Cables, oil & gas cables, Range solar cables, marine cables Turn-key projects offering ready-to-use solutions B
Slide 60: CapEx Fueling Growth - Our newest addition
CapEx Fueling Growth - Our newest addition FULGOR Acquisition Aug 2011 Cable Producer since 1957 Production of HV cables since 1995, submarine MV cables since 1973 Strong Reference List Vertical Integration through production of Copper & Aluminium Wire Rod Docking facilities for loading submarine ca
Slide 61: Sales
Sales Group Turnover € mil. 407 415 439 321 358 352 345 242 175 201 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Turnover (2013) split per region International Sales European Union | 67% % 1%4% 2013 91 254 74% Greece | 26% 2012 112 328 75% 26% Other European 2011 121 294 71% 61 Countries | 1% 2
Slide 62: Profitability
Profitability € mil. 40 35 30 28 20 21 20 18 15 16 14 14 13 12 11 11 10 4 4 3 4 3 2 1 1 0 0 0 -2 -1 -1 -10 -11 -13 -20 -20 -21 -30 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 62 EBITDA EBT EATAM
Slide 63: Real Estate
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix
Slide 64: Real Estate
Real Estate Key Real Estate Assets Property Karaiskaki Sq., Athens Property 96 Kifissos Ave., Athens Property 252 Pireos Str., Athens Owner XENKA SA (100% Owner VIOHALCO SA Owner VIOHALCO SA subsidiary of NOVAL SA) Use of Hotel Use of IKEA Store / River West Use of Industrial Buildings, property pro
Slide 65: Real Estate
Real Estate Key Real Estate Assets Property 115 Kifissias Ave., Property 57 Ethnikis Antistasseos Property CORINTH PIPEWORKS Ampelokipi, Athens street, Halandri, Athens former plant Owner SANITAS SA (100% Owner NOVAL SA Owner METALLOURGIA KORINTHOU subsidiary of NOVAL SA) SA (100% subsidiary of NOVA
Slide 66: Financial Appendix
1 VIOHALCO 2 Steel 3 Steel Pipes 4 Aluminium 5 Copper 6 Cables 7 Real Estate 8 Financial Appendix Corporate Presentation
Slide 67: Financial Appendix
Financial Appendix Group Financial Data Balance Sheet items € mil. 2013 Total Equity 1.341 2012 1.951 Fixed Assets 1.500 1.934 Trade 320 Payables 40 327 Other 18 Short-term Liabilities 477 973 Short-term 244 1.487 Bank Debt 207 396 67 1.414 944 Current Other Assets Long-term Liabilities Long-term Ba
Slide 68: Financial Appendix
Financial Appendix Group Financial Data Assets / Equity € mil. 5.000 4.014 3.873 3,30 3.715 3.560 3.631 4.000 3.384 3.421 3.365 3.000 2,80 1.777 1.976 1.769 2.000 1.681 1.633 1.568 1.500 1.340 2,03 2,51 2,30 1.000 2,01 2,32 2,28 2,09 2,19 2,18 0 1,80 2006 2007 2008 2009 2010 2011 2012 2013 Assets Eq
Slide 69: Financial Appendix
Financial Appendix Group Financial Data Net Debt € mil. 1.400 60% 48% 48% 46% 1.200 1.267 50% 1.225 1.248 1.196 1.000 1.126 1.114 1.037 1.052 1.071 40% 43% 800 29% 1.046 40% 36% 37% 30% 32% 600 30% 20% 400 10% 200 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 69 Net Debt % Net Debt / Sales
Slide 70: Financial Appendix
Financial Appendix Group Financial Data Current assets / Debt € mil. 2.500 2,50 1,96 1,79 1,67 2.000 1,32 1,29 2,00 1,29 1,21 1.500 1,13 1,50 2.099 1.884 1.862 1.000 1.346 1.046 1.580 1.196 1.267 1.487 1.225 1,00 1.052 1.071 1.114 1.637 1.414 1.248 500 0,50 0 0,00 2006 2007 2008 2009 2010 2011 2012
Slide 71: Disclaimer
Disclaimer This document has been prepared by VIOHALCO SA/NV (the “Company”) for use at this presentation. The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the
Slide 72: Viohalco
VIOHALCO