Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q2 2010 Earnings Presentation
21 slides from Cognor Holding Sa's earnings presentation, Sep 6, 2010
Slide 1: Q2 2010 Business and Financial Performance
ZŁOMREX S.A. Q2 2010 Business and Financial Performance September 6, 2010
Slide 2: Content
Content 1. Introduction 2. Business overview 3. Financials 4. Q3 2010 outlook 5. Q&A 2
Slide 3: Introduction
ZŁOMREX S.A. Introduction Section 1
Slide 4: Speakers
Introduction Speakers Krzysztof Krzysztof Zola Walarowski CFO Commercial Member of the Director Board Member of the Age – 38 Board 8 yrs with Age – 53 Złomrex 7 yrs with Złomrex 4
Slide 5: Q2 2010 Highlights
Introduction Q2 2010 Highlights Increasing demand and prices Revenues’ increase by 42% compared to Q2 2009 Positive EBIT for the first time since Q3 2008 GDP growth over 3% in Poland Steel production increase by 28% in Poland: Q2 2010 v. Q2 2009. 5
Slide 6: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 7: Business environment
Business overview Business environment CRUDE STEEL PRODUCTION(1) Q2 2010 % YoY Q2 2009 Q2 2008 million tonnes Poland 2,3 28% 1,8 2,8 EU (27) 47,9 53% 31,4 53,2 Global 363,4 28% 284,6 355,3 UNIT PRICES(2) Q2 2010 % YoY Q2 2009 Q2 2008 PLN / Tonne Scrap metal 895 22% 731 1 186 Billets 1 804 29% 1 396
Slide 8: Q2 2010 performance drivers
Business overview Q2 2010 performance drivers SALES Q2 2010 % YoY Q2 2009 Tonnes SCRAP 36 015 107% 17 424 BILLETS 47 902 23% 39 067 FINISHED PRODUCTS 158 182 4% 152 232 SALES Q2 2010 % YoY Q2 2009 000 PLN SCRAP 32 246 153% 12 737 BILLETS 86 412 58% 54 542 FINISHED PRODUCTS 438 872 2% 430 326 8
Slide 9: Segments: Scrap metal
Business overview Segments SCRAP METAL Q2 2010 Q2 2009 EXTERNAL PURCHASES Tonnes FERR 25 790 6 363 ZLMET 96 911 108 448 HSJ 30 277 18 782 ZJEL 0 330 INTERNAL USE Tonnes FERR 79 455 95 229 HSJ 40 954 25 065 ZJEL 0 1 505 SALES TO EXTERNAL CUSTOMERS Tonnes ZLMET 35 744 17 420 OTHER 271 4 SALES ‘000 PLN
Slide 10: Segments: Billets
Business overview Segments BILLETS Q2 2010 Q2 2009 PURCHASES Tonnes 0 0 PRODUCTION Tonnes FERR 67 564 82 866 HSJ 35 040 21 617 ZJEL 0 1 430 INTERNAL USE Tonnes FERR 20 197 44 590 HSJ 34 505 20 826 ZJEL 0 1 430 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 0 251 FERR 47 367 38 025 HSJ 535 791 ZJEL 0 0 SALE
Slide 11: Segments: Finished products
Business overview Segments FINISHED PRODUCTS Q2 2010 Q2 2009 PRODUCTION Tonnes FERR+ZWWB 15 440 31 916 HSJ 31 487 22 140 ZJEL 0 1 475 SALES OF PRODUCTION TO DISTIBUTION Tonnes ZLOM 0 0 HSJ 540 3 444 FERR 2 061 9 839 ZJEL 0 0 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 0 0 FERR 15 767 37 151 HSJ 29 724 1
Slide 12: Segments
Business overview Segments COG - retail 18 303 6 736 - bulk product 4 019 1 534 CGÓR - retail N/C 17 297 - bulk product N/C 7 228 COPO - retail N/C N/C - bulk product N/C N/C STX - retail 444 2 131 - bulk product 242 4 688 COGAT - retail 67 134 39 824 - bulk product 19 967 12 053 OTHER - retail 2 58
Slide 13: Financials
ZŁOMREX S.A. Financials Section 3
Slide 14: P&L
Financials P&L INCOME STATEMENT Q2 2010 Q2 2009 '000 PLN Revenue 531 338 373 622 Cost of sales -461 117 -359 095 Gross profit 70 221 14 527 Other income 7 395 7 876 Distribution expenses -39 174 -30 237 Administrative expenses -18 070 -29 741 Other gains/losses net 2 146 565 Other expenses -5 117 -3
Slide 15: Assets
Financials Assets ASSETS Q2 2010 Q2 2009 '000 PLN A. TOTAL NON-CURRENT ASSETS 725 708 917 637 I. Intangible assets 39 930 46 036 II. Property, plant and equipment 582 605 742 896 III. Other receivables 2 339 1 386 IV. Investment property and other investments 14 731 37 032 V. Prepaid perpetual usufr
Slide 16: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES Q2 2010 Q2 2009 '000 PLN A. EQUITY 247 280 432 785 I. Issued share capital 47 691 47 691 II. Reserves and retained earnings 86 944 263 050 III. Minority interest 112 645 122 044 B. LIABILITIES 1 244 468 1 384 997 I. Non-current liabilities 599
Slide 17: Cash Flow
Financials Cash Flow CASH FLOW Q2 2010 Q2 2009 '000 PLN A. FROM OPERATING ACTIVITIES 19 104 57 537 B. FROM INVESTING ACTIVITIES -10 775 101 495 C. FROM FINANCING ACTIVITIES 2 644 -176 002 NET INCREASE IN CASH 10 973 -16 970 17
Slide 18: Main metrics
Financials Metrics MAIN METRICS Q2 2010 Q2 2009 Liquidity ratio 1,12 1,15 Quick ratio 0,71 0,55 Inventories turnover (days) 51 103 Receivables turnover (days) 53 80 EBITDA margin 5,6% -13,5% Net profit margin -3,6% 1,4% Equity 247 280 432 785 Net debt 791 244 921 277 18
Slide 19: Q3 2010 Outlook
ZŁOMREX S.A. Q3 2010 Outlook Section 4
Slide 20: Q3 2010 outlook
Q3 2010 outlook Polish GDP over 3% Slight decrease of demand and prices Sales and profitability under pressure but EBITDA expected positive Stabilization in capacities’ utilization Finalization of negotiations over certain asset disposals 20
Slide 21: Q&A
_——sZEOMREX S.A. == —_O8A — —— Section 5