Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Q3 2013 Earnings Presentation
23 slides from Cognor Holding Sa's earnings presentation, Nov 19, 2013
Slide 1: Q3 2013 Business and Financial Performance
Q3 2013 Business and Financial Performance November 19, 2013
Slide 2: Content
Content 1. Introduction 2. Business Overview 3. Financials 4. Q4 2013 Outlook 5. Refinancing and Mid-term CAPEX 6. Q&A 2 2013-11-19
Slide 3: Introduction
Section 1 Introduction 3 2013-11-19
Slide 4: Introduction – Speaker Krzysztof Zoła, CFO
Introduction Speaker Krzysztof Zoła CFO Age – 41 11 years with the Company 4 2013-11-19
Slide 5: Q3 2013 Highlights
Introduction Q3 2013 Highlights • Comparison with Q2 2013: • much higher production and sales of finished products • significant decrease of HSJ finished products’ spread • total shipments (ferrous scrap metal + billets + products) up by 4.4%; revenues flat, EBITDA lower by 25.2% • Comparison with Q
Slide 6: Business Overview
Section 2 Business Overview 6 2013-11-19
Slide 7: Business Overview: Environment
Business Overview Environment CRUDE STEEL PRODUCTION (1)_ Q3 2013 % YoY Q2 2013 Q3 2012 million tonnes Poland 2.3 5% 2.0 2.1 EU (27) 39.9 -1% 42.9 45.0 China 197.2 11% 197.3 182.0 Global 395.9 5% 400.0 388.4 AVERAGE EXCHANGE RATES (2) Q3 2013 Q3 2012 PLN EUR/PLN 4.25 3.94 % change 7.8% USD/PLN 3.21
Slide 8: Business Overview: Prices
Business Overview Prices PRICES AND SPREADS Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 (pln/ tonne) FERROSTAL SCRAP METAL - all purchases 1 045 1 102 1 165 1 136 1 193 BILLETS - sales to external customers 1 961 2 018 2 132 2 009 2 049 BILLET SPREAD 916 916 967 874 856 FINISHED PRODUCTS - sales to exte
Slide 9: German scrap surcharge
Business Overview German scrap surcharge German scrap surcharges development is a key driver for HSJ product prices. Those are composed of : − base component − scrap surcharge − alloy surcharge In Q3 2013 the scrap surcharge went down by EUR 26/ tonne as compared to Q2 2013 while HSJ scrap cost decr
Slide 10: Segments: Scrap Metal
Business Overview Segments SCRAP METAL Q3 2013 Q2 2013 Q3 2012 PURCHASES FROM EXTERNAL SUPPLIERS Tonnes FERR 45 642 44 684 29 580 Q2 2013 comparison ZLMET 95 434 93 874 80 822 HSJ 21 684 22 534 22 237 - ZLMET purchases up by 1.7% INTERNAL USE Tonnes - shipments up by 4.5% FERR 91 965 88 721 70 098 -
Slide 11: Segments: Billets
Business Overview Segments BILLETS Q3 2013 Q2 2013 Q3 2012 PRDUCTION Tonnes Q2 2013 comparison FERR 81 900 79 241 63 159 HSJ 42 930 47 028 36 258 - production down by 1.1% INTERNAL USE Tonnes - shipments down by 12.0% FERR 42 862 36 972 25 902 - sales down by 15.3% HSJ 41 062 42 790 31 392 SALES TO
Slide 12: Segments: Finished Products
Business Overview Segments FINISHED PRODUCTS Q3 2013 Q2 2013 Q3 2012 Q2 2013 comparison PRDUCTION Tonnes ZWWB 22 556 14 752 22 387 HSJ 36 639 40 566 33 154 - production up by17.6% PROFIL 21 849 13 606 n/c - shipments up by 14.6% - sales up by 7.3% SALES TO EXTERNAL CUSTOMERS Tonnes FERR 45 581 37 87
Slide 13: Financials
Section 3 Financials 13 2013-11-19
Slide 14: Financials: Income Statement
Financials INCOME STATEMENT Q3 2013 Q2 2013 Q3 2012 '000 PLN Revenue 343 035 337 687 311 332 Q2 2013 comparison Cost of sales -315 745 -309 084 -290 615 Gross profit 27 290 28 603 20 717 - revenues up by 1.6% Other income 4 160 1 831 2 536 - gross profit down by 4.6% Distribution expenses -10 232 -9
Slide 15: Financials: Assets
Financials ASSETS Q3 2013 Q2 2013 Q3 2012 '000 PLN A. TOTAL NON-CURRENT ASSETS 454 213 463 417 477 886 I. Intangible assets 12 755 13 366 14 571 II. Property, plant and equipment 299 382 303 855 325 489 III. Other receivables 42 204 43 331 41 398 A.III. includes PLN 42.2m of the Croatian Claim IV. I
Slide 16: Financials: Equity and Liabilities
Financials EQUITY AND LIABILITIES Q3 2013 Q2 2013 Q3 2012 '000 PLN A. EQUITY 137 767 136 274 188 486 I. Issued share capital 132 444 132 444 132 444 II. Reserves and retained earnings -8 232 -9 362 43 348 Q2 2013 comparison III. Minority interest 13 555 13 192 12 694 - decrease of indebtedness by 7.
Slide 17: Cash Flow and Main Metrics
Financials CASH FLOW Q3 2013 Q2 2013 Q3 2012 '000 PLN A. OPERATING ACTIVITIES 23 626 25 071 - 21 850 A. Working capital inflow of PLN 0.7m B. INVESTING ACTIVITIES -3 102 12 128 B. CAPEX (-) 3.4m C. FINANCING ACTIVITIES -31 954 -16 398 -19 701 C. Repayments of financial liabilities at PLN (-) 9.1m NE
Slide 18: Q4 2013 Outlook
Section 4 Q4 2013 Outlook 18 2013-11-19
Slide 19: Outlook: Main factors
Q2 2013 Outlook Main factors • Eurozone GDP improving • Further increase of Polish GDP • Polish crude steel production expected to continue the positive trend • The demand for steel products improving alnside with the margins • Closing of the refinancing 19 2013-11-19
Slide 20: Refinancing and Mid-term CAPEX
Section 5 Refinancing and Mid-term CAPEX 20 2013-11-19
Slide 21: Refinancing
Refinancing and Mid-term CAPEX Refinancing Yesterday Cognor have commenced the exchange offer and the simultaneous UK court supervised process called scheme of arrangement. Based on the support of 69% of the holders Cognor hope to be able to finalize the refinancing by the next coupon payment date u
Slide 22: Q&A
> \ / > i \N Section 6 Together reach more Q&A 22 2013-11-19
Slide 23: 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 23 2012-05-18