Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q1 2008 Earnings Presentation
24 slides from Cognor Holding Sa's earnings presentation, Jun 9, 2008
Slide 1: Q1 2008 Business and Financial Performance
ZŁOMREX S.A. Q1 2008 Business and Financial Performance June 9, 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: Q1 2008 Highlights
Introduction Q1 2008 Highlights Payment of STALEXPORT S.A. (STX) purchase price set at PLN 138,7 million; February – April 2008. Discharging of all Zeljezara Split’s (ZJEL) long term bank lines at the amount of approximately EUR 20 million and releasing guarantees granted by the Croatian State; Febr
Slide 6: Q1 2008 Highlights
Introduction Q1 2008 Highlights Fair market environment GDP growth over 6% in Poland Steel consumption decline by 5% in Poland after extremely strong Q1 2007 when it went up by 28% YoY. Increasing steel prices into Q2 2008 Record breaking first quarter Company’ s sales 6
Slide 7: Q1 2008 Highlights
Introduction Q1 2008 Highlights INCOME STATEMENT Q1 2008 Q1 2007 Q1 2006 '000 PLN Revenue 1 060 578 588 711 356 974 Cost of sales -937 202 -500 249 -323 865 Gross profit 123 376 88 462 33 109 Other income 4 743 2 907 317 Distribution expenses -38 986 -9 882 -5 531 Administrative expenses -41 442 -23
Slide 8: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 9: Business environment
Business overview Business environment CRUDE STEEL PRODUCTION(1) Q1 2008 % YoY Q1 2007 Q1 2006 million tonnes Poland 2,7 0% 2,7 2,3 EU (25) 51,8 -2% 53,1 49,1 Global 340,1 7% 318,9 288,4 STEEL USE(2) Q1 2008 % YoY Q1 2007 Q1 2006 million tonnes Poland 2,869 -5% 3,012 2,352 long produts 1,210 -8% 1,3
Slide 10: Q1 2008 performance drivers
Business overview Q1 2008 performance drivers 2008 2007 SALES NEW ACQUISITIONS’ CONTRIBUTION REPORTED HISTORICAL REPORTED ZLOMREX VASTH STX ZJEL TOTAL Tonnes SCRAP 43 564 42 960 0 604 0 604 48 019 BILLETS 57 310 48 657 0 8 646(1) 7 8 646 51 911 FINISHED PRODUCTS 322 939 136 114 116 129 51 716(2) 18
Slide 11: Segments: Scrap metal
Business overview Segments SCRAP METAL Q1 2008 Q1 2007 PURCHASES FROM EXTERNAL SUPPLIERS (Tonnes) ZLOM 0 182 194 ZLMET 164 284 N/C HSJ 50 590 49 303 ZJEL 20 470 N/C SALES TO EXTERNAL CUSTOMERS (Tonnes) ZLOM 2 47 946 ZLMET 42 958 N/C OTHER 604 73 SALES ('000 PLN) CONSOLIDATED 35 356 36 024 TOTAL PURC
Slide 12: Segments: Billets
Business overview Segments BILLETS Q1 2008 Q1 2007 PRODUCTION (Tonnes) FERR 88 653 94 651 HSJ 60 694 61 771 ZJEL 18 323 N/C SALES TO EXTERNAL CUSTOMERS (Tonnes) ZLOM 41 014 49 309 FERR 0 0 HSJ 7 643 2 602 STX 8 646(1) N/C ZJEL 7 N/C SALES ('000 PLN) CONSOLIDATED 98 906 81 697 TOTAL PRODUCTION in TON
Slide 13: Segments: Finished products
Business overview Segments FINISHED PRODUCTS Q1 2008 Q1 2007 PRODUCTION (Tonnes) ZWWB 29 984 36 136 FERR 10 812 18 246 HSJ 51 222 54 986 ZJEL 19 706 N/C SALES TO EXTERNAL CUSTOMERS (Tonnes) RETAIL 138 512 34 173 BULK 184 427 116 979 SALES ('000 PLN) CONSOLIDATED 838 428 383 123 TOTAL PRODUCTION in T
Slide 14: Financials
ZŁOMREX S.A. Financials Section 3
Slide 15: P&L
Financials P&L INCOME STATEMENT Q1 2008 REPORTED ZLX HIST VASTH STX ZJEL ELIMIN '000 PLN Revenue 1 060 578 572 644 344 295 141 872 35 588 -33 821 Cost of sales -937 202 -501 781 -301 017 -131 845 -36 009 33 450 Gross profit 123 376 70 863 43 278 10 027 -421 -371 Other income 4 743 1 513 1 544 352 1
Slide 16: P&L Adjusted
Financials P&L Adjusted INCOME STATEMENT ZLX HISTORICAL Q1 2008 ADJ Q1 2007 Q1 2006 ADJ '000 PLN Revenue 572 644 588 711 460 975 Cost of sales -501 781 -500 249 -416 307 Gross profit 70 863 88 462 44 668 Other income 1 513 2 907 1 294 Distribution expenses -10 512 -9 882 -10 699 Administrative expen
Slide 17: Assets
Financials Assets ASSETS Q1 2008 Y 2007 Q1 2007 '000 PLN A. TOTAL NON-CURRENT ASSETS 1 206 519 1 208 532 774 569 I. Intangible assets 44 596 45 973 50 733 II. Property, plant and equipment and usfruct of land 1 113 788 1 114 816 686 996 III. Other receivables 2 992 2 979 1 697 IV. Investment propert
Slide 18: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES Q1 2008 Y 2007 Q1 2007 '000 PLN A. EQUITY 717 651 689 568 458 369 I. Issued share capital 47 691 47 691 47 691 II. Reserves and retained earnings 522 901 493 854 347 985 III. Minority interest 147 059 148 023 62 693 B. LIABILITIES 1 937 180 1
Slide 19: Cash Flow
Financials Cash Flow CASH FLOW Q1 2008 Q1 2007 Q1 2006 '000 PLN A. FROM OPERATING ACTIVITIES 96 830 -43 299 3 052 B. FROM INVESTING ACTIVITIES -146 383 -128 970 -180 274 C. FROM FINANCING ACTIVITIES -95 033 198 122 156 406 19
Slide 20: Metrics
Financials Metrics MAIN METRICKS Q1 2008 Y 2007 Q1 2007 Liquidity ratio 1,27 1,28 1,85 Quick ratio 0,66 0,68 1,01 Inventories turnover (days) 66 86 102 Receivables turnover (days) 55 56 614 EBITDA margin 4,0% 9,3% 3,4% Nett profit margin 1,3% 4,5% 1,5% Equity 717 651 689 568 458 369 Net debt 1 013 7
Slide 21: Q1 2008 v. Budget
Financials Q1 2008 v. Budget Q1 2008 REPORTED BUDGETED '000 PLN Revenues 1 060 578 1 008 164 EBITDA 61 025 60 000 net profit 13 298 5 072 Working capital 710 871 716 459 Net interest expenses (cash-flow wise) -35 029 -35 647 CAPEX -28 357 -10 000 net debt 1 013 730 1 024 047 Moody's adjusted net deb
Slide 22: Q2 2008 Outlook
ZŁOMREX S.A. Q2 2008 Outlook Section 4
Slide 23: Q2 2008 outlook
Q2 2008 outlook Polish GDP stable at 6% Slight increase in Polish steel consumption in comparison to Q2 2007 Good sales and profitability BUDGET SUMMARY Q1 2008 Q2 2008 Q3 2008 Q4 2008 TOTAL '000 PLN Revenues 1 008 164 1 224 683 1 327 983 1 062 352 4 623 182 EBITDA 60 000 95 000 90 000 55 000 300 00
Slide 24: Q&A
ZŁOMREX S.A. Q&A Section 4