Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Q1 2019 Earnings Presentation
19 slides from Cognor Holding Sa's earnings presentation, May 7, 2019
Slide 1: Q1 2019 Business and Financial Performance
Q1 2019 Business and Financial Performance May 07, 2019
Slide 2: Agenda
1. Introduction 2. Business Overview 3. Financials 4. Q2 2019 Outlook 5. CAPEX 2
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 12 years 3
Slide 4: Introduction | Q1 2019 Highlights
Introduction | Q1 2019 Highlights Polish GDP growth estimated at 4.2% down from 5.1% in Q1 2018.; 4.9% in Q4 2018; EU28 GDP growth at 1.5% (1,2% Eurozone), compared to 2,2% in Q1 2018; 1.5% in Q4 2018 (1,2% Eurozone) Polish steel production decreased by 7.3%.; in the EU (28) it went down by 2.
Slide 5: Business Overview | World's Steel Output
Business Overview | World’s Steel Output Crude steel production CRUDE STEEL PRODUCTION Q1 2019 % YoY Q1 2018 m tonnes Europe 75.7 -3.7% 78.6 UE (28) 42.3 -2.0% 43.2 EU down Poland 2.48 -7.3% 2.68 Poland down CIS 24.3 -2.7% 25.0 North America 30.7 4.0% 29.5 USA 22.2 6.8% 20.8 USA strong South America
Slide 6: Business Overview | EU Safeguard
Business Overview | EU Safeguard In July 2018 the European Commission introduced a temporary measure aimed at safeguarding the EU market against the potential increase of imports of steel products resulting from the introduction of US section 232 (25% tax for steel import). Twenty nine product group
Slide 7: Business Overview | BOF / EAF Feedstock Cost
Business Overview | BOF / EAF Feedstock Cost BOF & EAF Feedstock Costs 2017 2018 2019 Feedstock Cost 2011 2012 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 USD / Tonne BOF 470 372 363 284 190 189 260 267 287 251 249 242 285 259 255 268 285 EAF 436 423 388 352 257 216 299 338 259 285 320
Slide 8: Business Overview | Ferrostal
Business Overview | Ferrostal Prices & Spreads Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 (pln/ tonne) FERROSTAL SCRAP METAL - average purchase price 1 079 1 075 1 049 1 102 1 123 scrap metal price down by 44 & 3.9% BILLETS - average price 2 128 2 097 2 103 2 183 2 157 billet sales price down by 28 & 1
Slide 9: Business Overview | HSJ
Business Overview | HSJ Prices & Spreads Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 (pln/ tonne) HSJ SCRAP METAL - average purchase price 1 193 1 180 1 191 1 229 1 223 scrap metal price down by 30 & 2.5% BILLETS - average price 2 521 2 674 2 652 2 733 2 705 billet sales price down by 184 & 6.8% volume
Slide 10: Business Overview | Scrap Metal
Business Overview | Scrap Metal Segments SCRAP METAL Q1 2019 Q4 2018 Q1 2018 PURCHASES FROM EXTERNAL SUPPLIERS Tonnes FERROSTAL 106 400 115 769 112 347 ZŁOMREX 86 178 85 378 90 022 ZŁOMREX purchases down by 4.3% HSJ 54 740 48 366 46 519 INTERNAL USE Tonnes FERROSRAL 127 670 126 753 129 616 HSJ 82 61
Slide 11: Business Overview | Billets
Business Overview | Billets Segments BILLETS Q1 2019 Q4 2018 Q1 2018 PURCHASES Tonnes FERR 0 0 0 PRODUCTION Tonnes FERR 113 134 112 528 115 529 HSJ 72 281 72 367 64 803 INTERNAL USE Tonnes FERR 62 085 92 387 89 637 HSJ 56 292 61 526 54 156 SALES TO EXTERNAL CUSTOMERS Tonnes FERR 23 225 20 909 33 986
Slide 12: Business Overview | Finished Products
Business Overview | Finished Products Segments FINISHED PRODUCTS Q3 2018 Q2 2018 Q3 2017 PURCHASES Tonnes ALL ENTITES 0 0 0 PRODUCTION Tonnes ZWWB 21 692 22 489 21 870 HSJ 45 337 41 542 48 191 PROFIL 45 553 65 533 63 610 SALES TO EXTERNAL CUSTOMERS Tonnes FERROSTAL 74 266 68 083 68 688 HSJ 54 067 43
Slide 13: Financials: Statement of Profit or Loss
Financials STATEMENT OF PROFIT OR LOSS Q1 2019 Q4 2018 Q1 2018 '000 PLN Sales revenue 519 694 471 242 524 231 Revenues down by 0.9% Cost of sales -473 076 -427 178 -450 267 Gross profit 46 618 44 064 73 964 Gross profit down by 37.0% Other income 2 367 3 917 660 Distribution expenses -20 218 -20 840
Slide 14: Financials: Assets
Financials ASSETS Q1 2019 Q4 2018 Q1 2018 '000 PLN Increase of intangible assets due to R&D costs: A. TOTAL NON-CURRENT ASSETS 437 508 379 296 389 353 Acquistions 0.9m (LTM 6.8) I. Intangible assets 18 661 17 965 12 884 Disposals 0.0m (LTM 0.0) II. Property, plant and equipment 331 741 284 617 284 0
Slide 15: Financials: Equity and Liabilities
Financials EQUITY AND LIABILITIES Q1 2019 Q4 2018 Q1 2018 '000 PLN A. EQUITY 302 989 295 885 254 233 Equity up by 48.8m I. Issued share capital 182 041 180 626 177 923 (LTM net profit, dividend PLN11.9) II. Reserves and retained earnings 102 855 97 538 59 201 III. Minority interest 18 093 17 721 17
Slide 16: Financials: Cash Flow and Main Metrics
Financials Working capital outflow 58.8m CASH FLOW Q1 2019 Q4 2018 Q1 2018 (increase of inventories & '000 PLN receivables, decrease of trade liabilities) A. OPERATING ACTIVITIES -48 856 117 501 29 838 CF CAPEX (-) 12.7m B. INVESTING ACTIVITIES -11 979 -20 339 461 CF asset dispositions 0.7m C. FINAN
Slide 17: Q2 2019 Outlook | Main Factors
Q2 2019 Outlook | Main Factors 1 2 3 Poland’s EAF crude steel production under pressure due to BOF mills; EAF producers stable at high utilization Demand picture mixed; better for billets rates. Polish steel consumption growth Further weakening of GPD growth for and weaker for finished products, in
Slide 18: CAPEX
CAPEX 1. Gliwice melting shop (Ferrostal): increase of capacities by 550 k tonnes reduction of variable cost by PLN 4.0 / tonne Planned commissioning Q4 2019 Status likely to delay to Q2 2020 2. Kraków rolling mill (Profil): reduction of variable cost by PLN 20.0 / tonne reduction of fixed cost by P
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 cognor@cognor.eu, www.cognor,pl 19