Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q1 2010 Earnings Presentation
21 slides from Cognor Holding Sa's earnings presentation, Jun 8, 2010
Slide 1: Q1 2010 Business and Financial Performance
ZŁOMREX S.A. Q1 2010 Business and Financial Performance June 8, 2010
Slide 2: Content
Content 1. Introduction 2. Business overview 3. Financials 4. Q2 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 6 yrs with Złomrex 4
Slide 5: Q1 2010 Highlights
Introduction Q1 2010 Highlights Increasing but still weak demand with prices coming up. Sale of 6 million of shares in COG. Production capacities utilized under maximum levels (FERR 53%, HSJ 35%) Positive EBITDA for the first time since Q3 2008 GDP growth over 3% in Poland Steel production increase
Slide 6: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 7: Business environment
Business overview Business environment CRUDE STEEL PRODUCTION(1) Q1 2010 % YoY Q1 2009 Q1 2008 million tonnes Poland 1,8 29% 1,4 2,7 EU (27) 42,1 37% 26,5 51,8 Global 342,4 30% 263,3 340,1 UNIT PRICES(2) Q1 2010 % YoY Q1 2009 Q1 2008 PLN / Tonne Scrap metal 776 29% 600 834 Billets 1 387 -3% 1 427 1
Slide 8: Q1 2010 performance drivers
Business overview Q1 2010 performance drivers SALES Q1 2010 % YoY Q1 2009 Tonnes SCRAP 15 773 -47% 29 537 BILLETS 32 678 87% 17 442 FINISHED PRODUCTS 143 273 -22% 184 292 SALES Q1 2010 % YoY Q1 2009 000 PLN SCRAP 12 248 -31% 17 717 BILLETS 45 332 82% 24 888 FINISHED PRODUCTS 323 391 -31% 470 601 8
Slide 9: Segments: Scrap metal
Business overview Segments SCRAP METAL Q1 2010 Q1 2009 EXTERNAL PURCHASES Tonns ZLOM 0 0 FERR 12 854 9 523 ZLMET 64 500 82 811 HSJ 19 205 18 944 ZJEL 0 7 568 INTERNAL USE Tonns FERR 59 440 58 103 HSJ 27 550 26 492 ZJEL 0 7 682 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 0 0 ZLMET 15 523 29 136 OTHER 250
Slide 10: Segments: Billets
Business overview Segments BILLETS Q1 2010 Q1 2009 PURCHASES Tonns 0 0 PRODUCTION Tonns FERR 49 247 50 046 HSJ 22 764 22 188 ZJEL 6 572 INTERNAL USE Tonns FERR 16 569 33 812 HSJ 22 764 21 118 ZJEL 0 6 563 SALES TO EXTERNAL CUSTOMERS Tonns ZLOM 0 129 FERR 32 678 16 234 HSJ 0 1 070 ZJEL 0 9 SALES '000
Slide 11: Segments: Finished products
Business overview Segments FINISHED PRODUCTS Q1 2010 Q1 2009 PRODUCTION Tonnes ZWWB 13 644 20 527 FERR 0 12 292 HSJ 21 038 25 380 ZJEL 0 7 076 SALES OF PRODUCTION TO DISTIBUTION Tonnes ZLOM 0 250 HSJ 0 990 FERR 4 509 7 774 ZJEL 0 809 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 0 24 FERR 14 815 31 416 HS
Slide 12: Segments
Business overview Segments COG - retail 19 985 8 308 - bulk product 6 338 705 CGOR - retail N/C 12 386 - bulk product N/C 8 228 STX - retail 5 12 325 - bulk product 0 2 025 COGAT - retail 60 717 55 576 - bulk product 18 253 18 934 OTHER - retail 899 2 753 SALES '000 PLN CONSOLIDATED 323 391 470 601
Slide 13: Financials
ZŁOMREX S.A. Financials Section 3
Slide 14: P&L
Financials P&L INCOME STATEMENT Q1 2010 Q1 2009 '000 PLN Revenue 423 529 561 243 Cost of sales -399 973 -550 658 Gross profit 23 556 10 585 Other income 4 148 14 331 Distribution expenses -25 991 -37 423 Administrative expenses -26 483 -39 822 Other gains/losses net 13 493 -8 390 Other expenses -553
Slide 15: Assets
Financials Assets ASSETS Q1 2010 Q1 2009 '000 PLN A. TOTAL NON-CURRENT ASSETS 792 030 997 963 I. Intangible assets 40 558 47 085 II. Property, plant and equipment 645 119 817 849 III. Other receivables 11 274 1 556 IV. Investment property and other investments 5 278 43 949 V. Prepaid perpetual usufr
Slide 16: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES ‘000 PLN Q1 2010 Q1 2009 A. EQUITY 220 141 449 727 I. Issued share capital 47 691 47 691 II. Reserves and retained earnings 84 874 248 860 III. Minority interest 87 576 153 176 B. LIABILITIES 1 181 115 1 590 287 I. Non-current liabilities 555
Slide 17: Cash Flow
Financials Cash Flow CASH FLOW Q1 2010 Q1 2009 '000 PLN A. FROM OPERATING ACTIVITIES 10 691 -61 089 B. FROM INVESTING ACTIVITIES 15 772 -55 978 C. FROM FINANCING ACTIVITIES -29 850 57 666 NET INCREASE IN CASH -3 387 -59 401 17
Slide 18: Metrics
Financials Metrics MAIN METRICS Q1 2010 Q1 2009 Liquidity ratio 0,86 1,28 Quick ratio 0,46 0,57 Inventories turnover (days) 57 88 Receivables turnover (days) 57 60 EBITDA margin 0,1% -8,1% Net profit margin -3,7% -24,0% Equity 220 141 449 727 Net debt 759 310 1 064 346 18
Slide 19: Q2 2010 Outlook
ZŁOMREX S.A. Q2 2010 Outlook Section 4
Slide 20: Q2 2010 outlook
Q2 2010 outlook Polish GDP over 3% Continuation of prices increases Improved sales, positive EBITDA Recovery in capacities utilization Finalization of negotiations over certain asset disposals 20
Slide 21: Q&A
_——sZEOMREX S.A. == —_O8A — —— Section 5