Slide 1: Q1 2023 Business and Financial Performance
Introduction Group Overview Q1 2023 Business Market and Financial Financials Performance Capex Outlook MAY 17, 2023 Annexes 1
Slide 2: Speaker
Introduction Speaker Group Overview Market Financials Capex Outlook KRZYSZTOF ZOŁA Annexes 2
Slide 3: Key Macro Trends
Key Macro Trends Introduction Group Overview Market Increased geopolitical risk De-globalisation Protectionism military spending onshoring, reshorig, reindustrialisation of the EU Financials Underinvestment in energy sector Capex Supply chain shortening the end of commodity abundance and CO2 emissio
Slide 4: Cognor – Modern EU Steelmaker
Cognor – Modern EU Steelmaker Introduction Group Overview Market 30 years Exposure on mid European market: Track record of resilience: of industry experience PL, DE, CZ, SK, HU, RO, LT, crisis in the Polish steel LV, ES industry in the 90s; hostile EU Financials policy and VAT evasion practices in P
Slide 5: Cognor – Modern EU Steelmaker
Cognor – Modern EU Steelmaker Introduction Group Overview Strong presence on Low debt Rational and Market Polish scrap market very strong balance sheet consequent CAPEX vertical integration structure aimed at volume stabilising raw material expansion and cost saving Financials supplies including of
Slide 6: Q1 2023 Highlights
Q1 2023 Highlights Introduction Group Overview Weak GPD growth Falling billet and Spreads shrinking for Market 0% Poland and 1.3% EU finished product prices all billets and products YoY compared to Q4 2022 compared to Q4 2022 yet while still slightly above still wider than in Q1 2022 Financials Q1 2
Slide 7: Structure
Structure Introduction Group Stalowa Wola Gliwice Overview Market Financials Capex Stalowa Wola Stalowa Wola Siemianowice Śląskie (LSM) Zawiercie (ZW-WB) Kraków (Profil) Outlook Annexes 7
Slide 8: Vertically Integrated Business Model
Vertically Integrated Business Model Introduction EXTERNAL CLIENTS Group KATOWICE (PL) Overview Production of bras bars and zinc alloys (finished EXTERNAL CLIENTS products) Non- Market ferrous scrap metal POLAND ZAWIERCIE / suppliers Sourcing + processing SIEMIANOWICE (PL) of ferrous and non-ferrous
Slide 9: Company Facilities
Company Facilities Introduction Olsztyn Group Overview Headquater Market Gorzów Wielkopolski Scrap metal sites Poznań Grodzisk Mazowiecki Financials Łódź Steel production Capex Tomaszów Mazowiecki Radom Lublin Non-ferrous production Wrocław Świdnica Outlook Gliwice PORAJ Kielce Opole Zawiercie Elect
Slide 10: Steel Production Facilities
PORAJ Steel Production Facilities ZAWIERCIE GLIWICE STALOWA WOLA Introduction SIEMIANOWICE ŚLĄSKIE Melting shops & rolling mills KRAKÓW NOWA HUTA Group Overview Location Product portfolio Production capacities Technology Employment HSJ Stalowa Wola Billets, Bars, Plates • Billets: 300k tonnes • 1 EA
Slide 11: History [1]
History [1] Introduction Group Overview 1990 2000 2004 Przemysław Acquisition Acquisition of 82,6% of Sztuczkowski of ZW-WB, Ferrostal, a melting starts up Złomrex which a rolling mill shop in Gliwice Market trades in non-ferrous scrap in Zawiercie metals 2005 Acquisition of 100% of HSJ, Financials
Slide 12: History [2]
History [2] Introduction Group Overview 2007 2013 2022 Centrostal changes its Acquisition of 95% JAP acquisition name into Cognor, of Profil, a rolling Market integration of mill in Kraków distribution assets Financials Capex Outlook Złomrex acquires 64,4% of shares Cognor sells all distribution ass
Slide 13: Group Overview - Group Structure & Shareholders
Group Overview - Group Structure & Shareholders Introduction Group 24,43% Overview Free float 100% Market JAP + SPEDEX 100% 100% 75,57% Przemysław Cognor Holding S. A. PS Holdco Sp. Z o. o. Sztuczkowski WSE quoted Financials 4 workers Sp. Z o. o. 94,39% 51% Capex Cognor Holding SK Cognor S. A. – mai
Slide 14: 2022 Circular Economy & Sustainable Steelmaking
2022 Circular Economy Introduction & Sustainable Steelmaking Group Overview 802 115 673 579 598 817 468 502 tonnes of scrap tonnes of scrap metal tonnes of semi- tonnes of billets Market metal sourced used internally finished products processed internally (billets) production Financials SCRAP BILLET
Slide 15: Segments Performance
Segments Performance Introduction Quantities per business segments Group Overview Scrap metal (thousands of tonnes) Billets (thousands of tonnes) 267 228 207 202 192 184 180 Market 172 156 152 149 137 127 134 136 122 121112 87 80 36 42 33 43 44 43 33 35 30 28 Financials Q1 2022 Q2 2022 Q3 2022 Q4 20
Slide 16: Market - EAF vs BOF technology
Market - EAF vs BOF technology Introduction Electric Arc Furnace (EAF) Basic Oxygen Furnace (BOF) Group Overview Feedstock 24,9% Iron ore (1,600 kg) applied to Market Scrap metal (1,150 kg) produce 100,0% 8,7% Coking coal (600 kg) 1000 kg of 66,4% crude steel Scrap metal (210 kg) Financials • Approx
Slide 17: EU market protection tools
EU market protection tools Introduction Group Anti Dumping Carbon Tax Overview Since 2016 the EU has been determined on market protection. Aimed at preventing carbon leakage. It will start in 01.10.2023 The anti-dumping measures are numerous and financially severe and be fully effective from 01.01.2
Slide 18: BOF / EAF Feedstock Cost (USD / tonne)
BOF / EAF Feedstock Cost (USD / tonne) Introduction Feedstock costs EAF vs BOF 600 Group Overview 500 400 300 Market 200 100 22 0 -33 -21 -100 -50 -51 Financials Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Difference BOF EAF Capex Raw material costs (USD / tonne) Feedstock Cost Model BOF EAF 600 500 Out
Slide 19: World and the EU
World and the EU Introduction Group Overview World's steel output (m tonnes) Poland output (m tonnes) 500 3 Market 450 400 2 350 Financials 300 2 250 Capex 200 1 150 Outlook 100 1 50 Annexes 0 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 China Other Asia UE(27) C
Slide 20: Billets and Finished Products Cognor's Share and Position in 2022
Billets and Finished Products Introduction Cognor’s Share and Position in 2022 Group Overview Producer market share Revenue split by business segments Agriculture Defence (thousands of tonnes) 4% 4% Railway Market 5% Construction Other… 30% 305 Iron and steel Financials 7% Mining 8% Machine Automoti
Slide 21: Prices and conversion spreads (PLN / tonne)
Prices and conversion spreads (PLN / tonne) Introduction Group Overview Ferrostal HSJ 6 000 6 000 Market 5 000 5 000 Financials 4 000 4 000 3 000 3 000 Capex 2 000 2 000 1 000 1 000 Outlook 0 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 scrap metal billets finise
Slide 22: EBIT Generation Breakdown (PLN thousands)
EBIT Generation Breakdown (PLN thousands) Introduction Group Overview finished products HSJ 3 792 Market 4 965 other 6 431 finished products Ferrostal Financials billets HSJ 10 217 billets Ferrostal 46 409 Capex non-ferrous products non-ferrous scrap metal Outlook 15 718 electrodes and ferroalloys f
Slide 23: EBIT Bridge (PLN thousands)
EBIT Bridge (PLN thousands) Introduction Group Overview Market Financials Capex Outlook Annexes 23
Slide 24: Q1 2023 P&L Waterfall (PLN thousands)
Q1 2023 P&L Waterfall (PLN thousands) Introduction Group Overview Market Financials Capex Outlook Revenue Cost of Gross Other Distributi Administr Other Other EBIT Financial Financial Net Share of Excess in Profit Income Profit for sales profit income on ative gains/(los expenses income expenses fin
Slide 25: Balance Sheet (PLN thousands)
Balance Sheet (PLN thousands) Introduction 2 500 Cash and cash equivalents Group Overview Trade receivables 1 500 Assets Market Inventories 500 Property, plant and equipment Financials Capex -500 EQUITY Liabilities Outlook -1 500 Trade payables Annexes Current loans and borrowings Non-current loans
Slide 26: Balance Sheet Working Capital (PLN thousands)
Balance Sheet Introduction Working Capital (PLN thousands) Group Overview 679 225 612 020 546 481 549 078 545 315 503 698 516 730 Market 415 411 437 130 444 009 Financials Capex -404 098 -431 067 -542 084 -550 606 Outlook -741 536 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Annexes inventories receivabl
Slide 27: Cash Flows (PLN thousands)
Cash Flows (PLN thousands) Operational CAPEX Financial Cash balance Increase Decrease Introduction Group Overview Market Financials Capex Outlook Annexes Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 27
Slide 28: Net Debt (PLN thousands) & Leverage
Net Debt (PLN thousands) & Leverage Introduction Group Overview Debt ratios 180 000 0,25 Market 164 790 160 000 142 600 140 000 0,20 120 000 113 163 Financials 0,15 100 000 86 183 80 000 62 262 0,10 Capex 60 000 40 000 0,05 20 000 Outlook 0 0,00 Q1 2022 Q2 2022 Q2 2022 Q4 2022 Q1 2023 net debt net d
Slide 29: Cognor in new scale (thousand tonnes)
Cognor in new scale (thousand tonnes) Introduction Production of billets Production of bars Group semi-finished products finished products Overview Market +252 ZAWIERCIE Q3 2024 / SIEMIANOWICE ŚL. merchant bars 198 68 New capacities Financials +155 +160 Q3 2023 KRAKÓW Existing Capacities 304 375 240
Slide 30: Capex- Costs, Financing and Effects
Capex- Costs, Financing and Effects Introduction Group Gliwice Kraków Siemianowice Śląskie Overview replacement of EAF and ancillary items entire mill modernisation plus spooling most modern LSM mill in Europe (Completed) line (Q3 2023; Q4 2023 for spooling line) (Q3 2024) Market Cost – approximatel
Slide 31: Outlook – Q2 2023
Outlook – Q2 2023 Introduction Group Prices of Overview Macro trends Spreads for (slide 3) unchanged scrap, billets and finished narrowing for both billets Market products expected to fall and products QoQ QoQ Financials Capex Rebar Low capacity EBITDA market to remain weak utilisation weaker report
Slide 32: P&L (PLN thousands)
P&L (PLN thousands) Introduction STATEMENT OF PROFIT OR LOSS Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 '000 PLN Sales revenue 962 036 1 032 055 749 424 923 175 887 447 Revenues down by 75m & 8% Group Cost of sales -735 701 -759 155 -525 130 -752 424 -783 884 - shipments down by 28% Overview Gross prof
Slide 33: Assets (PLN thousands)
Assets (PLN thousands) Introduction ASSETS Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 '000 PLN A. TOTAL NON-CURRENT ASSETS 666 055 668 823 685 776 740 355 837 426 Fixed assets up by 171m & 26% Group I. Intangible assets - CAPEX 234m 14 924 14 815 14 558 12 851 20 427 Overview II. Property, plant and eq
Slide 34: Equity and Liabilities
Equity and Liabilites Introduction EQUITY AND LIABILITIES Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 '000 PLN A. EQUITY 800 561 964 602 1 094 938 1 228 431 1 405 164 Group I. Issued share capital 257 131 257 131 257 131 257 131 257 131 Equity up by PLN 605m & 76% Overview II. Reserves and retained earn
Slide 35: Cash Flows & Metrics
Cash Flows & Metrics Introduction CASH FLOW Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 '000 PLN A. OPERATING ACTIVITIES 194 114 7 002 122 453 162 849 34 085 working capital intflow 24m Group B. INVESTING ACTIVITIES income tax outflow 83m -79 351 -16 540 -30 569 -109 374 -33 984 Overview C. FINANCING AC
Slide 36: Dividends and Share Quoting
36 Group Capex Market Outlook Overview Annexes Financials Introduction 2018 2020 Share price (PLN) Equity Nett profit P / BV P/E Number of shares Dividend policy 2022 0,1 2021 0,28 0,15 0,15 1,22 16.05.2023 Dividends 2022 2,8 1,38 8,71 610 337 1 228 431 2023 25% of consolidated net profit 171 420 66
Slide 37: Cognor Holding S.A.
Introduction Group Overview Market Financials Cognor Holding S.A. ul. Zielona 26 Capex 42 - 360 Poraj Outlook tel. +48 34 316 01 10 fax +48 34 316 01 12 Annexes www.cognor.eu 37