Slide 1: 2023 Business and Financial Performance
Introduction Group Overview Market Financials 2023 Business and Financial Performance Capex Outlook April 25, 2024 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 and military spending and onshoring and reindustrialisation of the EU Financials Long-term underinvestment in energy sector; CO2 emission costs Capex the end of commodity abundance as incre
Slide 4: Cognor – Modern EU Steelmaker
Cognor – Modern EU Steelmaker Introduction Group Overview Market 30 years Exposure on mid European market: Trackrecord of resilience: crisis in the Polish steel of industry experience PL, DE, CZ, SK, HU, RO, LT, industry in the 90s; hostile EU LV, ES policy and VAT evasion Financials practices in Po
Slide 5: Cognor – Modern EU Steelmaker
Cognor – Modern EU Steelmaker Introduction Group Overview Strong presence on Low debt Rational and Market Polish scrap market strong balance sheet consequent CAPEX vertical integration structure aimed at volume stabilising raw material expansion and cost saving Financials supplies including of energ
Slide 6: 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 6
Slide 7: 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 8: Company Facilities
Company Facilities Introduction Olsztyn Group Overview Headquarter Market Gorzów Wielkopolski Scrap metal sites Poznań Grodzisk Mazowiecki Financials Łódź Steel production facilities Capex Tomaszów Mazowiecki Radom Lublin Non-ferrous metals Wrocław foundry Świdnica Outlook Gliwice PORAJ Kielce Opole
Slide 9: Steel Production Facilities
PORAJ ZAWIERCIE Introduction Steel Production Facilities GLIWICE SIEMIANOWICE ŚLĄSKIE STALOWA WOLA 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 10: 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 11: History [2]
History [2] Introduction Group Overview 2007 2013 2023 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 12: Group Overview - Group Structure & Shareholders
Group Overview - Group Structure & Shareholders Introduction Group 22,31% Overview Free float 100% Market JAP Industries s.r.o. 100% 77,69% Przemysław Cognor Holding S. A. Sztuczkowski WSE quoted Financials 4 workers Sp. Z o. o. 94,40% 50,90% Capex Cognor Holding SK Cognor S. A. – main operational e
Slide 13: Segments Performance
Segments Performance Introduction Quantities per business segments Group Overview Scrap metal (thousands of tonnes) Billets (thousands of tonnes) 692 713 857 868 861 675 780 761 803 802 598 599 531 542 674 483 585549 469 Market 290 185 159 152 164 165 142 137 156 136 111 Financials 2019 2020 2021 20
Slide 14: 2023 Circular Economy & Sustainable Steelmaking
2023 Circular Economy Introduction & Sustainable Steelmaking Group Overview 584 543 548 775 483 083 290 289 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: 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 started in 01.10.2023 and The anti dumping measures are numerous and financially be fully effective from 01.01.2026. It wi
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) 8,7% produce 100,0% Coking coal (600 kg) 1000 kg of 66,4% crude steel Scrap metal (210 kg) Financials • Approx
Slide 17: BOF / EAF Feedstock Cost (USD / tonne)
BOF / EAF Feedstock Cost (USD / tonne) Introduction Feedstock costs EAF vs BOF 500 Group Overview 400 300 200 Market 100 68 67 64 26 27 36 0 -21 -24 -21 -15 -100 -40 Financials 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Difference BOF EAF Capex Raw material costs (USD / tonne) 450 Feedst
Slide 18: World and the EU
World and the EU Introduction Group Overview World's steel output (m tonnes) EU (27) steel output (m tonnes) 2000 180 1800 160 Market 1600 140 1400 Financials 120 Other EU(27) 1200 100 Poland 1000 Spain Capex 80 France 800 Italy 60 Germany 600 Outlook 40 400 200 20 Annexes 0 0 2019 2020 2021 2022 20
Slide 19: Billets and Finished Products: Cognor's Share and Position in 2023
Billets and Finished Products Introduction Cognor’s Share and Position in 2023 Group Overview Producer market share Revenue split by business segments Defence (thousands of tonnes) Agriculture 5% 6% Market Railway 6% Construction 20 20% Other 7% Financials Iron and steel 7% Mining 10% Automotive Mac
Slide 20: Prices and conversion premiums (PLN / tonne)
Prices and conversion premiums (PLN / tonne) Introduction Group HSJ Overview Ferrostal 6 000 5 500 5 500 5 000 5 000 Market 4 500 4 500 4 000 4 000 3 500 3 500 Financials 3 000 3 000 2 500 2 500 2 000 2 000 Capex 1 500 1 500 1 000 1 000 500 500 Outlook 0 0 2019 2020 2021 2022 2023 2023 2022 2021 202
Slide 21: EBIT Generation Breakdown (PLN thousands)
EBIT Generation Breakdown (PLN thousands) Introduction Group Overview Market Financials Capex Outlook Annexes 21
Slide 22: EBIT Bridge (PLN thousands)
EBIT Bridge (PLN thousands) Introduction Group Overview Market Financials Capex Outlook Annexes 22
Slide 23: 2023 P&L Waterfall (PLN thousands)
2023 P&L Waterfall (PLN thousands) Introduction Group Overview Market Financials Capex Outlook Annexes Revenue Cost of sales Other income Distribution Administrative Other Other Financial Financial Share of Bargain Profit before Income tax Profit for the expenses expenses gains/(losses) expenses inc
Slide 24: Balance Sheet (PLN thousands)
Balance Sheet (PLN thousands) Introduction 2 500,0 Cash and cash equivalents Group Overview Trade receivables 1 500,0 Inventories Assets Market Property, plant and equipment 500,0 Financials Capex - 500,0 EQUITY Liabilities Outlook -1 500,0 Trade payables Current loans and borrowings Non-current loa
Slide 25: Balance Sheet Working Capital (PLN thousands)
Balance Sheet Introduction Working Capital (PLN thousands) Group Overview 562 020 476 975 333 333 Market 297 001 274 101 188 525 142 025 Financials 425 801 549 078 Capex 523 859 398 227 444 009 61 156 4 280 414 245 Outlook -424 370 -411 846 -431 067 -461 129 -490 695 Annexes 2019 2020 2021 2022 2023
Slide 26: Cash Flows (PLN thousands)
Cash Flows Operational CAPEX Financial Cash balance Increase Decrease Introduction (PLN thousands) Group Overview Market Financials Capex Outlook Annexes 2019 2020 2021 2022 2023 26
Slide 27: Net Debt (PLN thousands) & Leverage
Net Debt (PLN thousands) & Leverage Introduction 450 000 2,5 Group Overview 398 371 400 000 2,0 350 000 Market 300 000 1,5 250 000 230 193 225 883 Financials 200 000 166 101 1,0 150 000 Capex 100 000 0,5 65 408 50 000 Outlook 0 0,0 2019 2020 2021 2022 2023 Annexes net debt net debt / LTM EBITDA 27
Slide 28: 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 Q4 2024 / SIEMIANOWICE ŚL. merchant bars 198 +155 52 New capacities Financials Q4 2022 +200 Q4 2023 KRAKÓW Existing Capacities 375
Slide 29: 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 (Q4 2023; Q2 2025 for spooling line) (Q4 2024) Market Cost – approximatel
Slide 30: Outlook – 2024
Outlook – 2024 Introduction Group Overview Macro trends Release Concrete (slide 4) unchanged of post Covid UE funds for reinforcement Market Poland to invigorate infrastructural spending in business (Ferrostal) rebound expected Financials Capex Automotive steel Prices of scrap metal, Kraków mill seg
Slide 31: Outlook – 2024
Outlook – 2024 Introduction Group Overview Energy CO2 subsidy Energy subsidy purchased mostly on higher with larger crude lower as it is expected to Market spot terms with possible steel production output be granted for H1 2024 forward purchases in only case of lower prices Financials Capex No energ
Slide 32: Dividends and Share Quoting
32 Group Capex Market Outlook Overview Annexes Financials Introduction 0 0,5 1 1,5 2 2018 2020 Share price (PLN) Equity (000 PLN) Net profit (000 PLN) P/E P / BV Number of shares Dividend policy 2023 0,1 2021 0,28 0,15 0,15 1,23 24.04.2024 Dividends 2022 1,16 6,11 8,41 25% of consolidated net profit
Slide 33: P&L (PLN thousands)
P&L (PLN thousands) Revenues down by 945m & 26% - shipments down by 21.9% Gross profit down by 614m & 69% Introduction - costs & other result: 72m 2019 2020 2021 2022 2023 - FIFO support: 1m - worsening of spreads: 265m Sales revenue 1 901 604 1 733 221 2 811 151 3 666 690 2 721 504 - lower shipment
Slide 34: Assets (PLN thousands)
Assets (PLN thousands) Introduction Group 2019 2020 2021 2022 2023 Overview A. TOTAL NON-CURRENT ASSETS 487 249 514 518 564 496 740 355 1 181 785 Fixed assets up by 441m & 60% I. Intangible assets 22 296 18 100 15 139 12 851 18 196 - CAPEX 525m incl. 39m JAP - D&A 49m II. Property, plant and equipme
Slide 35: Equity and Liabilities (PLN thousands)
Equity and Liabilites (PLN thousands) Introduction 2019 2020 2021 2022 2023 '000 PLN Group A. EQUITY 277 191 307 014 643 869 1 228 431 1 241 210 Equity up by PLN 13m & 1% Overview - net result 236m I. Issued share capital 185 911 185 911 257 131 257 131 257 131 - dividend 209m II. Reserves and retai
Slide 36: Cash Flows & Metrics
Cash Flows & Metrics Introduction 2019 2020 2021 2022 2023 Group working capital inflow: 57m Overview '000 PLN income tax: 17m A. OPERATING ACTIVITIES 144 420 206 089 120 012 489 565 294 545 disposals: 12m CAPEX: 388m B. INVESTING ACTIVITIES -50 932 -57 110 -92 121 -235 834 -359 064 Market JAP inflo
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