Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Q2 2020 Earnings Presentation
18 slides from Cognor Holding Sa's earnings presentation, Aug 17, 2020
Slide 1: Q2 2020 Business and Financial Performance
Q2 2020 Business and Financial Performance August 17, 2020
Slide 2: Agenda
1. Introduction 2. Business Overview 3. Financials 4. Q3 2020 Outlook
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 13 years
Slide 4: Introduction | Q2 2020 Highlights
Introduction | Q2 2020 Highlights Polish GDP growth strongly negative at -8,2% – down from 4.2% in Q2 2019.; 2,0% in Q1 2020; EU28 GDP negative at -11.7% (-12.1% Eurozone), compared to 1.3% (1.1% Eurozone) in Q2 2019; -3.2% in Q1 2020 (-3.6% Eurozone) Polish steel production decreased by 13.4%
Slide 5: World's Steel Output
Business Overview | World’s Steel Output Crude steel production CRUDE STEEL PRODUCTION Q2 2020 % YoY Q2 2019 m tonnes Europe 61.7 -19.7% 76.8 UE (28) 30.0 -27.5% 41.4 EU strongly down incl. Poland 2.0 -13.4% 2.3 Poland relatively better CIS 23.8 -7.5% 25.7 North America 20.7 -31.5% 30.1 USA 14.3 -35
Slide 6: 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: BOF / EAF Feedstock Cost
Business Overview | BOF / EAF Feedstock Cost BOF & EAF Feedstock Costs 2018 2019 2020 Feedstock Cost 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 USD / Tonne BOF 372 363 284 190 189 260 267 291 285 259 255 268 289 312 300 263 270 270 EAF 423 388 352 257 216 299 338 281 370 3
Slide 8: Ferrostal Prices & Spreads
Business Overview | Ferrostal Prices & Spreads Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 (pln/ tonne) FERROSTAL SCRAP METAL - average purchase price 891 934 849 932 982 scrap metal price down by 91 & 9.3% BILLETS - average price 1 747 1 767 1 630 2 056 1 980 billet sales price down by 232 & 11.7% volu
Slide 9: HSJ Prices & Spreads
Business Overview | HSJ Prices & Spreads Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 (pln/ tonne) HSJ SCRAP METAL - average purchase price 976 1 018 927 1 049 1 113 scrap metal price down by 137 & 12.3% BILLETS - average price 2 191 2 309 1 985 2 069 2 302 billet sales price down by 111 & 4.8% volume 19
Slide 10: Scrap Metal
Business Overview | Scrap Metal Segments SCRAP METAL Q2 2020 Q1 2020 Q2 2019 PURCHASES FROM EXTERNAL SUPPLIERS Tonnes FERROSTAL 99 270 100 754 127 961 ZŁOMREX 63 707 77 910 70 629 ZŁOMREX purchases down by 11.1% HSJ 45 173 52 870 50 815 INTERNAL USE Tonnes FERROSRAL 120 694 125 363 128 950 HSJ 69 89
Slide 11: Billets
Business Overview | Billets Segments BILLETS Q2 2020 Q1 2020 Q2 2019 PURCHASES Tonnes FERR 0 0 0 PRODUCTION Tonnes FERR 107 956 111 950 115 377 HSJ 61 865 69 199 68 671 INTERNAL USE Tonnes FERR 81 769 83 721 80 390 HSJ 46 272 59 274 53 695 SALES TO EXTERNAL CUSTOMERS Tonnes FERR 43 534 26 583 34 739
Slide 12: Finished Products
Business Overview | Finished Products Segments FINISHED PRODUCTS Q2 2020 Q1 2020 Q2 2019 PURCHASES Tonnes ALL ENTITES 0 0 0 PRODUCTION Tonnes ZWWB 17 934 12 771 18 888 HSJ 41 238 45 788 50 325 PROFIL 60 207 67 583 57 648 SALES TO EXTERNAL CUSTOMERS Tonnes FERROSTAL 71 143 86 188 71 259 HSJ 52 444 50
Slide 13: Statement of Profit or Loss
Financials STATEMENT OF PROFIT OR LOSS Q2 2020 Q1 2020 Q2 2019 '000 PLN Sales revenue 455 955 460 111 516 325 Revenues down by 11.7% Cost of sales -408 559 -414 572 -452 662 - shipments up by 2.8% Gross profit 47 396 45 539 63 663 Gross profit down by 25.6% - spreads compression loss of PLN 29.6m Ot
Slide 14: Financials: Assets
Financials ASSETS Q2 2020 Q1 2020 Q2 2019 '000 PLN A. TOTAL NON-CURRENT ASSETS 495 308 483 451 445 442 Fixed assets up by 11.2% I. Intangible assets 24 642 22 150 20 432 - CPEX increase of PLN 81.4m II. Property, plant and equipment 382 816 369 871 343 813 - D&A decrease of PLN 46.4m III. Other rece
Slide 15: Financials: Equity and Liabilities
Financials EQUITY AND LIABILITIES Q2 2020 Q1 2020 Q2 2019 '000 PLN A. EQUITY 299 992 278 131 320 108 Equity down by PLN 20.1m I. Issued share capital 185 911 185 911 182 483 - LTM net result increase of PLN 18.1m II. Reserves and retained earnings 94 900 73 990 118 545 - 2018 dividend decrease of PL
Slide 16: Cash Flow and Main Metrics
Financials CASH FLOW Q2 2020 Q1 2020 Q2 2019 - working capital inflow of PLN 18.0m '000 PLN (decrease of inventories and receivables, decrease of trade liabilities) A. OPERATING ACTIVITIES 40 332 40 332 80 904 B. INVESTING ACTIVITIES -20 389 -20 389 -16 377 - CAPEX outflow of PLN 17.1m C. FINANCING
Slide 17: Q3 2020 Outlook | Main Factors
Q3 2020 Outlook | Main Factors 1 2 3 Poland’s EAF crude steel production under pressure due to BOF mills; EAF Demand picture mixed; good for producers stable at high utilization Gradual rebound of GDP in Poland and construction and weak for auto products rates. Polish steel consumption growth in the
Slide 18: 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