Korea Zinc Co., Ltd. · KRX:010130
Korea Zinc — Merger or Acquisition (April 2024)
10 slides from Korea Zinc's merger presentation, April 2024
Slide 1: Korea Zinc IR Presentation: Acquisition of Kataman Metals, LLC
Korea Zinc IR Presentation Acquisition of Kataman Metals, LLC Completing Circular Economy Value Chain 2024.04
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking information and statements with respect to market conditions, financial conditions, results of operations and business, and plans of the management. Please note they may differ from actual results. Financial results herein are under audit review,
Slide 3: Contents
CONTENTS Acquisition Background Purpose & Expected Synergies Acquisition Details & Valuation
Slide 4: Acquisition Background
Acquisition Background About Kataman Metals, LLC Purpose & Expected Synergies • Founded : 1993 1. Securing stable sources of secondary materials to increase Korea Zinc’s Copper production • Headquaters : St. Louis (9 global offices across North America, South America, Europe and Asia) 2. Completing
Slide 5: Purpose & Expected Synergies (1/4)
Purpose & Expected Synergies (1/4) 1. Securing stable sources of secondary materials to increase Korea Zinc’s Copper production • Approximately 130kt of additional Cu raw materials are required for the Cu Smelter(Pyrometallurgy), scheduled to operate in July 2025, to operate. Additional 2 Cu Smelter
Slide 6: Purpose & Expected Synergies (2/4)
Purpose & Expected Synergies (2/4) 2. Completing Circular Economy Value Chain • Kataman maintains supplier network of over 300 scrap metals suppliers, consisting of recyclers and major smelters. • Securing raw materials sourcing capabilities through accurate prices and market intelligence in seconda
Slide 7: Purpose & Expected Synergies (3/4)
Purpose & Expected Synergies (3/4) 3. Internalizing specialized trader organization for circular economy • Kataman practices distinguished strategy that focuses on trading scrap metal materials. • Unlike other large traders focusing on primary raw materials or small-medium sized traders that focuses
Slide 8: Purpose & Expected Synergies (4/4)
Purpose & Expected Synergies (4/4) 4. Acceleration of PedalPoint turnaround Key Assumptions Pro Forma (FY 2024) (‘000USD) 1. Growth through Kataman’s existing business: 2% PedalPoint Kataman Consolidated 2. GPM: 2.4% Revenue 140,683 1,262,812 1,403,495 3. SG&A expense increase rate: 3.5% Gross Profi
Slide 9: Acquisition Structure and Valuation
인수구조 및 Valuation Valuation Financials (FY 2021-2023) • Incorporated as 100% subsidiary of PedalPoint Earnings (‘000USD) 2021 2022 2023 Average • Acquisition Price : $55m ($45m to be paid to Revenue 1,595,391 1,732,656 1,229,160 1,519,069 existing shareholders at closing, remaining $10m Gross Profit
Slide 10: Appendix
APPENDIX IR contact IR@koreazinc.co.kr