Slide 1: Q2 2024 Business and Financial Performance
Introduction Group Overview Market Financials Q2 2024 Business and Financial Performance Capex Outlook August 20, 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 onshoring, reshorig, and reindustrialisation of the EU Financials Long-term underinvestment CO2 emission costs in energy sector increase Capex Supply chain shortening
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 industry in the 90s; hostile EU policy and of industry experience PL, DE, CZ, SK, HU, RO, LT, LV, ES VAT evasion practices in Poland Financia
Slide 5: Cognor – Modern EU Steelmaker
Cognor – Modern EU Steelmaker Introduction Group Overview Strong presence on Growth financing Rational and Market Polish scrap market indebtedness consequent CAPEX vertical integration stabilising strong balance sheet structure aimed at volume expansion raw material supplies with long-term debt and
Slide 6: Q2 2024 Highlights
Q2 2024 Highlights Introduction Group Overview Rising GPD growth Falling billet and finished Spreads shrinking for all Market 3.2 % Poland and 0.7% EU product prices billets and products YoY compared to Q2 2023 and compared to Q2 2023 but increased stabilized or increased if as compared to Q1 2024 (
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 roduction facilities Capex Tomaszów Mazowiecki Radom Lublin Non-ferrous metals Wrocław foundry Świdnica Outlook Gliwice PORAJ Kielce Opole Z
Slide 10: 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 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 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 13: Organisational Chart
Organisational Chart Introduction group structure & shareholders Group 22,17% Overview Free float 100% Market JAP Industries s.r.o. 100% 77,83% 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 operation
Slide 14: Segments Performance
Segments Performance Introduction quantities per business segments Group Overview Scrap metal (thousand tonnes) Billets (thousand tonnes) 227 182 158153 161 136 Market 126138 128129 122 115 108 102 86 94 73 63 75 78 74 60 43 29 24 26 19 23 24 28 Financials Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2
Slide 15: Q2 2024 Circular Economy
Q2 2024 Circular Economy Introduction sustainable steelmaking Group Overview 127 823 128 867 114 675 102 032 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 BILLE
Slide 16: 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 will be fully effective from 01.01.2026.
Slide 17: Technology - EAF vs BOF
Technology - EAF vs BOF 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 • Approximately
Slide 18: BOF / EAF Feedstock Cost (USD / tonne)
BOF / EAF Feedstock Cost (USD / tonne) Introduction 500 Group 400 Overview 300 Difference 200 BOF Market 100 EAF 27 13 0 -9 -16 Financials -100 -50 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Capex Raw material costs (USD / tonne) Feedstock Cost Model BOF EAF 500 (tonne / tonne of crude steel) 400 Outlo
Slide 19: World and Poland
World and Poland Introduction steel output (million tonnes) steel output (milion tonnes) 600,0 2,50 Group Overview 500,0 2,00 1,82 Market 1,79 400,0 1,60 1,52 1,47 1,50 Financials 300,0 1,00 Capex 200,0 0,50 Outlook 100,0 0,0 0,00 Annexes Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 20
Slide 20: Billets and Finished Products
Billets and Finished Products Introduction Cognor’s share and position in 2023 Group Overview Producer market share Revenue split by business segments Agriculture Defence (thousand tonnes) 4% 4% Railway Market 5% Other Construction 5% 30% 305 Iron and steel Financials 7% Mining 8% Machine 14% Capex
Slide 21: Prices and Conversion Spreads (PLN / tonne)
Prices and Conversion Spreads (PLN / tonne) Introduction Group Ferrostal HSJ Overview 6 000 6 000 5 000 5 000 Market 4 000 4 000 Financials 3 000 3 000 Capex 2 000 2 000 1 000 1 000 Outlook 0 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Annexes scrap metal billet
Slide 22: EBIT Generation Breakdown (PLN thousand)
EBIT Generation Breakdown (PLN thousand) Introduction Group Overview Market Financials 41 474 Capex Outlook Annexes 22
Slide 23: Q2 2024 P&L Waterfall (PLN thousand)
Q2 2024 P&L Waterfall (PLN thousand) Introduction Group Overview Market Financials Capex Outlook Revenue Cost of Other Distribution Administrative Other Other Financial Financial Net financing Share of profits Profit Income sales income expenses expenses gains net expenses income expenses costs of a
Slide 24: Gross Profit Bridge (PLN thousand)
Gross Profit Bridge (PLN thousand) Introduction Group Overview Market Financials Capex Outlook Annexes 24
Slide 25: EBIT Bridge (PLN thousand)
EBIT Bridge (PLN thousand) Introduction Group Overview Market Financials Capex Outlook Annexes 25
Slide 26: Net Profit Bridge (PLN thousand)
Net Profit Bridge (PLN thousand) Introduction Group Overview Market Financials Capex Outlook Annexes 26
Slide 27: Balance Sheet (PLN million)
Balance Sheet (PLN million) Introduction Group Overview 3 000 2 500 151,0 483,4 Cash 168,2 144,3 589,1 251,9 359,4 Receivables Market 2 000 507 414,2 502,5 504,1 Inventories Assets 1 500 524,7 523,9 556,3 589,0 1 000 Financials 1 239,2 1 331,4 Property, plant and equipment 500 949,3 1 116,6 803,4 0
Slide 28: Balance Sheet (PLN thousand)
Balance Sheet (PLN thousand) Introduction Working Capital Group 689 668 Overview 514 477 Market 242 Financials 589 502 556 507 524 414 525 589 504 359 -403 -395 -461 -600 -622 Capex Outlook Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Annexes inventories receivables trade liabilities working capital 28
Slide 29: Cash Flows (PLN thousand)
Cash Flows (PLN thousand) Introduction Operational CAPEX Financial Cash balance Increase Decrease Group Overview Market Financials Capex Outlook Annexes Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 29
Slide 30: Net Debt (PLN thousand) & Leverage Metric
Net Debt (PLN thousand) & Leverage Metric Introduction 600 000 4,0 Group 3,5 Overview 500 000 3,0 400 000 Market 2,5 300 000 2,0 562 605 Financials 1,5 200 000 406 750 398 371 350 021 Capex 323 400 1,0 100 000 0,5 Outlook 0 0,0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 net debt net debt / LTM EBITDA A
Slide 31: 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 68 New capacities Financials +155 +160 Q4 2023 Cracow Existing Capacities 304 375 240
Slide 32: Capex - Costs, Financing and Effects
Capex- Costs, Financing and Effects Introduction Group Gliwice Cracow Siemianowice Śląskie Overview replacement of EAF and ancillary items entire mill modernisation plus spooling most modern LSM mill in Europe (Completed) line (Q1 2024; Q2 2025 for spooling line) (Q1 2025) Market Cost – approximatel
Slide 33: Outlook – Q3 2024
Outlook – Q3 2024 Introduction Group Overview Macro trends Prices of Spreads (slide 3) unchanged scrap, billets and finished stable QoQ Market products expected to stabilize QoQ Financials Capex Rebar Rising capacity EBITDA market in crisis. Some small utilisation stable as compared to Q2 improvemen
Slide 34: Dividends, Ratios and Share Quoting
34 Group Capex Market Outlook Overview Annexes Financials Introduction 0 0,5 1 1,5 2 2020 2021 P/E P / BV Share price (PLN) Number of shares Equity (000 PLN) LTM Net profit (000 PLN) Dividend policy 0,28 0,15 0,15 1,22 Q2 2024 Dividends 2022 as of 30.06.2024 1.26 8.55 2023 32.90 25% of consolidated
Slide 35: P&L (PLN thousand)
P&L (PLN thousand) Introduction STATEMENT OF PROFIT OR LOSS Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Revenues down by 214m & 28% '000 PLN - shipments down by 38kt & 22.6% Sales revenue 764 601 499 497 569 979 686 280 550 864 - energy sales lower by 34m Group Cost of sales -676 436 -457 697 -523 303 -
Slide 36: Assets (PLN thousand)
Assets (PLN thousand) Introduction ASSETS Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 '000 PLN A. TOTAL NON-CURRENT ASSETS 876 842 1 020 901 1 181 785 1 318 025 1 383 322 Fixed assets up by 506m & 58% Group I. Intangible assets 19 448 19 094 18 196 17 532 17 194 - CAPEX: 592m Overview - D&A: 48m II. Pro
Slide 37: Equity and Liabilities (PLN thousand)
Equity and Liabilites (PLN thousand) Introduction EQUITY AND LIABILITIES Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 '000 PLN A. EQUITY 1 211 444 1 243 398 1 241 210 1 242 996 1 247 170 Equity up by PLN 36m & 3% Group I. Issued share capital 257 131 257 131 257 131 257 131 257 131 - LTM net result: 47m
Slide 38: Cash Flows (PLN thousand) & Metrics
Cash Flows (PLN thousand) & Metrics A - working capital inflow: 295m Introduction - income tax remittance: 10m CASH FLOW Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 '000 PLN B A. OPERATING ACTIVITIES 56 285 31 692 172 483 3 699 310 940 - CAPEX outflow: 97m Group - disposals inflow: 3m B. INVESTING ACTIV
Slide 39: 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 39