Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q1 2009 Earnings Presentation
21 slides from Cognor Holding Sa's earnings presentation, Jun 8, 2009
Slide 1: Q1 2009 Business and Financial Performance
ZŁOMREX S.A. Q1 2009 Business and Financial Performance June 8, 2009
Slide 2: Content
Content 1. Introduction 2. Business overview 3. Financials 4. Q2 2009 outlook 5. Q&A 2
Slide 3: Introduction
ZŁOMREX S.A. Introduction Section 1
Slide 4: Speakers
Introduction Speakers Krzysztof Dominik Zola Barszcz CFO Chief Member of the Accountant Board Age - 32 Age – 35 8 yrs with 7 yrs with Złomrex Złomrex 4
Slide 5: Q1 2009 Highlights
Introduction Q1 2009 Highlights Very weak demand with prices falling continuously. Zeljezara Split’s financial situation deteriorating. Production capacities utilized much under maximum levels (FERR 53%, HSJ 34%, ZJEL 14%) Very weak performance, negative EBITDA for the second consecutive quarter 5
Slide 6: Q1 2009 Highlights
Introduction Q1 2009 Highlights Very bad market environment GDP growth still over 0% in Poland Steel consumption decline by 31% in Poland. 48% decrease in steel production Decreasing steel prices into Q2 2009 Worst quarter for ZŁOREX ever. 6
Slide 7: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 8: Business environment
Business overview Business environment CRUDE STEEL PRODUCTION(1) Q1 2009 % YoY Q1 2008 Q1 2007 million tonnes Poland 1,4 -48% 2,7 2,7 EU (25) 29,5 -43% 51,8 53,1 Global 263,3 -23% 340,1 318,9 STEEL USE(2) Q1 2009 % YoY Q1 2007 Q1 2007 million tonnes Poland 1,977 -31% 2,869 3,012 long produts 0,828 -
Slide 9: Q1 2009 performance drivers
Business overview Q1 2009 performance drivers SALES Q1 2009 % YoY Q1 2008 Tonnes SCRAP 29 537 -32% 43 564 BILLETS 17 442 -70% 57 310 FINISHED PRODUCTS 184 292 -43% 323 065 SALES Q1 2009 % YoY Q1 2008 000 PLN SCRAP 17 717 -50% 35 356 BILLETS 24 888 -75% 98 906 FINISHED PRODUCTS 470 601 -44% 838 428 9
Slide 10: Segments: Scrap Metal
Business overview Segments SCRAP METAL Q1 2009 Q1 2008 PURCHASES FROM EXTERNAL SUPPLIERS Tonnes ZLOM 0 0 ZLMET 82 811 160 261 HSJ 18 944 42 956 ZJEL 7 568 20 470 OTHER 0 0 INTERNAL USE Tonnes ZLOM 0 96 064 ZLMET 58 103 0 HSJ 26 492 71 047 ZJEL 7 682 21 465 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 0 2
Slide 11: Segments: Billets
Business overview Segments BILLETS Q1 2009 Q1 2008 PURCHASES Tonnes EXTERNAL SOURCES 0 0 PRODUCTION Tonnes FERR 50 046 88 653 HSJ 22 188 60 694 ZJEL 6 572 18 323 INTERNAL USE Tonnes ZLOM 33 683 38 993 HSJ 21 118 53 051 ZJEL 6 563 18 316 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 129 41 014 FERR 16 234
Slide 12: Segments: Finished Products
Business overview Segments FINISHED PRODUCTS Q1 2009 Q1 2008 PRODUCTION Tonnes ZWWB 20 527 29 984 FERR 12 292 10 812 HSJ 25 380 51 876 ZJEL 7 076 19 706 SALES TO EXTERNAL CUSTOMERS (Tonnes) RETAIL 91 348 150 373 BULK 92 944 172 692 CONSOLIDATED '000 PLN 470 601 838 428 TOTAL PRODUCTION in TONNES 65
Slide 13: Financials
ZŁOMREX S.A. Financials Section 3
Slide 14: P&L Income Statement
Financials P&L INCOME STATEMENT Q1 2009 Q1 2008 '000 PLN Revenue 561 243 1 060 578 Cost of sales -550 658 -936 796 Gross profit 10 585 123 782 Other income 14 331 4 843 Distribution expenses -37 423 -38 986 Administrative expenses -39 822 -39 844 Other gains/losses net -8 390 1 962 Other expenses -3
Slide 15: Assets
Financials Assets ASSETS Q1 2009 Y 2008 Q1 2008 '000 PLN A. TOTAL NON-CURRENT ASSETS 997 963 976 319 1 206 519 I. Intangible assets 47 085 46 267 44 596 II. Property, plant and equipment 817 849 855 713 1 049 868 III. Other receivables 1 556 1 533 2 992 IV. Investment property and other investments
Slide 16: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES ‘000 PLN Q1 2009 Y 2008 Q1 2008 A. EQUITY 449 727 538 579 698 948 I. Issued share capital 47 691 47 691 47 691 II. Reserves and retained earnings 248 860 345 700 504 198 III. Minority interest 153 176 145 188 147 059 B. LIABILITIES 1 631 262 1
Slide 17: Cash Flow
Financials Cash Flow CASH FLOW Q1 2009 Q1 2008 Q1 2007 '000 PLN A. FROM OPERATING ACTIVITIES -46 628 96 830 -43 299 B. FROM INVESTING ACTIVITIES -55 804 -146 383 -128 970 C. FROM FINANCING ACTIVITIES -57 666 -95 033 198 122 17
Slide 18: Metrics
Financials Metrics MAIN METRICS Q1 2009 Q1 2008 Liquidity ratio 1,28 1,27 Quick ratio 0,57 0,66 Inventories turnover (days) 88 66 Receivables turnover (days) 60 55 EBITDA margin -8,10% 6,10% Net profit margin -21,80% 1,30% Equity 449 727 698 948 Net debt* 1 064 346 1 013 730 LTM EBITDA** 100 103 224
Slide 19: Q2 2009 Outlook
ZŁOMREX S.A. Q2 2009 Outlook Section 4
Slide 20: Q2 2009 outlook
Q2 2009 outlook Polish GDP close to 0 Slight increase in steel consumption in Poland comparison to Q1 2009 Prices still falling Poor sales, negative results (incl. EBITDA) Slight recovery in production level Sale of Zeljezara Split 20
Slide 21: Q&A
_——sZEOMREX S.A. == —_O8A — Section 4