Cognor Holding Sa · GPW:COG
Cognor Holding Sa — Złomrex — Q3 2010 Earnings Presentation
21 slides from Cognor Holding Sa's earnings presentation, Dec 20, 2010
Slide 1: Q3 2010 Business and Financial Performance
ZŁOMREX S.A. Q3 2010 Business and Financial Performance December 20, 2010
Slide 2: Content
Content 1. Introduction 2. Business overview 3. Financials 4. Q4 2010 outlook 5. Q&A 2
Slide 3: Introduction
ZŁOMREX S.A. Introduction Section 1
Slide 4: Speakers
Introduction Speakers Krzysztof Zola CFO Member of the Board Age – 38 8 yrs with Złomrex 4
Slide 5: Q3 2010 Highlights
Introduction Q3 2010 Highlights Slight decrease of demand and prices Revenues’ increase by 23% compared to Q3 2009 Profit for the period for the first time since Q2 2009 GDP growth over 4% in Poland Steel production decrease by 5% in Poland: Q3 2010 v. Q3 2009 Negotiations over certain asset disposa
Slide 6: Business overview
ZŁOMREX S.A. Business overview Section 2
Slide 7: Business environment
Business overview Business environment CRUDE STEEL Q3 % Q3 Q3 PRODUCTION(1) 2010 YoY 2009 2008 million tonnes Poland 2 -5% 2,1 2,7 EU (27) 40 10% 36,3 55,1 Global 340,2 7% 318,1 340,4 Q3 % Q3 Q3 UNIT PRICES(2) 2010 YoY 2009 2008 PLN / tonne Scrap metal 861 24% 696 1 067 Billets 1 651 34% 1 235 2 301
Slide 8: Q3 2010 performance drivers
Business overview Q2 2010 performance drivers SALES Q3 2010 % YoY Q3 2009 Tonns SCRAP 24 535 -20% 30 565 BILLETS 58 656 74% 33 774 FINISHED PRODUCTS 152 006 -13% 175 471 SALES Q3 2010 % YoY Q3 2009 000 PLN SCRAP 21 125 -1% 21 258 BILLETS 96 833 132% 41 718 FINISHED PRODUCTS 433 751 15% 377 778 8
Slide 9: Segments: Scrap metal
Business overview Segments SCRAP METAL Q3 2010 Q3 2009 PURCHASES FROM EXTERNAL SUPPLIERS Tonns ZLOM 0 0 FERR 29 917 9 909 ZLMET 68 372 91 968 HSJ 27 573 23 813 ZJEL 0 0 INTERNAL USE Tonns FERR 89 806 74 756 HSJ 44 159 36 404 ZJEL 0 0 SALES TO EXTERNAL CUSTOMERS Tonns ZLOM 0 0 ZLMET 24 314 29 938 OTH
Slide 10: Segments: Billets
Business overview Segments BILLETS Q3 2010 Q3 2009 PURCHASES Tonnes EXTERNAL SOURCES 0 0 PRODUCTION Tonnes FERR 75 425 64 468 HSJ 38 178 31 579 ZJEL 0 0 INTERNAL USE Tonnes FERR 17 540 30 973 HSJ 37 407 31 300 ZJEL 0 0 SALES TO EXTERNAL CUSTOMERS Tonnes FERR 57 885 33 495 HSJ 771 279 SALES '000 PLN
Slide 11: Segments: Finished products
Business overview Segments FINISHED PRODUCTS Q3 2010 Q3 2009 PRODUCTION Tonnes FERR+ZWWB 11 415 29 304 HSJ 33 366 29 418 ZJEL 0 0 SALES OF PRODUCTION TO DISTIBUTION Tonnes ZLOM 0 0 HSJ 580 2 982 FERR+ZWWB 2 003 8 203 ZJEL 0 0 SALES TO EXTERNAL CUSTOMERS Tonnes ZLOM 0 0 FERR 12 645 28 322 HSJ 31 996
Slide 12: Segments: Sales by entity
Business overview Segments COG - retail 20 312 27 827 - bulk product 5 136 7 652 STX - retail 223 1 865 - bulk product 0 68 COGAT - retail 60 649 64 290 - bulk product 18 708 17 751 OTHER - retail 2 337 2 760 SALES '000 PLN CONSOLIDATED 433 751 377 778 TOTAL PRODUCTION in TONNES 44 781 58 722 TOTAL
Slide 13: Financials
ZŁOMREX S.A. Financials Section 3
Slide 14: P&L
Financials P&L INCOME STATEMENT Q3 2010 Q2 2010 Q1 2010 Q3 2009 '000 PLN Revenue 526 482 531 338 367 697 427 884 Cost of sales -477 175 -461 117 -348 877 -401 780 Gross profit 49 307 70 221 18 820 26 104 Other income 4 689 7 395 3 852 3 679 Distribution expenses -30 957 -39 174 -23 037 -18 083 Admin
Slide 15: Assets
Financials Assets ASSETS ‘000 PLN Q3 2010 Q2 2010 Q1 2010 Q3 2009 A. TOTAL NON-CURRENT ASSETS 709 697 725 708 792 030 830 700 I. Intangible assets 38 355 39 930 40 558 42 175 II. Property, plant and equipment 566 597 582 605 645 119 667 965 III. Other receivables 2 760 2 339 11 274 3 295 IV. Investm
Slide 16: Equity and Liabilities
Financials Equity and Liabilities EQUITY AND LIABILITIES ‘000PLN Q3 2010 Q2 2010 Q1 2010 Q3 2009 A. EQUITY 238 843 247 280 220 141 250 998 I. Issued share capital 47 691 47 691 47 691 47 691 II. Reserves and retained earnings 82 542 86 944 84 874 111 355 III. Minority interest 108 610 112 645 87 576
Slide 17: Cash Flow
Financials Cash Flow CASH FLOW Q3 2010 Q2 2010 Q1 2010 Q3 2009 '000 PLN A. FROM OPERATING ACTIVITIES -3 762 19 104 10 691 52 500 B. FROM INVESTING ACTIVITIES 27 765 -10 775 15 772 19 908 C. FROM FINANCING ACTIVITIES -18 145 2 644 -29 850 -26 573 NET INCREASE IN CASH 5 858 10 973 -3 387 45 835 17
Slide 18: Metrics
Financials Metrics MAIN METRICS Q3 2010 Q2 2010 Q1 2010 Q3 2009 Liquidity ratio 0,94 0,93 0,86 0,88 Quick ratio 0,53 0,52 0,46 0,43 Inventories turnover (days) 49 51 66 64 Receivables turnover (days) 53 53 65 50 EBITDA margin 2,9% 5,6% 1,5% -13,5% Net profit margin 0,9% -3,6% -4,3% 1,4% Equity 238 8
Slide 19: Q4 2010 Outlook
ZŁOMREX S.A. Q4 2010 Outlook Section 4
Slide 20: Q4 2010 outlook
Q4 2010 outlook Polish GDP over 3% Decrease of demand and stabilization of prices Decrease in steel consumption in Poland in comparison to Q3 2010 Decrease in production level Signing of two divestment transactions related to Polish and International distribution businesses 20
Slide 21: Q&A
_——sZEOMREX S.A. == —_O8A — —— Section 5