Q1 2007 Business and Financial Performance 4 June 2007 Content 1. - - PowerPoint PPT Presentation

▶
q1 2007 business and financial performance
SMART_READER_LITE
LIVE PREVIEW

Q1 2007 Business and Financial Performance 4 June 2007 Content 1. - - PowerPoint PPT Presentation

Jan 07, 2023 277 likes •558 views

ZOMREX S.A. Q1 2007 Business and Financial Performance 4 June 2007 Content 1. Introduction 2. Business overview 3. Financials 4. Q2 2007 outlook 5. Q&A Appendix 1. March 31, 2007 Indebtedness 2. Q2 2006 2 ZOMREX S.A.

slide-1
SLIDE 1

ZŁOMREX S.A.

Q1 2007 Business and Financial Performance

4 June 2007

slide-2
SLIDE 2

2

Content

  • 1. Introduction
  • 2. Business overview
  • 3. Financials
  • 4. Q2 2007 outlook
  • 5. Q&A

Appendix

  • 1. March 31, 2007 Indebtedness
  • 2. Q2 2006
slide-3
SLIDE 3

ZŁOMREX S.A.

Introduction

Section 1

slide-4
SLIDE 4

4

[To come]

Krzysztof Walarowski Member of the Board Age – 51 4 yrs with Złomrex Krzysztof Zola CFO Age – 35 6 yrs with Złomrex Dominik Barszcz Chief Accountant Age - 31 7 yrs with Złomrex

Introduction

Speakers

slide-5
SLIDE 5

5

Introduction

Q1 2007 Highlights

  • Closing of EUR 170 million bonds offering: January 26, 2007
  • Closing of the acquisition of voestalpine Stahlhandel GmbH: March 28, 2007
  • Secondary public offering of Centrostal Gdansk; completed in April 2007
  • Exclusivity in the bid for Stalexport Trade: March 02, 2007 and following

negotiations (May 31, 2007 signing of the investment agreement)

  • Bid for śeljezara Split; exclusivity granted in April 2007; negotiations are being

started

slide-6
SLIDE 6

6

  • Very strong market environment
  • GDP growth over 7% in Poland and 2-3% in Europe
  • Steel consumption growth over 30% in Poland
  • Increase in market prices
  • Record breaking first quarter Company’ s sales

Introduction

Q1 2007 Highlights

slide-7
SLIDE 7

7

  • 44 974
  • Negative goodwill

31 829 157 082 5 460 26 362 Profit for the period (3 544) (3 038) 1 273 (26) Deferred tax expense (4 988) (24 500) (3 839) (8 069) Current tax expense 40 361 184 620 8 026 34 457 Profit before tax (16 618) (41 352) (4 084) (20 393) Net financing costs 81 190 218 557 19 704 65 381 EBITDA (24 211) (37 559) (7 594) (10 531) Depreciation/amortization 56 979 180 998 12 110 54 850 EBIT 115 555 309 656 33 110 88 462 Gross profit (1 007 760) (1 864 595) (323 864) (500 249) Cost of sales 1 123 315 2 174 251 356 974 588 711 Revenues LTM 1Q 2006 LTM 1Q 2007 1Q 2006 1Q 2007

Introduction

Q1 2007 Highlights

slide-8
SLIDE 8

ZŁOMREX S.A.

Business overview

Section 2

slide-9
SLIDE 9

9

Business overview

Business environment

17% 2,7 2,3 Poland 8% 53,1 49,1 Europe (EU 25) 11% 318,9 288,4 Global Production of Steel % YoY Q1 2007 Q1 2006 (million tons) 20% 181 150 Tubes 13% 892 789 flat products 70% 866 509 long products 34% 1 939 1 449 Poland Consumption of finished steel products % YoY Jan-Feb 2007 Jan-Feb 2006 (million tons) 31% 1 964 1 497 Rebars 15% 1 574 1 372 Billets 8% 748 694 Feedstock scrap Unit prices % YoY Q1 2007 Q1 2006 (million tons)

slide-10
SLIDE 10

10

Business overview

Q1 2007 performance drivers

(1) Business consolidated since March 07, 2006 (2) Includes 6 thousand tonnes of bulk product sales conducted by ZLOMREX S.A. in 1Q 2006

5(1) 26 63 89 Finished products 2 34 36 Billets 37 169 206 Scrap purchases Cen Opo Cen Gd Cen Gor HSW-HSJ 2006 Acquisitions contribution ZLOMREX HISTORICAL CONSOLIDATED Q1 2006 (‘000 tonnes) 12(2) 17 21 48 59 158 Finished products 3 49 52 Billets 71 159 230 Scrap purchases Cen Opo Cen Gd Cen Gor HSW-HSJ 2006 Acquisitions contribution ZLOMREX HISTORICAL CONSOLIDATED Q1 2007 (‘000 tonnes)

slide-11
SLIDE 11

11

Business overview

Q1 2007 performance drivers

386 770 941 20 439 3 826 26 362 Net profit 435 1 760 1 485 27 950 33 751 65 381 EBITDA 27 651 42 577 54 524 140 305 323 654 588 711 Sales Cen Opo Cen Gd Cen Gor HSW-HSJ 2006 Acquisitions contribution ZLOMREX HISTORICAL CONSOLIDATED Q1 2007 (‘000 PLN) 5 460 Net profit 19 704 EBITDA 356 974 Sales CONSOLIDATED Q1 2006 (‘000 PLN)

slide-12
SLIDE 12

12

Business overview

Production and sales

(1)

excludes 13 793 tonnes of HSW-HSJ January 2006 production - not consolidated

  • 4%

290 278 TOTAL TURNOVER (‘000 tons) 11% 206 230 volume (‘000 tons) Intercompany sales and processing

  • 38%

58 033 36 024 value ('000 PLN)

  • 43%

84 48 volume (‘000 tons) sales to external customers SCRAP % YoY 1 Q 2006 1 Q 2007 66% 49 102 81 697 value ('000 PLN) 45% 36 52 volume (‘000 tons) sales to external customers 49% 102

(1)

157 volume (‘000 tons) Production SEMI FINISHED PRODUCTS % YoY 1 Q 2006 1 Q 2007

slide-13
SLIDE 13

13

Business overview

Production and sales

112% 180 574 383 123 TOTAL ('000 PLN) 68% 94 158 TOTAL (‘000 tons) 11 370 108 886 value ('000 PLN) 5 44 volume (‘000 tons) retail 54% 169 204 274 237 value ('000 PLN) 28% 89 114 volume (‘000 tons) bulk product sales 32% 73

(1)

96 volume (‘000 tons) production FINISHED PRODUCTS % YoY 1 Q 2006 1 Q 2007 27% 69 265 87 867 value ('000 PLN) sales to external customers OTHER % YoY 1 Q 2006 1 Q 2007

(1)

excludes 12 685 tonnes of HSW-HSJ January 2006 production - not consolidated

slide-14
SLIDE 14

ZŁOMREX S.A.

Financials

Section 3

slide-15
SLIDE 15

15

Financials

VASTH inclusive figures - Q1 2007 P&L account (pro forma)

(11 275) (13 844) Depreciation 3 129 27 985 Net result 7 674 36 632 Profit before tax (21 019) (30 042) Net financing costs 27 109 65 768 Operating profit [EBIT] 73 070 135 451 Total gross profit 8 108 9 185

  • ther

53 805 109 793 finished products 6 576 13 993 billets 4 581 2 480 steel scrap Gross profit 664 919 964 052 Total net sales 69 265 87 867

  • ther

488 519 758 464 finished products 49 102 81 697 billets 58 033 36 024 steel scrap External Sales Q1 2006 Q1 2007 ‘000 PLN

slide-16
SLIDE 16

16

Financials

VASTH inclusive figures - Q1 2007 balance sheet (actual)

2 060 988 Total Assets 488 011 Equity 677 568 Total current liabilities 956 472 Total Interest bearing debt 70 606

  • incl. RCF

185 018 short term 771 454 long term Interest bearing debt 469 478 Trade and other payables 1 254 088 Total current assets 87 223 Cash 595 560 Trade and other receivables 570 158 Inventories Q1 2007 ‘000 PLN

slide-17
SLIDE 17

17

Financials

VASTH inclusive figures – LTM Q1 2007 p&l (pro forma)

(13 844) Depreciation 152 579 Net result (61 406) Net financing costs 239 269 Operating profit [EBIT] 500 436 Total gross profit 3 576 801 Total net sales Q1 2007 ‘000 PLN 56 Payables turnover 61 Receivables turnover 68 inventories turnover 1,9 Liquidity ratio 3,1 Net debt to EBITDA 4,5 Interest coverage 277 238 EBITDA

slide-18
SLIDE 18

18

Financials

ZŁOMREX historical – balance sheet

1 637 449 1 132 862 Total equity and liabilities 1 203 367 723 784 Total liabilities 425 865 607 279 Total current liabilities 22 184 271 832 249 648 Trade and other payables 303 1 063 Other financial liabilities 66 249 297 985 Interest-bearing loans and borrowings 79 906 55 925 Bank overdraft 777 502 116 505 Total non-current liabilities 724 567 65 302 Interest-bearing loans and borrowings Liabilities 434 082 409 078 Total equity Equity 1 637 449 1 132 862 Total assets 737 247 607 008 Total current assets 98 090 386 774 288 684 Trade and other receivables 21 685 306 204 284 519 Inventories 1 287 900 202 525 854 Total non-current assets 373 072 VASTH Assets Change Q1 2007 2006 '000 PLN

slide-19
SLIDE 19

19

Financials

VASTH – balance sheet

174 018 157 237 Total equity and liabilities 155 629 116 287 Total liabilities 67 128 101 320 Total current liabilities 19 847 53 158 33 311 Trade and other payables 761 Other financial payables 6 681 61 479 Interest-bearing loans and borrowings 2 523 Bank overdraft 88 501 14 968 Total non-current liabilities 54 835 5 829 Interest-bearing loans and borrowings Liabilities 18 389 40 950 Total equity Equity 174 018 157 244 Total assets 130 696 116 091 Total current assets 17 975 56 037 38 062 Trade and other receivables 14 414 63 262 48 848 Inventories 2 169 43 322 41 153 Total non-current assets Assets change Q1 2007 2006 ‘000 EUR

slide-20
SLIDE 20

20

Financials

VASTH inclusive figures – Q1 2007 (pro forma)

(30 042) Net interest expense 23 523 11 705 11 818 CAPEX (146 124) (48 533) (97 591) Working Capital TOTAL PROFORMA VASTH ZLOMREX 000 PLN

slide-21
SLIDE 21

ZŁOMREX S.A.

Q2 2007 Outlook

Section 4

slide-22
SLIDE 22

22

Q2 2007 outlook

  • Slowdown in Polish GDP dynamics
  • Decrease in steel consumption
  • Slightly weaker sales in Poland
  • Decrease in some finished products prices
  • Stabilization of pro forma Q2 numbers
slide-23
SLIDE 23

ZŁOMREX S.A.

Q&A

Section 4

slide-24
SLIDE 24

ZŁOMREX S.A.

APPENDIX

slide-25
SLIDE 25

25

Appendix

Q 1 Indebtedness

956 472 Total Interest bearing debt 10 366

  • ther

1 617 Gdansk 35 615 VASTH 12 081 leasing 47 686 factoring 7 048 NFOS environmental loans 13 691 BRE RCF 56 914 FORTIS RCF 185 018 short term, incl: 6 308

  • ther

22 854 VASTH put/call option 15 546 Centrostal Gdansk 18 427 VASTH 23 217 deferred payment for HSW-HSJ 24 191 leasing 19 241 NFOS environmental loans 641 670 The notes 771 454 long term, incl: Interest bearing debt Q1 2007

slide-26
SLIDE 26

26

Appendix

Q 2 2006

30 002 26 362 Profit for the period

  • 37 961

34 457 Profit before tax (6 925) (20 393) Net financing costs 54 031 65 381 EBITDA (9 145) (10 531) Depreciation/amortization 44 886 54 850 EBIT 72 973 88 462 Gross profit (426 214) (500 249) Cost of sales 499 187 588 711 Revenues 2Q 2006(1)(2) 1Q 2007(2) ’000 PLN (1) Centrostal Gdansk and Centrostal Opole not consolidated (2) VASTH not consolidated