[PPT] - Q1 2009 Business and Financial Performance June 8, 2009 Content PowerPoint Presentation

SLIDE 1

ZŁOMREX S.A.

Q1 2009 Business and Financial Performance

June 8, 2009

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Content

1. Introduction
2. Business overview
3. Financials
4. Q2 2009 outlook
5. Q&A

SLIDE 3

ZŁOMREX S.A.

Introduction

Section 1

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Introduction

Speakers Krzysztof Zola CFO

Member of the Board

Age – 35 7 yrs with Złomrex Dominik Barszcz Chief Accountant Age - 32 8 yrs with Złomrex

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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

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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.

Introduction

Q1 2009 Highlights

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ZŁOMREX S.A.

Business overview

Section 2

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Business overview

Business environment

(1) Source: IISI (2) Source: HIPH (3) Source: ZŁOMREX S.A.

318,9 340,1

23%

263,3 Global 53,1 51,8

43%

29,5 EU (25) 2,7 2,7

48%

1,4 Poland million tonnes Q1 2007 Q1 2008 % YoY Q1 2009 CRUDE STEEL PRODUCTION(1) 0,282 0,294

29%

0,208

ther

1,409 1,365

31%

0,941 flat products 1,321 1,210

32%

0,828 long produts 3,012 2,869

31%

1,977 Poland million tonnes Q1 2007 Q1 2007 % YoY Q1 2009 STEEL USE(2) 2 024 1 947

8%

1 799 Bars 1 501 1 591

10%

1 427 Billets 747 834

28%

600 Scrap metal PLN / Tonne Q1 2007 Q1 2008 % YoY Q1 2009 UNIT PRICES(3)

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Business overview

Q1 2009 performance drivers

323 065

43%

184 292 FINISHED PRODUCTS 57 310

70%

17 442 BILLETS 43 564

32%

29 537 SCRAP Tonnes Q1 2008 % YoY Q1 2009 SALES 838 428

44%

470 601 FINISHED PRODUCTS 98 906

75%

24 888 BILLETS 35 356

50%

17 717 SCRAP 000 PLN Q1 2008 % YoY Q1 2009 SALES

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Business overview

Segments

35 356 17 717 TOTAL SALES in '000 PLN 43 564 29 537 TOTAL SALES in TONNES 188 576 92 277 TOTAL INTERNAL USE in TONNES 223 687 109 323 TOTAL PURCHASES in TONNES 35 356 17 717 CONSOLIDATED SALES ‘000 PLN 604 401 OTHER HSJ 42 958 29 136 ZLMET 2 ZLOM SALES TO EXTERNAL CUSTOMERS Tonnes 21 465 7 682 ZJEL 71 047 26 492 HSJ 58 103 ZLMET 96 064 ZLOM INTERNAL USE Tonnes OTHER 20 470 7 568 ZJEL 42 956 18 944 HSJ 160 261 82 811 ZLMET ZLOM PURCHASES FROM EXTERNAL SUPPLIERS Tonnes Q1 2008 Q1 2009 SCRAP METAL

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Business overview

Segments

98 906 24 888 TOTAL SALES in '000 PLN 57 310 17 442 TOTAL SALES in TONNES 110 360 61 364 TOTAL INTERNAL USE in TONNES 167 670 78 806 TOTAL PRODUCTION in TONNES TOTAL PURCHASES in TONNES 98 906 24 888 CONSOLIDATED SALES '000 PLN 7 9 ZJEL 8 646 STX 7 643 1 070 HSJ 16 234 FERR 41 014 129 ZLOM SALES TO EXTERNAL CUSTOMERS Tonnes 18 316 6 563 ZJEL 53 051 21 118 HSJ 38 993 33 683 ZLOM INTERNAL USE Tonnes 18 323 6 572 ZJEL 60 694 22 188 HSJ 88 653 50 046 FERR PRODUCTION Tonnes EXTERNAL SOURCES PURCHASES Tonnes Q1 2008 Q1 2009 BILLETS

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Business overview

Segments

150 373 91 348 RETAIL SALES TO EXTERNAL CUSTOMERS (Tonnes) 172 692 92 944 BULK 838 428 470 601 TOTAL SALES in '000 PLN 172 692 92 944 TOTAL BULK PRODUCT SALES in TONNES 150 373 91 348 TOTAL RETAIL SALES in TONNES 112 378 65 275 TOTAL PRODUCTION in TONNES 838 428 470 601 CONSOLIDATED '000 PLN 19 706 7 076 ZJEL 51 876 25 380 HSJ 10 812 12 292 FERR 29 984 20 527 ZWWB PRODUCTION Tonnes Q1 2008 Q1 2009 FINISHED PRODUCTS

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ZŁOMREX S.A.

Financials

Section 3

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Financials

P&L

6,1%

8,1%

EBITDA margin

64 319

45 226

EBITDA

18 171

18 594 Depreciation and amortyzation 13 298

122 269

Profit for the period

8 332
57

Income tax expense 21 630

122 212

Profit before tax 786

1 021

Share of profits of associates

25 304
57 371

Net financing costs

26 991
84 896

Financial expenses 1 687 27 525 Financial income 4,4%

11,4%

EBIT margin 46 148

63 820

EBIT

5 609
3 101

Other expenses 1 962

8 390

Other gains/losses net

39 844
39 822

Administrative expenses

38 986
37 423

Distribution expenses 4 843 14 331 Other income 123 782 10 585 Gross profit

936 796
550 658

Cost of sales 1 060 578 561 243 Revenue '000 PLN Q1 2008 Q1 2009 INCOME STATEMENT

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Financials

Assets

2 636 128 2 267 333 2 246 705 TOTAL ASSETS 256 423 277 462

C. ASSETS AND DISPOSAL GROUP OF ASSETS

5 996 5 703

V. Assets classified as held for sale

88 072 99 505 47 138

IV. Cash and cash equivalents

2 532 74 134 4 920

2. Income tax receivable

641 572 295 226 370 987

1. Trade and other receivables

644 104 369 360 375 907

III. Receivables

3 456 1 856

II. Other investments

687 981 565 726 540 676

I. Inventories

1 429 609 1 291 014 971 280

B. TOTAL CURRENT ASSETS

22 330 46 267 28 548

VI. Deferred tax assets

63 920 31 334 58 976

V. Prepaid perpetual usufruct of land

22 813 41 472 43 949

IV. Investment property and other investments

2 992 1 533 1 556

III. Other receivables

1 049 868 855 713 817 849

II. Property, plant and equipment

44 596 46 267 47 085

I. Intangible assets

1 206 519 976 319 997 963

A. TOTAL NON-CURRENT ASSETS

'000 PLN Q1 2008 Y 2008 Q1 2009 ASSETS

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Financials

Equity and Liabilities

2 636 128 2 267 333 2 246 705 TOTAL EQUITY AND LIABILITIES 165 716

C. Liabilities of disposal group classified as held for sale

496 1 195 2 102

III. Deferred income

3 018 171 175

8. Provisions for payables

3 139 3 039 2 609

7. Employee benefis

18 498 3 591 5 415

6. Income tax payable

115 258 115 888 119 700

5. Bank overdraft

650 070 381 299 382 970

3. Trade payables

7 936 5 257 4 966

2. Other financial liabilities

326 098 242 788 240 680

1. Interest-bearing loans and borrowings

1 124 513 753 228 758 617

II. Current liabilities

66 735 35 513 30 757

5. Deferred tax liabilities

2 877 3 557 3 143

4. Deferred grants and other deferred income

44 074 37 246 37 832

3. Other payables

46 471 50 505 54 775

2. Employee benefis

652 510 699 379 746 138

1. Interest-bearing loans and borrowings

812 667 826 200 872 645

I. Non-current liabilities

1 937 180 1 728 754 1 631 262

B. LIABILITIES

147 059 145 188 153 176

III. Minority interest

504 198 345 700 248 860

II. Reserves and retained earnings

47 691 47 691 47 691

I. Issued share capital

698 948 538 579 449 727

A. EQUITY

Q1 2008 Y 2008 Q1 2009 EQUITY AND LIABILITIES ‘000 PLN

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Financials

Cash Flow

198 122

95 033
57 666
C. FROM FINANCING ACTIVITIES
128 970
146 383
55 804
B. FROM INVESTING ACTIVITIES
43 299

96 830

46 628
A. FROM OPERATING ACTIVITIES

'000 PLN Q1 2007 Q1 2008 Q1 2009 CASH FLOW

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Financials

Metrics

** LTM operating profit plus depreciation and amortization * Interest bearing loans and borrowing plus overdraft and other financial liabilities Adjusted net debt*** 4,5 10,6 Net debt / LTM EBITDA 224 660 100 103 LTM EBITDA** 1 013 730 1 064 346 Net debt* 698 948 449 727 Equity 1,30%

21,80%

Net profit margin 6,10%

8,10%

EBITDA margin 55 60 Receivables turnover (days) 66 88 Inventories turnover (days) 0,66 0,57 Quick ratio 1,27 1,28 Liquidity ratio Q1 2008 Q1 2009 MAIN METRICS

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ZŁOMREX S.A.

Q2 2009 Outlook

Section 4

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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

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ZŁOMREX S.A.

Q1 2009 Business and Financial Performance

June 8, 2009

Content

ZŁOMREX S.A.

Introduction

Section 1

Introduction

Introduction

Introduction

ZŁOMREX S.A.

Business overview

Section 2

Business overview

Business overview

Business overview

Business overview

Business overview

ZŁOMREX S.A.

Financials

Section 3

Financials

Financials

Financials

Financials

Financials

ZŁOMREX S.A.

Q2 2009 Outlook

Section 4

Q2 2009 outlook

ZŁOMREX S.A.

Q&A

Section 4