Q1 2010 Business and Financial Performance June 8, 2010 Content - - PowerPoint PPT Presentation

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Q1 2010 Business and Financial Performance June 8, 2010 Content - - PowerPoint PPT Presentation

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ZOMREX S.A. Q1 2010 Business and Financial Performance June 8, 2010 Content 1. Introduction 2. Business overview 3. Financials 4. Q2 2010 outlook 5. Q&A 2 ZOMREX S.A. Introduction Section 1 Introduction Speakers Krzysztof

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SLIDE 1

ZŁOMREX S.A.

Q1 2010 Business and Financial Performance

June 8, 2010

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SLIDE 2

2

Content

  • 1. Introduction
  • 2. Business overview
  • 3. Financials
  • 4. Q2 2010 outlook
  • 5. Q&A
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SLIDE 3

ZŁOMREX S.A.

Introduction

Section 1

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4

Introduction

Speakers

Krzysztof Zola CFO Member of the Board Age – 38 8 yrs with Złomrex Krzysztof Walarowski Commercial Director Member of the Board Age – 53 6 yrs with Złomrex

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5

Introduction

Q1 2010 Highlights

  • Increasing but still weak demand with prices coming up.
  • Sale of 6 million of shares in COG.
  • Production capacities utilized under maximum levels (FERR 53%, HSJ

35%)

  • Positive EBITDA for the first time since Q3 2008
  • GDP growth over 3% in Poland
  • Steel production increase by 29% in Poland.
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ZŁOMREX S.A.

Business overview

Section 2

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7

Business overview

Business environment

(1) Source: World Steel Association (2) Source: ZŁOMREX S.A.

340,1 263,3 30% 342,4 Global 51,8 26,5 37% 42,1 EU (27) 2,7 1,4 29% 1,8 Poland million tonnes Q1 2008 Q1 2009 % YoY Q1 2010 CRUDE STEEL PRODUCTION(1) 1 947 1 799

  • 8%

1 649 Bars 1 591 1 427

  • 3%

1 387 Billets 834 600 29% 776 Scrap metal PLN / Tonne Q1 2008 Q1 2009 % YoY Q1 2010 UNIT PRICES(2)

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8

Business overview

Q1 2010 performance drivers

184 292

  • 22%

143 273 FINISHED PRODUCTS 17 442 87% 32 678 BILLETS 29 537

  • 47%

15 773 SCRAP Tonnes Q1 2009 % YoY Q1 2010 SALES 470 601

  • 31%

323 391 FINISHED PRODUCTS 24 888 82% 45 332 BILLETS 17 717

  • 31%

12 248 SCRAP 000 PLN Q1 2009 % YoY Q1 2010 SALES

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Business overview

Segments

17 717 12 248 TOTAL SALES in '000 PLN 29 537 15 773 TOTAL SALES in TONNES 92 277 86 990 TOTAL INTERNAL USE in TONNES 118 846 96 559 TOTAL PURCHASES in TONNES 17 717 12 248 CONSOLIDATED SALES ‘000 PLN 401 250 OTHER 29 136 15 523 ZLMET ZLOM SALES TO EXTERNAL CUSTOMERS Tonnes 7 682 ZJEL 26 492 27 550 HSJ 58 103 59 440 FERR INTERNAL USE Tonns 7 568 ZJEL 18 944 19 205 HSJ 82 811 64 500 ZLMET 9 523 12 854 FERR ZLOM EXTERNAL PURCHASES Tonns Q1 2009 Q1 2010 SCRAP METAL

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Business overview

Segments

24 888 45 332 TOTAL SALES in '000 PLN 17 442 32 678 TOTAL SALES in TONNES 27 681 22 764 TOTAL INTERNAL USE in TONNES 78 806 72 011 TOTAL PRODUCTION in TONNES 24 888 45 332 CONSOLIDATED SALES '000 PLN 9 ZJEL 1 070 HSJ 16 234 32 678 FERR 129 ZLOM SALES TO EXTERNAL CUSTOMERS Tonns 6 563 ZJEL 21 118 22 764 HSJ 33 812 16 569 FERR INTERNAL USE Tonns 6 572 ZJEL 22 188 22 764 HSJ 50 046 49 247 FERR PRODUCTION Tonns PURCHASES Tonns Q1 2009 Q1 2010 BILLETS

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11

Business overview

Segments

8 632 ZJEL 22 980 22 261 HSJ 31 416 14 815 FERR 24 ZLOM SALES TO EXTERNAL CUSTOMERS Tonnes 809 ZJEL 7 774 4 509 FERR 990 HSJ 250 ZLOM SALES OF PRODUCTION TO DISTIBUTION Tonnes 7 076 ZJEL 25 380 21 038 HSJ 12 292 FERR 20 527 13 644 ZWWB PRODUCTION Tonnes Q1 2009 Q1 2010 FINISHED PRODUCTS

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12

Business overview

Segments

470 601 323 391 TOTAL SALES in '000 PLN 92 944 61 667 TOTAL BULK PRODUCT SALES in TONNES 91 348 81 606 TOTAL RETAIL SALES in TONNES 65 275 34 682 TOTAL PRODUCTION in TONNES 470 601 323 391 CONSOLIDATED SALES '000 PLN 2 753 899

  • retail

OTHER 18 934 18 253

  • bulk product

55 576 60 717

  • retail

COGAT 2 025

  • bulk product

12 325 5

  • retail

STX 8 228 N/C

  • bulk product

12 386 N/C

  • retail

CGOR 705 6 338

  • bulk product

8 308 19 985

  • retail

COG

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ZŁOMREX S.A.

Financials

Section 3

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14

Financials

P&L

  • 45 226

398 EBITDA 18 594 17 205 Depreciation and amortization

  • 134 702
  • 15 647

Profit for the period

  • 12 433

9 821 Profit/loss from discontinued operations

  • 57
  • 14 688

Income tax expense

  • 122 212
  • 10 780

Profit before tax

  • 1 021
  • 75

Share of profits of associates

  • 57 371

6 102 Net financing costs

  • 84 896
  • 16 039

Financial expenses 27 525 22 141 Financial income

  • 63 820
  • 16 807

EBIT

  • 3 101
  • 5530

Other expenses

  • 8 390

13 493 Other gains/losses net

  • 39 822
  • 26 483

Administrative expenses

  • 37 423
  • 25 991

Distribution expenses 14 331 4 148 Other income 10 585 23 556 Gross profit

  • 550 658
  • 399 973

Cost of sales 561 243 423 529 Revenue '000 PLN Q1 2009 Q1 2010 INCOME STATEMENT

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Financials

Assets

2 246 705 1 556 205 TOTAL ASSETS 277 462 223 065

  • C. Assets and disposal group of assets

5 703

  • V. Assets classified as held for sale

47 138 13 389

  • IV. Cash and cash equivalents

4 920 3 058

  • 2. Income tax receivable

370 987 264 312

  • 1. Trade and other receivables

375 907 267 370

  • III. Receivables

1 856 5 305

  • II. Other investments

540 676 255 046

  • I. Inventories

971 280 541 110

  • B. TOTAL CURRENT ASSETS

28 548 43 794

  • VI. Deferred tax assets

58 976 46 007

  • V. Prepaid perpetual usufruct of land

43 949 5 278

  • IV. Investment property and other investments

1 556 11 274

  • III. Other receivables

817 849 645 119

  • II. Property, plant and equipment

47 085 40 558

  • I. Intangible assets

997 963 792 030

  • A. TOTAL NON-CURRENT ASSETS

'000 PLN Q1 2009 Q1 2010 ASSETS

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Financials

Equity and Liabilities

2 205 730 1 554 031 TOTAL EQUITY AND LIABILITIES 165 716 152 775

  • C. Liabilities of disposal group

2 102 1 856

  • III. Deferred income

175 801

  • 8. Provisions for payables

2 609 1 690

  • 7. Employee benefits

5 415 300

  • 6. Income tax payable

119 700 113 954

  • 5. Bank overdraft

382 970 349 936

  • 3. Trade payables

245 646 157 468

  • 1. Interest-bearing loans and borrowings

758 617 626 005

  • II. Current liabilities

30 757 16 725

  • 5. Deferred tax liabilities

40 975 2 174

  • 3. Deferred government and other payables

746 138 501 277

  • 2. Interest-bearing loans and borrowings

54 775 37 108

  • 1. Employee benefits

831 670 555 110

  • I. Non-current liabilities

1 590 287 1 181 115

  • B. LIABILITIES

153 176 87 576

  • III. Minority interest

248 860 84 874

  • II. Reserves and retained earnings

47 691 47 691

  • I. Issued share capital

449 727 220 141

  • A. EQUITY

Q1 2009 Q1 2010 EQUITY AND LIABILITIES ‘000 PLN

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Financials

Cash Flow

  • 59 401
  • 3 387

NET INCREASE IN CASH 57 666

  • 29 850
  • C. FROM FINANCING ACTIVITIES
  • 55 978

15 772

  • B. FROM INVESTING ACTIVITIES
  • 61 089

10 691

  • A. FROM OPERATING ACTIVITIES

'000 PLN Q1 2009 Q1 2010 CASH FLOW

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18

Financials

Metrics

1 064 346 759 310 Net debt 449 727 220 141 Equity

  • 24,0%
  • 3,7%

Net profit margin

  • 8,1%

0,1% EBITDA margin 60 57 Receivables turnover (days) 88 57 Inventories turnover (days) 0,57 0,46 Quick ratio 1,28 0,86 Liquidity ratio Q1 2009 Q1 2010 MAIN METRICS

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ZŁOMREX S.A.

Q2 2010 Outlook

Section 4

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Q2 2010 outlook

  • Polish GDP over 3%
  • Continuation of prices increases
  • Improved sales, positive EBITDA
  • Recovery in capacities utilization
  • Finalization of negotiations over certain asset disposals
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ZŁOMREX S.A.

Q&A

Section 5