Q2 2007 Business and Financial Performance 3 September 2007 - - PowerPoint PPT Presentation

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Q2 2007 Business and Financial Performance 3 September 2007 - - PowerPoint PPT Presentation

Nov 07, 2023 27 likes •270 views

ZOMREX S.A. Q2 2007 Business and Financial Performance 3 September 2007 Content 1. Introduction 2. Business overview 3. Financials 4. Q2 2007 outlook 5. Q&A Appendix: June 30, 2007 Indebtednes 2 ZOMREX S.A. Introduction

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ZŁOMREX S.A.

Q2 2007 Business and Financial Performance

3 September 2007

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2

Content

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

Appendix: June 30, 2007 Indebtednes

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ZŁOMREX S.A.

Introduction

Section 1

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[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

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Introduction

Q2 2007 Highlights

  • Secondary public offering of Centrostal Gdansk; completed in April 2007
  • Establishing of ZLOMREX STEEL SERVICES and commencement of

integration process; May 2007. Contribution of VASTH and merger with Centrostal Gdansk to follow.

  • Signing of the investment agreement with STALEXPORT S.A. on purchase of

Stalexport Trade: May 31, 2007

  • Negotiations with Croatian Privatization Fund on acquisition of śeljezara Split.

Share purchase agreement signed on August 3, 2007.

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  • Good market environment weakening in May and June
  • Steel consumption growth in Poland: 31 % in April and 18% in May 2007

against the same periods 2006.

  • GDP growth at 6% in Poland and 3% in Europe.
  • Prices reaching peak in May and decreasing to the end of Q2. Rebar market

to suffer most.

  • first quarter of consolidation of voestalpine Stahlhandel GmbH.

Introduction

Q2 2007 Highlights

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Introduction

Q2 2007 Highlights

51 696 145 668 27 354 38 388 Profit for the period

  • 12 237
  • 32 486
  • 7 431
  • 12 379

Tax expense 63 933 178 154 34 785 50 767 Profit before tax

  • 22 526
  • Negative goodwill
  • 14 703
  • 43 547
  • 7 890
  • 10 094

Net financing costs 92 682 240 334 51 615 73 391 EBITDA

  • 14 045
  • 42 292
  • 8 939
  • 13 672

Depreciation/amortization 78 637 198 042 42 696 59 719 EBIT 133 253 370 757 69 788 130 878 Gross profit

  • 889 956
  • 2 285 220
  • 323 864
  • 849 562

Cost of sales 1 023 209 2 655 977 498 804 980 530 Revenues 2Q 2006 2Q 2007 LTM LTM 2Q 2006 2Q 2007 ('000 PLN)

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ZŁOMREX S.A.

Business overview

Section 2

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Business overview

Business environment

17% 2,7 2,3 12% 2,8 2,5 Poland 8% 53,1 49,1 1% 54 53,6 Europe (EU 25) 11% 318,9 288,4 7% 332,3 311,7 Global Production of Steel % YoY Q1 2007 Q1 2006 % YoY Q2 2007 Q2 2006 (million tons) 21% 233 282 16% 89 35% 123 Tubes 10% 1 281 1 409 18% 474 7% 488 flat products 58% 836 1 321 51% 477 27% 467 long products 28% 2 350 3 012 31% 1 040 31% 1 449 Poland Consumption % YoY Jan - Mar 2006 Jan - Mar 2007 % YoY April 2007 % YoY May 2007 (million tons) 16% 2 425 30% 2 806 2 161 Rebars 13% 1 571 22% 1 775 1 457 Billets 8% 751 15% 808 703 Scrap Unit prices Q2-Q1 2007 % Change Q1 2007 % YoY Q2 2007 Q2 2006 (million tons)

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Business overview

Q2 2007 performance drivers

(1) Includes 5 thousand tonnes of bulk product sales conducted by ZLOMREX S.A. in Q2 2006

15 37 70 124 Finished products 2 53 55 Billets 46 195 242 Scrap purchases Cen Opo Cen Gd Cen Gor HSW-HSJ 2006 Acquisitions contribution ZLOMREX HISTORICAL CONSOLIDATED Q2 2006 (‘000 tonnes) 129 11(1) 16 18 45 59 265 Finished products 3 43 46 Billets 71 180 252 Scrap purchases VASTH Cen Opo Cen Gd Cen Gor HSW

  • HSJ

2006 and 2007 Acquisitions contribution ZLOMREX HISTORICAL CONSOLIDATED Q2 2007 (‘000 tonnes)

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Business overview

Q2 2007 performance drivers

553 11 474 17 975 30 002 NET PROFIT 949 16 319 36 762 54 031 EBITDA 38 335 133 148 327 704 499 187 SALES Cen Opole Cen Gdansk Cen Gor HSW-HSJ 2006 ACQUISITIONS’CONTRIBUTION ZLOMREX HISTORICAL CONSOLIDATED Q2 2006 (‘m PLN) 1 152 92 1 285 693 20 631 12 679 36 532 NET PROFIT 9 987 427 1 919 1 210 28 117 32 858 74 518 EBITDA 409 942 29 020 44 399 47 968 156 302 292 899 980 530 SALES VASTH Cen Opole Cen Gdansk Cen Gor HSW-HSJ 2006 and 2007 ACQUISITIONS’CONTRIBUTION ZLOMREX HISTORICAL CONSOLIDATED Q2 2007 (‘000 PLN)

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Business overview

Production and sales

4% 242 252 TOTAL TURNOVER (‘000 tons) 23% 156 192 volume (‘000 tons) Intercompany sales and processing

  • 20%

60 417 48 455 value ('000 PLN)

  • 29%

84 60 volume (‘000 tons) sales to external customers SCRAP % YoY 2 Q 2006 2 Q 2007

  • 1%

80 138 79 892 value ('000 PLN)

  • 18%

55 45 volume (‘000 tons) sales to external customers 16% 133 154 volume (‘000 tons) Production SEMI FINISHED PRODUCTS % YoY 2 Q 2006 2 Q 2007

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Business overview

Production and sales

175% 270 743 TOTAL ('000 PLN) 112% 125 265 TOTAL (‘000 tons) 661% 54 411 value ('000 PLN) 637% 19 140 volume (‘000 tons) retail 54% 216 332 value (‘000,000 PLN) 18% 106 125 volume (‘000 tons) bulk product sales

  • 1%

109 108 volume (‘000 tons) production FINISHED PRODUCTS % YoY 2 Q 2006 2 Q 2007 23% 88 112 108 716 value ('000 PLN) sales to external customers OTHER % YoY 2 Q 2006 2 Q 2007

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ZŁOMREX S.A.

Financials

Section 3

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Financials

Q2 2007 P&L account

  • 8 939
  • 13 672

Depreciation 27 354 38 388 Net result 34 785 50 767 Profit before tax

  • 7 890
  • 10 094

Net financing costs 42 696 59 719 Operating profit [EBIT] 69 788 130 878 Total gross profit 5 986 6 244

  • ther

44 871 100 133 finished products 14 992 20 357 billets 3 939 4 144 steel scrap Gross profit 498 804 980 530 Total net sales 88 112 108 716

  • ther

270 137 743 467 finished products 80 138 79 892 billets 60 417 48 455 steel scrap External Sales Q2 2006 Q2 2007 ‘000 PLN

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Financials

Q2 2007 Balance Sheet

989 401 2 202 357 Total Assets 310 893 570 285 Equity 464 849 749 248 Total current liabilities 392 818 1 036 419 Total Interest bearing debt

  • 139 756
  • incl. RCF

245 910 259 229 short term 146 908 777 190 long term Interest bearing debt 212 068 455 403 Trade and other payables 504 529 1 387 399 Total current assets 16 082 147 922 Cash 286 495 543 026 Trade and other receivables 186 887 692 918 Inventories Q2 2006 Q2 2007 ‘000 PLN

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Financials

Q2 2007 Key Metrics

17% 26% ROCE 87 73 Payables turnover 102 75 Receivables turnover 77 111 inventories turnover 1,1 1,9 Liquidity ratio 4,1 3,7 Net debt to EBITDA 6,30 5,52 Interest coverage 51 696 145 668 LTM net result (14 703) (43 547) LTM financing costs 9,1% 9,2% LTM EBITDA margin 92 682 240 334 LTM EBITDA (889 956) (2 285 220) LTM COGS 1 023 209 2 625 977 LTM SALES Q2 2006 Q2 2007 in thousand PLN where applicable

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Financials

Q2 2007 Proforma Key Metrics

31% ROCE 52 Payables turnover 54 Receivables turnover 79 inventories turnover 1,9 Liquidity ratio 3,0 Net debt to EBITDA 5,6 Interest coverage 179 406 LTM Proforma net result (52 158) LTM Proforma financing costs 7,9% LTM Proforma EBITDA margin 292 693 LTM Proforma EBITDA (3 220 437) LTM Proforma COGS 3 703 028 LTM Proforma SALES Q2 2007 in thousand PLN where applicable

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Financials

Q2 2007 v. Q1 2007 Balance Sheet Data

89 163 691 378 780 541 Working capital (70 286) Operating cash flow 22 571 CAPEX 142 197 2 060 160 2 202 357 Total Assets 88 756 481 529 570 285 Equity 66 818 682 430 749 248 Total current liabilities 19 248 869 249 888 497 Net debt 79 947 956 472 1 036 419 Total Interest bearing debt 69 150 70 606 139 616

  • incl. RCF

74 211 185 018 259 229 short term 5 736 771 454 777 190 long term Interest bearing debt (18 937) 474 340 455 403 Trade and other payables 133 311 1 254 088 1 387 399 Total current assets 60 699 87 223 147 922 Cash (52 534) 595 560 543 026 Trade and other receivables 122 760 570 158 692 918 Inventories 8 899 806 072 814 971 Non current assets change Q1 2007 Q2 2007

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ZŁOMREX S.A.

Q2 2007 Outlook

Section 4

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Q3 2007 outlook

  • GDP dynamics stable at 6%
  • Further decrease in steel consumption
  • Weaker sales in Poland
  • Decrease in products prices
  • Possible slight decrease in Q3 2007 EBITDA (PLN 5-10 million);
  • Increase in indebtedness due to Stalexport Trade closing.

44 085 35 380 Net result 63 982 64 531 EBITDA 561 222 570 588 Sales Q3 2006 Q2 2007

in thousand PLN

ZLOMREX excl. VASTH

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ZŁOMREX S.A.

Q&A

Section 4

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ZŁOMREX S.A.

APPENDIX

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Appendix

Q 1 Indebtedness

1 031 543 956 472 Total Interest bearing debt 3 333 10 366

  • ther

7 202 1 617 Centrostal Gdansk 25 385 35 615 VASTH 11 754 12 081 leasing 60 604 47 686 factoring 6 459 7 048 NFOS environmental loans 14 036 PEKAO RCF 62 264 13 691 BRE RCF 63 317 56 914 FORTIS RCF 254 353 185 018 short term, incl: 2 148 Other 11 282 15 546 Centrostal Gdansk 38 995 24 033 VASTH 22 487 22 854 VASTH put/call option 22 959 23 217 deferred payment for VASTH 23 991 24 893 leasing 16 185 19 241 NFOS environmental loans 639 143 641 670 The notes 777 190 771 454 long term, incl: Interest bearing debt Q2 2007 Q1 2007