1 Corporate Presentation Mar 2014. 2 Ι Company Profile ΙΙ Customer Base & Product Range ΙΙΙ...

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1 Corporate Presentation Mar 2014

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Transcript of 1 Corporate Presentation Mar 2014. 2 Ι Company Profile ΙΙ Customer Base & Product Range ΙΙΙ...

  • Slide 1
  • 1 Corporate Presentation Mar 2014
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  • 2 Company Profile Customer Base & Product Range Sector Data IV Strategy Agenda
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  • 3 . Company Profile : 1.History milestones 2.Group Premises 3.Group Structure 4.Shareholders
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  • 4 History Milestones 1931: SIDMA (Steel Trading of Macedonia) is founded in Thessaloniki by the Amariglio brothers. 1950-1990: The headquarters move to Athens. SIDMA establishes its leading position in the sector 1991: SIDMA begins its transformation to a Steel Service Center. The first processing lines are installed. 1996-1998: One merger and one acquisition in the sector. 1999: SIDMA joins forces with SIDENOR group. 2001: SIDMA acquires the majority of PANELCO S.A., a manufacturer of polyurethane steel sandwich panels. 2004: Export activity to the Balkans begins. 2005: SIDMA enters the Athens Stock Exchange. Subsidiaries in Bulgaria and Romania are founded. 2007: Construction of three new Steel Service Centers (Inofyta, Bucharest and Sofia) is completed. 2008: Production moves from Aspropyrgos to Inofyta. 2009: Central Offices move to Inofyta. 2010: Distribution moves from Aspropyrgos to Inofyta. 2012: Distribution back to Aspropyrgos. Production in Inofyta is temporarily stopped.
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  • 5 Aspropyrgos (Athens Area)Oreokastro (Thessaloniki Area)Inofyta (Athens Area) PANELCO S.A. (Lamia)SIDMA Romania (Bucharest)SIDMA Bulgaria (Sofia) Group Premises
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  • 7 SIDMA Group Structure SIDMA SA Establishment : 1931 94% PANELCO S.A. 2001 100% SIDMA BULGARIA 2005 100% SIDMA ROMANIA 2005
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  • 8 SIDMA - Shareholders VIOHALCO S.A. is the holding company of the largest Greek metals processing group. Established in 1937, VIOHALCO S.A. has been listed on the Athens Stock Exchange since 1947. VIOHALCO S.A. participates in approximately 90 companies, six of which (ELVAL S.A., ETEM S.A., HALCOR S.A., HELLENIC CABLES S.A., SIDENOR S.A., and CORINTH PIPEWORKS S.A.) are listed on the Athens Stock Exchange and are leading companies in their sectors. Annual turnover exceeds 3 billion. With production facilities in Greece, Bulgaria, Romania and the United Kingdom, the companies specialize in the manufacture of copper (HALCOR S.A. and SOFIA MED S.A.), aluminum (ELVAL S.A., ETEM S.A. and BRIDGNORTH ALUMINUM Ltd) and steel products (SIDENOR S.A., STOMANA INDUSTRY S.A. and CORINTH PIPEWORKS S.A.) as well as cables (HELLENIC CABLES S.A. and ICME ECAB S.A.). Viohalco Group 35,0% Public 25,0% Pizante- Amariglio Families 40,0%
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  • 9 SIDMA S.A. at a glance Producer SIDMA S.A. Products: Flat, Long, Wire Products & Panels. Services: Cutting & Slitting, Shot blasting & Painting, Polishing, Plasma & Oxygen cutting. Leading steel distributor in the Greek and Balkan markets combined. Distribution network with 5 warehouses in Greece and the Balkans. 220 employees. Key financials FY 2011 Sales: 143 million FY 2012 Sales: 132 million FY 2013 Sales: 128 million Customer Construction: Building and civil engineering Manufacturing : Machinery White Appliances Mechanical Engineering Others: Public Sector Metal products Shipbuilding Merchants: Retail
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  • 10 I. Customer Base & Product Range
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  • 11 Manufacturers and industries, utilizing steel products as raw material for their production. Traders of steel and related materials. Constructors of metallic parts and mechanical industry. Construction companies and joint ventures for public and private projects. Customer Base More than 1,400 active customers No customer represents more than 2% of the total annual turnover
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  • 12 Merchant Bars Profiles Hollow Sections Construction Tubes Galvanized Wire Galvanized Fencing Mesh Black Wire Hot Rolled Cold Rolled Pickled & Oiled Galvanized Corrugated &Trapezoidal Prepainted Stainless Steel Product Range Long Products Flat Products (Coils & Sheets) Panels Wire Products Mainly used as cladding for industrial buildings.
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  • 13 Typical Product & Services Corrugated Products Cutting to Length Bending Oxygen & Plasma cutting
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  • 14 Sector Information 1. Steel Cycle and EBITDA / cash flow relationship 2. EU - Apparent Consumption
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  • 15 Steel Cycle and EBITDA / cash flow relationship 1)The Company buys and sells products at spot prices generally 2)Sales increase as a function of the steel price inflation environment 3)Cost of material are based on an average cost method for inventory and therefore lag the steel price increase 4)This time lag creates accounting windfall profits (windfall losses in a decreasing steel price environment) inflating (deflating) EBITDA 5)Assuming stable inventory volume cash flow is impacted by higher NWC needs 6)The windfall profits (losses) are mirrored by inventory book value increases (decreases) Theoretical relationship*Comments *Assuming stable inventory volumes
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  • 16 163 152 184 170 175 115 137 SOURCE: EUROMETAL FORECAST 184 145 7%7% 32% 19% 6%6% 132 9%9% IN 2013, EU MARKET SUPPLY IN FINISHED STEEL PRODUCTS (EXCL.SEMIS) IS FORECASTED TO BE 133 MIO. TONS. SINCE 2007 ABOUT 50 MIO TONS WILL HAVE DISAPPEARED FROM EU MARKET SUPPLY EU - Apparent Consumption 2004 - 2013E 2013 ESTIMATED STEEL DEMAND WILL AVERAGE 72% OF 2007 2004 2005 2006 2007 2008 2009 2010 2011 F2012 2013 133 1%
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  • 17 II. Strategy 1. Risk Management
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  • 18 Risk Management Effective risk management is central to SIDMAs success and growth. Sources of risk: Source Client Default Action Credit Insurance 65% receivables is presently covered Credit Insurance 65% receivables is presently covered Market Cyclicality Keep low inventories Long term relationship with suppliers More value added products Keep low inventories Long term relationship with suppliers More value added products Market Leadership challenge Broad sales network Diversified customer base Focus on sales volume in order to maintain high purchasing power Broad sales network Diversified customer base Focus on sales volume in order to maintain high purchasing power Liquidity Improve DSO by more that 45 days since 2008 Improve DSO by more that 45 days since 2008 Enough funds to weather the storm Keep adequate cash reserves