Transcript Corporate Presentation

Corporate Presentation
Mar 2014
1
Agenda
Ι
Company Profile
ΙΙ
Customer Base & Product Range
ΙΙΙ
Sector Data
IV
Strategy
2
Ι. Company Profile :
1.
2.
3.
4.
History milestones
Group Premises
Group Structure
Shareholders
3
History – Milestones
1991: SIDMA
1931: SIDMA
begins its
(Steel Trading of
transformation to a
Macedonia) is
Steel Service
founded in
Center. The first
Thessaloniki by the
processing lines
Amariglio brothers.
are installed.
1950-1990: The
headquarters
move to Athens.
SIDMA establishes
its leading
position in the
sector
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.
2007:
Construction of
three new
Steel Service
Centers
(Inofyta,
Bucharest and
Sofia) is
completed.
2005: SIDMA
enters the Athens
Stock Exchange.
Subsidiaries in
Bulgaria and
Romania are
founded.
2009:
Central
Offices
move to
Inofyta.
2008:
Production
moves from
Aspropyrgos to
Inofyta.
2012:
Distribution
back to
Aspropyrgos.
Production in
Inofyta is
temporarily
stopped.
2010:
Distribution
moves from
Aspropyrgos to
Inofyta.
4
Group Premises
Aspropyrgos (Athens Area)
PANELCO S.A. (Lamia)
Inofyta (Athens Area)
Oreokastro (Thessaloniki Area)
SIDMA Bulgaria (Sofia)
SIDMA Romania (Bucharest)
5
Group Premises
Aspropyrgos
Inofyta
Thessaloniki
Panelco
Romania
Bucharest /
Timisoara
Bulgaria
LAND
35,000 m2
80,000 m2
53,000 m2
43,000 m2
35,000 m2
39,000 m2
WAREHOUSE/OFFICES
Owned
Leased
13.500 m²
17.670 m²
20.000 m²
10.500 m²
6.500 m²
1.820 m²
9.000 m²
EQUIPMENT
P 4 Flat products
processing lines
P Polishing line for
stainless steel material
P Painting & metal shot
blasting line
P Profiling line
P 5 Flat products
processing lines
P Plasma cutting
machine
P Oxygen flame
cutting machine
(CNC)
PRODUCTION CAPACITY
PER YEAR
260.000 MT
255.000 MT
VOLUME SERVED
- 55% of total
sales volume
of the
company
- 45% of total sales
volume of the
company
- 100% of total
production in Greece
P 2 polyurethane
infusion lines
P 1 Profiling line
P 3 Flat products P 3 Flat products
P 2 Cold forming
processing lines
processing lines
(bending) machines
P1 cut-to-length line
P1 Auxiliary saw
2.000.000 m2
85.000 MT
100.000 MT
- 85% of total
sales volume in
Bucharest
- 15% in Timisoara
6
SIDMA Group Structure
SIDMA SA
Establishment : 1931
94%
100%
100%
PANELCO S.A.
2001
SIDMA
BULGARIA
2005
SIDMA
ROMANIA
2005
7
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.
Public
25,0%
Viohalco
Group
35,0%
Pizante Amariglio
Families
40,0%
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.). 8
SIDMA S.A. at a glance
Producer
SIDMA S.A.
Products: Flat, Long, Wire
Customer
Construction:
Products & Panels.
• Building and civil
engineering
Services: Cutting & Slitting , Shot
Merchants:
blasting & Painting, Polishing, Plasma &
Oxygen cutting.
• Retail
 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
Manufacturing :
• Machinery
• White Appliances
• Mechanical
Engineering
Others:
• Public Sector
• Metal products
• Shipbuilding
9
ΙI.
Customer Base &
Product Range
10
Customer Base
 Manufacturers and industries, utilizing
steel products as raw material for
their production.
 More than 1,400 active customers
 No customer represents more than 2% of
the total annual turnover
 Traders of steel and related materials.
 Constructors of metallic parts and
mechanical industry.
 Construction companies and joint
ventures for public and private
projects.
11
Product Range
•Hot Rolled
•Cold Rolled
•Pickled & Oiled
•Galvanized
•Corrugated &Trapezoidal
•Prepainted
•Stainless Steel
•Galvanized Wire
•Galvanized Fencing Mesh
•Black Wire
Flat
Products
(Coils & Sheets)
Wire
Products
•Merchant Bars
•Profiles
•Hollow Sections
•Construction Tubes
Long
Products
Panels
Mainly used as cladding for
industrial buildings.
12
Typical Product & Services
Corrugated
Products
Cutting to Length
Bending
Oxygen & Plasma
cutting
13
Sector Information
1. Steel Cycle and EBITDA / cash flow
relationship
2. EU - Apparent Consumption
14
Steel Cycle and EBITDA
/ cash flow relationship
Theoretical relationship*
Comments
1)
2)
3)
4)
5)
6)
*Assuming stable inventory volumes
The Company buys and sells products at
spot prices generally
Sales increase as a function of the steel
price inflation environment
Cost of material are based on an average
cost method for inventory and therefore
lag the steel price increase
This time lag creates accounting windfall
profits (windfall losses in a decreasing
steel price environment) inflating
(deflating) EBITDA
Assuming stable inventory volume cash
flow is impacted by higher NWC needs
The windfall profits (losses) are mirrored
by inventory book value increases
(decreases)
15
EU - Apparent Consumption
2004 - 2013E
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
175
163
184
152
2013 ESTIMATED STEEL
DEMAND WILL AVERAGE 72%
OF 2007
184
7%
170
32%
115
2004
2005
2006
SOURCE: EUROMETAL FORECAST
2007
2008
2009
137
19%
2010
6% 145
2011
9%
132
1% 133
F2012
Ε2013
16
ΙII. Strategy
1. Risk Management
17
Risk Management

Effective risk management is central to SIDMA’s success and growth.

Sources of risk:
Source
Action
Client Default
Credit Insurance
65% receivables is presently covered
Market Cyclicality
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
Liquidity
Improve DSO by more that 45 days
since 2008
Enough funds to weather the storm
Keep adequate cash reserves
18