Corporate Presentation

May 2015

1
Agenda

Ι Company Profile

ΙΙ Customer Base & Product Range

ΙΙΙ Sector Data

IV Strategy

2
Ι. Company Profile :
1. History milestones
2. Group Premises
3. Group Structure
4. Shareholders

3
 History – Milestones

2001: SIDMA 2005: SIDMA

1950-1990: acquires the enters the 2012: Total
1931: SIDMA SIDMA 1996-1998: majority of Athens Stock
establishes One merger production of
(Steel Trading of PANELCO S.A., Exchange.
its leading and one Subsidiaries in the company
Macedonia) is a manufacturer
position as acquisition Bulgaria and moves to
founded in of polyurethane
Thessaloniki by the a steel in the Romania are Salonica
trader in sector. steel sandwich founded.
Amariglio brothers.
the Greek panels.
market

1950: The 2007: Construction

1991: SIDMA
headquarters 1999: 2004: of three new Steel
begins its
SIDMA Service Centers
move to transformation to a Export
enters (Inofyta, Bucharest
Athens. Steel Service VIOHALCO activity to
the Balkans and Sofia) is
Center. The first group.
begins. completed.
processing lines
are installed.

4
Group Premises

Aspropyrgos (Athens Area) Inofyta (Athens Area) Oreokastro (Thessaloniki Area)

PANELCO S.A. (Lamia) SIDMA Bulgaria (Sofia) SIDMA Romania (Bucharest)

5
Group Premises

Romania
Aspropyrgos Inofyta Thessaloniki Panelco Bucharest / Bulgaria
Timisoara

LAND 35,000 m2 80,000 m2 53,000 m2 43,000 m2 35,000 m2 39,000 m2

WAREHOUSE/OFFICES
Owned 13.500 m² 17.670 m² 20.000 m² 10.500 m² 6.500 m² 9.000 m²
Leased 1.820 m²

P Flat products P Flat products P Polyurethane

processing lines processing lines infusion lines
P Polishing line for P Plasma cutting P Profiling line
P Flat products P Flat products
EQUIPMENT stainless steel material machine P Cold forming
processing lines processing lines
P Painting & metal shot P Oxygen flame (bending) machines
blasting line cutting machine P cut-to-length line
P Profiling line (CNC) P Auxiliary saw

ANNUAL PRODUCTION
260.000 MT 255.000 MT 2.000.000 m2 85.000 MT 100.000 MT
CAPACITY

- 55% of total - 45% of total sales

- 85% of total
sales volume volume of the
sales volume in
VOLUME SERVED of the company
Bucharest
company - 100% of total
- 15% in Timisoara
production in Greece

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
Public Exchange since 1947 and on the Euronext Brussels since
Viohalco
25,0% 2013.
Group
35,0%
VIOHALCO S.A. participates in approximately 90
Pizante - companies, seven of which (ELVAL S.A., ETEM S.A.,
Amariglio HALCOR S.A., HELLENIC CABLES S.A., SIDENOR S.A.,
Families CORINTH PIPEWORKS S.A. and SIDMA S.A.) are listed on
40,0% the Athens Stock Exchange and are leading companies in
Free Float their sectors. Annual turnover almost € 3 billion.
19,5%

With production facilities in Greece, Bulgaria, Romania and

Funds
the United Kingdom, the companies specialize in the
5,6% manufacture of copper (HALCOR S.A. and SOFIA MED
S.A.), aluminium (ELVAL S.A., ETEM S.A. and
BRIDGNORTH ALUMINUM Ltd) and steel products
(SIDENOR S.A., STOMANA INDUSTRY S.A., CORINTH
PIPEWORKS S.A. and SIDMA S.A.) as well as cables
Basic Shareholders
75%
(HELLENIC CABLES S.A. and ICME ECAB S.A.). 8
SIDMA S.A. at a glance

Producer SIDMA S.A. Customer

Construction:
Products: Flat, Long, Wire • Building and civil
Products & Panels. engineering

Services: Cutting & Slitting , Shot Merchants:

blasting & Painting, Polishing, Plasma & • Retail
Oxygen cutting.
Manufacturing :
 Leading steel distributor in the Greek
and Balkan markets combined. • Machinery
 Distribution network with 5 warehouses • White Appliances
in Greece and the Balkans. • Mechanical
 212 employees. Engineering
 Key financials Others:
• Public Sector
– FY 2008 Sales: € 300 million
• Metal products
– FY 2013 Sales: € 128 million
• Shipbuilding
– FY 2014 Sales: € 129 million
9
ΙI. Customer Base &
Product Range

10
Customer Base

 Manufacturers and industries, utilizing  More than 1,400 active customers

 No customer represents more than 2% of
steel products as raw material for
the total annual turnover
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.

11
Product Range

•Hot Rolled •Merchant Bars

•Cold Rolled •Profiles
•Pickled & Oiled •Hollow Sections
•Galvanized •Construction Tubes
•Corrugated &Trapezoidal Flat Long
•Prepainted Products Products
•Stainless Steel
(Coils & Sheets)

•Galvanized Wire Metal sandwich panels mainly

•Galvanized Fencing Mesh used as a composite cladding in
Wire roofing and walling of industrial,
•Black Wire Panels
Products commercial and residential
buildings, as well as industrial
refrigeration chambers.

12
Typical Product & Services

Flat Products Oxygen and plasma Corrugated Long products

cutting Products

Profile Steel/ Hollow Cutting to Length Blasting/ Coating Galvanized

Profiles/ Tubes Bending

13
III. 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) 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)

*Assuming stable inventory volumes 15

EU - Apparent Consumption
2004 - 2014

SINCE 2007 ABOUT 50m MTONS HAVE

DISAPPEARED FROM EU MARKET SUPPLY

184 184 From 2007 average consumption

175 7% in Greece has dropped by more
163 170 than 60%.
152
137 6% 145 9%
32% 4,0%146
19% 132 6% 140
115

2004 2005 2006 2007 2008 2009 2010 2011 2012 F2013 E2014

SOURCE: EUROMETAL, World Steel Association 16

ΙV. Strategy
1. Risk Management
2. Crisis Management

17
Risk Management

 Effective risk management is central to SIDMA’s success and growth.

 Sources of risk:

Source
Source Action
Action
Credit
CreditInsurance
Insurance
Client
ClientDefault
Default 65%
65% receivables is presently
receivables is presentlycovered
covered
Keep
Keeplow
lowinventories
inventories
Market
MarketCyclicality Long
Cyclicality Long term relationshipwith
term relationship withsuppliers
suppliers
More value added products
More value added products
Broad sales network
Broad sales network
Diversified customer base
Market Leadership challenge Diversified customer base
Market Leadership challenge Focus
Focuson
onsales
salesvolume
volumeininorder
orderto
to
maintain high purchasing power
maintain high purchasing power

Liquidity Improve DSO and DPO

Liquidity Improve DSO and DPO

Enough funds to weather the storm Keep adequate cash reserves

Enough funds to weather the storm Keep adequate cash reserves

18
Crisis Management
2008 - 2014

DEBT
DEBT// BUSINESS
BUSINESS
COSTS
COSTS CAPEX
CAPEX LIQUIDITY
LIQUIDITY PORTFOLIO
PORTFOLIO

Cut
CutCosts/
Costs/ Reduce
Reduce Adapt
Adapt
Operational Limit CAPEX Working Capital (WC) Product & Service
Operational Limit CAPEX Working Capital (WC) Product & Service
Restructuring needs Portfolio
Restructuring needs Portfolio

DSOs reduced Remove products

40% Cost reduction Invest only to improve DSOs reduced Remove products
40% Cost reduction Invest only to improve from 155 in 2007 to with increased WC needs
compared to 2008 or Production processes from 155 in 2007 to with increased WC needs
compared to 2008 or Production processes 100
€€66million. i.e. 100inin2014
2014resulting
resultinginin and
andlow
lowMarginal
Marginal
million. i.e.Bar
BarCode
Code €€16,5
16,5 millionless
million lessWC
WC Contribution
Contribution

19