Corporate Presentation
May 2015
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
1931: SIDMA
(Steel Trading of
Macedonia) is
founded in
Thessaloniki by the
Amariglio brothers.
1950-1990:
SIDMA
establishes
its leading
position as
a steel
trader in
the Greek
market
1950: The
headquarters
move to
Athens.
1996-1998:
One merger
and one
acquisition
in the
sector.
1991: SIDMA
begins its
transformation to a
Steel Service
Center. The first
processing lines
are installed.
2001: SIDMA
acquires the
majority of
PANELCO S.A.,
a manufacturer
of polyurethane
steel sandwich
panels.
1999:
SIDMA
enters
VIOHALCO
group.
2005: SIDMA
enters the
Athens Stock
Exchange.
Subsidiaries in
Bulgaria and
Romania are
founded.
2004:
Export
activity to
the Balkans
begins.
2012: Total
production of
the company
moves to
Salonica
2007: Construction
of three new Steel
Service Centers
(Inofyta, Bucharest
and Sofia) is
completed.
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 Flat products
processing lines
P Polishing line for
stainless steel material
P Painting & metal shot
blasting line
P Profiling line
P Flat products
processing lines
P Plasma cutting
machine
P Oxygen flame
cutting machine
(CNC)
P Polyurethane
infusion lines
P Profiling line
P Cold forming
(bending) machines
P cut-to-length line
P Auxiliary saw
P Flat products
processing lines
P Flat products
processing lines
ANNUAL PRODUCTION
CAPACITY
260.000 MT
255.000 MT
2.000.000 m2
85.000 MT
100.000 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
- 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
Public
25,0%
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 and on the Euronext Brussels since
2013.
Viohalco
Group
35,0%
VIOHALCO S.A. participates in approximately 90
companies, seven of which (ELVAL S.A., ETEM S.A.,
HALCOR S.A., HELLENIC CABLES S.A., SIDENOR S.A.,
CORINTH PIPEWORKS S.A. and SIDMA S.A.) are listed on
the Athens Stock Exchange and are leading companies in
their sectors. Annual turnover almost € 3 billion.
Pizante Amariglio
Families
40,0%
Free Float
19,5%
Funds
5,6%
Basic Shareholders
75%
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.), 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
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(HELLENIC CABLES S.A. and ICME ECAB S.A.).
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.
 212 employees.
 Key financials
– FY 2008 Sales: € 300 million
– FY 2013 Sales: € 128 million
– FY 2014 Sales: € 129 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
Metal sandwich panels mainly
used as a composite cladding in
roofing and walling of industrial,
commercial and residential
buildings, as well as industrial
refrigeration chambers.
12
Typical Product & Services
Flat Products
Profile Steel/ Hollow
Profiles/ Tubes
Oxygen and plasma
cutting
Cutting to Length
Bending
Corrugated
Products
Blasting/ Coating
Long products
Galvanized
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)
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 - 2014
SINCE 2007 ABOUT 50m MTONS HAVE
DISAPPEARED FROM EU MARKET SUPPLY
175
163
184
152
From 2007 average consumption
in Greece has dropped by more
than 60%.
184
7%
170
32%
115
2004
2005
2006
2007
SOURCE: EUROMETAL, World Steel Association
2008
2009
137
19%
2010
6% 145
2011
4,0%146
9%
132 6% 140
2012
F2013
E2014
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
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 and DPO
Enough funds to weather the storm
Keep adequate cash reserves
18
Crisis Management
2008 - 2014
CAPEX
DEBT /
LIQUIDITY
BUSINESS
PORTFOLIO
Cut Costs/
Operational
Restructuring
Limit CAPEX
Reduce
Working Capital (WC)
needs
Adapt
Product & Service
Portfolio
40% Cost reduction
compared to 2008 or
€ 6 million.
Invest only to improve
Production processes
i.e. Bar Code
DSOs reduced
from 155 in 2007 to
100 in 2014 resulting in
€ 16,5 million less WC
Remove products
with increased WC needs
and low Marginal
Contribution
COSTS
19