Financial Statement Analysis for
SIDENOR S.A.
Efstratios Patsatzis
MBA Canditate
Supervisor
Dr. Nicos Sykianakis
Presentation key points
Sector – Main Competitors
 The Company
(History, Products, Shareholders, Structure)
 Financial Statements of SIDENOR S.A.
 Financial Statement Analysis
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Presentation key points
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Liquidity Ratios
Turnover Ratios
Return Ratios
Capital Structure Ratios
Investor Ratios
Conclusions
Sector – Main Competitors
Sector
 Steel production and trading sector
Main Competitors
 “HELLENIC HALYVOURGIA”
 “HALYVOURGIKI”
SIDENOR S.A. - History
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1962 - Establishment of the Company with the name
“VIOHALCO - SANITAS SA”
1971 - The corporate name is changed into “STEEL
INDUSTRY OF NORTHERN GREECE SA”
1974 - ERLIKON SA and SIDENOR SA commence cooperating
1977 - The corporate name is changed to “SIDENOR STEEL INDUSTRY OF NORTHERN GREECE SA”
1979 - The corporate name is changed to “SIDENOR Steel
Products Manufacturing Company SA”
SIDENOR S.A. - History
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1994 - ERLIKON SA lists its stock through public offering
in the Main market of Athens Stock Exchange
1997 - Absorption of SIDENOR SA by ERLIKON SA and
change of corporate name into SIDENOR SA
1999 - Commencement of production by rolling mill of
SOVEL SA (subsidiary)
2001 - The electrode production sector is split-off from
the Company and incorporated into ERLIKON Wire
Processing SA. SIDENOR takes over 75% of the
Bulgarian STOMANA INDUSTRY SA. The new steel mill of
SOVEL SA commences production.
SIDENOR S.A. - History
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2003 - The holding of SIDENOR SA in the subsidiary
STOMANA INDUSTRY SA increases to 79.50%. KEM SA
and ATTICA METAL PROCESSING SA was finalized by
SOVEL SA. Sidenor’s Quality Management System is
certified according to ISO 9001:2008. SIDENOR launches
High Ductility grade C concrete reinforcing steel into the
market.
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2004 - SIDENOR acquires majority holding in CORINTH
PIPEWORKS SA.
2006 - SIDENOR establishes new subsidiary DOJRAN
STEEL.
SIDENOR S.A. - Products
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SD Integrated Concrete Reinforcing
System
Merchant Bars
Wire Rod
Pipes - Hollow Sections
Hot-Rolled Steel Plates
Special Steels
SIDENOR S.A. - Structure
SIDENOR S.A. - Shareholders
Financial Statements
Statement of Financial Position
Financial Statements
Statement of Comprehensive Income
Financial Statements
Cash Flow Statement
Financial Statements
Cash Flow Statement
Financial Statements
Statement of Financial Position
 Fixed Assets
/ Total Assets
360.770.511 / 593.401.564 = 0,6080 or 60,80%
 Current Assets
/ Total Assets
232.631.053 / 593.401.564 = 0,3920 or 39,20%
(Note: Intangible Assets / Total Assets equals zero)
Financial Statements
Liquidity Ratios
 Current Ratio
CR = Current Assets / Current Liabilities
232.631.053 / 274.675.258 = 0,846
 Quick Ratio
QR = Current Assets - Inventories / Current
Liabilities
150.967.120 / 274.675.258 = 0,549
Financial Statements
Liquidity Ratios
 Acid
Ratio
AR = Cash / Current Liabilities
8.320.061 / 274.675.258 = 0,030
Financial Statements
Turnover Ratios
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Inventory Turnover Ratio
ITR = Cost of Sales / Avg. Inventory
232.381.323 / 111.739.687 = 2,1times / year
Days in Inventory = 365 / 2.1 = 174days
Financial Statements
Turnover Ratios
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Receivables Turnover Ratio
RTR = Sales / Avg. Receivables
276.530.121 / 49.460.084 = 5,57times / year
Days in Accounts Receivables = 365 / 5,57 =
66days
Financial Statements
Turnover Ratios
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Accounts Payable Turnover Ratio
(Purchases = Cost of Sales - Ending Inventory + Starting Inventory)
PTR = Purchases / Avg. Payable
235.730.038 / 98.467.193,5 = 2,39times / year
Days in Suppliers = 365 / 2,83 = 153days
Financial Statements
Turnover Ratios
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Inventory Conversion Cycle
240 days
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Net Cash Conversion Cycle
87 days
Financial Statements
Cash Flow Analysis
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Cash Flow from Operating Activities
CF(OA) = - 49.589.580
(CFoa < Current Liabilities)
Financial Statements
Cash Flow Analysis
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Cash Flow from Investing Activities
CF(IA) = - 5.818.290
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Cash flow from Financing Activities
CF(FA) = 33.497.870
Financial Statements
Cash Flow Analysis
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Net decrease in cash & cash equivalents
for the period
-21.910.000
Cash & cash equivalents at the end of the
period
8.320.061
Financial Statements
Return Ratios
Return on Total Assets Ratio
ROTA = Net Earnings / Avg. Total Assets
-25.443.969 / 598.607.226 = -0,043 or -4,3%
 Return on Equity Ratio
ROE = Net Earnings / Avg. Equity
-25.443.969 / 265.185.196,5 = -0,096 or -9,6%
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Financial Statements
Return Ratios
Return on Sales Ratio
Net Earnings / Sales
-25.443.969 / 276.530.121 = -0,092 or -9,2%
 Total Assets Turnover Ratio
Sales / Avg. Total Assets
276.530.121 / 598.607.226 = 0,462 or 46,2%
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Financial Statements
Capital Structure Ratios
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Financial Leverage
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Avg. Total Assets / Avg. Equity
598.607.226 / 265.185.196,5 = 2,26
(equity = 1, liabilities = 1,26)
Financial Statements
Capital Structure Ratios
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Equity / Assets
252.463.212 / 593.401.564 = 42,5%
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Liabilities / Assets
340.938.352 / 593.401.564 = 57,5%
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Debt / Equity
340.938.352 / 252.463.212 = 1,35
Financial Statements
Investor Ratios
Nominal Value per Share
Share Capital / No of Shares
39.460.002 / 96.243.908 = 0,41 euro
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Net Accounting Value per Share
Equity / No of Shares
540.166.817 / 96.243.908 = 5,61 euro
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Financial Statements
Investor Ratios
Earnings per Share
Net Earnings / No of Shares
-55.898.679 / 96.243.908 = -0,51 euro
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P / E – P / BV
Price / Earnings per Share
2,42 / -0,51 = -4,75 times
Price / Book Value
2,42 / 5,61 = 0,43 times
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Financial Statement Analysis
Conclusions
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Disability to cover short-term debt
Large amount of Inventory held
Long period in Accounts Receivables
Negative Cash Flow from OA
Financial Statement Analysis
Conclusions
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Negative ROTA, ROE, Return on Sales
Losses per Share
Financing Conflict