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SIDMA SA - Steel Distributor in Greece & Balkans

Learn about SIDMA SA, a leading steel distributor in Greece and the Balkans. Explore the company profile, customer base, product range, and sector data.

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SIDMA SA - Steel Distributor in Greece & Balkans

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  1. Corporate Presentation May 2015

  2. Agenda • ΙCompany Profile • ΙΙCustomer Base & Product Range • ΙΙΙSector Data • IV Strategy

  3. Ι. Company Profile : • History milestones • Group Premises • Group Structure • Shareholders

  4. History – Milestones 2001: SIDMA acquires the majority of PANELCO S.A., a manufacturer of polyurethane steel sandwich panels. 2005: SIDMA enters the Athens Stock Exchange. Subsidiaries in Bulgaria and Romania are founded. 1950-1990: SIDMA establishes its leading position as a steel trader in the Greek market 2012: Total production of the company moves to Salonica 1996-1998: One merger and one acquisition in the sector. 1931: SIDMA (Steel Trading of Macedonia) is founded in Thessaloniki by the Amariglio brothers. 2007: Construction of three new Steel Service Centers (Inofyta, Bucharest and Sofia) is completed. 1950: The headquarters move to Athens. 1991: SIDMA begins its transformation to a Steel Service Center. The first processing lines are installed. 1999: SIDMA enters VIOHALCO group. 2004: Export activity to the Balkans begins.

  5. Group Premises Aspropyrgos (Athens Area) Inofyta (Athens Area) Oreokastro (Thessaloniki Area) PANELCO S.A. (Lamia) SIDMA Bulgaria (Sofia) SIDMA Romania (Bucharest)

  6. Group Premises

  7. SIDMA SA Establishment : 1931 100% SIDMA ROMANIA 2005 94% PANELCO S.A. 2001 100% SIDMA BULGARIA 2005 SIDMA Group Structure

  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 1947and on the Euronext Brusselssince 2013. 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. 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 (HELLENIC CABLES S.A. and ICME ECAB S.A.). Free Float 19,5% Public Viohalco 25,0% Group Funds 5,6% 35,0% Pizante - Amariglio Families 40,0% Basic Shareholders 75%

  9. SIDMA S.A. at a glance Producer Customer SIDMA S.A. Products: Flat, Long, Wire Products & Panels. • Construction: • Building and civil engineering Services: Cutting & Slitting,Shot blasting & Painting, Polishing, Plasma & Oxygen cutting. • Merchants: • Retail • Manufacturing : • Machinery • White Appliances • Mechanical Engineering • 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 2008Sales: € 300 million • FY 2013 Sales: € 128 million • FY 2014 Sales: € 129 million • Others: • Public Sector • Metal products • Shipbuilding

  10. ΙI. Customer Base & • Product Range

  11. Customer Base • More than 1,400 active customers • No customer represents more than 2% of the total annual turnover • Manufacturers and industries, utilizing steel productsas 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.

  12. Product Range • Hot Rolled • Cold Rolled • Pickled & Oiled • Galvanized • Corrugated &Trapezoidal • Prepainted • Stainless Steel • Merchant Bars • Profiles • Hollow Sections • Construction Tubes Long Products Flat Products (Coils & Sheets) Panels Wire Products • Galvanized Wire • Galvanized Fencing Mesh • Black Wire 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.

  13. Typical Product & Services Oxygen and plasma cutting Long products Flat Products Corrugated Products Blasting/ Coating Galvanized Profile Steel/ Hollow Profiles/ Tubes Cutting to Length Bending

  14. III. Sector Information1. Steel Cycle and EBITDA / cash flow relationship • 2. EU - Apparent Consumption

  15. 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) Steel Cycle and EBITDA / cash flow relationship Theoretical relationship* Comments *Assuming stable inventory volumes

  16. EU - Apparent Consumption 2004 - 2014 SINCE 2007 ABOUT 50m MTONS HAVE DISAPPEARED FROM EU MARKET SUPPLY From 2007 average consumption in Greece has dropped by more than 60%. 184 184 175 7% 170 163 152 137 145 146 6% 4,0% 140 32% 9% 132 6% 19% 115 2004 2005 2006 2007 2008 2009 2010 2011 2012F2013 E2014 SOURCE: EUROMETAL, World Steel Association

  17. ΙV. Strategy 1. Risk Management 2. Crisis Management

  18. Risk Management • Effective risk management is centralto 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 highpurchasing power Liquidity Improve DSO and DPO Keep adequate cash reserves Enough funds to weather the storm

  19. Crisis Management2008 - 2014 COSTS 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 100in 2014 resulting in € 16,5 million less WC Remove products with increased WC needs and low Marginal Contribution NEEDED TIME & EFFORT

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