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History – Milestones
1931: SIDMA (Steel Trading of
Macedonia) is founded in
Thessaloniki by the Amariglio
brothers.
1950-1990: The headquarters
move to Athens. SIDMA establishes its
leading position in the sector
1991: SIDMA begins its
transformation to a Steel
Service Center. The first
processing lines are installed.
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.
2005: SIDMA enters the
Athens Stock Exchange.
Subsidiaries in Bulgaria and Romania are
founded.
2007: Construction of three new Steel Service
Centers (Inofyta,
Bucharest and Sofia) is completed.
2008: Production moves from Aspropyrgos to Inofyta.
2009: Central Offices
move to Inofyta.
2010: Distribution moves from Aspropyrgos to Inofyta.
2012: Distribution
back to Aspropyrgos. Production in
Inofyta is temporarily
stopped.
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Aspropyrgos (Athens Area)
Oreokastro (Thessaloniki Area)
Inofyta (Athens Area)
PANELCO S.A. (Lamia) SIDMA Romania (Bucharest)
SIDMA Bulgaria (Sofia)
Group Premises
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Group Premises
Aspropyrgos Inofyta Thessaloniki PanelcoRomania
Bucharest / Timisoara
Bulgaria
LAND 35,000 m2 80,000 m2 53,000 m2 43,000 m2 35,000 m2 39,000 m2
WAREHOUSE/ OFFICESOwned 13.500 m² 17.670 m² 20.000 m² 10.500 m² 6.500 m² 9.000 m²Leased 1.820 m²
EQUIPMENT
P 4 Flat products processing lines
P Polishing line for stainless steel material P Painting & metal shot
blasting lineP Profiling line
P 5 Flat products processing linesP Plasma cutting
machineP Oxygen flame cutting machine
(CNC)
P 2 polyurethane infusion lines
P 1 Profiling lineP 2 Cold forming
(bending) machinesP1 cut-to-length lineP1 Auxiliary saw
P 3 Flat products processing lines
P 3 Flat products processing lines
PRODUCTION CAPACITY PER YEAR
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
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SIDMA Group Structure
SIDMA SAEstablishment : 1931
94%
PANELCO S.A. 2001
100%
SIDMA BULGARIA
2005
100%
SIDMA ROMANIA
2005
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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.
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.).
Viohalco Group35,0%
Public25,0%
Pizante -Amariglio Families40,0%
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SIDMA S.A. at a glance
Producer SIDMA S.A.
Products: Flat, Long, Wire Products & Panels.
Services: Cutting & Slitting , Shot blasting & Painting, Polishing, Plasma & Oxygen cutting.
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
CustomerConstruction:
• Building and civil engineering
Manufacturing :
• Machinery
• White Appliances
• Mechanical Engineering
Others:• Public Sector• Metal products• Shipbuilding
Merchants:
• Retail
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Manufacturers and industries, utilizing steel products as 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.
Customer Base
More than 1,400 active customers
No customer represents more than 2% of the total annual turnover
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•Merchant Bars•Profiles•Hollow Sections•Construction Tubes
•Galvanized Wire•Galvanized Fencing Mesh•Black Wire
•Hot Rolled•Cold Rolled•Pickled & Oiled•Galvanized•Corrugated &Trapezoidal•Prepainted•Stainless Steel
Product Range
Long Products
Flat Products
(Coils & Sheets)
Panels Wire Products Mainly used as cladding for
industrial buildings.
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Steel Cycle and EBITDA / cash flow relationship
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)
Theoretical relationship* Comments
*Assuming stable inventory volumes
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163152
184
170175
115
137
SOURCE: EUROMETAL FORECAST
184
145
7%
32% 19%
6% 1329%
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
EU - Apparent Consumption2004 - 2013E
2013 ESTIMATED STEEL DEMAND WILL AVERAGE
72% OF 2007
2004 2005 2006 2007 2008 2009 2010 2011 F2012 Ε2013
1331%
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Risk Management
Effective risk management is central to SIDMA’s success and growth. Sources of risk:
SourceSource
Client DefaultClient Default
ActionAction
Credit Insurance65% receivables is presently covered
Credit Insurance65% receivables is presently covered
Market CyclicalityMarket Cyclicality Keep low inventoriesLong term relationship with suppliers
More value added products
Keep low inventoriesLong term relationship with suppliers
More value added products
Market Leadership challengeMarket Leadership challengeBroad sales network
Diversified customer baseFocus on sales volume in order to maintain high purchasing power
Broad sales networkDiversified customer base
Focus on sales volume in order to maintain high purchasing power
LiquidityLiquidity Improve DSO by more that 45 days since 2008
Improve DSO by more that 45 days since 2008
Enough funds to weather the stormEnough funds to weather the stormKeep adequate cash reservesKeep adequate cash reserves