On Wednesday, 2 May 2007, SIDENOR S.A. presented to the Association of Institutional Investors (ETHE) the annual financial results and the significant developments of the financial year 2006, the Group''s structure and production activity, as well as the prospects for 2007.
SIDENOR was represented by Mr Nikos Mariou, Commercial Director of SIDENOR Group and Mrs Sofia Zairi, Investment Relations Officer.
SIDENOR holds a leading position in the long products'' market of South-eastern Europe. The completion of investments that exceeded euro 230 million during the last five years, for the modernisation, upgrade and expansion of the Group''s facilities, adds a strong competitive advantage with regards to production costs. Combined with a number of favourable factors, such as production flexibility, the well-placed geographic location of its units and its extensive distribution and sales network, easy access to raw materials, its efficient customer service, as well as the quality and innovation that characterizes the extended portfolio of its SD branded products, make SIDENOR one of the most important and efficient steel producers in the region.
During the presentation, the activities of the SIDENOR Group, which include the production, processing and sale of steel products both in Greece and abroad, were analyzed. It is worth mentioning that the operational sectors of the Group are divided into the steel sector (mini-mills), the pipes, tubes and hollow sections'' sector, the downstream production sector and the service and distribution sector.
The year 2006 is thought to be exceptionally significant, since all targets set, regarding the development and expansion of activities in Greece and abroad as well as regarding financial results, were reached.
More specifically, the consolidated turnover of SIDENOR Group in 2006 reached euro 1,228 mil., an increase of 28% over 2005 while, at volume level, total sales exceeded 2,2 million tons of steel products. Profits before taxes amounted to euro 144 mil., up by 366% over 2005, while profits before interest, taxes and depreciation (EBITDA) stood at euro 220 mil., increased by 118% compared with 2005 figures. The EBITDA margin increased to 17,9% in 2006 compared to 10,6% in 2005. Finally, net consolidated profits after taxes and minority rights reached euro 108 mil. (i.e. euro 1.13 pre share) versus euro 16 mil. in 2005, an increase of 564%.
The main reasons leading to these results are the strong position of the Group in Greece and Southeast Europe, the improved presence of plate products of subsidiary company STOMANA INDUSTRY in Bulgaria, the increased contribution arising from the drastic recovery of subsidiary CORINTH PIPEWORKS upon completion of its restructuring plan, as well as the overall reduction of the Group?s operational costs.
The 2006 financial results confirm the strategic choices of the Group''s Management, which in 2007 remains focused on the materialization of its investment goals. The main investment goals of the current financial year will be the further promotion of the Group''s presence in the rapidly developing markets of Southeastern Europe, especially after the completion of the new rolling mill in STOMANA INDUSTRY, the further increase of its market share domestically and the strengthening of CORINTH PIPEWORKS in the rapidly expanding energy markets worldwide.