Severstal · RUS:CHMF
Severstal — Q4 2020 Earnings Presentation
19 slides from Severstal's earnings presentation, Feb 4, 2021
Slide 1: Q4 & FY2020 Financial Results Presentation
Q4 & FY2020 Financial Results Presentation 04.02.2021 It is strictly forbidden to use, copy, disclose or distribute materials contained in this document (or appendices hereto) in any way whatsoever without due authorization. 1
Slide 2: Table of Contents
TABLE OF CONTENTS 03 Q4 & FY2020 Results Overview 08 Divisional Performance 13 Financial Position 16 Market Outlook 17 Appendices It is strictly forbidden to use, copy, disclose or distribute materials contained in this document (or appendices hereto) in any way whatsoever without due authorization.
Slide 3: Q4 & FY2020 Results Overview
Q4 & FY2020 Results Overview It is strictly forbidden to use, copy, disclose or distribute materials contained in this document (or appendices hereto) in any way whatsoever without due authorization. 3
Slide 4: Q4 & FY2020 Group Highlights
Q4 & FY2020 Group Highlights Q4 2020 vs. Q3 2020 ANALYSIS: 1. Group revenue declined by 7.0% q/q to $1,723 million (Q3 2020: $1,852 million). Group EBITDA increased by 8.2% q/q to $710 million (Q3 2020: $656 million). Severstal’s vertically integrated business model delivered an EBITDA margin of 41.
Slide 5: Revenue & EBITDA divisional quarterly dynamics
Revenue & EBITDA divisional quarterly dynamics Revenue (m$) Q2 20 - Q4 20: 1,553 1,851 1,708 Q4 2020 Group Revenue: $1,723m down 7.0% q/q (Q3 2020: $1,852m); 402 473 550 Group revenue declined due to steel sales volumes decline q/q (400) (472) (535) Q2 2020 Q3 2020 Q4 2020 Intersegment Severstal Res
Slide 6: 2020 Group Highlights
2020 Group Highlights Revenue dynamics in 2020, $m EBITDA dynamics in 2020, $m EBITDA to FCF bridge for 2020, $m EBITDA FY 2020 2,422 cash CAPEX 1,327 8,157 2,422 2,805 6,870 interest paid & other fin. cost (133) income tax paid (229) FY 2020 FY 2019 FY 2020 FY 2019 NWC change 65 • EBITDA declined b
Slide 7: FY2020 efficiency improvements & CAPEX projects
FY2020 efficiency improvements & CAPEX projects, $m EFFICIENCY GAINS, FY2020* CAPEX PROJECTS LAUNCHED IN Q4 2020 Completion of Coke Battery #11, 1st unit. Capacity 700kt of coke per annum Downstream efficiencies +$93m +$230m Upstream efficiencies +$137m Completion of BF#3 construction. Capacity 3.1m
Slide 8: Divisional Performance
Divisional Performance It is strictly forbidden to use, copy, disclose or distribute materials contained in this document (or appendices hereto) in any way whatsoever without due authorization. 8
Slide 9: Severstal Russian Steel Q4 & FY2020 performance
Severstal Russian Steel Q4 & FY2020 performance Q4 2020 vs. Q3 2020 ANALYSIS: 1. RSD top line declined by 7.7% q/q to $1,708 million (Q3 2020: $1,851 million) due to a sales volumes decline q/q. 2. EBITDA declined by 4.1% q/q to $395 million (Q3 2020: $412 million). The EBITDA margin remained almost
Slide 10: Severstal Resources Q4 & FY2020 performance
Severstal Resources Q4 & FY2020 performance Q4 2020 vs. Q3 2020 ANALYSIS: 1. Revenue from the Resources Division increased to $550 million in Q4 2020 (Q3 2020: $473 million). EBITDA increased by 31.8% q/q to $344 million (Q3 2020: $261 million). The EBITDA margin increased to 62.5%. 2. At Vorkutaugo
Slide 11: Revenue structure Q4 & FY2020
Revenue structure Q4 & FY2020 Severstal Q4 2020 revenue Severstal FY2020 revenue breakdown by region breakdown by region 1% 1% 1% 2% 1% 2% 1% 5% Russian Federation 7% Russian Federation Europe Europe CIS 28% CIS Americas Americas 26% The Middle East The Middle East Africa 63% 62% Africa Other Any un
Slide 12: Divisional cost structure
Divisional cost structure Cherepovets Steel Mill production cash cost of slab, $/t** Vorkutaugol (coking coal concentrate) Cost per tonne (US$/t) Average Selling Price (US$/t)* 355 103 335 342 346 67 323 334 325 331 63 58 321 322 302 306 293 271 270 72 52 67 65 250 252 203 221 213 Q3 2020 Q4 2020 12
Slide 13: Financial Position
Financial Position It is strictly forbidden to use, copy, disclose or distribute materials contained in this document (or appendices hereto) in any way whatsoever without due authorization. 13
Slide 14: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital Q4 2020 Highlights: Q4 2020 EBITDA to FCF reconciliation, $m 1. Free Cash Flow totaled $212 million in Q4 2020 (Q3 2020: $382 million), primarily reflecting earnings growth offset by changes in net working capital q/q. EBITDA Q4 2020 710 2. Cash CAPEX amounted to $3
Slide 15: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage Robust Liquidity and Sustainable Leverage 1. At the end of Q4 2020, cash and cash equivalents declined to $583 million (Q3 2020: $781 million). 0.82 0.84 0.77 2. Gross debt remained almost unchanged at $2,612 million (Q3 2020: $2,563 million). 0.57 3. Net de
Slide 16: Market Outlook
Market Outlook • In Q4 2020, a surge in steel prices was driven by a supply deficit in the global steel market with revived demand in ex-China. Raw material prices have been increasing, supported by an expansion of steelmakers’ margins and production increase q/q. • It is unclear how long the high p
Slide 17: Appendices
Appendices It is strictly forbidden to use, copy, disclose or distribute materials contained in this document (or appendices hereto) in any way whatsoever without due authorization. 17
Slide 18: Group's financial summary
Group’s financial summary Summary Income Statement Summary Cash Flow Statement $ million, unless otherwise stated Q4 2020 Q3 2020 FY 2020 FY 2019 $ million Q4 2020 Q3 2020 FY 2020 FY 2019 Revenue 1,723 1,852 6,870 8,157 Profit before Financing and Taxation 580 505 1,869 2,258 COGS (902) (1,068) (3,9
Slide 19: Disclaimer
Disclaimer These materials are confidential and have been prepared by PAO Severstal (Severstal) solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. These materials may contain projec