NLMK · RUS:NLMK
NLMK — Q1 2006 Earnings Presentation
11 slides from NLMK's earnings presentation, June 2006
Slide 1: 1Q 2006 Financial & Production Results Presentation
NLMK 1Q 2006 Financial & Production Results Presentation US GAAP Consolidated Financial Statements June 2006 Презентация результатов работы по итогам 1 квартала 2005 года 1
Slide 2: Production Highlights
Н ЛМК Production Highlights NLMK change 1Q 2006 1Q 2005 (thousands of tonnes) +/- % Pig iron 2 201 2 118 83 4% Steel 2 291 2 193 98 4% Finished steel products 2 121 2 073 48 2% Flats 1 143 1 174 -31 -3% - share (%) 54% 57% Slabs 979 898 81 9% - share (%) 46% 43% Pre-painted steel 173 107 66 62% Elec
Slide 3: Group Production Highlights
Н ЛМК Group Production Highlights NLMK Crude steel and Finished steel Mining segment 10 000 8 854 9 123 12 000 11 267 8 233 8 576 8 468 7 979 9 979 8 000 10 000 thousands of tonnes thousands of tonnes 8 000 6 000 6 000 4 000 2 193 2 073 2 291 2 121 4 000 3 093 2 889 2 000 1 809 2 000 1 205 1 081 263
Slide 4: Key Financial Highlights
Key Financial Highlights NLMK change 1Q 2006 1Q 2005 (millions of US dollars) +/- % Net sales 1 123 1 271 -148 -12% Cost of sales -679 -617 -62 10% Production cost -605 -542 -63 12% Depreciation -74 -74 1 -1% Gross profit 444 654 -210 -32% - as % of net sales 40% 51% SG&A -64 -44 -20 45% Operating p
Slide 5: Key Performance Indicators
Н ЛМК Key Performance Indicators NLMK Net sales EBITDA1, as % of net sales 5 000 4 539 4 469 4 000 56% 60% 51% 3 500 47% 4 000 50% 41% millions of US dollars 3 000 millions of US dollars 2 563 35% 40% 3 000 2 500 2 094 2 468 2 000 30% 2 000 1 500 1 271 1 123 1 019 20% 1 000 1 000 646 390 10% 500 0 0
Slide 6: Production Cost Structure
Leveraging sustainable Production Cost Structure low production NLMK cost base Steel segment Mining segment Depre ciation Othe r 8% Iron ore 14% 22% Labour La bour 10% 21% Othe r De pre cia tion 7% 31% Ene rgy Coa l a nd coke 11% 20% Ene rgy Othe r raw Scra p 24% Raw mate ria ls mate ria ls 6% 10% 1
Slide 7: Consolidated Balance Sheet
Н ЛМК Consolidated Balance Sheet NLMK Assets As at Mar. As at Dec. change (millions of US dollars) 31, 2006 31, 2005 +/- % Current assets 3 865 3 436 429 12% - share (%) 57% 55% Non-current assets 2 960 2 775 185 7% - share (%) 43% 45% Total assets 6 825 6 211 614 10% Liabilities & Stockholders' equ
Slide 8: Return on Equity, Return on Assets and Liquidity Measures
Н ЛМК Financial Highlights NLMK Return on equity & return on assets Liquidity measures1 60% 8 7,1 52% 7 50% 5,9 43% 5,6 5,5 38% 40% 6 40% 34% 4,8 32% 5 29% 30% 30% 25% 24% 4 3 20% 2 10% 1 0% 0 2003 2004 2005 1Q 2005 1Q 2006 2003 2004 2005 1Q 2005 1Q 2006 Return on equity (ROE) Return on assets (ROA)
Slide 9: Operating Cash Flow, Net Debt, Debtors and Creditors
Н ЛМК Financial Highlights NLMK Net cash inflow from operating activities Net increase in cash & cash equivalents 2 1 800 1 669 2500 +347 2 271 1 600 1 515 2000 +576 millions of US dollars 1 400 millions of US dollars 1 200 1500 +619 1 000 800 668 1000 +347 600 400 275 500 383 159 200 0 0 1 As at 20
Slide 10: Cash Flows and Free Cash Flow Bridge
Net Increase In Cash Cash flows NLMK 2 Free Cash Flow Bridge Working Capital change Other financial Proceeds f rom sale exchange rate of investments resources changes Effect of -163,4 Non- cash Net interest Dividends 275,4 Capex Tax 389,9 402,7 subsidiaries -90,6 Acquisition of -177,2 -31,9 72,1 12,
Slide 11: Capital Expenditure, Depreciation and Cash Flow Ratios
Н ЛМК Financial Highlights NLMK Capital expenditure Depreciation 300 284 700 573 244 600 250 millions of US dollars millions of US dollars 500 200 158 400 150 300 269 239 100 74 74 200 100 91 50 100 0 0 1 1 2003 2004 2005 1Q 2005 1Q 2006 2003 2004 2005 1Q 2005 1Q 2006 Operating cash flow ratio Capit