Severstal · RUS:CHMF
Severstal — FY2019 Earnings Presentation
19 slides from Severstal's earnings presentation, Jan 31, 2020
Slide 1: Q4 & FY2019 Financial Results Presentation
Q4 & FY2019 Financial Results Presentation 31.01.2020 1
Slide 2: Table of Contents
Table of Contents 03 Q4 & FY2019 Results Overview 08 Divisional Performance 13 Financial Position 16 Market Outlook 17 Appendices It isunauthorized Any strictly forbidden (or appendices annexes) to disclosure copying, is strictlyhereto) use, copy,ordisclose or of distribution distribute materials th
Slide 3: Q4 & FY2019 Results Overview
Q4 & FY2019 Results Overview Any unauthorized copying, disclosure or distribution of the materials 3 contained in this document (or its annexes) is strictly prohibited.
Slide 4: Q4 & FY2019 Group Highlights
Q4 & FY2019 Group Highlights FY2019 vs. FY2018 ANALYSIS: 01 Group revenue declined by 4.9% y/y to $8,157 million (FY2018: $8,580 million) due to adverse pricing dynamics for steel products. 02 Group EBITDA declined by 10.7% y/y to $2,805 million (FY2018: $3,142 million), mainly affected by reduced t
Slide 5: Revenue & EBITDA divisional quarterly dynamics
Revenue & EBITDA divisional quarterly dynamics Revenue (m$) Q1 19 - Q4 19: Q4 2019 Group Revenue: $1,838m down 12.9% q/q (Q3 2019: 1,966 2,151 2,102 $2,111m); 1,806 511 647 609 402 Group revenue declined mainly due (446) (621) (600) (370) to the weaker pricing environment for steel and raw materials
Slide 6: FY2019 Group Highlights
FY2019 Group Highlights Revenue dynamics in FY2019, $m EBITDA dynamics in FY2019, $m EBITDA to FCF bridge for FY2019, $m EBITDA FY 2019 2,805 cash CAPEX (1,218) 8,157 8,580 2,805 3,142 interest paid & other fin. cost (114) income tax paid (401) FY 2019 FY 2018 FY 2019 FY 2018 NWC change 81 • Weaker
Slide 7: Transformation programme, EBITDA 2019 progress
Transformation programme, EBITDA 2019 progress: key drivers* from 2018 to 2019, $m 65 96 (10) 154 (561) (81) 3,142 Additional effect of $224m y/y 2,581 2,805 2,656 2,805 1. 2. 3. 4. 5. EBITDA 2018 Macro factors: selling EBITDA adjusted for Volumes & Product Mix Pellet sales Sales price efficiency Ba
Slide 8: Divisional Performance
Divisional Performance Any unauthorized copying, disclosure or distribution of the materials 8 contained in this document (or its annexes) is strictly prohibited.
Slide 9: Severstal Russian Steel Q4 & FY2019 performance
Severstal Russian Steel Q4 & FY2019 performance FY2019 vs. FY2018 ANALYSIS: 01 Crude steel production in 2019 declined 2% to 11.85 mln tonnes (FY2018: 12.04 mln tonnes), as higher aggregate productivity levels were offset by lower EAF production in H2 2019 following the sale of the Balakovo mini-mil
Slide 10: Severstal Resources Q4 & FY2019 performance
Severstal Resources Q4 & FY2019 performance FY2019 vs. FY2018 ANALYSIS: 01 Coking coal concentrate sales volumes from Vorkutaugol surged 38% y/y, as a result of planned production growth. 02 Iron ore concentrate sales volumes increased 14% y/y to 6.26 mln tonnes (FY2018: 5.51 mln tonnes) predominant
Slide 11: Divisional revenue structure Q4 & FY 2019
Divisional revenue structure Q4 & FY 2019 Group sales by region for FY2019, % RSD sales by region for FY2019, % 2% 2% 1% 2% Russian Federation 1% 2% Russian Federation 6% Europe 6% Europe CIS CIS 22% 22% Americas Africa The Middle East The Middle East 67% 67% Africa Americas Group sales by region fo
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)* 355 346 335 342 331 125 323 334 321 322 325 97 103 302 306 88 259 250 66 60 72 67 214 206 203 221 213 177 Q3 2019 Q4 2019 1
Slide 13: Financial Position
Financial Position Any unauthorized copying, disclosure or distribution of the materials contained in this document (or its annexes) is strictly prohibited. 13
Slide 14: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital FY2019 Highlights: FY2019 EBITDA to FCF reconciliation, $m 01 The Company generated $1,099 million of FCF, which represents a decline of 31.4% y/y (FY2018: $1,601 million), mainly reflecting a decline in EBITDA and CAPEX growth y/y. EBITDA FY 2019 2,805 02 FY2019 ca
Slide 15: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage 01 At the end of Q4 2019, cash and cash equivalents stood at $1,081 million (Q3 2019: $1,317 million), reflecting dividend payout partially offset by FCF generation. Robust Liquidity and Sustainable Leverage 02 Gross debt remained almost flat at $2,651 milli
Slide 16: Market Outlook
Market Outlook • The Phase 1 agreement between China and the USA and progress with the Brexit deal in Europe have reduced global economy risks and boosted market optimism which should support steel demand in the long term. After the sharp drop in Q4 2019 global steel prices seem to be turning the co
Slide 17: Appendices
Appendices Any unauthorized copying, disclosure or distribution of the materials contained in this document (or its annexes) is strictly prohibited. 17
Slide 18: Group's financial summary
Group’s financial summary Summary Income Statement Summary Cash Flow Statement $ million, unless otherwise stated Q4 2019 Q3 2019 FY 2019 FY 2018 $ million Q4 2019 Q3 2019 FY 2019 FY 2018 Profit before Financing and Taxation 457 645 2,258 2,725 Revenue 1,838 2,111 8,157 8,580 Cash Generated from Ope
Slide 19: Severstal. You can identify forward-looking statements by terms such as “expect”, “believe”, “estimate”, “intend”,
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