Severstal · RUS:CHMF
Severstal — Q1 2016 Earnings Presentation
22 slides from Severstal's earnings presentation, Apr 21, 2016
Slide 1: Q1 2016 Financial Results Presentation
Q1 2016 Financial Results Presentation 21 April 2016
Slide 2: Table of Contents
3 Q1 2016 Results Overview 7 Divisional Performance and Market Outlook Table of Contents 11 Financial Position 16 Appendices
Slide 3: Q1 2016 Results Overview
Severstal Q1 2016 Results Overview Achieve more together
Slide 4: Summary
Summary Q1 2016 Highlights: The entire company was extremely saddened as a result of the tragic deaths of 31 Severstal employees and five rescue workers in an incident at the Severnaya mine in February 2016. The Company is providing full support to the families of those affected. At the time of wr
Slide 5: Revenue Dynamics & Breakdown
Revenue Dynamics & Breakdown Q1 2016 Revenue: $1,097m Q1 2016 Revenue: $1,097m (Q4 2015: $1,396m; -21.4%) (Q1 2015: $1,531m; -28.3%) Group revenue decreased q/q as negative Group revenue decreased y/y as a result of impact of lower average selling prices in USD substantially lower realized prices y/
Slide 6: EBITDA Dynamics & Breakdown
EBITDA Dynamics & Breakdown Q1 2016 EBITDA: $273m Q1 2016 EBITDA: $273m (Q4 2015: $401m; -31.9%) (Q1 2015: $583; -53.2%) Group EBITDA decreased q/q as ongoing efficiency Group EBITDA decreased y/y as operational improvements coupled with production cost decline enhancements and RUB devaluation only
Slide 7: Divisional Performance and Market Outlook
Divisional Performance and Market Outlook
Slide 8: Severstal Russian Steel (RSD)
Severstal Russian Steel (RSD) Steel product sales decreased 6% q/q to 2.46 mln tonnes due to seasonal factors and the scheduled four- EBITDA per tonne and average selling price stand cold rolling mill upgrade at Cherepovets Steel Mill, which is expected to continue until the end of Q2 EBITDA per t
Slide 9: Cost Control at Severstal Russian Steel
Cost Control at Severstal Russian Steel Cherepovets Steel Mill production cash cost of slab, $/t $600 559 537 $500 484 472 457 457 432 418 409 401 $400 370 377 Cherepovets 350 361 cash cost of 327 slab at market $300 259 255 price of raw 214 materials 206 203 Q1 16 non-integrated $200 389 378 177 35
Slide 10: Severstal Resources
Severstal Resources Reflecting production outlay on the back of the tragic incident and taking into account coking coal inventories levels onsite, coking coal concentrate sales at Vorkutaugol decreased 8% q/q to Average selling price and cash cost per tonne 1.36mnt (Q4 15: 1.48mnt). Average coking
Slide 11: Financial Position
Severstal Financial Position Achieve more together EF“ eee
Slide 12: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital Q1 2016 Highlights: Cash Flow dynamics, Solid liquidity position of $1,547m in cash and cash equivalents 31 Dec 2015 to 31 Mar 2016 Operating cash flow of $66m* in Q1 16 66 Q1 16 capex of $119m, 2.5% lower q/q (Q4 15: $122m) reflecting prudent approach to inve
Slide 13: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage Strong liquidity position: As at the end of Q1 16, cash and cash equivalents were at $1,547m (Q4 625 15: $1,647m) which primarily reflects the negative free cash flow Severstal’s gross debt in USD-terms decreased a marginal 0.7% at the end of Q1 16 to $2
Slide 14: Debt Structure
Debt Structure As at 31.03.2016 the debt structure was dominated by public debt (87.4% of total) and the US dollar (89.4% of total). Debt Maturity Schedule*, $m 662 641 539 551 2 1 2016 2017 2018 2019 2020 2021+ Notes: Debt represents the principal amount of debt. Debt for 2016 represents amount of
Slide 15: Market Outlook
Market Outlook Global: Reflecting 3.0% steel consumption decline globally in 2015 coincided with steel production adjustment by 2.8% during the same period, global steel capacity utilization averaged at 70% Such a negative trend resulted in sharp negative correction of global steel prices, which
Slide 16: Appendices
Severstal Achieve more together
Slide 17: Summary Income Statement
Summary Income Statement $ million, unless otherwise stated Q1 2016 Q4 2015* Q1 2016 Q1 2015* Revenue 1,097 1,396 1,097 1,531 COGS (715) (891) (715) (824) EBITDA 273 401 273 583 EBITDA margin, % 24.9% 28.7% 24.9% 38.1% Profit from operations 196 303 196 495 Operating margin, % 17.9% 21.7% 17.9% 32.3
Slide 18: Q1 2016 Revenue Breakdown by Region
Q1 2016 Revenue Breakdown by Region Severstal Group Q1 2016 revenue Severstal Russian Steel Q1 2016 revenue breakdown by region breakdown by region Other 1% Americas Europe 1% 19% Middle East 3% CIS Russia CIS 6% 66% 6% Asia Russia Asia 6% 63% 5% Middle East 3% Europe 17% Americas Other 1% 3% Severs
Slide 19: Q1 2016 Division Results
Q1 2016 Division Results Severstal Resources Q1 2016 Q4 2015 Change, % Q1 2016 Q1 2015 Change, % Revenue ($m) 229 299 (23.4%) 229 289 (20.8%) Cost of sales ($m) (147) (185) (20.5%) (147) (155) (5.2%) G&A expenses ($m) (13) (13) 0% (13) (15) (13.3%) Distribution expenses ($m) (26) (31) (16.1%) (26) (
Slide 20: Summary Balance Sheet
Summary Balance Sheet $ million As at 31 March 2016 As at 31 December 2015 Cash and Cash Equivalents 1,547 1,647 Total Assets: 6,165 5,867 Current Assets 3,021 2,937 Non-current Assets 3,144 2,930 Total Liabilities: 3,558 3,599 Current Liabilities 1,285 1,297 Non-current Liabilities 2,273 2,302 Tota
Slide 21: Summary Cash Flow Statement
Summary Cash Flow Statement $ million Q1 2016 Q4 2015 Q1 2016 Q1 2015 Profit before Financing and Taxation 183 108 183 481 Cash Generated from Operations 111 475 111 323 Interest Paid (31) (51) (31) (42) Income Tax Paid (14) (19) (14) (4) Net cash from Operating Activities - continuing operations 66
Slide 22: 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