Severstal · RUS:CHMF
Severstal — Q4 2016 Earnings Presentation
22 slides from Severstal's earnings presentation, Feb 2, 2017
Slide 1: Q4 2016 Financial Results Presentation
Q4 2016 Financial Results Presentation 2 February 2017
Slide 2: Table of Contents
3 Q4 2016 Results Overview Table of Contents 7 Divisional Performance and Market Outlook 11 Financial Position 16 Appendices
Slide 3: Q4 2016 Results Overview
Q4 2016 Results Overview
Slide 4: Summary
Summary Q4 2016 Highlights: Group revenue increased 4.0% q/q to $1,651 million (Q3 2016: $1,588 million) driven by higher steel product sales volumes on the back of strengthening domestic demand as well as diversification of sales to export markets to take advantage of higher average selling price
Slide 5: Revenue Dynamics & Breakdown
Revenue Dynamics & Breakdown Q4 2016 Revenue: $1,651m FY 2016 Revenue: $5,916m (Q3 2016: $1,588m; 4.0%) (FY 2015: $6,396m; -7.5%) Group revenue increased q/q due to higher Group revenue decreased y/y as a result of average USD selling prices and growth in sales lower realised prices and volumes y/y
Slide 6: EBITDA Dynamics & Breakdown
EBITDA Dynamics & Breakdown Q4 2016 EBITDA: $528m FY 2016 EBITDA: $1,911m (Q3 2016: $584m; -9.6%) (FY 2015: $2,096; -8.8%) Group EBITDA declined q/q on the back of higher Group EBITDA decreased y/y as the revenue operating costs which were marginally offset by compression was only partially offset b
Slide 7: Divisional Performance and Market Outlook
Divisional Performance and Market Outlook
Slide 8: Severstal Russian Steel (RSD)
Severstal Russian Steel (RSD) Russian Steel product sales increased 5% q/q to 2.79 million tonnes. This was driven by the sell-off of stocks EBITDA per tonne and average selling price accumulated in the previous quarter in response to higher domestic demand for hot-rolled and long EBITDA per tonne
Slide 9: Cost Control at Severstal Russian Steel
Cost Control at Severstal Russian Steel Cherepovets Steel Mill production cash cost of slab, $/t $600 $500 537 472 457 457 $400 432 Cherepovets 401 418 409 cash cost of 370 377 350 361 slab at market $300 327 price of raw materials 255 259 250 Q4 16 non-integrated $200 378 214 206 203 177 221 213 ca
Slide 10: Severstal Resources
Severstal Resources In Q4 coking coal concentrate sales from Vorkutaugol declined further, by 12% q/q to 0.80 mln tonnes (Q3 2016: 0.91 mln tonnes) impacted by scheduled long-wall repositionings at the Average selling price and cash cost per tonne Vorkutinskaya mine and the sell-off of stock durin
Slide 11: Financial Position
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Slide 12: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital Q4 2016 Highlights: Cash Flow dynamics, Solid liquidity position of $1,154m in cash and cash equivalents 31 Dec 2015 to 31 Dec 2016 Operating cash flow of $541m* in Q4 16 663 Q4 16 CAPEX of $167m, 36.9% higher q/q (Q3 16: $122m) reflecting 1,477 seasonal speci
Slide 13: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage At the end of Q4 2016, cash and cash equivalents were $1,154 million (Q3 2016: $1,141 million) which reflects the interim dividend payment for Q3 2016 in December 2016, scheduled loan repayments during Q4 and CAPEX growth q/q which were offset Total Short-
Slide 14: Debt Structure
Debt Structure As at 31.12.2016 the debt structure was dominated by public debt almost in full and the US dollar (99.1% of total). Debt Maturity Schedule*, $m 649 630 549 201 1 1 2017 2018 2019 2020 2021 2022+ Notes: Debt represents the principal amount of debt. Debt for 2016 represents amount of de
Slide 15: Market Outlook
Market Outlook Global: According to industry experts, world crude steel production increased 0.8% in 2016 driven by Chinese production which grew 1.2% and reached 808 mln tonnes. In 2017 steel production is expected to grow further driven by increasing global demand. Global coking coal prices si
Slide 16: Appendices
Severstal Appendices ANA A SSS CTI Zz
Slide 17: Summary Income Statement
Summary Income Statement $ million, unless otherwise stated Q4 2016 Q3 2016 2016 2015*** Revenue 1,651 1,588 5,916 6,396 COGS (998) (907) (3,573) (3,810) EBITDA 528 584 1,911 2,096 EBITDA margin, % 32.0% 36.8% 32.3% 32.8% Profit from operations 435 458 1,517 1,703 Operating margin, % 26.3% 28.8% 25.
Slide 18: Q4 2016 Revenue Breakdown by Region
Q4 2016 Revenue Breakdown by Region Severstal Group Q4 2016 revenue Severstal Russian Steel Q4 2016 revenue breakdown by region breakdown by region 6% Other 8% Other 7% Middle 4% Middle East East 18% Europe 21% Europe 64% Russia 2% 68% Russia Americas 2% Americas Severstal Resources Q4 2016 revenue
Slide 19: Q4 2016 Divisional Results
Q4 2016 Divisional Results Severstal Resources Q4 2016 Q3 2016 Change, % 2016 2015 Change, % Revenue ($m) 348 281 23.8% 1,154 1,240 (6.9%) Cost of sales ($m) (183) (182) 0.5% (689) (758) (9.1%) G&A expenses ($m) (12) (12) 0.0% (47) (59) (20.3%) Distribution expenses ($m) (30) (28) 7.1% (114) (128) (
Slide 20: Summary Balance Sheet
Summary Balance Sheet $ million As at 31 December 2016 As at 31 December 2015 Cash and Cash Equivalents 1,154 1,647 Total Assets: 6,483 5,867 Current Assets 2,808 2,937 Non-current Assets 3,675 2,930 Total Liabilities: 3,442 3,599 Current Liabilities 1,796 1,297 Non-current Liabilities 1,646 2,302 T
Slide 21: Summary Cash Flow Statement
Summary Cash Flow Statement $ million Q4 2016 Q3 2016 2016 2015 Profit before Financing and Taxation 356 438 1,394 1,469 Cash Generated from Operations 632 489 1,744 2,095 Interest Paid (45) (27) (152) (177) Income Tax Paid (46) (33) (115) (51) Net cash from Operating Activities - continuing operati
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