Severstal · RUS:CHMF
Severstal — Q3 2020 Earnings Presentation
19 slides from Severstal's earnings presentation, Oct 22, 2020
Slide 1: Q3 & 9M 2020 Financial Results Presentation
Q3 & 9M 2020 Financial Results Presentation 22.10.2020 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 Q3 & 9M 2020 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: Q3 & 9M 2020 Results Overview
Q3 & 9M 2020 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: Q3 & 9M 2020 Group Highlights
Q3 & 9M 2020 Group Highlights Q3 2020 vs. Q2 2020 ANALYSIS: 01 Group revenue increased by 17.9% q/q to $1,875 million (Q2 2020: $1,590 million) driven by steel prices recovery q/q and steel sales volumes growth. 02 Group EBITDA increased by 30.9% q/q to $656 million (Q2 2020: $501 million). Seversta
Slide 5: Revenue & EBITDA divisional quarterly dynamics
Revenue & EBITDA divisional quarterly dynamics Revenue (m$) Q1 20 - Q3 20: 1,770 1,874 Q3 2020 Group Revenue: $1,875m up 17.9% q/q 1,588 (Q2 2020: $1,590m); 400 402 473 Group revenue increased driven by volumes and selling prices growth q/q (393) (400) (472) Q1 2020 Q2 2020 Q3 2020 Intersegment Seve
Slide 6: 9M 2020 Group Highlights
9M 2020 Group Highlights Revenue dynamics in 9M 2020, $m EBITDA dynamics in 9M 2020, $m EBITDA to FCF bridge for 9M 2020, $m EBITDA 9M 2020 1,712 cash CAPEX (1,016) 5,242 6,319 2,203 1,712 interest paid & other fin. cost (99) 9M 2020 9M 2019 9M 2020 9M 2019 income tax paid (144) • Revenue declined d
Slide 7: EBITDA bridge key drivers from 9M 2019 to 9M 2020
EBITDA bridge key drivers* from 9M 2019 to 9M 2020, $m (532) 35 6 71 (52) (19) 2,203 1,671 1,712 EBITDA 9M 2019 Macro factors: selling EBITDA adjusted for Domestic Market Sales & Marketing Steel sales volumes Balakovo disposal Operational EBITDA 9M 2020 prices and COS macro factors Capacity performa
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 Q3 & 9M 2020 performance
Severstal Russian Steel Q3 & 9M 2020 performance Q3 2020 vs. Q2 2020 ANALYSIS: 01 RSD steel product sales increased by 18% q/q to 3.02 mln tonnes in Q3 2020 (Q2 2020: 2.56 mln tonnes). 02 RSD topline increased by 18.0% q/q to $1,874 million (Q2 2020: $1,588 million). EBITDA increased by 17.4% q/q to
Slide 10: Severstal Resources Q3 & 9M 2020 performance
Severstal Resources Q3 & 9M 2020 performance Q3 2020 vs. Q2 2020 ANALYSIS: 01 Revenue from the Resources Division increased to $473 million in Q3 2020 (Q2 2020: $402) million mainly as a result of improved growth in iron ore products. EBITDA increased by 43.4% q/q to $261 million (Q2 2020: $182 mill
Slide 11: Revenue structure Q3 & 9M 2020
Revenue structure Q3 & 9M 2020 Severstal Group Q3 2020 revenue Severstal Group 9M 2020 revenue breakdown by region breakdown by region 2% 1% 1% 4% 2% 1% 3% 6% Russian Federation Russian Federation 7% Europe Europe CIS CIS 24% The Middle East Americas 26% 63% Africa 60% The Middle East Other Africa O
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)* 355 109 335 342 346 323 334 325 331 321 322 70 71 302 306 63 271 270 66 72 70 72 250 252 206 203 221 213 Q2 2020 Q3 2020 9M
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 Q3 2020 Highlights: 9M 2020 EBITDA to FCF reconciliation, $m 01 Free Cash Flow surged by 101.1% to $382 million in Q3 2020 (Q2 2020: $190 million), primarily reflecting EBITDA 9M 2020 1,712 earnings growth and positive changes in net working capital q/q. 02 cash CAP
Slide 15: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage 01 At the end of Q3 2020, cash and cash equivalents increased to $781 million (Q2 2020: $584 million). Robust Liquidity and Sustainable Leverage 02 Gross debt remained almost unchanged at $2,563 million (Q2 2020: $2,590 million). 0.82 0.77 0.56 0.57 03 Net d
Slide 16: Market Outlook
Market Outlook • In Q3 2020 global steel demand recovered gradually in line with the lifting of lockdowns. Chinese steel demand increased by 6% in the year to date, while ex-China demand decreased by 14%. Global steel production bottomed in April 2020 with a year on year reduction of 13% and then st
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 Q3 2020 Q2 2020 9M 2020 9M 2019 $ million Q3 2020 Q2 2020 9M 2020 9M 2019 Revenue 1,875 1,590 5,242 6,319 505 376 1,289 1,801 Profit before Financing and Taxation COGS (1,091) (955) (3,1
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