Severstal · RUS:CHMF
Severstal — Q1 2021 Earnings Presentation
21 slides from Severstal's earnings presentation, Apr 16, 2021
Slide 1: Q1 2021 Financial and Operational Results Presentation
Q1 2021 Financial and Operational Results Presentation 16.04.2021 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 Q1 2021 Results Overview 09 Divisional Performance 15 Financial Position 18 Market Outlook 19 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. 2
Slide 3: Q1 2021 Results Overview
Q1 2021 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: Q1 2021 Group Highlights
Q1 2021 Group Highlights Q1 2021 vs. Q4 2020 ANALYSIS: 1. Hot metal output increased 12% q/q in Q1 2021 to 2.67 mln tonnes (Q4 2020: 2.40 mln tonnes) following the launch of BF#3. Crude steel production increased 7% q/q to 2.96 mln tonnes (Q4 2020: 2.77 mln tonnes). 2. Steel product sales increased
Slide 5: Q1 2021 Group's Consolidated Highlights
Q1 2021 Group’s Consolidated Highlights $ million, unless otherwise stated Q1 2021 Q4 2020 Change, % Q1 2021 Q1 20201 Change, % Revenue 2,219 1,723 28.8% 2,219 1,740 27.5% EBITDA2 1,162 710 63.7% 1,162 555 109.4% EBITDA margin, % 52.4% 41.2% 11.2 ppts 52.4% 31.9% 20.5 ppts Profit from operations 1,0
Slide 6: Revenue & EBITDA divisional quarterly dynamics
Revenue & EBITDA divisional quarterly dynamics Revenue (m$) Q3 20 - Q1 21: Q1 2021 Group Revenue: $2,219m up 28.8% q/q 1,851 2,154 (Q4 2020: $1,723m); 1,708 473 550 747 Group revenue increased due to stronger pricing dynamics. (472) (535) (682) Q3 2020 Q4 2020 Q1 2021 Intersegment Severstal Resource
Slide 7: Q1 2021 vs Q1 2020 Group Highlights
Q1 2021 vs Q1 2020 Group Highlights Revenue dynamics in Q1 2021, $m EBITDA dynamics in Q1 2021, $m EBITDA to FCF bridge for Q1 2021, $m EBITDA Q1 2021 1,162 cash CAPEX (278) 2,219 1,162 interest paid & other fin. cost (31) 1,740 555 income tax paid (124) NWC change (224) Q1 2021 Q1 2020 Q1 2021 Q1 2
Slide 8: Q1 2021 operational efficiencies & CAPEX projects
Q1 2021 operational efficiencies* & CAPEX projects, $m Upstream effects 30 CAPEX PROJECTS LAUNCHED IN Q1 2021 $17m 20 $13m 10 $4m Total Commissioning of the new continuous pickling unit #4 Investment of c. RUB 7 billion. 0 -10 = Capacity: 2 million tonnes per year -20 -$10m -30 -$17m -40 -$41m Downs
Slide 9: 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. 9
Slide 10: Severstal Russian Steel Q1 2021 performance
Severstal Russian Steel Q1 2021 performance 1. RSD topline increased by 26.1% q/q to $2,154 million (Q4 2020: $1,708 million). EBITDA increased by 74.4% q/q to $689 million (Q4 2020: $395 million). The EBITDA margin increased to 32.0% (Q4 2020: 23.1%). 2. The total non-integrated cash cost of slab p
Slide 11: Severstal Russian Steel Q1 2021 performance
Severstal Russian Steel Q1 2021 performance The weighted average selling price for the whole range of steel products in Q1 2021 continued to rise, growing by 26% q/q following an increase in the previous quarter. This is a result of positive steel pricing dynamics for export destinations, where the
Slide 12: Severstal Resources Q1 2021 performance
Severstal Resources Q1 2021 performance 1. Sales volumes Q4 2020 vs.ofQ3coking 2020coal concentrate from Vorkutaugol decreased by 21% q/q to 0.99 mln tonnes (Q4 2020: 1.26 mln tonnes) as a result of 1ZH concentrate output ANALYSIS: decline q/q affected by long wall repositioning, partly offset by in
Slide 13: Revenue structure Q1 2021 vs Q4 2020
Revenue structure Q1 2021 vs Q4 2020 Severstal Q4 2020 revenue Severstal Group Q1 2021 revenue breakdown by region breakdown by region 4% 1% 1% 1% 1% 2% 5% 5% Russian Federation Russian Federation Europe Europe 28% CIS 51% CIS Americas 38% Americas The Middle East The Middle East 63% Africa Other An
Slide 14: 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)* 372 89 355 89 81 335 342 346 323 334 325 331 321 322 58 302 306 69 293 78 271 270 52 69 250 252 221 213 177 Q4 2020 Q1 2021 Q
Slide 15: 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. 15
Slide 16: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital Q1 2021 Highlights: Q1 2021 EBITDA to FCF reconciliation, $m 1. Free Cash Flow increased by 134.4% to $497 million in Q1 2021 (Q4 2020: $212 million), which primarily reflects positive changes in net working capital q/q and higher earnings. EBITDA Q1 2021 1,162 2. C
Slide 17: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage Robust Liquidity and Sustainable Leverage 1. At the end of Q1 2021, cash and cash equivalents increased to $921 million (Q4 2020: $583 million). 2. Gross debt slightly declined to $2,510 million (Q4 2020: $2,612 million). 2,590 0.82 2,612 2,563 2,510 0.77 0.
Slide 18: Market Outlook
Market Outlook • The negative effect of the pandemic on the steel industry did not last as long as expected. China, the world’s biggest steel market, grew by 10% in 2020 after the country established control over the virus and launched stimulus measures, pushing steel-related commodity prices upward
Slide 19: 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. 19
Slide 20: Group's financial summary
Group’s financial summary Summary Income Statement Summary Cash Flow Statement $ million, unless otherwise stated Q1 2021 Q4 2020 Q1 2021 Q1 20201 $ million Q1 2021 Q4 2020 Q1 2021 Q1 2020 Revenue 2,219 1,723 2,219 1,740 Profit before Financing and Taxation 1,007 580 1,007 408 COGS (947) (902) (947)
Slide 21: 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