OMZ (pref) · RUS:OMZZP
OMZ (pref) — OMZ — H1 2004 Earnings Presentation
15 slides from OMZ (pref)'s earnings presentation, November 2004
Slide 1: 2004 interim IFRS financial results
2004 interim IFRS financial results November 2004 Moscow 11
Slide 2: Income statement highlights
Income statement highlights Six Six % $mln months months Change Change 2004 2003 Sales 176.2 100% 133.4 100% 42.8 32% Gross margin 53.1 30% 38.6 29% 14.5 38% EBITDA 18.5 10% 13.5 10% 5.0 37% EBIT 13.5 8% 9.3 7% 4.2 45% EBT 5.6 3% 1.3 1% 4.3 331% Profit for six month before discontinued 5.4 3% 4.7 4%
Slide 3: Segmentation – key results
Segmentation – key results Intersegment NPPEQ MINEQ STEEL MMEQ Other Total sales $mln Sales 58.6 59.1 48.8 42.5 54.5 (87.3) 176.2 Six months 2004 Gross Margin 40% 10% 13% 18% 20% 30% Six months 2004 Sales 41.2 47.8 58.9 22.9 31.7 (69.1) 133.4 Six months 2003 Gross Margin 34% 15% 16% 23% 14% 29% Six
Slide 4: Change in sales by segment
Change in sales by segment $mln Six Six Change months months Change % Change structure 2004 2003 NPPEQ 58.6 41.2 17.4 42.2% 40.7% STEEL 59.1 47.8 11.3 23.6% 26.4% MMEQ 48.8 58.9 (10.1) (17.1%) (23.6%) MINEQ 42.5 22.9 19.6 85.6% 45.8% Other 54.5 31.7 22.8 71.9% 53.3% Intersegment (87.3) (69.1) (18.2)
Slide 5: Change in gross margin by segment
Change in gross margin by segment Six Six Change Change $mln. months months Change % structure 2004 2003 NPPEQ 23.2 13.8 9.4 68.1% 64.8% STEEL 6.2 7.1 (0.9) (12.7%) (6.1%) MMEQ 6.2 9.3 (3.1) (33.3%) (21.4%) MINEQ 7.8 5.2 2.6 50% 17.9% Other 10.9 4.4 6.5 147.7% 44.8% Eliminations& (1.2) (1.2) - - - u
Slide 6: Change in EBITDA by segment
Change in EBITDA by segment $mln. Six Six Change months months Change % Change structure 2004 2003 NPPEQ 14.6 7.2 7.4 102.8% 148% STEEL 0.2 1.2 (1.0) (83.3%) (20%) MMEQ 1.4 (1.8) 3.2 (177.8%) 64% MINEQ 0.3 2.1 (1.8) (85.7%) (36%) Other 6.0 0.6 5.4 900.0% 108% Eliminations (4.0) 4.2 (8.2) (195.2%) (1
Slide 7: Cost of sales
Cost of sales ($‘000) Six months Six months Change 2004 2003 Materials and components used 77 955 50.7% 55 736 49.7% 22 219 Labour costs 33 038 21.5% 25 171 22.4% 7 867 Gas and fuel 24 353 15.9% 17 454 15.6% 6 899 Services 12 607 8.2% 9 035 8.0% 3 572 Depreciation 4 281 2.8% 3 890 3.5% 391 Negative
Slide 8: G&A expenses
G&A expenses ($’000) Six Six Change Forex Six months Adjusted months months 2003, adjusted change 2004 2003 for Forex Taxes 3 309 4 151 (842) 361 4 512 (1 203) Labour costs 23 813 22 344 1 469 1 942 24 286 (473) Amortisation of 413 113 300 10 123 290 intangibles Depreciation 904 836 68 73 909 (5) Se
Slide 9: Selling expenses
Selling expenses ($’000) Six Six Change Forex Adj Six Adjusted months months months change 2004 2003 2003 Transportation 1 720 1 211 509 105 1 316 404 Services 2 828 1 767 1 061 154 1 921 907 Labour costs 737 308 429 27 335 402 Other 521 112 409 9 121 400 Total 5 806 3 398 2 408 295 3 693 2 113 Sale
Slide 10: Key Ratios
Key Ratios December 31, June 30, 2004 2003 Debt to market capitalisation 1.1 0.8 Turnover (days) Inventories 171 180 Trade accounts receivable 73 112 NWC 201 242 10 10
Slide 11: Debt dynamics
Debt dynamics $mln June 30, 2004 December 31, 2003 Long-term debt (incl. non-convertible 68.0 26% 43.5 17% bonds) Short-term debt 193.1 74% 206.0 83% Total debt 261.1 100% 249.5 100% 11 11
Slide 12: Effective interest rate
Effective interest rate $mln Six months Six months 2004 2003 Average debt 255.8 182.1 Interest expense 12.6 8.8 Effective interest 9.9% 9.7% rate 12 12
Slide 13: Change in NWC by segment
Change in NWC by segment $mln. NPPEQ STEEL MMEQ MINEQ Other Eliminations& Total unallocated NWC December 31, 2003 65.7 13.9 28.5 32.7 11.4 23.3 175.5 Settlements with 5.2 (1.1) 6.7 - (7.2) (14.0) (10.4) customers Inventories (5.8) 0.8 39.0 3.7 (2.3) (1.9) 33.5 Accounts due from/to 19.4 - - - 0.6 - 2
Slide 14: Pro-forma consolidated Balance sheet as at June 30, 2004 including Skoda
Pro-forma consolidated Balance sheet as at June 30, 2004 including Skoda* $ mln OMZ Skoda Total ASSETS Current assets 472.2 108.8 575.9 Non-current assets 140.0 99.0 239.0 Total assets 612.2 207.8 814.9 LIABILITIES Current liabilities 470.8 70.0 578.1 Non-current liabilities 99.3 44.1 143.4 Total li
Slide 15: Pro-forma consolidated Income statement for six months of 2004 including Skoda
Pro-forma consolidated Income statement for six months of 2004 including Skoda* $ mln OMZ Skoda Total Sales 176.2 100.9 277.1 Gross profit 53 14.5 67.5 Profit from acquisition of Skoda 50.9 - 50.9 companies Profit (loss) before loss from 56.4 (0.8) 55.6 discontinued operations Profit (loss) for the