Slide 1: Financial Presentation 4Q and FY 2012 IFRS Results
PROPRIETARY & CONFIDENTIAL TMK Financial Presentation 4Q and FY 2012 IFRS Results
Slide 2: Disclaimer
Disclaimer No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of the Company, or any of its shareholders or subsidiaries or any of such person's offic
Slide 3: 4Q 2012 Sales by Division and Group of Product
4Q 2012 Sales by Division and Group of Product 4Q 2012 Sales by Division +4% Russian division sales increased QoQ mainly due to higher seamless OCTG volumes due to robust drilling activity in 840 Russia, and large diameter pipe (LDP) sales as a result of TMK’s participation, among other projects,
Slide 4: FY 2012 Sales by Division and Group of Product
FY 2012 Sales by Division and Group of Product FY 2012 Sales by Division +1% Russian division sales increased YoY mainly due to higher demand for seamless OCTG and line pipe as well as welded 3,200 line pipe that was significantly offset by the decrease in sales of LDP. Thousand tonnes 2,400 Ame
Slide 5: 4Q 2012 and FY 2012 Summary Financial Highlights
4Q 2012 and FY 2012 Summary Financial Highlights Revenue 4Q12: +1% QoQ FY12: -1% YoY 4Q 2012 revenue was relatively flat QoQ, with unfavorable 1,800 7,000 changes in seamless pipe pricing in the American division being 1,500 6,000 offset by higher LDP volumes in the Russian division and the 5,000
Slide 6: 4Q 2012 Revenue by Division
4Q 2012 Revenue by Division 4Q 2012 Revenue 4Q 2012 Revenue per Tonne* 1,400 -13% -23% 2,000 +7% 1,200 1,600 +3% 1,000 U.S.$ mln U.S.$ 800 1,200 1,917 1,924 600 1,212 1,132 -14% 800 1,670 1,420 1,468 1,480 400 -11% 400 200 410 352 0 75 67 0 Russia Americas Europe Russia Americas Europe 3Q2012 4Q2012
Slide 7: FY 2012 Revenue by Division
FY 2012 Revenue by Division FY 2012 Revenue FY 2012 Revenue per Tonne* -2% 5,000 2,400 -13% +2% 2,000 4,000 -3% U.S.$ mln 1,600 U.S.$ 3,000 4,788 1,200 4,714 +4% 2,107 2,000 1,783 1,827 1,840 800 1,537 1,492 1,000 400 1,590 1,650 -14% 375 324 0 0 Russia Americas Europe Russia Americas Europe FY2011
Slide 8: 4Q 2012 Adjusted EBITDA by Division vs. Prior Quarter
4Q 2012 Adjusted EBITDA by Division vs. Prior Quarter 4Q 2012 Adjusted EBITDA 4Q 2012 Adjusted EBITDA per Tonne +2% 210 300 -25% 180 -1% 250 150 -37% U.S.$ mln 200 U.S.$ 120 195 150 90 190 268 239 236 -38% 100 197 200 60 123 30 -14% 50 42 26 0 10 9 0 Russia Americas Europe Russia Americas Europe 3Q2
Slide 9: FY 2012 Adjusted EBITDA by Division vs. Prior Year
FY 2012 Adjusted EBITDA by Division vs. Prior Year FY 2012 Adjusted EBITDA FY 2012 Adjusted EBITDA per Tonne +6% 800 400 -18% 700 350 -17% 600 300 +5% U.S.$ mln 500 250 U.S.$ 400 766 721 -16% 200 360 300 150 298 294 231 242 246 200 100 -19% 265 222 100 50 64 52 0 0 Russia Americas Europe Russia Amer
Slide 10: Seamless – Core to Profitability
Seamless – Core to Profitability U.S.$ mln QoQ, YoY, 4Q 2012 FY 2012 (unless stated otherwise) % % Sales of seamless pipes Volumes- Pipes, kt 619 +2% 2,495 +7% generated 61% of total Revenue in 4Q 2012 and 62% of total Net Sales 999 1% 4,134 +6% Revenue for FY 2012. SEAMLESS Gross Profit 246 3% 1,
Slide 11: Working Capital Position
Working Capital Position Accounts Receivable (days) Accounts Payable (days) 100 94 120 107 100 80 80 75 73 60 56 56 56 64 50 60 50 40 40 20 20 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Inventories (days) Cash Conversion Cycle (days) 140 132 120 119 120 100 90 97 100 91 90 76 80 84 80 72
Slide 12: Debt Profile
Debt Profile TMK Continues to Optimize its Capital Structure and Develop a Flexible, Cost-effective Debt Portfolio Maturity Profile as of December 31, 2012 As of December 31, 2012, total financial debt accounted for U.S.$3,885 mln 1,050 1,019 73% of total financial debt is long-term 28% of Tot
Slide 13: Investment Projects
Investment Projects Russia USA Construction of EAF at Tagmet R&D Center in Houston Total Investment: U.S.$ 260 mln Investment: U.S.$26 mln Remaining Investment: U.S.$ 91 mln Timing: Building Completed in 2011 Project Launch: 2013 Final test equipment The in-house R&D Center Total Capacity: 950 k ton
Slide 14: Appendix – Summary Financial Accounts
Appendix – Summary Financial Accounts 14
Slide 15: Income Statement
Income Statement U.S.$ mln 2012 2011 2010 2009 2008 Revenue 6,688 6,754 5,579 3,461 5,690 Cost of Sales (5,204) (5,307) (4,285) (2,905) (4,252) Gross Profit 1,483 1,446 1,293 556 1,438 Selling and Distribution Expenses (433) (411) (403) (313) (344) General and Administrative Expenses (293) (283) (23
Slide 16: Statement of Financial Position
Statement of Financial Position U.S.$ mln 31-Dec-12 31-Dec-11 31-Dec-10 31-Dec-09 31-Dec-08 ASSETS Cash and Bank Deposits 225 231 158 244 143 Accounts Receivable 914 772 720 580 758 Inventories 1,346 1,418 1,208 926 1,176 Prepayments 180 200 172 223 213 Other Financial Assets 4 4 4 4 4 Total Current
Slide 17: Cash Flow
Cash Flow U.S.$ mln 2012 2011 2010 2009 2008 Profit / (Loss) before Income Tax 405 544 185 (427) 308 Adjustments for: Depreciation and Amortisation 326 336 301 313 248 Net Interest Expense 275 271 412 406 263 Others 34 (101) 44 36 228 Working Capital Changes (34) (156) (527) 558 (81) Cash Generated
Slide 18: Thank You
Thank You TMK Investor Relations 40/2a, Pokrovka Street, Moscow, 105062, Russia +7 (495) 775-7600 IR@tmk-group.com 18