Slide 1: IFRS financial statements for Q4 and FY 2018
IFRS financial statements for Q4 and FY 2018 7 February 2019 gelivostok.
Slide 2: Key highlights for MMK Group
1 Key highlights for MMK Group FY 2018 financial results Revenue USD 8,214 mln up 8.9% on FY 2017 Costs of sales USD 5,531 mln up 5.0% on FY 2017 EBITDA USD 2,418 mln up 19.0% on FY 2017 EBITDA margin 29.4% up 2.5 p.p. on FY 2017 Net profit USD 1,317 mln up 10.8 % on FY 2017 Free cash flow (FCF) USD
Slide 3: Key operational indicators
2 Key operational indicators Key indicators, the tonnes Q4’18 Q3’18 % FY’18 FY’17 % Pig iron production 2,558 2,621 -2.4% 9,860 10,163 -3.0% Crude steel production 3,112 3,376 -7.8% 12,664 12,860 -1.5% MMK 3,112 3,376 -7.8% 12,664 12,860 -1.5% Finished products, incl. 2,936 3,052 -3.8% 11,664 11,617
Slide 4: MMK Group's sales structure on key market
3 MMK Group’s sales structure on key market 2 290 2 216 Russia and CIS 13% 18% In Q4 2018, the share of metal market sales by 22% 23% products shipped to Europe sector, 7% 7% increased q-o-q, this growth was ths tonnes 6% 7% 24% 19% mainly due to the reorientation of MMK Metalurji shipments 28% 26%
Slide 5: MMK Group's revenue by segment, mln USD
4 MMK Group’s revenue by segment, mln USD Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 The Group's revenue for Q4 2018 amounted to USD 1,962 mln, 1 899 1 903 2 049 2 024 1 822 1 908 1 850 down 6.2% q-o-q 1 587 Steel segment (Russia) Revenue growth in the Steel segment (Turkey) in Q4 2018 was Q1 1
Slide 6: MMK Group's key financial highlights
5 MMK Group’s key financial highlights 647 655 600 573 556 555 616 610 579 The average sales price in Q4 2018 EBITDA/t vs metal 159 147 200 186 217 206 171 decreased by 5.1% q-o-q, reflecting 162 sale price, USD/т 400 the shift in global steel prices 414 416 461 438 200 409 393 404 408 0 The Russian
Slide 7: Analysis of key financial highlights
6 Analysis of key financial highlights 2 500 The main factors that influenced the -77 176 -143 51 Analysis of -119 -16 revenue in Q4 2018 were a decrease revenue, in sales volumes amid a correction in mln USD 2 091 1 878 1 911 1 911 1 962 steel prices 0 Revenue FX Other factors Other Steel MMK Metal
Slide 8: Depreciation and CAPEX
7 Depreciation and CAPEX 150 In Q4 2018, MMK group's capital Depreciation, expenditure amounted to USD 204 mln USD 147 145 mln. This 25.9% growth q-o-q is in 144 137 141 line with the investment programme 130 132 134 and due to the Company approaching the completion of the sinter plant №5 100 Q1 17
Slide 9: Sustainable generation of positive free cash flow (FCF)
8 Sustainable generation of positive free cash flow (FCF) As of the end of Q4 2 000 20,0% 2018, the working 18,7% 16,7% 16,8% capital/revenue ratio 15,7% was 14,6% 1 600 14,0% 14,7% 14,3% 14,6% 16,0% 1 242 1 301 1 382 1 209 1 235 1 197 1 149 1 200 1 124 12,0% 800 8,0% Net working capital, mln USD 40
Slide 10: MMK Group's debt profile
9 MMK Group’s debt profile Debt Cash and deposits At the end of Q4 2018, MMK Group's Debt and cash 600 523 536 1000 832 739 total debt amounted to USD 536 mln 800 1 197 2 funds structure 146 105 155 600 42 52 by currency, 400 mln USD 400 200 363 354 592 580 5 200 As of 31 December 2018, the share of
Slide 11: Cost of sales and structure of material costs
10 Cost of sales and structure of material costs 1 387 MMK Group’s 1 338 1,9% In Q4 2018, the share of iron ore and cost of sales, 1,2% 0,6% 0,1% Change in work in mln USD 9,7% 10,1% progress steel pellets in the structure of 11,5% 11,2% Change in inventory allowance material costs grew due to the g
Slide 12: Comments on market situation
11 Comments on market situation • At the moment, despite the seasonal decline in business activity on the domestic market, the Company sees a sufficient demand to maintain high capacity utilisation at its production facilities. • In general, the Company expects that in 2019 its high capacity utilisa
Slide 13: Disclaimer
12 Disclaimer • THESE MATERIALS ARE PROVIDED FOR INFORMATION PURPOSES ONLY • THIS PRESENTATION IS FOR DISTRIBUTION IN UK ONLY AMONG THE PEOPLE HAVING PROFESSIONAL SKILL IN THE ISSUES RELATED TO INVESTMENTS WITHIN THE MEANING OF ARTICLE 19(5) OF DIRECTIVE ON FINANCIAL ADVERTISEMENT APPROVED IN 2005 O