NLMK · RUS:NLMK
NLMK — H1 2006 Earnings Presentation
11 slides from NLMK's earnings presentation, September 2006
Slide 1: 1H 2006 Financial & Production Results Presentation
NLMK 1H 2006 Financial & Production Results Presentation US GAAP Consolidated Financial Statements September 2006 Презентация результатов работы по итогам 1 квартала 2005 года 1
Slide 2: Production Highlights
Н ЛМК Production Highlights NLMK change 1H 2006 1H 2005 (thousands of tonnes) +/- % Pig iron 4 523 3 819 704 18% Steel 4 591 4 088 503 12% Finished steel products 4 207 3 854 354 9% F lats 2 252 2 374 -122 -5% - share (%) 54% 62% Slabs 1 955 1 479 476 32% - share (%) 46% 38% Pre-painted steel 357 24
Slide 3: Group Production Highlights
Н ЛМК Group Production Highlights NLMK Crude steel and Finished steel Mining segment 12 000 11 267 10 000 8 854 9 123 8 576 8 468 9 979 8 233 7 979 10 000 8 000 thousands of tonnes thousands of tonnes 8 000 5 810 6 134 6 000 4 591 6 000 4 088 3 854 4 207 4 000 4 000 1 809 2 000 2 000 1 205 1 081 552
Slide 4: Key Financial Highlights
Key Financial Highlights NLMK change 1H 2006 1H 2005 (millions of US dollars) +/- % Net sales 2 602 2 377 225 9% Cost of sales -1 449 -1 168 -281 24% Production cost -1 290 -1 028 -263 26% Depreciation -158 -140 -18 13% Gross profit 1 153 1 209 -56 -5% - as % of net sales 44% 51% SG&A -227 -102 -125
Slide 5: Key Performance Indicators
Н ЛМК Key Performance Indicators NLMK Net sales EBITDA1, as % of net sales 6 000 4 000 70% 4 539 4 469 53% 52% 60% millions of US dollars millions of US dollars 3 000 47% 4 000 41% 2 398 50% 2 095 38% 2 602 40% 2 468 2 377 2 000 1 231 30% 2 000 1 007 993 1 000 20% 10% 0 0 0% 2 2003 2004 2005 1H 2005
Slide 6: Production Cost Structure
Leveraging sustainable Production Cost Structure low production NLMK cost base Steel segment Mining segment De pre cia tion Othe r 8% Iron ore 15% 21% La bour La bour 21% 9% Other 11% De pre cia tion 25% Coa l a nd coke 20% Ene rgy 10% Ene rgy Othe r ra w 26% Ra w mate ria ls materia ls Scra p 13% 1
Slide 7: Consolidated Balance Sheet
Н ЛМК Consolidated Balance Sheet NLMK Assets As at June As at Dec. 31, change (millions of US dollars) 30, 2006 2005 +/- % Current assets 3 287 3 436 -148 -4% - share (%) 45% 55% Non-current assets 4 087 2 775 1 312 47% - share (%) 55% 45% Total assets 7 374 6 211 1 164 19% Liabilities & Stockholder
Slide 8: Return on equity, return on assets and liquidity measures
Н ЛМК Financial Highlights NLMK Return on equity & return on assets Liquidity measures1 60% 8 52% 43% 5,9 6 5,6 40% 37% 4,8 4,8 4,7 4,7 34% 3,9 3,9 29% 30% 31% 3,7 28% 25% 24% 4 3,0 20% 2 0% 0 2003 2004 2005 1H 2005 1H 2006 2003 2004 2005 1H 2005 1H 2006 Return on equity (ROE) Return on assets (ROA)
Slide 9: Operating cash flow, net debt, debtors and creditors
Н ЛМК Financial Highlights NLMK Net cash inflow from operating activities Net increase/(decrease) in cash & cash equivalents 2 2 000 1 669 2 500 1 515 millions of US dollars +576 millions of US dollars 2 000 +619 1 386 1 500 1 000 738 668 -539 528 1 000 +347 500 383 0 0 2003 2004 2005 1 1H 2005 1H 2
Slide 10: Change in Cash: Free Cash Flow Bridge
Н ЛМК Change In Cash NLMK Free Cash Flow Bridge 419,6 -913,7 Net interest -212,2 25,5 -239,8 Effect of exchange rate Net repayments of 993,3 Non-cash 2 change Working Capital Other financial borrowings resources 3 of invesments Capex Proceeds from sale 48,0 Dividends 566,7 changes -636,9 Tax -84,7 A
Slide 11: Capital expenditure and depreciation
Н ЛМК Financial Highlights NLMK Capital expenditure Depreciation 800 300 284 244 millions of US dollars millions of US dollars 573 600 200 158 158 400 140 239 269 265 240 100 200 0 0 1 2003 2004 2005 1H 2005 1H 2006 1 2003 2004 2005 1H 2005 1H 2006 Operating cash flow ratio Capital expenditure ratio