Nlmk · RUS:NLMK
Nlmk — Q1 2007 Earnings Presentation
12 slides from Nlmk's earnings presentation, June 2007
Slide 1: Q1 2007 Financial and Production Results Presentation
NLMK Q1 2007 Financial and Production Results Presentation US GAAP Consolidated Financial Statements June 2007 Презентация результатов работы по итогам 1 квартала 2005 года 1
Slide 2: Group production highlights
Group production highlights Н ЛМК NLMK Parent Company NLMK Group 1 change change Q1 2007 Q4 2006 Q1 2007 Q4 2006 thousand tonnes +/- % +/- % Pig iron 2,338 2,273 65 2.9% 2,338 2,273 65 2.9% Steel 2,341 2,317 24 1.0% 2,341 2,317 24 1.0% Pig iron for sale 243 160 83 51.9% 243 160 83 51.9% Slabs 1,054
Slide 3: Group production highlights
Group production highlights NLMK Н ЛМК Crude steel and pig iron Iron ore concentrate and sintering ore 10,000 9,125 14,000 8,468 9,043 12,219 8,000 7,886 12,000 11,267 thousand tonnes thousand tonnes 10,000 6,000 8,000 4,000 6,000 2,290 2,201 2,317 2,273 2,341 2,338 2,857 2,892 4,000 2,876 2,000 2,0
Slide 4: Key financial highlights
Key financial highlights NLMK Q1 2007/Q4 2006 Q1 2007/Q1 2006 Q1 2007 Q4 2006 Q1 2006 (million USD) +/- % +/- % Net sales 1,750 1,687 1,087 63 3.7% 663 61.0% Cost of sales -933 -768 -649 -165 21.5% -284 43.8% Production cost -830 -661 -575 -169 25.6% -255 44.3% Depreciation -102 -108 -74 6 -5.6% -28
Slide 5: Key performance indicators
Key performance indicators Н ЛМК NLMK Net sales EBITDA1, as % of net sales 8,000 4,000 48% 48% 55% 6,046 44% 43% 6,000 45% 3,000 36% 2,631 4,376 35% million USD million USD 2,083 4,000 2,000 25% 1,687 1,750 15% 2,000 1,000 802 748 1,087 388 5% 0 0 -5% 2005 2006 Q1 2006 Q4 2006 Q1 2007 2005 2006 Q1 2
Slide 6: Q1 2007 segmental highlights
Q1 2007 segmental highlights NLMK Intersegmental Coke- Steel Mining All other Totals operations and Consolidated chemical (million USD) balances Revenue from external customers 1,599 23 105 23 1,750 - 1,750 Intersegment revenue 6 192 27 37 262 -262 - Gross profit 633 135 23 14 806 12 817 Operating i
Slide 7: Leveraging sustainable low production cost base
Leveraging sustainable Q1 2007 production cost structure low production NLMK cost base Group Steel segment Iron ore De preciation Depreciation Others 7.5% 6.8% 11.0% 12.5% Iron ore Coke and coal 27.1% Labour Labour 19.7% 16.0% 10.6% Scrap Other energy 7.5% re source s Others Coke and coal 0.6% 15.4%
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Н ЛМК NLMK Assets As of 31 Mar. As of 31 Dec. As of 30 Sep. As of 30 Jun. As of 31 Mar. As of 31 Dec. (million USD) 2007 2006 2006 2006 2006 2005 Current assets 3,484 3,050 3,556 3,287 3,865 3,436 - share (%) 37% 35% 43% 45% 57% 55% Non-current assets 5,821 5,667 4,734 4,0
Slide 9: Financial highlights
Financial highlights Н ЛМК NLMK Return on equity and return on assets2 Liquidity measures1 60% 8 7.1 6.1 40% 6 5.6 40% 35% 34% 4.7 30% 28% 3.7 24% 26% 4 3.1 3.1 23% 2.8 18% 20% 2.2 2.2 20% 2 0% 0 2005 2006 Q1 2006 Q4 2006 Q 1 2007 2005 2006 Q1 2006 Q4 2006 Q1 2007 Return on equity (ROE) Return on as
Slide 10: Financial highlights
Financial highlights Н ЛМК NLMK Net cash inflow from operating activities Net increase/(decrease) in cash & cash equivalents1 2,000 1,585 2,500 1,524 2,000 +576 million USD m illion USD 1,500 1,349 1,000 +233 898 556 1,000 459 159 500 -1,259 0 0 2005 2006 Q1 2006 Q4 2006 Q1 2007 as at 2005 2006 Q1 2
Slide 11: Q1 2007 change in net cash position
Q1 2007 change in net cash position Н ЛМК NLMK EBITDA1 748.1 Working capital change - 124.4 Non-cash2 + 34.7 Capex - 173.2 Free cash flow from operations 485.2 Proceeds from sale of investments and from disposal of assets to the company under common control + 82.2 Other finance operations3 - 127.7 I
Slide 12: Financial highlights
Financial highlights Н ЛМК NLMK Capital expenditure Depreciation 800 400 358 580 619 600 283 300 million USD million USD 400 200 203 173 108 102 200 100 74 91 0 1 0 2005 2006 Q 1 2006 Q4 2006 Q1 2007 2005 2006 Q 1 2006 Q4 2006 Q1 2007 Operating cash flow ratio1 Capital expenditure ratio (cash flow f