Severstal · RUS:CHMF
Severstal — Q1 2020 Earnings Presentation
19 slides from Severstal's earnings presentation, Apr 24, 2020
Slide 1: Q1 2020 Financial Results Presentation
Q1 2020 Financial Results Presentation 24.04.2020 1
Slide 2: Table of Contents
Table of Contents 03 Q1 2020 Results Overview 08 Divisional Performance 13 Financial Position 16 Market Outlook 17 Appendices It isunauthorized Any strictly forbidden (or appendices annexes) to disclosure copying, is strictlyhereto) use, copy,ordisclose or of distribution distribute materials the ma
Slide 3: Q1 2020 Results Overview
Q1 2020 Results Overview Any unauthorized copying, disclosure or distribution of the materials 3 contained in this document (or its annexes) is strictly prohibited.
Slide 4: Q1 2020 Group Highlights
Q1 2020 Group Highlights 01 Group revenue fell slightly by 3.3% q/q to $1,777 million (Q4 2019: $1,838 million) due to lower average sales prices for steel products which was partially offset by increased sales volumes. 02 Group EBITDA declined by 7.8% q/q to $555 million (Q4 2019: $602 million), re
Slide 5: Revenue & EBITDA divisional quarterly dynamics
Revenue & EBITDA divisional quarterly dynamics Revenue (m$) Q1 19 - Q1 20: Q1 2020 Group Revenue: $1,777m 1,966 2,151 2,102 1,806 1,770 down 3.3% q/q (Q4 2019: $1,838m); 647 609 Group revenue declined mainly due 511 402 400 to the weaker pricing environment for steel products. (446) (370) (393) (621
Slide 6: Q1 2020 vs Q1 2019 Group Highlights
Q1 2020 vs Q1 2019 Group Highlights Revenue dynamics in Q1 2020, $m EBITDA dynamics in Q1 2020, $m EBITDA to FCF bridge for Q1 2020, $m EBITDA Q1 2020 555 cash CAPEX (344) 1,777 2,031 interest paid & 663 (32) 555 other fin. cost income tax paid (41) Q1 2020 Q1 2019 Q1 2020 Q1 2019 NWC change (69) •
Slide 7: EBITDA bridge, key drivers from Q1 2019 to Q1 2020, $m
EBITDA bridge, key drivers* from Q1 2019 to Q1 2020, $m (78) 8 31 (64) (5) 663 585 2,805 555 1. 2. 3. 4. EBITDA Q1 2019 Macro factors: selling EBITDA adjusted for Sales&Marketing Steel sales volumes Balakovo disposal Operational performance EBITDA Q1 2020 prices and COS macro factors * Company estim
Slide 8: Divisional Performance
Divisional Performance Any unauthorized copying, disclosure or distribution of the materials 8 contained in this document (or its annexes) is strictly prohibited.
Slide 9: Severstal Russian Steel Q1 2020 performance
Severstal Russian Steel Q1 2020 performance 01 RSD steel product sales increased 4% q/q to 2.76 mln tonnes in Q1 2020 (Q4 2019: 2.66 mln tonnes). 02 RSD increased its share of steel export shipments to 45% (Q4 2019: 41%) responding to a seasonal slowdown in domestic demand. 03 The share of high valu
Slide 10: Severstal Resources Q1 2020 performance
Severstal Resources Q1 2020 performance 01 Coking coal concentrate sales volumes from Vorkutaugol declined 29% q/q to 0.95 mln tonnes as a result of a decrease in run-of-mine production due to the scheduled long-wall repositioning at the Komsomolskaya mine in Q1 2020. 02 Iron ore pellet sales grew 6
Slide 11: Divisional revenue structure Q1 2020 vs Q4 2019
Divisional revenue structure Q1 2020 vs Q4 2019 Group sales by region for Q1 2020, % RSD sales by region for Q1 2020, % 2% 1% 1% 2% 1% 1% 1% Russian Federation Russian Federation 7% 7% Europe Europe CIS CIS Americas 30% 29% Americas 59% The Middle East 59% Africa The Middle East Other Africa Group s
Slide 12: Divisional cost structure
Divisional cost structure Cherepovets Steel Mill production cash cost of slab, $/t Vorkutaugol (coking coal concentrate) Cost per tonne (US$/t) Average Selling Price (US$/t)* 355 346 118 335 342 331 323 334 321 322 325 88 81 81 302 306 271 259 60 78 70 78 250 206 203 221 213 Q4 2019 Q1 2020 Q1 2019
Slide 13: Financial Position
Financial Position Any unauthorized copying, disclosure or distribution of the materials contained in this document (or its annexes) is strictly prohibited. 13
Slide 14: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital Q1 2020 EBITDA to FCF reconciliation, $m 01 Q1 2020 Free Cash Flow was $54 million (Q4 2019: $101 million), primarily reflecting lower earnings, net working capital EBITDA Q1 2020 555 negative cash changes, which was partly offset by lower CAPEX q/q. cash CAPEX (344
Slide 15: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage 01 At the end of Q1 2020, cash and cash equivalents were broadly unchanged at $1,042 million (Q4 2019: $1,081 million). Robust Liquidity and Sustainable Leverage 02 Gross debt declined to $2,570 million (Q4 2019: $2,651 million) which reflected the FX effect
Slide 16: Market Outlook
Market Outlook • In Q1 2020 global steel demand was affected by the spread of COVID-19. China faced strong restrictions on economic activity in February leading to a sizable accumulation of steel inventories, but a gradual restart of activities in March supported steel market sentiment. • Whereas ra
Slide 17: Appendices
Appendices Any unauthorized copying, disclosure or distribution of the materials contained in this document (or its annexes) is strictly prohibited. 17
Slide 18: Group's financial summary
Group’s financial summary Summary Income Statement Summary Cash Flow Statement $ million, unless otherwise stated Q1 2020 Q4 2019 Q1 2020 Q1 2019 $ million Q1 2020 Q4 2019 Q1 2020 Q1 2019 Revenue 1,777 1,838 1,777 2,031 Profit before Financing and Taxation 408 457 408 540 COGS (1,099) (1,119) (1,099
Slide 19: Disclaimer
These materials are confidential and have been prepared by PAO Severstal (Severstal) solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. These materials may contain projections and o