Tmk · RUS:TRMK

Tmk — Q3 2012 Earnings Presentation

18 slides from Tmk's earnings presentation, 2012

  1. Slide 1: TMK Financial Presentation 3Q and 9M 2012 IFRS Results

    PROPRIETARY & CONFIDENTIAL TMK Financial Presentation 3Q and 9M 2012 IFRS Results

  2. 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

  3. Slide 3: 3Q 2012 Sales by Division and Group of Product

    3Q 2012 Sales by Division and Group of Product 3Q 2012 Sales by Division -2%  Russian division sales decreased QoQ mainly due to lower 840 seamless sales caused by major repairs at several Russian plants 720 Thousand tonnes 600  American division sales declined QoQ as a result of lower welded pipe

  4. Slide 4: 9M 2012 Sales by Division and Group of Product

    9M 2012 Sales by Division and Group of Product 9M 2012 Sales by Division -2% 2,400  Russian division sales slightly decreased YoY mainly due to lower welded pipe volumes as a result of a decline in LD pipe Thousand tonnes sales 1,800  American division sales increased YoY mainly due to higher 1,20

  5. Slide 5: 3Q 2012 and 9M 2012 Summary Financial Highlights

    3Q 2012 and 9M 2012 Summary Financial Highlights Revenue 3Q12: -9% QoQ 9M12: -2% YoY  3Q 2012 revenue decreased QoQ primarily due to lower 1,800 5,600 seamless volumes, unfavorable changes in pricing and sales 1,500 4,800 mix and the impact of currency translation 4,000 U.S.$ mln U.S.$ mln 1,200 3,

  6. Slide 6: 3Q 2012 Revenue by Division

    3Q 2012 Revenue by Division 3Q 2012 Revenue 3Q 2012 Revenue per Tonne* 1,400 +2% -4% -9% 2,000 1,200 -6% 1,600 1,000 U.S.$ mln U.S.$ 800 1,200 1,997 1,924 1,237 1,889 1,917 600 -8% 1,132 800 1,516 1,420 400 -22% 400 200 448 410 96 75 0 0 Russia Americas Europe Russia Americas Europe 2Q2012 3Q2012 2Q

  7. Slide 7: 9M 2012 Revenue by Division

    9M 2012 Revenue by Division 9M 2012 Revenue 9M 2012 Revenue per Tonne* 4,000 -5% 2,400 -10% 3,500 +5% 3,000 1,800 -3% U.S.$ mln 2,500 U.S.$ 2,000 1,200 3,704 3,501 2,174 +13% 1,964 1,500 1,778 1,875 1,553 1,501 1,000 600 1,298 -14% 500 1,150 298 257 0 0 Russia Americas Europe Russia Americas Europe

  8. Slide 8: 3Q 2012 Adjusted EBITDA by Division vs. Prior Quarter

    3Q 2012 Adjusted EBITDA by Division vs. Prior Quarter 3Q 2012 Adjusted EBITDA 3Q 2012 Adjusted EBITDA per Tonne -7% 210 400 -26% 180 350 -32% 150 300 -4% U.S.$ mln 250 U.S.$ 120 204 200 90 190 362 -39% 150 289 250 268 60 239 100 197 68 -40% 30 50 42 17 10 0 0 Russia Americas Europe Russia Americas E

  9. Slide 9: 9M 2012 Adjusted EBITDA by Division vs. Prior Year

    9M 2012 Adjusted EBITDA by Division vs. Prior Year 9M 2012 Adjusted EBITDA 9M 2012 Adjusted EBITDA per Tonne 600 No change -16% 400 500 350 -9% 300 +2% 400 U.S.$ mln 250 U.S.$ 300 572 571 -2% 200 387 150 311 326 200 284 240 245 -20% 100 100 201 196 50 53 43 0 0 Russia Americas Europe Russia Americas

  10. Slide 10: Seamless – Core to Profitability

    Seamless – Core to Profitability U.S.$ mln QoQ, YoY, 3Q 2012 9M 2012 (unless stated otherwise) % %  Sales of seamless pipes Volumes- Pipes, kt 604 -9% 1,876 +6% generated 61% of total Revenue in 3Q 2012 and 62% of total Net Sales 993 -8% 3,136 +7% Revenue in 9M 2012 SEAMLESS Gross Profit 240 -16% 8

  11. Slide 11: Working Capital Position

    Working Capital Position Accounts Receivable (days) Accounts Payable (days) 100 94 120 107 80 100 80 75 60 56 56 54 65 50 64 60 50 40 40 20 20 0 0 2008 2009 2010 2011 9M 2012 2008 2009 2010 2011 9M 2012 LTM LTM Inventories (days) Cash Conversion Cycle (days) 140 132 119 120 120 100 90 91 95 84 100 9

  12. Slide 12: Debt Profile

    Debt Profile TMK Continues to Optimize its Capital Structure and Develop a Flexible, Cost-effective Debt Portfolio Maturity Profile as September 30, 2012  As of September 30, 2012, total financial debt accounted for 900 870 U.S.$3,816 mln  76% of total financial debt is long-term 800  29% of Tota

  13. 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.$26 mln Remaining Investment: U.S.$ 97 mln Timing: Building Completed in 2011 The in-house R&D Center Project Launch: 2013 Final test equipment will allow for significan

  14. Slide 14: Appendix – Summary Financial Accounts

    Appendix – Summary Financial Accounts 14

  15. Slide 15: TMK Income Statement

    TMK Income Statement U.S.$ mln 2011 2010 2009 2008 2007 Revenue 6,754 5,579 3,461 5,690 4,179 Cost of Sales (5,307) (4,285) (2,905) (4,252) (2,891) Gross Profit 1,446 1,293 556 1,438 1,288 Selling and Distribution Expenses (411) (403) (313) (344) (238) General and Administrative Expenses (283) (232)

  16. Slide 16: TMK Statement of Financial Position

    TMK Statement of Financial Position U.S.$ mln 31-Dec-11 31-Dec-10 31-Dec-09 31-Dec-08 31-Dec-07 ASSETS Cash and Bank Deposits 231 158 244 143 89 Accounts Receivable 772 720 580 758 541 Inventories 1,418 1,208 926 1,176 782 Prepayments 200 172 223 213 238 Other Financial Assets 4 4 4 4 - Total Curren

  17. Slide 17: TMK Cash Flow

    TMK Cash Flow U.S.$ mln 2011 2010 2009 2008 2007 Profit / (Loss) before Income Tax 544 185 (427) 308 699 Adjustments for: Depreciation and Amortisation 336 301 313 248 140 Net Interest Expense 271 412 406 263 90 Others (101) 44 36 228 (9) Working Capital Changes (156) (527) 558 (81) (386) Cash Gener

  18. Slide 18: Thank You

    Thank You TMK Investor Relations 40/2a, Pokrovka Street, Moscow, 105062, Russia +7 (495) 775-7600 [email protected] 18

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