OMZ (pref) · RUS:OMZZP
OMZ (pref) — OMZ — H1 2005 Earnings Presentation
20 slides from OMZ (pref)'s earnings presentation, November 2005
Slide 1: 2005 interim IFRS financial results
2005 interim IFRS financial results November 2005 Moscow 11
Slide 2: OMZ today
OMZ today Nuclear PP Specialty Steel Mining Manuf. Cranes and equipment Equipment Services non-core • Forgings for: rolls, • Shovels • Metallurgical • Primary circuit rotors, generators, wind- equipment • Metallurgical mill rotors (continuous casting cranes equipment: shell and • Draglines machines)
Slide 3: Income statement highlights
Income statement highlights 1H 1H $mln % % Change % Including: 2005 2004 Organic Forex Disposal Acquisition Sales 341.5 100% 175.9 100% 165.6 94% 10.6 4.8 (14.2) 164.4 Gross 60.9 18% 52.8 30% 8.1 15% (9.0) 0.9 (6.8) 23.0 profit EBITDA 30.4 9% 16.9 10% 13.5 80% (0.4) 0.1 (7.3) 21.1 EBIT 19.3 6% 11.9
Slide 4: Change in sales by segment
Change in sales by segment $mln 1H 2005 1H 2004 Change % Including: Organic Forex Disposal Acquisition NPPEQ 117.5 58.6 58.9 +101% (32.5) - (0.7) 92.1 STEEL 165.1 68.2 96.9 +142% 22.6 3.0 - 71.3 MMEQ 32.3 18.6 13.7 +74% 12.5 1.2 - - MINEQ 67.3 43.0 24.3 +57% 22.5 1.8 - - Other 22.5 54.2 (31.7) -58%
Slide 5: Reasons for sales growth
Reasons for sales growth • NPPEQ – Acquisition of Skoda JS – Organic decrease due to a) non-payment by ASE (slower advancement in percentage of completion), b) revaluation of contract profitability and c) completion of the Chinese contract • STEEL – Acquisition of Skoda Steel – Organic growth due to
Slide 6: International sales
International sales Geographic 1H 2005 1H 2004 area Russia 135.2 102.7 CIS 20.8 10.4 Asia 32.5 57.0 Europe 148.7 5.6 Other 4.3 0.2 TOTAL 341.5 175.9 % of int’l 60% 42% sales 66
Slide 7: Cost of sales
Cost of sales $mln 1H 2005 1H 2004 Change % Including: Organic Forex Disposal Acq’n (%) Sales 341.5 175.9 165.6 +94% Materials and components used 125.8 42% 78.0 51% 47.8 +61% 0.1 1.5 (3.2) 49.4 (103%) Labour costs 49.8 17% 33.0 22% 16.8 +51% 1.8 1.2 (2.0) 15.8 (94%) Gas and fuel 30.8 10% 24.4 16% 6
Slide 8: Group profitability
Group profitability Million US$ 1H 2005 1H 2004 Operating profit 20.7 13.2 Plus (minus) impairment of PP&E (1.4) (1.3) Plus depreciation & amortization 11.1 5.0 Total EBITDA 30.4 16.9 Minus depreciation & amortization (11.1) (5.0) Total EBIT 19.3 11.9 Finance income/(expense) - net (13.9) (11.9) FOR
Slide 9: Other operating income/expenses
Other operating income/expenses Million US$, note 25 1H 2005 Description Profit from sale of non-core 0.8 ZEP + other subs Change in provision for Reversal of provision for impairment of receivables and 2.9 receivables and inventory obsolete inventory Impairment (charge)/release on Uralmash (reinsta
Slide 10: Profitability by segment
Profitability by segment 1H 2005 1H 2004 $mn Gross Sales Operating Gross Operating profit EBITDA Sales EBITDA profit profit profit NPPEQ 117.5 18.2 9.5 12.1 58.6 23.2 11.9 13.0 STEEL 165.1 18.6 8.2 14.3 68.2 7.6 2.2 3.4 MMEQ 32.3 4.2 (3.2) (3.2) 18.6 1.4 (4.9) (3.7) MINEQ 67.3 18.2 11.6 11.7 43.0 11
Slide 11: Change in EBITDA by segment
Change in EBITDA by segment $mln 1H 2005 1H 2004 Change % Including: Organic Forex Disposal Acquisition NPPEQ 12.1 13.0 (0.9) -7% (11.6) (0.6) 1.0 10.3 STEEL 14.3 3.4 10.9 +321% (0.5) 0.5 - 10.9 MMEQ (3.2) (3.7) 0.5 +14% 0.4 0.1 - - MINEQ 11.7 2.1 9.6 +457% 9.4 0.2 - - Other 2.0 5.0 (3.0) -60% 1.0 -
Slide 12: Change in margins
Change in margins • NPPEQ – a) reassessment of cost to complete contracts based on growth of raw materials costs; b) revision of revenue due to changes in forward rates – Re-sale of low margin equipment • STEEL – High depreciation at Skoda Steel due to high value of non- current assets • MINEQ – Suc
Slide 13: SG&A
SG&A $mln 1H 2005 1H 2004 Change % Including: Organic Forex Disposal Acquisition Taxes 2.6 7% 3.3 8% (0.7) -21% (0.9) 0.1 - 0.1 Labour costs 21.2 56% 23.8 57% (2.6) -11% (3.0) 0.5 (2.4) 2.3 Amortization of intangibles 0.4 1% 0.4 1% - - (0.1) - (0.1) 0.2 Depreciation 0.7 2% 0.9 2% (0.2) -22% (0.4) -
Slide 14: Change in working capital
Change in working capital $mln 30/6/05 31/12/04 Change % Including: * Excl. financial and investing activities Organic Forex Disposal Acquisition Cash 33 24 9 +38% 10 (1) - - Trade receivables 248 221 27 +12% 34 (8) - 1 Advances issued 103 104 (1) -2% (2) (3) - 4 Taxes receivable 76 73 3 +4% 3 (2) -
Slide 15: Key Ratios
Key Ratios Turnover (days) 30 June 2005 31 Dec. 2004 Inventories 103 123 Trade accounts receivable 181 177 Trade accounts payable 229 207 Net WC (excl. cash) 80 122 15 15
Slide 16: Debt and interest dynamics
Debt and interest dynamics $mln 30 June’05 31 December’04 Long-term debt (incl. non-convertible 105.5 43% 97.4 44% bonds) Short-term debt 140.0 57% 122.0 56% Total debt 245.5 100% 219.4 100% Average duration of 321 days 286 days debt portfolio 16 16
Slide 17: Debt portfolio - repayment schedule as of 30 June '05
Debt portfolio - repayment schedule as of 30 June ‘05 Repayment period Amount to be repaid, million US$ Q3’05 52.3* Q4’05 28.3 Q1’06 40.3 Q2’06 49.6 Q3’06 8.6 Q4’06 5.9 Q1’07 45.5 Q2’07 6.4 Q3’07 8.6 TOTAL 245.5 ** Incl. Incl. ~$30mn ~$30mn of of 2009 2009 ruble ruble bonds bonds due due to to put-o
Slide 18: Liquidity as of 30 June '05
Liquidity as of 30 June ‘05 US$ million Cash in bank 13.8 Deposits 19.0 Unused credit lines 48.1 Unused credit limits 40.1 Total 121.0 18 18
Slide 19: Order book as of 1 October 2005
Order book as of 1 October 2005 Manuf. Services = 13% Total = US$657mn US$89mn Specialty Steel = 19% $123mn Mining Equipment = 12% US$79mn Nuclear Equipment = 56% $366mn 19 19
Slide 20: Maturity of the order book as of 1 October 2005
Maturity of the order book as of 1 October 2005 US$, mn 2005 2006 2007 2008 ’09-’14 Total MINEQ 54 25 - - - 79 NPPEQ 116 104 56 41 49 366 STEEL 74 49 - - - 123 MMEQ 52 37 - - - 89 TOTAL 296 215 56 41 49 657 20 20