Tmk · RUS:TRMK
Tmk — FY2018 Earnings Presentation
19 slides from Tmk's earnings presentation, Mar 1, 2019
Slide 1: Financial Presentation 4Q/FY 2018 IFRS Results
Financial Presentation 4Q/ FY 2018 IFRS Results March 01, 2019
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
Slide 3: 4Q/FY 2018 Summary Financial Results and Market Update
4Q/ FY 2018 Summary Financial Results and Market Update 3
Slide 4: Summary Financial Highlights
4Q 2018 vs. 3Q 2018 Summary Financial Highlights Revenue increased QoQ, reflecting higher pipe sales at the Sales increased QoQ across all divisions Russian and American divisions 8% QoQ 5% QoQ 1,200 1,500 Thousand tonnes 900 US$ mln 1,000 600 925 1,002 1,207 1,264 500 300 0 0 3Q2018 4Q2018 3Q2018 4
Slide 5: FY 2018 vs. FY 2017 Summary Financial Highlights
FY 2018 vs. FY 2017 Summary Financial Highlights Revenue increased YoY, driven by stronger results at all three Sales were up YoY across all divisions divisions 5% YoY 16% YoY 4,200 6,000 Thousand tonnes 3,600 5,000 3,000 US$ mln 4,000 2,400 3,989 3,000 1,800 3,784 5,099 2,000 4,394 1,200 600 1,000
Slide 6: Russian Market Overview
Russian Market Overview Pipe market in Russia Key considerations 4Q 2018 vs. 3Q 2018 In 4Q, the Russian pipe market declined 7% compared to Non-Energy the previous quarter due to weak seasonal demand for industrial pipe, both seamless and welded. Lower demand for industrial pipe was partially comp
Slide 7: U.S. Market Overview
U.S. Market Overview Rig count improved YoY Key considerations Oil Gas Crude Oil WTI Spot 4Q 2018 vs. 3Q 2018 2,400 120 In the U.S., drilling activity in 4Q grew slightly, with 29 more Crude oil price ($/Bbl) 2,000 100 rigs compared to the previous quarter. OCTG shipments US Rig count were down 1%
Slide 8: 4Q 2018 vs. 3Q 2018 Results
4Q 2018 vs. 3Q 2018 Results 8
Slide 9: Sales by Division and Product Group
4Q 2018 vs. 3Q 2018 Sales by Division and Product Group Sales by division Russian division sales increased QoQ, driven by higher 900 9% seamless OCTG and line pipe sales, as well as increased LDP sales Thousand tonnes 600 American division sales increased QoQ, mainly driven by higher seamless OC
Slide 10: Revenue by Division
4Q 2018 vs. 3Q 2018 Revenue by Division Revenue Revenue per tonne* 1,000 4% 2,000 0% -5% 800 1,500 -4% US$/tonne US$ mln 600 7% 1,000 1,794 1,788 400 789 822 1,441 1,520 -2% 1,148 500 1,104 200 366 341 77 75 0 0 Russia America Europe Russia America Europe 3Q2018 4Q2018 3Q2018 4Q2018 * Revenue /tonne
Slide 11: Adjusted EBITDA by Division
4Q 2018 vs. 3Q 2018 Adjusted EBITDA by Division Adjusted EBITDA Adjusted EBITDA margin 150 20% 17% 17% 16% 120 15% 15% 13% 13% 12% US$ mln 90 -5% % 10% 60 123 106 45 43 -8% 5% 30 13 12 0 0% Russia America Europe Russia America Europe 3Q2018 4Q2018 3Q2018 4Q2018 Russian division Adjusted EBITDA inc
Slide 12: FY 2018 vs. FY 2017 Results
FY 2018 vs. FY 2017 Results 12
Slide 13: FY 2018 vs. FY 2017 Sales by Division and Product Group
FY 2018 vs. FY 2017 Sales by Division and Product Group Sales by division 2% 3,200 Russian division sales increased YoY, driven mainly by higher seamless OCTG and LDP sales 2,800 2,400 An increase in OCTG and line pipe sales at the American Thousand tonnes 2,000 division reflected the continued
Slide 14: FY 2018 vs. FY 2017 Revenue by Division
FY 2018 vs. FY 2017 Revenue by Division Revenue Revenue per tonne* 4,000 9% 1,800 14% 3,600 45% 3,200 7% 2,800 1,200 2,400 US$/tonne US$ mln 1,679 2,000 36% 1,600 3,442 1,470 3,163 1,408 600 1,200 27% 1,081 1,153 971 800 989 1,349 400 242 308 0 0 Russia America Europe Russia America Europe 12M2017 1
Slide 15: FY 2018 vs. FY 2017 Adjusted EBITDA by Division
FY 2018 vs. FY 2017 Adjusted EBITDA by Division Adjusted EBITDA Adjusted EBITDA margin 5% 600 20% 17% 500 15% 15% 14% 400 12% 12% 12% US$ mln 44% 10% % 300 463 485 200 164 81% 5% 114 100 51 28 0 0% Russia America Europe Russia America Europe 12M2017 12M2018 12M2017 12M2018 Adjusted EBITDA in the R
Slide 16: Seamless – Core to Profitability
Seamless – Core to Profitability US$ mln QoQ, YoY, FY 2018 gross profit breakdown 4Q2018 12M2018 (unless stated otherwise) % % Sales - Pipes, kt 738 22% 2,743 3% Other operations Welded 3% 7% Revenue 950 18% 3,550 15% SEAMLESS Gross profit 221 15% 824 13% Margin, % 23% 23% Avg revenue/tonne (US$) 1,
Slide 17: Debt Maturity Profile as at December 31, 2018
Debt Maturity Profile as at December 31, 2018 As at December 31, 2018, Net Debt stood at 700 663 US$ 2,437 mln EUR RUB In January 2018, TMK fully redeemed the remaining part of its US$500 mln 7-year 600 USD Eurobond issue in the total nominal value of US$231 mln 500 The weighted average nomina
Slide 18: Outlook and Trends
Outlook and Trends In Russia, TMK expects pipe consumption by domestic oil and gas companies to remain strong in 2019, with higher demand for high tech products to be driven by the increased complexity of hydrocarbon production projects. In the U.S., the rig count continued to grow in 2018 drivi
Slide 19: TMK Investor Relations
TMK Investor Relations 40/2a, Pokrovka Street, Moscow, 105062, Russia +7 (495) 775-7600 [email protected]