Tmk · RUS:TRMK
Tmk — H1 2019 Earnings Presentation
19 slides from Tmk's earnings presentation, Aug 16, 2019
Slide 1: Financial Presentation: 2Q / 1H 2019 IFRS Results
Financial Presentation 2Q / 1H 2019 IFRS Results August 16, 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: 2Q / 1H 2019 Summary Financial Results and Market Update
2Q / 1H 2019 Summary Financial Results and Market Update 3
Slide 4: Summary Financial Highlights
2Q 2019 vs. 1Q 2019 Summary Financial Highlights Sales were up QoQ, mainly due to higher sales at the Russian Revenue was higher QoQ, mainly due to a stronger division performance at the Russian division +5% QoQ 1,500 +4% QoQ 1,200 Thousand tonnes US$ mln 900 1,000 600 1,257 1,307 978 1,031 500 300
Slide 5: 1H 2019 vs. 1H 2018 Summary Financial Highlights
1H 2019 vs. 1H 2018 Summary Financial Highlights Revenue declined YoY, mainly due to a lower revenue at the Sales declined YoY, mainly due to lower sales at the American American division. This was partially compensated by higher division, which was partially compensated by higher sales at revenue a
Slide 6: Russian Market Overview
Russian Market Overview Pipe market in Russia Key considerations 12 2Q 2019 vs. 1Q 2019 10 The Russian pipe market grew 9% compared to the Non-Energy previous quarter, driven by seasonal demand for industrial 8 pipe and by higher large diameter pipe consumption Mln tonnes 6 The Russian OCTG mark
Slide 7: U.S. Market Overview
U.S. Market Overview Rig count Key considerations 2Q 2019 vs. 1Q 2019 2,400 Oil Gas Crude Oil WTI Spot 120 In the U.S., OCTG consumption in 2Q 2019 was weaker compared to 1Q 2019, due to a slowdown in drilling activity, Crude oil price ($/Bbl) 2,000 100 US Rig count with the average number of rigs
Slide 8: 2Q 2019 vs. 1Q 2019 Results
2Q 2019 vs. 1Q 2019 Results 8
Slide 9: Sales by Division and Product Group
2Q 2019 vs. 1Q 2019 Sales by Division and Product Group Sales by division Strong QoQ sales at the Russian division were driven 10% mainly by higher sales of large diameter pipe 900 American division sales decreased QoQ, mainly as a Thousand tonnes 600 result of lower OCTG sales, due to the slowd
Slide 10: Revenue by Division
2Q 2019 vs. 1Q 2019 Revenue by Division Revenue Revenue per tonne* 10% 2% 1,000 2,000 -7% 800 1,500 0% US$/tonne US$ mln 600 1,000 970 1,794 1,830 885 -9% 400 1,361 1,265 -11% 1,167 1,165 500 200 302 274 70 63 0 0 Russia America Europe Russia America Europe 1Q2019 2Q2019 1Q2019 2Q2019 * Revenue /ton
Slide 11: Adjusted EBITDA by Division
2Q 2019 vs. 1Q 2019 Adjusted EBITDA by Division Adjusted EBITDA Adjusted EBITDA margin 21% 150 20% 17% 16% 120 15% 13% 12% US$ mln 90 166 10% % 10% 137 60 -31% 8% -1% 30 5% 30 21 8 8 0 0% Russia America Europe Russia America Europe 1Q2019 2Q2019 1Q2019 2Q2019 Russian division Adjusted EBITDA incre
Slide 12: 1H 2019 vs. 1H 2018 Results
1H 2019 vs. 1H 2018 Results 12
Slide 13: 1H 2019 vs. 1H 2018 Sales by Division and Product Group
1H 2019 vs. 1H 2018 Sales by Division and Product Group Sales by division 2,000 Russian division sales increased YoY, driven mainly by 2% higher sales of large diameter pipe and seamless OCTG 1,600 pipe Thousand tonnes Sales volumes at the American division decreased YoY 1,200 due to the lower O
Slide 14: 1H 2019 vs. 1H 2018 Revenue by Division
1H 2019 vs. 1H 2018 Revenue by Division Revenue Revenue per tonne* 1% 2,000 2,000 15% 1,600 -2% 1,500 -1% 1,200 US$/tonne US$ mln 1,811 1,000 1,831 1,855 -10% 800 1,571 1,343 1,314 -14% 1,179 1,166 500 400 642 576 155 133 0 0 Russia America Europe Russia America Europe 1H2018 1H2019 1H2018 1H2019 *
Slide 15: 1H 2019 vs. 1H 2018 Adjusted EBITDA by Division
1H 2019 vs. 1H 2018 Adjusted EBITDA by Division Adjusted EBITDA Adjusted EBITDA margin 350 18% 20% 300 16% 17% 15% 14% 250 12% 12% US$ mln 200 10% % 9% 150 303 -33% 256 100 -36% 75 5% 50 50 26 16 0 0% Russia America Europe Russia America Europe 1H2018 1H2019 1H2018 1H2019 Adjusted EBITDA in the Ru
Slide 16: Seamless – Core to Profitability
Seamless – Core to Profitability US$ mln QoQ, YoY, 1H 2019 gross profit breakdown 2Q2019 1H2019 (unless stated otherwise) % % Sales - Pipes, kt 690 1% 1,375 -2% Welded 11% Revenue 906 1% 1,804 0% SEAMLESS Gross profit 217 2% 429 5% Margin, % 24% 24% Avg revenue/tonne (US$) 1,314 0% 1,313 2% Avg gros
Slide 17: Debt Maturity Profile as at June 30, 2019
Debt Maturity Profile as at June 30, 2019 800 Net debt increased from $2,437 million as at December EUR 31, 2019 to $2,641 million as at June 30, 2019, mainly as 707 a result of the Russian rouble appreciation against the US RUB 700 dollar USD Net repayment of borrowings in 1H 2019 amounted to $
Slide 18: Outlook and Trends
Outlook and Trends In Russia, TMK expects pipe consumption by domestic oil and gas companies to remain stable in 2019. The increased complexity of hydrocarbon production projects in Russia is expected to result in higher demand for high tech products. TMK anticipates EBITDA at the Russian division
Slide 19: TMK Investor Relations
TMK Investor Relations 40/2a, Pokrovka Street, Moscow, 105062, Russia +7 (495) 775-7600 [email protected]