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Investor PresentationSeptember 2012
DisclaimerThis document does not constitute or form part of and should not be construed as, an offer to sell or issue or t...
Agenda  HSE Performance  Overview of H1 2012 Results  Liquidity and Financial Position  Operations by Segment  Update...
HSE Performance    Increase in LTIFR and FIFR vs. H1 2011                                                             Los...
Overview of H1 2012 Results
H1 2012 summaryUS$ million unless otherwise stated                                                                        ...
H1 2012 financial highlights                                                                   Consolidated revenue by seg...
Net profit reconciliation            $m       20                                                                   62     ...
Group cost dynamics   EVRAZ benefits from high level of vertical integration in iron ore and coking coal   Costs positiv...
Liquidity and Financial Position
Liquidity and debt maturity profile       Total debt of $7,833m as of 30 June 2012, having increased as a result of drawi...
FCF Generation     Free cash flow generation of $362m     Further release of working capital achieved          1,175    ...
Operations by Segment
Steel: CIS   Full economic utilisation of Russian steelmaking capacity            Steel product sales, domestic vs. expor...
Steel: North America   Demand in North America has remained strong and steel product sales were stable   We have success...
Steel: Europe, South Africa    H1 2012 EBITDA of European operations was $6m despite                Steel product sales v...
Mining: Coal   Sales of coal products in H1 2012 decreased vs. H1 2011                                                   ...
Mining: Iron ore      In H1 2012 total sales (intersegment and external) of iron ore products were 9.3 mt (-7.6% vs H1 20...
Vanadium   EVRAZ’s external sales of vanadium products decreased vs.           Ferrovanadium prices (FeV), $/kg contained...
Update on Investment Projects
Key Investment Projects                                                                            Cumulative CAPEX by   C...
Capex dynamics      $m    1,400                                                                                           ...
Key Market Developments andOutlook
Recent market developments  Full utilisation of Russian steel making capacities continues        EVRAZ selling prices, $/...
Outlook  Global markets remain volatile resulting in ongoing uncertainty and low visibility in EVRAZ’s key      markets ...
Summary  H1 2012 results reflect worsening pricing environment for our products  Continued investment in growth projects...
Appendix
Global operating model                                                                                                    ...
Revenue: geographic breakdown                                   H1 2011                                                   ...
Steel products: sales by market     Kt                                                                                    ...
Resilient and profitable asset base  EBITDA, EVRAZ Russia, $m                                                             ...
Cost Structure by SegmentCost structure of Steel segment, $m                                             Cost structure of...
EBITDAUS$ million                                                        Six months ended 30 June                         ...
Net debtUS$ million                                                             30 June 2012    31 December               ...
London +44 207 832 8990Moscow +7 495 232 1370IR@evraz.comwww.evraz.com
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  1. 1. Investor PresentationSeptember 2012
  2. 2. DisclaimerThis document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities ofEVRAZ plc (“EVRAZ”) or any of its subsidiaries in any jurisdiction (including, without limitation, EVRAZ Group S.A.) (collectively, the “Group”) or an inducement toenter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract orcommitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on,the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of EVRAZ, the Group or any of its affiliates, advisorsor representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents orotherwise arising in connection with the document.This document contains “forward-looking statements”, which include all statements other than statements of historical facts, including, without limitation, anystatements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or similarexpressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond theGroup’s control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance orachievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergyof recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russianeconomic, political and legal environment, volatility in stock markets or in the price of the Group’s shares or GDRs, financial risk management and the impact ofgeneral business and global economic conditions.Such forward-looking statements are based on numerous assumptions regarding the Group’s present and future business strategies and the environment in whichthe Group will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend oncircumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and each of EVRAZand the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein toreflect any change in EVRAZ’s or the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statementsare based.Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document.The information contained in this document is provided as at the date of this document and is subject to change without notice.Investor Presentation, September 2012 1
  3. 3. Agenda  HSE Performance  Overview of H1 2012 Results  Liquidity and Financial Position  Operations by Segment  Update on Investment Projects  Key Market Developments and OutlookInvestor Presentation, September 2012 2
  4. 4. HSE Performance Increase in LTIFR and FIFR vs. H1 2011 Lost Time Injury Frequency Rate (LTIFR) Safety remains a key priority 0.94 Key ongoing safety initiatives: 0.81  Contractor safety management  Fall prevention (follow 6S project)  PPE (Personal Protective Equipment)  Improvement in workplace conditions  Tests for drugs and alcoholic intoxication  Internal safety training Key ongoing environmental initiatives: H1 2011 H1 2012  Water use: Wastewater dumping reduction programme (ZSMK, NTMK, Yuzhkuzbassugol, Evrazruda, DMZP); Fatal Injury Frequency Rate (FIFR)  Air emissions: Air protection equipment upgrade (ZSMK, DMZ, Claymont);  Waste management: Waste recycling and reuse 2.02 programmes (ZSMK,NTMK, Vanady Tula) 1.85 H1 2011 H1 2012 * Calculated as the total number of work-related injuries (which resulted in the loss of work time) – LTIFR or fatalities – FIFR/total number of working hours during the period x 1,000,000Investor Presentation, September 2012 3
  5. 5. Overview of H1 2012 Results
  6. 6. H1 2012 summaryUS$ million unless otherwise stated H1 2012 H1 2011 Change Revenue 7,619 8,380 (9)% EBITDA1 1,175 1,629 (28)% EBITDA margin 15.4% 19.4% (21)% Net profit/(loss) (50) 263 (119)% Dividends for the period (cents/ordinary share) 11c 6.7c 64% Operating cash flow 1,089 1,594 (32)% Capex 565 462 22% Net debt2 6,070 6,442 (6)% Short-term debt2 1,550 626 148% Steel sales volumes3 (‘000 t) 7,713 7,946 (3)%1 EBITDA represents profit from operations plus depreciation, depletion and amortisation, impairment of assets, foreign exchange loss (gain) and loss (gain) on disposal of property, plant and equipment and intangible assets2 As at 30 June 2012 and 31 December 2011 respectively; short-term debt includes current portion of finance lease liabilities, including lease liabilities directly associated with disposal groups classified as held for sale3 Here and throughout this presentation segment sales data refer to external sales unless otherwise statedInvestor Presentation, September 2012 5
  7. 7. H1 2012 financial highlights Consolidated revenue by segment, $m The major factor of the decrease in revenue was reduced steel sales volumes and prices 8,380 482 Decrease in revenues and EBITDA was also 320 541 7,619 2,040 263 a result of lower Mining segment contribution 1,383 Other operations because of lower raw materials volumes and Vanadium prices 7,492 Mining 7,019 Steel Eliminations (1,954) (1,587) H1 2011 H1 2012Revenue drivers, $m Consolidated EBITDA by segment*, $m 1,629 8,380 80 7,619 1,175 (437) Vanadium & Other 962 (324) 98 operations Mining 417 Steel Unallocated & 744 699 Eliminations (157) (39) H1 2011 Revenue Volumes Prices H1 2012 Revenue H1 2011 H1 2012 * Vanadium & Other operations consists in H1 2011 of $(3)m Vanadium segment EBITDA and $83m of Other operations EBITDA and in H1 2012 of $4m and $94m respectivelyInvestor Presentation, September 2012 6
  8. 8. Net profit reconciliation $m 20 62 12 10 0 -10 -20 -30 -40 -50 (50) -60 Reported Net loss Special item: impairment due to reduced pricing outlook Net profit w/o special itemsInvestor Presentation, September 2012 7
  9. 9. Group cost dynamics  EVRAZ benefits from high level of vertical integration in iron ore and coking coal  Costs positively impacted by rouble devaluation (more than 50% of the costs are rouble-denominated)  Steel segment costs benefited from lower raw materials prices: costs of raw materials accounted for 45% of Steel segment revenues in H1 2012 vs. 51% in H1 2011  Implementation of cost saving technologies (e.g. PCI), further development of own power generation, progress of Lean project are expected to help mitigate negative impact of growing energy, transportation and labour costsConsolidated cost of revenues by cost elements Cash Cost*, Slabs & Billets, $/t H1 2012, % H1 2011, % 479 of total CoR of total CoR 437 448 426 35% 40% 411 410 403Raw materials, including 378 Iron ore 6% 8% 350 438 415 401 Coking coal 9% 12% 298 395 379 356 369 372 Slabs Scrap 14% 14% 333 Other raw materials 6% 6% 280 BilletsSemi-finished products 4% 6%Transportation 6% 7%Staff costs 14% 13%Depreciation 10% 7%Electricity 5% 5% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12Natural gas 4% 4%Other costs 22% 18% * Average for Russian steel mills, integrated cash cost of production, EXW Source: Management accountsInvestor Presentation, September 2012 8
  10. 10. Liquidity and Financial Position
  11. 11. Liquidity and debt maturity profile Total debt of $7,833m as of 30 June 2012, having increased as a result of drawing on available credit lines to increase the cash balance Cash and cash equivalents totalled $1,763m ($801m as at 31 December 2011) $600m 5-year notes issued in April 2012 at 7.4% rate Net debt - $6,070m (6% decrease vs. 31 December 2011) Amendments to financial covenants in syndicated loan facilities provide greater financial flexibility Long-term target net leverage ratio of below 2xDebt cost* and average maturity Debt** maturities schedule (as at 30 June 2012), $m 8 5 7.8 4.8 2,000 1,875 7.6 4.6 7.4 4.4 1,400 Q4 7.2 4.2 1,500 1,373 Q3 7 4 1,124 981 Q2 6.8 3.8 1,000 Q1 6.6 3.6 630 500 414 6.4 3.4 6.2 3.2 36 6 3 0 31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 2012 2013 2014 2015 2016 2017 2018 2019- 2023 % Years* Weighted average cost of debt** Principal debt (excl. interest payments)Investor Presentation, September 2012 10
  12. 12. FCF Generation  Free cash flow generation of $362m  Further release of working capital achieved 1,175 91 $m 1,132 1,089 (43) (134) (233) 92 362 (21) (565) EBITDA H1 Non-cash items EBITDA (excl. Changes in Income tax paid Cash flows from Net interest paid Capex CF from Collateral under Free cash flow 2012 non-cash items) working capital operating (incl. realised investing swaps (excl. income activities gain on swaps & activities tax) covenants reset (excl.capex and costs) interest received)* Free cash flow comprises cash flows from operating activities less interest paid and cash flows used investing activitiesInvestor Presentation, September 2012 11
  13. 13. Operations by Segment
  14. 14. Steel: CIS  Full economic utilisation of Russian steelmaking capacity Steel product sales, domestic vs. export, Kt maintained  Overall steel product sales were flat y-o-y with higher sales 5,541 5,586 of construction products  Rail sales volumes were negatively affected by planned 5- 32% 33% month stoppage of the ZSMK rail mill for modernisation since April (production expected to recommence in October) Export  Prices of steel products remained flat or decreased over the Domestic period in response to lower raw material prices 68% 67%  Prices for construction steel in the domestic market slightly increased from May 2012 due to seasonal improvement in the construction market H1 2011 H1 2012Steel product sales volumes, Kt Steel product revenues 5,541 5,586 512 539 Revenue, $m Revenue, $/tonne 813 788 Products H1 2011 H1 2012 H1 2011 H1 2012 Other Semi-finished 1,159 1,028 630 607 2,378 2,566 Railway Construction 1,833 1,933 771 753 Construction Semi-finished Railway 734 720 903 914 1,838 1,693 Other 422 410 824 761 Total 4,148 4,091 749 732 H1 2011 H1 2012Investor Presentation, September 2012 13
  15. 15. Steel: North America  Demand in North America has remained strong and steel product sales were stable  We have successfully expanded into high value added products (head hardened rails, premium connection OCTG tubes, heat treated seamless pipe)  Record high steel output and sales of rails in H1 2012  Rail quality improvement project is on track  The expansion to the heat treatment facility in Calgary commenced  The Portland spiral mill returned to operation after having been idle for 3 yearsSteel product sales volumes, Kt Steel product revenue 1,321 1,314 Revenue, US$m Revenue, $/tonne Products 403 371 H1 2011 H1 2012 H1 2011 H1 2012 Tubular Construction & other 534 Flat-rolled steel products 153 140 927 909 511 Railway Railway 249 266 1,029 1,043 Flat-rolled 578 571 1,131 1,069 242 255 Construction & other steel Tubular 589 579 1,461 1,561 165 154 Total 1,569 1,556 1,188 1,184 H1 2011 H1 2012Investor Presentation, September 2012 14
  16. 16. Steel: Europe, South Africa  H1 2012 EBITDA of European operations was $6m despite Steel product sales volumes, the weak economic environment European operations, Kt  The loss making heavy section mill at EVRAZ Vitkovice 740 Steel was shut down effective from February 2012 109  EVRAZ Highveld launched an optimisation programme to 543 38 reduce fixed costs  Improved working shift schedules in South Africa are Other 631 expected to result in increased workplace safety, reduced 505 Flat-rolled overtime and higher productivity H1 2011 H1 2012 Steel product sales volumes,Steel product revenues South African operations, Kt Revenue, $m Revenue,$/tonne 343 H1 2011 H1 2012 H1 2011 H1 2012 52 European operations 270 Flat-rolled 598 398 948 788 35 Other 104 37 954 974 183 Other Total 702 435 949 801 145 Flat-rolled South African operations Construction Construction 89 71 824 789 108 90 Flat-rolled 159 121 869 834 Other 36 23 692 657 H1 2011 H1 2012 Total 284 215 828 796Investor Presentation, September 2012 15
  17. 17. Mining: Coal  Sales of coal products in H1 2012 decreased vs. H1 2011 Coal product sales, Kt due to  lower steam coal volumes mined as a result of longwall 4,175* repositionings at both steam coal mines in Q1 2012 1,295 3,014  decreased volumes of external raw coal and increased 834 consumption of own coal in production of coal External sales concentrate 2,880 Intersegment sales 2,179  A debottlenecking programme at Yuzhkuzbassugol was launched to stabilise and improve mine production  Coal mine projects (Yerunakovskaya VIII and Mezhegey H1 2011 H1 2012 Phase 1) are proceeding as planned * For comparability the number excludes 767 Kt of raw coal purchased by Trading Company EvrazHolding from market and Raspadskaya for supply to EVRAZ steel millsWashed coking coal (concentrate) self-coverage, Kt Cash cost, Russian washed coking coal, $/t 90% 80% 88% 71% 96% 98 4,053 4,021 3,850 3,775 3,868 3,722 3,642 3,402 81 79 3,229 70 70 73 2,665 1,066 67 1,451 723 998 62 831 52 246 45 2,506 2,404 1,834 2,656 1,945 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 Consumption Production excl. Production by Raspadskaya Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 closed and closed and production disposed mines disposed minesNote. (1) Self-coverage, %= total production (plus 40% of Raspadskaya production on pro rata basis) divided by total steel segment consumption(2) Self-coverage excl. 40% Raspadskaya share: H1 2010 – 54%, H2 2010 – 62%, H1 2011 – 62%, H2 2011 – 49%, H1 2012 – 69%Investor Presentation, September 2012 16
  18. 18. Mining: Iron ore  In H1 2012 total sales (intersegment and external) of iron ore products were 9.3 mt (-7.6% vs H1 2011) due to decreased use of external raw iron ore in concentrate production in 2012 and destocking at Sukha Balka in H1 2011  Cash costs decreased in line with rouble depreciation  In H1 2012, EVRAZ Russian iron ore operations achieved total $17.5m positive economic effects through operational improvements  The project to increase EVRAZ KGOK’s capacity to 55 Mtpa of raw ore is expected to be completed in December 2012  Feasibility study and project documentation were completed to develop the Sobstvenno-Kachkanarskoye ore deposit at EVRAZ KGOK and the project is proceeding as planned  Major reconstruction of Sheregesh mine at Evrazruda was launched to increase production 2.5 times to 4.8 Mtpa by 2016 Iron ore self-coverage*, Kt Cash cost, Russian iron ore products (Fe 58%), $/t 90% 102% 99% 106% 101% 10,635 10,455 10,389 80 9,981 10,232 75 73 71 69 70 64 10,191 10,355 10,814 10,462 9,608 56 57 54 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Consumption Production* Self-coverage, %= total production divided by total steel segment consumptionInvestor Presentation, September 2012 17
  19. 19. Vanadium  EVRAZ’s external sales of vanadium products decreased vs. Ferrovanadium prices (FeV), $/kg contained V H1 2011 by 17% to $251m, primarily due to lower prices  As a result of operational improvements EVRAZ Vanady-Tula achieved record productivity levels of 40 tonnes of V2O5/day during H1 2012, a 15% improvement compared to production 31.1 30.9 rates in 2010 30.2 30.4 30.0 29.5  EVRAZ Stratcor vanadium plant in Arkansas launched use 28.9 28.6 28.1 of EVRAZ’s own vanadium slag, to increase synergy levels 27.5 26.0 26.1 25.7 25.6 within EVRAZ 25.3 25.6 24.5 24.2 23.0 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Source: LMBFinished Vanadium product sales volumes, t Vanadium product revenues by region, $m 4 23 9,624 9,599 24 Russia & CIS Europe Americas 117 83 Asia Africa & RoW H1 2011 H1 2012Investor Presentation, September 2012 18
  20. 20. Update on Investment Projects
  21. 21. Key Investment Projects Cumulative CAPEX by CAPEX in CAPEX in Total CAPEX 30.06. 2012 H1 2012 H2 2012,Project $m $m $m $m Project Targets Project Targets Project targetsCoal ore & coalIron & iron ore o Coal production of 2 mtpaYerunakovskava VIII mine construction 390 81 47 150 o Start in Q1 2013, full capacity to be reached in Q1 2014 o Maintaining self-sufficiency in high-quality hard coking coal afterDevelopment of Mezhegey coal deposit depletion of existing deposits 190 23 18 25(Tyva, Russia) o On-stream Q4 2013, reaching full capacity by Q4 2014 o Iron ore production to be increased to 55 mtpaExpansion of Kachkanar mine 76 60 13 14 o On-stream by end 2012Steel o Capacity of 950k tonnes of high-speed rails, including 450kReconstruction of rail mill at EVRAZ ZSMK 490 366 84 113 tonnes of 100 metre rails(former NKMK) o On-stream in Q4 2012 o Production of higher-quality railsReconstruction of rail mill at EVRAZ NTMK 60 60 4 0 o 550k tonnes capacity o On-stream in Q2 2012 o 20% lower coke consumptionPulverised coal injection (PCI) o Save annually up to 650 mcm of natural gas at NTMK and up to 320 218 55 79at EVRAZ NTMK and EVRAZ ZSMK 600 mcm at ZSMK o On-stream by Q1 2013 and Q2 2013 respectivelyReconstruction of mechanical area at o Production of higher-quality wheels 40 25 3 8EVRAZ NTMK wheel & tyre mill o Start production in Q1 2013; full capacity in Q2 2013Construction of Yuzhny and Kostanay o Capacity: 450 ktpa of construction products each mill 260 93 34 60rolling mills o On-stream by mid-2013 Final stage of completion In progress Under considerationInvestor Presentation, September 2012 20
  22. 22. Capex dynamics $m 1,400 1,281 1,200 1,103 1,000 H2 2012 capex 832 800 expected in the range of 600 565 $650-750m 441 400 200 - 2008 2009 2010 2011 H1 2012 Maintenance, Steel and other operations** Iron ore mine development Coal mine development * Investment projects * Investment into maintaining and developing mining volumes, such as preparation of coal seamsInvestor Presentation, September 2012 21
  23. 23. Key Market Developments andOutlook
  24. 24. Recent market developments  Full utilisation of Russian steel making capacities continues EVRAZ selling prices, $/t  Utilisation of non-Russian steelmaking capacities in 1,200 September: 1,100 1,000 ◦ EVRAZ North America: 90% 900 800 ◦ EVRAZ Highveld: 60% 700 ◦ EVRAZ Vitkovice Steel: 76% 600 500  Low inventories across EVRAZ operations 400 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12  EVRAZ order book (external sales) currently represents1.1 Slabs, Russia, export* Billets, Russia, export* month’s production on average Rebars, Russia, FCA Plate, North America, FCA  Construction product prices slightly increased in August due to seasonal improvement in the Russian construction market Raw material prices (domestic markets), $/t  Export prices of semi-finished products decreased in July- 450 400 August vs. Q2 350  Iron ore and coking coal concentrate prices have been flat In 300 250 July-August on June levels 200 150  Ferrovanadium prices in Q3 2012 are at the level of 24.5 100 $/kg of contained Vanadium, slightly down from Q2 2012 50 0 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Scrap, Russia, CPT Scrap, USA, CPT Iron ore concentrate, Russia, ExW Coking coal concentrate, Russia, FCAInvestor Presentation, September 2012 23
  25. 25. Outlook  Global markets remain volatile resulting in ongoing uncertainty and low visibility in EVRAZ’s key markets  Capacity utilisation remains high, finished goods inventories at our mills and sales network are low  We expect our steel production volumes in Q3 2012 to be broadly in line with Q2 2012  Capex in H2 2012 is expected at $650-750m but we retain flexibility  Net leverage ratio expected to increase at year end (within the limits set by our covenants) before decreasing in 2013 as the benefits of the investment programme are realisedInvestor Presentation, September 2012 24
  26. 26. Summary  H1 2012 results reflect worsening pricing environment for our products  Continued investment in growth projects to bear fruit in the short-medium term  Stable debt and liquidity position following continued focus on refinancing  Outlook for H2 2012 remains challengingInvestor Presentation, September 2012 25
  27. 27. Appendix
  28. 28. Global operating model 150 Russia/CIS 1,313 100 3,730 529 Europe 122 580 1,717 North America Asia 231 H1 2012 steel sales volume South America Africa H1 2012 steel sales volume by geography by product Africa and RoW Other 4% Tubular 4% 5% Semi- finished Asia Russia & CIS Steel mills 22% 22% Flat-rolled 48% Iron ore mining 18% Coal mining Vanadium Americas Railway Construction 17% Sea ports 14% 37% Europe 8% Mezhegey coal mine in development # Third party steel products sales* (Kt), H1 2012 # Internal supply of slabs and billets from Russian steel mills (Kt) * Excluding routes with sales volumes below 50kt each, together totalling 93ktInvestor Presentation, September 2012 27
  29. 29. Revenue: geographic breakdown H1 2011 H1 2012 Africa & Africa & Other RoW RoW Asian Other Asian 3% 3% 7% 9% Thailand 4% China Thailand 1% 3% China Middle East 1% Russia 3% 41% Middle East Russia 2% 40% Europe Europe 13% 10% Ukraine Americas Ukraine Americas 3% 4% 24% 22% Other CIS Other CIS 3% 4%Investor Presentation, September 2012 28
  30. 30. Steel products: sales by market Kt $m Kt 3,331 3,331 3,324 3,324 2,661 2,604 1,732 1,732 1,586 1,586 1,652 1,582 1,441 1,441 1,345 1,345 1,015 1,068 858 858 758 632 632 431 406 431 406 492 300 275 300 275 359 336 257 214 Russia Russia CIS CIS Europe Europe Americas Americas Asia Asia Africa & RoW Africa & RoW Russia CIS Europe Americas Asia Africa & RoW H1 2011 H1 2012 H1 2011 H1 2012Investor Presentation, September 2012 29
  31. 31. Resilient and profitable asset base EBITDA, EVRAZ Russia, $m EBITDA, EVRAZ North America, $m 1,276 1,051 265 216 H1 2011 H1 2012 H1 2011 H1 2012 EBITDA, EVRAZ Ukraine, $m EBITDA, EVRAZ Europe, $m EBITDA, EVRAZ South Africa, $m 81 87 29 6 (3) H1 2011 H1 2012 (6) H1 2011 H1 2012 H1 2011 H1 2012Note. (1) Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(109)m in H1 2011 and $(89)m in H1 2012(2) EVRAZ North America includes EVRAZ Inc. NA, EVRAZ Inc. NA Canada, Stratcor; EVRAZ Ukraine includes EVRAZ DMZP, Sukha Balka and coking plants; EVRAZ Europe includes EVRAZ Palini e Bertoli, EVRAZ Vitkovice Steel, Nikom and attributable trading margin Investor Presentation, September 2012 30
  32. 32. Cost Structure by SegmentCost structure of Steel segment, $m Cost structure of Mining segment, $m 6,237 5,749 9% 8% Other 1,177 15% 3% 1,092 Energy 8% 9% 19% 4% 4% Depreciation 23% 6% 9% 11% 7% Staff Other 4% 13% 4% Transportation 5% Energy 17% 30% Semi-finished products 15% 16% Depreciation Other raw materials Staff costs 17% 24% 15% Scrap 23% Transportation Coking coal 13% Raw materials 21% 19% 10% Iron ore 12% 7% H1 2011 H1 2012 H1 2011 H1 2012Cost structure of Vanadium segment, $m 304 242 Other 30% Energy 12% 41% Depreciation 5% 12% Staff costs 6% 13% 5% Transportation 13% 35% Raw materials 28% H1 2011 H1 2012Investor Presentation, September 2012 31
  33. 33. EBITDAUS$ million Six months ended 30 June 2012 2011 Consolidated EBITDA reconciliation Profit from operations 430 859 Add: Depreciation, depletion and amortisation 668 501 Impairment of assets 80 32 Loss on disposal of property, plant & equipment 25 17 Foreign exchange (gain) loss (28) 220 Consolidated Adjusted EBITDA 1,175 1,629Investor Presentation, September 2012 32
  34. 34. Net debtUS$ million 30 June 2012 31 December 2011 Net debt calculation Add: Long-term loans, net of current portion 6,271 6,593 Short-term loans and current portion of long-term loans 1,531 613 Finance lease liabilities, including current portion 31 39 Less: Short-term bank deposit 0 (2) Cash and cash equivalents (1,763) (801) Net debt 6,070 6,442Investor Presentation, September 2012 33
  35. 35. London +44 207 832 8990Moscow +7 495 232 1370IR@evraz.comwww.evraz.com
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