MEETINGS WITH INVESTORSPresentation               September 14, 2012               Moscow                                 ...
DISCLAIMERIMPORTANT: You must read the following before continuing.The following applies to the management presentation (t...
TABLE OF CONTENTS          I.    BUSINESS REVIEW                                                            4         II. ...
I.BUSINESSREVIEWwww.oaoktk.ru/en   4 / 33
CORPORATE STRUCTURE          OJSC Kuzbasskaya Toplivnaya Company                                                  CJSC Kas...
KTK AT A GLANCE   One of the fastest-growing thermal coal producers in Russia                                             ...
MINING OPERATIONS                                                             Layout of open-pit mines and washing plants ...
VINOGRADOVSKY OPEN-PIT MINE                             142.6                        Historical production volumes, mln. t...
CHEREMSHANSKY OPEN-PIT MINE                             165.3                        Historical production volumes, mln. t...
KARAKANSKY SOUTH OPEN-PIT MINE                             41.5                                   Historical production vo...
WASHING PLANTS2                      4Kaskad washing plant       Kaskad-2 washing plant                                   ...
II.MARKETSwww.oaoktk.ru/en   12 / 33
DOMESTIC MARKET                                         Consumption of thermal coal in Russia, mln. tonnes                ...
EXPORT MARKETS                                                                    Export of Russian coal                  ...
COAL WASHING AND EXPORT MARKETS                 Poland                              5,300 kcal/kg                         ...
III.OPERATIONAL ANDFINANCIALHIGHLIGHTSwww.oaoktk.ru/en   16 / 33
OPERATIONAL HIGHLIGHTS Q2 2012   Seasonal decrease in     In the Q2 2012 the volume of coal production decreased by 13% Q-...
IH 2012 COAL SALES BREAKDOWN                                 Coal resale                                      0.88        ...
AVERAGE REALISED PRICES VS BENCHMARKS KTK realized export prices(1) vs. international FOB and CIF benchmarks, USD/tonne   ...
KEY SALES DIRECTIONS                                                                                                      ...
RETAIL NETWORK IN WESTERN SIBERIA      Since its establishment, the Company has been continuously                         ...
REVENUEKey financial indicators(1)                                                                                        ...
COST OF SALES AND EBITDACost of sales breakdown and dynamics(1)                                                           ...
REVENUE STRUCTURE250                                                                                                      ...
INDEBTEDNESS        During Q2 2012 the total net debt increased by 53% Q-o-Q compared to Q1 2011                          ...
INTEREST RATES12%11%10%9%8%7%6%5%4%3%             Dec 11               Jan 12                Feb 12                  Mar 1...
IV.CAPEX2012-2016www.oaoktk.ru/en   27 / 33
INVESTMENT PROGRAM    Investment program(1) in 2011 composed USD 88 mln. net of VAT. The largest                          ...
PLAN OF PROGRAM IMPLEMENTATION         Bryanskiy open-pit mine               USD 10 mln.            USD 6 mln.           U...
CONTACTSOJSC “Kuzbasskaya toplivnaya company”www.oaoktk.ru/en                                                            N...
INCOME STATEMENT IH 2012                                                         USD1 mln.                                ...
BALANCE SHEET AS AT 30 JUNE 2012  USD1 mln.                                     30.06.12 31.03.12 30.06.11                ...
CASH FLOW STATEMENT IH 2012 USD1 mln.                                                        IH 2012        IH 2012       ...
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KTK-Metropol-ENG-Sep14-12

  1. 1. MEETINGS WITH INVESTORSPresentation September 14, 2012 Moscow Scan the QR code or visit www.oaoktk.ru/en /investors/presentations
  2. 2. DISCLAIMERIMPORTANT: You must read the following before continuing.The following applies to the management presentation (the “Management Presentation”) following this important notice, and you are, therefore, advised to read this important notice carefully beforereading, accessing or making any other use of the Management Presentation. In accessing the Management Presentation, you unconditionally agree to be bound by the following terms, conditions andrestrictions, including any modifications to them any time that you receive any information from OJSC “Kuzbasskaya Toplivnaya Company” (the “Company”) as a result of such access.The information contained in this Management Presentation has been prepared by the Company.This Management Presentation is an information document presenting information on the Company.This Management Presentation (i) is not intended to form the basis for any investment decision and (ii) does not purport to contain all the information that may be necessary or desirable to evaluate theCompany fully and accurately and (iii) is not to be considered as a recommendation by the Company or any of its affiliates that any person (including a recipient of this Management Presentation)participate in any transaction involving the Company or its securities. The Company has not independently verified any information contained herein and does not undertake any obligation to do so.This Management Presentation is not directed to, or intended for distribution to or use by, any person or entity that a citizen or resident or located in any locality, state, country or other jurisdiction wheresuch distribution, publication, availability or use would be contrary to law or regulation or which would require registration of licensing within such jurisdiction.Neither the provision of this Management Presentation, nor any information in connection with the analysis of the Company constitutes or shall be relied upon as constituting, the giving of investment (orother) advice by Company, or any other shareholders, employees, representatives or affiliates thereof.Neither the Company nor its respective subsidiaries, associates, directors, employees, agents or advisors (such directors, employees, agents or advisors being hereafter referred to as “representatives”),makes any representation or warranty (express or implied) as to the adequacy, accuracy, reasonableness or completeness of the information contained in this Management Presentation or of anyadditional information, and such parties or entities expressly disclaim any and all liability (other than in respect of fraudulent misrepresentation) based on or relating to any representations or warranties(express or implied) contained in, or errors or omissions from, this Management Presentation or any additional information or based on or relating to the recipients use or the use by any of its associatesor representatives of this Management Presentation or any additional information, or any other written or oral communications transmitted to the recipient or any of its associates or representatives orany other person in the course of its or their evaluation of an investment in the Company.FORWARD-LOOKING STATEMENTSThis Management Presentation includes statements that are, or may be deemed to be, “forward looking statements”. These forward looking statements can be identified by the use of forward-lookingterminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case their negative or other variations or comparable terminology. Theseforward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Management Presentation and include statements regarding the intentions,beliefs or current expectations of the Company. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances, which may or maynot occur in the future, are difficult or impossible to predict, and are beyond the Company’s control. Forward-looking statements are not guarantees of future performance. The Companys actualperformance, results of operations and financial condition may differ materially from the impression created by the forward-looking statements contained in this Management Presentation.Subject to its legal and regulatory obligations, the Company expressly disclaims any obligation to update or revise any forward-looking statement contained herein to reflect any change in expectationswith regard thereto or any change in events, conditions or circumstances on which any statement is based.Any recipient of this Management Presentation is solely responsible for assessing and keeping under review the business, operations, financial condition, prospects, creditworthiness, status and affairs ofthe Company.In no circumstances shall the provision of this Management Presentation imply that no negative change may occur in the business of the Company after the date of provision of this ManagementPresentation, or any date of amendment and/or addition thereto.ROUNDING AND ERRORSCertain numerical figures included in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables may not be an arithmetic aggregation ofthe figures that preceded them. Calculations of change in % are made after rounding of figures converted to USD.We make every effort to check and verify the materials, but if you find any errors or inaccuracies please report it to vkr@oaoktk.ru and we will provide you with the correct data and publish any correctionnotes on the website www.oaoktk.ru. Please consider the environment before printing this document 2 / 33
  3. 3. TABLE OF CONTENTS I. BUSINESS REVIEW 4 II. MARKETS 12 III. OPERATIONAL AND FINANCIAL HIGHLIGHTS 16 IV. CAPEX 27 CONTACTS 30 APPENDIX 31 Kuznetsk Coal Basin (Kuzbass) KemerovoMoscow 200 km Russia Vinogradovsky Cheremshansky Karakansky South radius 5 km Kuzbass Headquarters Open-pit mines 3 / 33
  4. 4. I.BUSINESSREVIEWwww.oaoktk.ru/en 4 / 33
  5. 5. CORPORATE STRUCTURE OJSC Kuzbasskaya Toplivnaya Company CJSC Kaskad Management LLC Meret Freight ForwardingVinogradovsky Open Pit 100% Company 100%(Coal mining infrastructure division) (export sales) Company (railway freight company) OJSC Kuzbasstoplivosbyt 100% (wholesale and retail coal sales inOpen-pit mine Kemerovo Region)“Karakansky South” 100% OJSC Kaskad-Energo (heat and energy producer) LLC TransugolOpen-pit mine 52.04 % (wholesale and retail coal sales in Omsk“Vinogradovsky” Region) LLC Kusbass Transport OJSC Altay Fuel Company 49.98 % CompanyOpen-pit mine 51% (wholesale and retail coal sales in Altay (associated railway freight company)“Cheremshansky” Region)Open-pit mine LLC Novosibirsk Fuel“Briansky” 100% LLC Kaskad Geo 51% Corporation (land acquisition) (wholesale and retail coal sales in Novosibirsk Region) 100 % KTK Polska Sp. z. o. o. (wholesale and retail coal sales in Europe) Production Retail and export sales Transportation, energy and real estate 5 / 33
  6. 6. KTK AT A GLANCE One of the fastest-growing thermal coal producers in Russia Coal production history with open-pit mine breakdown One of major suppliers of coal in Western Siberia 10 mln. tonnes In 2011 the Company became 7th largest thermal coal producer in Russia(1) 8.73 8.70 9 Since its establishment in 2000, the Company has launched 3 open-pit mines 8 6.80 and developed an extensive production and distribution infrastructure and 7 6.15 3.76 3.83 the fourth one is now under construction: 6 5.48 2.55  8.74 mln. tonnes of thermal coal produced in 2011 5 4.33 4.29 4.10 0.98 2.06 4.08  100% high-quality grade “D” thermal coal under Russian classification 4 1.76 1.87 3.14 1.77 1.65 1.36 1.91 1.44 1.47  Developed railway network and facilities 3 0.41 1.98 2.29 2.38  Washing plant Kaskad with 2 mln. tonnes input capacity 2 0.65 1.30 2.38 2.73 2.56 2.64 2.74 2.59 2.65 2.78 3.23 3.00 1 2.29 1.30 1.47 3 existing open-pit mines Bryanskiy open-pit mine 0.37 0.37 0Structural 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 IH 2012F 11 mln. tonnes 3-5 mln. tonnes 2012capacityReserves 402 mln. tonnes of coal resources Karakansky South Vinogradovsky Cheremshansky 250 mln. tonnes according to and 185 mln. tonnes of proven and the C2 category probable reserves(2) Key operating and financial indicators(1) USD mln. 2009 2010 2011 Utilization of modern and high-performance equipment fleet supporting Coal sales, mln. tonnes 7.4 8.54 10.66 efficient low-cost production – USD 28 per tonne of coal in IH 2012 incl. purchased coal 1.4 2.16 2.08 Revenue 344 466 814 Diversified sales capabilities balanced between domestic market (4.21 mln. % of growth -2.3% 38.7% 74.7% tonnes sold in 2011) and export markets (6.45 mln tonnes sold in 2011) EBITDA 69 70 133 One of the largest retail coal distribution networks in Western Siberia % margin 20.1% 15.0% 16.3% Net Income 21 27 69 Employing about 4,000 people % margin 6.1% 5.8% 8.5% KTK shares are quoted on RTS and MICEX (ticker: KBTK) Source: audited IFRS FS for 2009-2010 in which all amounts are presented in RUB, Company 65.61% of share capital is owned by the management (I. Prokudin – (1) Metal Expert, January 2012 50,001%, V. Danilov – 15.61%), free-float – 34.39% is distributed between 25 (2) Run-of-mine coal, JORC classification; (3) In the table USD are converted from RUB using average Central Bank of the Russian Federation investment funds. Individuals own 0.31% exchange rates for each year (2011: 29.39 RUB/USD; 2010: 30.38 RUB/USD; 2009: 31.77 RUB/USD) 6 / 33
  7. 7. MINING OPERATIONS Layout of open-pit mines and washing plants 142.6 mln. tonnes1Vinogradovsky open-pit mine 165.3 mln. tonnes2Cheremshansky open-pit mine 41.53 mln. tonnesKarakansky South open-pit mine 5 +250.2 Kaskad washing plant mln. tonnes4 6 7Bryanskiy open-pit mine Kaskad-2 washing plant Administration building 7 / 33
  8. 8. VINOGRADOVSKY OPEN-PIT MINE 142.6 Historical production volumes, mln. tonnes mln. tonnes 1 Vinogradovsky open-pit mine IH 2012 0.65Key operating dataStructural capacity 3 mln. tonnes per year 2011 1.76Average striping ratio in 2011 7.57 m3 / 1 tonne 2010 1.47Stripping technology Transport 2009 2.06Seam inclination 20°Stripping removal distance 3.3 km 2008 1.91Coal to storage distance 2.6 km 2007 1.36Coal quality data Ash content 14.5 – 18.2% 2006 1.65 Moisture content 13.9 – 17.0% Sulphur content 0.27 – 0.30% 2005 1.77 Caloric value 4,900 – 5,500 kcal/kg 2004 0.41 Coal grade D 8 / 33
  9. 9. CHEREMSHANSKY OPEN-PIT MINE 165.3 Historical production volumes, mln. tonnes mln. tonnes 2 Cheremshansky open-pit mine IH 2012 1.98Key operating dataStructural capacity 5 mln. tonnes per yearAverage striping ratio in 2011 9.32 m3 / 1 tonne 2011 3.76Stripping technology TransportSeam inclination 80 – 90°Stripping removal distance 2.7 km 2010 2.55Coal to storage distance 2.9 kmCoal quality data 2009 2.06 Ash content 17.2% Moisture content 12.5 – 15.0% Sulphur content 0.50 – 0.80% Caloric value 5,100 – 6,000 kcal/kg 2008 0.98 Coal grade D 9 / 33
  10. 10. KARAKANSKY SOUTH OPEN-PIT MINE 41.5 Historical production volumes, mln. tonnes 3 mln. tonnes Karakansky South open-pit mine IH 2012 1.47Key operating data 2011 3.23Structural capacity 3 mln. tonnes per year 2010 2.78Average striping ratio in 2011 6.15 m3 / 1 tonne 2009 2.65Stripping technology 2008 2.59 Combined 2007 2.74 (non-transport and transport)Seam inclination 3 – 8° 2006 2.64Stripping removal distance 1.7 km 2005 2.56Coal to storage distance 4.6 km 2004 2.73Coal quality data Ash content 13.2 – 15.2% 2003 2.38 Moisture content 14.0 – 17.0% 2002 2.29 Sulphur content 0.27 – 0.30% 2001 1.30 Caloric value 4,900 – 5,300 kcal/kg Coal grade D 2000 0.37 10 / 33
  11. 11. WASHING PLANTS2 4Kaskad washing plant Kaskad-2 washing plant 11 / 33
  12. 12. II.MARKETSwww.oaoktk.ru/en 12 / 33
  13. 13. DOMESTIC MARKET Consumption of thermal coal in Russia, mln. tonnes 190.2 189.6 190.4 168.0 2008 2009 2010 2011 Structure of consumption in 2011 2008 2009 2010 2011 66% Power plants 130.4 112.6 124.7 126.0 Retail 25.8 24.3 25.2 23.8 Government bodies 3.6 3.9 2.6 3.1 Industrial and other 29.5 26.2 37.1 37.4 20% Total: 190.2 168.0 189.6 190.4 2% 12% Power plants Retail Government bodies Industrial and other 13 / 33Source: Company
  14. 14. EXPORT MARKETS Export of Russian coal European market, mln. tonnes Asian market, mln. tonnes 71% 79 2011 32 29% 50% 85 2030 85 50% 2012F: 74,4 mln. tonnes 2012F: 43.6 mln. tonnes 1.6 Italy India 1.8 4.0 Finland Taiwan 3.2 8.5 Poland KEY CONSUMERS OF THE South Korea 10.7 8.9 Turkey RUSSIAN COAL Japan 13.0 10.3 Ukraine China 14.9 12.0 Germany13.9 UK INCREASING DEMAND OF COAL ON EXPORT MARKETS European market, mln. tonnes Asian market, mln. tonnes 339 343 1,112 257 890 659 2010 2015F 2020F 2010 2015F 2020F 14 / 33Source: Company
  15. 15. COAL WASHING AND EXPORT MARKETS Poland 5,300 kcal/kg South Korea (Premium segment) 5,500 – 5,700 kcal/kgMARKETS China 5,300 – 5,500 kcal/kg Taiwan (Premium segment) 5,500 – 5,700 kcal/kg South Korea 5,500 kcal/kg Czech Republic 5,500 – 5,700 kcal/kg Taiwan 5,300 – 5,500 kcal/kg Germany 5,700 – 6,000 kcal/kg Japan 6,000 kcal/kg «Kaskad- 2» «Kaskad»WASHING Design capacity, Design capacity, 4 2 mln. tonnes per year mln. tonnes per year Launch Q4 2012 Launch Q3 2010 Caloric output, Caloric output, 5,500 - 5,750 5,300 - 5,750 kcal/kg kcal/kg Sources of coal Sources of coal Karakansky South Vinogradovsky Cheremshansky Bryansky Design capacity, Design capacity, Design capacity, Design capacity,MINING 3 3 5 3–5 mln. tonnes per year mln. tonnes per year mln. tonnes per year mln. tonnes per year Caloric value, kcal/kg 4,900 – 5,300 Caloric value, kcal/kg 4,900 – 5,500 Caloric value, kcal/kg 5,100 – 6,000 Caloric value, kcal/kg n/a Sulfur content, % 0.27 – 0.30 Sulfur content, % 0.27 – 0.30 Sulfur content, % 0.50 – 0.80 Sulfur content, % n/a Ash content, % 13.2 – 15.2 Ash content, % 14.5 – 18.2 Ash content, % 17.2 Ash content, % n/a Moisture content, % 14.0 – 17.0 Moisture content, % 13.9 – 17.0 Moisture content, % 12.5 – 15.0 Moisture content, % n/a 15 / 33
  16. 16. III.OPERATIONAL ANDFINANCIALHIGHLIGHTSwww.oaoktk.ru/en 16 / 33
  17. 17. OPERATIONAL HIGHLIGHTS Q2 2012 Seasonal decrease in In the Q2 2012 the volume of coal production decreased by 13% Q-o-Q and amounted to 1.90 mln. tonnes (Q1 2012 2.18 mln. tonnes). coal production In the IH 2012, the volume of production increased by 9% to 4.08 mln. tonnes, over the same Q-o-Q period of the previous year (3.74 mln. tonnes). Q-o-Q production of washed coal has increased by 5% to 0.21 mln. tonnes (Q1 2012: 0.20 mln. Washing plant Kaskad tonnes). is working at close to For IH 2012 the volume of production at the washing plant "Kaskad" has increased by 17% to full capacity level 0.41 mln. tonnes (IH 2011: 0.35 mln. tonnes). Due to the traditional decline in trading activity in the domestic market of thermal coal, Seasonal Q-o-Q observed in Q2, the Company reduced its sales compared to Q1 2012 to 27% by implementing decrease in coal sales the 2.04 mln. tonnes (Q1 2012: 2.81 mln. tonnes). volume The volume of coal sales for IH 2012 increased by 8% to 4.85 mln. tonnes (IH 2011: 4.51 mln. tonnes). The quarterly average stripping ratio increased by 15% QoQ to 10.21 (Q4 2012: 8.86) and by 18% YoY (Q2 2011: 8.67) Key production cost The blasted rock mass decreased by 1% to 9.43 mln. cbm. QoQ (Q1 2012: 9.54 mln. cbm.) and drivers growth increased by 29% YoY (Q2 2011: 7.33 mln. cbm.) The average stripping transportation distance decreased by 9% QoQ to 3.04 km. (Q1 2012: 3.33 km.) and increased by 7% YoY (Q2 2011: 2.84 km.) 17 / 33Source: Company
  18. 18. IH 2012 COAL SALES BREAKDOWN Coal resale 0.88 18% 4.85 mln. tonnes 3.97 82% { Export market 3.06 63% 4.85 mln. tonnes 1.79 37% { Own coal Domestic marketDomestic market Export market Eastern Europe Retail customers Public 1.40 utilities 0.46 46% 25% 1.79 mln. 3.06 mln. 1.00 tonnes tonnes 56% 0.34 1.65 19% 54% Power generating Asia-Pacific RegionSource: Company companies (TGK/OGK) 18 / 33
  19. 19. AVERAGE REALISED PRICES VS BENCHMARKS KTK realized export prices(1) vs. international FOB and CIF benchmarks, USD/tonne KTK Asian export – USD 88.73 KTK European export – USD 79.92 USD / tonne120 92.38 95.25100 88.57 89.73 90.24 84.35 75.31 77.748060 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 KTK - export price CIF ARA 6,000 kkal/kg FOB Indonesia 5,800 kkal/kg KTK FCA prices vs. Russian EXW benchmark, USD/tonne 44.02 USD / tonne 45 42.31 41.87 40.39 41.06 40 38.15 35 32.29 30.61 30 25 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 KTK - domestic price, FCA Meret Average price EXW in Russia, based on 4,500-5,000 kkal/kgSource: Company, Metal Expert for average EXW prices in Russia, Argus for FOB Indonesia and CIF ARA(1) Net of VAT, average KTK export realized price incl. railway tariffs 19 / 33
  20. 20. KEY SALES DIRECTIONS KTK’s transport flows1.40 mln. tonnesEastern European Countries (1) North-West FD Domestic market Omsk region Asia-Pacific Domestic sales Export sales Moscow 0.07 1.79 Headquarters mln. tonnes(1) Railroad tariff to the mln. tonnes(1) Polish border: 44.06 USD/tonne (2) 1.21 Volga FD Tomsk Region mln. tonnes(1) 1.65 0.06 Omsk Region Siberian FD mln. tonnes(1) mln. tonnes(1) Asia-Pacific region Source: Company Kemerovo Region (1) Sales volumes in IH 2012 (incl. purchased coal) Novosibirsk Region (2) Average Q2 2012 KTK transportation cost is Railroad tariff to the station at converted to USD using average Central Bank of the Nakhodka-East port : Altay Region 43.70 USD/tonne (2) Russian Federation exchange rate (Q2 2012: 31.10 RUB/USD) Quarterly domestic and export sales, mln. tonnes Average quarterly domestic and export prices comparison (3) 4 -27% 1,440 RUB -6%; USD -9% 3.34 1,367 $48 1,352 3 2.81 2.81 % of total 1,280 $44 1,285 $45 1,302 1,271 1,233 $42 1,259 $41 1.77 $44 1,191 1,229 1,192 $41 2.04 $42 $41 $40 2 1.61 1.61 $41 $38 1.45 1 71% 1.20 1.57 1.21 0.59 0 29% Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Domestic sales Export sales Average domestic price Average export price Average blended price Source: Company (3) Prices are net of VAT and railroad tariffs; domestic prices include costs associated with retail distribution network; prices are converted to USD using average Central Bank of the Russian Federation exchange rates for each quarter (Q2 2012: 31.10 RUB/USD; Q1 2012: 30.03 RUB/USD; Q4 2011: 31.24 RUB/USD; Q3 2011: 29.08 RUB/USD) 20 / 33
  21. 21. RETAIL NETWORK IN WESTERN SIBERIA Since its establishment, the Company has been continuously IH 2012 retail sales breakdown (1), mln. tonnes expanding and building its retail sale and storage network: 0.51  own 71 points of sale as at the end of Q2 2012; 30% 0.44 Kuzbasstoplyvosbit 26%  additional points of sale planned to be acquired or established; Altay TK Total sales in  6 Wide distribution network and strong regional presence Siberian FD TransUgol position the Company as one of the principal suppliers of 0.04 1.67 mln. tonnes coal to retail costumers, municipalities, and public utilities 3% Omsk Region Novosibirsk TK in Western Siberia. When export prices are high, the Company uses lower quality 5 0.20 12% 0.49 KTK third-party coal to satisfy domestic demand, while shifting its points 29% own higher quality coal to export markets. of sale 0.04 mln. tonnes (1) Omsk 26 Headquarters points of sale 0.51 mln. tonnes (1) Novosibirsk Kemerovo Novosibirsk Kemerovo Region Region Retail Subsidiary Company’s Type of activity 13 27 ownership Barnaul points points of sale OJSC “Kuzbasstoplyvosbit” 100% Wholesale & retail sales in Kemerovo Region of sale 0.44 mln. LLC “TransUgol” 51% Wholesale & retail sales in Omsk Region 0.20 mln. Altay Region tonnes (1) tonnes (1) LLC “Novosibirsk TK” 51% Wholesale & retail sales in Novosibirsk Region OJSC “Altay TK” 51% Wholesale & retail sales in Altay RegionSource: Company(1) Including coal resale 21 / 33
  22. 22. REVENUEKey financial indicators(1) IH 2012 Revenue breakdown by segments(1)USD mln. Q2 2012 Q1 2012 IH 2012 IH 2011 8% 3%Revenue 156 222 376 357 15%Cost of sales (143) (178) (321) (295) Own coal, exportGross profit 13 43 55 62 Own coal, Russia Gross profit margin 8.3% 19.5% 14.7% 17.3% USD 376 mln. Coal resale, RussiaSG&A and other expenses (13) (15) (28) (27) Other revenueEBITDA(2) 8 37 45 52 EBITDA margin 5.3% 16.8% 12.0% 14.5% 73%Operating profit (EBIT) 0 28 27 35 Operating margin - 12.7% 7.2% 9.7%Net income -13 30 17 28 Segment revenue dynamics(1) Y-o-Y Net income margin - 13.5% 4.4% 7.8%Gross debt3 206 179 206 79 400 376 5% 357Net debt 3 156 114 156 72 12 22% USD mln. 10 31 30% 24 300 49 58 18%(1) Figures were converted to USD using the average exchange rates of the Central Bank of the RussianFederation for each period (Q2 2012:31.10 RUB/USD; Q1 2012: 30.03 RUB/USD; Q4 2011: 31.24 RUB/USD; 188Q1 2011: 29.16 RUB/USD; IH 2012: 30.59 RUB/USD; IH 2011: 28.56 RUB/USD; IH 2010: 30.05) 200 10(2) EBITDA for each period is defined as results from operating activities, adjusted for amortization and 29depreciation, impairment loss and loss on disposal of property, plant and equipment 40 274 275 1%(3) Figures were converted to USD using the exchange rates of the Central Bank of the Russian Federation 100for the end of each period (30.06.12: 32.82 RUB/USD; 31.03.12: 29.33 RUB/USD; 30.06.11: 28.08 RUB/USD) 109 0 IH 2010 IH 2011 IH 2012 Own coal, export Own coal, Russia Coal resale, Russia Other revenue 22 / 33
  23. 23. COST OF SALES AND EBITDACost of sales breakdown and dynamics(1) Production cash costs dynamics(1) 37% 51% USD 143 mln. 250 Q-o-Q 9% 8% 6% 70 40 USD per 1 tonne USD mln. USD mln. 200 193 Q-o-Q 58 56 170 178 60 54 35 58 50 150 56 143 -20% 50 50 24 54 30 25 9 24 -5% 40 100 9 9 11 28 8-53% -4% 30 26 50 86 102 90 25 72 -20% 22 20 0 20 20 Q3 2011 Q4 2011 Q1 2012 Q2 2012 10 2.44 2.56 2.18 1.90 Transportation costs Depreciation 0 15 Coal purchased Production cash costs Q3 2011 Q4 2011 Q1 2012 Q2 2012 Production volume Production cash costsEBITDA calculation(1) in USD, Q2 2011 Cash costs per 1 tonne, USD (54) (11) 156 (72) (5) (8) 8 Revenue Production cash costs Coal for re-sale Transportation costs Distribution expenses Administrative expenses EBITDASource: unaudited IH, Q1 2012 and Q4, Q3 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (Q2 2012: 31.10 RUB/USD; Q1 2012: 30.03 RUB/USD;Q42011: 31.24 RUB/USD; Q3 2011: 29.08 RUB/USD). 23 / 33
  24. 24. REVENUE STRUCTURE250 4 USD mln. 222200 186 170 3 150 154 156 156150 124 123 114 2100 72 56 150 88% 79% 67% 69% 0 0 Q1 2011 Q2 2011 Q1 2012 Q2 2012 Total revenue Revenue from export in USD Net debt Share of USD revenue 24 / 33
  25. 25. INDEBTEDNESS During Q2 2012 the total net debt increased by 53% Q-o-Q compared to Q1 2011 Debt structure(1) by currency as of Dec 2011 Net Debt to EBITDA ratio increased from 0.82 to 1.35 USD loans 36% RUB loans USD 206 mln. 64% Net Debt to EBITDA(1) 180 4 USD mln. 156 160 149 133 137 140 3 120 114 97 100 83 2 80 71 60 1.05 1 40 0.84 0.73 0.62 20 0 0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Net debt EBITDA (12M) Net debt/EBITDA (12M)Source: unaudited Q1 2012 and Q1, Q4 2011 IFRS FS in which all amounts are presented in RUB(1) Annualized EBITDA(2) Figures were converted to USD using exchange rates of the Central Bank of the Russian Federation for each date (30.06.12: 32.82 RUB/USD; 31.03.12: 29.33 RUB/USD;31.12.11: 32.20 RUB/USD; 30.09.11: 31.88 RUB/USD).(3) Net debt/EBITDA is calculated in USD. Ratio for Q2 2012 in RUB is 1.35 25 / 33
  26. 26. INTEREST RATES12%11%10%9%8%7%6%5%4%3% Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Refinancing rate of CBR Deposit rate (RUB) Loans rate (USD) Loans rate (RUB) 33 7.50 0.30 33 0.29 7.00 32 0.28 32 6.50 31 0.27 6.00 31 0.26 30 5.50 0.25 30 5.00 0.24 29 29 4.50 0.23 28 4.00 0.22 Dec Jan Feb Mar Apr May Jun Dec Jan Feb Mar Apr May Jun Dec Jan Feb Mar Apr May Jun 11 12 12 12 12 12 12 11 12 12 12 12 12 12 11 12 12 12 12 12 12 USD/RUB MosPrim 1m MosPrim On Libor 1м 26 / 33
  27. 27. IV.CAPEX2012-2016www.oaoktk.ru/en 27 / 33
  28. 28. INVESTMENT PROGRAM Investment program(1) in 2011 composed USD 88 mln. net of VAT. The largest Equipment procurement plan investment items included: CAPEX Dec 31, CAPEX  Acquisition of large mining and transport equipment 2011 2011 2012-2016  The construction of the second enrichment plant with 4 mln. tonnes annual capacity Shovels 2 22 15 (3 P&H) (P&H, Komatsu, EO)  The completion of construction fuel and lubricants dump Trucks In 2012-2016 there will be 5 major investment categories: 22 88 64 (BelAZ)  Development of Bryanskiy open-pit mine to start coal production in 2015  Construction of 3 new coal processing and enrichment facilities to improve Dozers 6 20 9 coal quality and raise production efficiency (Komatsu)  Continued procurement of mining equipment to increase production at Loaders the existing open-pit mines 2 34 3 (Komatsu)  Construction of own railway infrastructure to increase capacity from 12 Graders to 16 tonnes per year 1 4 2 (Komatsu, CAT)  Development of company retail network Drill Rigs 1 4 3 (Ingersoll Rand) CAPEX breakdown(2), USD mln. 160 7% 4% Retail network infrastructure 2 9 4% 128 7 2 7% Railway infrastructure 122 USD 521 8 37 6 7 3 5 mln. 5 Other 10 11 3 2% 30% 47% 29 72 Bryanskiy coal deposit 5 37 7 10 6 6 99 39 Equipment 16 2 2 3 62 1 56 32 Other infrastructure 28 Processing and washing plants 2012 2013 2014 2015 2016(1) - Figures were converted to USD using the average exchange rate of the Central Bank of the Russian Federation (2011: 29.39 RUB/USD)(2) – Net of VAT, USD figures were converted from RUB using 30.00 RUB/USD exchange rate 28 / 33
  29. 29. PLAN OF PROGRAM IMPLEMENTATION Bryanskiy open-pit mine USD 10 mln. USD 6 mln. USD 11 mln. USD 7 mln. Structural capacity Reserves: 250 mln. tonnes 3 – 5 mln. tonnes Launch: 2015 Investment in infrastructure Coal production 0.5 mln. 1 mln. tonnes tonnes Washing plant Washing plant Washing plant Washing plant «Kaskad» «Kaskad- 2» for oxidized coal «Vinograndskaya» Launch: Q3 2010 Launch: Q4 2012 Launch: 2014 Launch: 2016 Capacity: 2 mln. tonnes Capacity: 4 mln. tonnes Capacity: 1 mln. tonnes Capacity: 7 - 8 mln. tonnes Caloric output: 5,300 - 5,750 Caloric output: 5,500 - 5,750 Caloric output: 5,500 Caloric output: 5,500 – 6,000 Cost: USD 27 mln. Cost: USD 81 mln. Cost: USD 28 mln. Cost: USD 155 mln. Technology: steeply-inclined separation Technology: steeply-inclined separation; Technology: reduction of moisture Technology: steeply-inclined separation; dense medium separation dense medium separation 2010 2011 2012 2013 2014 2015 2016 • Technology for washing plant for10 8.73 8.70 15 oxidized coal is 14 5.48 13 not completely 12 ready, so project 11 can be moved and 5 10 changed 9 8 7.10 7.27 7 6.21 6 0 5 2010 2011 2012F Production Average stripping ratio mln. tonnes 29 / 33
  30. 30. CONTACTSOJSC “Kuzbasskaya toplivnaya company”www.oaoktk.ru/en News and announcements (Russian only)Head office in Kemerovo: www.facebook.com/oaoktk4, 50 let Oktyabrya street, Kemerovo, 650991, Russia PresentationsRepresentative office in Moscow: www.slideshare.net/oaoktk29, Serebryanicheskaya embankment, Moscow, 109028, Russia VideoInvestor calendar: www.oaoktk.ru/en/investors www.youtube.com/oaoktkruTo subscribe for news please request: vkr@oaoktk.ruIvan GeptingDeputy CEO, SalesT: +7 (3842) 58-58-60 (Kemerovo)E-mail: gepting@oaoktk.ruVasily RumyantsevInvestor Relations ManagerТ: +7 (495) 787-68-05 (Moscow)E-mail: vkr@oaoktk.ruSkype: vasily.rumyantsev 30 / 33
  31. 31. INCOME STATEMENT IH 2012 USD1 mln. IH 2012 IH 2011 Revenue 376 357 Cost of sales (321) (295) Gross profit 55 62 Distribution expenses (11) (10) Administrative expenses (18) (17) Operating profit 27 35 Finance income 2 5 Finance costs (8) (4) Profit / (loss) before income tax 22 36 Income tax expense (5) (8) Profit / (loss) for the period 17 28 Profit / (loss) for the period margin 4.4% 7.8% EBITDA2 45 52 EBITDA margin 12.0% 14.5%Source: unaudited IH 2012 and IH 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (IH 2012: 30.59 RUB/USD; IH 2011: 28.56 RUB/USD).(2) EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant andequipment 31 / 33
  32. 32. BALANCE SHEET AS AT 30 JUNE 2012 USD1 mln. 30.06.12 31.03.12 30.06.11 USD1 mln. 30.06.12 31.03.12 30.06.11 ASSETS EQUITY AND LIABILITIES Equity Non-current assets Share capital 1 1 1 Property, plant and equipment 365 376 328 Retained earnings 171 224 160 Goodwill and intangible assets 1 1 Additional paid-in capital 86 96 101 Investments in equity accounted investees 1 1 1 Total attributable to equity holders of the company 257 321 262 Deferred tax assets 1 1 1 Total equity 258 321 262 Total non-current assets 368 379 331 Non-current liabilities Loans and borrowings 165 136 67 Current assets Deferred income 7 8 Inventories 49 48 36 Net assets attributable to minority participants in LLC 2 3 2 entities Other invetsments 15 12 1 Provisions 8 9 10 Trade and other receivables 53 81 42 Retirement benefit liability 1 1 1 Prepayments and deferred expenses 17 15 19 Deferred tax liabilities 15 16 17 Cash and cash equivalents 35 54 8 Total non-current liabilities 198 173 97 Total current assets 173 211 106 Current liabilities TOTAL ASSETS 541 590 437 Loans and borrowings 41 42 12 Trade and other payables 45 53 66 Total current liabilities 86 96 78 Total liabilities 284 269 175 TOTAL EQUITY AND LIABILITIES 541 590 437Source: unaudited HI, Q1 2012 and HI 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using exchange rates of the Central Bank of the Russian Federation for each date (30.06.12: 32.82 RUB/USD; 31.03.12: 29.33 RUB/USD;30.06.11: 28.08 RUB/USD;). 32 / 33
  33. 33. CASH FLOW STATEMENT IH 2012 USD1 mln. IH 2012 IH 2012 USD1 mln. IH 2012 IH 2011 OPERATING ACTIVITIES INVESTING ACTIVITIES Profit / (loss) for the period 17 28 Loans issued (16) (25) Adjustments for: Depreciation and amortization 18 17 Acquisition of property, plant and equipment (73) (31) Net finance expense 6 (1) Cash flow used in investing activities (88) (31) Income tax expense 5 8 Operating result before change in working capital 45 52 FINANCING ACTIVITIES Proceeds from borrowings 186 149 Change in inventories (11) (9) Repayment of borrowings (117) (142) Change in trade and other receivables (4) (4) Change in prepayments for current assets 11 (3) Cash flow from financing activities 49 (1) Change in trate and other payables (13) (1) Cash flow from operations before income tax and interest 27 35 Net increase / (decrease) in cash and cash equivalents Income taxes and penalties paid (8) (8) Interest paid (5) (3) Cash flows from operating activities 14 25Source: unaudited Q1 2012 and Q1 2011 IFRS FS in which all amounts are presented in RUB(1) Figures were converted to USD using the average exchange rates of the Central Bank of the Russian Federation for each period (IH 2012: 30.59 RUB/USD; IH 2011: 28.56 RUB/USD). 33 / 33

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