Presentation of the OJSC MMK Group 4Q and FY2008 IFRS Financial - - PowerPoint PPT Presentation
Presentation of the OJSC MMK Group 4Q and FY2008 IFRS Financial Statements The presentation contains selected data from the financial statements of MMK Group. Detailed information is provided in the financial statements of the Group 2008
The presentation contains selected data from the financial statements of MMK Group. Detailed information is provided in the financial statements of the Group 2008 prepared according to IFRS.
Presentation of the OJSC MMK Group 4Q and FY2008
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MMK Group Operations and Income Statement
29,4% 20,9%
EBITDA margin
2,407 2,204
EBITDA*
15,9% 10,2%
Revenue margin
1,306 1,081
Profit for the period
19,8% 10,5%
Revenue margin
1,626 1,106
Profit before income tax
17,7% 11,1%
Revenue margin
1,453 1,174
Operating income
2,353 8,197 10,550
Revenue
Change 2007 2008
* EBITDA = Operating income + Depreciation of assets + Loss on disposal of fixed assets +/- Operations with affiliates
Presentation of the OJSC MMK Group 4Q and FY2008
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Sales proceeds, USD m Operating income, USD m EBITDA, USD m Net income, USD m
8197 10550 2000 4000 6000 8000 10000 2007 2008 1453 1174 500 1000 1500 2000 2007 2008 2407 2204 500 1000 1500 2000 2500 3000 2007 2008 1306 1081 500 1000 1500 2007 2008
Presentation of the OJSC MMK Group 4Q and FY2008
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2008
56% 34% 10%
OJSC MMK Steel traders* Other companies
MMK Group’s Sales MMK Group’s Sales in USD
2007 57% 33% 10% * ММК Steel Trade AG ММК Trading AG UralSib Traid MAGMA Traid 28,7% 33,7% 31,8% 26,1%
%
8,197 809 2,711 4,677
2007
2,353 10,550 Total proceeds 273 1,082 Group’s other companies’ proceeds 861 3,572 Group’s steel traders’ proceeds 1,219 5,896 OJSC MMK’s proceeds
Change 2008
Presentation of the OJSC MMK Group 4Q and FY2008
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(continued)
Proceeds by type of product
2008
1,368 3,529 3,484 2,169 Total proceeds
161 272 275 167 Other products and services 349 769 610 430 Downstream products 95 313 284 252 Long products 622 2,053 2,037 1,135 Flat products 142 121 278 185 Billets and slabs 4Q 3Q 2Q 1Q
Proceeds by type of product in USD
4Q 2008
25% 7% 46% 12% 10% Billets and slabs Flat products Long Products Downstream products Other products and services
3Q 2008
3% 8% 58% 9% 22%
Presentation of the OJSC MMK Group 4Q and FY2008
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(continued)
Proceeds by type of product Proceeds by type of product in USD
2008 7% 8% 56% 9% 20%
Billets & Slabs Flats Longs Downstream products Other products and services
2007
56% 10% 21% 7% 6%
28,7%
46,8% 24,0% 13,3% 28,4% 53,8%
%
2,353 8,197 10,550 Total proceeds
279 596 875 Other products and services 417 1,741 2,158 Downstream products 111 833 944 Long products 1,292 4,555 5,847 Flat products 254 472 726 Billets and slabs
Change 2007 2008
Presentation of the OJSC MMK Group 4Q and FY2008
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MMK Group’s operating costs MMK Group’s operating costs in USD
2007 0% 7% 8% 85% 2008 5% 4% 7% 84%
COGS Selling and distr. expenses General and administrative expenses Other operating income and loss
347 31 378
Other operating income and loss
2,632 6,744 9,376
Total operating costs
61 99 2,125
Change
452 513
General and administrative expenses
551 650
Selling and distribution expenses
5,710 7,835
Cost of products sold
2007 2008
Presentation of the OJSC MMK Group 4Q and FY2008
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38,3% 110 287 397 Other receivables and current assets 15,887 4,101 41 1,225 686 1,952 1,918 231 2,149 152 11,634 15,887 256 543 1,279 945 963 4,273 1,205 10,409 11,614 31.12.2007
244
70 635 688
200
37
850
46 33
Change
14,197 Total equity and liabilities 5,9% 4,345 Total liabilities
24 Other current liabilities 5,7% 1,295 Short-term borrowings and current portion of long-term borrowings 92,6% 1,321 Accounts payables 35,2% 2,640 Current liabilities, incl.
1,274 Other non-current liabilities 86,6% 431 Long-term borrowings and obligations under financial lease
1,705 Non-current liabilities, incl. 24,3% 189 Minority interest
9,663 Equity attributable to shareholders of the parent company
14,197 Total assets 332,0% 1,106 Cash and cash equivalents
121 Investments in securities and other financial assets
17 Bank deposits 4,9% 991 Trade and other receivables 3,4% 996 Inventories
3,628 Current assets, incl.
818 Other non-current assets
9,751 Property, plant and equipment
10,569 Non-current assets, incl. % 31.12.2008
Presentation of the OJSC MMK Group 4Q and FY2008
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1106 256
62 1 081 643 1 054
Change of cash balance during the 2008, USD m
Balance at begin. of period Profit for the period Adjustments for non-cash
Change in working capital Investing activities* Financing activities Balance at end of period Effect of exchange rate changes Interest and Income tax Amortization and Loss on disposal
* Investment activities: (2 136) m USD – purchase of property, plant and equipment and intangible assets; 1 096 m USD – net change in bank deposits
Presentation of the OJSC MMK Group 4Q and FY2008
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1000 2000 3000 4000 2007 2008 1 2 3 4 Current assets Current liabilities Current assets/Current liabilities 500 1000 1500 2000 2500 2007 2008 0,4 0,8 1,2 Debt EBITDA Debt/EBITDA 200 400 600 800 1000 1200 1400 1600 2007 2008 4 8 12 16 20 24 EBIT Interest EBIT/Interest 2000 4000 6000 8000 10000 12000 2007 2008 0,2 0,4 0,6 0,8 Total debt Equity Total debt/Equity
Current liquidity Debt / EBITDA EBIT / Interest Total debt / Equity
Presentation of the OJSC MMK Group 4Q and FY2008
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OJSC MMK’s Key Production Indicators
13,261 11,957 Crude steel
3,184 3,118
10,077 8,838 BOF steel
Change 9,482 5,354 2007 8,541 Pig iron 4,994 6% humidity coke 2008 Description
thousand tons
Presentation of the OJSC MMK Group 4Q and FY2008
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Historical Structure of OJSC MMK’s commercial products’ mix
7,954 7,023 Flat products
1,483 1,359 Downstream products
12,203 10,911 Commercial products
Change 1,788 976 2007 1,577 Long products 952 Billets and slabs 2008 Description
thousand tons
Presentation of the OJSC MMK Group 4Q and FY2008
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OJSC MMK’s Historical Product Mix By Market
2007
24% 47% 12% 17%
Billets&slabs Longs HRC CRC Downstream products
2008 17% 0,03% 21% 12% 50%
Changes in domestic shipments Export shipments
2007 20% 0,2% 4% 62% 14%
Billets & slabs Longs HRC CRC Downstream products
2008 56% 13% 4% 25% 2%
49% 50% 54% 60% 66% 51% 50% 46% 40% 34%
0% 50% 100% 2004 2005 2006 2007 2008 Domestic market Export
Domestic sales’ growth in tons Changes in shipments’ structure in tons
2000 4000 6000 8000 10000 2004 2005 2006 2007 2008
Billets & slabs Longs HRC CRC Downstream products
Total: 4,876 kt Total: 3,755 kt Total: 7,327 kt Total: 7,155 kt 10,137 10,201 11,346 12,203 10,911
Presentation of the OJSC MMK Group 4Q and FY2008
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Significant Events After Accounting Date
In February 2009, OJSC Sberbank provided a long-term RUB-denominated loan of USD 408 million with maturity in February 2012. The funds will be used to finance construction of the Plate mill 5000.
February 2009
In April 2009, Group and Czech Export Bank concluded agreements for the Bank to provide long-term USD-denominated loans of USD 133 million with maturity in 2017, and a long-term USD-denominated loan of USD 22.5 million with maturity in 2010. The funds will be used to finance construction of a continuous casting machine and a secondary steel treatment unit as part of Plate mill 5000 complex.
April 2009