1Q 2020 Preliminary Results Bank of America Merrill Lynch Emerging Markets Debt and Equity Conference 2020 2-4 June 2020
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1Q 2020 Highlights 3 METINVEST H OLDI NG. C OM
Financial highlights Revenues EBITDA US$ mn US$ mn 2,863 373 435 2,536 19% Total revenues decreased by 11% y-o-y 20% 277 366 • metallurgical revenues fell by 14% y-o-y to US$2,018 mn 81% 80% • mining revenues fell by 2% y-o-y to US$518 mn 166 Adjusted EBITDA 1 declined by 14% y-o-y 68 -70 1Q 2019 1Q 2020 • metallurgical EBITDA rose by 2.4x y-o-y to US$166 mn 1Q 2019 1Q 2020 • mining EBITDA fell by 24% y-o-y to US$277 mn HQ and eliminations Metallurgical Mining Metallurgical Mining METINVEST H OLDI NG. C OM The segmental share of EBITDA 2 changed y-o-y in 1Q 2020: 63% for Mining (84% in 1Q 2019) and 37% for Metallurgical CAPEX Operating cash flow (16% in 1Q 2019) US$ mn US$ mn The consolidated EBITDA margin remained flat y-o-y at 15% 317 198 • metallurgical EBITDA margin increased by 5 pp y-o-y to 8% 278 2% 148 • mining EBITDA margin fell by 5 pp y-o-y to 37% 48% 2% Operating cash flow (OCF) fell by 12% y-o-y to US$278 mn, 44% while EBITDA to OCF conversion improved by 2 pp y-o-y to 75% 50% 54% CAPEX totalled US$148 mn, down 25% y-o-y 1Q 2019 1Q 2020 1Q 2019 1Q 2020 Metallurgical Mining Corporate overheads 1. Adjusted EBITDA is calculated as earnings before income tax, finance income and costs, depreciation and amortisation, impairment of property, plant and equipment, foreign exchange gains and losses, the share of results of associates and other expenses that the management considers non-core plus the share of EBITDA of joint ventures. Adjusted EBITDA will be referred to as EBITDA in this presentation. 4 2. The contribution is to the gross EBITDA, before adjusting for corporate overheads and eliminations Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided and percentages may not precisely reflect absolute figures.
Sales portfolio Metallurgical sales by region Mining sales by region US$ mn US$ mn 2,333 530 518 2,018 9% 3% 1% 4% 9% 7% 7% Metallurgical sales 4% 34% 7% 22% 22% 49% • 14% y-o-y decline, mainly amid lower selling prices of 27% steel and coke products following global benchmarks, 34% 34% an impact of the COVID-19 pandemic, 39% as well as lower resales 38% 24% 26% • shares of regions remained unchanged y-o-y except 1Q 2019 1Q 2020 1Q 2019 1Q 2020 Ukraine (+2 pp) and other regions (-2 pp) Ukraine Europe MENA Ukraine Europe Mining sales CIS Southeast Asia Other regions Southeast Asia Other regions METINVEST H OLDI NG. C OM • 2% y-o-y decrease, primarily due to a change in the iron ore sales mix and geography amid weak demand in Europe, Price trends, FCA basis Total sales by currency in 1Q 2020 reduced pellet premiums, as well as lower coking coal selling prices US$/t US$ mn • consequently, share of Europe fell by 22 pp y-o-y to 27%, Other GBP while share of Southeast Asia rose by 25 pp y-o-y to 34% 2% 4% 1Q 2019 553 541 EUR 494 • share of premium Ukrainian market remained high at 38% 477 13% 1Q 2020 417 380 Sales in hard currencies (US$, US$-linked, EUR and GBP) 316 295 accounted for 81% in 1Q 2020 (+1 pp) UAH US$2,536 mn 15% US$ and 119 99 73 74 US$ linked 66% 1 IOC Pellets Pig iron Slabs Flat Long 2 products products 1. Iron ore concentrate 2. Excluding railway products 5
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