Corporate presentation Dragon Capital 15 th Annual Ukraine Investor Conference 12-13 February 2019
Disclaimer This presentation and its contents are This presentation is directed solely at persons To the extent available, any industry and without limitation, any statements preceded by, followed by or including the words “targets”, confidential and may not be reproduced, outside the United Kingdom, or within the market data contained in this presentation has “believes”, “expects”, “aims”, “intends”, “may”, redistributed, published or passed on to any United Kingdom, to (i) persons with come from official or third party sources. Third “anticipates”, “would”, “could” person, directly or indirectly, in whole or in part, professional experience in matters relating to party industry publications, studies and surveys or similar for any purpose. If this presentation has been investments falling within Article 19(5) of the generally state that the data contained therein expressions or the negative thereof. Such received in error, it must be returned Financial Services and Markets Act 2000 have been obtained from sources believed to forward-looking statements involve known and immediately to Metinvest B.V. (the (Financial Promotion) Order 2005 as amended be reliable, but that there is no guarantee of the unknown risks, uncertainties and other “Company”) . (the “Order”), (ii) high net worth entities, and Company’s accuracy or completeness of such data. In important factors beyond the control that could cause the Company’s actual other persons to whom it may lawfully be addition, certain of the industry and market communicated, falling within Article 49(2)(a) to data contained in this presentation may come results, performance or achievements to be This presentation does not constitute or form (d) of the Order and (iii) persons to whom an from the Company's own internal research and materially different from future results, part of any advertisement of securities, any invitation or inducement to engage in estimates based on the knowledge and performance or achievements expressed or offer or invitation to sell or issue or any investment activity (within the meaning of experience of the Company's management in implied by such forward-looking statements. solicitation of any offer to purchase or section 21 of the Financial Services and the market in which the Company operates. Such forward-looking statements are based on subscribe for, any securities of the Company or Markets Act 2000) in connection with the issue While the Company believes that such numerous assumptions regarding the any of its subsidiaries in any jurisdiction, nor Company’s or sale of any securities of the Company or any research and estimates are reasonable and present and future business shall it or any part of it nor the fact of its member of its group may otherwise lawfully be reliable, they, and their underlying methodology strategies and the environment in which it will presentation or distribution form the basis of, or communicated or caused to be communicated and assumptions, have not been verified by operate in the future. These forward-looking be relied on in connection with, any contract or “relevant (all such persons above being any independent source for accuracy or statements speak only as at the date of this investment decision. persons”) . Any investment activity to which this completeness and are subject to change presentation. The Company expressly presentation relates will only be available to without notice. Accordingly, undue reliance disclaims any obligation or undertaking to This presentation is not directed to, or intended and will only be engaged with relevant persons. should not be placed on any of the industry or disseminate any updates or revisions to any for distribution to or use by, any person or Any person who is not a relevant person market data contained in this presentation. forward-looking statements contained herein to entity that is a citizen or resident of, or located should not act or rely on this presentation. reflect any change in its expectations with in, any locality, state, country or other regard thereto or any change in events, The presentation has been prepared using jurisdiction where such distribution or use conditions or circumstances on which any of No representation, warranty or undertaking, information available to the Company at the would be contrary to law or regulation or which such statements are based. express or implied, is made as to, and no time of preparation of the presentation. would require any registration or licensing reliance should be placed on, the fairness, External or other factors may have impacted within such jurisdiction. accuracy, completeness or correctness of the on the business of the Company and the Individual figures (including percentages) information or the opinions contained herein content of this presentation, since its appearing in this presentation have been This presentation is not an offer of securities and no reliance should be placed on such preparation. In addition all relevant information rounded according to standard business for sale in the United States. The Company’s information. None of the Company or any of its about the Company may not be included in this practice. Figures rounded in this manner may securities may not be offered or sold in the affiliates, advisors or representatives shall have presentation. The information in this not necessarily add up to the totals contained United States except pursuant to an exemption any liability whatsoever (in negligence or presentation has not been independently in a given table. However, actual values, and from, or transaction not subject to, the otherwise) for any loss howsoever arising from verified. not the figures rounded according to standard registration requirements of the United States any use of this presentation or its contents or business practice, were used in calculating the Securities Act of 1933. otherwise arising in connection with the percentages indicated in the text. This presentation contains forward-looking presentation. statements, which include all statements other than statements of historical facts, including, 2
11M 2018 financials and FY2018 production US$ mn 9M 2018 Oct-18 Nov-18 11M 2018 11M 2017 Change PL Revenues 9,063 932 917 10,912 8,016 36% - Metallurgical 7,712 793 758 9,263 6,635 40% - Mining 1,351 139 159 1,649 1,381 19% Adjusted EBITDA 1 , incl. 2,015 211 184 2,410 1,793 34% - Metallurgical 1,126 105 69 1,300 655 98% - Mining 946 104 105 1,155 1,286 -10% EBITDA margin 22% 23% 20% 22% 22% 0 pp - Metallurgical 15% 13% 9% 14% 10% 4 pp - Mining 33% 36% 34% 34% 40% -6 pp Cash flows Operating cash flows before W/C changes 1,721 172 160 2,053 1,554 32% - Change in W/C -349 -1 -65 -415 -793 -48% - Income taxes paid -245 -1 -57 -303 -138 >100% - Interest paid -208 -34 -4 -246 -127 94% Net cash from operating activities 919 136 34 1,089 496 >100% Net cash used in investing activities , incl. -335 -49 -74 -458 -386 19% - Purchase of PPE and IA -540 -80 -74 -694 -401 73% - Dividends received 346 31 0 377 0 n/a Net cash used in financing activities -393 -88 -39 -520 -138 >100% Free cash flow 2 584 87 -40 631 110 >100% US$ mn 30 Sep 2018 31 Oct 2018 30 Nov 2018 30 Nov 2018 31 Dec 2017 Change Gross debt 3 2,869 2,767 2,745 2,745 3,017 -9% Cash and cash equivalents 4 446 445 366 366 259 41% Net debt 5 2,257 2,238 2,345 2,345 2,298 2% Net debt 5 to LTM EBITDA 0.8x 0.8x 0.9x 0.9x 1.1x -0.2x Production 6 (kt) 2018 2017 Change Crude steel 7,323 7,361 -1% Coke 5,269 4,736 11% Iron ore concentrate 27,353 27,464 0% Coking coal concentrate 2,683 2,461 9% Source for 11M 2018 and 11M 2017 financials: monthly reports for January-November 2018 and 2017 1. Adjusted EBITDA is calculated as earnings before income tax, finance income and costs, depreciation and amortisation, impairment and devaluation 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 2. Free cash flow is calculated as net cash from operating activities less net cash used in investing activities 3. Gross debt is calculated as the sum of bank loans, bonds, trade finance, finance lease, seller notes and subordinated shareholder loans 3 4. Cash and cash equivalents do not include blocked cash for cash collateral under issued letters of credit and irrevocable bank guarantees, but do include cash blocked for foreign-currency purchases 5. Net debt is calculated as gross debt less cash and cash equivalents and less subordinated shareholder loans 6. Figures for 2017 have been updated to exclude production at assets, control over which was lost in March 2017
9M 2018 highlights
Recommend
More recommend
