jp morgan annual emea equity conference — london

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1 January 25 January 25 - - 26, 2007 26, 2007 JPMORGAN ANNUAL EMEA EQUITY CONFERENCE LONDON

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1

January 25January 25--26, 200726, 2007

JPMORGAN

ANNUAL EMEA EQUITY CONFERENCE

LONDON

2

DisclaimerDisclaimer

This 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 of Evraz Group S.A. (Evraz) or any of its subsidiaries in any jurisdiction or an inducement to enter 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 or commitment 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 the Evraz or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise 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, any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Evraz’s control that could cause the actual results, performance or achievements of Evraz to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or GDRs, financial risk management and the impact of general business and global economic conditions.

Such forward-looking statements are based on numerous assumptions regarding Evraz’s present and future business strategies and the environment in which Evraz Group S.A. will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances 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 Evraz expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in Evraz’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

Neither Evraz, nor any of its agents, employees or advisors intend or have 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.

3

Evraz HighlightsEvraz Highlights

Vertically integrated steel and mining business, among the 15 largest steel producers in the world

2006 Production of 16.1 million tonnes of crude steel and 14.5 million tonnes of rolled products

1H06 Revenue grew 5.3% y-o-y to $3,825 mln reflecting 23% increase in sales volumes to 8.3 million tonnes

1H06 EBITDA flat y-o-y at $1.1 bn, EBITDA margin remains strong at 29%

Leader in Russian long products market with 30-100% market share

High level of vertical integration and self-sufficiency in iron ore and coal

One of the lowest cost producers of steel in Russia and CIS with mines located close to steel production sites

Strong commitment to high standards of corporate governance

4

EVRAZ GROUPEVRAZ GROUP’’S MAIN LOCATIONSS MAIN LOCATIONS

NakhodkaSea Port

Neryungriugol

ZapSib

Mine 12

Raspadskaya

NKMK

YKU

EvrazRudaNTMK

VGOKKGOK

Moscow

Stratcor

Vitkovice Steel

Palini e Bertoli

Highveld (24.9%)

LuxembourgLondon

Stratcor

OSM

OSM

OSM

Steel mills Iron ore mining

Sea port Main export countriesCoal miningVanadium

5

VISION AND STRATEGIC GOALSVISION AND STRATEGIC GOALS

Our Vision is to be a world class steel and mining company

and one of the Top 5 most profitable steelmakers globally by

ROCE and EBITDA margin through:

Leadership in CIS construction and railway steel product markets

Strengthened positions in global flat product markets

Lowest costs secured by superior efficiency and 100% self-sufficiency in raw materials

Growing vanadium business

6

1H 2006 HIGHLIGHTS*1H 2006 HIGHLIGHTS*

Revenue grew y-o-y 5.3% to $3,825 mln backed by sales volumes increase of 23%

23% growth in Russian construction products sales volumes

Favourable domestic steel pricing environment

5.0x y-o-y increase in non-Russian sales to mature European and US markets to $714 mln

EBITDA flat y-o-y at $1.1 bn, EBITDA margin remains strong at 29%

Consolidated cash cost per tonne increased y-o-y by 6.8% to $235

$262 mln capital investment to improve efficiency

*Excluding Oregon Steel Mills operations

7

STRONG BALANCE SHEET STRONG BALANCE SHEET (excluding OSM)(excluding OSM)

Current credit ratings (reaffirmed after OSM tender offer): BB by Fitch; Ba3 by Moody’s; BB- by S&P

Well-capitalised balance sheet to fund future growth

1Net debt equals total debt less cash & cash equivalents and short-term bank deposits

1,374

2,394 2,652

1,094

1,736

1,883

1.0

0.5

0.9

0

500

1,000

1,500

2,000

2,500

3,000

2004 2005 LTM0

0.2

0.4

0.6

0.8

1

1.2

Total Debt Net Debt Net Debt/EBITDA

2Evraz have not prepared audited or reviewed financial statements for the 12 month period ended 30 June 2006. Financial indicators presented under LTM (last twelve months) are calculated as a sum of 1H06 financial results and FY05 less 1H05 financial results3ROCE represents profit from operations plus profit from equity investments less income tax over total equity plus interest bearing loans and lease average for the period

Net Debt-to-EBITDA Ratio Total Assets

4,253

6,663

7,317

20%

27%

67%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2004 2005 LTM0%

10%

20%

30%

40%

50%

60%

70%

80%

Total Assets ROCE

$ mln $ mln

2

13

2

8

STEEL SEGMENT*STEEL SEGMENT*

0

100

200

300

400

500

600

Rebars Sections Rails Billets Slabs

1H042H041H052H051H06

Russia50%

Asia28%

Europe16%

CIS3%

North and South

America3%

Prices for Main Steel ProductsSteel Segment Sales by Regions

Consolidated steel products sales volume up 23% to 8.3 mln tonnes

Excellent performance of the Russian construction market (sales volumes grew by 23%)

Sales into attractive European and US markets increased by a factor of 5

Non-Russia

$/tonne

Russia

*Excluding Oregon Steel Mills operations

9

STEEL SALES BY PRODUCT*STEEL SALES BY PRODUCT*

21% increase in semi-finished sales volumes driven by organic growth and world steel market demand

Strong plates sales growth due to acquisitions of premium Vitkovice Steel and Palini e Bertoli plate mills

(in volume terms)

Products (‘000 tonnes) 1H 2006 1H 2005 %

Semi-finished 4,164

2,197

830

789

139

181

8,300

3,443 21%

Construction 2,106 4%

Plates 194 328%

Railway 828 (5)%

Mining 123 13%

Other** 56 223%

Total 6,750 23%

*Excluding Oregon Steel Mills operations**Includes rounds, cut shapes, strips and other products

10

WELLWELL--POSITIONED POSITIONED IN DOMESTIC MARKETIN DOMESTIC MARKET

Russian market share by volume, 2005

Steel Consumption Growth Structure

Construction growth in Russia and CIS continues to outperform GDP

Russian and CIS steel consumption remains below global benchmarks

100%

84%

49%

30% 28%

0%

20%

40%

60%

80%

100%

Rails H-beams Chanels Rebars Rail-wheels

#1#1

#1

#1 #2

Enhanced leadership position in the rapidly growing construction market with estimated market share of 38%

2002 =100%

GDPConstruction:Rebar consumption

100

150

200

250

300

350

2002

2003

2004

2005

2006

2007

2008

2009

2010

400

Construction Output Forecast to Exceed GDP Growth

39,9

30,5 31,6 33,4 35,137,3

2005 2006 2007 2008 2009 2010

Pipes

Long Products

Flat Products0

20

40

60

80

100%

21%

42%

38%

18%

43%

39%

Source: Evraz, EIU, Chermet, Metall Expert

11

RUSSIAN AND CIS MARKETSRUSSIAN AND CIS MARKETS

Russia remains key market contributing 50% to total steel segment revenue

Total sales volumes increased by 13.8% to 3.65 million tonnes

Favourable pricing environment set to continue in 2H 2006 and beyond

Sales Mix Average Market Prices*

744573

784

663

541

499

871

879

714

597

1H05 1H06

Rebars Sections Rails Other finished Semis

+30%

+18%

+8%

-1%

+20%

‘000 tonnes $/tonne

100

250

400

550

700

850

1,000

Aug-

03Oct

-03

Dec-0

3Fe

b-04

Apr-0

4Ju

n-04

Aug-

04Oct

-04

Dec-0

4Fe

b-05

Apr-0

5Ju

n-05

Aug-

05Oct

-05

Dec-0

5Fe

b-06

Apr-0

6Ju

n-06

Aug-

06Oct

-06

Dec-0

6

H-beams Channels Angles Rebars

* On FCA basisSource: Metall Courier

12

NONNON--RUSSIAN SALES*RUSSIAN SALES*

1H06 steel sales volumes increased by 31.8% to 4.65 million tonnes

European assets (Vitkovice Steel and Palini e Bertoli) successfully integrated and contributed $454 mln to consolidated revenue while plates sales volumes increased 843%

Construction steel export volumes shifted to attractive Russian market

Non-Russian Sales Product Mix Non-Russian Prices for Slabs & Billets

1,4911,412

1,342

1,053

617

380

416

580

669

71

110

42

1H05 1H06

Billets Slabs Other semisConstruction Plates Other finished

6%

27%

60%

-28%

‘000 tonnes $/tonne

0

100

200

300

400

500

600

Aug-

03Oct

-03

Dec-0

3Fe

b-04

Apr-0

4Ju

n-04

Aug-

04Oct

-04

Dec-0

4Fe

b-05

Apr-0

5Ju

n-05

Aug-

05Oct

-05

Dec-0

5Fe

b-06

Apr-0

6Ju

n-06

Aug-

06Oct

-06

Dec-0

6

Billet (FOB, Far East) Slab (FOB, Far East)

Source: SBB

*Excluding Oregon Steel Mills operations

13

MINING SEGMENTMINING SEGMENT

1H06 Mining segment revenues decreased y-o-y by 19.2% to $480 mln

Iron ore sales volumes flat y-o-y at 8.4 mln tonnes

Decline in average prices of iron ore and coal

Iron ore self-sufficiency remains strong at 78%

Mining Segment Performance

4,198 4,418

2,898 2,794

1,397 1,181

1H05 1H06

Kachkanarsky GOK Evrazruda Vysokogorsky GOK

Iron Ore Production

‘000 tonnes$ mln

4110

594

480

253

133

1H05 1H06Revenues EBITDA Profit from assoc iates

14

NATURE OF VANADIUM MARKET

Best strength to weight ratio of common engineering materials

With 0.1% addition of vanadium in structured steel, strength can be increased by 10 to 20%; structures’ weight can be reduced by 15 to 25%

Sheet, 27%

Plate, 40%

Sections, 14%

Bars, 9%

Alloys, 7%

Chemicals, 3%

Steel industry (90%)High strength low alloy (HSLA) Steels

Full Alloy Steels

Tool Steels / Stainless Steel

Carbon Steels

Airspace industry (7%)Titanium alloys for jet engine parts, airframes, rockets, nuclear

New alloys for modern aircrafts and jets totals 20% of the weight (A380 and B787)

Chemicals and Batteries (3%)Catalyst for sulphuric acid and plastics

Dietary, glasses, pigments

Source: CRU

World Vanadium Market

15

StratcorStratcor

In April 2006, Evraz purchased a 73% economic interest in Stratcor, one of the world’s leading producers of vanadium products

Acquisition adds vanadium processing capabilities, significant technical know-how, and allows Evraz to capitalise on strong trends in vanadium market

Stratcor acquisition will markedly improve Evraz’s integration in vanadium products, and will allow the company to extract higher margins and cash flows from vanadium products

Income Statement (USD thousands) Production Highlights

2005

Sales 258,112

Gross Profit 131,932

Gross margin %% 51%

Operations margin %% 44%

Interest income 1,664

Profit from Operations 105,642

EBITDA 112,660

EBITDA margin %% 44%

Interest expense (2,553)

Income Tax (39,516)

Net profit 69,407

2005

Vametco (South Africa)000 lbs

V2O5

Nitrovan 9,480

FeV 980

V2O5 656

Stratcor Inc. (USA)

Production Feed (different vanadium products) 8,733

16

Highveld Steel and Vanadium

In July 2006 Evraz purchased 24.9% of Highveld Steel and Vanadium Corp. Ltd., a leading vanadium producer

Evraz benefits from a call-option allowing an increase in ownership up to 79%.

Transaction significantly increases vanadium processing capabilities

Improve Evraz’s integration in vanadium products, and will allow the company to extract higher margins and cash flows from vanadium products

Income Statement (USD thousands) Production Highlights

2005

Total steel – tons 735,307

Vanadium pentoxide – kg V2O5 4,406,811

Ferrovanadium and Ferrovanadium nitride – kg V 1,749,762

2005

Sales 1,133,914

Profit from Operations 439,461

Operations margin %% 39%

EBITDA 514,739

EBITDA margin %% 45%

Income Tax (180,032)

Net profit 303,645

17

COST STRUCTURECOST STRUCTURE

1H06 Cost of revenues up y-o-y 11.9% to $2,520 mln as a result of higher steel sales volumes, lower raw material prices and acquisitions impact

Consolidation of volumes of European assets contributed $253 mln to cost increase

SG&A expenses remain flat due to strict cost management

Risk of further cost increase concentrated in energy and labour expenses

Steel Segment Costs Mining Segment Costs

Raw materials20%

Staff20%

Depreciation7%

SG&A11%

Other18%

Energy24%Transport

10%

SG&A10%

Raw materials54%

Other8%

Staff8%

Energy7%

Depreciation3%

18

CAPEXCAPEX

Key focus on efficiency improvement at the front end of steel production

Implementation of major projects on track

Capital spending of $262 mln in 1H06 vs. $280 mln in 1H05

FY2006 capex annual budget estimated at $550 mln

On-goingRevamp of EAF at NKMK

On-goingInstallation of ISSM at Vitkovice Steel

On-going Reconstruction of converter shop at NTMK

CompleteRevamp of CB5 at NTMK

CompleteRevamp of BF5 at NTMK

StatusProject

19

Successful IPO of RaspadskayaSuccessful IPO of Raspadskaya

Russian leading

coking coal producer

One of the 10 largest producers of coking coal in the world

781 mln tonnes of high quality coking coal proved and probable reserves in Russia

Evraz interests remains at 40 %

Efficiency

Cash cost of concentrate production in the bottom quartile of the global cash cost curve (19$/t)

Operational efficiency on par with global peers

Compact integrated operating complex

Banks-managers

Credit Suisse, Deutsche UFG, Morgan Stanley

Listing 18% of the capital placed on RTS and MICEX

Pricing

$2.25 per share

Implied market value of $1.76bn

2.1 times oversubscribed

Strong financial

performance

EBITDA margin – c. 60% in each of the last two years

ROCE in 2005(1) – 31%

Growth potential

Target production volume growth 2006-2010 –12% CAGR

Projects under way to further strengthen Raspadskaya’s positions in domestic market

Growth of market share in Ukraine and Eastern Europe and access to rapidly growing markets of South East Asia

Production Growth

17.0

9.7

6.7

CAGR 2001-2005 - 10%

2001 2005 2010T

CAGR 2006-2010 - 12%

Source: Raspadskaya, IMC

421

541

218259

322

120127165

51

2004 2005 1H 2006

Revenue EBITDA Net income

Financial Highlights

‘mln tonnes

$ mln

20

Oregon Steel MillsOregon Steel Mills

In January 2007 Evraz successfully completes tender offer for shares ofOregon Steel with approximately 91.5% of shares tendered at $63.25 per share.

The acquisition of Oregon Steel represents a solid platform for Evraz as a footprint in North America.

Transaction secures an important place on the attractive plate market andin the expanding pipe business in North America.

The combined company will also be the leading rail producer globally

9

238

350

229

23%

-8%

19%16%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2003 2004 2005 2006E

-10%

-5%

0%

5%

10%

15%

20%

25%

Revenue EBITDA* EBITDA Margin

723

1,185 1,258

1,500

1,6351,725

1,4861,660

2,000

2003 2004 2005 2006E 2007E

Sales, million tonsFinancial Highlights

Source: Oregon Steel Mill

$ mln

21

Oregon Steel MillsOregon Steel Mills

Leading West Coast steel producer with total capacity of 2.3 million tonnes

Leading commodity and specialty plate producer in the Western United States

Leading rail producer in North America

Leading large diameter line pipe producer in North America

PortlandPlate MillStructural Tube MillCut-to-Length LineLarge Diameter Pipe Mill

PuebloSteel MillRails MillRod and Bar MillSteamless Pipe Mill

CamrosePipe Mill

Rocky MountainSteel Mill

801,000 tonnes48%

Oregon SteelMill Division

858,000 tonnes52%

2006E Sales by Product

Structural Tubing 77,000

5%

Welded Pipe 265,000 16%

Plate and Coil 516,000 31%Rail 448,000

27%

Seamless Tube 65,000 4%

Rod and Bar 288,000 17%

Source: Oregon Steel Mill

22

OSM US Peers Profitability

Superior profitability of OSM vs most US peers due to high margin product mix

Sales per tonne ratio of $846 in 2005 and $951 in 3Q06

EBITDA per tonne of $155 in 2005 and $249 in 3Q06

846

608 621

876

714

951

733702

957

740

Oregon Steel Mill Steel Dynamics Nucor Ipsco US Steel

2005 Q3 2006

Revenue per tonne (US$)

155

89

117135

294

249

121

167184

296

Oregon Steel Mill US Steel Nucor Steel Dynamics Ipsco

2005 Q3 2006

EBITDA(1) per tonne (US$)

(1) EBITDA is defined as the sum of net income, depreciation and amortization, interest, and income taxexpense and excludesfixed and other asset impairment charges,labor dispute settlement charges, settlement of litigationand loss on earlyextinguishment of debt

23

1H 2006 Evraz and Oregon 1H 2006 Evraz and Oregon Results OverviewResults Overview

EVRAZ

2005 1H 2006

3,825

1,096

28.7%

571

14.9%

8,300

6,508

1,860

29%

1,009

16%

12,200

OSM

2005 1H 2006

Revenue 1,258 704

EBITDA* 242 153

EBITDA margin 19% 22%

Net Profit** 116 77

Net Profit margin 9% 11%

Sales volumes*** (‘000 tonnes) 1,486 793

$ mln unless otherwise stated

*EBITDA represents profit from operations plus depreciation and amortisation, impairment of assets and loss (gain) on disposal of PP&E** Net profit attributable to equity holders of Evraz Group S.A. *** Steel Segment sales volumes

24

Evraz 2006 Production Results*Evraz 2006 Production Results*

6395

17085

842

9160

16137

588

Evraz (Mine12) Raspadskaya Yuzhkuzbassugol

20052006

4,053 4,275

2005 2006

Q4

9M

3,639

4,103

2005 2006

Q49M

3,218

3,610

2005 2006

Q49M

2,955

3,085

2005 2006

Q4

9M

Rolled Products, ‘000 tonnesPig Iron, ‘000 tonnes

+11.4%

+19.6%11,453 12,754

12,086 14,457

Steel, ‘000 tonnes

13,852 16,115

+16.3%

IRON ORE ‘000 tonnes

*Mine 12 operational results are consolidated into the Group since April 2005. Evraz Group holds 40% beneficial interest in OAO Raspadskaya and 50% interest in Yuzhkuzbassugol. Operational results of Yuzhkuzbassugol are consolidated into the Group since December 31, 2005, while operational results of OAO Raspadskaya are consolidated into the Group since March, 2004, and include production by MUK-96 and Razrez Raspadsky since their acquisition in May 31, 2006.

COAL**, ‘000 tonnes

+43.2%

+43.2%

(5.5)%

16,666 16,989+1.9%

**Excluding Oregon Steel Mills operations

25

Average Russian Market Prices for Long Products*

US$

100

250

400

550

700

850

1,000

Aug-

03Oct

-03

Dec-0

3Fe

b-04

Apr-0

4Ju

n-04

Aug-

04Oct

-04

Dec-0

4Fe

b-05

Apr-0

5Ju

n-05

Aug-

05Oct

-05

Dec-0

5Fe

b-06

Apr-0

6Ju

n-06

Aug-

06Oct

-06

Dec-0

6

H-beams Channels Angles Rebars

* On FCA basis

Source: Evraz market estimates

26

Non-Russian Prices for Slabs & Billets

US$

0

100

200

300

400

500

600

Aug-

03Oct

-03

Dec-0

3Fe

b-04

Apr-0

4Ju

n-04

Aug-

04Oct

-04

Dec-0

4Fe

b-05

Apr-0

5Ju

n-05

Aug-

05Oct

-05

Dec-0

5Fe

b-06

Apr-0

6Ju

n-06

Aug-

06Oct

-06

Dec-0

6

Billet (FOB, Far East) Slab (FOB, Far East)

Source: Metall-courier

27

+7 495 [email protected]

www.evraz.com