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Investor Presentaiton

TMK Key Consolidated Financial Highlights (US$mln)(a) Revenue Adjusted EBITDA (b) Adjusted EBITDA Margin (%) Profit (Loss) Net Profit Margin (%) 2013 2012 2011 6,432 6,688 6,754 952 1,028 1,047 15% 15% 15% 215 278 385 3% 4% 6% Pipe Sales ('000 tonnes) 4,287 4,238 4,185 Average Net Sales/tonne (US$)(c) 1,500 1,578 1,614 Cash Cost per tonne (US$) (d) 1,207 1,108 1,152 Cash Flow from Operating Activities 787 703 929 Capital Expenditure(e) 402 397 445 Total Debt(f) 3,787 3,694 3,885 Net Debt(f) 3,552 3,600 3,656 Short-term Debt/Total Debt 16% 11% 27% Net Debt/Adjusted EBITDA 3.4x 3.8x 3.6x Adjusted EBITDA/Finance Costs 3.8x 3.5x 3.5x (a) IFRS financials figures were rounded for the presentation's purposes. Minor differences with FS may arise due to rounding (b) Adjusted EBITDA is calculated as profit before tax plus finance costs minus finance income plus depreciation and amortisation adjusted for non-operating and non-recurrent items. In 1Q 2013 management amended its definition of Adjusted EBITDA to include accruals of bonuses to management and employees into the calculation of Adjusted EBITDA instead of actual cash payments. Management believes such an approach better reflects the Group's quarterly performance and eliminates fluctuations during the year. The comparative information in this presentation was adjusted accordingly. (c) Sales include other operations and is calculated as Revenue divided by sales volumes tonnes (d) Cash Cost per Tonne is calculated as Cost of Sales less Depreciation & Amortisation divided by sales volumes (e) Purchase of PP&E investing cash flows (f) Total debt represents interest bearing loans and borrowings plus liability under finance lease; Net debt represents Total debt less cash and cash equivalents and short-term financial investments Source: TMK Consolidated IFRS Financial Statements 29
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