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Investor Presentaiton

(US$mln)(a) Revenue Adjusted EBITDA (b) Adjusted EBITDA Margin (b) (%) TMK Key Consolidated Financial Highlights 2017 2016 2015 2014 2013 4,394 3,338 4,127 6,009 6,432 605 530 651 829 986 14% 16% 16% 14% 15% Profit (Loss) 30 166 (368) (217) 215 Net Profit Margin (%) 1% 5% n/a n/a 3% Pipe Sales ('000 tonnes) 3,781 3,458 3,871 4,402 4,287 Average Net Sales/tonne (US$) (c) 1,162 965 1,066 1,365 1,500 Cash Cost per tonne (US$)(d) 862 692 783 1,030 1,108 312 476 684 595 703 Cash Flow from Operating Activities Capital Expenditure(e) 236 175 208 293 397 Total Debt(f) 3,239 2,836 2,801 3,223 3,694 Net Debt(f) 2,688 2,479 2,471 2,939 3,568 Short-term Debt/Total Debt 18% 9% 21% 24% 11% 4.4x 4.7x 3.8x 3.5x 3.6x Net Debt/Adjusted EBITDA Adjusted EBITDA/Finance Costs 2.3x 2.0x 2.3x 3.6x 3.9x Source: TMK Consolidated Financial Statements for 2017, 2016, 2015 and 2014 (a) IFRS financials figures were rounded for the presentation's purposes. Minor differences with FS may arise due to rounding (b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items. (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 loans and borrowings less interest payable; Net Debt represents Total debt less cash and cash equivalents and short-term financial investments 43
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