Investor Presentaiton
Gross Margin, SG&A and Cash Conversion
Gross margin
%
30%
25%
26%
25%
24%
23%
20%
13%
10%
8%
10%
GLALL
5%
8%
0%
2015
2016
2017
2018
2019
Seamless
Welded
Capex and cash conversion (b)
սլա $ՏՈ
68%
68%
67%
300
65%
70%
61%
61%
200
50%
293
273
236
219
100
208
30%
175
0
10%
2014
2015
2016
2017
2018
2019
Cash Conversion, %
SG&A and corporate overheads (a)
սլա $ՏՈ
800
600
544
552
524
518
437
400
200
0
2015
2016
2017
2018
2019
Key considerations
TMK
Seamless segment accounting for approx. 90% of consolidated gross
profit and demonstrates consistently superior margins
High level of vertical integration provides better control over costs and
allows to maintain resilience in margins
Significantly optimized lean cost structure due to stringent efficiency
measures
31
Source: TMK data including IPSCO results
Note:
(a) Based on IFRS financial statements. Calculated as Gross Profit less Operating profit
(b) Calculated as (Adjusted EBITDA - Capex) / Adjusted EBITDA. 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
TMKView entire presentation