Investor Presentaiton
TMK Key Strategic Pillars
Enhance leadership
in key segments
and enter new
product niches
Optimise vertical
integration
Enhance the sales
platform and
leverage TMK's
global scale
•
Dominate the Russian OCTG and line pipe markets
Remain in the TOP 3 leading OCTG producers in the USA
Increase the share of high-tech products in the Russian division's revenue to 50% by 2022 and
maintain a leading position in the Russian market for premium connections
Increase capacity utilization of steelmaking facilities through higher production volumes of steel billets
and other products, and maximize the financial impact
Expand presence in further processing of tubular products (drill pipe, coating)
Develop a service offering of ready-to use comprehensive engineering solutions for customers
Expand commercial footprint of TMK's products and services
Develop strategic partnerships with major customers and global consumers
Focus on offering products that have a global market and stable demand outlook, i.e.high-tech seamless
pipes and premium connections
Focus on
innovation and
digitalisation
Enhance
operational
excellence
☐
■
Develop e-commerce across all divisions via TMKe Trade, the first tubular goods Internet shop in Russia
Use cutting-edge digital technology to improve product quality and cut costs
Foster a culture of continuous operational improvements and production cost cutting
Ensure consistent product quality through increasing the sustainability of technologies and personnel
qualification
Maximize operating cash flow
Monetize international assets, strategic alliances and joint ventures in all regions of
Reduce leverage to 3.0x Net Debt(a)/ EBITDA (b) as of FY2019
presence
Strengthen
financial
performance and
investment appeal
Reduce leverage to 2.5x Net Debt (a)/ EBITDA (b) as of FY2021
Note: (a) Net Debt represents interest bearing loans and borrowings plus liability under finance lease less cash and cash equivalents and short-term financial investments
(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
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