1 1 Six months 2003 US GAAP interim financial results November, 2003 Moscow.
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Transcript of 1 1 Six months 2003 US GAAP interim financial results November, 2003 Moscow.
22
Income Statement HighlightsIncome Statement Highlights
$mlnSix months
2003Six months
2002%
Sales 215.7 202.9 106%
Gross margin 61.2 54.6 112%
EBITDA 24.5 35.4 69%
EBIT 10.4 24.8 42%
EBT 14.8 16.1 92%
Net Income 14.1 4.6 307%
33
Analysis of changes in Income statementAnalysis of changes in Income statement
$mlnSix months
2003
including
Six months 2002
(excluding effect of
provisions)
Changes (organic
component-
Six months 2002)
Organic component
(excluding effect of provisions)
Acquisition component
Sales 215.7 182.1 33.6 202.9 (20.8)
Gross margin
61.2 54.6 6.6 54.6 -
EBITDA 24.5 23.7 (0.2) 27.5 (3.8)
EBIT 10.4 12.9 (3.5) 16.8 (3.9)
44
Analysis of changes in EBITDAAnalysis of changes in EBITDA
$mlnSix
months 2003
including
Six months 2002
Changes (organic
component -
Six months 2002)
Organic component
Acquisition component
EBITDA 24.5 24.7 (0.2) 35.4 (10.7)
Gross margin 61.2 54.6 6.6 54.6 -
G&A and S&D (51.2) (41.7) (9.5) (37.7) (4.0)
Depreciation and amortization
14.0 10.8 3.2 10.6 0.2
Provisions 0.5 1 (0.5) 7.9 (6.9)
55
Segmentation – key resultsSegmentation – key results
$mln
OILE
Q
MIN
EQ
ST
EE
L
NP
PE
Q
SH
IP
MM
S
Other
Intersegment
sales
To
tal
Sales, six months 2003
37.8 23.9 50.2 37.0 44.7 62.1 23.9 (63.9) 215.7
Gross
Margin, six months 2003
31% 21% 22% 34% 16% 15% 19% 28%
Sales, six months 2002
39.1 18.1 61.5 37.1 24.0 105.6 26.0 (108.5) 202.9
Gross
Margin, six months 2002
25% 19% 15% 38% 13% 11% 13% 27%
66
Change in sales by segmentChange in sales by segment$mln Six
months 2003
Six months
2002Change
Change, %
Change structure
O&G equipment
37.8 39.1 (1.3) (3.3%) (10.2%)
NPP equipment
37.0 37.1 (0.1) 0% (0.8%)
%Shipbuilding 44.7 24.0 20.7 86.3% 161.7%Mining equipment
23.9 18.1 5.8 32.0% 45.3%
Special Steel 50.2 61.5 (11.3) (18.4%) (88.3%)Machinery manufacturing services
62.1 105.6 (43.5) (41.2%) (339.8%)
Other 23.9 26.0 (2.1) (8.1%) (16.4%)
Intersegment sales
(63.9) (108.5) 44.6 41.1% 348.4%
Total 215.7 202.9 12.8 6.3% 100.0%
77
Change in gross margin by segmentChange in gross margin by segment
$mln.
Six months
2003
Six months
2002Change
Change,%
Change structure
O&G equipment
11.9 9.7 2.2 22.7% 33.3%
NPP equipment
12.7 14.1 (1.4) (9.9%) (21.2%)
Shipbuilding 7.2 3.0 4.2 140.0% 63.6%
Mining equipment
4.9 3.4 1.5 44.1% 22.7%
Special Steel 10.9 9.0 1.9 21.1% 28.8%
Machinery manufacturing services
9.0 11.9 (2.9) (24.4%) (43.9%)
Other 4.6 3.5 1.1 (31.4%) 16.7%
Total 61.2 54.6 6.6 12.1% 100.0%
88
Change in EBITDA by segmentChange in EBITDA by segment$mln. Six
months 2003
Six months
2002Change Change, %
Change structure
O&G equipment
3.2 7.1 (3.9) (54.9%) 35.8%
NPP equipment
7.1 7.3 (0.2) (2.7%) 1.8%
Shipbuilding 4.0 1.2 2.8 233.3% (25.7%)Mining equipment
0.7 0.5 0.2 40.0% (1.8%)
Special Steel 9.0 7.4 1.6 21.6% (14.7%)Machinery manufacturing services
5.1 14.1 (9) (63.8%) 82.6%
Other (4.6) (2.2) (2.4) (109.1%) 22.0%
Total 24.5 35.4 (10.9) (30.8)% 100.0%
99
ProfitabilityProfitabilitySix months
2003Six months
2002
Sales, $ mln 215.7 202.9
Gross margin 28.4% 26.9%
EBITDA 11.4% 17.4%
EBIT 4.8% 12.2%
Net Income 6.5% 2.3%
1010
Balance Sheet HighlightsBalance Sheet Highlights
$mln Six months 2003
Six months 2002
Change %
Current Assets 477.3 346.0 131.3 38%
Total Assets 784.0 592.5 191.5 32%
Current Liabilities
381.6 283.7 97.9 35%
Total Liabilities 573.1 394.0 179.1 45%
NWC 95.7 62.3 33.4 54%
1111
Key RatiosKey RatiosSix months
2003Six months
2002
Current ratio 1.25 1.07Quick ratio 0.17 0.26NWC to Total Assets 12% 4%Total Liabilities to Total Assets
73% 73%
Turnover (days)Assets 582 472Inventories 215 200Trade accounts receivable 37 40NWC 67 15
1212
Income statement net of non-cash effectIncome statement net of non-cash effect$th
Six months 2003
Six months 2002
Income after taxes and minority interest 14 148 4 590
Minority interest (2 518) 2 586
Deferred tax 1 599 5 379
Operating provisions (475) (6 442)
Non-operating provisions (556) -
Deferred payment* 3 066 3 206
Minority interest on deferred payment (752) (786)
Total adjusted net income 14 472 8 533
Depreciation 13 001 11 305
Net income + Depreciation 27 473 19 838* represented payment for NPPE that is due upon the commissioning of the respective power plants
1313
SG&ASG&A
$th6 months
20036 months
2002Change
Selling 5 623 5 486 137 2.5%
G&A 45 625 32 233 13 392 41.5%
Total 51 248 37 719 13 529 36%
1414
G&A expenses ($th)G&A expenses ($th)Total 6 months 2003 G&A
expensesOrganic
componentAcquisition component
45 625 37 537 8 088
Organic component items
Six months
2003
Six months
2002Change
Change structure
Payroll 13 416 9 762 3 654 37% 69%Unified Social Tax 4 270 3 222 1 048 33% 20%Road User’s Tax - 2 096 (2 096) (100%) (40%)Rent of land (or land tax) 1 758 1 269 489 39% 9%Depreciation 829 577 252 44% 5%Property insurance 2 206 1 839 367 20% 7%Repairs & maintenance 2 543 2 159 384 18% 7%Utilities 9 348 8 350 998 12% 19%Other 3 164 2 958 206 7% 4%
Total organic component
37 537 32 233 5 303 16% 100%
1515
Selling expenses ($th)Selling expenses ($th)Total 6 months 2003 Selling
expensesOrganic
componentAcquisition component
5 623 4 243 1 380
Organic component items
Six months
2003
Six months
2002Change
Change structure
Transport / customs / packaging / commission
3 135 4 123 (988) (24%) 79%
Advertising 35 27 8 30% (1%)
Other 1 073 1 336 (263) (27%) 21%
Total organic component
4 243 5 486 (1 243) (23%) 100%
1616
Debt dynamicsDebt dynamics
$mlnSix months
2003Year-end
2002Six months
2002
Long-term debt(incl. non-convertible bonds)
88.4** 61.1* 32.2
Short-term debt 54.1 53.3 48.4
Current portion of long-term debt 4.1 3.7 5.2
Total debt 146.6 118.1 85.8
Interest expense 8.5 6.0
Capitalized interest 0.9 0.5
Interest coverageEBITDA / (Interest expense+Capitalized interest)
2.6 5.4
* Increase in long term debt due to CLN issuance** Increase in long term debt due to issuance of non-convertible bonds
1717
Effective interest rateEffective interest rate
$mln Six months 2003 Six months 2002
Average debt 131.1 74.8
Interest expense 8.5 6.0
Capitalized interest 0.9 0.5
Effective interest rate 14% 17%
1818
Trade a/c receivable, payable & advancesTrade a/c receivable, payable & advances
* Increase is due to advances for a diesel submarine for The Chinese Navy **Increase is due to advances received from Atomstroyexport* Increase is due to advances for a diesel submarine for The Chinese Navy **Increase is due to advances received from Atomstroyexport
$mlnYear 2002
ASE
adj
Year 2002
Adjusted
Six months
2003
Change
%
Short-term trade a/c
receivable54.6 (9.4) 45.2 34 (25%)
Due from related parties 2.9 9.4 12.3 19.5 59%
Long-term trade a/c
receivable13.5 (13.5) - 3.9 100%
Due from related parties, long-term
2.4 13.5 15.9 15.3 (4%)
Short-term trade a/c payable
32.3 (3.2) 29.1 33.4 15%
Advances received * 91.1 (40.6) 50.5 105.5 109%
Due to related parties** 5.1 43.8 48.9 78.5 61%
1919
InventoryInventory
$mlnSix
months 2003
Six months
2002Change
Change,
%Change
structure
Materials and spare parts
75.2 61.5 13.7 22% 35%
Work-in-progress 99 83.6 15.4 18% 39%
Finished goods 50.7 41.2 9.5 23% 24%
Total inventories, at cost
224.9 186.3 38.6 21% 97%
Provision for obsolete inventories
(23.5) (24.4) 0.9 (4%) 2%
Total inventories, net 201.4 161.7 39.7 25% 100%
2020
Other current assetsOther current assets
($mln) Six months 2003
Taxes receivable 54.7
Other current assets 29.3
Total 84.0
2121
Plant and equipmentPlant and equipment
($mln)
PPE as of December 31, 2002 201.4
Cumulative translation adjustment 9.1
PP&E of new subs (excl. effect of allocation of negative goodwill)
1.4
Additions 16.8
Disposals (8.3)
Depreciation for the year (13.0)
Other 0.5
PPE as of June 30, 2003 207.9