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Presentation on theme: "INTERPIPE."— Presentation transcript:


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Disclaimer The materials contained herein (the “Materials”) have been prepared by Interpipe Limited (the “Company”) and its subsidiaries (the “Group”) solely for use at the presentation to investors on April 18, By accepting the Materials or attending such presentation, you are agreeing to maintain absolute confidentiality regarding the information disclosed in the Materials until notified by the Company. The information set out herein is subject to updating, completion, revision, verification and amendment and such information may change materially. The Company and its respective affiliates is not under any obligation to update or keep current the information contained in the Materials or in the presentation to which it relates and any opinions expressed in them are subject to change without notice. The Company and its respective affiliates, advisors or representatives shall not have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of the Materials. The information contained in the Materials has not been independently verified. The Materials are strictly confidential and do not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should they or any part of them form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any person considering the purchase of any securities of the Company must inform itself independently based solely on the Company’s prospectus and any amendments or supplements thereto (the “Prospectus”) before taking any investment decision. The Prospectus, when issued, may contain information different from the information contained in the Materials. The Materials have been made provided to you solely for your information and background and are subject to amendment. The Materials (or any part of them) may not be reproduced or redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior written consent of the Company. Failure to comply with this restriction may constitute a violation of applicable securities laws. No representation or warranty, expressed or implied, is made by the Company or any of its respective affiliates as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. The Company, its advisers, connected persons or any other person do not accept any liability for any loss howsoever arising, directly or indirectly, from a reliance on the Materials. 7LLD09610_Client Screenshow

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Disclaimer The Materials may include forward-looking statements. These forward-looking statements are statements regarding the Group’s intentions, estimates, forecasts, projections, beliefs or current expectations concerning, among other things, the Group’s results of operations, financial condition, liquidity, prospects, growth, strategies and the steel pipe and railway wheel industries. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Group cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industries in which it operates may differ materially from those expressed, implied or suggested by the forward-looking statements contained in the Materials. In addition, even if the Group’s results of operations, financial condition and liquidity and the development of the industries in which it operates are consistent with the forward-looking statements contained in the Materials, those results or developments may not be indicative of results or developments in future periods. Neither the Company nor the Group undertake to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of the Materials. The Materials are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Materials are not for publication, release or distribution in Australia, Canada, Japan or the United States. The Materials and the information contained herein are not an offer of securities for sale in the United States and may not be distributed to, or be viewed by, any US person within the meaning of Regulation S under the US Securities Act of 1933, as amended. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company that will contain detailed information about the Group and management, as well as financial statements. This communication is only directed at (i) persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (iii) other persons to whom it may lawfully be communicated, falling within Article 49(2) (a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any person who is not a Relevant Person should not act or rely on this communication or any of its contents. Any investment or investment activity to which these materials relate is available only to Relevant Persons and will be engaged in only with Relevant Persons. Certain information in this presentation is derived from annual reports of the Group’s competitors. While the Company has accurately reproduced such third-party information, it has not independently verified such information. Further, financial data derived from such third-party information (including EBITDA, cost of goods sold, revenue and ratios based thereon) may be calculated on a different basis from the Company. 7LLD09610_Client Screenshow

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Agenda Interpipe - presentation Company overview Interpipe overview and highlights Financial overview Key takeaways 7LLD09610_Client Screenshow

5 Company overview 5

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Interpipe at a glance Key highlights Key products Major global producer of seamless pipes, 2nd largest producer of forged railway wheels in the world in 2006 Focused on high-margin products: 79% of revenue in pipe business from seamless segment with 23% EBITDA(1) margin (2007) and 36% EBITDA(1) margin in wheels business (2007) Year-on-year growth in EBITDA(1) of 17% (2006 to 2007) Low cost compared to key competitors and vertically integrated Diversified global customer base Logistically well connected to key markets in CIS, MENA and Europe Comprehensive strategy of maintaining cost leadership compared to key competitors, upgrading product portfolio to higher margin products, and growing in attractive markets Strategic US$1.7 billion investment program under way OCTG Line pipe We are pleased to present our Company Interpipe today. We are Special pipes Railway wheels EBITDA represents in this presentation Adjusted EBITDA numbers, which are recalculated as profit from operations plus depreciation and amortisation, impairment of assets and loss (gain) on dispositions of property plant and equipment, translation differences and other non-recurring items. Company overview 7LLD09610_Client Screenshow 6

7 Interpipe manufactures a full range of steel pipe products
Seamless pipes Examples of products Interpipe produces seamless pipes with: Diameters measuring from 32mm to 377mm Wall thickness measuring from 3mm to 60mm Interpipe seamless product range comprises: Seamless OCTG, including drill pipe, surface casing, production casing and production tubing VAM compatible UPJ premium joints Seamless transportation line pipes Seamless special application pipes, which include boiler pipes, roller pipes, pipes for submerged pump stations, precision pipes and cold drawn pipes Seamless industrial pipes OCTG Linepipe Welded pipes Interpipe produces welded pipes with: Diameters measuring from 15mm to 1,020mm Wall thickness measuring from 1mm to 15mm Interpipe welded product range comprises: Transportation line welded pipes Industrial welded pipes Special pipes Industrial applications pipes Company overview 7LLD09610_Client Screenshow

8 Interpipe is the largest exporter of railway wheels
Overview of wheels products Examples of products Interpipe is certified to supply its products to all major wheels markets, for an extensive range of forged wheels used for freight cars, passenger carriages, locomotives and underground trains Interpipe produces approximately 240 different designs of railway wheels and tyres According to the European Railway Wheels Association (“ERWA”) Interpipe was the largest exporter of railway wheels worldwide, and the second largest producer of forged railway wheels worldwide in 2006 Interpipe estimates its worldwide market share was 12% by production volume in 2007 Interpipe has a well diversified customer base across 23 countries Source: ERWA, SCI Verkehr GmbH Company overview 7LLD09610_Client Screenshow

9 Interpipe is a global player in the most attractive pipes and wheels markets
In 2007, pipes were sold in 75 countries, wheels – in 23 Russia US$ 510m (37%) US$ 52m (14%) Europe US$ 119m (9%) US$ 59m (16%) Ukraine US$ 284m (20%) US$ 211m (57%) Other CIS US$ 264m (19%) US$ 33m (9%) NAFTA US$40m (3%) US$2m (<1%) MENA US$ 171m (12%) US$ 2m (<1%) We are a global player and are successfully selling our products across the world’s most attractive markets for pipes and wheels including 75 different countries for pipes and 23 countries for wheels In addition, we are geographically and logistically well connected to serve fastest growing markets such as CIS, MENA and Asia We aim to develop direct relationships with our customers and that is why we are continuously enlarging our warehousing capabilities Main Interpipe sales directions: Region Wheel revenue (share of wheels revenue) Pipe revenue (share of pipes revenue) pipes wheels Company overview 9

10 Technology & Energy Company
Different customer concentration for pipes and wheels reflects market structure Key pipes customers Key wheels customers Technology & Energy Company Share of revenue top 10 customers by revenue- pipes (2007) Share of revenue top 10 customers by revenue - wheels (2007) Share of top 10 customers Share of top 10 customers 25% 64% Discuss VIP accounts for the important customers Our customer base in pipes business is highly diversified with top 10 customers accounting only for x% of our sales in 2007 Relatively concentrated customer base in wheels segment, but significant part of sales is already contracted Approximately 1000 customers Largest customer, Gazprom neft, accounts for 5% of pipes’ revenue (2007) Approximately 90 customers Largest customer, Ukrainian Railways, accounts for 12% of wheels’ revenue (2007) Company overview 10

11 Integrated business model
Steel production Pipe & wheel production Selling to customers globally 100% of steel billets for wheels and 32% for seamless pipes produced internally in 2007 Steel pipes and wheels are produced and sold to internal trading companies Wheels and pipes sold to end customers and distributors through sales offices and warehouses located in strategic markets Dneprostal NTRP Steel billets produced Wheels DOMESTIC SALES NTRP Open Hearth Furnace Seamless and welded pipes Ukraine Raw materials supplied from outside (pig iron, fero alloys, oil, natural gas, electricity) NMPP Kazakhstan Welded pipes EXTERNAL SUPPLIERS OF RAW MATERIALS End customer INTERPIPE SALES OFFICES Dneprovtormet Scrap Metal Processing Plant Russia LLC Niko Tube UAE We have high and increasing level of vertical integration: 100% self-sufficiency in scrap supplied by subsidiary Our self-sufficiency in steel will increase from ca.50% to almost 100% after EAF implementation completion in 2012 Discuss sales channels Seamless pipes USA Switzerland Company overview 7LLD09610_Client Screenshow 11

12 Interpipe overview and highlights

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19% We are focused on seamless pipe segment with high margins and high barriers to entry Pipe segment (2007) Barriers to Entry Interpipe Position EBITDA split Capital intensive Two operating plants with total rolling capacity of 1.6 mt per year and finishing capacity of 1.3 mt per year 83% Seamless pipes Welded pipes 17% EBITDA margin Industry and customer certification requirements Certified by the industry bodies (API, Bureau Veritas, TÜV) and customers (KOC, ADNOC) 23% 17% Our leading positions in the seamless segment are further protected by the presence of high barriers to entry for potential competitors into the seamless sector Briefly discuss each barrier and Interpipe position Know-how barriers Experienced work force Welded pipes Seamless pipes Interpipe overview and highlights 7LLD09610_Client Screenshow 13

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Our product line is focused on the dynamically growing and highly profitable Oil & Gas Industry Sales, 2007 Oil & Gas (OCTG and linepipe) Key drivers Oil prices Rig count Scope of drilling Oil production Exploration and production Capex Market structure Oil and gas majors Oil and gas national companies Small-scale oil and gas companies Pipeline contractors Traders and stockists Briefly describe 3 major consumer groups Interpipe is focused on highest growth/highest margins Oil & Gas segment Interpipe overview and highlights 7LLD09610_Client Screenshow 14

15 Average monthly wages (2006)
583 We have a strong cost position… Pipes COGS per ton of sold pipes (2007)(1) Low cost environment in Ukraine Electricity costs (2006) Average monthly wages (2006) Source: Company accounts for Ukraine, IEA for NAFTA and W. Europe (1) Average annual wages divided by number of employees Source: EIU Maximizing benefits from our favourable location close to strategic markets Dnepropetrovsk Russia EU Middle East Other CIS Compact layout of production assets, with all plants within 120 km of headquarters Major suppliers of raw materials within km (1) COGS and tonnes (other that with respect to Interpipe) are as presented in the annual report of each company without adjustment, all figures are IFRS based Source: Companies annual reports Interpipe overview and highlights 15 15

16 …flexible products delivery worldwide…
Transportation cost advantage through nearby railway junction and sea ports, as well as proximity to key markets such as Russia, Middle East and Europe Third party inspections can be provided on request by Bureau Veritas, SGS, Bureau Franke, Moody International, Lloyds Register and others. Interpipe overview and highlights

17 … and high and increasing vertical integration
2.062 … and high and increasing vertical integration Dneprovtormet fully covers Interpipe’s demand for scrap Scrap supply and demand (kt/year) Scrap sourced from a company which will be consolidated into Interpipe 2nd largest scrap processor in Ukraine Capacity expansion program approved with investments of US$35 million until 2012 targeting the maintenance of full self-sufficiency in view of expected increase in demand by electric arc furnaces (EAF) 2007 2012 target Vtormet (supply) OHF (demand) Vtormet (supply) EAF (demand)(1) (1) Based on Danielle contract Source: Company data Self-sufficiency in billets close to 50% and increasing further In-house billet production 4 open hearth furnaces (OHF) with capacity of 750,000 tons of billets per year In 2012 two electric arc furnaces (EAF) with expected capacity of 2.2 mt of billets per year are expected to be fully operational targeting close to full self-sufficiency Share of billets produced in-house for seamless pipes and wheels What further increases Interpipe’s investment attractiveness is our increasing level of vertical integration and therefore ability to further increase margins: Today our scrap demand is 100% satisfied by the integrated subsidiary called Dneprovtoemnt and will further be 100% satisfied even with the implementation of the EAF in the future through a capital program at Dneprovtoemnt aimed at increasing its capacity Already mentioned implementation of the EAF will increase our steel billets self-sufficiency from 50% to almost 100% by 2012 We are also looking at other potential opportunities to increase our vertical integration in order not to be depended on world commodity prices for our products OHF self-sufficiency 2012 target - EAF self-sufficiency(1) (1) Based on Danielle contract Source: Company data Interpipe overview and highlights 17 17

18 A comprehensive strategic investment program is under way
Capital Expenditure*, US$mln. Focus on oil and gas: OCTG and line pipe Focus on high margin product Increase vertical integration Reduce energy and labor costs Construction of a new seamless pipes mill** 6 578 Construction of a new EAF mill*** 291 387 Upgrade of existing seamless pipes capacities**** 116 214 Coating line for welded pipes 9 - Finishing line for wheels 23 Modernization of scrap processor 11 15 TOTAL 456 1193 We have put in place a coherent investment program aimed to achieve 3 major investment objectives: increase seamless capacity, improve product portfolio and lower cost per ton Discuss major investment projects: how they correspond to the outlined objectives, estimated costs and timing * Does not include capital expenditures for Management Information System and capital maintenance ** Final decision of the board has not been accepted yet. Decision of the board is expected in Q *** Includes a U.S. $ 155 mln. Investments into the second phase of EAF still under discussion. Decision of the board is expected in Q4 2008 **** Includes a U.S. $ 65 mln. for which the final decision of the board has not been accepted. Decision of the board is expected in Q4 2008 Interpipe overview and highlights

19 Best practice corporate governance
…and best practice corporate governance supporting our strategy Best practice corporate governance Board of directors is established in compliance with UK Combined Code on Corporate Governance: 3 independent directors (INEDs) 3 BoD committees :Remuneration, Audit and Nomination Audit and Nomination committees headed by INEDs Our INEDs have strong and recognized experience: Nikolay Tsekhomskiy (Chairman of Audit Committee): Big 4 audit experience (Ernst & Young), executive positions in major Russian public companies (MTS, VTB), familiarity with IPO and post-IPO processes Jean Pierre Saltiel (Chairman of Nomination Committee): executive and supervisory positions in renowned Ukrainian, French and international economic and industrial bodies Richard P. Norris: executive positions in the oil & gas and mining industries, extensive experience in the areas of tax, treasury, corporate finance and risk management We have implemented best practice corporate governance standards Our BoD is established in accordance with UK Corporate Governance Combined Code Furthermore, investors will have substantial upside potential due to strategic flexibility of current shareholder Interpipe overview and highlights

20 Corporate structure, ensuring effective and efficient operations
INTERPIPE LLC 100% 20.77% 95.95% 86.47% 72.58% 100% Saleks Investments Limited OJSC Interpipe NTRP OJSC Dneprovtormet OJSC Interpipe NMPP LLC Interpipe Niko Tube Steel One Limited 60% 100% LLC Interpipe-M 99,9% 12% LLC Interpipe Management LLC Dneprosteel 100% LLC Interpipe Kazakhstan 25.01% 25.01% 30.01% 99,9% 100% INTERPIPE EUROPE S.A. CJSC Nikopolsky Reparing Plant CJSC Nikopolsky Plant of Technological Tools CJSC Power generation 0,01% 100% KLW Wheelco S.A. 100% NORTH AMERICAN INTERPIPE, Inc 100% Interpipe Middle East 100% LLC Interpipe Ukraine Cyprus holding companies Management company registered in Ukraine Ukrainian production facilities Commercial companies (Ukraine, Russia, Kazakhstan, Switzerland, US, UAE) Central trading entity based in Ukraine Interpipe overview and highlights 7LLD09610_Client Screenshow

21 Financial overview 21

22 Strong financial results with 17% growth in EBITDA
Interpipe Pipes Wheels Total Seamless Welded %chg %chg %chg %chg Volumes (kt) % (1)% % 1,427 1,467 3% Revenue (US$m) , % % % 1,442(1) 1,792(1) 24% EBITDA (US$m) % % % 375(2) 438(2) 17% EBITDA margin (%) 25.8% 22.9% 16.1% 16.7% 35.3% 35.9% 26.0% 24.5% Revenue split (2007) Revenue from top 5 customers (2007) We operate in three segments which are seamless pipes, welded pipes and wheels, both forged and casted This year we were successful in delivering 24% growth in revenue terms and are looking to maintain strong growth rates in the future Even though from a cost position 2007 was a tough year due to rising raw materials costs, which caused industry-wide decrease in EBITDA margin – we were successful in substantially passing the increased costs to the end customers and succeeded in growing EBITDA number by 17% year on year Overall, our pipe business is highly diversified with top five customers accounting only for 19% of segment revenue in 2007 and only 20% of revenues coming from the domestic market. We will further strive to diversify our customer base and tap into new geographical markets in the future Our Wheels business is more dependent on Ukrainian market and largest customers, however ca. x% of sales is already contracted; One of our most important wheels customer is Ukrainian railways and we successfully agreed with them a 5-year framework agreement Includes unallocated items of US$13m in 2006 and US$23m in 2007 Includes unallocated items of US$1m in 2006 and US$3m in 2007 Financial overview 7LLD09610_Client Screenshow 7LLD09610_Client Screenshow

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Strong, diversified revenue growth in attractive markets – seamless pipes Overview Seamless pipes revenue split Overall revenue of seamless pipes up by 24% Fastest growth in strategic markets: Russia (48%) and other CIS countries (45%) Strong increase in revenues in attractive MEA market by 24% Maintaining strong position in the domestic market (14% growth) 1,101 +24% Growth 1% (40)% 4% (44)% 15% 24% 891 Other 2% 8% (6)% NAFTA 8% MEA 15% 17% 45% Europe 10% Other CIS 14% 39% 48% Russia 33% Ukraine 18% 16% 14% Financial overview 7LLD09610_Client Screenshow

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Focused geographical growth and change in product portfolio – welded pipes Overview Welded pipes revenue split +25% 297 Welded pipes revenue increase by 25% Focused growth on domestic and other CIS countries in high margin line pipes segment Increase in welded pipes revenue due to the substitution of general use pipes by higher margin line pipes Growth 12% (16)% 237 MEA Europe 17% 26% 140% Other CIS 14% 27% (7)% Russia 36% 35% Ukraine 32% 33% Financial overview 7LLD09610_Client Screenshow

25 Improved position of the global player - wheels
Overview Wheels revenue split +23% 371 Growth Wheels revenue increase by 23% Continued growth in revenues on Ukrainian, Russian and European markets Further penetration into growing Indian market 3% 38% <1% (92)% 301 16% 19% Other 3% NAFTA 8% 9% 15% Europe 16% 14% 87% Other CIS 10% Russia 9% 57% 31% 54% Ukraine Financial overview 7LLD09610_Client Screenshow

26 Maintaining cost leadership position
Overview Cost of sales, US$ mln. We successfully coped with increasing volatility of the steel prices, as well as concentrating our efforts on higher value-added products Costs under our control were kept within target We benefited substantially from existing vertical integration into steel in our wheels production. Growth +33% 1,243 2% 7% 3% 6% 4% 36% 5% 5% 937 6% 12% 2% 9% 38% 4% 4% 6% 7% Revenue and Operating cost per ton 9% 71% 39% 68% -US$8 +US$184 +US$211 +US$184 +US$190 Financial overview 7LLD09610_Client Screenshow

27 Shareholders’ value in Focus - EBITDA
Overview EBITDA evolution EBITDA indicator has witnessed substantial increase both in absolute terms as well as in per tonne terms in 2007 Growth,% +17% 438 17% 375 EBITDA per ton 30% 25% 28% 11% 32% 10% +24% +5% 61% 58% 10% +31% Financial overview 7LLD09610_Client Screenshow

28 Capital structure re-engineering - Gearing
Overview Significant financial flexibility Strategic capital expenditure program as well as increased investment into working capital arising from business expansion are adequately financed by external borrowings Going forward, we are focused on sustaining a controlled level of debt to equity maximizing benefits for the shareholders and keeping financial risks at acceptable level (internal target for gearing 1:1) Debut Eurobonds issue in 2007 with credit ratings “B+” obtained from Fitch and S&P Proven record of cooperation with leading financial institutions (both international and local) The most restrictive of our existing external financial covenants leaves enough flexibility for financial manoeuvre (controlled by internal targets setting): - Net Debt/EBITDA: max 2.5:1 - Debt/Equity: max 1.5:1 - EBIT/Interest cover: min 4:1 Net debt evolution and cost Financial overview 7LLD09610_Client Screenshow

29 Liquidity management Interpipe objective is to maintain continuity and flexibility of funding. Nearly 60% of liabilities are long term Financial overview

30 Up to date financial control and reporting
2006 2007 (estimated) Preliminary IFRS consolidated financial statements Regular IFRS reporting function established Management accounts prepared on a monthly basis with actual results reviewed against budget by top management Full convergence of management accounts and IFRS reporting achieved Preparation of IFRS accounts on quarterly and annual basis Financial controlling and reporting procedures upgrade started IFRS financial statements available within 75 days Full automation of the MIS reporting function based on Oracle Financial control formalised in accordance with established best practices Full fledged internal audit function operating on a regular basis IFRS financial statements are expected to be available within 60 days 2006 2007 2006 Financial overview 7LLD09610_Client Screenshow 30

31 Key takeaways 31

32 Key investment highlights
Leading market position in an attractive industry Sustainable cost advantage and high quality earnings Significant growth prospects Significant upside in profitability Major global producer of seamless pipes High margin seamless segment with high barriers to entry High margins in stable wheel business Low cost and vertically integrated Exposure to fast growing / high margin OCTG market Platform to tap into highly attractive growth regions Substantial margin upside through product portfolio upgrade and operational improvements Comprehensive strategic investment program under way 1 3 5 7 2 4 6 8 Shareholder value driven company Strong international management team Best practice corporate governance and focus on shareholder value 9 From a brief description of Interpipe let me turn more specifically now into describing why investors should invest into our Company and be successful at it. Briefly discuss each investment highlight 10 Key investment highlights 32

33 Thank you for your attention Q&A session

34 Calculation of adjusted EBITDA (2006)
Wheels Smls pipes Welded pipes Other Total Revenue from sales 300,854 891,317 237,213 12,204 1,441,588 Cost of sales (181,756) (571,345) (173,639) (10,020) (936,759) Other operating income 187 2,781 87 551 3,606 Selling and distribution expenses (10,809) (85,723) (22,426) (258) (119,217) General and administrative expenses (10,762) (28,414) (11,952) (1,743) (52,871) Other operating expenses (2,579) (21,458) (7,360) (24) (31,420) Share of profit of associates - 120 Depreciation and amortization (9,742) (38,824) (10,290) (2) (58,858) EBITDA 104,877 226,103 32,214 711 363,905 EBITDA margin, % 34.9% 25.4% 13.6% 5.8% 25.2% Translation difference and foreign exchange difference (65) (193) (51) (3) (312) Gain/(Loss) on disposal of property, plant and equipment and intangible assets (1,273) (3,782) (788) (18) (5,861) Depreciation and amortization - impairment - (5,250) Adjusted EBITDA 106,216 229,957 38,303 731 375,208 adjusted EBITDA margin, % 35.3% 25.8% 16.1% 6.0% 26.0% Appendix 7LLD09610_Client Screenshow

35 Calculation of adjusted EBITDA (2007)
Wheels Smls pipes Welded pipes Other Total Revenue from sales 371,419 1,101,470 296,736 22,418 1,792,042 Cost of sales (231,002) (773,759) (218,419) (19,616) (1,242,796) Other operating income 954 1,685 1,561 2,414 6,614 Selling and distribution expenses (9,109) (65,692) (20,499) (92) (95,392) General and administrative expenses (9,428) (39,047) (11,749) (824) (61,048) Other operating expenses (9,941) (15,250) (2,376) (917) (28,483) Share of profit of associates - 864 Depreciation and amortization (11,195) (44,010) (5,502) (697) (61,404) EBITDA 124,088 254,281 50,755 4,080 433,204 EBITDA margin, % 33.4% 23.1% 17.1% 18.2% 24.2% Translation difference and foreign exchange difference 240 713 192 15 1,160 Gain/(Loss) on disposal of property, plant and equipment and intangible assets 265 225 920 - 1,410 Holden (9,896) One off gain on investment disposal 1,390 Adjusted EBITDA 133,478 252,479 49,643 2,676 438,276 adjusted EBITDA margin, % 35.9% 22.9% 16.7% 11.9% 24.5% Note: EBITDA is a measure used by the Company to measure operating performance and is not a recognised term under IFRS and does not purport to be an alternative to operating income or cash flow from operations, as an indicator of operating and financial performance. Because companies do not calculate EBITDA identically, our presentation may not be comparable to similarly titled measures of other companies Appendix 7LLD09610_Client Screenshow

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