Investor Presentation
September 2012
1
Disclaimer
Investor Presentation, September 2012
This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of EVRAZ plc (“EVRAZ”) or any of its subsidiaries in any jurisdiction (including, without limitation, EVRAZ Group S.A.) (collectively, the “Group”) or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of EVRAZ, the Group or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document.
This document contains “forward-looking statements”, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group’s control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of the Group’s shares or GDRs, financial risk management and the impact of general business and global economic conditions.
Such forward-looking statements are based on numerous assumptions regarding the Group’s present and future business strategies and the environment in which the Group will operate in the future. 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. These forward-looking statements speak only as at the date as of which they are made, and each of EVRAZand the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in EVRAZ’s or the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this document.
The information contained in this document is provided as at the date of this document and is subject to change without notice.
2
Agenda
Investor Presentation, September 2012
HSE Performance
Overview of H1 2012 Results
Liquidity and Financial Position
Operations by Segment
Update on Investment Projects
Key Market Developments and Outlook
3
HSE Performance
Investor Presentation, September 2012
0.81
0.94
H1 2011 H1 2012
1.852.02
H1 2011 H1 2012
Increase in LTIFR and FIFR vs. H1 2011
Safety remains a key priority
Key ongoing safety initiatives: Contractor safety management Fall prevention (follow 6S project) PPE (Personal Protective Equipment) Improvement in workplace conditions Tests for drugs and alcoholic intoxication Internal safety training
Key ongoing environmental initiatives: Water use: Wastewater dumping reduction programme
(ZSMK, NTMK, Yuzhkuzbassugol, Evrazruda, DMZP); Air emissions: Air protection equipment upgrade (ZSMK,
DMZ, Claymont); Waste management: Waste recycling and reuse
programmes (ZSMK,NTMK, Vanady Tula)
Lost Time Injury Frequency Rate (LTIFR)
Fatal Injury Frequency Rate (FIFR)
* Calculated as the total number of work-related injuries (which resulted in the loss of work time) – LTIFR or fatalities – FIFR/total number of working hours during the period x 1,000,000
Overview of H1 2012 Results
5
H1 2012 summary
Investor Presentation, September 2012
US$ million unless otherwise stated
1 EBITDA represents profit from operations plus depreciation, depletion and amortisation, impairment of assets, foreign exchange loss(gain) and loss (gain) on disposal of property, plant and equipment and intangible assets
2 As at 30 June 2012 and 31 December 2011 respectively; short-term debt includes current portion of finance lease liabilities, including lease liabilities directly associated with disposal groups classified as held for sale
3 Here and throughout this presentation segment sales data refer to external sales unless otherwise stated
H1 2012 H1 2011 Change
Revenue 7,619 8,380 (9)%
EBITDA1 1,175 1,629 (28)%
EBITDA margin 15.4% 19.4% (21)%
Net profit/(loss) (50) 263 (119)%
Dividends for the period (cents/ordinary share) 11c 6.7c 64%
Operating cash flow 1,089 1,594 (32)%
Capex 565 462 22%
Net debt2 6,070 6,442 (6)%
Short-term debt2 1,550 626 148%
Steel sales volumes3 (‘000 t) 7,713 7,946 (3)%
6
H1 2012 financial highlights
Investor Presentation, September 2012
The major factor of the decrease in revenue was reduced steel sales volumes and prices
Decrease in revenues and EBITDA was also a result of lower Mining segment contribution because of lower raw materials volumes and prices
(1,954) (1,587)
7,492 7,019
2,0401,383
320263
482541
8,3807,619
H1 2011 H1 2012
Other operations
Vanadium
Mining
Steel
Eliminations
* Vanadium & Other operations consists in H1 2011 of $(3)m Vanadium segment EBITDA and $83m of Other operations EBITDA and in H1 2012 of $4m and $94m respectively
(157) (39)
744 699
962
417
80
98
1,629
1,175
H1 2011 H1 2012
Vanadium & OtheroperationsMining
Steel
Unallocated &Eliminations
Revenue drivers, $m Consolidated EBITDA by segment*, $m
Consolidated revenue by segment, $m
8,380
(437)(324)
7,619
H1 2011 Revenue Volumes Prices H1 2012 Revenue
7
Net profit reconciliation
Investor Presentation, September 2012
62
(50)
12
-60
-50
-40
-30
-20
-10
0
10
20
Reported Net loss Special item: impairment due to reduced pricing outlook Net profit w/o special items
$m
8
Group cost dynamics
Investor Presentation, September 2012
EVRAZ benefits from high level of vertical integration in iron ore and coking coal
Costs positively impacted by rouble devaluation (more than 50% of the costs are rouble-denominated)
Steel segment costs benefited from lower raw materials prices: costs of raw materials accounted for 45% ofSteel segment revenues in H1 2012 vs. 51% in H1 2011
Implementation of cost saving technologies (e.g. PCI), further development of own power generation, progressof Lean project are expected to help mitigate negative impact of growing energy, transportation and labour costs
H1 2012, % of total CoR
H1 2011, % of total CoR
Raw materials, including 35% 40%Iron ore 6% 8%Coking coal 9% 12%Scrap 14% 14%Other raw materials 6% 6%
Semi-finished products 4% 6%Transportation 6% 7%Staff costs 14% 13%Depreciation 10% 7%Electricity 5% 5%Natural gas 4% 4%Other costs 22% 18%
Consolidated cost of revenues by cost elements Cash Cost*, Slabs & Billets, $/t
* Average for Russian steel mills, integrated cash cost of production, EXWSource: Management accounts
280333 356 369
395438 415 401 379 372298
350378
411437
479448 426 410 403
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
Slabs
Billets
Liquidity and Financial Position
10
Liquidity and debt maturity profile
Investor Presentation, September 2012
Total debt of $7,833m as of 30 June 2012, having increased as a result of drawing on available credit lines to increase the cash balance
Cash and cash equivalents totalled $1,763m ($801m as at 31 December 2011) $600m 5-year notes issued in April 2012 at 7.4% rate Net debt - $6,070m (6% decrease vs. 31 December 2011) Amendments to financial covenants in syndicated loan facilities provide greater financial flexibility Long-term target net leverage ratio of below 2x
3
3.2
3.4
3.6
3.8
4
4.2
4.4
4.6
4.8
5
6
6.2
6.4
6.6
6.8
7
7.2
7.4
7.6
7.8
8
31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012
% Years
414
1,124981
1,400
1,875
630
1,373
360
500
1,000
1,500
2,000
2012 2013 2014 2015 2016 2017 2018 2019-2023
Q4
Q3
Q2
Q1
Debt cost* and average maturity Debt** maturities schedule (as at 30 June 2012), $m
* Weighted average cost of debt** Principal debt (excl. interest payments)
11
FCF Generation
Investor Presentation, September 2012
* Free cash flow comprises cash flows from operating activities less interest paid and cash flows used investing activities
Free cash flow generation of $362m Further release of working capital achieved
$m1,175
(43)1,132
91
(134)1,089
(233)
(565)
92
(21)362
EBITDA H12012
Non-cash items EBITDA (excl.non-cash items)
Changes inworking capital(excl. income
tax)
Income tax paid Cash flows fromoperatingactivities
Net interest paid(incl. realised
gain on swaps &covenants reset
costs)
Capex CF frominvestingactivities
(excl.capex andinterest
received)
Collateral underswaps
Free cash flow
Operations by Segment
13
Steel: CIS
Investor Presentation, September 2012
Full economic utilisation of Russian steelmaking capacitymaintained
Overall steel product sales were flat y-o-y with higher salesof construction products
Rail sales volumes were negatively affected by planned 5-month stoppage of the ZSMK rail mill for modernisation sinceApril (production expected to recommence in October)
Prices of steel products remained flat or decreased over theperiod in response to lower raw material prices
Prices for construction steel in the domestic market slightlyincreased from May 2012 due to seasonal improvement inthe construction market
68% 67%
32% 33%
5,541 5,586
H1 2011 H1 2012
Export
Domestic
1,838 1,693
2,378 2,566
813 788
512 539
5,541 5,586
H1 2011 H1 2012
OtherRailwayConstructionSemi-finished
ProductsRevenue, $m Revenue, $/tonne
H1 2011 H1 2012 H1 2011 H1 2012
Semi-finished 1,159 1,028 630 607
Construction 1,833 1,933 771 753
Railway 734 720 903 914
Other 422 410 824 761
Total 4,148 4,091 749 732
Steel product sales volumes, Kt Steel product revenues
Steel product sales, domestic vs. export, Kt
14
Steel: North America
Investor Presentation, September 2012
Demand in North America has remained strong and steel product sales were stable
We have successfully expanded into high value added products (head hardened rails, premium connection OCTG tubes, heat
treated seamless pipe)
Record high steel output and sales of rails in H1 2012
Rail quality improvement project is on track
The expansion to the heat treatment facility in Calgary commenced
The Portland spiral mill returned to operation after having been idle for 3 years
ProductsRevenue, US$m Revenue, $/tonne
H1 2011 H1 2012 H1 2011 H1 2012
Construction & othersteel products 153 140 927 909Railway 249 266 1,029 1,043Flat-rolled 578 571 1,131 1,069Tubular 589 579 1,461 1,561Total 1,569 1,556 1,188 1,184
Steel product sales volumes, Kt
165 154
242 255
511 534
403 371
1,321 1,314
H1 2011 H1 2012
Tubular
Flat-rolled
Railway
Construction &other steel
Steel product revenue
15
Steel: Europe, South Africa
Investor Presentation, September 2012
H1 2012 EBITDA of European operations was $6m despitethe weak economic environment
The loss making heavy section mill at EVRAZ VitkoviceSteel was shut down effective from February 2012
EVRAZ Highveld launched an optimisation programme toreduce fixed costs
Improved working shift schedules in South Africa areexpected to result in increased workplace safety, reducedovertime and higher productivity
Revenue, $m Revenue,$/tonne
H1 2011 H1 2012 H1 2011 H1 2012European operations
Flat-rolled 598 398 948 788Other 104 37 954 974Total 702 435 949 801
South African operationsConstruction 89 71 824 789Flat-rolled 159 121 869 834Other 36 23 692 657Total 284 215 828 796
Steel product revenuesSteel product sales volumes, South African operations, Kt
Steel product sales volumes, European operations, Kt
631505
109
38
740
543
H1 2011 H1 2012
Other
Flat-rolled
108 90
183145
52
35
343
270
H1 2011 H1 2012
Other
Flat-rolled
Construction
16
Mining: Coal
Investor Presentation, September 2012
Sales of coal products in H1 2012 decreased vs. H1 2011due to
lower steam coal volumes mined as a result of longwallrepositionings at both steam coal mines in Q1 2012
decreased volumes of external raw coal and increasedconsumption of own coal in production of coalconcentrate
A debottlenecking programme at Yuzhkuzbassugol waslaunched to stabilise and improve mine production
Coal mine projects (Yerunakovskaya VIII and MezhegeyPhase 1) are proceeding as planned
Washed coking coal (concentrate) self-coverage, Kt Cash cost, Russian washed coking coal, $/t
Note. (1) Self-coverage, %= total production (plus 40% of Raspadskaya production on pro rata basis) divided by total steel segment consumption(2) Self-coverage excl. 40% Raspadskaya share: H1 2010 – 54%, H2 2010 – 62%, H1 2011 – 62%, H2 2011 – 49%, H1 2012 – 69%
Coal product sales, Kt
45
7062
52
70 73
98
81
6779
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
1,9452,506 2,404 1,834 2,656
246
1,451 723 998
831
1,066
4,0533,642
4,021
3,229
3,8503,402
3,775
2,665
3,868 3,722
H1 2010 H2 2010 H1 2011 H2 2011 H1 2012
90% 80% 88% 71% 96%
Consumption Production excl. closed and
disposed mines
Raspadskayaproduction
Production byclosed and
disposed mines
2,8802,179
1,295
834
4,175*
3,014
H1 2011 H1 2012
External sales
Intersegment sales
* For comparability the number excludes 767 Kt of raw coal purchased by Trading Company EvrazHolding from market and Raspadskaya for supply to EVRAZ steel mills
17
Mining: Iron ore
Investor Presentation, September 2012
In H1 2012 total sales (intersegment and external) of iron ore products were 9.3 mt (-7.6% vs H1 2011) due to decreased use ofexternal raw iron ore in concentrate production in 2012 and destocking at Sukha Balka in H1 2011
Cash costs decreased in line with rouble depreciation
In H1 2012, EVRAZ Russian iron ore operations achieved total $17.5m positive economic effects through operationalimprovements
The project to increase EVRAZ KGOK’s capacity to 55 Mtpa of raw ore is expected to be completed in December 2012
Feasibility study and project documentation were completed to develop the Sobstvenno-Kachkanarskoye ore deposit at EVRAZKGOK and the project is proceeding as planned
Major reconstruction of Sheregesh mine at Evrazruda was launched to increase production 2.5 times to 4.8 Mtpa by 2016
Iron ore self-coverage*, Kt Cash cost, Russian iron ore products (Fe 58%), $/t
* Self-coverage, %= total production divided by total steel segment consumption
54 56 57
64
71 69 7075
80
73
Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12
10,6359,981
10,455 10,232 10,389
9,608 10,191 10,355 10,814 10,462
H1 2010 H2 2010 H1 2011 H2 2011 H1 2012Consumption Production
90% 102% 99% 106% 101%
18
Vanadium
Investor Presentation, September 2012
EVRAZ’s external sales of vanadium products decreased vs.H1 2011 by 17% to $251m, primarily due to lower prices
As a result of operational improvements EVRAZ Vanady-Tulaachieved record productivity levels of 40 tonnes of V2O5/dayduring H1 2012, a 15% improvement compared to productionrates in 2010
EVRAZ Stratcor vanadium plant in Arkansas launched useof EVRAZ’s own vanadium slag, to increase synergy levelswithin EVRAZ
Finished Vanadium product sales volumes, t Vanadium product revenues by region, $m
Ferrovanadium prices (FeV), $/kg contained V
Source: LMB
23
11783
244
Russia & CIS
Europe
Americas
Asia
Africa & RoW
30.231.1 30.9 30.4 30.0 29.5
28.9 28.6 28.127.5
25.7
24.223.0
25.326.0 25.6
26.125.6
24.5
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
9,624 9,599
H1 2011 H1 2012
Update on Investment Projects
20
Key Investment Projects
Investor Presentation, September 2012
Iron ore & coal
CAPEX in H2 2012,
$m Project Targets
Steel
Coal & iron ore
Total CAPEX$m
CAPEX in H1 2012
$m Project TargetsProject
Cumulative CAPEX by 30.06. 2012
$m Project targets
Construction of Yuzhny and Kostanayrolling mills
o Capacity: 450 ktpa of construction products each millo On-stream by mid-2013
Reconstruction of rail mill at EVRAZ ZSMK (former NKMK)
o Capacity of 950k tonnes of high-speed rails, including 450k tonnes of 100 metre rails
o On-stream in Q4 2012
Reconstruction of rail mill at EVRAZ NTMKo Production of higher-quality rails o 550k tonnes capacityo On-stream in Q2 2012
Pulverised coal injection (PCI) at EVRAZ NTMK and EVRAZ ZSMK
o 20% lower coke consumptiono Save annually up to 650 mcm of natural gas at NTMK and up to
600 mcm at ZSMKo On-stream by Q1 2013 and Q2 2013 respectively
Reconstruction of mechanical area at EVRAZ NTMK wheel & tyre mill
o Production of higher-quality wheelso Start production in Q1 2013; full capacity in Q2 2013
260 93 34
490 366 84
60 60 4
320 218 55
40 25 3
Yerunakovskava VIII mine construction o Coal production of 2 mtpao Start in Q1 2013, full capacity to be reached in Q1 2014
390 81 47
Development of Mezhegey coal deposit (Tyva, Russia)
o Maintaining self-sufficiency in high-quality hard coking coal after depletion of existing deposits
o On-stream Q4 2013, reaching full capacity by Q4 2014190 23 18
Expansion of Kachkanar mineo Iron ore production to be increased to 55 mtpao On-stream by end 2012
76 60 13
In progress Under considerationFinal stage of completion
150
25
14
113
0
79
8
60
21
Capex dynamics
Investor Presentation, September 2012
1,103
441
832
1,281
565
-
200
400
600
800
1,000
1,200
1,400
2008 2009 2010 2011 H1 2012
Maintenance, Steel and other operations** Iron ore mine development
Coal mine development * Investment projects
* Investment into maintaining and developing mining volumes, such as preparation of coal seams
H2 2012 capexexpected in the range of $650-750m
$m
Key Market Developments and Outlook
23
Recent market developments
Investor Presentation, September 2012
Full utilisation of Russian steel making capacities continues
Utilisation of non-Russian steelmaking capacities in September:
◦ EVRAZ North America: 90%
◦ EVRAZ Highveld: 60%
◦ EVRAZ Vitkovice Steel: 76%
Low inventories across EVRAZ operations
EVRAZ order book (external sales) currently represents1.1 month’s production on average
Construction product prices slightly increased in August due to seasonal improvement in the Russian construction market
Export prices of semi-finished products decreased in July-August vs. Q2
Iron ore and coking coal concentrate prices have been flat In July-August on June levels
Ferrovanadium prices in Q3 2012 are at the level of 24.5 $/kg of contained Vanadium, slightly down from Q2 2012
Raw material prices (domestic markets), $/t
EVRAZ selling prices, $/t
400
500
600
700
800
900
1,000
1,100
1,200
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Slabs, Russia, export* Billets, Russia, export*Rebars, Russia, FCA Plate, North America, FCA
050
100150200250300350400450
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Scrap, Russia, CPT Scrap, USA, CPT
Iron ore concentrate, Russia, ExW Coking coal concentrate, Russia, FCA
24
Outlook
Investor Presentation, September 2012
Global markets remain volatile resulting in ongoing uncertainty and low visibility in EVRAZ’s key
markets
Capacity utilisation remains high, finished goods inventories at our mills and sales network are
low
We expect our steel production volumes in Q3 2012 to be broadly in line with Q2 2012
Capex in H2 2012 is expected at $650-750m but we retain flexibility
Net leverage ratio expected to increase at year end (within the limits set by our covenants)
before decreasing in 2013 as the benefits of the investment programme are realised
25
Summary
Investor Presentation, September 2012
H1 2012 results reflect worsening pricing environment for our products
Continued investment in growth projects to bear fruit in the short-medium term
Stable debt and liquidity position following continued focus on refinancing
Outlook for H2 2012 remains challenging
Appendix
27
Global operating model
Investor Presentation, September 2012
North America
South America Africa
Europe
Russia/CIS
Asia
100
1,717
529
231
Sea portsVanadiumCoal miningIron ore miningSteel mills
Mezhegey coal mine in development
150
122
Third party steel products sales* (Kt), H1 2012# Internal supply of slabs and billets from Russian steel mills (Kt)#
580
H1 2012 steel sales volumeby geography
H1 2012 steel sales volumeby product
3,7301,313
* Excluding routes with sales volumes below 50kt each, together totalling 93kt
Russia & CIS48%
Europe8%
Americas17%
Asia22%
Africa and RoW4%
Semi-finished
22%
Construction37%
Railway14%
Flat-rolled18%
Tubular5%
Other4%
28
Revenue: geographic breakdown
Investor Presentation, September 2012
Russia40%
Ukraine4%
Other CIS3%
Americas22%
Europe13%
Middle East3%
China1%
Thailand4%
Other Asian7%
Africa & RoW3%
H1 2011
Russia41%
Ukraine3%
Other CIS4%
Americas24%
Europe10%
Middle East2%
China1%
Thailand3%
Other Asian9%
Africa & RoW3%
H1 2012
29
Steel products: sales by market
Investor Presentation, September 2012
3,331
431
858
1,4411,586
300
3,324
406632
1,345
1,732
275
Russia CIS Europe Americas Asia Africa & RoW
H1 2011 H1 2012
Kt
2,661
359
758
1,652
1,015
257
2,604
336492
1,582
1,068
214
Russia CIS Europe Americas Asia Africa &RoW
$m
3,331
431
858
1,4411,586
300
3,324
406632
1,345
1,732
275
Russia CIS Europe Americas Asia Africa & RoW
H1 2011 H1 2012
Kt
30
Resilient and profitable asset base
Investor Presentation, September 2012
EBITDA, EVRAZ North America, $m
EBITDA, EVRAZ South Africa, $m
EBITDA, EVRAZ Russia, $m
EBITDA, EVRAZ Europe, $m
Note. (1) Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(109)m in H1 2011 and $(89)m in H1 2012 (2) EVRAZ North America includes EVRAZ Inc. NA, EVRAZ Inc. NA Canada, Stratcor; EVRAZ Ukraine includes EVRAZ DMZP, Sukha Balka and coking plants; EVRAZ Europe includes EVRAZ
Palini e Bertoli, EVRAZ Vitkovice Steel, Nikom and attributable trading margin
265
216
H1 2011 H1 2012
81
(3)H1 2011 H1 2012
29
(6)
H1 2011 H1 2012
EBITDA, EVRAZ Ukraine, $m
1,276
1,051
H1 2011 H1 2012
87
6
H1 2011 H1 2012
31
Cost Structure by Segment
Investor Presentation, September 2012
Cost structure of Mining segment, $mCost structure of Steel segment, $m
Cost structure of Vanadium segment, $m
21% 19%
17%15%
17%
16%
7%
5%
6%
4%
4%
4%
8%
9%
3%
4%
8%
9%
9%
15%
6,2375,749
H1 2011 H1 2012
Other
Energy
Depreciation
Staff
Transportation
Semi-finished products
Other raw materials
Scrap
Coking coal
Iron ore 12% 7%
13%10%
24% 23%
15% 30%
13%
11% 23%
19% 1,092
1,177
H1 2011 H1 2012
Other
Energy
Depreciation
Staff costs
Transportation
Raw materials
35%28%
6%12%
13%
5%
5%
12%
13%
30%
41%
304
242
H1 2011 H1 2012
Other
Energy
Depreciation
Staff costs
Transportation
Raw materials
32
EBITDA
Investor Presentation, September 2012
US$ million
2012 2011Consolidated EBITDA reconciliation
Profit from operations 430 859Add:
Depreciation, depletion and amortisation 668 501Impairment of assets 80 32Loss on disposal of property, plant & equipment 25 17Foreign exchange (gain) loss (28) 220Consolidated Adjusted EBITDA 1,175 1,629
Six months ended 30 June
33
Net debt
Investor Presentation, September 2012
US$ million
30 June 2012 31 December 2011
Net debt calculation
Add:
Long-term loans, net of current portion 6,271 6,593Short-term loans and current portion of long-term loans 1,531 613Finance lease liabilities, including current portion 31 39Less:
Short-term bank deposit 0 (2)Cash and cash equivalents (1,763) (801)Net debt 6,070 6,442
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