june 2, 2004 mmc norilsk nickel group audited consolidated annual financial statements 31 december...
TRANSCRIPT
June 2, 2004
MMC Norilsk Nickel Group Audited Consolidated Annual
Financial Statements 31 December 2003
22003 IFRS Financial Results
Basis of presentation
• The consolidated annual financial statements have been prepared in compliance with with International Financial Reporting Standards (IFRS) and audited by Deloitte & Touche in accordance with ISA
• The presentation currency - the United States of America Dollar
32003 IFRS Financial Results
Consolidated income statement
(US Dollars million)Y-o-Y
change2003 2002 %
Metal sales revenues 5 196 3 094 68%
Cost of metal sales (2 870) (1 751)
Gross profit on metal sales 2 326 1 343 73%Gross profit margin 45% 43%
Selling, general and administrative expenses (750) (561)Other operating income/ (expenses) (60) 27
Operating profit 1 516 809 87%
Gains/(losses) on derivative transactions (44) 215 Net finance costs (3) (15)Other non-operating income/ (expenses) (131) (146)
Taxation (493) (286)
Minority interest 16 7
Net profit for the year 861 584 47%Net profit margin 17% 19%
Headline earnings 861 315 173%Percentage of metal sales revenues 17% 10%
42003 IFRS Financial Results
Consolidated balance sheet
(US Dollars million)
2003 2002Y-o-Y
change%
ASSETS
Non-current assets 7 578 6 462 17Property, plant and equipment 7 218 6 350 14Other non-current assets 360 112 221
Current assets 3 675 3 277 12Inventories 1 492 1 836 -19Trade accounts and other receivables 426 347 23Other current and financial assets 803 670 20Cash and cash equivalents 954 424 125
Total assets 11 253 9 739 16
EQUITY AND LIABILITIES
Share capital and reserves 8 547 7 305 17
Non-current liabilities 1 080 958 13Long-term borrowings 181 147 23Other non-current liabilities 899 811 11
Current liabilities 1 626 1 476 10Current portion of long-term borrowings 143 74 93Short-term borrowings 122 382 -68Bank overdrafts 173 219 -21Other current liabilities 1 188 801 48
Total equity and liabilities 11 253 9 739 16
52003 IFRS Financial Results
Cash at thebeginning of
the year
Cash flow from operating
activity
Cash flow from investing
activity
Cash flowfrom financing
activity
Effects ofinflation
Net cashat the end
of the year*
Consolidated cash flow statement
(In millions of US dollars)
* - Cash is shown net of bank overdraft
205
1 653
(616)
(486)25
781
0
500
1 000
1 500
2 000
788
603 (464)
(625)
(97)205
- 2002 data
62003 IFRS Financial Results
150
450
750
1 050
1 350
1 650
1 950
2 250
00.01
.00
30.06
.01
27.12
.01
25.06
.02
22.12
.02
20.06
.03
17.12
.03
3 000
5 000
7 000
9 000
11 000
13 000
15 000
17 000
Ni
Cu
Pd
Pt
Au
Metal prices for joint productsU
S dollars per tonne (Ni)
US
doll
ars
per
ton
(Cu)
; U
S do
llar
s pe
r ou
nce
(Pt,
Pd,
Au)
1 Jan
uary
2001
1 Jul
y 200
1
1 Jan
uary
2002
1 Jul
y 200
2
1 Jan
uary
2003
1 Jul
y 200
3
1 Jan
uary
2004
Source: Bloomberg; LME; LPPM
Platinum (Pt) Palladium (Pd) Gold (Au)Copper (Cu)Nickel (Ni)
72003 IFRS Financial Results
Revenues
Sales volume (In millions of US dollars)
13%
4%
23%
54%
6%
Platinum 12%
Gold 1%
Copper 19%Nickel 38%
Palladium 30%
-29%
2001 2002
16%
10%
7%
55%
12%
2003
5 1963 0944 382
+68%
82003 IFRS Financial Results
Sales volumes
(In millions of US dollars)
Including domestic sales 68 131 - - 11360 47 1 27-
TO BE UPDATED
1 673
834
1 304
544
27
1 689
718
187
387
113
2 824
828
640537
367
0
1 000
2 000
3 000
Никель Медь Палладий Платина Золото
2001
2002
2003
133 171 1 3 356
Platinum GoldCopperNickel Palladium
92003 IFRS Financial Results
Europe62%
Asia12%
North America13%
Others0%
Russia13%
Europe72%
Asia8%
Russia10%Others
1%
North America9%
Sales by region
2002 2003
Sales volume (In millions of US dollars)
100% = 5 196100% = 3 094
102003 IFRS Financial Results
Physical volumes sales
Nickel sales (Tons in thousand)
Copper sales (Tons in thousand)
Norimet & export sales
Domestic sales
Gold sales (In ths ounces)
Norimet & export sales
Domestic sales
214
296
11 12
0
50
100
150
200
250
300
350
2002 2003
70from
inventories
357 370
85 97
0
90
180
270
360
450
2002 2003
966
301
0
300
600
900
1200
1500
2002 2003
112003 IFRS Financial Results
Cash operating cost
Cash operating cost(USD in million)
2003 2003 2002 2002Y-o-Y %
changeSMC
consolidation
Polyus full year
Other* excluding SWC,
Polyus and other
consolidated
excluding Polyus
and other
Labour 756 43 27 70 616 545 531 16%
Comsumables and spares 694 16 31 85 563 565 570 -1%
Cost of refined metals purchased 163 0 0 0 163 195 195 -16%
Tax on mining 117 0 18 0 99 42 41 141%
Transportation of metals 117 0 0 0 117 63 63 86%
Scrap copper metals purchased 81 0 0 0 81 38 38 113%
Repairs and maintenance 81 21 0 0 60 45 45 32%
Insurance 71 3 0 0 68 51 51 34%
Utilities 70 7 0 0 63 77 77 -18%
PGM tolling 45 0 0 0 45 47 47 -4%
Tailing pipe maintenance and moving 16 0 0 0 16 36 36 -56%
Sundry 50 10 1 0 39 16 16 144%
TOTAL 2 261 100 77 155 1 928 1 720 1 709 13%
Note: "Other" include P&L charge in respect of pension plans and change in inventory provision.
including
122003 IFRS Financial Results
756
9311 032
836
0
250
500
750
1 000
1 250
2002 2003
Cash cost per unit
Production cost of Nickel
(In US dollars per ton) Polar Division
Kola Division
Production cost of Copper
(In US dollars per ton)
2 916
3 9724 465 4 595
0
1 000
2 000
3 000
4 000
5 000
2002 2003Polar DivisionKola Division
Production cost of gold
(In US dollars per ounce)
Polar DivisionKola Division
Polar DivisionZAO Polyus
180
222
113133
0
50
100
150
200
250
2002 2003
132003 IFRS Financial Results
252
146131
0
100
200
300
2001 2002 2003
Social Costs
Social costs* (In millions of US dollars)
Note: (*) Social costs include expenses on maintenance of social sphere facilities and donations
-42%
-11%
142003 IFRS Financial Results
Change in working capital
(In millions of US dollars)
2 112
583 649
1 836
347 323
1 492
426 3680
500
1 000
1 500
2 000
2 500
Inventories Trade accounts andother receivables
Trade accounts andother payables
2001
2002
2003-13%
-39% -50%
-19%
+23% +14%
NOTE: 2002 data includes consolidation of last two months results of ZAO Polyus2003 data includes consolidation of last two quarters results of Stillwater
Mining Company and full year results of ZAO Polyus
152003 IFRS Financial Results
15 26
1 848
142 67
382176 140 122
0
500
1 000
1 500
2 000
Долгосрочныезаймы
Текущая частьдолгосрочных
займов
Краткосрочныезаймы
2001
2002
2003
Long-term borrowings
Current portion of long-term
borrowings
Short-term borrowings
Debt structure
(In millions of US dollars)
NOTE: 2002 data includes consolidation of last two months results of ZAO Polyus2003 data includes consolidation of last two quarters results of Stillwater
Mining Company and full year results of ZAO Polyus
162003 IFRS Financial Results
Capital expenditure in 2003
20022003
118 117
20
45
2823
118
139
32
7162
160
50
100
150
MaintenanceCapEx
Mining Enrichment Metallurgy Energy Infrastructure
(In millions of US dollars)
NOTE: 2002 data includes consolidation of last two months results of ZAO Polyus2003 data includes consolidation of last two quarters results of Stillwater
Mining Company and full year results of ZAO Polyus