corporate presentation · 2017. 4. 3. · omk’s share of the russian market in 2015* st place nd...

1

CORPORATEPRESENTATION

2

OMK is a high technology integrated manufacturer of steel, rolled products, pipes, pipeline valves and fittings, railway wheels and automotive springs.

We make products that allow our customers to transport energy, cargo and people safely and efficiently.

OMK’s strategic partners are the leading Russian and international oil and gas, transportation and engineering companies.

OMK’s products are shipped to 30 countries worldwide. Russia is our key market.

COMPANY PROFILE

30COUNTRIES WORLDWIDE

3

CLIENTS

7%

18%23%13%

68%58%

39% 14%

15%

SHAPED PIPES

OIL AND GAS PIPES

CASING PIPES

PIPELINEVALVES

SPRINGS

RAILWAY WHEELS

LARGE DIAMETER PIPES

OMK CONTRIBUTESTO THE DEVELOPMENTOF THE RUSSIAN ECONOMY

WATER AND GAS PIPES

PIPELINE FITTINGS

OMK IS A LEADING PRODUCER OF STEEL AND PIPES

1 2

OMK’S SHAREOF THE RUSSIAN MARKET IN 2015*

ST PLACE ND PLACE SIGNIFICANTMARKET SHAREWe are the largest supplier of pipes for the major gas pipelines and we produce more than half of the railway wheels and almost two-thirds of the automotive springs on the Russian market.

We are ranked first in Europe by volume in large diameter pipes, railway wheels and automotive springs produced.

* All the data, that is published in the presentation, including the company’s market shares, supply and production volumes, etc. , are based on OMK’s expert estimates, if other sources are not mentioned.

4

VYKSA STEEL WORKS(Nizhny Novgorod Region, an OMK company since 1999)

BLAGOVESHCHENSK VALVES PLANT(Republic of Bashkortostan, an OMK company since 2013)

TRUBODETAL PLANT(Chelyabinsk, an OMK company since 2005)

ALMETYEVSK PIPE PLANT (Republic of Tatarstan, an OMK company since 2002)

CHUSOVOY STEEL WORKS(Permsky Kray, an OMK company since 2003)

OUR PLANTSARE EXAMPLESOF DYNAMICDEVELOPMENT

RUSSIA

Moscow

OMK GEOGRAPHY

>24 000NUMBEROF OUR EMPLOYEES

Vyksa

Almetyevsk

Chusovoy

Blagoveshchensk

Chelyabinsk

5

TRUSTED SUPPLIER FOR PIPELINE PROJECTS

OMK PIPESARE USEDIN ALL MAJOR PIPELINES

OUR PRODUCT SHARE IN MANY PROJECTSEXCEEDSA THIRD OF THE OVERALL VOLUME

620

745340

THOUTONNES

КМ

Bovanenkovo ››› Ukhta

Nord Stream 2

370THOUTONNES THOUTONNESCentral Asia ››› China

570THOUTONNESEastern Siberia ››› Pacific Ocean

495THOUTONNESSouthern Corridor Pisarevka CS* ››› Russkaya CS*

470 THOUTONNESTHOUTONNES

THOUTONNES

Nord Stream Sakhalin ››› Khabarovsk ››› Vladivostok

340Ukhta ››› Torzhok

Deliveries in 2015 Deliveries ongoing. * CS — Compressor Station

215Power of Siberia

6

SMALL AND MEDIUM DIAMETER PIPES(THOUSAND TONNES)

PIPELINE FITTINGS (THOUSAND TONNES)

20152014

20152014

20152014

20152014

1380

1058 6,7

6,4

1034

100816

19

LARGE DIAMETER PIPES(THOUSAND TONNES)

PIPELINE VALVES (THOUSAND TONNES)

OPERATING RESULTS

7

CASING PIPES(THOUSAND TONNES)

SHAPED PIPES(THOUSAND TONNES)

20152014

20152014

20152014

1181

1029 284

311173

150

ROLLED PRODUCTS (ROLLS AND SHEETS)(THOUSAND TONNES)

OPERATING RESULTS

8

20152014

320 450

OPERATING RESULTS

RAILWAY WHEELS(THOUSAND UNITS)

AUTOMOTIVE SPRINGS(THOUSAND TONNES)

20152014

43,4

55

9

FINANCIAL PERFORMANCE

REVENUERUB BILLION

TOTAL REVENUEPERCENTAGE SHARE (2015)

EBITDARUB BILLION

NET PROFITRUB BILLION

20152014

20152014

20152014

161

12936

25 -13

10

LARGE DIAMETER PIPE DIVISION

OIL AND GAS PIPE DIVISION

RAILWAY WHEELS DIVISION

ALMETYEVSK PIPE PLANT

TRUBODETAL PLANT

NORTH AMERICA DIVISION

BLAGOVESHCHENSK VALVES PLANT

CHUSOVOY STEEL WORKS

OTHER (1,5%)

28

4,5

32,5 2 2

52

4,5

10

OMK DIVISIONALSTRUCTURE

OMK’s current production structure

WE SEEK TO BECOMETHE MOST EFFICIENT COMPANY IN THE RUSSIAN STEEL INDUSTRY

* Directors of Trubodetal and Blagoveshchensk Valves Plant report directly to the OMK President.

DIVISIONS PLANTS PRODUCTION

LARGE DIAMETER PIPES DIVISION VYKSA STEEL WORKSLarge diameter pipesHot rolled wide sheets

OIL AND GAS PIPES DIVISION VYKSA STEEL WORKS

Oil and gas pipesWater supply pipes. Casing pipes. Shaped pipesHot rolled sheets

APP DIVISION ALMETYEVSK PIPE PLANTOil and gas pipesWater supply pipesShaped pipes

TRUBODETAL DIVISION TRUBODETAL Pipeline fittings

BAZ DIVISION BLAGOVESHCHENSK VALVES PLANT* Pipeline valves

RAILWAY WHEELS DIVISION VYKSA STEEL WORKS Railway wheels

CHUSOVOY DIVISION CHUSOVOY STEEL WORKS SpringsIron sections

11

MANUFACTURINGCAPABILITIES

Wide steel plate that serves as feedstock for large-diameter pipe, and is used in engineering, ship building, construction.

Width: 900 – 4,850 mm

Gage: 7 - 150 mm

Flat hot-rolled coil or plate stock for small and medium-diameter pipe. Is also suitable for engineering, ship building, and construction.

Width: 30 – 1,750 mm

Gage: 1 – 12.7 mm

1,2 1,2

ROLLED PRODUCTS (ROLLS & SHEETS)

WIDE SHEET

MILLION TONNES A YEAR


BACK TO OMK DIVISIONAL STRUCTURE

12


Longitudinally and single-joint electrically welded pipes for oil and gas mainlines with exterior and interior anti-friction and anti-corrosion coatings.

Grade: up to X80

Diameter: 508 – 1,420 mm

Longitudinally and single-joint electrically welded pipes for oil, gas, fluid, and water lines, heating systems, oil and gas field construction

Grade: up to X70

Diameter: 159 – 530 mm

Gage: 4 – 12.7 mm

2 1

GENERAL-PURPOSE OIL & GAS PIPES

LARGE DIAMETER PIPES




13


Casing pipes for oil and gas field and well construction


Wall Gage: 5.2 – 11.1 mm

Shaped pipes for construction, engi-neering, furniture manufacture, and other sectors.

Section: 10 x 10 to 300 x 300 mm

And 15 x 10 to 300 x 200 mm400 200

SHAPED PIPES

CASING PIPES

THOU TONNES A YEAR

THOU TONNES A YEAR


14


THOU TONNES A YEAR

THOU TONNES A YEAR

Cast wedge gate valves, spring-loaded safety valves, rotating check valves, switches, safety valve assemblies, blow-out preventers, shut-off valves, etc.Applications: oil and gas production, oil refining/gas processing, petrochemstry, heat generation


Pipeline assemblies, hot and cold bends, stamped and welded pipeline components, such as bends, tees, adapters, caps. Used in the construction of mainlines, in-field oil and gas lines, distribution and pumping stations, gas processing plants and oil refineries, NPPs and thermal power plants.


13,9 30

PIPELINE FITTINGSPIPELINE VALVES


15


Whole rolled railway wheels and wheel bosses for freight and passenger trains, including the Lastochka high-speed trains


140 different types and sizes

Over 800 types and sizes of springs of the most advanced design, including parabolic springs and levers for pneumatic supports. Supplier to key Russian (KamAZ, Ural, NefAZ) and international truck manufacturers.

850 110

SPRINGSRAILWAY WHEELS

THOU UNITS A YEAR

THOU TONNES A YEAR


16

STRATEGICAREAS

INCREASING OPERATING EFFICIENCY

RETAINING POSITION AND INCOME IN TRADITIONAL MARKET SECTORS

EXPANDING PRODUCT RANGE TO NEW PRODUCT SECTORS

STRATEGY

EFFICIENTIN-HOUSEPRODUCTION

PACKAGEDPROPOSAL

EFFICIENT BUSINESS MODEL

+=

OMK’S GOAL ISTO BECOMEA SUPPLIER OF INTEGRATED SOLUTIONS FOR THE OIL AND GAS INDUSTRY

17

INVESTMENTS

INVESTMENTSRUB BILLION

R&D COSTSRUB BILLION

20152014

20152014

5,3 11,5

131,3

119

THICK PLATE MILL-5000 (2008-2011)

ULTRAMODERN LDP FABRICATION LINES (2005)

RECONSTRUCTION OF THE VSW RAILWAY WHEEL FACILITY

MODERNISATION OF THE FITTINGS PRODUCTION FACILITIES

DEVELOPMENT OF THE PIPELINE VALVES PRODUCTION FACILITIES

CONSTRUCTION OF RUSSIA’S FIRST HIGH-SPEED RAILWAY WHEEL FABRICATION LINE

INTEGRATED CASTING AND ROLLING COMPLEX (2005-2008)

MODERNISATION OF THE MDP PRODUCTION FACILITIES

185BILLIONRUBLESTOTALINVESTMENTS IN 2002-2015MAJOR INVESTMENT PROJECTS

18

FULL IMPORTSUBSTITUTION OF LARGEDIAMETER PIPES

Shar

e of

impo

rted

LDPs

in R

ussia

n pi

pelin

e pr

ojec

ts

OMK contributed significantly to the substitution of imports of large diameter pipes. In 2005, the company built the country’s first “Russian Size” LDP facility.

2005 2011 2013 2015

SYSTEMATIC IMPLEMENTATIONOF LDP IMPORT SUBSTITUTION IN RUSSIA

‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 c 2014

OMK has built the coun-try’s first “Russian size” LDP production line. Production of straight line seam welded pipes with diameters up to 1420 mm has begun in Russia.

We created our own production of pipe sheets. Launch of the Heavy Plate Mill-5000 at VSW to provide LDP lines with raw materials.

Long-term contract for the supply of Russian-made slabs was signed in order to provide stable quality and production supply.

We began to apply our own, in-house developed corrosion-resistant coatings to pipes.

WE CREATED THE WORLD’S FINEST INTEGRATED LARGE DIAMETER PIPE PRODUCTION

TODAY’S RUSSIAN OIL AND GAS COMPANIES USE ALMOST NO IMPORTED LDP’S

37%

31%

16%14%

4% 4%

11%

15%

1% 2%“FROM ORE INTO PIPE” DOMESTIC PRODUCTIONALL RUSSIAN LARGE DIAMETER PIPES, PARTICULARLYFOR THE POWER OF SIBERIA PROJECT, ARE MADE TOTALLY FROM RUSSIAN MATERIALS

19

PROCUREMENT

Operational procurement of goods, work and services are the responsibility of our plants’ procurement departments. OMK’s procurement department performs methodology functions, control and development.

>90>6000 >50 000

KEY NUMBERS

OUR PROCUREMENTPRINCIPLES ARE AS FOLLOW:

TRANSPARENCY

COOPERATION

COMPETENCE

COMPETITIVENESS

RESPONSIBILITYOVERALL PROCUREMENT COST BILLION RUBLES PER YEAR

ITEMS PROCUREDSUPPLIERS

Supplier’s self sign-up in the corporate SRM system: anyone can become our supplier!

E-procurements in the SRM system. Every supplier who signs up (and is approved) is automatically invited to take part in procurement procedures.

We make the most expensive procurements via tender.

WE OFFER OUR SUPPLIERS THE FOLLOWING MODERN PROCUREMENT TOOLS

IN PARTNERSHIP WITH OUR SUPPLIERS, WE ADHERE TO THE FOLLOWING PRINCIPLES:

OPENNESS

FAIRNESS

DEVELOPMENT

20

WE SUPPORT DISADVANTAGED GROUPS, CHILDREN IN DIFFICULT LIFE SITUATIONS, YOUTH AND THE ELDERLY IN THE REGIONS WHERE THE COMPANY MAINTAINS A PRESENCE

WE SUPPORT EDUCATIONAL PROGRAMMES AND INSTITUTIONS

WE SPONSOR BLOOD DONATION INITIATIVES

WE SUPPORT PROJECTS INTENDED TO REVIVE CULTURAL HERITAGE SITES AND PROMOTE CURRENT TRENDS IN CONTEMPORARY CULTURE AND ART

SOCIAL INVESTMENTSIN 2011-2015

CORPORATE CITIZENSHIP AND CHARITY

OUR CHARITYDIRECTIONS:2,5BILLIONRUBLES

IN 2015, WE SPENT 1 MILLION RUBLES ON SOCIAL PROJECTS FOR EVERY 5 THOUSAND TONNES OF OUR PRODUCTION

21

CHARITY FUND

>1000>36

FAMILIES

MILLION RUBLES

THE OMK-UCHASTIE CHARITY FUND WAS LAUNCHED BY SHAREHOLDERS AND EMPLOYEES OF THE COMPANY AND IS FUNDED BY THEM AS WELL

In 2009-2015, our employees assisted over 1,000 needy families through an expenditure of 36 million rubles through the OMK-Uchastie charity fund

PROTECTING CHILDHOODAND FAMILY

TARGETED AID TO SERIOUSLY AND TERMINALLY ILL CHILDREN

DEVELOPMENT OF EDUCATION AND MEDICAL PRACTICES: Creation of a website on child oncology with educational modules

for doctors and nurses Regular charity events at SRI of Child Oncology and Haematology (N.N. Blokhin ROSC). Annual congress of child oncologists, etc.

COLLABORATION WITH INSTITUTIONS: CHILDREN FROM SOCIALLY DISADVANTAGED FAMILIES OR THOSE WHO ARE LEFT WITHOUT PARENTS’ CARE ARE EDUCATED OR CURED: Orphanages, correctional schools in regions where OMK operates

ART OVRAG — NEW URBAN CULTURE FESTIVAL IN VYKSA (NIZHNY NOVGOROD REGION)

DIRECTIONS:

22

ОМК28/2, Ozerkovskaya embankmentMoscow, Russia, 115184

+7 (495) 231-77-71+7 (495) [email protected]

corporate presentation · 2017. 4. 3. · omk’s share of the russian market in 2015* st place nd...

Documents