1 1 2002 us gaap financial results july, 2003 moscow

11

2002 US GAAP financial results

July, 2003Moscow

22

Four years of steady growthFour years of steady growth

0

50

100

150

200

250

300

350

400

450

$ m

ln

1999 2000 2001 2002

313

241

94

Sales (US GAAP)435

33

Income Statement HighlightsIncome Statement Highlights

$ mln 2000 20012001/2000 2002

2002/2001

Sales 241.0 313.1 1.30 435.4 1.39

Gross margin 20.0 63.2 3.16 96.3 1.52

EBITDA -11.2 23.0 N/a 46.3 2.01

EBIT -31.8 0.9 N/a 20.6 22.55

EBT 5.1 5.4 1.06 63.8 11.79

Net Income 0.3 6.0 17.73 39.0 6.48

44

ProfitabilityProfitability

2000 2001 2002

Sales, $ mln 241.0 313.1 435.4

Gross margin 8.3% 20.2% 22.1%

EBITDA -4.6% 7.4% 10.6%

EBIT -13.2% 0.3% 4.7%

EBT 2.1% 1.7% 14.7%

Net Income 0.1% 1.9% 8.9%

55

Balance Sheet HighlightsBalance Sheet Highlights

$ mln 2000 2001 2002

Current Assets 301.8 318.7 346.0

Total Assets 505.7 517.4 592.5

Current Liabilities 346.5 305.4 283.7

Total Liabilities 376.8 387.3 394.0

NWC -44.7 13.3 62.3

66

Key RatiosKey Ratios2000 2001 2002

Current ratio 0.87 1.04 1.22Quick ratio 0.28 0.28 0.34NWC to Total Assets -0.09 0.03 0.11Total Liabilities to Total Assets

0.75 0.75 0.66

ROA 0.1% 1.2% 7.0%Turnover (days)

Assets 645 596 465Inventories 177 220 177Trade accounts receivable 49 49 43NWC N/a N/a 52

Interest coverage N/a 2.8 3.7

77

Doubtful accounts dropDoubtful accounts drop

 $ mln 2000 2001 2002

Trade accounts receivable

48.8 57.0 60.5

Allowance for doubtful accounts

-12.7 -8.4 -5.9

Trade accounts receivable, net

36.0 48.7 54.6

88

Taxes Payable DropTaxes Payable Drop

$mln 2000 2001 2002

Taxes payable short term

79 47 36

Taxes payable long term

25 50 33

Total 114 97 69

99

ValuationValuationDec 31

2000Dec 31 2001

Dec 31 2002

30 Jun 2003*

Cap**, $mln 49.6 138.1 213.8 257.3

EV***, $mln 41.7 150.2 245.2 288.7

EV/S 0.17 0.48 0.56 0.66

EV/EBITDA N/a 6.52 5.29 6.23

Debt/EBITDA N/a 2.88 2.54 2.54

Debt/EV 0.51 0.44 0.48 0.41

P/E 146.4 23.0 5.5 6.6

P/S 0.21 0.44 0.49 0.59

EPS, $ 0.01 0.17 1.10 1.10* management estimation ** fully diluted basis *** EV = Cap + LT Debt - Cash

1010

Cash flow growthCash flow growth

2000 2001 2002

CF before change in working capital, $ mln

-10.5 19.6 23.9

CF before change in working capital per share, $

-0.30 0.55 0.68

1111

Sales segmentationSales segmentation$ mln2000 2001 2002

O&G equipment 19.5 45.8 141.3

NPP equipment 23.6 58.7 74.3

Shipbuilding - 18.6 46.5

Mining equipment 34.0 36.5 37.8

Special Steel 62.8 57.2 46.4

Metallurgical equipment 53.9 47.6 47.8

Other 47.3 48.8 41.2

Total 241.0 313.1 435.4