• 22 %

    Share of Russian steel production

NLMK at a glance

NLMK Group is a leading international manufacturer of high-quality steel products with a vertically integrated business model. Mining and steelmaking are concentrated in cost-efficient regions; finished products are manufactured close to our main costumers in Russia, North America, and the EU.

Thanks to our self-sufficiency in key raw materials and energy, coupled with the technological superiority of our production capacity, NLMK is one of the most efficient and profitable steelmakers in the world. NLMK has a diversified product mix, ensuring our leading position in local markets and our sales effectiveness. By leveraging our advantages – our flexible production chain, balanced product mix, efficient sales system, and widespread customer base – we are able to react quickly to changing market conditions.

Market positions in 2015

  • 22% – Share of Russian steel production
  • 22% – Share of the Russian rebar market
  • 25% – Share of the Russian CRC market
  • 20% – Share of the Russian HDG market
  • 19% – Share of the Russian pre-painted steel market
  • 23% – Share of the global slab market

NLMK Group is consistently a financially stable business. Having completed the investment phase of its development, NLMK Group turned its focus to increasing the efficiency of its business processes, developing its resource base, strengthening its positions in strategic markets and enhancing production safety. Structural savings of $477 million in 2013-2014, generated by operational efficiency programmes have increased business profitability.

100

new grades of steel in 2000–2014 (long and flat products)


NLMK is actively investing in environmental projects, reducing the environmental footprint in the regions where it operates as it strives to comply with the most demanding environmental standards. NLMK Group ensures safe working conditions through process improvement measures, investment in training of personnel and applying best global occupational health and safety practices.


Sustainable operational and financial performance*

  • Crude steel
    production

    15.9m t

    0y-o-y

  • Sales

    15.9 mt

    +5%y-o-y

  • EBITDA

    $1.9bn

    -18%y-o-y

  • EBITDA
    margin

    24%

    +1p.p.

  • Effect of Operation Efficiency programmes (using 2015 prices, vs. 2013 base level)

    $197m

  • Steelmaking capacity utilization

    93%

    -3p.p. y-o-y

Operational gains and conservative investments

Significant operational gains and conservative investments have enabled a substantial strengthening of the company’s financial standing, as well as supporting deleveraging and providing for increased flexibility on dividends.

  • Operating cash flow

    $1.7bn

    -9%y-o-y

  • Free cash flow

    $1.0bn

    -14%y-o-y

  • Investment

    $0.6bn

    +6%y-o-y

  • Net Debt

    $1.1bn

    -32%y-o-y

  • Net debt/EBITDA

    0.56

    vs0.67in 2013

  • Dividend payments during 2015

    $395m

    +75%y-o-y

Widely diversified production model, product mix, and sales markets

  • 23%

    of rolling capacity in Europe*

  • 24%

    of rolling capacities in the US

  • 39%

    Sales to Russian market

  • 70

    Sales to over 70 countries worldwide

  • 80% / 20%

    production — BOF/EAF routes

* including NBH capacities

High level of corporate responsibility

  • 56.7 th.

    Employees

  • 84%

    Attended professional training sessions in 2015


  • Environmental investment

    $105m

    -26%y-o-y

  • Specific atmospheric emissions

    20.9kg/t

    -1%y-o-y

  • LTIFR on Russian assets of NLMK Group

    0.43

    -0.12p.

Efficient vertical integration of raw material and energy resources

  • Self-sufficiency in energy**

    57%

  • Self-sufficiency in coke

    100%

  • Self-sufficiency in iron ore concentrate

    100%

  • Self-sufficiency in scrap

    70%

NLMK ratings and ticker codes

  • Credit ratings

    • Standard and Poor’s

      BBB-

    • Moody's

      Ba1

    • Fitch

      BBB-

  • NLMK tickers

    Reuters NLMKq.L (LSE), NLMK.RTS (RTS), NLMK.MM (MICEX)

    Bloomberg NLMK LI (LSE), NLMK RU (RTS), NLMK RM (MICEX)

  • Indices that include NLMK shares

    Moscow Exchange (RTS-MICEX) — 0,62%

    Moscow Exchange (RTS-MICEX) Metals and Mining Sector — 11,83%