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Capital Markets Day

NLMK Group, a global steelmaker, hosted a Capital Markets Day in London on 4th March, 2019. The company presented information on the new five-year strategy and capital allocation plans (Strategy 2022).

Strategy 2022 goals

1. Leadership in operational efficiency

  • Focus on operational efficiency and approaching best production practices
  • Global leadership in cash cost of steel production
  • Target EBITDA gain: $0.5 bn pa

2. Growth in low-cost steel production  

  • Growth of steel output at NLMK Lipetsk by 1 m t to 14.2 m tpa
  • 100% self-sufficiency in iron ore maintained through growth of concentrate output by 2.6 m t to 20 m tpa; and growth of pellet output by 1.3 m t to 8 m tpa at Stoilensky
  • Growth of NLMK Lipetsk energy self-sufficiency from 60% to 95%
  • Decrease in coal consumption, including deficit grades
  • Target EBITDA gain: $0.3 bn pa

3. World-class sales portfolio

  • Growth of steel product sales to 18 m tpa
  • Growth of premium product output and sales by 1.7 m t
  • Growth of sales in key ‘home’ markets by 2.7 m t
  • Target EBITDA gain: $0.45 bn pa

4. Leadership in sustainability and safety

  • Minimization of environmental footprint, including a reduction of specific emissions per tonne of steel at NLMK Russia to the level of best available EU technologies
  • Reduction of injury rate to LTIFR** 0.5
  • High level of personnel motivation and engagement
  • Speakers

Grigory Fedorishin Grigory Fedorishin
President, Chairman of the Management Board
Oleg Bagrin Oleg Bagrin
Board Member
Marjan Oudeman Marjan Oudeman
Board member, Independent Director
Shamil Kurmashov Shamil Kurmashov
Vice President, Finance

Brokers

  • Bank of America Merrill Lynch
  • Goldman Sachs

Venue

Corinthia Hotel London, Whitehall Place, London SW1A 2BD, United Kingdom

IR contact info:

Dmitry Kolomytsyn, CFA
+7 (495) 504 0504
ir@nlmk.com

Media contact info:

Andrey Sogrin
+7 (495) 504 0 504
sogrin_av@nlmk.com

Press-releases

04.03.2019. NLMK Group announces new strategy and new dividend policy.
Strategy 2022 targets net gains of +$1.25 bn to EBITDA* pa, with $0.5 bn pa from operational efficiency programmes that require no additional capex.