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Annual reports

Oleg Bagrin

Oleg Bagrin

President, Chairman of the Management Board

"NLMK pursues global industry leadership in efficiency and shareholders’ value creation. We have a clear strategy and will continue to deliver on our commitments made in early 2014, when the new phase of our strategy was announced. In 2014, we have already achieved tangible results, including delivery of 40% of total net gains target set out in Strategy 2017".

Vladimir Lisin

Vladimir Lisin

Chairman of the Board

"The global economy is entering a new phase of uncertainty. Developed economies are still experiencing unstable growth, while developing economies are slowing down. The global steel market is quickly approaching the moment of truth, when the strategies of many production companies will be thoroughly challenged. The model that we have implemented at NLMK combines the production of steel and key raw materials in low-cost regions with the manufacture of high value added products close to the end consumer. This type of model gives steel manufacturers the strategic flexibility to achieve success under conditions of slow growth and tight competition…"

Despite unfavourable market conditions, NLMK Group demonstrated record production levels, increasing steel output by 25% to 14.9 mt. This has allowed the Group to become the largest steel producer in Russia with a 20% market share

Interactive Annual report

"We continue to believe that having an efficient value chain – from low-cost raw materials to finished products – is the only way of guaranteeing long-term sustainability for the steel business in the future. We produce all raw materials and liquid steel in low cost locations combining integrated and scrap-based production routes. However, a significant share of our finished products is produced in developed markets in close proximity to a diverse and demanding customer base. In most product categories we seek to maintain a healthy balance between exposure to emerging and mature markets thereby balancing growth and stability."

Online Annual report

"Last year, in terms of market capitalization, NLMK was positioned amongst the top three global steelmakers. We remain focused on pursuing our core strategy, aimed at sustainable growth and greater business efficiency with due account for industry risks. We have made the strategic decision to develop upstream integration as a key cost-cutting tool. Optimal geographic location is of primary importance to us. It allows us to take advantage of regional benefits and maximize synergies. We took a decision to consolidate rolling assets that were previously part of the NLMK/Duferco JV located in the EU and the US with an annual capacity of over 5.5 million tonnes. Integrating these plants in 2011 will ensure a significant expansion in output and revenue."

Online Annual report 2010

"We entered 2010 with a sustainable growth strategy which enables the Company to demonstrate stable results both in the bottom of the cycle and during the market upturn. Last year NLMK retained its profitability leadership in the sector"

"We have made significant progress in executing the Company’s Sustainable Growth Strategy’, both through organic growth and acquisition opportunities. NLMK has strengthened its geographic and product profile and continued to optimize its asset structure."

"We have made significant progress in executing the Company’s Sustainable Growth Strategy’, both through organic growth and acquisition opportunities. NLMK has strengthened its geographic and product profile and continued to optimize its asset structure."

"In September 2006, we formally approved major areas of our "Sustainable Growth Strategy for 2007-2011". The company's major objectives during that period are to ensure a 40% growth in crude steel production (to 12.4m tonnes) and a 90% increase in rolled steel production. Our plans for the development of both the raw materials and energy production segments of the company are linked to the planned growth in steel production volumes."

"This has been an outstanding year for our company. Last year, the main objectives were to bring the company to the international stock market, achieve further vertical integration through M&A activities to deliver substantial synergy benefits, and successfully accomplish the first phase of the technical upgrading program."

"Significant success has also been achieved in the management of NLMK’ activities. The Company’s Board of Directors and Management have unique experience of work in the industry and ensure strict abidance by best corporate governance principles. A strong management team and high standards of corporate governance enable us to set the most challenging strategic objectives."

"Favorable market condition, which had not, in the previousperiods, been characteristic of the metals industry for a long period of time, also contributed positively to our results. Starting from the middle of 2003, the growth in prices on NLMK’s products facilitated greater returns from the competitive advantages that were created by our strategy and put into practice by the Company’s management."

"The positive results of the last few years should not distract our attention from or obscure the potential dangers. Like any Russian enterprise, NLMK does not live in a vacuum. Every hour of every day it faces all the challenges inherent in the national economy and the national steel industry."

"Despite these adverse conditions, over the past year NI&SCo did not significantly reduce its production output. Production of pig iron and steel decreased by only 3% and 4% respectively. Additionally, in 2001 NI&SCo managed to maintain production of flats at the same level as 2000. NI&SCo remains the most efficient steel-making company in Russia."