27 July 2016

Q2 and 6M 2016 NLMK Group consolidated financial results under IFRS


In Q2, steelmaking capacity utilization rates reached 100% (94% in Q1 2016). EBITDA increased by 59% qoq to $460 m; EBITDA margin reached 25% (+7 p.p. qoq). Net debt / EBITDA stood at 0.7.

Q2 2016 highlights

• Steel output increased by 6% qoq to 4.2 m t (+4% yoy), with Group’s steelmaking capacities running at 100% (+6 p.p. qoq and yoy)

• Sales totalled 4.0 m t (-5% qoq and -1% yoy); with the share of finished products growing to 65% of total sales (+3 p.p. qoq and +1 p.p. yoy)

• Revenue grew to $1,869 m (+19% qoq and -13% yoy), driven by the increase in steel prices

• EBITDA increased by 59% qoq to $460 m (-4% yoy)

• EBITDA margin expanded to 25% (+7 p.p. qoq and +3 p.p. yoy)

• Net income* increased to $185 m (+225% qoq and +15% yoy)

• Capex totalled $160 m (+33% qoq and -13% yoy) due to the construction of the pelletizing plant at Stoilensky

• Free cash flow totalled $158 m (-43% qoq and -7% yoy)

6M 2016 highlights

• Group sales increased by 2% yoy to 8.1 m t 

• Revenue totalled $3,446 m (-21% yoy) due to the drop in steel prices

• EBITDA was $750 m (-33% yoy)

• EBITDA margin contracted to 22% (-4 p.p. yoy)

• Operational efficiency gains: $37 m

• Net debt was $1.16 bn (+6% by the end of 2015)

• Net debt/EBITDA was 0.7х

TELECONFERENCE

NLMK is pleased to invite the investment community to a conference call with the management of NLMK:

Wednesday, 27 July 2016

•10:00 am (New York)

• 3:00 pm (London)

• 5:00 pm (Moscow)

To join the conference call, please, dial:

US Number:

+1212 444 0896 (Local access) // 1877 280 2342 (Toll free)

United Kingdom Number:

+44(0)20 3364 5381 (Local access) // 0800 279 4841 (Toll free)

Russian Number:

+7495 213 0979 (Local access) // 8 800 500 9312 (Toll free)

Conference ID: 806347

To join the webcast please follow the link: http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=3825.

* We recommend participants start dialing in 5-10 minutes in advance to avoid waiting.

We recommend participants download the presentation in advance from NLMK’s website www.nlmk.com


* Income for the period attributable to NLMK shareholders