Steel market update - Q1 2016

Q1 2016 IFRS RESULTS

17 MAY 2016

DISCLAIMER

2

This document is confidential and has been prepared by NLMK (the “Company”) solely for use at the presentation of the Company and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose.

This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in the Company or Global Depositary Shares (GDSs), nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents.

The distribution of this document in other jurisdictions may be restricted by law and any person into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the Company’s actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if the Company’s results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm analysts’ or any other third party expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

By attending this presentation you agree to be bound by the foregoing terms.

CONTENTS

3

1. Market Update and Headline Numbers

2. Financial Highlights

3. Segment Results

4. Annex

0

5

10

15

20

25

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4M

ay-1

4Ju

n-1

4Ju

l-1

4A

ug-

14

Sep

-14

Oct

-14

No

v-1

4D

ec-1

4Ja

n-1

5Fe

b-1

5M

ar-1

5A

pr-

15

May

-15

Jun

-15

Jul-

15

Au

g-1

5Se

p-1

5O

ct-1

5N

ov-

15

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Exports Inventories

Improved supply discipline and restocking led to prices rise

Q1’16 GLOBAL STEEL MARKET TRENDS

4

STEEL OUTPUTM tonnes

Source: Worldsteel

• Global steel output stable qoq at 385.4 mt (-3.6% yoy)

o China output dropped by 2.7 % yoy

o World ex-China (incl. DMs) showed qoq growth

• Chinese steel exports down by 5% qoq to 27.8 mt

• Lower inventories prompted restocking cycle

• Growth in raw materials prices

• Steel prices grew +45% YTD across all regions supported by stronger demand and restocking

CHINESE STEEL EXPORTS & INVENTORIES

Source: Metal Bulletin

M tonnes

205 210 205 204 202 204 197 191 194

203 210 207 200 197 208 199 194 192

408 421 411 405 399 412 396 385 385

-8%

-4%

0%

4%

8%

0

50

100

150

200

250

300

350

400

450

500

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

World ex. China China World ex. China (y/y) China (y/y)

HRC PRICES (EXW) BY REGIONS

Source: Metal Bulletin

$/t

0

200

400

600

800

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4M

ay-1

4Ju

n-1

4Ju

l-1

4A

ug-

14

Sep

-14

Oct

-14

No

v-1

4D

ec-1

4Ja

n-1

5Fe

b-1

5M

ar-1

5A

pr-

15

May

-15

Jun

-15

Jul-

15

Au

g-1

5Se

p-1

5O

ct-1

5N

ov-

15

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Spread Price - Raw mat cost US EU China Russia

100% utilization rates at the the Group’s core assets

Q1’16 NLMK OUTPUT AND SALES

• Steel sales increased by 10% qoq to 4.1 m t

o Product mixed improved: finished steel sales up by 22%

o Standard products sales up by 36% driven by domestic and export sales of re-bars/billets (+31%) and HRC (+44%)

• Steel output grew by 3% qoq to 4.0 m t

o Higher production at Russian Long Products and the US divisions

• 100% capacity utilization of the core assets

• Slab sales to international subsidiaries and associates: 0.8 m t (47% of total slab sales)

5

STEEL PRODUCTION

SALES STRUCTURE

UTILIZATION RATES BY SEGMENT

0,36 0,44 0,31

0,47 0,45 0,45 1,62 1,66 1,57

1,24 1,07 1,45

1,09 1,04

1,12

3,95

0,83

3,77

0,89

4,14

0,77

Q1 2015external

sales

Q1 2015subsidiaries

andassociates

Q4 2015external

sales

Q4 2015subsidiaries

andassociates

Q1 2016external

sales

Q1 2016subsidiaries

andassociates

HVAproducts

Standardproducts

Semis*

Semis to NBH

Semis tosubsidiaries

3,09 3,26 3,20

0,69 0,53 0,630,09 0,08 0,16

3,87 3,86 3,99

0,0 0

0,5 0

1,0 0

1,5 0

2,0 0

2,5 0

3,0 0

3,5 0

4,0 0

4,5 0

Q1 2015 Q4 2015 Q1 2016

Russian flat products Russian long products Foreign rolled products

100%

72% 74%

94%

68%

75%Russian flat

products

20%Russian long

products

5%Foreign rolled

products

100%NLMK Group

Global average

M tonnes

=+ +

M t

M t

* Including sales to NBH

Solid performance against extremely weak global market

Q1’16 HIGHLIGHTS

• Q1’16 KEY HIGHLIGHTS

o Revenue: $1,577 m (-4% qoq; -29% yoy)

o EBITDA: $290 m (-10% qoq; -55% yoy)

o EBITDA margin: 18% (-2 p.p. qoq; -11 p.p. yoy)

o Net profit: $57 m (-25% qoq; -82% yoy)

o Capex: $121 m (-19% qoq; +4% yoy)

o Free cash flow*: $275m (+147% qoq; -21% yoy)

• FINANCIAL POSITION AS OF 31/03/2016

o Net Debt: $967 m (-11% qoq; -22% yoy)

o Net Debt/EBITDA: 0.6x (0.6x as of 31/12/15)

• DECLARED DIVIDENDS

o Q4’15: 14,564 million rubles (2.43 rubles per share)

o Q1’16: 6,772 million rubles (1.13 rubles per share)

6

FINANCIAL PERFORMANCE

FINANCIAL POSITION

0%

5%

10%

15%

20%

25%

30%

0

500

1 000

1 500

2 000

2 500

3 000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

Revenue EBITDA EBITDA margin

$ M

0,0

0,5

1,0

1,5

0

1 000

2 000

3 000

4 000

5 000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

Total Debt Cash & CE** Net Debt/EBITDA, rh

$ M

* Free cash flow = operational cash flow minus capex minus advances for VAT payments on imported equipment minus net interest payments

** Cash & CE stands for Cash & Cash Equivalents and short-term investments

Q2 2016 performance will improve as the market recovers

Q2’2016 OUTLOOK

• MARKET

o Global market: world steel demand should stabilize in Q2 supported by better supply discipline, cost inflation and stronger demand in the global markets

o Russian market: seasonal uptick in demand and global steel price trends continue to drive domestic prices up

o European market: steel consumption growth is anticipated to seasonally restore supported by low inventory levels. Steel prices are driven by better demand, reduced competition from imports and cost push.

o US market: steady demand in construction and car manufacturing to support steel consumption with energy sector to restrain growth. Weakening imports pressure and cost inflation to support steel prices

• OPERATIONAL RESULTS

o Better demand in Russian and global markets to translate into stronger sales

o The Group capacity utilization to remain above 90%

• FINANCIAL RESULTS

o Improving market conditions in early 2016 to drive financial performance in Q2’16

7

CONTENTS

8



3. Segment Results

4. Annex

$ M

Strong sales partially offset price softening

Q1’16 PROFITABILITY

• EBITDA down by 10% qoq to $290 m

o Due to narrowing price/cost spreads as selling prices bottomed

• (-) Russian Flat Productso (-) Narrowed price spreads and price recognition lag effect

o (+) Strong sales both in Russia and export markets

o (+) Higher share of finished products

• (+) Foreign Rolled Productso (+) Demand growth in the US and EU market

o (+) Widening price spreads to semis

• (+) Russian Long Productso (-) Narrowed long products/scrap price spreads

o (+) Growth in sales volumes, mostly by a reduction in accumulated stocks of finished products

o (+) Reduced costs in the periods of lower utilization rates

• (-) Mining o (-) Lower ruble prices

o (-) Lower Q1 sales due to bottom level prices prompting growth in Q2 sales

9

Q1’16/ Q4’15 EBITDA ANALYSIS

EBITDA BY SEGMENT

321 290

-39 -25

-20

40 13

EBITDAQ4'15

Russianflat

products

Foreignrolled

products

Russianlong

products

Mining Otheroperationsincluding

intersegmental

EBITDAQ1'16

$ M

64 83 58

540

272233

-13 -30

11

31

-18

-5

18

13

-7

641

321290

Q1'15 Q4'15 Q1'16

Mining Russian flat productsForeign rolled products Russian long productsOther operations including intersegmental

EBITDA

Net working capital change

Other non-cash operations*

Income tax

OPERATING CASH FLOW

Net interest

Capex**

Change of advances VAT payments (capex)

FREE CASH FLOW

Net decrease in borrowings

FREE CASH FLOW TO EQUITY

Decrease in deposits and financial investment

Dividends

FX rate change and other factors

CHANGE IN CASH 203

22

-153

106

228

-47

275

2

-121

-28

421

-31

-2

164

290

2,5x growth in Free Cash Flow generation

CASH FLOW

• Q1’16 Net Operating Cash Flow: $421 M

o Working capital release of $164 m

Decrease in slab stocks at NLMK USA due to higher sales

Usage of winter scrap inventories at Russian assets

Drop in finished steel inventories at Russian Long products segment due to higher sales

o Q1’16 capex: $121 m

• 2.5X growth in Q1 FCF to $275 M

o Solid base for dividends payout

o Leading to net debt reduction and improved liquidity

10

Q1’16 CASH FLOW BRIDGE, $M

* Foreign currency exchange gains, other income/(expenses)** Including capitalized interest of $9 m for Q1’16

Superior debt profile

DEBT POSITION

• Net debt reduction 11% qoq

o Net Debt: $0.97 bn (-11% qoq, -22% yoy)

o Total debt: $2.67 bn (flat qoq, +4% yoy)

• Strong liquidity maintained

o Cash and cash equivalents*: $1.7 bn (+7% qoq, +29% yoy)

• NET DEBT / 12M EBITDA: 0.61x (+0.05 p. qoq)

11

DEBT MATURITY AND LEVERAGE

FINANCIAL DEBT CHANGE IN Q1’16

NET DEBT CHANGE IN Q1’16

3,2

3,02,9

3,1

3,02,9

2,7

2,9

2,6

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Weighted average maturity

1,4

1,1

0,8

0,70,5

0,5

0,5

0,6

0,6

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Net debt/EBITDA

2,12

2,63

2,07

0,56 -0,05 0,04 0,60

31 Dec'15 Net borrowings FX rate change andother*

31 Mar'16

ST debt LT debt

1,09

0,42

0,120,15

0,02

0,97

-1,0

-0,5

0,0

0,5

1,0

1,5

Net Debt(31 Dec '15)

Net operatingcash flow

Capex Dividends FX rate andother factors

Net Debt(31 Mar '16)

$ BN

$ BN

* Cash and cash equivalents and short term investments** include interest accrued

2.68 2.67

499

376

984

703

85

0

200

400

600

800

1 000

2016 2017 2018 2019 2020 and on

RUB bonds ECA lines Eurobonds (USD) Revolvers for W/C funding PXF

Strong liquidity position and comfortable debt maturity profile

LIQUIDITY AND DEBT MATURITY PROFILE

• Strong liquidity position of $1.7 bn with additional $1.1 bn of credit lines

• Comfortable debt maturity profile

o ST debt $0.58 bn* incl. revolver lines for W/C financing, RUB bonds, short term part of ECA-backed financing

o LT debt $2.07 bn, incl. Eurobonds, RUB bonds, PXF andLT part of ECA-backed financing

12

LIQUIDITY AND ST-DEBT PAYMENTS*

DEBT MATURITY*

$ M

$ M

Available credit lines

1 699

578

1 107

84273

142 79

Liquid assets Q2'16 Q3'16 Q4'16 Q1'17 12 months

CONTENT

13



3. Segment Results

4. Annex

8% 6% 3% 3%

37% 35%27% 26%

24% 30%

19% 23%

13% 15%

14% 14%

6% 5%

7% 5%

3% 4%

6% 6%

12% 12%

Sales volumeQ4 15

Sales volumeQ1 16

RevenueQ4'15

RevenueQ1'16

Other operations**

Transformer

Dynamo

Pre-painted

Galvanized

CRC

HRC

Slabs

Pig iron

1 4061 289 1 270 1 201 1 223

1 025928

603 537342

409 322

274210

462 528 540366 403 272 233

23% 29%34%

23% 26%

21% 20%

-20%

-10%

0%

10%

20%

30%

40%

0,0

500 ,0

1 00 0,0

1 50 0,0

2 00 0,0

2 50 0,0

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

Revenue from intersegmetal sales Revenue from third parties

EBITDA EBITDA margin

Solid EBITDA margin even in weak price environment

RUSSIAN FLAT PRODUCTS

• SALES TO 3RD PARTIES UP BY 2% QoQ

o (+) Improved demand in export markets

o (+) Finished steel sales up 15% qoq

o (-) Change in presentation of export sales*

• EXTERNAL REVENUE DECREASE BY 9% QoQ

o (+) Increase in sales volumes

o (-) Weak domestic prices and delayed exports sales recognition (better prices in Q2)

• EBITDA REDUCTION TO $233 M

o (+) Higher share of finished products

o (-) Narrowed price spreads

14

SEGMENT REVENUE AND EBITDA

SALES & REVENUE FROM 3RD PARTIES

COST OF SALES IN Q1’16

19%

22%

6%6%10%

4%

5%1%

10%

10%

8%

Iron ore materials

Coke and coal

Scrap

Ferroalloys

Other raw materials

Electricity

Natural gas

Other energy resources

Personnel

Other expenses and changes in inventories

Depreciation

2.401 m t $1,025 m2.458 m t $928 m

**Revenue from the sale of other products and services

$ M

$801 m

+2% -9%

*Since Q1’16 export sales of other segments via traders have been accounted as sales of corresponding segments. Initially those shipments were accounted as sales of Russian Flat Product segment

Increase in sales despite low seasonal activity in the Russian market

RUSSIAN LONG PRODUCTS

• SALES TO 3RD PARTIES UP BY 43% QoQo (+) Higher exports of billets and long products

o (+) Change in presentation of export sales*

• EXTERNAL REVENUE UP BY 17% QoQo (+) Strong sales volumes

o (-) Seasonally weak domestic prices and weak global prices

• EBITDA IMPROVED BY 74% QoQo (-) Narrowed long products/scrap price spreads

o (+) Growth in sales volumes, mostly by a reduction in accumulated stocks of finished products

o (+) Reduced costs in the periods of lower utilization rates

15




** Revenue from the sale of scrap, other products (ex. by-products) and services

61%

3%5%

7%

8%

10%5%

Scrap

Ferroalloys

Other raw materials

Electricity

Personnel

Other expenses

Depreciation

$177 m

72% 73% 68% 68%

14% 10% 17% 11%

14% 17% 15%16%

Sales volumeQ4'15

Sales volumeQ1'16

RevenueQ4'15

RevenueQ1'16

Scrap and other**

Billets

Metalware

Long products

625 k t $165 m$142 m438 k t

$ M

+43% +17%

378

302231

267220

142165

115

94

4395

88

68 24

53 38 317

27

-18

-5

11% 10%

11%

2%

9%

-8%

-2%

-10%

-5%

0%

5%

10%

15%

-100,0

0,0

100 ,0

200 ,0

300 ,0

400 ,0

500 ,0

600 ,0

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16



* Starting from Q1’16 export sales of long products through export traders are accounted as sales of Russian Long products segment

Extremely low iron ore prices drove EBITDA decline

MINING

• SALES VOLUMES DOWN BY 4% QoQ

o (-) Additional stock created to support Q2’16 volumes with higher prices

• REVENUE DOWN BY 26% QoQ

o (-) Lower sales volumes

o (-) Lower RUB prices

• EBITDA MARGIN AT 54%, EBITDA OF $58 M

16


SALES AND REVENUE


* Other operations include limestone, dolomite and other sales

8%

23%

6%

30%

13%

18%

Raw materials

Electricity

Natural gas

Other energy resources

Personnel

Other expenses

Depreciation

$44 m

72% 76%67% 72%

28% 24%27% 21%

7% 7%

Sales volumeQ4'15

Sales volumeQ1'16

RevenueQ4'15

RevenueQ1'16

Otheroperations*

Iron ore salesto third parties

Iron ore salesto Lipetsk site

4.303 m t $107 m$ 145 m4.485 m t

70 7046 56

443 25

178

126

89

110

103

103

82

145 100

6474

77 83

58

58%

51%47%

45%

54%57%

54%

0%

10%

20%

30%

40%

50%

60%

70%

0,0

50, 0

100 ,0

150 ,0

200 ,0

250 ,0

300 ,0

Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16



$ M

-4 % -26 %

Widening spreads and higher sales resulted in a positive EBITDA

FOREIGN ROLLED PRODUCTS

• SEGMENT SALES UP BY 26% QoQ

o (+) NLMK Dansteel sales +9% qoq

o (+) NLMK USA sales volumes + 31% qoq

• SEGMENT’S PROFITABILITY IMPROVEDo (+) Increase in sales volumes

o (+) Widening spreads b/w slabs and finished steel

o (+) Inventory of expensive slabs exhausted (USA)

17



* Revenue from the sale of other products and services

24% 21% 23% 20%

37% 41%28% 32%

22% 24%

23% 26%

17% 14%

18% 16%

8% 6%

Sales volumeQ4'15

Sales volumeQ1'16

RevenueQ4'15

RevenueQ1'16

Other operations*

Galvanized

CRC

HRC

Thick plate

Semi-finished

590 k t $317 m$ 282 m469 k t

502 502 523488

420382

358

282317

355 34 30

-13-42

-12 -30

11

7%

1%

7% 6%

-3%

-11%

-3%

-11%

3%

-100,0

0,0

100 ,0

200 ,0

300 ,0

400 ,0

500 ,0

600 ,0

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

Revenue from third parties EBITDA EBITDA margin

$ M

+26 % +12 %

CONTENT

18

1. Market update & headline numbers

2. Financial highlights

3. Segment results

4. Annex

M tonnes

8% 6% 7%

7% 8% 6%13% 13% 14%

18% 17% 20%

30% 25% 23%

8% 9% 9%

Q1'15 Q4'15 Q1'16

Other products*

Pig iron

Slabs

Billets

HRC

Thick plates

CRC

Galvanized

Pre-painted

Electrical

Long products

Metalware

Sales volumes followed market trends in the US and Russia

SALES STRUCTURE

• Q1’16: SALES UP BY 10% QoQ TO 4.14 MT

o +37 % QoQ Longs

o +18% QoQ Flats

o +8% QoQ high value added products

o -5% QoQ of semi-finished

• Q1’16: REVENUE DOWN 4% QoQ TO $1.58 BN

o (-) Decrease in steel prices

• PRICE ENVIRONMENT

o Russia: prices dropped by 5% QoQ

o Russia export: prices declined by 1% QoQ

o Europe: prices down by 5% QoQ

o USA: prices increased by 5% QoQ

19

SALES STRUCTURE BY PRODUCT

REVENUE BY PRODUCT

0,44 0,32 0,46

0,24 0,22 0,19

0,47 0,43 0,53

0,79 0,750,99

1,42 1,35 1,31

Q1'15 Q4'15 Q1'16

Pig iron

Slabs

Billets

HRC

Thick plates

CRC

Galvanized

Pre-painted

Electrical

Long products

Metalware

3.96 3.77 4.14

1.642.22 1.58

* Revenue from Other operations includes sales of other products (iron ore, coke, scrap and others)

$ BN

$ Bn

Capturing opportunities in the Russian market

SALES GEOGRAPHY

• +11% QoQ GROWTH IN GLOBAL SALES

o +33% QoQ in North America

o +26% QoQ in European Union

o +7% YoY to Middle East, incl. Turkey

• +8% QOQ - SALES TO RUSSIAN MARKET

o Despite seasonally weaker demand

20

NLMK SALES TO THE RUSSIAN MARKET

STEEL PRODUCT SALES BY REGION

REVENUE BY REGION

by sector by product type

71%

9%

20%

0%

20%

40%

60%

80%

100%

Sales by industriesin Q1'16

Pipe producers

Machine building

Construction andinfrastructure 29%

54%

17%

Sales by producttype in Q1'16

Semi-finished

Flat steel

Long products andmetalware

1,41 1,45 1,56

0,81 0,770,97

0,32 0,340,360,53 0,45

0,600,33 0,21

0,160,550,55

0,48

0

1

1

2

2

3

3

4

4

5

Q1 15 Q4 15 Q1 16

Others

SE Asia

N.America

M. East*

EU

Russia

0,78 0,61 0,59

0,390,37 0,32

0,170,14 0,13

0,39

0,24 0,28

0,31

0,19 0,18

0

1

2

3

Q1 15 Q4 15 Q1 16

Others

SE Asia

N. America

M. East*

EU

Russia

2.22

1.641.58

* incl. Turkey

M tonnes3.96 3.77 4.14

949 900 858

466 450 453

213 321160

146 122154

1 775 1 7931 625

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

-

200,0

400,0

600,0

800,0

1 000,0

1 200,0

1 400,0

1 600,0

1 800,0

2 000,0

Q1'15 Q4'15 Q1'16

To third parties NBH NLMK USA NLMK Dansteel

222 176242

132103

142

74

78

82109

111

121

536

468

588

01,2 34017 52,4 68035 13,7 02052 64,9 36070 16,1 70087 67,4 04105 28,6 38122 79,8 72140 211, 10615 812, 34017 513, 57419 314, 8082116, 04222 817, 27624 518, 51026 319, 7442820, 97829 822, 21231 523, 44633 324, 68035 125, 91436 827, 14838 628, 38240 329, 61642 130, 85043 832, 08445 633, 31847 334, 55249 135, 78650 837, 02052 638, 25454 339, 48856 140, 72257 841, 95659 643, 19061 344, 42463 145, 65864 846, 89266 648, 12668 349, 36070 150, 59471 951, 82873 653, 06275 454, 29677 155, 53078 956, 76480 657, 99882 459, 23284 160, 46685 961, 70087 662, 93489 464, 16891 165, 40292 966, 63694 667, 87096 469, 10498 170, 33899 971, 57301 672, 80703 474, 04105 275, 27506 976, 50908 777, 74310 478, 97712 280, 21113 981, 44515 782, 67917 483, 91319 285, 14720 986, 38122 787, 61524 488, 84926 290, 08327 991, 31729 792, 55131 493, 78533 295, 01934 996, 25336 797, 48738 598, 72140 299, 95542101 ,1894 4102 ,4234 5103 ,6574 7104 ,8914 9106 ,1255 1107 ,3595 2108 ,5935 4109 ,8275 6111 ,0615 8112 ,2955 9113 ,5296 1114 ,7636 3115 ,9976 5117 ,2316 6118 ,4656 8119 ,6997120 ,9337 2122 ,1677 4123 ,4017 5124 ,6357 7125 ,8697 9127 ,1038 1128 ,3378 2129 ,5718 4130 ,8058 6132 ,0398 8133 ,2738 9134 ,5079 1135 ,7419 3136 ,9759 5138 ,2099 6139 ,4439 8140 ,678141 ,9120 2143 ,1460 3144 ,3800 5145 ,6140 7146 ,8480 9148 ,0821149 ,3161 2150 ,5501 4151 ,7841 6153 ,0181 7154 ,2521 9155 ,4862 1156 ,7202 3157 ,9542 4159 ,1882 6160 ,4222 8161 ,6563162 ,8903 1164 ,1243 3165 ,3583 5166 ,5923 7167 ,8263 8169 ,0604170 ,2944 2171 ,5284 4172 ,7624 5173 ,9964 7175 ,2304 9176 ,4645 1177 ,6985 2178 ,9325 4180 ,1665 6181 ,4005 8182 ,6345 9183 ,8686 1185 ,1026 3186 ,3366 5187 ,5706 6188 ,8046 8190 ,0387191 ,2727 2192 ,5067 3193 ,7407 5194 ,9747 7196 ,2087 9197 ,4428198 ,6768 2199 ,9108 4201 ,1448 6202 ,3788 7203 ,6128 9204 ,8469 1206 ,0809 3207 ,3149 4208 ,5489 6209 ,7829 8211 ,017212 ,2510 1213 ,4850 3214 ,7190 5215 ,9530 7217 ,1870 8218 ,4211219 ,6551 2220 ,8891 4222 ,1231 5223 ,3571 7224 ,5911 9225 ,8252 1227 ,0592 2228 ,2932 4229 ,5272 6230 ,7612 8231 ,9952 9233 ,2293 1234 ,4633 3235 ,6973 5236 ,9313 6238 ,1653 8239 ,3994240 ,6334 2241 ,8674 4243 ,1014 5244 ,3354 7245 ,5694 9246 ,8035 1248 ,0375 2249 ,2715 4250 ,5055 6251 ,7395 8252 ,9735 9254 ,2076 1255 ,4416 3256 ,6756 5257 ,9096 6259 ,1436 8260 ,3777261 ,6117 2262 ,8457 3264 ,0797 5265 ,3137 7266 ,5477 9267 ,7818269 ,0158 2270 ,2498 4271 ,4838 6272 ,7178 7273 ,9518 9275 ,1859 1276 ,4199 3277 ,6539 4278 ,8879 6280 ,1219 8281 ,356282 ,5900 1283 ,8240 3285 ,0580 5286 ,2920 7287 ,5260 8288 ,7601289 ,9941 2291 ,2281 4292 ,4621 5293 ,6961 7294 ,9301 9296 ,1642 1297 ,3982 2298 ,6322 4299 ,8662 6301 ,1002 8302 ,3342 9303 ,5683 1304 ,8023 3306 ,0363 5307 ,2703 6308 ,5043 8309 ,7384310 ,9724 2312 ,2064 3313 ,4404 5314 ,6744 7315 ,9084 9317 ,1425318 ,3765 2319 ,6105 4320 ,8445 6322 ,0785 7323 ,3125 9324 ,5466 1325 ,7806 3327 ,0146 4328 ,2486 6329 ,4826 8330 ,7167331 ,9507 1333 ,1847 3334 ,4187 5335 ,6527 7336 ,8867 8338 ,1208339 ,3548 2340 ,5888 4341 ,8228 5343 ,0568 7344 ,2908 9345 ,5249 1346 ,7589 2347 ,9929 4349 ,2269 6350 ,4609 8351 ,6949 9352 ,9290 1354 ,1630 3355 ,3970 5356 ,6310 6357 ,8650 8359 ,0991360 ,3331 2361 ,5671 3362 ,8011 5364 ,0351 7365 ,2691 9366 ,5032 1367 ,7372 2368 ,9712 4370 ,2052 6371 ,4392 8372 ,6732 9373 ,9073 1375 ,1413 3376 ,3753 5377 ,6093 6378 ,8433 8380 ,0774381 ,3114 2382 ,5454 3383 ,7794 5385 ,0134 7386 ,2474 9387 ,4815388 ,7155 2389 ,9495 4391 ,1835 6392 ,4175 7393 ,6515 9394 ,8856 1396 ,1196 3397 ,3536 4398 ,5876 6399 ,8216 8401 ,0557402 ,2897 1403 ,5237 3404 ,7577 5405 ,9917 7407 ,2257 8408 ,4598409 ,6938 2410 ,9278 4412 ,1618 5413 ,3958 7414 ,6298 9415 ,8639 1417 ,0979 2418 ,3319 4419 ,5659 6420 ,7999 8422 ,0339 9423 ,2680 1424 ,5020 3425 ,7360 5426 ,9700 6428 ,2040 8429 ,4381430 ,6721 2431 ,9061 3433 ,1401 5434 ,3741 7435 ,6081 9436 ,8422438 ,0762 2439 ,3102 4440 ,5442 6441 ,7782 7443 ,0122 9444 ,2463 1445 ,4803 3446 ,7143 4447 ,9483 6449 ,1823 8450 ,4164451 ,6504 1452 ,8844 3454 ,1184 5455 ,3524 7456 ,5864 8457 ,8205459 ,0545 2460 ,2885 4461 ,5225 5462 ,7565 7463 ,9905 9465 ,2246 1466 ,4586 2467 ,6926 4468 ,9266 6470 ,1606 8471 ,3946 9472 ,6287 1473 ,8627 3475 ,0967 5476 ,3307 6477 ,5647 8478 ,7988480 ,0328 2481 ,2668 3482 ,5008 5483 ,7348 7484 ,9688 9486 ,2029 1487 ,4369 2488 ,6709 4489 ,9049 6491 ,1389 8492 ,3729 9493 ,6070 1494 ,8410 3496 ,0750 5497 ,3090 6498 ,5430 8499 ,7771501 ,0111 2502 ,2451 3503 ,4791 5504 ,7131 7505 ,9471 9507 ,1812508 ,4152 2509 ,6492 4510 ,8832 6512 ,1172 7513 ,3512 9514 ,5853 1515 ,8193 3517 ,0533 4518 ,2873 6519 ,5213 8520 ,7554521 ,9894 1523 ,2234 3524 ,4574 5525 ,6914 7526 ,9254 8528 ,1595529 ,3935 2530 ,6275 4531 ,8615 5533 ,0955 7534 ,3295 9535 ,5636 1536 ,7976 2538 ,0316 4539 ,2656 6540 ,4996 8541 ,7336 9542 ,9677 1544 ,2017 3545 ,4357 5546 ,6697 6547 ,9037 8549 ,1378550 ,3718 2551 ,6058 3552 ,8398 5554 ,0738 7555 ,3078 9556 ,5419557 ,7759 2559 ,0099 4560 ,2439 6561 ,4779 7562 ,7119 9563 ,9460 1565 ,1800 3566 ,4140 4567 ,6480 6568 ,8820 8570 ,1161571 ,3501 1572 ,5841 3573 ,8181 5575 ,0521 7576 ,2861 8577 ,5202578 ,7542 2579 ,9882 4581 ,2222 5582 ,4562 7583 ,6902 9584 ,9243 1586 ,1583 2587 ,3923 4588 ,6263 6589 ,8603 8591 ,0943 9592 ,3284 1593 ,5624 3594 ,7964 5596 ,0304 6597 ,2644 8598 ,4985599 ,7325 2600 ,9665 3602 ,2005 5603 ,4345 7604 ,6685 9605 ,9026 1607 ,1366 2608 ,3706 4609 ,6046 6610 ,8386 8612 ,0726 9613 ,3067 1614 ,5407 3615 ,7747 5617 ,0087 6

Q1'15 Q4'15 Q1'16

HRC CRC HDG Plates (NLMK Dansteel)

Uptick in sales both in the US and Europe markets

FOREIGN ASSETS PERFORMANCE

21

NBH FINANCIAL RESULTS

NBH ROLLED PRODUCT SALES

NLMK USA AND NLMK DANSTEEL SALES

SLABS SALES FROM RUSSIAN FLAT DIVISION

218 187228

164135

175

85

86

8713

9

11479

417

501

0,001,052,103,154,215,266,317,368,419,4610,5111,5712,6213,6714,7215,7716,8217,8718,9319,9821,0322,0823,1324,1825,2326,2927,3428,3929,4430,4931,5432,6033,6534,7035,7536,8037,8538,9039,9641,0142,0643,1144,1645,2146,2647,3248,3749,4250,4751,5252,5753,6254,6855,7356,7857,8358,8859,9360,9862,0463,0964,1465,1966,2467,2968,3469,4070,4571,5072,5573,6074,6575,7076,7677,8178,8679,9180,9682,0183,0684,1285,1786,2287,2788,3289,3790,4291,4892,5393,5894,6395,6896,7397,7998,8499,89100,94101,99103,04104,09105,15106,20107,25108,30109,35110,40111,45112,51113,56114,61115,66116,71117,76118,81119,87120,92121,97123,02124,07125,12126,17127,23128,28129,33130,38131,43132,48133,53134,59135,64136,69137,74138,79139,84140,89141,95143,00144,05145,10146,15147,20148,25149,31150,36151,41152,46153,51154,56155,61156,67157,72158,77159,82160,87161,92162,98164,03165,08166,13167,18168,23169,28170,34171,39172,44173,49174,54175,59176,64177,70178,75179,80180,85181,90182,95184,00185,06186,11187,16188,21189,26190,31191,36192,42193,47194,52195,57196,62197,67198,72199,78200,83201,88202,93203,98205,03206,08207,14208,19209,24210,29211,34212,39213,44214,50215,55216,60217,65218,70219,75220,80221,86222,91223,96225,01226,06227,11228,17229,22230,27231,32232,37233,42234,47235,53236,58237,63238,68239,73240,78241,83242,89243,94244,99246,04247,09248,14249,19250,25251,30252,35253,40254,45255,50256,55257,61258,66259,71260,76261,81262,86263,91264,97266,02267,07268,12269,17270,22271,27272,33273,38274,43275,48276,53277,58278,63279,69280,74281,79282,84283,89284,94285,99287,05288,10289,15290,20291,25292,30293,36294,41295,46296,51297,56298,61299,66300,72301,77302,82303,87304,92305,97307,02308,08309,13310,18311,23312,28313,33314,38315,44316,49317,54318,59319,64320,69321,74322,80323,85324,90325,95327,00328,05329,10330,16331,21332,26333,31334,36335,41336,46337,52338,57339,62340,67341,72342,77343,82344,88345,93346,98348,03349,08350,13351,18352,24353,29354,34355,39356,44357,49358,55359,60360,65361,70362,75363,80364,85365,91366,96368,01369,06370,11371,16372,21373,27374,32375,37376,42377,47378,52379,57380,63381,68382,73383,78384,83385,88386,93387,99389,04390,09391,14392,19393,24394,29395,35396,40397,45398,50399,55400,60401,65402,71403,76404,81405,86406,91407,96409,01410,07411,12412,17413,22414,27415,32416,37417,43418,48419,53420,58421,63422,68423,74424,79425,84426,89427,94428,99430,04431,10432,15433,20434,25435,30436,35437,40438,46439,51440,56441,61442,66443,71444,76445,82446,87447,92448,97450,02451,07452,12453,18454,23455,28456,33457,38458,43459,48460,54461,59462,64463,69464,74465,79466,84467,90468,95470,00471,05472,10473,15474,20475,26476,31477,36478,41479,46480,51481,56482,62483,67484,72485,77486,82487,87488,93489,98491,03492,08493,13494,18495,23496,29497,34498,39499,44500,49501,54502,59503,65504,70505,75506,80507,85508,90509,95511,01512,06513,11514,16515,21516,26517,31518,37519,42520,47521,52522,57523,62524,67525,73

Q1'15 Q4'15 Q1'16

HRC Plates Coated CRC

355

-15

264

-56

283

-7

RevenueQ1'15

EBITDAQ1'15

RevenueQ4'15

EBITDAQ4'15

RevenueQ1'16

EBITDAQ1'16

K tonnes

K tonnes

K tonnes

$ M

QoQ

Total 20%

CRC 16%

Coated 1%

Plates 30%

HRC 22%

QoQ

Total 26%

Plates 9%

HDG 5%

CRC 38%

HRC 38%

QoQ

Total -9%

NLMK Dansteel 27%

NLMK USA -50%

NBH 1%

To third parties -5%

NLMK has one of the lowest slab cash cost globally

CASH COST OF SLAB

22

Note: consolidated cash cost of slab at Lipetsk site.

11,612,0

11,010,8 10,8 10,7 10,7

12,312,5 12,4 12,5

11,9

396388

348

310 308295

225

197

238

197 190

159

0

100

200

300

400

500

0

3

6

9

12

15

2011 2012 2013 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

Slab cash cost, k rub/t (lh) Slab cash cost, $/t (rh)

k rub/t $/t

29.39 31.09 31.85 35.96 35.00 36.19 47.42 62.19 52.65 62.98 74.63

RUB/$ exchange rate

www.nlmk.com

Sergey Takhiev

NLMK

Investor Relations

Russia, 115054, Moscow

18, Bakhrushina str, bldg 1

t. +7 495 915 15 75

m.+7 985 760 55 74

[email protected]

mailto:[email protected]

Steel market update - Q1 2016

Business

Transcript of Steel market update - Q1 2016