Annual report and accounts 2012

Shareholder Information

In Russia, Severstal shares are traded on Moscow Exchange (the unified MICEX-RTS stock exchange). Overseas they are circulated in the form of depositary receipts on the London Stock Exchange and through the PORTAL trading system in the US.

Severstal was named winner in the Best Overall Investor Relations category for large cap companies at the IR Magazine Russia & CIS awards ceremony held on July 12, 2012 at the Ritz-Carlton hotel in Moscow.

Severstal shares/GDRs at stock exchanges

Stock ExchangeTicker
Moscow Exchange, MICEX-RTSCHMF
LSE, LondonSVST

Severstal’s stocks contribute to the capitalisation of major indices on the stock exchanges on which the company is listed. Severstal is a solid part of MSCI Russia and FTSE Russia IOB at LSE and makes a sizeable contribution to the MICEX and RTS indices in Russia.

According to sector analysts, Severstal has remained one of preferred steel and mining stocks at the end of 2012, being endorsed based on its solid fundamentals, low leverage structure and sustainable dividend payments. In 2012 Severstal outperformed its key peers with annual GDR price growth of almost 7%. According to analysts’ reports Severstal still has growth potential due to its continuous focus on improvement of efficiencies, commissioning of the new steel making facilities which will boost the company’s sales of long steel products, and continued growth of high value-added products in the company’s portfolio mix.

Severstal exhibited a high daily trade volume which reflects the company’s sound liquidity position. Severstal’s GDRs average daily turnover at LSE was almost US$20 million while average daily turnover at Moscow Exchange (MICEX) exceeded US$20 million in 2012.

Severstal was named winner in the Best Overall Investor Relations category for large cap companies at the IR Magazine Russia & CIS awards ceremony held on July 12, 2012 at the Ritz-Carlton hotel in Moscow.

The winners of the prestigious IR awards were selected by Thomson Reuters Extel, IR Magazine Russia & CIS’s research partner, as part of their independent 2012 Russia IR Survey. More than 359 respondents from 270 brokerage firms and research houses – 37% from Russia, 20% from the UK and 11% from USA – contributed to the in-depth, independent survey.

This was the second significant award won by Severstal in a matter of months. In May 2012 Severstal was named winner in the Best Corporate Development Strategy category at the annual awards hosted by RCB Group and investor.ru portal. After reviewing the successful implementation of strategies presented by the nominated companies in 2011, the judges declared that Severstal had been the most successful in achieving its objectives.

Severstal share/GDR performance in 2012

GDR price at LSE in 2012, USD

London Stock Exchange201220112010
Maximum (closing price), US$15.4620.1717.07
Minimum (closing price), US$10.439.509.35
At year open12.3518.0710.12
At year end12.1711.3916.85
Change,%(2%)(37%)67%
Turnover, US$ mln4,9289,0296,373

 

Share Price at RTS in 2012, USD

RTS201220112010
Maximum (closing price), US$15.3519.8617.10
Minimum (closing price), US$11.0011.009.65
At year beginning12.0018.0010.00
At year end12.2212.5017.10
Change,%2%(31%)71%
Turnover, US$ mln3621

 

Share Price at MICEX in 2012, RUB

MICEX201220112010
Maximum (closing price), Roubles451.60588.92519.21
Minimum (closing price), Roubles341.30314.50294.85
At year beginning389.00552.02303.60
At year end369.10365.10518.19
Change,%(5%)(34%)71%
Turnover, mln Roubles161,038260,848202,730

Severstal contribution to key indices

IndexWeight*
RTS1.36%
MICEX1.36%
MSCI Russia0.83%
FTSE Russia IOB0.93%
FTSE BRIC 50 Index0.21%

* By February 2013
Source: Bloomberg, Moscow Exchange

Credit ratings

In 2012 S&P upgraded Severstal’s rating to BB+/Stable, Moody’s – to Ba1/Stable, Fitch – to BB/Stable

Credit rating
(Long-term, foreign currency)
Moody’sStandard & Poor’sFitch
 Ba1BB+BB
Latest update07.06.201221.06.201206.08.2012

Dividends

Our dividend policy can be found on our website at: http://www.severstal.com/eng/about/corporate_governance/dividends/

The following dividends per share and per GDR have been approved by the Board of Directors:

  
3m 20124.07 roubles (US$0.12)
6m 20121.52 roubles (US$0.05)
9m 20123.18 roubles (US$0.10)

On February 28, 2013 the Board of Directors also recommended a dividend of 1.89 roubles (approximately US$0.06) per share for the 12 months ended 31 December 2012. The dividend is to be approved at the AGM on 13 June 2013. If approved, the dividend amount for all the quarters of 2012 will total 10.66 roubles.

Financial calendar

  
31 January 2012Full year 2012 Operational results
5 March 2013Full year 2012 IFRS financial statements
April 2013Q1 2013 Operational results
20 May 2013Q1 2013 IFRS financial statements
13 June 2013Shareholders’ Annual General Meeting
July 2013H1 & Q2 2013 Operational results
29 August 2013H1 2013 IFRS financial statements
September-October 2013Severstal’s Balakovo mini mill analysts site visit
October 20139M & Q3 2013 Operational results
November 2013Severstal’s Capital Markets day
14 November 20139M 2013 IFRS financial statements