Severstal Annual Report 2015 Home > Strategic Review > Severstal at a Glance

Severstal at a Glance

PAO Severstal (“Severstal”, “the Company”, or “the Group”) is a vertically integrated steel and steel-related mining company with major assets in Russia, as well as investments in other regions. The Company’s operations began in 1955 at the Cherepovets Steel Mill in Russia. Severstal’s strategy is to maximise shareholder value by building a healthy and high quality business that will generate higher than market average earnings throughout the economic cycle. The Company comprises two major operational divisions: Severstal Resources and Severstal Russian Steel.

Severstal Resources

Severstal’s mining assets form the basis of Severstal’s vertically integrated business model. Severstal Resources supplies almost all of the iron ore and coking coal required by Severstal’s steel business, while also selling significant volumes to external customers both in Russia and abroad.

Severstal Russian Steel

In 2015 Severstal celebrated the 60 year anniversary of steel production at Cherepovets Steel Mill (CherMK), the Company’s core asset. CherMK is one of the lowest-cost steel mills in the world, and is conveniently located within easy access of the Company’s mining operations, the Baltic ports and Russia’s industrial heartland. Severstal Russian Steel is a leading Russian steel producer, offering a broad product mix with a high proportion of high value-added flat steel products and increasing volumes of long products for construction and downstream sales.

Severstal’s share capital structure

 

Listing and tickers

Moscow Exchange (MICEX) - CHMFGDRs on the London Stock Exchange (LSE) - SVST

Indexes

IndexWeight*
RTS1.56%
MICEX1.56%
MSCI Russia1.78%
FTSE Russia IOB2.05%
Russian Depositary Index1.60%
Bloomberg World Iron/Steel Index2.87%
* as of the CoB 22 April 2016

Credit ratings

 Standard&Poor'sMoody'sFitch Ratings
PAO Severstal Credit Rating/OutlookBB+ / NegativeBa1 / StableBB+ / Positive
Date of Rating*04 February 201504 December 201506 May 2015
*”Date of Rating” does not reflect subsequent confirmations

 

Benchmarking 2015 against Our KPIs


* Not less than 50% of the net profit for the reporting period provided that Net debt/EBITDA is below 1.0x. Should the ratio increase to higher than 1.0x, Severstal would return to its previous dividend payout of 25% of net profit.

 


More of 2015 in Figures & Charts

Sales (million tonnes)

Financials (US$ million)

Working capital ongoing optimisation and prudent approach to investments (US$ million)


Inventories (US$ million)
and days of inventory turnover

Receivables (US$ million)
and days of receivables turnover

Payables (US$ million)
and days of payables turnover

 


Debt Maturity Schedule*, (US$ million)

Debt represents the principal amount of debt.
* Figures exclude accrued interest and unamortised balance of transactional costs

 


Free cash flow* generation in FY2014,
(US$ million)

Free cash flow* generation in FY2015,
(US$ million)

* Free cash flow is determined as an aggregate amount of the following lines: Net cash from operating activities – continuing operations, CAPEX, proceeds from disposal of PPE, interest received and dividends received

 


Clear dividend policy and sustainable returns (roubles)

* Q3 2014 dividends include special dividends
** FY 2015 dividend to be approved at the AGM on 24 June 2016


Existing cash balances and committed
credit lines cover three years of
maturities (US$ million)

One of the lowest leverages globally
(US$ million)


Severstal Chairman’s Review

In 2015 we continued to benefit from the fundamental strengths of our vertically-integrated low cost business model.

Read More

Sustainability

For Severstal, corporate social responsibility is a cornerstone of successful business and a driver of competitive advantage.

Read More
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