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 shareholders 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 approximately 70% of hard coking coal required by Severstal’s steel business, while also selling significant volumes to external customers both in Russia and abroad.

Severstal Russian Steel

The Company’s core asset is Cherepovets Steel mill, 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) – CHMF GDRs on the London Stock Exchange (LSE) – SVST


RTS1.35 %
MICEX1.35 %
MSCI Russia1.96 %
FTSE Russia IOB1.85 %
Russian Depositary Index1.61 %
Bloomberg World Iron/Steel Index3.13 %

as at 10 February 2017


Credit ratings

 Standard&Poor'sMoody'sFitch Ratings
PAO Severstal Credit Rating/OutlookBBB-/StableBa1/ StableBBB-/Stable
Date of Rating*20 September 201621 February 201720 October 2016

*“Date of Rating” does not reflect subsequent confirmations


Benchmarking 2016 against our KPIs

*Not less than 50% of net income 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 2016 in Figures & Charts

Operational performance, million tonnes20162015Change, %
Steel products (Consolidated)10.710.8(-1%)
Coking coal concentrate4.15.7(-28%)
Iron ore pellets10.810.6(+2%)
Iron ore concentrate4.14.1

Financial performance

Profitability highlights, million US$

Working capital optimisation and smart CAPEX*, million US$

*Consisting of cash outlays for purchases of property, plant and equipment and intangible assets

Sustainable Free Cash Flow generation, million US$

* consisting of cash outlays for purchases of property, plant and equipment and intangible assets

Clear dividend policy and sustainable returns, RUB

*includes special dividends
**to be approved at the AGM on 9 June 2017

Debt maturity schedule*, million US$

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

Net debt, Net debt/EBITDA, million US$