ANNUAL REPORT 2017

Additional information

Shareholder Information

Severstal’s shares are traded on the largest Russian exchange – MICEX Stock exchange, which is a part of Moscow Exchange Group. Moreover, Severstal’s shares are circulated in the form of depositary receipts on the London Stock Exchange and through the PORTAL trading system in the US.

Listing and tickers

Moscow Exchange (MICEX) – CHMF GDRs on the London Stock Exchange (LSE) – SVST

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

Indexes

IndexWeight*
RTS1.38 %
MICEX1.38 %
MSCI Russia1.78 %
FTSE Russia IOB2.10 %
Russian Depositary Index1.54 %
Bloomberg World Iron/Steel Index2.64 %
* as at 11 December 2017 

Credit ratings

 Standard&Poor'sMoody'sFitch Ratings
PAO Severstal Credit Rating/OutlookBBB-/StableBaa3/PositiveBBB-/Stable
Date of Rating**20 September 201629 January 201820 October 2016
** “Date of Rating” does not reflect subsequent confirmations    

Share price at MICEX in 2017, RUB

GDR Price at LSE in 2017, USD

During 2017 Severstal continued to be a leader in terms of efficiency improvement implementation which enabled the Company to maintain a relatively high share price premium in Russian steel sector.

In such a volatile market environment the Company’s ability to generate substantial free cash flow level throughout the cycle as well as its clear intention to realise significant value for shareholders via generous dividend payments balanced with an aim to retain strong financial position makes it the best in class protective asset.

In 2017 Severstal hosted its annual Capital Markets Day in London on the 2nd of November. During the event top management highlighted TSR (Total Shareholder Return) as a key indicator of assessing the Company’s performance. Severstal believes that TSR will be a more comprehensive indicator allowing to assess financial and non-financial performance of the Company in order to maximise shareholder value.

Dividends

Severstal resumed paying dividends in 2010. The Severstal Board of Directors has modified the Company’s dividend policy to return 50% of the net profit for a given reporting period to shareholders provided that Net debt/EBITDA is below 1.0x, reflecting Severstal’s mission to maximise shareholder returns.

In 2017 at the Capital Markets Day the top management of Severstal confirmed that the target for dividend payout will be Free Cash Flow for the period, given that Net Debt is below 1.0x. Should Net Debt/EBITDA ratio go below 0.5x the Company may allocate to dividends more than full free cash flow generated.

Dividends per share/GDR announced for the periods ended in 2017, RUB:

2018 financial calendar