Severstal at a Glance

PAO Severstal (“Severstal”, “the Company”, or “the Group”) is a vertically integrated steel and steel-related mining company with its major assets located in Russia and investments in other regions. The Company was founded 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 generates 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 are a fundamental part of the Company’s vertically integrated business model. Severstal Resources supplies almost all of the iron ore and approximately 60% of the hard coking coal consumed 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 the Cherepovets Steel mill, one of the lowest cost steel mills in the world, strategically located near to the Company’s mining operations, the Baltic ports and Russia’s industrial heartland. Severstal Russian Steel is a leading Russian steel producer. The division has a broad product portfolio, comprising a majority 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

Indexes

Index	Weight*
RTS	1.38 %
MICEX	1.38 %
MSCI Russia	1.78 %
FTSE Russia IOB	2.10 %
Russian Depositary Index	1.54 %
Bloomberg World Iron/Steel Index	2.64 %
* as at 11 December 2017

Credit ratings

	Standard&Poor's	Moody's	Fitch Ratings
PAO Severstal Credit Rating/Outlook	BBB-/Stable	Baa3/Positive	BBB-/Stable
Date of Rating**	20 September 2016	29 January 2018	20 October 2016
** “Date of Rating” does not reflect subsequent confirmations

Our key performance indicators remain the same, we will add Total Shareholder Return (TSR) during 2018

*Severstal analysis, quarterly and annual reports. ** Dividend policy: 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. *** The majority of cash out for: Q4 16, Q1 17, Q2 17, Q3 17 dividends paid in 2017, subject to FX.