NLMK Group (LSE: NLMK, MOEX: NLMK) announces 3Q08 operating results. and 9 months. 2019 *. Group sales decreased by 6% qoq to 4 million tonnes due to repairs at NLMK's site. The share of finished goods sales increased by 4 pp. q /q up to 68%.

Key indicators Q3. 2019:

• Steel production decreased by 6% qoq (-16% yoy) to 3.7 mt due to continued overhaul of blast furnace and converter production facilities of NLMK. Sales volumes against the backdrop of lower production decreased by 6% qoq to 4 mt (-9% yoy) due to lower sales of semi-finished products. At the same time, the share of sales of products with high added value increased by 3 pp. QoQ to 33% (+2 p.p. YoY).
• Sales in home markets decreased 6% QoQ to 2.8 mln tonnes due to seasonal repairs at the European assets of the Group. Compared to 3 sq. 2018 sales rose 2% YoY driven by higher sales of billets for oil and gas pipes. The share of the Group's sales in the “home” markets amounted to 68% (-4 pp qoq; +4 pp yoy).
• Sales in export markets amounted to 1.3 million tonnes (+ 9% qoq), thanks to an increase in the supply of slabs to third parties. Due to the repairs carried out at European assets and the decrease in their demand for semi-finished products, the sales of slabs were reoriented to external customers. Relatively 3 sq. 2018 sales decreased by 18% YoY due to a drop in pig iron exports against the backdrop of repairs at NLMK and a decrease in demand for billets.

Key indicators 9 mon. 2019:

• Steel production decreased by 9% YoY to 11.9 Mt in connection with overhauls of NLMK's blast furnace and converter facilities in Q2-3 2019 d. Sales remained at the level of the previous year at 12.9 million tonnes with an increase in the share of finished products by 1 pp. up to 64%. The share of products with high added value also increased by 1 pp. YoY up to 30%.
• Sales in home markets increased to 8.5 million tonnes (+ 5% YoY) due to an increase in demand for long products and billets for the production of oil and gas pipes at the Russian market. Sales in export markets decreased by 6% yoy to 4.5 million tonnes.

* Hereinafter, information on production and sales volumes for Q3. 2019 is preliminary and subject to change. Hereinafter, steel production by NLMK Group and sales to domestic markets are presented taking into account NBH indicators. Product sales are shown excluding NBH. Supplies to NLMK Group's “home” markets - sales of products by Group companies in regions of direct production in Russia, the EU and the USA.

pdf883.86 KBNLMK_Trading_Update_3Q_2019 RUS.pdf xlsx122.72 KBNLMK_Operating_Results_3Q_2019 RUS.xlsx

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