September 21, 2020

Mechel won the 1C: Project of the Year competition

Moscow, Russia - September 21, 2020 - Mechel PAO (MOEX: MTLR, NYSE: MTL ), a leading Russian mining and metallurgical company, announces that the company's digitalization project in the field of HR management has been recognized as one of the winners of the 1C: Project of the Year competition.

A project called Automation personnel accounting and payroll accounting for Mechel Group enterprises in the 1C: Salary and Human Resources Management of Building 8 unified information system was awarded as the best in the Salary, Human Resources Management and Personnel Accounting (HRM) nomination. The customer was Mechel PAO, the contractor was Mechel-InfoTech subsidiary.

The project was implemented from January 2018 to January 2020, it covered 10 regions of the company's presence and more than 60 enterprises of the Group. Mechel ". The goal of the project was to unify the processes of personnel accounting and payroll accounting, as well as to reduce the cost of technical support for systems by refusing to operate heterogeneous software products.

Before the launch of a unified information system, the Group's enterprises used about 30 software direction. A large-scale work was carried out to transfer historical data from information systems that were previously used. As part of the unification, Mechel-InfoTech specialists had to take into account the territorial distribution of assets and the various areas of activity of each enterprise. As a result of the project, the so-called seamless integration with the corporate system "1C: Document Management" was introduced, which made it possible to automate the receipt and sending of reference information and personnel documents. Due to this, it was possible to reduce labor costs, increase the speed of data provision. Another significant result of the project was a significant reduction in paperwork.

The system provided personnel records and payroll accounting for 60,000 Mechel employees. To support users, a centralized support service has been created that allows you to quickly track incoming requests and respond to requests.

“We have implemented the largest project based on 1C: Salary and Human Resources Management. Today, the mining, metallurgical, sales, energy and transport enterprises of Mechel operate in a single configuration. In the process of forming the system, not only the uniform norms of legislation were taken into account, but also industry-specific regulations suitable for certain categories of personnel. Despite the scale of the project, the deadlines were extremely tight, but our team of IT specialists successfully coped with the tasks set, ”said Valery Dyachenko, Director of Information Technologies at Mechel PAO.

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Mechel PAO Ekaterina Videman Tel .: +7-495-221-88-88ekaterina.videman@mechel.com

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Mechel is a global mining and metallurgical company. The company's products are supplied to Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore, steel, rolled products, ferroalloys, heat and electricity. All businesses operate in a single production chain: from raw materials to high value-added products.

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Certain statements in this press release may contain assumptions or forecasts regarding future events or the future financial performance of Mechel PAO in accordance with the provisions of the 1995 US Securities Litigation Reform Act. We would like to warn you that these statements are only assumptions, and the actual course of events or results may differ materially from those stated. We do not intend to revise or update these statements. We refer you to the documents that Mechel periodically submits to the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These documents contain and describe important factors, including those identified in the "Risk Factors" section and "Note on the forecasts contained in this document" in Form 20-F. These factors could cause material differences between actual results and our assumptions and forecasts regarding upcoming events, including but not limited to achieving the anticipated level of profitability, growth, cost and effectiveness of our recent acquisitions, the impact of competitive pricing, the ability to obtain the necessary regulatory approvals and confirmations. the state of the Russian economy, the political and legal environment, volatility of stock markets or the value of our shares or ADRs, financial risk management and the impact of the general business situation and global economic conditions.

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