Metalloinvest (the "Company"), a leading global iron ore and hot briquetted iron (HBI) manufacturer and supplier and one of the regional high-quality steel producers, today announces its audited financial results under IFRS for 2020.

Management comments

Nazim Efendiev, General Director of Metalloinvest Management Company, commented:

“In 2020, the Company's strategy aimed to improve product quality and ensure stable sales, has demonstrated its sustainability. Despite external challenges, the Company has shown good financial results. The main event of the past year was the COVID-19 pandemic, and the Company took a number of measures aimed at ensuring the safety of not only its employees, but also all residents of the regions where it operates. Extensive programs of assistance to medical institutions were promptly deployed, and employee salaries were indexed twice. Continuing its focus on sustainable development, in February of this year, the Company presented the Strategy for Quality Changes, calculated until 2032. Metalloinvest's mission is to be the basis for the evolution of modern metallurgy for future generations. We see our Company as a world leader in the production of high-quality iron ore, metallized and steel products, which are the basis for the movement of the metallurgical industry towards the introduction of green technologies and reduce the carbon footprint. ”

Alexey Voronov, Deputy General Director for Finance and the economy of Metalloinvest Management Company, added:

“At the end of 2020, the company's EBITDA amounted to $ 2.5 billion, slightly changing compared to last year. The Company's efforts were largely aimed at optimizing costs, which ensured an increase in EBITDA margin to 38.5% from 36.1% a year earlier. Separately, it is worth noting the contribution of the fourth quarter to the results of the year - EBITDA amounted to $ 838 million, which became the best quarterly indicator of the Company over the past 8 years. We expect the favorable market conditions to continue into early 2021. Considerable work has been done in terms of reducing the debt burden, optimizing the parameters of the Company's loan portfolio and expanding sources of liquidity. Thus, in 2020, about $ 260 million was spent on debt repayment, several refinancing transactions were completed, including through successful public borrowings in the local market at record low rates, and new credit lines were opened. As a result, the total debt of the Company decreased by 9.5% to $ 3.7 billion, and the maturities in 2021–2022. are 0.5 billion dollars, which is fully secured by the available volume of liquidity. The Net debt /EBITDA indicator at the end of 2020 was 1.3x, which is a comfortable level for the implementation of the investment program in full. ”

Financial results

• Revenue $ 6,409 million (-7.9%)
• EBITDA $ 2,471 million (-1.7%)
• EBITDA margin 38.5% vs. 36.1% in 2019
• Net profit $ 1,337 million (-22.8%)
• Total debt $ 3,675 million (-9.5% on vs. 31 December 2019)
• Net debt /EBITDA 1.3x vs. 1.5x as at 31 December 2019
• Capital expenditure $ 496 million (-4.0 %)

Production results

• Iron ore 40.4 million tonnes (+ 0.5%)
• Pellets 27.6 million tonnes (-1.8%)
• HBI /DRI 7.8 million tonnes (-0.9%)
• Pig iron 2.3 million tons (-16.3%)
• Steel 5.0 million tons (+ 2.0%)

Key corporate events

Operations and capital expenditures

• Commissioning of CCM No. 3 at OEMK after completion of technical re-equipment
• Modernization of the concentrating plant at MGOK to increase concentrate production
• Reconstruction of OM-3 at MGOK to introduce advanced technology for additional grinding of concentrate
• MGOK has started pilot production premium pellets for metallization
• OEMK has completed overhaul of the roasting machine, launched a new ball rolling mill
• MGOK has introduced an advanced conveyor technology for transporting ore from an open pit with a capacity of 15 million tonnes of ore per year
• New steam boilers of the CHPP launched at Ural Steel
• After technical re-equipment, blast furnace No. 2 was put into operation at Ural Steel

Financial activities

• Obtaining a new credit rating from ACRA at 'AA + (RU)' with a stable outlook
• Confirmation of the credit rating from the international credit rating agency Fitch at 'BB +' with a stable outlook
• Posted by open subscription ruble bonds of series BO-04 and BO-10 in the amount of 15 billion rubles.
• Extension of two existing reserve credit lines in ING Bank for a total amount of 200 million dollars (or the equivalent in euros), interest rate on one of the lines in the amount of $ 100 million keeps pre

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