NLMK Group announces new stage of development by implementation of Strategy-2017

The NLMK Group, the largest Russian and leading international steel producer, has announced new stage of development due to start of the Strategy-2017 implementation.

The Strategy-2017 provides for investments in the amount of $1.6 billion and additional income in the amount of $1.0 billion per year. The strategy is aimed at the disclosure of the company’s internal potential on account of the increase of the industrial chain’s operating efficiency, the strengthening of the vertical integration in the key types of raw materials, the growth of high value-added products sales, as well as the continuation of programs in the field of environmental protection, industrial safety and the development of human capital assets.

The Group will continue the conservative financial policy, aimed at the further reduction of the debt burden and the financing of investment projects on account of the internal cash flow. Due to this approach, the Group plans to achieve ratio net debt/EBITDA in the amount of 1.0x.

In addition, the NLMK Group intends to pay at least 20% of its net profit under US GAAP to shareholders and to maintain the average level of dividends in the amount of 30% of the net profit during the next 5 years.