|
Investor relations contact: Dmitriy Kolomytsyn, CFA +7 (495) 504 0504 |
Media relations contact: Maria Simonova +7 (915) 322 62 25 simonova_mn@nlmk.com |
NLMK Group Q3 and 9M 2021 IFRS Financial Results
NLMK Group's EBITDA1 (LSE, MOEX: NLMK) in Q3 2021 increased by 11% qoq to $2.3 bn; EBITDA margin was 50%. Free cash flow (FCF) reached $1.1 bn. The Board of Directors recommended approving Q3 2021 dividends in the amount of 13.33 RUB/share (100% of the FCF).
Key highlights
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Sales volumes |
4,146 |
4,329 |
-4% |
4,443 |
-7% |
12,383 |
13,300 |
-7% |
Revenue |
4,560 |
4,139 |
10% |
2,229 |
2x |
11,566 |
6,860 |
69% |
EBITDA 2 |
2,287 |
2,052 |
11% |
579 |
3.9x |
5,505 |
1,755 |
3.1x |
EBITDA margin |
50% |
50% |
+ 0 p.p. |
26% |
+24 p.p. |
48% |
26% |
+22 p.p. |
Profit for the period 3 |
1,622 |
1,359 |
19% |
312 |
5.2x |
3,756 |
678 |
5.5x |
Free cash flow 4 |
1,114 |
864 |
29% |
239 |
4.7x |
2,430 |
874 |
2.8x |
Net debt 5 |
2,739 |
1,963 |
40% |
1,946 |
41% |
2,739 |
1,946 |
41% |
Net debt/EBITDA 5 |
0.43x |
0.42x |
|
0.87x |
|
0.43x |
0.87x |
|
Q3 2021 key highlights
· Revenue grew by 10% qoq to $4.6 bn (+2х yoy) with an increase in steel product prices.
· EBITDA grew by 11% qoq to $2.3 bn (+3.9x yoy) due to a wider steel products/raw materials spread. EBITDA margin remained flat qoq, at 50% (+24 p.p. yoy).
· Free cash flow grew by 29% qoq to $1.1 bn (+4.7x yoy) driven by stronger financial performance.
· Net profit grew by 19% qoq to $1.6 bn (+5.2х yoy).
1 Consolidated financial results are prepared under IFRS. Reporting periods of the Company are 3M, 6M, 9M and 12M. Quarterly figures are obtained by calculation, including in the segment reporting. Figures for comparable periods may differ from figures posted earlier because of rounding off to integers.
2 EBITDA is the operating profit before equity share in financial results of joint ventures, impairment of capital assets and losses from retirement of fixed assets, allowed for amortization and depreciation. EBITDA calculations and further details are presented in the Appendix.
3 Profit for the period attributable to NLMK shareholders.
4 Free cash flow is determined as net cash from operations plus interest received net of interest paid and capital investment. Free cash flow calculations are presented in the Appendix.
5 Net debt is calculated as the sum of long-term and short-term borrowings less cash and cash equivalents, as well as short-term deposits at period end. Net debt / EBITDA is represented by net debt as at the end of the reporting period and EBITDA as last 12 months EBITDA. Net debt calculations are presented in the Appendix.
9M 2021 key highlights
· Revenue grew by 69% yoy to $11.6 bn amid higher average sales prices and an increase in the share of finished products in the sales portfolio.
· EBITDA grew by a factor of 3.1 yoy to $5.5 bn due to wider steel products/raw materials price spreads and the implementation of Strategy 2022 projects. EBITDA margin was 48% (+22 p.p. yoy).
· Free cash flow increased by a factor of 2.8 yoy to $2.4 bn driven by EBITDA growth. This was partially offset by the outflow of funds for working capital replenishment amid growing steel and raw material prices.
· Net profit increased by a factor of 5.5 yoy up to $3.8 bn driven by gross profit growth.
Comment from NLMK Group CFO Shamil Kurmashov:
"In Q3 2021, average steel prices grew across all key sales markets. In the US, prices hit new highs. Starting from the middle of the quarter, demand growth in export markets slowed down, coupled with the ongoing recovery of local production and imports. The decrease in steel production and declining exports in China supported global steel prices, leading to an adjustment of iron ore prices at the same time. Australia coal export prices continued to climb amid restocking activities in India, Europe, and Japan.
In August 2021, NLMK Lipetsk performed equipment repairs following an incident in the steelmaking production oxygen supply infrastructure. Capacity utilization rates recovered after the repairs, reaching 98% in September. In this context, the Company's sales totalled 4.1 m t (-4% qoq). Favourable pricing conditions contributed to an increase in NLMK Group's revenue by 10% qoq to $4.6 bn, and EBITDA growth by 11% qoq to $2.3 bn. EBITDA margin remained flat vs. the Q2 level of 50%. Free cash flow increased by 29% qoq to $1.1 bn.
Net debt grew by 40% qoq to $2.7 bn due to working capital increase and dividend payments outflow in Q3 2021. Net debt/EBITDA remained practically flat at 0.43х.
In line with the Group's Dividend Policy, the management recommended the NLMK Board of Directors to pay $1.1 bn in Q3 2021 dividends."
TELECONFERENCE
NLMK is pleased to invite the investment community to a conference call with the Company management:
Thursday, 21 October 2021
• 10:30 a.m. - New York
• 15:30 p.m. - London
• 17:30 p.m. - Moscow
To join the conference call and webcast, the participants are invited to dial:
US number:
+1 929 477 0324 (local access) // 800 479 1004 (toll free)
UK number:
+44 (0) 330 336 9127 (local access) // 0800 358 6377 (toll free)
Russian number:
+7 495 213 1767 (local access) // 8 800 500 9283 (toll free)
Conference code: 8105625
To join the webcast, please follow the link:
https://www.webcast-eqs.com/nlmk20211021
* We recommend participants start dialling 5-10 minutes in advance to avoid waiting.
MANAGEMENT COMMENTS
Q3 2021 market review
· Global steel demand growth rates slowed down in Q3 2021, driven by a decrease in the effect of deferred consumption and by weaker industrial output growth. Other limiting factors included supply chain disruptions amid a shortage of ships and a shortage of electronic components.
· Steel consumption in the EU decreased by 5% qoq (+35% yoy) due to the seasonal decline in economic activity in August and a negative demand trend in the automotive segment amid a shortage of semiconductors. Demand for steel products in the United States increased by 6% qoq (+34% yoy) driven by industrial production growth and an extra liquidity inflow contributing to an uptick in business activity.
· Demand for steel products in China went down by 15% qoq (-13% yoy) amid stricter government regulation. Reduced state support measures and a tightening credit policy caused a drop in housing construction in Q3 2021. Pursuing the goal to reduce controlled emissions, China introduced more restrictions on energy resource consumption, causing a decline in output in energy-intensive industries.
· In Russia consumption of steel products decreased by 12% qoq (-12% yoy) amid slower growth rates in the construction and industrial production sectors.
Q3 2021 prices
· Coal prices: Australian coking coal prices grew by 88% qoq (+121% yoy) amid high steel output outside of China. Coking coal prices in China increased by 53% qoq (+212% yoy) due to decreased internal output and reduced supplies from Mongolia.
· Iron ore raw material prices decreased by 14% qoq (+44% yoy) amid declining steel output in China and growth of supply from Brazil and Australia in September 2021.
· Market prices** for flat steel in the USA increased by 23% qoq (+247% yoy) against the backdrop of stable demand in industrial sectors of the economy and repairs of several large blast furnaces in September. In the EU, prices grew by 7% qoq (+ 136% yoy). However, in August and September prices in the European market declined amid a seasonal slowdown in demand, an increase in import supply and growth of stocks.
· Dollar-denominated prices for steel products on the Russian market grew by 2% qoq (+125% yoy). Dollar-denominated rebar prices grew by 10% qoq (+94% yoy).
· Slab prices in export destinations (FOB Black Sea) decreased by 9% qoq (+89 % yoy).
*Data on steel consumption trends on regional markets are estimates. ** Market prices reflect the level of prices for a given calendar period and differ from the average sales prices of the Company and its segments due to the time lag of the production & sales cycle. Q3 2021 output and sales breakdown · Steel output went down by 15% qoq (+1% yoy) to 3.9 m t due to the incident in the steelmaking production oxygen supply infrastructure at the Lipetsk site in August and the subsequent repairs. · Sales decreased to 4.1 m t (-4% qoq; -7% yoy) with the reduction of slab supply to NBH and export markets caused by the decline in steel output. · Sales mix: the share of semi-finished products was 34% (-3 p.p. qoq; -4 p.p. yoy) as slab and billet supplies to third parties declined. Exports of square billet went down driven by a decrease in the product margin caused by the export duties on steel introduced in Russia for the period from August to December 2021. Sales of finished products amounted to 2.7 m t (+1% qoq, flat yoy). · Sales in the "home" markets reached 2.8 m t (flat qoq and yoy). US sales grew by +17% qoq (+60% yoy) amid strong end demand. In the EU, sales increased by 7% qoq (-12% yoy). In Russia sales dropped by 7% qoq (-9% yoy) due to the slowdown in end demand and purchasing activity of traders in anticipation of further price reduction. Export sales increased by 2% qoq to 1.4 m t. The 21% yoy decrease was due to the high base of Q3 2020, when supplies were being made to non-traditional export destinations. 9M 2021 output and sales breakdown · Steel output increased to 12.9 m t (+8% yoy) as upgrades were completed at NLMK BF and BOF operations and following output growth at NLMK Russia Long Products and NLMK USA. · Sales totalled 12.4 m t (-7% yoy) with the resumption of intra-group slab deliveries to NLMK USA (+0.9 m t yoy) amid a strong demand trend in the region (last year, NLMK USA was rolling slabs from external markets) and a decrease in pig iron production taking into account repairs at NLMK's BF operations in Q1-Q3 2021. · Sales mix: sales of semi-finished products to third parties decreased by 21% yoy driven by the growth of slab deliveries to NLMK USA and NLMK DanSteel. Slab shipments to NBH totalled 1.2 m t (-23% yoy) amid the La Louvière Hot Strip Mill upgrade in H1 2021. Sales of finished products increased by 3% yoy to 8.2 m t. · Sales on "home" markets increased by 2% yoy to 8.3 m t driven by the steel consumption increase in Russia and in the USA. Sales in export markets decreased by 23% yoy to 4.0 m t due to the high base of 9M 2020, when sales were reallocated to export. |
* Hereinafter NLMK Group steel output and sales on home markets include NBH. Consolidated sales are given without NBH. Sales to home markets mean sales of the Group's companies in the regions, where production capacities are located in Russia, Europe, and the US. |
NLMK GROUP KEY FINANCIALS Q3 2021 revenue · Revenue grew by 10% qoq to $4.6 bn (+2х yoy) due to an increase in steel product prices. · Revenue from semi-finished product sales went down by 4% qoq to $1.1 bn (+77% yoy) driven by a decrease in slab supplies to NBH and the Russian market against the backdrop of a decrease in steel output, as well as due to a decrease in the export of billets. The share of semi-finished products in total revenue was down by 3 p.p. qoq to 24% (-3 p.p. yoy). · Revenue from sales of finished products increased by 16% qoq to $3.2 bn (+2.2x yoy) due to the growth of rolled steel sales and prices in the key markets. The share of finished rolled steel in the consolidated revenue totalled 69% (+3 p.p. qoq; +4 p.p. yoy). · The share of the Russian market in total revenue went down to 37% (-6 p.p. qoq; -9 p.p. yoy) due to the slowdown in end demand and purchasing activity of the traders expecting a further steel price downturn. The US share increased to 25% (+6 p.p. qoq; + 12 p.p. yoy) due to high demand and record-high prices in the region. The ЕU share was 18% (+1 p.p. qoq; +7 p.p. yoy). |
9M 2021 revenue · Revenue increased by 69% yoy to $11.6 bn due to higher sales prices on all key markets, which was partially offset by the decrease in sales to external customers as slab supplies were redistributed to NLMK USA (see above). · Revenue from semi-finished product sales increased by 43% yoy to $2.9 bn amid an increase in average prices, which was partially offset by the increase of intragroup slab supplies. The share of semi-finished products in total revenue decreased by 4 p.p. yoy to 25%. · Revenue from finished product sales increased by 84% yoy to $7.9 bn. The share of finished products in the revenue totalled 69% (+6 p.p. yoy). · The share of the Russian market remained flat year-on-year at 41%. The share of revenue from sales to Asian markets restored to traditional levels, amounting to 2% (-8 p.p. yoy) due to the recovery of demand on the traditional sales markets. The share of the North American region increased to 20% (+4 p.p. yoy), and the share of the EU region grew to 18% (+2 p.p. yoy). |
Q3 2021 EBITDA · EBITDA* grew by 11% qoq to $2.3 bn (+3.9x yoy), due mainly to wider steel/raw material price spreads. · Commercial costs increased by 7% qoq to $231 m (+11% yoy) due to increased transportation costs and reduced intra-group deliveries. · General and administrative expenses decreased by 5% qoq to $110 m due to the high base of the previous quarter, when an additional reserve for bonus payments was accrued.
9M 2021 EBITDA · EBITDA grew by a factor of 3.1 yoy to $5.5 bn due to wider price spreads and a weaker ruble, and to the implementation of Strategy 2022 projects. · Commercial costs decreased by 2% yoy to $633 m driven by intragroup supply growth, to NLMK USA facilities in particular. · General and administrative expenses increased by 28% yoy to $323 m amid accrual of the Long-Term Incentive Programme reserves and annual salary indexation at NLMK's Russian companies. Net profit** · Net profit in Q3 2021 increased by 19% qoq to $1.6 bn amid EBITDA growth. · Net profit in 9M 2021 increased by a factor of 5.5 yoy to $3.8 bn. |
* EBITDA used in NLMK's financial releases is calculated as operating profit before equity share in net losses of associates and other companies accounted for using the equity method of accounting, impairment and write-off of assets, adjusted to depreciation and amortization. EBITDA is not an indicator of operating profit, operating activity or liquidity under IFRS, and NLMK discloses it because equivalent indicators could be used by investors and analysts. That said, NLMK's EBITDA should not be viewed on a standalone basis, or in place of profit before tax, or cash flows from operations, as defined by IFRS, or as an indicator of operational efficiency, or as the sum of free cash funds that NLMK can invest into business development. NLMK's EBITDA margin and EBITDA might not be comparable to similar indicators disclosed by other companies as there are no commonly accepted rules for calculating them. For instance, NLMK's EBITDA is calculated similar to what is termed as 'Adjusted EBITDA' in other companies, as NLMK's EBITDA excludes other profit/loss items in addition to interest payments, income tax, depreciation and amortization. **Profit for the period, attributable to NLMK shareholders. |
Q3 2021 free cash flow · Free cash flow increased by 29% qoq to $1.1 bn (+4.7х yoy) following EBITDA growth and investment reduction, which was partially offset by working capital growth. · Operational cash flow increased by 11% qoq to $1.4 bn. · The outflow of funds for working capital replenishment totalled $451 m due to: o -$223 m: an increase in advance payments for export duties in the Russian Federation, as well as an increase in VAT recoverable receivables against the backdrop of a decrease in prices for steel products with an increase in prices for raw materials. o -$262 m: an increase in the cost of raw materials and finished products in stocks, a seasonal increase in scrap stocks. o +$50 m: increased accounts payable amid coal price growth. 9M 2021 free cash flow · Free cash flow increased by a factor of 2.8 yoy to $2.4 bn, driven mainly by EBITDA growth. This was partially offset by the outflow of funds for working capital replenishment. · The outflow of funds for working capital replenishment totalled $1.2 m due to: o -$817 m: an increase in accounts receivable amid higher prices for steel products, an increase in VAT recoverable receivables due to the increase in prices for raw materials and advances on export duties. o -$772 m: growth of inventory prices, an increase in inventories at NLMK USA amid increased production, a seasonal increase in scrap stocks. o +$429 m: an increase in accounts payable due to higher coal prices, an increase in advance payments from the customers against the backdrop of a strong market, an increase in VAT payable amid growing sales prices in the Russian market. |
Investment
· The Group's investment in Q3 2021 decreased by 24% qoq to $272 m (-21% yoy) considering the high base of Q2 2021, when pellet cars were purchased. In addition, the Q3 investment load was partially shifted to NBH, where projects for hot strip mills and plate mills are being implemented as part of Strategy 2022.
· The Group's 9M 2021 investment totalled $863 m (+1% yoy).
Dividends
· In Q3 2021 the Company paid out $1.7 bn in dividends.
· On 21 October 2021 the Board of Directors recommended that shareholders approve the payment of Q3 2021 dividends in the amount of RUB 13.33 per share.
Strategy 2022 execution
· In Q3 2021 operational efficiency programmes added $49 m to our EBITDA (hereinafter vs. the 2020 cost base); investment project gains totalled $90 m.
· In 9M 2021 structural EBITDA gains from operational efficiency programmes totalled $119 m; investment projects added $129 m.
Debt management
· Total debt in Q3 2021 grew by 20% qoq to $3.4 bn amid the Group's drawdown on working capital funding lines.
· Net debt increased by 40% qoq to $2.7 bn amid cash outflow to pay out dividends for Q1-Q2 2021 and working capital growth on a strong market. Net debt/EBITDA remained practically flat, at 0.43х (0.42x as of 30.06.2021).
· The weighted average interest on debt liabilities decreased by 0.3 p.p. qoq to a record low of 2.4% (-0.6 p.p. yoy) driven by debt portfolio optimization.
NLMK Russia Flat Products |
Q3 2021 highlights · Sales decreased by 15% qoq to 3.0 m t (-9% yoy) amid lower slab output due to the incident in the steelmaking production oxygen supply infrastructure at the Lipetsk site. · Revenue in the Segment decreased by 6% qoq to $3.0 bn (+87% yoy) following lower sales, which was partially offset by increased steel product prices. · EBITDA totalled $1.2 bn (-17% qoq; +3.8х yoy) as sales went down and export tariffs were accrued, which was partially offset by investment project gains as part of Strategy 2022. 9M 2021 highlights · Sales in the Segment went down by 7% yoy to 9.5 m t as a result of reduced pig iron and finished steel shipments due to planned repairs at the BF operations in Q1-Q3 2021 and hot and cold rolling mills in Q2 2021, as well as an increase in the average slab supply lead time as shipments to NLMK USA were resumed. · Revenue grew by 66% yoy to $8.3 bn due to higher average sales prices and an increased share of finished products in sales, which was partially offset by lower shipments. The share of revenue from inter-segmental operations went up to 24% (+7 p.p. yoy). · EBITDA increased by a factor of 3.4 yoy to $3.3 bn, due mainly to wider steel product/raw materials spreads and implementation of Strategy 2022 projects. |
|
NLMK Russia Long Products |
Q3 2021 highlights · Sales decreased by 9% qoq to 0.75 m t (-7% yoy) amid lower export shipments of billets following the introduction of export tariffs for steel products in Russia on 1 August 2021. · Revenue went down by 3% qoq to $776 m (+72% yoy) following the decrease in sales. Revenue from inter-segmental operations decreased by 18% qoq to $175 m amid a temporary decrease of demand for scrap from the Lipetsk site. · EBITDA stood at $158 m, 1% higher qoq, due to wider long product/scrap price spreads, which was offset by lower sales. 9M 2021 highlights · Sales grew by 17% yoy to 2.3 m t against the backdrop of last year's low baseline, when the production programme was limited due to the COVID-19 pandemic. · Revenue increased by 92% yoy to $2.1 bn following the increase in sales and average sales prices for finished products. Revenue from operations with external buyers increased by 93% yoy to $1.6 bn. · EBITDA grew to $405 m (+6.6х yoy) as demand recovered in the construction segment and the rebar/scrap spread widened. The operational efficiency programme and Strategy 2022 investment projects had an additional positive effect. |
|
Mining and Processing of Raw Materials |
Q3 2021 highlights · Sales decreased by 6% qoq to 4.8 m t (+18% yoy) as demand went down due to the incident in the steelmaking production oxygen supply infrastructure at the Lipetsk site. The segment's concentrate output grew by 1% qoq to 5.1 m t. The corresponding growth of stocks in the division will be offset in subsequent quarters via shipments to Lipetsk to support steel output growth. · Revenue was up by 14% qoq to $783 m (+2.4х yoy) due to higher dollar-denominated prices of concentrate and pellets: 19% qoq (+115% yoy) and 29% qoq (+104% yoy), respectively. · EBITDA grew by 17% qoq to $686 m (+2.7х yoy) as revenue increased. 9M 2021 highlights · Sales reached 14.8 m t (+9% yoy) as a result of investment into expanding concentrate production capacities and against the low baseline of Q3 2020. · Revenue increased to $2.0 bn (+2х yoy), due mainly to higher global prices for raw materials and sales growth. · EBITDA totalled $1.7 bn (+2.3х yoy) against the backdrop of increased prices on raw materials markets and investment project gains. |
|
NLMK USA |
Q3 2021: · Sales increased by 17% qoq to 0.6 m t (+60% yoy) due to high demand for steel and additional measures aimed at supporting infrastructure construction in the US. · Revenue grew by 49% qoq to $1.0 bn (+4.7х yoy) amid increased sales and record-high steel product prices. · EBITDA increased by 66% qoq to $354 m (+$366 m yoy) as sales went up and the flat steel/slab spread improved. 9M 2021 highlights · Sales increased by 23% yoy to 1.5 m t as demand for steel in the US recovered and capacity utilization grew. · Revenue grew by a factor of 2.6 yoy to $2.1 bn due to higher sales and increased steel prices. · EBITDA increased to $632 m (+$663 m yoy) amid wider price spreads and higher sales. |
|
NLMK DanSteel* |
Q3 2021 highlights · Sales of plate went down by 20% qoq to 0.13 m t (+34% yoy) amid planned equipment repairs and seasonally low demand. · Revenue grew by 8% qoq to $169 m (+2.1х yoy) due to higher sales prices for plate, which was partially offset by lower sales volumes. · EBITDA increased by $26 m qoq to $13 m (+$16 m yoy) as the plate/slab spread widened. 9M 2021 highlights · Sales were up by 22% yoy to 0.47 m t against the low Q3 2020 baseline during the COVID-19 pandemic. · Revenue increased by 54% yoy to $470 m amid higher sales and favourable pricing conditions. · EBITDA stood at -$4 m due to shipments in Q1-Q2 2021 based on long-term contracts, signed before steel product prices went up. |
* NLMK Dansteel and the plate distribution network |
JV performance (NBH) |
Q3 2021 highlights · NBH Sales grew by 16% qoq to 0.4 m t following the completion of the first stage of the Hot Strip Mill upgrade at NLMK La Louvière (a Strategy 2022 project). The mill's step-by-step ramp-up impacted the year-on-year sales trend (-17%). · Revenue increased by 26% qoq to $447 m (+49% yoy) amid growing sales and higher European market prices. · EBITDA grew to $15 m vs. -$7 m in Q2 2021 (+$47 m yoy) as sales increased and flat steel/slab price spreads improved. 9M 2021 highlights · NBH sales went down by 21% yoy to 1.2 m t amid rolling capacity upgrades in H1 2021. · Revenue increased by 24% yoy to $1.2 bn as a result of higher steel product prices. · EBITDA totalled $16 m vs. -$65 m the year before due to wider price spreads, which was partially offset by lower sales volumes.
|
|
Appendix No. 1: Operating and financial results
(1) Sales markets
k t |
Total |
Sales markets |
|||||
Russia |
EU |
North America |
Middle East and Turkey |
Central and South America |
Other |
||
NLMK Group (with NBH) |
4,203 |
1,698 |
912 |
713 |
417 |
239 |
223 |
Division sales to third parties: |
|
|
|
|
|
|
|
NLMK Russia Flat |
2,365 |
1,140 |
312 |
122 |
377 |
230 |
184 |
NLMK Russia Long |
747 |
554 |
123 |
- |
36 |
5 |
29 |
International subsidiaries and affiliates, incl.: |
1,091 |
5 |
477 |
590 |
4 |
4 |
11 |
NLMK USA |
586 |
- |
- |
586 |
- |
- |
- |
European rolling facilities (NLMK DanSteel and NBH) |
505 |
5 |
477 |
4 |
4 |
4 |
11 |
(2) NLMK Russia Flat
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Steel product sales, incl.: |
2,983 |
3,527 |
-15% |
3,281 |
-9% |
9,507 |
10,182 |
-7% |
external customers |
2,364 |
2,387 |
-1% |
2,870 |
-18% |
6,834 |
8,204 |
-17% |
semis to NBH |
239 |
451 |
-47% |
308 |
-23% |
1,169 |
1,514 |
-23% |
intersegmental sales |
380 |
689 |
-45% |
102 |
3.7x |
1,504 |
464 |
3.2x |
Revenue, incl.: |
2,991 |
3,189 |
-6% |
1,600 |
87% |
8,297 |
5,012 |
66% |
external customers |
2,422 |
2,275 |
6% |
1,425 |
70% |
6,293 |
4,185 |
50% |
intersegmental operations |
569 |
914 |
-38% |
175 |
3.3x |
2,004 |
827 |
2.4x |
EBITDA |
1,154 |
1,393 |
-17% |
306 |
3.8x |
3,319 |
964 |
3.4x |
EBITDA margin |
39% |
44% |
-5 p.p. |
19% |
+20 p.p. |
40% |
19% |
+21 p.p. |
(3) NLMK Russia Long
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Steel product sales |
747 |
818 |
-9% |
802 |
-7% |
2,305 |
1,965 |
17% |
Revenue, incl.: |
776 |
803 |
-3% |
452 |
72% |
2,101 |
1,094 |
92% |
external customers |
601 |
589 |
2% |
337 |
78% |
1,639 |
848 |
93% |
intersegmental operations |
175 |
214 |
-18% |
115 |
52% |
462 |
246 |
88% |
EBITDA |
158 |
157 |
1% |
37 |
4.3x |
405 |
61 |
6.6x |
EBITDA margin |
20% |
20% |
0 p.p. |
8% |
+12 p.p. |
19% |
6% |
+13 p.p. |
(4) Mining Segment
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Iron ore products sales, incl.: |
4,845 |
5,159 |
-6% |
4,112 |
18% |
14,789 |
13,596 |
9% |
sales to Lipetsk plant |
4,587 |
4,881 |
-6% |
3,954 |
16% |
14,231 |
12,912 |
10% |
Revenue, incl.: |
783 |
685 |
14% |
330 |
2.4x |
1,989 |
978 |
2x |
external customers |
38 |
48 |
-21% |
38 |
0% |
90 |
72 |
25% |
intersegmental operations |
745 |
637 |
17% |
292 |
2.6x |
1,899 |
906 |
2.1x |
EBITDA |
686 |
585 |
17% |
250 |
2.7x |
1,703 |
725 |
2.3x |
EBITDA margin |
88% |
85% |
+3 p.p. |
76% |
+12 p.p. |
86% |
74% |
+12 p.p. |
(5) NLMK USA
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Steel product sales |
586 |
502 |
17% |
366 |
60% |
1,519 |
1,234 |
23% |
Revenue, incl.: |
1,039 |
699 |
49% |
223 |
4.7x |
2,141 |
838 |
2.6x |
external customers |
1,039 |
699 |
49% |
223 |
4.7x |
2,141 |
838 |
2.6x |
intersegmental operations |
- |
- |
0% |
- |
0% |
- |
- |
0% |
EBITDA |
354 |
213 |
66% |
(12) |
29.5x |
632 |
(31) |
20.4x |
EBITDA margin |
34% |
30% |
+4 p.p. |
-5% |
+39 p.p. |
30% |
-4% |
+34 p.p. |
(6) NLMK DanSteel
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Steel product sales |
130 |
162 |
-20% |
97 |
34% |
465 |
383 |
22% |
Revenue, incl.: |
169 |
157 |
8% |
80 |
2.1x |
470 |
305 |
54% |
external customers |
169 |
157 |
8% |
79 |
2.1x |
470 |
304 |
55% |
intersegmental operations |
- |
- |
0% |
1.0 |
-100% |
- |
1 |
-100% |
EBITDA |
13 |
(13) |
1x |
(3) |
4,3x |
(4) |
- |
0% |
EBITDA margin |
8% |
-8% |
+16 p.p. |
-4% |
+12 p.p. |
-1% |
0% |
-1 p.p. |
(7) NBH
k t/$ million |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Steel product sales |
384 |
329 |
17% |
461 |
-17% |
1,208 |
1,534 |
-21% |
Revenue, incl.: |
447 |
355 |
26% |
299 |
49% |
1,224 |
989 |
24% |
external customers |
434 |
344 |
26% |
286 |
52% |
1,188 |
953 |
25% |
intersegmental operations |
13.0 |
11.0 |
18% |
13.0 |
0% |
36 |
36 |
0% |
EBITDA |
15 |
(7) |
2.1x |
(32) |
0.5x |
16 |
(65) |
0.2x |
EBITDA margin |
3% |
-2% |
+5 p.p. |
-11% |
+14 p.p. |
1% |
-7% |
+8 p.p. |
(8) Sales by product
k t |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Pig iron |
245 |
133 |
30 |
437 |
389 |
Slabs |
1,068 |
1,337 |
1,082 |
1,083 |
1,215 |
Thick plates |
131 |
163 |
175 |
145 |
97 |
Hot-rolled steel |
1,023 |
904 |
957 |
947 |
887 |
Cold-rolled steel |
390 |
406 |
431 |
424 |
480 |
Galvanized steel |
320 |
334 |
279 |
273 |
315 |
Pre-painted steel |
69 |
96 |
81 |
82 |
129 |
Transformer steel |
69 |
77 |
67 |
78 |
64 |
Dynamo steel |
55 |
62 |
65 |
68 |
66 |
Billet |
90 |
139 |
105 |
96 |
86 |
Long products |
600 |
599 |
572 |
522 |
642 |
Metalware |
57 |
80 |
63 |
65 |
74 |
Other metal products* |
29 |
- |
- |
- |
- |
ИТОГО |
4,146 |
4,329 |
3,908 |
4,220 |
4,443 |
(9) Sales by region
k t |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Russia |
1,695 |
1,818 |
1,677 |
1,643 |
1,817 |
European Union |
869 |
890 |
805 |
852 |
482 |
Middle East, including Turkey |
413 |
507 |
536 |
567 |
580 |
North America |
713 |
624 |
468 |
604 |
562 |
Central and South America |
238 |
325 |
225 |
184 |
49 |
CIS |
86 |
76 |
91 |
101 |
135 |
Asia and Oceania |
114 |
68 |
23 |
190 |
794 |
Rest of World |
18 |
21 |
82 |
79 |
25 |
TOTAL |
4,146 |
4,329 |
3,908 |
4,220 |
4,443 |
(10) Revenue by region
Region |
Q3 2021 |
Q2 2021 |
Q1 2021 |
|||
$ million |
share |
$ million |
$ million |
share |
$ million |
|
Russia |
1,697 |
37% |
1,769 |
43% |
1,306 |
46% |
European Union |
834 |
18% |
723 |
17% |
501 |
17% |
Middle East, including Turkey |
398 |
9% |
407 |
10% |
343 |
12% |
North America |
1,133 |
25% |
781 |
19% |
430 |
15% |
Central and South America |
218 |
5% |
255 |
6% |
140 |
5% |
CIS |
125 |
3% |
84 |
2% |
74 |
3% |
Asia and Oceania |
105 |
2% |
98 |
2% |
33 |
1% |
Rest of World |
50 |
1% |
22 |
1% |
40 |
1% |
TOTAL |
4,560 |
100% |
4,139 |
100% |
2,867 |
100% |
(11) EBITDA*
$ million |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Operating income** |
2,132 |
1,899 |
1,016 |
758 |
437 |
minus: |
|
|
|
|
|
Depreciation and amortization |
(155) |
(153) |
(150) |
(132) |
(142) |
EBITDA |
2,287 |
2,052 |
1,166 |
890 |
579 |
* EBITDA used in NLMK's financial releases is calculated as operating profit before equity share in net losses of associates and other companies accounted for using the equity method of accounting, impairment and write-off of assets, adjusted to depreciation and amortization. EBITDA is not an indicator of operating profit, operating activity or liquidity under IFRS, and NLMK discloses it because equivalent indicators could be used by investors and analysts. That said, NLMK's EBITDA should not be viewed on a standalone basis, or in place of profit before tax, or cash flows from operations, as defined by IFRS, or as an indicator of operational efficiency, or as the sum of free cash funds that NLMK can invest into business development. NLMK's EBITDA margin and EBITDA might not be comparable to similar indicators disclosed by other companies as there are no commonly accepted rules for calculating them. For instance, NLMK's EBITDA is calculated similar to what is termed as 'Adjusted EBITDA' in other companies, as NLMK's EBITDA excludes other profit/loss items in addition to interest payments, income tax, depreciation and amortization.
** Operating profit before equity share in net losses of associates and other companies accounted for using the equity method of accounting, impairment and write-off of assets
(12) Free cash flow
$ million |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Net cash provided operating activities |
1,388 |
1,247 |
691 |
524 |
591 |
Interest paid |
(4) |
(25) |
(8) |
(25) |
(9) |
Interest received |
2 |
1 |
1 |
3 |
1 |
Advance VAT payments on imported equipment |
- |
- |
- |
- |
- |
Capex |
(272) |
(359) |
(232) |
(273) |
(344) |
Free Cash Flow |
1,114 |
864 |
452 |
229 |
239 |
(13) Net debt
$ million |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Short-term borrowings |
1,423 |
831 |
857 |
1,054 |
856 |
Long-term borrowings |
1,985 |
2,002 |
2,069 |
2,432 |
2,346 |
Cash and cash equivalents |
(542) |
(748) |
(489) |
(842) |
(755) |
Short-term deposits |
(127) |
(122) |
(350) |
(149) |
(501) |
Net debt |
2,739 |
1,963 |
2,087 |
2,495 |
1,946 |
(14) Production of main products
k t |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Crude steel, incl.: |
3,867 |
4,523 |
4,307 |
3,863 |
3,824 |
Steel Segment |
2,877 |
3,557 |
3,331 |
2,970 |
2,864 |
Long products Segment, incl.: |
811 |
777 |
789 |
708 |
786 |
NLMK Kaluga |
307 |
310 |
333 |
349 |
361 |
Foreign Rolled Products Segment |
179 |
189 |
187 |
185 |
173 |
Finished products, incl.: |
2,886 |
2,756 |
2,764 |
2,594 |
2,614 |
Flat steel |
2,211 |
2,104 |
2,096 |
2,024 |
1,957 |
Long steel |
675 |
652 |
669 |
570 |
657 |
Coke (6% moisture), incl.: |
1,405 |
1,498 |
1,463 |
1,486 |
1,506 |
NLMK Lipetsk |
643 |
644 |
638 |
647 |
647 |
Altai-Koks |
762 |
853 |
825 |
839 |
858 |
(15) Slab sales, including intra-group sales to NLMK Group companies
k t |
Q3 2021 |
Q2 2021 |
Q1 2021 |
Q4 2020 |
Q3 2020 |
Sales to 3rd parties, incl.: |
830 |
886 |
603 |
502 |
907 |
Export |
667 |
667 |
406 |
380 |
797 |
Sales to subsidiaries & associates |
534 |
1,130 |
911 |
728 |
410 |
Sales to NBH |
239 |
451 |
479 |
582 |
308 |
TOTAL |
1,364 |
2,016 |
1,514 |
1,230 |
1,318 |
(16) Export shipments of steel products from Group's Russian companies to third party consumers
k t |
Q3 2021 |
Q2 2021 |
QoQ |
Q3 2020 |
YoY |
9M 2021 |
9M 2020 |
YoY |
Semi-finished products |
1,002 |
939 |
7% |
1,271 |
-21% |
2,483 |
3,279 |
-24% |
Pig iron |
245 |
133 |
84% |
389 |
-37% |
409 |
1,048 |
-61% |
Slabs |
667 |
667 |
0% |
797 |
-16% |
1,740 |
2,000 |
-13% |
Billets |
90 |
139 |
-35% |
85 |
6% |
334 |
231 |
45% |
Flat products |
393 |
347 |
13% |
416 |
-5% |
1,225 |
1,445 |
-15% |
HRC |
218 |
162 |
35% |
160 |
36% |
632 |
660 |
-4% |
CRC |
78 |
74 |
6% |
148 |
-47% |
277 |
442 |
-37% |
HDG |
5 |
5 |
-11% |
8 |
-40% |
16 |
32 |
-51% |
Coated |
1 |
1 |
6% |
1 |
-16% |
3 |
2 |
22% |
Dynamo |
34 |
39 |
-13% |
47 |
-28% |
117 |
142 |
-18% |
Transformer |
57 |
66 |
-14% |
52 |
11% |
181 |
167 |
8% |
Long products |
103 |
112 |
-8% |
169 |
-39% |
335 |
415 |
-19% |
Total |
1,498 |
1,398 |
7% |
1,856 |
-19% |
4,044 |
5,139 |
-21% |
(17) Segmental information
Q3 2021 |
Russian Flat Steel |
Russian Long Products |
Mining |
NLMK USA |
NLMK DanSteel and Plate Distribution Network |
Investments in NBH |
Totals |
Intersegmental operations and balances |
NBH |
Consolidated |
$ million |
||||||||||
Revenue from external customers |
2,422 |
601 |
38 |
1,039 |
169 |
434 |
4,703 |
- |
(143) |
4,560 |
Intersegment revenue |
569 |
175 |
745 |
- |
- |
13 |
1,502 |
(1,489) |
(13) |
- |
Gross profit |
1,373 |
202 |
683 |
367 |
25 |
44 |
2,694 |
(94) |
(48) |
2,552 |
Operating income/(loss) |
1,050 |
147 |
656 |
347 |
10 |
1 |
2,211 |
(74) |
(5) |
2,132 |
Income / (loss) before minority interest |
833 |
121 |
517 |
272 |
2 |
(2) |
1,743 |
(107) |
(8) |
1,628 |
Segment assets including goodwill |
8,427 |
1,119 |
3,092 |
1,391 |
507 |
1,696 |
16,232 |
(2,883) |
(1,505) |
11,844 |
Balance figures presented as of 30.09.2021
Q2 2021 |
Russian Flat Steel |
Russian Long Products |
Mining |
NLMK USA |
NLMK DanSteel and Plate Distribution Network |
Investments in NBH |
Totals |
Intersegmental operations and balances |
NBH |
Consolidated |
$ million |
||||||||||
Revenue from external customers |
2,275 |
589 |
48 |
699 |
157 |
344 |
4,112 |
- |
27 |
4,139 |
Intersegment revenue |
914 |
214 |
637 |
- |
- |
11 |
1,776 |
(1,765) |
(11) |
- |
Gross profit |
1,581 |
190 |
583 |
219 |
5 |
22 |
2,600 |
(243) |
(107) |
2,250 |
Operating income/(loss) |
1,292 |
147 |
556 |
203 |
(16) |
(21) |
2,161 |
(198) |
(64) |
1,899 |
Income / (loss) before minority interest |
997 |
121 |
410 |
181 |
(6) |
(24) |
1,679 |
(155) |
(160) |
1,364 |
Segment assets including goodwill |
8,704 |
1,100 |
2,990 |
1,287 |
508 |
1,637 |
16,226 |
(3,473) |
(1,439) |
11,314 |
Balance figures presented as of 30.06.2021
|
|
|
||||||
Novolipetsk Steel Interim condensed consolidated statement of financial position (unaudited) (millions of US dollars) |
|
|
||||||
|
|
Note |
|
As at 30 September 2021 |
|
As at 31 December 2020 |
||
|
Assets |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Current assets |
|
|
|
|
|
||
|
Cash and cash equivalents |
3 |
|
542 |
|
842 |
||
|
Short-term financial investments |
4 |
|
237 |
|
191 |
||
|
Trade and other accounts receivable |
5 |
|
1,947 |
|
1,148 |
||
|
Inventories |
6 |
|
2,166 |
|
1,373 |
||
|
Other current assets |
|
|
22 |
|
16 |
||
|
|
|
|
4,914 |
|
3,570 |
||
|
Non-current assets |
|
|
|
|
|
||
|
Long-term financial investments |
4 |
|
168 |
|
7 |
||
|
Investments in joint ventures |
4 |
|
10 |
|
131 |
||
|
Property, plant and equipment |
7 |
|
6,104 |
|
5,659 |
||
|
Goodwill |
8 |
|
215 |
|
212 |
||
|
Other intangible assets |
8 |
|
134 |
|
159 |
||
|
Deferred income tax assets |
|
|
290 |
|
119 |
||
|
Other non-current assets |
|
|
9 |
|
5 |
||
|
|
|
|
6,930 |
|
6,292 |
||
|
Total assets |
|
|
11,844 |
|
9,862 |
||
|
|
|
|
|
|
|
||
|
Liabilities and equity |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Current liabilities |
|
|
|
|
|
||
|
Trade and other accounts payable |
9 |
|
1,492 |
|
1,065 |
||
|
Dividends payable |
|
|
11 |
|
109 |
||
|
Short-term borrowings |
10 |
|
1,423 |
|
1,054 |
||
|
Current income tax liability |
|
|
159 |
|
51 |
||
|
Other short-term liabilities |
|
|
- |
|
3 |
||
|
|
|
|
3,085 |
|
2,282 |
||
|
Non-current liabilities |
|
|
|
|
|
||
|
Long-term borrowings |
10 |
|
1,985 |
|
2,432 |
||
|
Deferred income tax liability |
|
|
380 |
|
359 |
||
|
Other long-term liabilities |
|
|
42 |
|
48 |
||
|
|
|
|
2,407 |
|
2,839 |
||
|
Total liabilities |
|
|
5,492 |
|
5,121 |
||
|
|
|
|
|
|
|
||
|
Equity attributable to Novolipetsk Steel shareholders |
|
|
|
|
|
||
|
Common stock |
|
|
221 |
|
221 |
||
|
Additional paid-in capital |
|
|
8 |
|
8 |
||
|
Accumulated other comprehensive loss |
|
|
(6,976) |
|
(7,140) |
||
|
Retained earnings |
|
|
13,074 |
|
11,641 |
||
|
|
|
|
6,327 |
|
4,730 |
||
|
Non-controlling interests |
|
|
25 |
|
11 |
||
|
Total equity |
|
|
6,352 |
|
4,741 |
||
|
Total liabilities and equity |
|
|
11,844 |
|
9,862 |
||
|
|
|
||||||||||
Novolipetsk Steel Interim condensed consolidated statement of profit or loss (unaudited) (millions of US dollars, unless otherwise stated) |
|
|
||||||||||
|
|
Note |
|
For the nine months ended |
|
For the nine months ended |
|
For the three months ended |
|
For the three months ended |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Revenue |
12, 15 |
|
11,566 |
|
6,860 |
|
4,560 |
|
2,229 |
||
|
Cost of sales |
|
|
(5,443) |
|
(4,595) |
|
(2,008) |
|
(1,477) |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Gross profit |
|
|
6,123 |
|
2,265 |
|
2,552 |
|
752 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
General and administrative expenses |
|
|
(323) |
|
(252) |
|
(110) |
|
(84) |
||
|
Selling expenses |
|
|
(633) |
|
(647) |
|
(231) |
|
(208) |
||
|
Net impairment gains/(losses) on financial assets |
|
|
3 |
|
(8) |
|
4 |
|
(3) |
||
|
Other operating (expenses)/income, net |
|
|
(3) |
|
3 |
|
(5) |
|
(6) |
||
|
Taxes, other than income tax, and contributions |
18 |
|
(120) |
|
(48) |
|
(78) |
|
(14) |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Operating profit before share of results of joint ventures and impairment of investments in joint ventures, impairment of non-current assets and loss on disposals of property, plant and equipment |
|
|
5,047 |
|
1,313 |
|
2,132 |
|
437 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Loss on disposals of property, plant and equipment |
|
|
(7) |
|
(4) |
|
(3) |
|
(2) |
||
|
Impairment of non-current assets |
8 |
|
(35) |
|
(3) |
|
(32) |
|
(2) |
||
|
Share of results of joint ventures and impairment of investments in joint ventures |
|
|
(136) |
|
(186) |
|
(4) |
|
(10) |
||
|
Finance income |
|
|
5 |
|
7 |
|
2 |
|
2 |
||
|
Finance costs |
|
|
(96) |
|
(70) |
|
(18) |
|
(29) |
||
|
Foreign currency exchange (loss)/gain, net |
13, 16 |
|
(68) |
|
(29) |
|
(21) |
|
38 |
||
|
Hedging result |
16 |
|
(4) |
|
(11) |
|
(1) |
|
(7) |
||
|
Expenses on operations with financial instruments |
|
|
- |
|
(31) |
|
- |
|
- |
||
|
Other expenses, net |
|
|
(29) |
|
(53) |
|
(10) |
|
(13) |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Profit before income tax |
|
|
4,677 |
|
933 |
|
2,045 |
|
414 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Income tax expense |
14 |
|
(907) |
|
(255) |
|
(417) |
|
(102) |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Profit for the period |
|
|
3,770 |
|
678 |
|
1,628 |
|
312 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Profit attributable to: |
|
|
|
|
|
|
|
|
|
||
|
Novolipetsk Steel shareholders |
|
|
3,756 |
|
678 |
|
1,622 |
|
312 |
||
|
Non-controlling interests |
|
|
14 |
|
- |
|
6 |
|
- |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Earnings per share - basic and diluted: |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Earnings per share attributable to |
11 |
|
0.6267 |
|
0.1131 |
|
0.2706 |
|
0.0521 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
||||||
Novolipetsk Steel Interim condensed consolidated statement of cash flows (unaudited) (millions of US dollars) |
|
||||||
|
|
Note |
|
For the nine months ended |
|
For the nine months ended |
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Profit for the period |
|
|
3,770 |
|
678 |
|
|
Adjustments to reconcile profit for the period to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortisation |
|
|
458 |
|
442 |
|
|
Loss on disposals of property, plant and equipment |
|
|
7 |
|
4 |
|
|
Finance income |
|
|
(5) |
|
(7) |
|
|
Finance costs |
|
|
96 |
|
70 |
|
|
Share of results of joint ventures and impairment of investments in joint ventures |
|
|
136 |
|
186 |
|
|
Income tax expense |
14 |
|
907 |
|
255 |
|
|
Impairment of non-current assets |
|
|
35 |
|
3 |
|
|
Foreign currency exchange loss, net |
13, 16 |
|
68 |
|
29 |
|
|
Hedging result |
16 |
|
4 |
|
11 |
|
|
Expenses on operations with financial instruments |
|
|
- |
|
31 |
|
|
Change in impairment allowance for inventories and credit loss allowance for accounts receivable |
|
|
(6) |
|
3 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
(Increase)/decrease in trade and other accounts receivable |
|
|
(817) |
|
28 |
|
|
(Increase)/decrease in inventories |
|
|
(772) |
|
198 |
|
|
Increase in other operating assets |
|
|
(10) |
|
(4) |
|
|
Increase in trade and other accounts payable |
|
|
429 |
|
18 |
|
|
Сash provided by operating activities |
|
|
4,300 |
|
1,945 |
|
|
Income tax paid |
|
|
(974) |
|
(188) |
|
|
Net cash provided by operating activities |
|
|
3,326 |
|
1,757 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Purchases and construction of property, plant and equipment and |
|
|
(863) |
|
(851) |
|
|
Proceeds from sale of property, plant and equipment |
|
|
2 |
|
5 |
|
|
Loans given |
|
|
(276) |
|
(51) |
|
|
Proceeds from repayment of loans given |
|
|
41 |
|
85 |
|
|
Placement of bank deposits |
|
|
(297) |
|
(686) |
|
|
Withdrawal of bank deposits |
|
|
318 |
|
347 |
|
|
Interest received |
|
|
4 |
|
7 |
|
|
Contribution to share capital of joint venture |
4 |
|
(18) |
|
(131) |
|
|
Net cash used in investing activities |
|
|
(1,089) |
|
(1,275) |
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
1,732 |
|
1,599 |
|
|
Repayment of borrowings |
|
|
(1,721) |
|
(1,118) |
|
|
Payments on leases |
|
|
(15) |
|
(15) |
|
|
Interest paid |
|
|
(37) |
|
(39) |
|
|
Payments from settlement of derivative financial instruments |
|
|
- |
|
(8) |
|
|
Commissions paid |
|
|
(43) |
|
- |
|
|
Dividends paid to Novolipetsk Steel shareholders |
|
|
(2,438) |
|
(845) |
|
|
Dividends paid to non-controlling interests |
|
|
- |
|
(4) |
|
|
Net cash used in financing activities |
|
|
(2,522) |
|
(430) |
|
|
Net (decrease)/increase in cash and cash equivalents |
|
|
(285) |
|
52 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(15) |
|
(10) |
|
|
Cash and cash equivalents at the beginning of the year |
3 |
|
842 |
|
713 |
|
|
Cash and cash equivalents at the end of the period |
3 |
|
542 |
|
755 |
|
|
|
|
|
|
|
|
|
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