Slide 1: ESG Driven Development
ESG DRIVEN DEVELOPMENT December 2020 Magnitogorsk, Russia
Slide 2: Disclaimer
Strategic priorities Environmental responsibility Social responsibility Corporate governance DISCLAIMER These materials are provided for information purposes only. This presentation includes the statements related to the future, which Notes reproduce the intentions, opinions and current expectations
Slide 3: Our Contribution to the UN's Sustainable Development Goals
Strategic priorities Environmental responsibility Social responsibility Corporate governance STRATEGIC PRIORITIES OUR CONTRIBUTION TO THE UN’S SUSTAINABLE DEVELOPMENT GOALS MMK is focused on 7 out of 17 SDGs Priority SDGs GOAL 8: GOAL 9: GOAL 12: GOAL 13: DECENT WORK INDUSTRY, RESPONSIBLE CLIMATE AN
Slide 4: Sustainable Development as MMK's Priority
Strategic priorities Environmental responsibility Social responsibility Corporate governance STRATEGIC PRIORITIES SUSTAINABLE DEVELOPMENT AS MMK’S PRIORITY Top-10 MMK received an award from the UN’s Winner of the CEM Insight in the Environmental Industrial Development Organisation Award for Energy M
Slide 5: Emission Reduction
Strategic priorities Environmental responsibility Social responsibility Corporate governance ENVIRONMENTAL RESPONSIBILITY EMISSION REDUCTION 17.8 17.6 17.4 18.0 17.3 The Russian Ministry of Natural Total air 14.1 Resources and Environment −2.4% emissions removed Magnitogorsk from the list 201.8 199.
Slide 6: Minimisation of Emissions from Production
Strategic priorities Environmental responsibility Social responsibility Corporate governance ENVIRONMENTAL RESPONSIBILITY MMINIMISATION OF EMISSIONS FROM PRODUCTION 2.5 Global average 2.2 Decreasing specific 2.0 1.83 (1) emission rates СО² 1.8 (Scope 1), t/t of steel 2016 2019 2020 target 2025 targe
Slide 7: Projects to Reduce CO2 Emissions under MMK's Long-Term Investment Programme
Strategic priorities Environmental responsibility Social responsibility Corporate governance ENVIRONMENTAL RESPONSIBILITY PROJECTS TO REDUCE CO2 EMISSIONS UNDER MMK’S LONG-TERM INVESTMENT PROGRAMME Project IRR Timeframe 2019–2020 2021–2025 2019–2023 Construction of Coke-Oven Battery No. 12 24% 2020–
Slide 8: Minimisation of Emissions from Production
Strategic priorities Environmental responsibility Social responsibility Corporate governance ENVIRONMENTAL RESPONSIBILITY MINIMISATION OF EMISSIONS FROM PRODUCTION BAT (1) 0.83 0.62 0.61 0.53 1.0 Reduction kg/t of steel in nitrogen oxide emissions 1.02 BAT Reduction 0.60 0.31 0.29 0.9 kg/t of steel
Slide 9: Industrial Safety
Strategic priorities Environmental responsibility Social responsibility Corporate governance SOCIAL RESPONSIBILITY INDUSTRIAL SAFETY 1.16 -50% the industry average 0.94 (2) 0.89 0.69 Steady 0.45 reduction in 0.40 LTIFR (1) 44.16 -30% 31.24 26.88 And 22.08 decreasing 20.00 LTISR (3) 2016 2019 October
Slide 10: MMK Is Committed to Ensuring High Standards of Industrial Safety
Strategic priorities Environmental responsibility Social responsibility Corporate governance SOCIAL RESPONSIBILITY MMK IS COMMITTED TO ENSURING HIGH STANDARDS OF INDUSTRIAL SAFETY Consistent steps to reduce injury rates to zero 1 2 Automation Identification of safety systems and mitigation of at ope
Slide 11: Corporate Culture of Opportunities
Strategic priorities Environmental responsibility Social responsibility Corporate governance SOCIAL RESPONSIBILITY CORPORATE CULTURE OF OPPORTUNITIES 2025 goals Create a culture of engagement, innovation and efficiency Creating a culture Time to launch of engagement a new product + 18 Engagement % -
Slide 12: Professional Development
Strategic priorities Environmental responsibility Social responsibility Corporate governance SOCIAL RESPONSIBILITY PROFESSIONAL DEVELOPMENT 370 89.7 95 Training and education % % We encourage employees to undertake additional qualifications programmes available of our employees of our managers at th
Slide 13: Social Strategy
Strategic priorities Environmental responsibility Social responsibility Corporate governance SOCIAL RESPONSIBILITY SOCIAL STRATEGY 1.09 MMK’s spending on philanthropy and the development of our operating region in 2019 RUB billion Cultural events Maintaining sports RUB mln and maintaining facilities
Slide 14: Protecting the Rights and Interests of All Shareholders
Strategic priorities Environmental responsibility Social responsibility Corporate governance CORPORATE GOVERNANCE PROTECTING THE RIGHTS AND INTERESTS OF ALL SHAREHOLDERS Corporate governance Equal treatment Building trusted Transparency Company Minimization of all shareholders relationships and time
Slide 15: The Board's Priorities for 2020
Strategic priorities Environmental responsibility Social responsibility Corporate governance CORPORATE GOVERNANCE THE BOARD’S PRIORITIES FOR 2020 Operational OHS Effective risk Environment High corporate efficiency and employee management governance and leadership development standards at priority m
Slide 16: Contacts
CONTACTS Russia, Magnitogorsk Yaroslava Vrubel Veronika Kryachko Ilya Nechaev 93, Kirova street ESG manager Head of Investor Relations Investor Relations manager +7 (982) 282-96-82 +7 (915) 380-62-66 +7 (909) 093-08-98 vrubel.ys@mmk.ru kryachko.vs@mmk.ru nechaev.ia@mmk.ru