Nlmk · RUS:NLMK
Nlmk — Investor Presentation (July 2014)
20 slides from Nlmk's investor presentation, Jul 25, 2014
Slide 1: NLMK Kaluga
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Slide 2: Disclaimer
DISCLAIMER This document is confidential and has been prepared by NLMK (the “Company”) solely for use at the presentation of the Company and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. This document does no
Slide 3: Contents
CONTENTS 1. NLMK Kaluga overview 2. Competitive advantages 3. Market update and recent results 4. Strategic priorities
Slide 4: NLMK Russia Assets Location
NLMK RUSSIA ASSETS LOCATION • NLMK Kaluga - new 1.5 m t mini-mill located in Central region of Russia, 70 km from Moscow • NLMK Long Product segment steel capacity to 3.7 m tpa • Strengthening NLMK positions on the domestic long product market NLMK Kaluga Crude steel: 1.5 m t Long steel: 0.9 m t NLM
Slide 5: NLMK Kaluga Project Overview
NLMK KALUGA PROJECT OVERVIEW • Location: Kaluga region, Borovsky district, Vorsino CRUDE STEEL AND ROLLED STEEL PRODUCTION CAPACITIES AT NLMK KALUGA Industrial Park m tpa 1,5 1,5 1,5 • Production site area: 202 ha • Capacity: 1.5 m tpa of steel, 0,9 from 0.9 to 1.5 m tpa* of long steel • Equipment s
Slide 6: Contents
CONTENTS 1. NLMK Kaluga introduction 2. Competitive advantages 3. Market update and recent results 4. Strategic priorities 6
Slide 7: NLMK Kaluga Competitive Advantages
NLMK KALUGA COMPETITIVE ADVANTAGES o A developed construction sector Favorable location o High level of long steel consumption o Shortage of long steel in the region o Surplus of scrap collection in the region o Low transportation costs High efficiency o Developed scrap collection network o Energy-
Slide 8: Favorable Location
FAVORABLE LOCATION • NLMK Kaluga perfectly suits to Central region imbalances Central • Long products demand/supply imbalance region* o ~3.7 m tpa shortage of long products in the Central region Moscow Yekaterinburg • Scrap demand/supply imbalance NLMK Kaluga UZPS o Scrap surplus in the Central Fede
Slide 9: Favorable Location (2)
FAVORABLE LOCATION (2) • The Central region of Russia has the highest AMOUNT OF CONSTRUCTION ACTIVITIES IN 5M’14 density of population Moscow and the Moscow region o 59.7 people/km2, 7 times higher than the Russian 19% average Central Region w/o Moscow and the Moscow • The most developed constructio
Slide 10: Cost Advantage
COST ADVANTAGE • Low transportation costs for the delivery of raw NLMK KALUGA VS. RUSSIAN PEERS materials and finished steel 104% o Developed captive scrap collection network 100% 100% 100% “Vtorchermet NLMK” in the region o In 2013, a new shredder was launched in 90% Podolsk (Moscow region) o Locat
Slide 11: Products of High Demand
PRODUCTS OF HIGH DEMAND • NLMK Kaluga produces finished products at Rebar Sections universal high performance continuous А500S bars in rolling mill А240 bars compliance with Angles Channels GOST 52544 o Ability to roll rebar at high speed and #10 #10 L25 SH5 produce small and medium sections at a #1
Slide 12: Contents
CONTENTS 1. NLMK Kaluga introduction 2. Competitive advantages 3. Market update and recent results 4. Strategic priorities 12
Slide 13: Long Products Market
LONG PRODUCTS MARKET • Growth of long products consumption REBAR MARKET, CONSUMPTION IN RUSSIA o 2013 long steel consumption grew by 3% yoy 2,5 mt 30% o Driver – increased construction activity 2,0 record 2008 level 25% o 2013 residential completions up by 5.5% yoy to the record of 69.4 sq. m o Ceme
Slide 14: Recent Results Update
RECENT RESULTS UPDATE • In 2013 Long product segment steel output and sales CRUDE STEEL AND FINISHED PRODUCT OUTPUT increased by 23.7% and 23.1% (y-o-y) respectively mt 0,6 mt o NLMK Kaluga was a major contributor to the growth: 0,49 2,5 2,23 0,48 0,46 crude steel output in 2013 totaled 0.359 m t an
Slide 15: Contents
CONTENTS 1. NLMK Kaluga introduction 2. Competitive advantages 3. Recent results and market update 4. Strategic priorities 15
Slide 16: Strategic Priorities
STRATEGIC PRIORITIES • Strategic priorities NLMK RUSSIA LONG MARKET SHARE IN 2015 o Develop scrap-collecting facilities to maximize cost- 33% efficient sufficiency in scrap 22-23% o Expand market presence o A flexible sales strategy and improved customer 12% service o Expand the range of long produc
Slide 17: Corporate Responsibility
CORPORATE RESPONSIBILITY • Air protection o Modern dust and gas cleaning systems with efficiency of at least 99% o Emissions less than 1kg per tonne of steel (almost 7 times lower than for its Russian peers) • Water protection o Closed water supply system o Low level of natural water consumption due
Slide 18: Thank You!
THANK YOU!
Slide 19: Appendix
APPENDIX
Slide 20: NLMK Russia Long Division
NLMK RUSSIA LONG DIVISION NLMK RUSSIA LONG OPERATING CAPACITIES • Captive scrap processing 3.5 m tpa NLMK KALUGA • EAF steelmaking • EAF steelmaking capacities 2.2 m tpa 1.5 m tpa • Long products (Nizhniye Sergi) • Long product capacities 1.1 m tpa 0.9 – 1.5 m tpa • Long products (Berezovsky) 0.8 m