Slide 1: Q4 2021 Financial and Operational Results
Q4 2021 Financial and Operational Results 18.02.2022
Slide 2: Health and Safety remains a key priority
Health and Safety remains a key priority LTIFR dynamics Staff Staff+contractors 0.93 0.96 0.95 0.74 0.69 0.88 0.63 0.70 0.63 0.65 0.57 0.50 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 We remain committed to eliminating all work-related fatalities and reduce LTIFR by 50% (compared with 2017)
Slide 3: Market prices continued to normalize in 4Q but still at high levels
Market prices continued to normalize in 4Q but still at high levels Ex-China elevated demand and production restrictions in Ex-China steel demand rebounded in 2021 China supported HRC prices at high levels %, yoy FOB Black Sea, $/t 1200 World China Ex-China Russia 1000 785 16.5 800 600 9.1 9.1 400 5
Slide 4: Market Outlook
Market Outlook • Steel price environment remains supportive: stabilization after downward trend of 2H 2021 and rebound in the beginning of 2022 on the back of seasonal demand growth. • Raw material prices showed mixed dynamics. General downside trend was reversed by supply shortages in the end of Q4
Slide 5: Q4 2021 Consolidated sales volumes
Q4 2021 Consolidated sales volumes 01 Crude steel output grew by 5% qoq to 3 mln tonnes, Crude steel production Steel sales due to end of casting machines upgrade Kt Kt 4,500 4,500 43% HVA share 46% 60% 4,000 4,000 40% +5% 3,098 02 Steel sales increased by 15% qoq to 3.1 mln tonnes 3,500 3,500 2,694
Slide 6: 12m 2021 Consolidated sales volumes
12m 2021 Consolidated sales volumes 01 Crude steel output grew by 3% yoy to 11.6 mln tonnes, Crude steel production Steel sales due to the EAF-1 start up in April 2021 and completion Kt Kt of BOF shop and casting machines upgrades 16,000 16,000 46% HVA share 46% 60% 14,000 14,000 40% 12,000 +3% 12,0
Slide 7: Q4 2021 Consolidated financial highlights
Q4 2021 Consolidated financial highlights Revenue EBITDA FCF EBITDA margin Net debt / EBITDA $ mln $ mln $ mln % x 3,267 1,446 1,114 44 0.23 + 2% qoq - 16% qoq + 12% qoq - 10 p.p. qoq - 21% qoq Revenue dynamic EBITDA dynamic $ mln $ mln 73.4% 37.0% 74.9% 34.5% 63.9% 28.1% 2,759 3,098 3,195 1,021 1,0
Slide 8: 12m 2021 Consolidated financial highlights
12m 2021 Consolidated financial highlights Revenue EBITDA FCF EBITDA margin Net debt / EBITDA $ mln $ mln $ mln % x 11,638 5,978 3,539 51 0.23 + 69% yoy + 147% yoy + 322% yoy + 16 p.p. yoy - 73% yoy Revenue dynamic EBITDA dynamic $ mln $ mln 71.1% 57.5% 52.5% 11,206 8,025 3,676 6,845 2,507 2,169 1,8
Slide 9: Sales by region
Sales by region Steel sales volumes by destination % Export 35% 30% 33% 36% 35% 41% 43% 42% 45% 51% 42% 52% Russia 65% 70% 67% 64% 65% 59% 57% 58% 55% 49% 58% 48% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Group revenue by region, Q4 2021 Group re
Slide 10: 2021 operational efficiencies
2021 operational efficiencies -280 -381 11 55 224 -$91 mln 3,927 6,069 5,978 2,422 2020 EBITDA Macrofactors Export duty 2020 EBITDA net of Sales volumes & Operational Vertical integration Other 2021 EBITDA non-managable product mix efficiency effects factors • Macro was a key factor behind EBITDA gr
Slide 11: Divisional cost structure
Divisional cost structure Cherepovets Steel Mill production cash cost of slab, $/t Vorkutaugol (coking coal concentrate) Cost per tonne ($/t) Average selling price ($/t) 185 131 130 67 505 409 102 75 457 53 65 335 323 334 302 321 322 325 342 331 355 346 306 372 Q3 2021 Q4 2021 FY 2020 FY 2021 271 25
Slide 12: We increased our CAPEX guidance for 2022 mainly due to new development projects
We increased our CAPEX guidance for 2022 mainly due to new development projects and reallocation from 2021 plans CAPEX bridge $ mln 20 89 27 115 -101 150 5% 9% Development 9% Maintenance 55% 1,600 Capital overburden 1,300 IT 22% Environment and Safety Previous Vorkuta disposal New projects Reallocat
Slide 13: Cash Flow and Net Working Capital
Cash Flow and Net Working Capital Q4 2021 EBITDA to FCF reconciliation $ mln 01 FCF increased by 12% qoq to $1,114 mln, driven by EBITDA 1,446 working capital release. For 12m 2021 FCF grew by 322% to 3,539 mln on strong profit cash CAPEX (322) 02 Cash CAPEX amounted to $322 mln (+13% qoq). Total in
Slide 14: Robust Liquidity and Sustainable Leverage
Robust Liquidity and Sustainable Leverage 01 Cash and cash equivalents increased to $418 mln Robust Liquidity and Sustainable Leverage (+49% qoq) on the back of strong operating cash flow $ mln 0.52 02 Total debt amounted to $1,816 mln (flat qoq) 0.37 0.23 0.29 03 Net debt/EBITDA ratio was 0.23 (Q3
Slide 15: Annex
a Severstal , ne oe Ns
Slide 16: Summary IFRS results
Summary IFRS results Summary Income Statement Summary Cash Flow Statement $ million, unless otherwise stated Q4 2021 Q3 2021 FY 2021 FY 2020 $ million Q4 2021 Q3 2021 FY 2021 FY 2020 Revenue 3,267 3,206 11,638 6,870 Profit before Financing and Taxation COGS (1,498) (1,282) (4,920) (3,952) 1,252 1,56
Slide 17: Summary consolidated operational results
Summary consolidated operational results Sales volumes, kt Q4 2021 Q3 2021 qoq 2021 2020 yoy Coal: 71 127 -44% 825 1,469 -44% Coking coal concentrate 46 39 18% 158 281 -44% Steam coal 25 88 -72% 667 1,188 -44% Iron ore: 901 1,092 -17% 4,327 6,024 -28% Iron ore pellets 901 1,061 -15% 4,249 5,837 -27%
Slide 18: Divisional results
Divisional results Severstal Resources Q4 2021 Q3 2021 Change, % FY 2021 FY 20201 Change, % Revenue ($m) 764 1,016 (25%) 3,526 1,825 93% Cost of sales ($m) (295) (270) 9% (1,083) (923) 17% G&A expenses ($m) (19) (19) - (75) (80) (6%) Distribution expenses ($m) (14) (14) - (59) (29) 103% EBITDA ($m)
Slide 19: Divisional operational highlights - Russian Steel Division
Divisional operational highlights - Russian Steel Division Sales by product, kt Q4 2021 Q3 2021 qoq FY 2021 FY 2020 yoy Total steel products 3,110 2,704 15% 11,147 10,545 6% Semi-finished products 346 489 (29%) 1,411 473 198% Hot-rolled steel: 1,407 1,115 26% 4,815 5,277 (9%) incl. Hot-rolled high v
Slide 20: Divisional operational highlights - Russian Steel Division average prices
Divisional operational highlights - Russian Steel Division average prices Sales price, $/tonne Q4 2021 Q3 2021 qoq FY 2021 FY 2020 yoy Semi-finished products 595 646 (8%) 607 389 56% Hot-rolled steel: 895 1,009 (11%) 844 454 86% incl. Hot-rolled high value added 1,049 1,035 1% 885 568 56% Cold-rolle
Slide 21: Divisional operational highlights - Resource Division
Divisional operational highlights - Resource Division Sales by product, kt Q4 2021 Q3 2021 qoq FY 2021 FY 2020 yoy Coal 1,331 810 64% 4,588 5,890 (22%) Coking coal concentrate 1,306 722 81% 3,921 4,702 (17%) Steam coal 25 88 (72%) 667 1,188 (44%) Iron ore 4,773 4,560 5% 18,134 18,010 1% Iron ore pel
Slide 22: Thank you for your attention
a Severstal for your attention , \_