METALLOINVEST ANNOUNCES FINANCIAL RESULTS FOR THE FULL YEAR 2015

Moscow, Russia - 16 March 2016 - Metalloinvest ('the Company'), a leading global iron ore and HBI producer, and a regional high quality steel producer, today publishes its audited IFRS financial results for the full year ended 31 December 2015.

FINANCIAL HIGHLIGHTS

- Revenue USD 4,393 mn (-31.0% y-o-y )

- EBITDA USD 1,432 mn (-27.0%)

- EBITDA margin 32.6% vs. 30.8% in 2014

- Net Income USD 218 mn vs. USD 66 mn in 2014

- Net Debt USD 3,563 mn (-14.9% compared to 31 December 2014)

- Net Debt / EBITDA 2.49x vs. 2.13x as of 31 December 2014

- Capital Expenditure USD 417 mn (-29.9%)

- Total Assets USD 6,619 mn (-8.9% compared to 31 December 2014)

PRODUCTION HIGHLIGHTS

- Iron ore 39.5 mn tonnes (+1.9%)

- Pellets 23.8 mn tonnes (+5.0%)

- HBI/DRI 5.4 mn tonnes (+3.1%)

- Hot metal 2.5 mn tonnes (+7.6%)

- Crude steel 4.5 mn tonnes (-0.1%)

KEY CORPORATE HIGHLIGHTS

Operating activities and capital expenditures

- Signing of a new long-term iron ore products supply contract with ArcelorMittal

- Increase in shipments to major domestic customers, including MMK, NLMK, Severstal and Evraz

- Completion of a construction and the launch of Pellet Plant #3 at MGOK

- Active phase of construction of HBI-3 at LGOK

Financing

- Net Debt reduction of USD 622 mn

- Exercise of put option for series 01, 05 and 06 bonds in RUB 25 bn issue

- ECA facility agreement for up to EUR 267 mn to finance HBI-3 construction at LGOK

- Pre-export finance facility (PXF) agreement with a club of international banks for USD 750 mn

- Issue of BO-01 series bonds for a total amount of RUB 10 bn

- Confirmation of long-term credit ratings at BB/Ba2 levels by Standard & Poor's, Fitch and Moody's

- Assignment of a long-term issuer credit rating of BBB+ by Dagong

Corporate governance and information disclosure

- Reelection of the Board of Directors and the Board Committees

- Presentation of Metalloinvest's renewed strategy (Strategy 2023)

- Completion of Udokan spin-off

Social responsibility

- Execution of social partnership programmes with the administrations of the Kursk, Belgorod and Orenburg regions and Zheleznogorsk, Stary Oskol, Gubkin and Novotroitsk
 

Pavel Mitrofanov, Deputy CEO - Chief Financial Officer of Management Company Metalloinvest, commented:

'Substantial declines in iron ore and steel prices had a negative impact on Metalloinvest's revenue and EBITDA. However, our vertically integrated business model with a focus on high value-added products and strict cost control allowed us to keep our EBITDA margin above 30%.

In 2015, we worked to optimise our debt structure and sustain our liquidity position. We successfully raised funds in the local and international markets and extended our maturities. This year, we are continuing to further improve our debt portfolio. To this end, we have signed a new PXF facility agreement and issued rouble bonds in 1Q 2016.

We are progressing with our capacity development programme. Following the launch of Pellet Plant #3 at Mikhailovsky GOK last year, we plan to complete HBI-3 construction at Lebedinsky GOK in the end of 2016 - early 2017. These projects will enable us to support top-line growth going forward.'

 

Full version of press-release is available at:

http://www.metalloinvest.com/upload/iblock/942/metalloinvest_ifrs_2015_release_eng.pdf

FY 2015 IFRS Financial Statements are available at:

http://www.metalloinvest.com/upload/iblock/5d9/metalloinvest_2015_fs_usd.pdf


 

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For more information, please contact the Investor Relations Department:

Artem Lavrischev
Head of Investor Relations
E: ir@metalloinvest.com

T: +7 (495) 981-55-55


 

_{Metalloinvest is a leading global iron ore and HBI producer and supplier, and one of the regional high quality steel producers. The Company has the world's second largest measured iron ore reserve base under its operation with the key-note iron ore production cost efficiency.}

_{Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (48%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).}