NLMK Group enters a new phase of growth with the launch of Strategy 2017

NLMK Group, the largest steel producer in Russia and a leading international steel company, announces the launch of its Strategy 2017, symbolizing a new stage of development. Strategy 2017 envisages generating net income of US $ 1.0 billion per year and investments of US $ 1.6 billion.

The 2017 strategy is focused on unlocking the internal potential of the Group's enterprises, increasing the production efficiency process along the entire chain, producing better rolled metal while increasing sales of value-added products and ensuring sustainability. In implementing its 2017 strategy, the Group will maintain its commitment to a conservative financial policy aimed at further reducing debt and financing investments through domestic cash flows.

In addition, NLMK will pursue a consistent dividend policy, which provides for a payout ratio of at least 20 percent of US GAAP net income and an average payout of 30 percent over 5 years. Oleg Bagrin, CEO of NLMK Group, said that “Over the past 10 years, we have invested US $ 11 billion, doubling the size of our business. We now intend to leverage the potential of this platform to drive further growth and high added value. ”

The company plans to strengthen its positions in key markets through the use of newly built and modernized facilities. Bagrin added that "the Group's new strategy places particular emphasis on industrial safety, which is a key priority for the company, and the development of human capital, which is critical to long-term leadership."