Severstal’s shares are listed in Russia (MICEX/RTS ticker: CHMF)
and its GDRs are traded on the London Stock Exchange
(LSE ticker: SVST). The current number of outstanding shares
is 837 718 660. In 2012, turnover in our shares
at the London Stock Exchange and MICEX/RTS totaled $4.9 billion
and $5.2 billion respectively. In 2012, the average daily trading
volumes in US$ were $19.6 million and $20.3 million (at the LSE and MICEX/RTS
Severstal is one of the world’s leading vertically integrated steel and steel related mining companies, with assets mainly on emerging markets. We produce steel and steel products and mine steel-related raw materials. Safety
and sustainability are central to our operations.
Severstal is structured into three divisions: Severstal Russian Steel,
Severstal Resources and Severstal International.
Our core steel markets are Russia and the US. The Russian Steel division
exports approximately 40% of its volumes throughout the world.
Severstal’s strategy is to be a global industry leader in value creation by focusing on its core strengths in steel production and steel related mining. We have a balanced growth strategy focused on applying our vertically integrated
model to attractive end markets and geographies. Our strategy is supported by a
well-thought capital expenditures program and the Business System of Severstal,
a company-wide set of projects to improve all aspects of the business from health and safety, sustainability to operational efficiency.
- Full vertical integration – Our mining operations provide global
self-sufficiency in iron ore of 101% and coking coal of 113%.
- Low cost operations – The Russian Steel Division is amongst the lowest cost steel producers globally, with slab production cash costs below
$350/t in 2012.
- High share of high-value-added (HVA) products in the portfolio – HVA
products comprised 44% of the portfolio in FY2012, the highest in Russia. In the US it accounts for 45%, which is set to increase after all the downstream
facilities at Severstal Columbus are fully ramped-up.
- Focus on emerging markets – 69% of our steel operations are Russia-based.
- Balanced sales to the domestic and export markets – As one of the
lowest-cost producers in the world we are in a strong position to supply a range of export markets thus minimizing market risks and maximizing
- Technological flexibility – In Russia and the US we make steel both with blast furnaces (BOF method) and electric-arc furnaces (EAF). In Russia 82%
of our capacities use BOF, while in the US the majority (approximately 60%)
comes from scrap-based EAFs. Our use of both technologies gives us flexibility
to operate efficiently depending on the market conditions.
- EBITDA margin – One of the highest in the global steel industry, in FY2012 it was 15% (FY2011: 23%).
- Strong financial position – Low debt leverage with net debt/EBITDA
ratio at 1.9x at EOY2012 (1.1 at EOY2011).
- Liquidity – Strong cash position of $1.7 billion as of EOY2012.
- Consistent dividend policy – Quarterly payments; not less than 25%
payout ratio of the net profit. You can view the history of dividend payments
and the company’s dividend policy in this section:
Severstal adheres to international best practice standards of corporate
governance. Severstal has a highly experienced and balanced Board of Directors.
The proportion of Independent Directors on the Board (five out of ten)
guarantees equal regard for the interests of all shareholders. The Board
considers all of its Independent Directors to be independent, in line with the
UK Corporate Governance Code, 2010.
To find out more on our Corporate governance, click:
We strive to be leaders in value creation. In 2001, Severstal became the first Russian production company to certify its compliance with the ISO 14001
international environmental standard. In 2007, Severstal was the first steel
& mining company in the CIS to start reporting its greenhouse gas emissions
to the World Steel Association (WSA).
In 2012, we spent $304 million on health and safety measures.
In 2012, we improved our safety record with an 8.4% decrease in our lost
time injury frequency rate (LTIFR), compared to 2011. At Severstal Russian
Steel, fifteen operations completed the year with zero injuries.
Of last years we managed to decrease resources consumption in steel
production significantly. In 2000−2012 we cut electricity consumption per tonne
of steel by 45%, while gas consumption was decreased in 2000−2012 by 20%.
To find out more, click:
OOO “Deutsche Bank Trust and Securities Services”
Address: 82 Sadovnicheskaya Street, Building 2, Moscow, Russia, 115035
Tel. +7 (495) 642−06−16
Fax +7 (495) 797−50−99
Address: 22, Pobedy Avenue, Cherepovets, Vologda Region, Russia, 162606
Tel: +7 (8202) 53−60−21
Fax: +7 (8202) 55−33−35
Should you like to contact Severstal’s investor relations, please call at:
+7 (495) 926−77−66 or mail at: