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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 two segments: Severstal Russian Steel and Severstal Resources.
Our core steel market is Russia. 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.
Our investor relations communications strive to establish the environment of mutual trust. This section of the website provides quarterly financial and operational reports, information on key corporate transactions. To help our investors in regular monitoring of our performance we also publish an Annual Report and a Corporate Social Responsibility Report, hold Capital Markets Days, arrange site visits, and frequently meet investors at broker conferences and non-deal road shows
Consolidated interim condensed financial statements for the nine months ended September 30, 2014 and 2013
Capital Markets Day 2014
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 2013, our lost time injury frequency rate (LTIFR) was 1.45. Eleven of Severstal Russian Steel’s businesses had zero injuries throughout the year.
Over recent years we have 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%.
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Full vertical integration – Our mining operations provide self-sufficiency in iron ore of 97% and coking coal of 110%.
Low cost operations – The Russian Steel Division is amongst the lowest cost steel producers globally, with the integrated slab production cash costs below $300/t at the end of 2013.
High share of high-value-added (HVA) products in the portfolio – HVA products comprised 49% of the portfolio at the end of 2013, the highest in Russia.
Focus on emerging markets – almost all our steel and mining operations are based in Russia – with sizable export sales (around 40%).
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 profits.
Technological flexibility – In Russia and the US we make steel both with blast furnaces (BOF method) and electric-arc furnaces (EAF). In Russia, around 80% of our capacities use BOF at the moment. The share of EAF production will be growing as long as our new 1-million tonne Mini-Mill in Balakovo will be ramping up to full capacity. 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 Q4 2013 it was 18.1%.
Strong financial position – Low debt leverage with net debt/LTM EBITDA ratio at 1.8x at Q4 2013.
Liquidity – Strong cash position of $1.0 billion as of Q4 2013.
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.
GDR Depositary Contact
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: email@example.com