OF MMK GROUP
? In Q1 2021, CAPEX decreased by 38.0% q-o-q to USD 142 mln, following the project implementation
schedule, and grew 9.2% y-o-y.
? The increase in export sales and inventory stockpiling ahead of the construction season driven by
CAPEX AND higher steel prices resulted in a USD 360 mln working capital build-up in Q1 2021, with the net
CASH FLOW working capital to revenue ratio for Q1 2021 rising by 1.9 p.p. to 12.0%.
? FCF for Q1 2021 remained flat quarter-on-quarter at USD 125 mln, as a result of an increase in
working capital. FCF increased by 8.7% year-on-year.
? The Group's total debt for Q1 2021 was USD 955 mln, down from USD 970 mln in Q4 2020. The Group's
debt slightly grew year-on-year from USD 899 mln.
DEBT ? As of the end of Q1 2021, the Group held USD 810 mln in cash and deposits in its accounts.
BURDEN
? The Group's net debt as of the end of Q1 2021 totalled USD 145 mln, while its net debt/EBITDA ratio
was 0.08?, one of the lowest among leading global steelmakers.
Dividends ? The Group remains committed to its dividend policy and previous statements. Considering that CAPEX
for the year will exceed the normalised level, and given our high margins, the Board of Directors is
OF MMK GROUP convinced that the Group sits in a stable position and can recommend the shareholders to approve the
payment of a dividend of RUB 1.795 per share (212% of FCF for the quarter) for Q1 2021.
? The favourable conditions in global markets coupled with seasonal growth in demand in Russia will
positively impact the Group's sales in Q2 2021. In May 2021, the reverse Cold-Rolling Mill 1700 is
expected to be commissioned. Given our 100% utilisation rate of premium products facilities, we
expect to see a further improvement in the structure of the Group's sales portfolio.
? The start of the construction season in Russia along with positive dynamics of global steel prices on
OUTLOOK the back of the remaining deficit in international markets will support the growth of MMK Group's
steel product prices in Q2 2021.
? CAPEX for Q2 2021 is expected to grow q-o-q, in line with the implementation schedule for projects
pursued under the Group's strategy.
? Operational excellence initiatives under our updated strategy will further boost the Group's
profitability in Q2 2021.
MMK Management will hold a conference call to discuss these financial results
? Date:
CONFERENCE CALL 21 April 2021
? Time:
4:30 pm Moscow time
2:30 pm London time
9:30 am New York time
Russia UK USA
Local access +7 495 213 1767 +44 330 336 9125 +1 929 477 0402
Toll free 8 800 500 9283 0800 358 6377 888 204 4368
? Conference ID:
in Russian - 9577666
in English - 2042374
? Webcast:
To register for the webcast, please use this link.
The call recording will be available for seven days on the following numbers:
Call recording ID:
in Russian - 9577666
in English - 2042374
Russia UK USA
Local access 8 10 800 2702 1012 +44 207 660 0134 +1 719 457 0820
? A presentation of the financial results and the IFRS financial statements can be found at: http://
mmk.ru/for_investor/financial_statements/
ABOUT MMK
Please
MMK is one of the world's largest steel producers and a leading Russian metals company. The Group's subscribe to
operations in Russia include a large steel-producing unit encompassing the entire production chain, from our
the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel official MMK
products, with a predominant share of premium products. In 2020, MMK produced 11.6 mln tonnes of crude channel on
steel and sold 10.8 mln tonnes of commercial steel products. Telegram
to be the
??K is an industry leader in terms of production costs and margins. Group revenue in 2020 totalled USD first to
6,395 mln, with an EBITDA of USD 1,492 mln. MMK boasts the industry's lowest debt burden. Net debt/EBITDA know
ratio was -0.06? at the end of 2020. The Group's investment-grade rating is confirmed by the leading about key
global rating agencies Fitch, Moody's and S&P. MMK news.
MMK's ordinary shares are traded on the Moscow Exchange, while its depositary receipts are traded on the
London Stock Exchange. Free float amounts to 15.7%.
INVESTOR RELATIONS
DEPARTMENT
+7 915 380 6266 kryachko.vs@mmk.ru KEY UPCOMING EVENTS IN 2021
Financial calendar
ESG
DEPARTMENT 27 April Integrated Annual Report 2020.
Yaroslava Vrubel 27-28 April Non-deal roadshow (NDR), online
+7 982 282 9682
vrubel.ys@mmk.ru 17-18 May WOOD Prague Spring Simposium: ESG, online
18-20 May BofA Global Metals, Mining & Steel Conference, online
COMMUNICATIONS DEPARTMENT 19-21 May Sberbank CIB Annual Investor Conference, online +7 985 219 2874 kuchumov.do@mmk.ru Oleg Egorov +7 903 971 8837 egorov.oa@mmk.ru -----------------------------------------------------------------------------------------------------------------------
ISIN: US5591892048
Category Code: QRF
TIDM: MMK
LEI Code: 253400XSJ4C01YMCXG44
Sequence No.: 100178
EQS News ID: 1186937
End of Announcement EQS News Service
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(END) Dow Jones Newswires
April 21, 2021 03:06 ET (07:06 GMT)