UK markets closed

Public Joint Stock Company Magnitogorsk Iron & Steel Works (MAGN.ME)

MCX - MCX Real-time price. Currency in RUB
Add to watchlist
54.21+1.12 (+2.10%)
At close: 11:49PM MSK
Full screen
Previous close53.09
Open52.55
Bid0.00 x 140000
Ask0.00 x 100000
Day's range52.04 - 54.80
52-week range31.23 - 59.09
Volume57,749,870
Avg. volume41,844,099
Market cap605.703B
Beta (5Y monthly)0.56
PE ratio (TTM)1,003.80
EPS (TTM)0.05
Earnings date21 Apr 2021
Forward dividend & yield9.56 (18.22%)
Ex-dividend date13 Jan 2021
1y target est0.86
  • EQS Group

    PJSC Magnitogorsk Iron and Steel Works: MMK Group financial results for Q4 and 12M 2020

    PJSC Magnitogorsk Iron and Steel Works (MMK) 02-Feb-2021 / 07:56 CET/CEST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. MMK Group IFRS FINANCIAL RESULTS for q4 and 12M 2020 2 february 2021 Magnitogorsk, Russia PJSC Magnitogorsk Iron & Steel Works ("MMK", or the "Group") (MICEX-RTS: MAGN; LSE: MMK), one of the world's largest steel producers, is pleased to announce its financial results for Q4 and 12M 2020. MMK GROUP FINANCIAL RESULTS Q4 2020 USD mln Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Revenue 1,852 1,565 18.3% 6,395 7,566 - 15.5% EBITDA 474 350 35.4% 1,492 1,797 - 17.0% EBITDA margin, % 25.6% 22.4% 3.2 p.p. 23.3% 23.8% - 0.5 p.p. Profit for the period 313 102 206.9% 604 856 - 29.4% Free cash flow1 125 335 - 62.9% 557 883 - 36.9% Net debt - 88 - 34 - - 88 - 235 - Net debt/EBITDA - 0.06x - 0.03x - - 0.06x - 0.13x - Net working capital 745 672 10.9% 745 953 - 21.8% L3M Net working capital/revenue 10.1% 10.7% - 0.6 p.p. 10.1% 13.8% - 3.7 p.p. 1 - Free cash flow is calculated as net cash from operating activities plus interest received and proceeds from disposal of PPE and intangible assets, net of purchase of PPE and intangible assets (CAPEX). KEY FINANCIAL INDICATORS FOR Q4 2020 VS Q3 2020 MMK Group's revenue increased by 18.3% quarter-on-quarter (q-o-q) to USD 1,852 mln, which reflects a growth in sales volumes and a rise in steel prices in Russia and globally. EBITDA for Q4 2020 grew to USD 474 mln, up 35.4% q-o-q, driven by higher margins resulting from stronger sales and steel prices trending upwards in key sales markets. EBITDA margin increased by 3.2 p.p. to 25.6%. Net profit more than tripled q-o-q to USD 313 mln, mainly due to higher margins and foreign exchange gains. FCF for the quarter amounted to USD 125 mln, down 62.9% q-o-q, due to higher CAPEX and the seasonal build-up of raw materials amid growing purchase prices. KEY FINANCIAL INDICATORS FOR 12M 2020 VS 12M 2019 MMK Group's revenue declined by 15.5% year-on-year (y-o-y) to USD 6,395 mln due to worsening market conditions and the scheduled reconstruction of Hot-Rolling Mill 2500. EBITDA decreased by 17.0% y-o-y to USD 1,492 mln due to the impact of the pandemic on business activity and global steel prices. EBITDA margin was down by 0.5 p.p. to 23.3%. Net profit declined by 29.4% y-o-y to USD 604 mln, mainly due to worsening market conditions amid the global pandemic. FCF amounted to USD 557 mln, down 36.9% y-o-y, reflecting the worsening global macroeconomic environment. COMMENT BY MMK'S CEO CEO PAVEL SHILYAEV « Dear shareholders and colleagues, In 2020, the Russian and global economies were hit by the one-two punch of the COVID-19 pandemic and falling oil prices, with the biggest blow to the Russian economy coming in the second quarter. Nevertheless, as early as in June, when lockdown restrictions were partially lifted and support measures were increased, the trends in GDP and real household income started to reverse. Despite the new wave of the pandemic in the second half of the year, the Russian economy embarked on a path to recovery, which had a positive impact on our fourth quarter performance. The launch of a large-scale vaccination programme throughout the country in Q1 2021 has provided the necessary impetus to further stabilise the epidemiological situation. The COVID-19 response centre that I am heading up continues to operate across MMK. Protecting the health of the Group's workers and employees while ensuring the continuity of all business processes remains our top priority. In the fourth quarter, the traditional impact of seasonal factors on demand for metal products in the Russian market was almost completely offset by predominantly milder weather, as well as the continuing tailwind from the pent-up demand built up during the second quarter. While in November and December our stocks of premium products traditionally increase, ready to be sold typically at the beginning of the following year, the reporting quarter saw a trend reversal due to the continuing recovery in demand from the automotive industry and a strong pipeline of orders from the construction industry. Sales volumes and sales mix in the fourth quarter were also given a serious boost after Hot-Rolling Mill 2500 ramped up to its design capacity. As a result, domestic sales in the fourth quarter (Russia and CIS) amounted to 76%, while the share of premium products in total sales was 44%. In absolute terms, our sales of premium products stayed flat quarter-on-quarter, aligned with our strategic priorities. In the fourth quarter, we continued realization of the project on a new coke-oven battery construction. In accordance with the project schedule, a number of winter-specific preparatory operations were completed during the quarter. We expect total CAPEX to reach about USD 1 bn in 2021, with the construction period for some parts of the facility postponing from 2020. Financial stability remains a key focus for the Company. MMK's debt leverage remains among the industry's lowest at -0.06x Net Debt/EBITDA as of the end of the fourth quarter. The Group's high level of available liquidity (USD 2.6 bn) provides it with a strong cushion to successfully meet its strategic commitments. MMK consistently generates sufficient cash flow and reiterates its commitment to our dividend policy. Reliable dividend payouts are a key element of our operations, aimed at creating more value for all shareholders of the Company. Considering the Q4 2020 results, coupled with our confidence in our financial outlook amid the further economic recovery both in Russia and globally, the Board of Directors can recommend that MMK shareholders approve a dividend of RUB 0.945 per ordinary share (114% of FCF) for Q4 2020, in line with the Company's strategic commitment to maximise TSR. » MMK GROUP'S PERFORMANCE ACROSS CORE SEGMENTS STEEL SEGMENT RUSSIA USD mln Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Revenue 1,734 1,456 19.1% 5,972 7,226 - 17.4% EBITDA 447 336 33.0% 1,440 1,744 - 17.4% EBITDA margin, % 25.8% 23.1% 2.7 p.p. 24.1% 24.1% 0.0 p.p. Cash cost of slab, USD/t 285 263 8.4% 269 305 - 11.8% + 19.1% Q-o-Q REVENUE + 33.0% Q-o-Q EBITDA + 8.4% Q-o-Q SLAB CASH COST The Russian steel segment's revenue for Q4 2020 totalled USD 1,734 mln, up 19.1% q-o-q driven by sales growth due to strong global demand for steel amid a more favourable pricing environment in key sales markets. The y-o-y decline in revenue by 17.4% to USD 5,972 mln was driven by a significant downturn in market conditions as a result of the pandemic's spread in Russia and globally. The segment's EBITDA for Q4 2020 amounted to USD 447 mln, up 33.0% q-o-q, as a result of growing sales and sales margins. EBITDA declined by 17.4% y-o-y to USD 1,440 mln, reflecting the pandemic's negative impact on business activity and global steel prices. The Group's Q4 2020 profitability saw a positive boost to the sum of USD 23 mln for the quarter from the operational efficiency and cost optimisation programmes under our updated strategic initiatives. The annual effect of the programmes amounted to USD 83 mln. The slab cash cost in Q4 2020 amounted to USD 285 per tonne, up 8.4% q-o-q, driven mainly by growing iron ore and scrap prices and the higher share of pellets and scrap in the steelmaking charge. The slab cash cost declined 11.8% y-o-y to USD 269 per tonne, primarily reflecting the impact of the rouble depreciation and decline in prices for coal concentrate. STEEL SEGMENT TURKEY USD mln Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Revenue 165 137 20.4% 518 520 - 0.4% EBITDA 21 11 90.9% 34 - 12 - EBITDA margin, % 12.7% 8.0% 4.7 p.p. 6.6% - 2.3% 8.9 p.p. + 20.4% Q-o-Q REVENUE The Turkish steel segment's revenue for Q4 2020 increased by 20.4% q-o-q to USD 165 mln, reflecting stronger demand from Turkish and European consumers amid a rise in global steel prices. Revenue for 12M 2020 totalled USD 518 mln, slightly down y-o-y. The favourable environment in the market and the growing exports of galvanised steel almost doubled the segment's EBITDA to USD 21 mln in Q4 2020. Year-on-year, the Turkish steel segment's EBITDA grew to USD 34 mln due to sales growth as the strategy to diversify and boost sales margins was successfully implemented. COAL MINING SEGMENT USD mln Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Revenue 46 36 27.8% 179 246 - 27.2% EBITDA 7 0 - 13 68 - 80.1% EBITDA margin, % 15.2% 0.0% 15.2 p.p. 7.3% 27.6% - 20.3 p.p. + 27.8% Q-o-Q REVENUE The coal mining segment's revenue for Q4 2020 increased by 27.8% q-o-q to USD 46 mln as a result of growing sales and prices for coal concentrate amid favourable market conditions. Revenue for 12M 2020 decreased by 27.2% y-o-y to USD 179 mln following a significant correction in coal concentrate prices. Supported by the favourable market environment, the segment's EBITDA in Q4 2020 rose to USD 7 mln. EBITDA for 12M 2020 decreased by 80.1% y-o-y to USD 13 mln, due to a significant correction in coal concentrate prices and the accrual of provisions. CASH FLOW AND FINANCIAL POSITION OF MMK GROUP CAPEX AND CASH FLOW In Q4 2020, CAPEX increased by 44.0% q-o-q to USD 229 mln, keeping pace with the project implementation schedule. Over 12M 2020, CAPEX decreased by 19.0% y-o-y to USD 694 mln, driven by the rouble depreciation and COVID-related delays to the construction of the new coke-oven battery. Rising prices for key steelmaking raw materials amid the seasonal inventory stockpiling led to a USD 50 mln working capital build-up in Q4 2020. The Group management team's effective efforts improved net working capital to revenue ratio of 10.1% in Q4 2020, an 0.6 p.p. decrease q-o-q. FCF for Q4 2020 decreased by 62.9% q-o-q to USD 125 mln, following an increase in CAPEX and working capital. FCF for 12M 2020 decreased by 36.9% y-o-y to USD 557 mln, reflecting the pandemic's impact in Q2 2020 and the associated market headwinds. DEBT BURDEN The Group's total debt for Q4 2020 was USD 970 mln, up from USD 946 mln in Q3 2020 (USD 870 mln for 12M 2019). As of the end of Q4 2020, the Group held USD 1,058 mln in cash and deposits in its accounts. The Group's net debt as of the end of Q4 2020 totalled negative USD 88 mln, while its net debt/EBITDA ratio was -0.06х, the lowest among leading global steelmakers. DIVIDENDS OF MMK GROUP The Group remains committed to its dividend policy. Considering our high margins, paired with our confidence in further business recovery in Russia and globally, the Board of Directors is convinced that the Group sits in a stable position and recommends shareholders to approve the payment of a dividend of RUB 0.945 per share (114% of FCF for the quarter) for Q4 2020. OUTLOOK The stable demand in the domestic and international markets will support sales in Q1 2021. The premium product capacity utilisation rate will remain at the maximum level. The major increase in metallurgical raw material prices and positive dynamics of global prices for metal products will support the growth of prices for MMK Group's metal products in Q1 2021. CAPEX for Q1 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 the updated strategic initiatives will further boost the Group's profitability in Q1 2021. CONFERENCE CALL MMK Management will hold a conference call to discuss these financial results Date: 2 February 2021 Time: 4:30 pm Moscow time 1:30 pm London time 8:30 am New York time Russia UK USA Local access +7 495 646 9190 +44 3303 369411 +1 323 794 2588 Toll free 8 10 800 2867 5011 0800 279 7204 888 394 8218 Conference ID: in Russian - 8965121 in English - 1397890 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 - 8965121 in English - 1397890 Russia UK USA Local access 8 10 800 2702 1012 +44 2076 600134 +1 719 457 0820 A presentation of the financial results and the IFRS financial statements can be found at: http://eng.mmk.ru/for_investor/financial_statements/ ABOUT MMK MMK is one of the world's largest steel producers and a leading Russian metals company. The Group's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products, with a predominant share of premium products. In 2020, MMK produced 11.6 mln tonnes of crude steel and sold 10.8 mln tonnes of commercial steel products. ММК is an industry leader in terms of production costs and margins. Group revenue in 2020 totalled USD 6,395 mln, with an EBITDA of USD 1,492 mln. MMK boasts the industry's lowest debt burden. Net debt/EBITDA ratio was -0.06х at the end of 2020. The Group's investment-grade rating is confirmed by the leading global rating agencies Fitch, Moody's and S&P. 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%. Subscribe to our official MMK channel on Telegram to be the first to know about key MMK news. INVESTOR RELATIONS DEPARTMENT Veronika Kryachko +7 915 380 6266 kryachko.vs@mmk.ru ESG DEPARTMENT Yaroslava Vrubel +7 982 282 9682 vrubel.ys@mmk.ru COMMUNICATIONS DEPARTMENT Dmitry Kuchumov +7 985 219 2874 kuchumov.do@mmk.ru Oleg Egorov +7 903 971 8837 egorov.oa@mmk.ru KEY UPCOMING EVENTS IN 2021 Financial calendar 10 February Citi virtual Russia Credit Investor Day 25 February Video conference for retail investors, Smart-lab ISIN: US5591892048 Category Code: ACS TIDM: MMK LEI Code: 253400XSJ4C01YMCXG44 Sequence No.: 92679 EQS News ID: 1165013 End of Announcement EQS News Service

  • EQS Group

    PJSC Magnitogorsk Iron and Steel Works: MMK Group Trading Update for Q4 and 12M 2020

    PJSC Magnitogorsk Iron and Steel Works (MMK) 26-Jan-2021 / 07:54 CET/CEST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. MMK Group trading update for q4 and 12M 2020 26 january 2021 Magnitogorsk, Russia PJSC Magnitogorsk Iron & Steel Works ("MMK", or the "Group") (MICEX-RTS: MAGN; LSE: MMK), one of the world's largest steel producers, is pleased to announce its Trading Update for Q4 and 12M 2020. HIGHLIGHTS Q4 2020 VS Q3 2020 Pig iron output increased by 6.0% quarter-on-quarter (q-o-q) to 2,521 thousand tonnes, driven by increased steel demand and increased production volumes. Steel output was up 14.9% q-o-q at 3,312 thousand tonnes due to stronger demand and production ramp-up of Hot-Rolling Mill 2500 after its scheduled reconstruction in Q3. MMK Group's total sales of finished products amounted to 3,045 thousand tonnes, up 11.1% q-o-q. MMK Group's sales of premium products stayed flat q-o-q at 1,343 thousand tonnes (44.1% of total sales). MMK Coal's coal concentrate production totalled 837 thousand tonnes, up 16.0% q-o-q due to the decommissioning of an underperforming coal face and the launch of a new one. HIGHLIGHTS 12M 2020 VS 12M 2019 Pig iron output decreased by 6.7% year-on-year (y-o-y) to 9,344 thousand tonnes, due to a longer period of scheduled maintenance at blast furnace facilities and lower demand amid the coronavirus pandemic. Steel output in 12M 2020 was down 7.1% y-o-y to 11,574 thousand tonnes, affected by the scheduled reconstruction of Hot-Rolling Mill 2500 and the slowdown in business activity due to the pandemic. MMK Group's total sales of finished products fell by 5.0% y-o-y to 10,755 thousand tonnes. Premium product sales dropped by 6.1% y-o-y to 5,143 thousand tonnes. The share of premium products in total sales decreased to 47.8%. Coal concentrate output in 12M 2020 amounted to 3,059 thousand tonnes, up by 17.0% y-o-y, due to the completion of a beneficiation plant upgrade, which took place throughout 2019, as well as the increased processing of purchased coals. MARKET OVERVIEW Global steel products market: In Q4 2020, global prices reached their multi-year highs, fuelled by shortages in key markets. Spurred by continuing infrastructure investment, China's economic recovery supported high domestic demand and prices for rolled steel throughout 2020. In Q4, strong pent-up demand for rolled steel built up in the US and Europe, due to low inventories and an import supply gap. Turkish steelmakers were able to put a significant premium on their products amid growing demand in the domestic and international markets. Russian steel products market: In late Q4 2020, the Russian warehousing market saw a surge in prices for rolled steel, spurred on by frantic demand from end consumers and increased global prices for metal products. An unexpectedly strong growth in feedstock prices also had a substantial impact on the growth in prices for rolled products. Global iron ore market: In Q4 2020, iron ore prices soared driven by persistently high demand for feedstock in China and improved demand in other regions. In late 2020, iron ore exports were somewhat lower compared to late 2019, which also supported price growth. In Q1 2021, it is expected that the volume of supply and demand in the iron ore market will decline due to seasonal factors, which may lead to a correction in iron ore prices. Russian iron ore market: Demand for iron ore in Russia and in the EU grew in late 2020 along with an increase in steelmaking capacity utilisation. As a result, exports of Russian iron ore to China dwindled, with suppliers returning to their traditional consumers. Base prices in Russia are following Chinese indices, adjusted for changes in the USD/RUB rate, with discounts offered to domestic consumers in late 2020 remaining stable overall. In roubles, however, Russian prices for iron ore hit record high levels. Global coking coal market: In Q4, the global market found itself in a unique position as China suspended imports of coking coals from Australia, its key feedstock supplier. As a result, prices for alternative supplies to China grew to USD 200 per tonne, while Australian prices stayed slightly above USD 100 per tonne, reflecting the supply-side pressure. The further trend will depend on when China will lift its suspension and on weather in Australia. Russian coking coal market: Russian prices grew slightly in Q4 2020, but at a much lower rate than for other types of feedstock and metal products. Russian coal companies have everything they need to raise their contract prices for Q1 2021, although price growth rates will vary across product grades as usual. Russian metal scrap market: In Q4 2020, scrap prices in Russia significantly grew, by 35%-40%, while the demand from Russian steelmakers for scrap was not fully covered. An increased duty for scrap exports from Russia will come into force in late January. However, no considerable decline in prices is expected in Q1 2021, given the low availability of scrap in winter. MMK GROUP'S CONSOLIDATED RESULTS thousand tonnes Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Crude steel production 3,312 2,882 14.9 11,574 12,463 - 7.1 Pig iron production 2,521 2,379 6.0 9,344 10,013 - 6.7 Coal concentrate production 837 721 16.0 3,059 2,614 17.0 Iron ore production 638 811 - 21.3 2,893 2,769 4.5 Finished products sales, including: 3,045 2,742 11.1 10,755 11,316 - 5.0 Semi-finished products 0 0 - 20 0 - Long products 297 349 - 14.7 1,275 1,352 - 5.7 Flat hot-rolled products 1,404 1,052 33.4 4,317 4,486 - 3.8 Premium products, including: 1,343 1,341 0.2 5,143 5,477 - 6.1 Thick plate (Mill 5000) 202 195 3.2 841 1,036 - 18.8 Flat cold-rolled products 226 226 - 0.1 889 1,006 - 11.7 Downstream products, including: 916 919 - 0.3 3,414 3,435 - 0.6 Tinplate 38 44 - 15.2 168 141 19.7 Galvanised steel 460 454 1.3 1,735 1,813 - 4.3 Polymer-coated steel 200 220 - 9.2 717 666 7.7 Band 42 29 42.6 130 120 9.0 Formed section 36 20 77.8 122 167 - 26.7 Pipe 24 28 - 14.4 83 57 47.1 Metalware 111 109 1.9 418 416 0.4 Other metal products 6 14 - 56.3 39 56 - 30.9 Share of premium products 44.1% 48.9% 47.8% 48.4% CONSOLIDATED PRICES FOR METAL PRODUCTS USD/tonne Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Average price per tonne: 575 535 7.5 558 628 - 11.1 Semi-finished products - - - 255 0 - Long products 493 453 8.8 472 530 - 10.9 Flat hot-rolled products 514 439 17.1 479 530 - 9.6 Premium products, including: 657 633 2.4 646 733 - 11.9 Thick plate (Mill 5000) 593 554 3.8 595 730 - 18.5 Flat cold-rolled products 573 517 10.8 558 626 - 10.9 Downstream products, including: 691 678 1.9 682 765 - 10.9 Tinplate 672 696 - 3.4 711 813 - 12.6 Galvanised steel 659 679 2.9 656 728 - 9.9 Polymer-coated steel 852 760 12.1 804 899 - 10.6 Band 600 567 5.8 607 693 - 12.4 Formed section 621 571 8.8 659 781 - 15.6 Pipe 538 494 8.9 521 577 - 9.7 Metalware 627 593 5.7 629 728 - 13.6 Other metal products 777 713 9.0 708 803 - 11.8 + 7.5% Q-o-Q AVERAGE SELLING PRICE The average selling price in US dollars grew by 7.5% q-o-q in Q4 2020 to USD 575 per tonne, driven by the increase in global prices for metal products and iron ore. The 11.1% y-o-y fall in the average selling price in 12M 2020 was caused by a drop in global steel prices due to the COVID-19 pandemic. MMK GROUP'S PERFORMANCE ACROSS CORE SEGMENTS STEEL SEGMENT RUSSIA thousand tonnes Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Crude steel production 3,312 2,882 14.9 11,574 12,463 - 7.1 Pig iron production 2,521 2,379 6.0 9,344 10,013 - 6.7 Finished products sales, including: 2,933 2,617 12.1 10,268 11,001 - 6.7 Semi-finished products 0 0 - 20 0 - Long products 297 349 - 14.7 1,275 1,352 - 5.7 Flat hot-rolled products 1,505 1,112 35.4 4,542 4,876 - 6.8 Premium products, including: 1,131 1,156 - 2.2 4,431 4,773 - 7.2 Thick plate (Mill 5000) 202 195 3.2 841 1,036 - 18.8 Flat cold-rolled products 226 237 - 4.5 899 1,003 - 10.4 Downstream products, including: 703 725 - 3.0 2,692 2,735 - 1.6 Tinplate 38 44 - 15.2 168 141 19.7 Galvanised steel 298 321 - 7.3 1,195 1,257 - 4.9 Polymer-coated steel 150 159 - 5.9 536 522 2.7 Band 42 29 42.6 130 120 9.0 Formed section 36 20 77.8 122 167 - 26.7 Pipe 24 28 - 14.4 83 57 47.1 Metalware 111 109 1.9 418 416 0.4 Other metal products 6 14 - 56.8 38 56 - 31.3 Share of premium products 38.5% 44.2% 43.2% 43.4% + 12.1% Q-o-Q sales of finished products - 14.7% Q-o-Q sales of long products + 35.4% Q-o-Q sales of hot-rolled products - 2.2% Q-o-Q sales of premium products + 3.2% Q-o-Q sales of Mill 5000 products - 4.5% Q-o-Q sales of cold-rolled products - 15.2% Q-o-Q sales of tinplate - 7.3% Q-o-Q sales of galvanised steel - 5.9% Q-o-Q sales of polymer-coated steel The increase in the sales volume of finished products in Q4 2020 by 12.1% q-o-q to 2,933 thousand tonnes was due to the production ramp-up of Hot-Rolling Mill 2500 after its scheduled reconstruction and a high demand for steel in global markets. The 6.7% decrease in product sales y-o-y to 10,268 thousand tonnes was driven by long scheduled reconstruction of Hot-Rolling Mill 2500 and a worsening market environment on the back of the coronavirus pandemic. Sales of long products in Q4 2020 were down by 14.7% q-o-q to 297 thousand tonnes due to a high base in the previous quarter and the seasonal decline in demand. Year-on-year, sales were down 5.7% to 1,275 thousand tonnes in Q4 2020, reflecting the slowdown in business activity. The volume of sales of hot-rolled products in Q4 2020 increased by 35.4% q-o-q to 1,505 thousand tonnes. This was due to the production ramp-up of Hot-Rolling Mill 2500 after its scheduled reconstruction, combined with a growing demand for steel in global markets. Year-on-year, sales of hot-rolled products dropped by 6.8% to 4,542 thousand tonnes in 12M 2020, affected by scheduled reconstruction of Hot-Rolling Mill 2500. In Q4 2020, sales of premium products were down by 2.2% to 1,131 thousand tonnes, and their share of total sales reached 38.5%, reflecting the growing share of hot-rolled products. Year-on-year, sales of premium products were down 7.2% to 4,431 thousand tonnes in 2020, while their share of total sales slipped slightly to 43.2%. The major drivers of the change were a decline in sales of Mill 5000 thick plate and the slowdown in business activity. The 3.2% increase in sales volumes of Mill 5000 products q-o-q to 202 thousand tonnes was due to the growth in orders from pipe manufacturers. The 18.8% y-o-y decline in Mill 5000 thick plate sales to 841 thousand tonnes in 12M 2020 was due to changes in order mix amid a 100% capacity utilisation rate. Sales of cold-rolled products in Q4 2020 were down by 4.5% q-o-q to 226 thousand tonnes, due to a more complex product mix. Year-on-year, sales were down 10.4% to 899 thousand tonnes in 12M 2020, due to the slowdown in business activity along with an accident at the reverse Cold-Rolling Mill 1700 in February 2020. In Q4 2020, tinplate sales decreased by 15.2% to 38 thousand tonnes due to an equipment overhaul. The 19.7% y-o-y growth in tinplate sales in 2020 to 168 thousand tonnes reflects a higher demand from the food industry. The decrease in the sales of galvanised steel in Q4 2020 by 7.3% q-o-q to 298 thousand tonnes was due to a higher base in Q3 and a more complex product mix. Year-on-year, sales declined by 4.9% to 1,195 thousand tonnes in 12M 2020. In Q4 2020, sales of polymer-coated steel reduced by 5.9% q-o-q to 150 thousand tonnes, driven by an equipment overhaul. Year-on-year, sales of polymer-coated steel grew by 2.7% to 536 thousand tonnes in 2020, driven by a year-on-year growth in pent-up demand in Q4 2020. STEEL SEGMENT TURKEY thousand tonnes Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Finished products sales, including: 220 200 10.1 741 721 2.8 Flat hot-rolled products 7 5 34.1 19 16 23.8 Premium products, including: 213 194 9.4 721 705 2,4 Flat cold-rolled products - - - - 4 - Downstream products, including: 213 194 9.4 721 701 3.0 Galvanised steel 163 133 21.8 540 556 - 2.9 Polymer-coated steel 50 61 - 17.9 181 144 25.5 Share of premium products 96.8% 97.4% 97.4% 97.8% Intersegment sales from Steel segment Russia 108 75 43.8 255 406 - 37.3 + 10.1% Q-o-Q sales of finished products The Turkish steel segment's sales of finished products in Q4 2020 were up 10.1% q-o-q at 220 thousand tonnes, reflecting a growing demand from Turkish and European consumers, driven by a limited supply in the market and the replenishment of inventories. In Q4 2020, the Turkish steel segment continued its sales diversification strategy and almost doubled its galvanised steel exports to 97 thousand tonnes. The increase in 2020 sales by 2.8% y-o-y to 741 thousand tonnes reflects the product portfolio diversification strategy of the Turkish steel segment and is linked to the significant growth in polymer-coated steel sales volumes by 25.5% y-o-y to 181 thousand tonnes. COAL MINING SEGMENT thousand tonnes Q4 2020 Q3 2020 % 12M 2020 12M 2019 % Coking coal mining 1,246 965 29.1 4,354 4,811 - 9.5 Coking coal processing 1,404 1,242 13.1 5,291 4,710 12.3 Mined 1,208 1,149 5.2 4,777 4,438 7.6 Purchased 159 93 69.9 477 258 85.1 Toll 37 - - 37 14 166.2 Coking coal concentrate 837 721 16.0 3,059 2,614 17.0 + 29.1% Q-o-Q coking coal production + 16.0% Q-o-Q COKING COAL CONCENTRATE PRODUCTION Coking coal production in Q4 2020 amounted to 1,246 thousand tonnes, an increase of 29.1% q-o-q, after the decommissioning of an underperforming coal face and the launch of a new one. Year-on-year, coking coal production was down 9.5% to 4,354 thousand tonnes in 2020, due to the challenging geological conditions at the Chertinskaya-Koksovaya mine and the suspension of mine operations following an accident in September. Coking coal concentrate production in Q4 2020 grew by 16.0% q-o-q to 837 thousand tonnes, driven by higher coking coal production. The 17.0% y-o-y growth in coal concentrate output to 3,059 thousand tonnes in 2020 was driven by the completion of a beneficiation plant upgrade, which took place throughout 2019, as well as the increased processing of purchased coals. MMK GROUP'S SUSTAINABILITY PERFORMANCE (ESG) HIGHLIGHTS In Q3, MMK Group established its ESG department. The department is responsible for all stakeholder communications as well as the development and execution of the Group's sustainability strategy. On 8 July 2020, MMK published a corporate Sustainability Report prepared under Global Reporting Initiative (GRI) standards. The publication of this Report reflects MMK's commitment to its mission and core principles of sustainable development, including the achievement of the UN's Sustainable Development Goals. The newly-reconstructed Blast Furnace No. 2, with its advanced dust exhausting units at cast and stock houses, was put into operation, which will significantly reduce future dust emissions. In February 2020, an appraisal audit was successfully conducted for compliance with the international standard ISO 45001:2018. Q4 2020 Q3 2020 % 12M 2020 12M 2019 % LTIFR 0.53 0.68 - 22.1 0.66 0.89 - 25.8 Gross air emissions, thousand tonnes 54.6 45.4 20.3 177.4 197.0 - 9.9 Specific air emissions, kg/tonne 17.40 17.68 - 1.6 17.15 17.98 - 4.6 - 25.8% Y-o-Y ltifr In 2020, lost-time-injury frequency rate (LTIFR) decreased year-on-year by 25.8% to 0.66, reflecting a decrease in the number of accidents due to the implementation of measures aimed at improving the production safety culture and eliminating the root causes of accidents. - 4.6% Y-o-Y SPECIFIC AIR EMISSIONS Specific air emissions in 12M 2020 were down 4.6% y-o-y to 17.15 kg per tonne, driven by the construction and launch of Sinter Plant No. 5 in mid-2019, which boasts an advanced gas-cleaning system, coupled with the subsequent decommissioning of Sinter Plant No. 4. In Q4 2020, specific air emissions decreased by 1.6% q-o-q to 17.4 kg/tonne on the back of higher share of EAF steel in the total steel output. COVID-19 RESPONSE The COVID-19 response centre established at MMK and led by the CEO has continued to operate. In line with all the measures introduced in spring, office employees work remotely, the number of personnel at production sites is reduced, and shifts are separated by pauses. The Group continuously monitors the situation and takes all necessary steps to prevent the spread and reduce the risk of coronavirus infection. OUTLOOK The stable demand in the domestic and international markets will support sales in Q1 2021. The premium product capacity utilisation rate will remain at 100%. The major increase in metallurgical raw material prices and positive dynamics of global prices for metal products will support the growth of prices for MMK Group's metal products in Q1 2021. CAPEX for Q1 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 the updated strategic initiatives will further boost the Group's profitability in Q1 2021. ABOUT MMK MMK is one of the world's largest steel producers and a leading Russian metals company. The Group's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products, with a predominant share of high-value-added products. In 2019, MMK produced 12.5 mln tonnes of crude steel and 11.3 mln tonnes of commercial steel products. MMK is an industry leader in terms of production costs and margins. Group revenue in 2019 totalled USD 7,566 mln, with an EBITDA of USD 1,797 mln. MMK boasts the industry's lowest debt burden. Net debt/EBITDA ratio was -0.13х at the end of 2019. The Group's investment-grade rating is confirmed by the leading global rating agencies Fitch, Moody's and S&P. 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%. Subscribe to our official MMK channel on Telegram to be the first to know about key MMK news. INVESTOR RELATIONS DEPARTMENT Veronika Kryachko +7 915 380 6266 kryachko.vs@mmk.ru ESG DEPARTMENT Yaroslava Vrubel +7 982 282 9682 vrubel.ys@mmk.ru COMMUNICATIONS DEPARTMENT Dmitry Kuchumov +7 985 219 2874 kuchumov.do@mmk.ru Oleg Egorov +7 903 971 8837 egorov.oa@mmk.ru KEY UPCOMING EVENTS IN 2021 Financial calendar 27 January Video conference for retail investors, Finam 2 February Q4 and 12M 2020 IFRS financials 10 February Citi virtual Russia Credit Investor Day 25 February Video conference for retail investors, Smart-lab ISIN: US5591892048 Category Code: TST TIDM: MMK LEI Code: 253400XSJ4C01YMCXG44 Sequence No.: 92233 EQS News ID: 1163163 End of Announcement EQS News Service

  • EQS Group

    PJSC Magnitogorsk Iron and Steel Works: Notice of Q4 & 12M 2020 Financial Results

    PJSC Magnitogorsk Iron and Steel Works (MMK) 25-Jan-2021 / 14:21 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Notice of Q4 & 12M 2020 IFRS results webcast & conference call 25 january 2021 Magnitogorsk, Russia PJSC MMK ("MMK", or "the Group") (MICEX-RTS: MAGN; LSE: MMK), one of the world's largest steel producers, is pleased to invite the investment community to join MMK Q4 & 12M 2020 IFRS results webcast & conference call. MMK management will hold a conference call on these financial statements on 2 February 2021 at 4:30 pm Moscow time (1:30 pm London time, 8:30 am New York time). Date: 2 February 2021 Time: 16:30 Moscow time 13:30 London time 8:30 New York time Russia UK USA Local access +7 495 646 9190 +44 (0) 330 336 9411 +1 323-794-2588 Toll free 8 10 800 2867 5011 0800 279 7204 888-394-8218 Conference ID: Russian - 8965121 English - 1397890 Webcast: To register for the webcast please use the following link. The call recording will be available for seven days via the following numbers: Call recording ID: Russian - 8965121 English - 1397890 Russia UK USA Local access 8 10 800 2702 1012 +44 (0) 207 660 0134 +1 719-457-0820 A presentation of the financial results and the IFRS financial statements can be found at: http://eng.mmk.ru/for_investor/financial_statements/ About MMK MMK is one of the world's largest steel producers and a leading Russian metals company. The Group's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2019, MMK produced 12.5 mln tonnes of crude steel and 11.3 mln tonnes of commercial steel products. ММК is an industry leader in terms of production costs and margin. MMK Group had revenue in 2019 of USD 7,566 mln and EBITDA of USD 1,797 mln. MMK's debt load is the lowest for the industry. Net debt/EBITDA ratio was -0.13х at the end of 2019. The Group's investment-grade rating is confirmed by the leading global rating agencies Fitch, Moody's, S&P. MMK's ordinary shares are traded on Moscow Exchange, while its depositary receipts are traded on the London Stock Exchange. Free float amounts to 15.7%. Subscribe to our official MMK channel in Telegram, to be the first to know about key MMK news. INVESTOR RELATIONS DEPARTMENT Veronika Kryachko +7 915 380 6266 kryachko.vs@mmk.ru ESG DEPARTMENT Yaroslava Vrubel +7 982 282 9682 vrubel.ys@mmk.ru COMMUNICATIONS DEPARTMENT Dmitry Kuchumov +7 985 219 2874 kuchumov.do@mmk.ru Oleg Egorov +7 903 971 8837 egorov.oa@mmk.ru KEY UPCOMING EVENTS IN 2021 Financial calendar 27 January Video conference for retail investors, Finam 2 February Q4 and 12M 2020 IFRS financials 10 February Citi virtual Russia Credit Investor Day 25 February Video conference for retail investors, Smart-lab ISIN: US5591892048 Category Code: NOR TIDM: MMK LEI Code: 253400XSJ4C01YMCXG44 Sequence No.: 92201 EQS News ID: 1162978 End of Announcement EQS News Service