NLMK Group is pleased to announce its Q4 2016 and 12M 2016 operating results:

• Crude steel output* grew by 4% yoy to 16.6 m t on the back of the increase in production across all sites.
• NLMK Group capacity utilization rates increased by 3 p.p. to 96%.
• NLMK Group sales totaled 15.9 m t (flat yoy).
• Share of finished product sales grew by 2 p.p. yoy to 64%.
• Market shares in NLMK Group total sales:
• share of product sales by Group companies in regions where products are manufactured (‘home markets’) totaled 66% (flat yoy).
• share of sales to third parties (except NBH) in markets external to countries where products are manufactured (‘export markets’) totaled 34% (flat yoy).

• Crude steel output* increased to 4.2 m t (+8% yoy and +3% qoq) following the completion of planned repairs at Novolipetsk in 3Q 2016.
• Steelmaking capacity utilization rates were up by 3 p.p. yoy to 95%.
• NLMK Group sales totaled 3.6 m t (-4% yoy and -15% qoq) due to the decrease in pig iron deliveries (-73% yoy and -61% qoq).
• Finished products accounted for 62% of total sales (+6 p.p. yoy and -3 p.p. qoq).

*Steel output is given taking into account associated companies (NBH)