NLMK.L Regulatory News (NLMK)

Press release

October 10, 2019

NLMK Group and Belgian SOGEPA sign agreement on joint execution of NLMK Belgium Holdings development strategy

NLMK Group, a global steelmaker, and Belgian investment fund SOGEPA (Société wallonne de Gestion et de Participations S.A.), have signed an agreement on joint execution of the NLMK Belgium Holdings (NBH) development strategy.

NBH comprises the production companies and service centers of the NLMK Europe Strip Division (NLMK La Louvière, NLMK Strasbourg, NLMK Manage Steel Center) and two NLMK Europe Plate production companies (NLMK Clabecq, NLMK Verona). NLMK and SOGEPA each hold a 49% equity stake in NBH.

Under the agreement, NLMK and SOGEPA have decided to invest EUR 100 m each in NBH charter capital between 2019 and 2021. The parties agreed to continue supporting NBH bank financing via shareholder guarantees on a parity basis.

Funds allocated to NBH will go towards the execution of Strategy 2022 investment projects, aimed at boosting the production capacity of niche products in both European Divisions.

The signed agreement also provides SOGEPA with a put option to sell NLMK Group 24% of NBH in 2023.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group's steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.

NLMK operates production facilities in Russia, Europe and the United States. The Company's steel production capacity exceeds 17 million tonnes per year.

NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2018, the Company generated $12 billion in revenue and $3.6 billion in EBITDA. Net Debt/EBITDA stood at 0.25x. The Company has investment grade credit ratings from S&P, Moody's, Fitch and Expert RA.

NLMK's ordinary shares with a 19% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1.

For more details on NLMK shareholder capital please follow the link.

For NLMK Group's photos and corporate videos, please visit our media library.

About SOGEPA

SOGEPA is a Belgian investment fund established in 1984 to support economic development of the Walloon region. SOGEPA contributes to creation of sustainable businesses by investing in industrial projects and assets. The fund adheres to the best private investment practices, playing an active role in the strategic management of companies at the level of board of directors.

Alongside private investors, SOGEPA is also a trusted partner of Walloon-based companies undergoing reorganization and in general enterprises active in the industrial sector.