NLMK is to revise capital allocation in 2020

Press release

26 March 2020

NLMK is to revise capital allocation in 2020

· Capex. Due to increased volatility on global markets associated with the COVID-19 outbreak, NLMK Group is withdrawing its previously issued guidance on 2020 capex programme of$1.1-1.2 billion for a downward revision. Commencement of certain expansion projects could be postponed. At the same time, the Company is proceeding with its major overhauls atNLMK Lipetsk primary steelmaking operations scheduled for 2020.

· Liquidity. Cash and cash equivalents, as well as short-term liquid financial investments on the Company's balance sheet currently stand at $1.56 billion (+79% vs. 31 December 2019). Available credit lines are estimated at an additional $0.8 billion. NLMK's current level of liquidity creates a safety buffer to ensure uninterrupted business operations.

· Debt management. The Company's net debt stands at $1.9 billion (+5% vs. 31 December 2019). Average cost of debt remains low at 3.16%. NLMK has sufficient liquidity to cover all short-term debt maturities, including renewable working capital lines.