Q4 2021 highlights:

• Steel output increased by 16% qoq to 4.5 m t (+16% yoy) as capacity utilization at NLMK Lipetsk grew after repair works in the steelmaking operations oxygen supply infrastructure in August 2021.

• Sales grew by 8% qoq to 4.5 m t (+6% yoy) following output growth. Finished product sales grew by 12% qoq to 3.1 m t as capacity utilization at NLMK Lipetsk recovered. Year-on-year, finished product sales grew by 18% due to higher sales of galvanized and hot-rolled steel (in Q4 2020, repairs of corresponding equipment were performed). Group sales growth was slower than output growth as shipments of semi-products to third parties went down by 26% qoq (-16% yoy), due to higher intragroup slab shipments (+2.0õ qoq) and lower square billet supplies amid negative profitability in the context of export duties (-86% qoq).

• Sales in NLMK’s “home” markets grew by 14% qoq to 3.2 m t (+20% yoy).

12M 2021 highlights:

• Steel output grew by 10% yoy to 17.4 m t following equipment ramp-up after upgrades of BF and BOF operations at NLMK Lipetsk and output growth in the Russia Long Products and NLMK USA segments.

• Sales stood at 16.8 m t (-4% yoy) amid recovery of intragroup slab supplies from NLMK Lipetsk to NLMK USA to 1.3 m t and lower commercial pig iron sales as steel output grew, which was partially offset by higher shipments of finished products to third parties.

• Sales in NLMK’s “home” markets grew by 6% yoy to 11.4 m t due to higher supplies to the US (+27% yoy) and Russian markets (+9% yoy).

• Export sales went down by 22% yoy to 5.2 m t due to the high baseline of 2020, when supplies were redistributed to external markets due to weak demand in Russia and the US amid strict quarantine measures.