METALLOINVEST ANNOUNCES H1 2021 IFRS FINANCIAL RESULTS

METALLOINVEST ANNOUNCES H1 2021 IFRS FINANCIAL RESULTS

Moscow, Russia - 17 August 2021 - Metalloinvest ("the Company"), a leading global iron ore and HBI producer, and one of the regional producers of high-quality steel, today announces its audited IFRS financial results for the six months ended 30 June 2021 (H1 2021).

HIGHLIGHTS FOR H1 2021

• Revenue reached USD 5,064 mn, increasing 64.7% y-o-y amid a favourable price environment for iron ore and steel products. The Russian market's share of revenue increased to 37%.
• EBITDA amounted to USD 2,916 mn, up 175.4% y-o-y and exceeding the result for all of 2020. The increase was driven by higher revenue as well as the impact of measures to improve operating efficiency.
• The Company achieved its highest-ever EBITDA margin with a y-o-y increase of 24.5 p.p. to 61.0%.
• Net income reached USD 2,167 mn, an increase of 308.8% y-o-y.
• As of 30 June 2021, Net debt was USD 2,592 mn, a decrease of 20.0% from 31 December 2020.
• The Net debt / EBITDA LTM ratio was 0.6x, vs. 1.3x as of 31 December 2020.
• Capital expenditure reached USD 316 mn, an increase of 51.3% y-o-y. The increase was due to the retrofitting of mining and transport systems, specifically the purchase of specialised equipment, and the implementation of development projects and a programme aimed at reducing the Company's environmental impact.

Nazim Efendiev, CEO of Management Company Metalloinvest, commented:

"In the first half of 2021, we witnessed an impressive recovery in business activity and industrial production around the world. The effect of deferred demand as well as the various stimulating measures taken by many leading countries, including Russia, enabled the high utilisation of production capacities along the entire value chain in the metals & mining sector.

"As a result, against the background of faster growth in global steel consumption relative to production, an exceptionally favourable pricing environment developed in the Company's main sales markets. This factor, combined with the efforts of management to control costs and implement operational efficiency best practices, enabled the Company to deliver remarkable financial results. In addition, due to strong cash flow, the Company reduced its Net debt by 20%, which ensured an extremely low level of leverage - 0.6x in terms of
Net debt / EBITDA LTM.

"The strong results, the Company's steadily improving business profile and its focus on high-quality products for green metallurgy did not go unnoticed by the leading credit rating agencies. An important milestone in Metalloinvest's 10-year presence in the public debt capital market was Fitch's upgrade of the Company's corporate credit rating in June this year to investment-grade.

"The COVID-19 pandemic continues to be one of the main constraints on business globally. The health of our employees is our top priority and the Company continues to implement all measures to ensure continuous production and the execution of the capital expenditure programme. Vaccination has been successfully carried out at our enterprises since January. Today, 70% of our employees have been vaccinated."

KEY CORPORATE HIGHLIGHTS

Operational developments and growth projects

• Iron ore production amounted to 20.4 mn tonnes, an increase of 1.2% y-o-y.
• Pellet production remained unchanged and amounted to 14.1 mn tonnes.
• As part of the contract renewal process, long-term agreements were signed with key customers.

Financing

• Full early redemption took place of the BO-02 and BO-08 RUB-denominated bonds for a total amount of RUB 15 bn.
• The Company refinanced its PXF-2017 and PXF-2018 pre-export financing credit lines with the new PXF-2021 credit line for up to USD 350 mn.
• Fitch upgraded the Company's corporate rating to an investment-grade rating "BBB-" with a stable outlook.
• Standard & Poor's (S&P) improved the Company's outlook from stable to positive and affirmed its "BB+" long-term corporate credit rating.
• The Analytical Credit Rating Agency (ACRA) improved the Company's outlook from stable to positive and affirmed its "AA+(RU)" long-term corporate credit rating.

ESG developments

• The Company adopted a Climate Strategy and announced its commitment to achieving carbon neutrality by 2050.
• A decision was taken to raise enterprise employees' pay by 5% from March 2021.
• The socio-economic partnership programme for 2021 was approved.
• An agreement was signed with regard to investments in green metallurgy projects in the Belgorod region.

Full press release and financial statements are available at:

https://www.metalloinvest.com/investors/financial-results/

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If you have any questions, please contact us:

Artem Lavrischev
Investor Relations

E: [email protected]

T: +7 (495) 981-55-55, ext. 7243

Anton Troshin

Public Relations

E: [email protected]

Tel.: +7 (495) 981-55-55, ext. 7629

About Metalloinvest

Metalloinvest is a leading metals and mining company with the second-largest proven iron ore reserves on a JORC-equivalent basis
(13.8 billion tonnes and about 136 years of reserve life). The company is the world's largest producer and supplier of merchant hot briquetted iron (HBI) products, a low-carbon raw material used to produce green steel; Metalloinvest holds a leading position in the production of pellets, iron ore concentrate and high-quality steel.

Alisher Usmanov is the main beneficiary of the company (with a 49% stake) through Holding Company USM LLC.

Ticker (Bloomberg): METIN RU; official website: www.metalloinvest.com