Investment case
A LEADING RUSSIAN STEEL PRODUCER
In a world in which progress relies heavily on the supply of quality steel products, MMK presents unrivalled potential for sustainable growth in the steel sector. Building on its long-established heritage, the Company is able to benefit from a wealth of opportunities by making the most of its geographical and geological advantages to produce world-leading steel products.
OUR INVESTMENT CASE
Unique factors
Unique market exposure
>
80
%
of products are sold at the domestic market
>
45
%
of annual steel consumption in Russia is concentrated in MMK's main supply regions
Unique high-quality product portfolio
42
%
of products sold are premium products
ММК is best positioned for potential upside as a result of the implementation of the National Projects initiative
When domestic steel volumes rise by 10%, EBITDA increases by 27%; when domestic steel prices rise by 10%, EBITDA increases by 9%
Unparalleled access to raw material base
The forecasted cooling of iron ore prices should support better MMK earnings momentum vs peers in the mid-term
Rare factors
One of the highest TSR
129
%
MMK is one of the leaders among Russian and world steel companies, with a 129% TSR generated over the past five years (2017 – 2021)
Lowest debt burden
Strongest balance sheet in the sector
Common factors
Prudent capital allocation
>
20
%
Investment projects IRR
≥
100
%
Free cash flow dividend payout
Low cost profile
1st quartile
on the global cost curve