37
MMK CORPORATE PRESENTATION APRIL 2016
MMK CORPORATE PRESENTATION
APRIL 2016
…Should Change in Future due
to Long Term Sustainability …But Still Undervalued …
MMK – Fully Renewed
Story…
9
2
MMK – THE VALUE STORY
One of TOP-30 global steel players
High EBITDA margin
Late CAPEX cycle, since major
modernization in 2007-2011
Sustainable generation of high FCF
Significantly improved balance
sheet - Net Debt / EBITDA ratio of
only x0.67
Still history-driven discount to peers
in terms of EV/EBITDA multiple,
possible reasons:
Market perception legacy
(“heavy CAPEX / low
dividends”)
Moderate liquidity of shares
(ADTV)
Low vertical integration
High domestic market
dependence
Hidden value – MMK Metalurji
(Turkey)
Sustainable margin advantage
compared to global peers
Anticipated steel demand growth
prospects (rebound after 2015-2016
decline) in Russia
#1 local market share
Low cost producer
High HVA products share
Well positioned in terms of local
consolidation
No need for large CAPEX in 2016-2025
Mln USD 2012 2013 2014 2015
Revenue 9,328 8,190 7,925 5,839
EBITDA 1,363 1,223 1,607 1,668
EBITDA
margin 14.6% 14.9% 20.2% 28.6%
CAPEX 674 622 497 348
FCF 519 310 759 1 008
Net Debt 3 518 3 026 2 038 1 124
Company EV/EBITDA,
as of 31/12/2015
3.0
5.0
6.0
4.8
29,4%
20,9%
25,8%
20,8%
14,4%
14,6%
14,9%
20,2%
28,6%
22,5%
20,9%
11,5%
14,7% 12,6%
10,0% 10,6%
12,9%
12,3%
0,0%
10,0%
20,0%
30,0%
2007 2008 2009 2010 2011 2012 2013 2014 2015
MMK EBITDA margin Average margin for Top30 Steel Names
Source: ММК, Alfa Bank
ММК POSITION IN GLOBAL METALS&MINING UNIVERSE
Source: ММК, World Steel, Alfa Bank 3
MMK forms a JV
with Atakas
(Turkey) to
construct a plant
with capacity of
2.3 mln tonnes of
steel
TIMELINE: FROM LARGE-SCALE INVESTMENT TO EFFICIENCY
AND ENVIRONMENT
Launch of reversing
cold-rolling mill and
continuous hot-dip
galvanizing unit
Reconstruction of
rolled steel
production (mills 170,
370, 450)
Transition to continuous
casting, substitution of open-
hearth furnaces with EAFs Listing of MMK‘s
shares on London
Stock Exchange
Launch of the second
stage of cold-rolling
mill 2000
Launch of the first stage of
cold-rolling mill 2000
Commissioning of EAF
with annual capacity of
2.3 mln tonnes of steel
in Turkey; increase of
share in the Turkish
project to 100%
Commissioning of thick-plate
Mill 5000
MMK receives controlling
stake in Belon
MMK acquires 100% of ZAO
Profit, Russia’s largest scrap
collector
Major environmental
project - sludge
decantation complex
of oxygen-converter
plant
Commissioning of two major
environmental facilities: coke
gas chilling plant and sulphur
capture unit
Decrease in Debt
Debt/EBITDA ratio to 0.6x
Launch of pressed
components mill and
service metal centre
in St. Petersburg
4 Source: ММК
Historical record in pig iron
production – 10.3 mln
tonnes per year
Launch of new labour
efficiency and cost
optimisation programmes
Mln USD 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue 1,713 1,733 2,065 3,047 4,829 5,380 6,424 8,197 10,550 5,081 7,719 9,306 9,328 8,190 7,925 5,839
EBITDA 444 286 418 1,015 1,735 1,511 2,005 2,407 2,204 1,309 1,606 1,336 1,363 1,223 1,607 1,668
EBITDA
margin 25.9% 16.5% 20.2% 33.3% 35.9% 28.1% 31.2% 29.4% 20.1% 25.8% 20.8% 14.4% 14.6% 14.9% 20.2% 28.6%
CAPEX 236 287 204 202 395 562 697 1,216 2,112 1,613 2,209 1,154 674 622 497 348
FCF -15 -106 -2 383 615 693 380 -717 -501 -764 -1,236 -698 519 310 759 1 008
Net Debt - 199 101 -272 -649 -499 666 1 210 620 1 953 3 033 3 992 3 518 3 026 2 038 1 124
Dividends 0 -2 -2 -5 -14 -947 -1 077 -547 -313 -16 -198 -121 0 -96 -117 -103
THE MMK BD EXPERTISE IS GUARANTIED BY PROFESSIONAL AND
WELL-RECOGNISED DIRECTORS
5
Name Education Experience
Victor Rashnikov, 67 Chairman of the MMK BD
Magnitogorsk Institute of Mining and
Metallurgy
Zumrud Rustamova, 45 Deputy General Director of Polymetal
Moscow Economic and Statistics
Institute
Valeriy Martsinovich, 42 CEO at Hay Group Eastern Europe
Gdańsk University (Poland)
Morgan Ralph Tavakolian, 47 Partner at Baring Vostok Capital Partners
Ruben Aganbegyan, 44 President of Otkritie Holding
Moscow State Law Academy
Kirill Liovin, 47 Deputy Chairman of the Management Board of
Rosselkhozbank
Moscow Aviation Institute named after
Ordzhonikidze
Olga Rashnikova, 39 MMK Head of Treasury
Pavel Shilyaev, 45 MMK Chief Executive Officer (CEO)
Chelyabinsk State Technological
University, Stockholm School of
Economics in Russia (St. Petersburg)
Sergey Sulimov, 38 MMK Chief Financial Officer (CFO)
Nikolai Lyadov, 59 MMK Chief Sales Officer (CSO)
Magnitogorsk Institute of Mining and
Metallurgy
Ex
ec
uti
ve
N
on
-ex
ec
uti
ve
MMK COMPARISON TO GLOBAL STEEL PEERS (BASED ON FY15
RESULTS)
6
Sales, mln tonnes 11.8 10.8 15.9 84.6 21.5 35.3 42.3 19.86 6,4 17.0
Revenue, mln USD 5,839 6,396 8,008 63,578 25,727 48,780 42,540 16,439 9,436 13,280
EBITDA, mln USD 1,668 2,096 1,948 5,231 2,559 4,976 4,591 1,822 477 1,345
EBITDA margin,% 28.6% 32.8% 24.3% 8.2% 10.0% 10.2% 10.8% 11.1% 5% 10.1%
Net profit, mln USD 421 562 968 (7,946) 374 160 1,767 358 (50) (245)
Net debt/EBITDA 0.67 0.38 0.56 3.00 2.94 2.5 3.65 1.50 0 4.43
FCF, mln USD 1,008 1,441 1,056 (1,394) (917) 4,457 1,836 1,783 32 1,474
FCF yield, % 35.2% 20.7% 20.7% - - 36.2% 9.6% 13.9% 2% 107%
CAPEX, mln USD 348 412 595 2,707 3,838 212 2,495 374 368 708
CAPEX / Revenue, % 6.0% 6.9% 7.4% 4.0% 14.9% 0.4% 5.9% 2.3% 4% 5.3%
Slab Cash Cost, USD/t 191 203* 190 - - - - - - -
Steel Capacities
Utilization rate, % 85% 92% 90% - 83% 91% 98% 80% 90% 81%
Iron ore integration 18% 90% 70% 45% 0% 40% 25% 0% 0% 40%
EBITDA/tonne, USD** 141 194 123 51 150 141 108 92 71 79
Market Capitalization, as
of 31/12/2015, mln USD 2,891 6,953 5,100 7,016 14,161 12,323 19,028 12,820 1,672 1,375
Div. yield, % 3% 9% 12% 6% 3% 6% 2% 4% 1% 8%
ATV 6M, mln USD 6.9 16.7 7.5 117.2 57.6 61.9 98.9 105.3 12.3 7.8
EV/EBITDA (FY16) 3.0 5.0 6.0 6.3 9.3 6.2 8.9 9.3 3.5 5.8
Source: ММК, Companies’ data, Alfa Research, Bloomberg
* - non-integrated basis
** - average EBITDA/t for TOP30 Global Steel Makers amounted to 77 USD/t
Hotrolled steel
10%
Galvanized flat
products
56%
Color-coated
rolled products
34%
MMK METALURJI - $ 1 BN+ OF HIDDEN VALUE
Source: MMK
Istanbul
Iskenderun
Europe
Middle East
Africa
Priority markets
Important export markets
Total: 795 ths tonnes
HVA
products,
90%
Key sales markets HRC/Scrap spread recovers in early 2016, USD/t
Production structure of MMK Metalurji, 2015
7
0
200
400
600
800
1000
1200
2005 2007 2009 2011 2013 2015 Apr. 2016
HRC (SBB) Scrap
358
272
211
160 200
521
Iskenderun
• Full-cycle steel making plant (2.3 mtpa) & rolling facilities
• Metal service centre
• Sea port facility
Istanbul
• Metal service centre
Main operations of the company
• Steelmaking/Casting
• Acid pickling/Cold rolling
• Galvanizing/Color coating
• Primary processing (cutting and slitting) of coils
• Steel re-sale/Sale of scrap (from cutting operations)
• Service of cargo
2 407
2 204
1 309 1 606
1 336 1 363
1 223 1 607 1 668
29,4%
20,9%
25,8%
20,8%
14,4%
14,6%
14,9%
20,2%
28,6%
22,5%
20,9%
11,5%
14,7%
12,6% 10,0% 10,6%
12,9% 12,3%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
-
1 000
2 000
3 000
4 000
2007 2008 2009 2010 2011 2012 2013 2014 2015
EBITDA EBITDA margin Average for Top30 Steel Names
MMK MARGINS SUSTAINABILITY
8 Source: ММК, Bloomberg
Historical MMK EBITDA Dynamics, mln$
Even in adverse market conditions MMK’s
EBITDA margin never went below 14%
Arguments in Favour of Long-term EBITDA Margin Sustainability
MMK has structural advantage in all stages of business process:
Structural surplus of key raw materials on the local market
Proximity to suppliers and net-back pricing
Low prices for energy resources
Economy on scale
High capacity utilization rates
Low energy efficiency (i.e. coking coal)
Low productivity
High HVA products share
Proximity to end markets
Natural hedge due to net-back pricing for local sales
+40-50 $/t
-20 $/t
+20-30 $/t
Sa
les &
M
arke
ting
P
rod
uctio
n
Pro
cess
Ra
w
Ma
teria
ls
Net effect – +40-60 $/t
For instance: in 2015 MMK EBITDA/t was $141, while Top30 Global steel makers
had only $77 of EBITDA/t
9
9
BENEFITS COMING FROM DOMESTIC MARKET
Source: ММК
Total effect on EBITDA
$300 mln
Due to surplus of main raw materials on local market and netback pricing mechanism MMK has price advantage to main peers from China and EU. Compared to Chinese steel makers MMK‘s cost advantage amounts to:
• $8 per tonne of iron ore concentrate;
• $20 per tonne of pelets; • $10 per tonne of coking coal • $10 per tonne of scrap
MMK’s focus on Russian market and proximity to end customers in the middle of Russia result in higher average realized price (due to netback pricing mechanism).
Total effect on EBITDA
$360 mln
Structural surplus of main raw materials in Russia, mln tonnes
97,6 97,5
84,6 86,2
40,0
80,0
120,0
2014 2015
Iron Ore Supply Iron Ore Demand
55,2 53,9
39,4 39,1
0,0
40,0
80,0
2014 2015
Coking Coal Supply Coking Coal Demand
1. Sales: Just in time (+/-3 days)
2.Baby Capex and Lean
4. Focus on core business, sale of non-core assets (FMG, MMK Metalurji)
5. Supply. Delivery just in time
6. Personalisation in resource management (Micro Cost Centre project)
7. Zero tolerance of health and safety violations
8. Employees’ health promotion
9. Clean city program
10. Solution of the single-industry city issue
STRATEGIC PROJECTS PORTFOLIO HAS BEEN DEVELOPED TO ENACT FURTHER
OPERATIONAL EFFICIENCY GROWTH, 2016-2025 STRATEGY
10 Source: ММК
Total effect - 907 mln $
or 2-3% p.a.
3.Digital Operations, IoT
mln $
345
136
239
187
9
11
YANDEX – “SNIPER” PROJECT
Source: ММК
5,1 5,1 3,9
2,7
3,5 5,1
6,4 8,4
0
4
8
12
2000 2005 2010 2015F
Рынок РФ (с
СНГ)
Экспорт
Russia and
CIS
Export
mln t
8,7
10,2 10,2 11,0
+ 4.9 mln
- 2.4 mln
Changes in
2015/2000
MMK Group sales structure, mln tonnes
MMK SUBSTITUTE IMPORTS AND WILL BENEFIT FROM DOMESTIC
DEMAND RECOVERY IN FUTURE
12 Source: ММК, Russian Steel
-27 -25 -25 -24 -25 -27 -26
60 61 63 62 65 64
61
5 7 7 7 5 4 2
38 42 45 46 45
41 37
-40
-20
0
20
40
60
80
2010 2011 2012 2013 2014 2015 2016F
Export Production Import Apparent Steel Use
Products balance in Russia, mln tonnes
…but after 2016 gradual recovery is expected
0%
40%
80%
120%
160%
Pipe-making Machnery Car-making Construction
-9%
-25%
-15% -14% -12% -11%
1%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
Total Car-maki
ng
White
Goods
Pipe-mak
ing Machine
Building Construction
Metal
Hardware
Russian steel consumption significantly declined in 2015…
9
13
MMK IS WELL POSITIONED FOR LOCAL CONSOLIDATION
Company Major
business
Areas of synergy Estimated value of synergy
(on EBITDA level) Capacity
management
Sales
management Purchasing
Steel / Mining
Steel / Mining
Steel / Mining
Pipe making
Pipe making
Iron ore / Steel
Iron ore
Source: ММК
500-700 m $
300-500 m $
100-300 m $
100-300 m $
100-300 m $
100-300 m $
100-200 m $
(2) Supporting documents
9
14
APPENDICES
(1) Latest financials
KEY HIGHLIGHTS FOR MMK GROUP
Revenue USD 5,839 mln down 26.6% y-o-y
Cost of sales USD 4,054 mln down 34.7% y-o-y
EBITDA USD 1,668 mln up 3.8% y-o-y
EBITDA margin 28.6% up 8.4 p.p. y-o-y
Net profit USD 421 mln as compared to loss of USD 44 mln in FY 2014
Net debt USD 1,124 mln down by USD 914 mln as compared to 31.12.2014
Net debt / EBITDA 0.67x down from 1.27x as of 31.12.2014
Free cash flow (FCF) USD 1,008 mln up 32.8% y-o-y
CAPEX USD 348 mln down 30.0% y-o-y
Revenue USD 1,181 mln down 21.4% q-o-q
Cost of sales USD 893 mln down 13.8% q-o-q
EBITDA USD 275 mln down 36.0% q-o-q
EBITDA margin 23.3% down 5.3 p.p. q-o-q
Net loss USD -125 mln as compared to profit of USD 78 mln in Q3 2015
Cash cost of slab USD 191 per tonne down 2.6% q-o-q
Free cash flow (FCF) USD 68 mln down 88.1% q-o-q
CAPEX USD 108 mln up 27.1% q-o-q
Q4 2015 Financial results
FY 2015 Financial results
Source: ММК 15
HIGH CAPACITY UTILISATION
• MMK Group’s finished steel products output in FY 2015 was down 8% y-o-y.
• MMK Group High Value Added (HVA) steel products output in FY 2015 was 5,224 thousand tonnes. The share of HVA products in total output volume was 46.7% in FY 2015.
• The total steel-making capacity utilization rate at the main production site in Magnitogorsk in FY 2015 was approx. 85%.
* - incl. made from ММК steel
Key production indicators, ths tonnes
MMK Group finished products dynamics, ths tonnes Key capacities utilisation rates in FY 2015, %
Source: ММК
Q4 ‘15 Q3 ‘15 % FY ‘15 FY ‘14 %
Cast iron 2,541 2,656 -4.3% 10,132 10,280 -1.4%
Crude steel incl. 2,897 3,141 -7.8% 12,236 13,031 -6.1%
MMK 2,897 3,141 -7.8% 12,236 13,031 -6.1%
MMK Metalurji 0 0 - 0 0 -
Finished products 2,668 2,890 -7.7% 11,188 12,158 -8.0%
MMK 2,597 2,894 -10.3% 11,012 11,650 -5.5%
MMK-Metiz* 98 117 -16.2% 418 508 -17.7%
ММК Metalurji* 213 198 7.6% 795 690 15.2%
HVA products 1,214 1,351 -10.1% 5,224 5,480 -4.7%
Belon coking coal concentrate 790 730 8.2% 2,822 2,942 -4.1%
88%
95%
73%
88%
94%
35%
100%
100%
0% 25% 50% 75% 100%
Total by products
Coated steel products
CRC
HRC
Long Steel
Steel EAF
Steel BOF
Blast Furnace
2 919 3 227 3 131 2 914 2 946 2 683 2 890
2 668
43,9% 44,4% 45,4%
46,1% 46,3% 48,3% 46,7% 45,5%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
0
500
1 000
1 500
2 000
2 500
3 000
3 500
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
Steel products HVA Products Share
16
MMK GROUP SALES STRUCTURE ON THE RUSSIAN AND CIS MARKET
Sales structure on the Russian and CIS market, ths
tonnes
Russia and CIS market sales by region, ths tonnes
• Total sales volume on the Russian and CIS market in Q4 2015 was 1,957
ths tonnes, down 370 ths tonnes q-o-q. This was primarily due to overall
seasonal decline in domestic demand for steel during the quarter.
• Sales of thick plate produced at Mill 5000 in Q4 2015 decreased by 119 ths
tonnes, or 46.0%, q-o-q, which was due to the irregular supply schedule of
large-diameter pipes for the construction of major Gazprom projects. This
factor also resulted in lower share of shipments to pipe makers in the
overall sales structure.
• The increase in the share of cold-rolled steel in shipments for Q4 2015 was
due to a recovery in demand following a significant decline in shipments of
this product in Q3 2015.
Russia and CIS market sales by sector, ths tonnes
Source: ММК 17
18% 18% 20% 19%
35% 35% 37% 37%
12% 15% 11% 7%
13% 13% 10% 14%
22% 19% 22% 23%
Q1 2015 Q2 2015 Q3 2015 Q4 2015
Downstream
products
Flat cold-rolled
products
Mill 5000 products
Flat hot-rolled
products
Long products
HVA
44%
HVA
43%
HVA
47%
HVA
47%
1,957 2,327 1,947 2,197
37% 40% 40% 36%
25% 24% 24% 22%
9% 9% 9% 12%
9% 8% 10% 9%
7% 6% 6% 8%
13% 13% 11% 13%
1Q 2015 2Q 2015 3Q 2015 4Q 2015
CIS
Other
Siberia
Central
Region
Volga
Region
Ural
1,957 2,327 2,197 1,947
23% 24% 28% 31%
8% 9% 7%
9%
29% 32% 31% 22%
7% 7% 6% 7%
5% 4% 3%
4% 2% 1% 1% 1%
10% 8% 11% 11% 3% 2% 2% 2%
13% 13% 11% 13%
1Q 2015 2Q 2015 3Q 2015 4Q 2015
CIS sales
Other
Construction sector
Railway build.
Automobile sector
Machine building
Pipe production
Hardware and semi-
integrated factoriesService metal service
1,957 2,327 1,947 2,197
MMK GROUP POSITION ON KEY INTERNATIONAL MARKETS
Sales structure on international markets, ths tonnes
International sales structure by region, ths tonnes Sales share by market, ths tonnes
• Sales on international markets in Q4 2015 amounted to 710 ths tonnes. This increase was due to a seasonal decline in domestic demand, which was offset by an increase in export sales. The share of hot-rolled products increased to 62% of exports, while the share of HVA products decreased to 37%.
• The decrease in export sales of HVA products was due to sufficient domestic demand for these products.
• In Q4 2015, the Company increased its proportion of sales to the Middle East as compared to the previous quarter. Sales to Europe were flat q-o-q.
Source: ММК
80% 87% 88% 82% 79% 82% 84% 84%
77% 73% 80% 75%
20% 13% 12% 18% 21% 18% 16% 16%
23% 27% 20% 25%
0%
25%
50%
75%
100%
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
Domestic market (Russia + CIS) Export 18
2,6% 2,7% 5,0% 4,4%
2,6% 1,3%
60,9% 53,5% 54,1% 61,8%
7,5% 11,3%
9,4% 9,2%
24,0% 28,1% 33,9% 27,7%
Q1 2015 Q2 2015 Q3 2015 Q4 2015
Downstream products
Flat cold-rolled products
Flat hot-rolled products
Long products
Slabs and billets
HVA 37%
HVA 43%
HVA 39%
HVA 32%
748 736 562 710
0% 3% 2%
0%
49% 49%
62% 69%
44% 33%
25% 26%
7% 15% 11%
5%
1Q 2015 2Q 2015 3Q 2015 4Q 2015
Africa
Europe
Middle East
Asia and Far
East
710 562 736 748
134 171 165 173 139 152 132 131
0
500
1 000
1 500
2 000
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
1 774
2 047 2 013
1 574 1 415
1 574 1 431
1 092
0
500
1 000
1 500
2 000
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
KEY FINANCIAL HIGHLIGHTS OF MMK GROUP
• Revenue for Q4 2015 amounted to USD 1,181 mln, down 21.4% q-o-q. The key factors were the seasonal decline in domestic demand and a lower average sales price (down 11.9%).
-23.7%
-0.8%
Coal segment revenue, mln USD Consolidation, mln USD
Steel segment revenue (Russia), mln USD Steel segment revenue (Turkey), mln USD
Source: ММК
69 72 65 65 43 68 53 53
0
500
1 000
1 500
2 000
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
-98 -79 -108 -85 -86 -149 -114 -95
-2 200
-1 700
-1 200
-700
-200
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015
19
1 570
28 11
-2
1 559
36 72 1
-10
490
990
1 490
Steel (Russia) Steel (Turkey) Coal Mining Eliminations
12M 14 12M 15
402
12 16 0
248
6 18 3
-10
90
190
290
390
Steel (Russia) Steel (Turkey) Coal Mining Eliminations
Q3 15 Q4 15
469 478 471 385
311 345 299 294
96 126 169
131
153
178
143 96
0
200
400
600
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
COGS EBITDA/tonne
KEY FINANCIAL HIGHLIGHTS OF MMK GROUP
• A decrease in global steel prices and seasonal weakening of the business on the domestic market in Q4 2015 contributed to decrease in the average sales price and EBITDA per tonne of metal
• EBITDA for the steel segment (Russia) in Q4 2015 declined q-o-q due to a decrease in sales amid lower prices
• EBITDA for the steel segment (Turkey) in FY 2015 amounted to USD 36 mln, up 28.6% y-o-y. This was mainly due to an increase in sales.
• EBITDA of the coal segment in FY 2015 increased more than 6.5x y-o-y driven by an increase in sales prices and a reduction in the company’s costs.
MMK Group’s EBITDA for Q4 2015 amounted to USD
275 mln, down 36.0% q-o-q
MMK Group’s EBITDA for FY 2015 was USD 1,668 mln, up 3.8% y-o-y
565 604
640
516
464
523
EBITDA/t vs metal sale price, USD/t Annual EBITDA dynamics, mln USD
Quarterly EBITDA dynamics, mln USD
442
Source: ММК
390
20
-79
159
26
-150
196
272
78
-125
-170
-70
30
130
230
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
196 191
-3 -1 -1
100
110
120
130
140
150
160
170
180
190
200
Slab cash-cost Q3
2015
Raw materials
price
Raw materials
structure
Other factors Slab cash-cost Q4
2015
ANALYSIS OF KEY FINANCIAL HIGHLIGHTS
Cash-cost of slab dynamics, USD/t Net profit dynamics, mln USD
Analysis of revenue, Q4 2015 q-o-q, mln USD • The key factors impacting revenue in Q4 2015 were a decrease in sales
volumes and steel prices.
• In Q4 2015, the Company’s loss amounted to USD 125 mln. Key factors
included an FX loss of USD 53 million and creation of provisions for
impairment of raw materials and land recultivation totaling USD 165 mln.
Excluding these items, the profit for Q4 2015 was USD 93 mln.
• In FY 2015, profit amounted to USD 421 mln, as compared to loss of USD
44 mln in FY 2014.
• The cash cost of slab decreased by 2.6% in Q4 2015, mainly due to the
decrease in raw material prices.
-2.6%
A loss in Q4 2015 was due to one-off non-cash factors
Source: ММК
1 276 1 179 1 179 1 181 1 502
-61 -131
-33 -46 -51 3
0
500
1 000
1 500
Q3
20
15
Re
ve
nu
e
Pri
ce
cha
ng
e
eff
ect
Pro
du
cts
vo
lum
es
FX
Oth
er
MM
K
fact
ors
Oth
er
"Ste
el
Ru
ssia
"
MM
K
Me
talu
rji +
Co
al…
Q4
20
15
Re
ve
nu
e
21
DEPRECEATION AND CAPEX DYNAMICS
Quarterly CAPEX dynamics, mln USD CAPEX decrease following the end of the investment cycle, mln
USD
Quarterly depreciation dynamics, mln USD • MMK Group’s capex in Q4 2015 amounted to USD 108 mln. The increase
on the previous quarter was due to scheduled maintenance at blast
furnace no. 9.
• In FY 2015 capex decreased by 30.0% y-o-y to USD 348 mln – below the
level of USD 400 mln announced earlier.
• Capex volume in 2016 will remain between USD 0.4 bln and USD 0.5 bln
– fully in line with the long-term development strategy of the Company.
Source: ММК
1 216
2 112
1 613
2 209
1 154
674 622 497
348
0
500
1 000
1 500
2 000
2 500
2007 2008 2009 2010 2011 2012 2013 2014 2015
130 91
130
270
131 150
112 104 64
91 85 108
0
100
200
300
Q1 '13Q2 '13Q3 '13Q4 '13Q1 '14Q2 '14Q3 '14Q4 '14Q1 '15Q2 '15Q3 '15Q4 '15
246 242 237 244
184 202 208 152 123 142
127 143
0
50
100
150
200
250
Q1
'13
Q2
'13
Q3
'13
Q4
'13
Q1
'14
Q2
'14
Q3
'14
Q4
'14
Q1
'15
Q2
'15
Q3
'15
Q4
'15
22
1 668
1 356
1 008
17
329
348
0
500
1 000
1 500
2 000
2 500
EBITDA WoC Net
financial
cost, tax,
etc.
FFO PPE FCF 12M '15
1 262 1 245 1 214
967 1 031
1 203
748 812
0
200
400
600
800
1 000
1 200
1 400
Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15
MMK BENEFITS FROM ONE OF THE HIGHEST FREE CASH FLOW
YIELDS IN THE SECTOR
Net working capital dynamics, mln USD Highest FCF in the Company’s history, mln USD
As of the end of Q4 2015 net working capital / revenue ratio
amounted to 17.2% FCF 1,008 MC as of 31.12.2015 2,867 FCF yield 35.2%
Source: ММК 23
HIGH OPERATIONAL PERFORMANCE SUPPORTS EFFICIENT DECREASE
OF THE DEBT LOAD, mln USD
• MMK Group’s net debt as of the end of 2015 decreased to USD 1,124 mln, down by USD 914 mln compared to 31.12.2014.
• At the end of FY 2015, net debt/EBITDA decreased to 0.67x, the lowest since 2008, but somewhat higher than the debt load level of key peers.
• The Company plans to further reduce the debt load in 2016 by using its cash funds and cash flow from operations.
Source: ММК
4 416
3 880 3 180
2 587
1 847
3 992
3 518
3 026
2 038
1 124
2,99
2,59
2,47
1,27
0,67
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
0
1 000
2 000
3 000
4 000
31.12.2011 31.12.2012 31.12.2013 31.12.2014 31.12.2015
Total Debt Net Debt Net Debt/EBITDA (RHS)
24
369
893
354
1 014
212
0
500
1 000
1 500
2 000
Liquidity sources Short-term Debt
Cash Sort-term deposit Credit lines FMG Stake
321 185
105
96
96
67
8
277
315
56
199
114
8
0
250
500
750
1 000
2016 2017 2018 2019
Q1 Q2 Q3 Q4
344
502
46
132
156
88
3
1
0
250
500
750
31.12.2014 31.12.2015
USD EUR RUB TYR
ММК GROUP’S DEBT PROFILE
High level of liquidity, mln USD Debt maturity schedule, mln USD
Debt and cash funds structure by currency, mln USD
• The share of debt which is denominated in foreign currencies (USD+EUR)
amounted to approx. 85% as of 31.12.2015.
• The volume of cash funds and short-term deposits in the MMK Group’s
balance sheet (USD 723 mln) almost fully covers the short-term debt of MMK
Group.
• The debt maturity schedule does not presume any significant one-time
payments.
893
681
1,949
C&CE and Deposits 723
549
Source: ММК
177
1 515 1 189
518
372
554
286
0
500
1 000
1 500
2 000
2 500
3 000
31.12.2014 31.12.2015
USD EUR RUB
Debt
1,847
2,587
25
STRUCTURE OF OPERATING COSTS AND CASH COSTS
• In Q4 2015, the share of metal scrap (due to a decrease in capacity utilisation
of EAFs) decreased in the structure of OJSC MMK’s material costs.
• The share of coal and pellets decreased due to maintenance at blast-furnace
No.9 which started in December 2015.
• The 12.7% decrease in operating costs in Q4 2015 q-o-q was due to the
decline in production volumes, the ruble weakening and cost-optimization
efforts.
Cost of sales, mln USD OJSC MMK material costs, mln USD
MMK Group operating costs, mln USD
Source: ММК 26
1Q 15 2Q 15 3Q 15 4Q 15
Cost of sales 1,018 1,107 1,036 893
Selling expenses 99 131 111 107
General and administrative expenses 61 56 51 53
Other operating expenses -11 3 8 0
Total operating expenses 1,167 1,297 1,206 1,053
78,2% 69,9% 68,6% 66,1%
12,5% 13,8% 13,2% 14,7%
11,8% 12,6% 11,9% 15,2%
2,5% 2,9%
1,3% 5,5%
-5,0%
0,8% 5,0%
-1,3%
Q1 2015 Q2 2015 Q3 2015 Q4 2015
Other production
costs
Depreciation
Labour costs
Material costs
Change in work in progress
893 1,036
1,018
1,107
12,3% 12,7% 13,1% 14,7%
11,5% 14,7% 14,2% 14,1%
16,5%
24,2% 22,6% 23,0%
19,2% 8,8% 10,8% 6,8%
20,8% 18,8% 17,9% 18,0%
8,2% 9,6% 9,8% 10,7%
8,5% 8,7% 9,1% 10,4% 3,0% 2,5% 2,5% 2,3%
Q1 2015 Q2 2015 Q3 2015 Q4 2015
Power from outside
sources
Fuel from outside
sources
Auxiliary materials
Other main materials
Scrap
Сoals
Iron ore (pellets)
Iron ore (sinter)
770 779 678 617
(2) Supporting documents
9
27
APPENDICES
(1) Latest financials
KEY ISSUES / TRENDS IN GLOBAL METALS&MINING
Source: ММК
Key Questions MMK View
Iron Ore Price Dynamics? Will be on low levels ($40-$50) in mid term period (2-3 years) but will grow up to $55-$65 in a longer run due to market balancing
Global Steel Demand and Overcapacity Forecast?
Global demand for steel is expected to grow by 0.7% y-o-y in 2016 and will be influence by demand coming from China.
Capacity utilizations will remain weak (≈70%) until excessive steel making capacities are removed, first of all in China.
Protectionism Dynamics? Protectionism will be growing in the coming years especially in US and EU regions. Targeted mostly against Chinese steel producers.
Worst Case Scenario for Russian Steel? Simultaneous growth of oil price (≈70 $/t) and rouble strengthening against the background of low iron ore price (≈40$/t) will result in margins compression. Likelihood – 10%.
Political ban on Russian steel exports. 30 mln t of steel under risk (Russian production/consumption is 70 vs. 40 mln t.) Likelihood – 1%
Sources of Value Creation in Steel in Future? Local consolidation to arrange excessive capacities and increase pricing power.
Digital operations to drive costs down.
28
29
1,04
0,55
2003 2014
-47%
LTIFR fell by 47%
MMK HAS ACHIEVED SIGNIFICANT IMPROVEMENTS IN LABOUR
PRODUCTIVITY, SAFETY AND ENVIRONMENTAL IMPACT
36,6
18,1
2000 2015F
-51%
Emission rate fell by 51 %
(kg/t)
33,5
18,5
2000 2015F
-45%
Headcount at OJSC declined by 45%
(ths people)
(incidents
per 1,000
people/y)
Source: ММК
0,7
1,2
2,1
1,6
2,2
1,2
0,7 0,6 0,5
0,35
0,0
0,5
1,0
1,5
2,0
2,5
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
2016 - 2019 New sintering plant
2015-2017
New continuous hot-dip galvanizing unit
2016 - 2018 Oxygen unit
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
2018-2023 New blast-furnace
2018-2021 New coke battery
2016 – 2018 Reconstruction of Mill 2500
2015 - 2017
Metal desulphurization plant
Infrastructure, energy and environmental projects Modernization and launch of new
rolling capacities
Modernization at sintering-coking-
blast furnace production
capacities
Investment programme principles:
• Rigorous approach to projects selection, based
on DCF valuation and with risk assessment
• Balanced costs distribution, with no peaks
• Investment not exceeding operational profit
• Debt/EBITDA ratio of no more than 2x
• Dividend payment of no less that 20% IFRS net
profit
CAPEX of MMK, 2006 - 2025
30
INVESTMENT IN 2016-2025 WILL BE AIMED AT INCREASING EFFICIENCY
AND DECREASING COST OF SALES
Source: ММК
From 2016 till 2025 MMK Group plan to
maintain its CAPEX within the range of 0.4-
0.6 bln $ per year (including maintenance
CAPEX of 0.2-0.25 bln $), subject to FX.
H/r steel
36%
Long steel
products
19% Thick plate
12%
Coated &
Downstream
products
21%
C/r steel
12%
2,1
8,4
3,7
2,6
0
2
4
6
8
10
1996 2000 2004 2008 2012
Domestic market (Russia + CIS) Export
MAXIMISING DOMESTIC SALES SHARE
Source: MMK
MMK has been organically increasing share
of domestic sales, while maintaining a
significant share of export
HVA products,
44% Total: 8,424 ths tonnes
Total: 8,424 ths tonnes
MMK sales by market, mln tonnes MMK domestic sales structure
MMK domestic sales by region, 2015 MMK domestic sales structure by sector, 2015
31
Pipe production
29%
Spot sales in
Russia
26%
Spot sales in CIS
12% Construction
sector
10%
Machine / Railcar
building
8%
Metalware and
semi-integrated
factories
8%
Automobile sector
4%
Ship building
1%
Bridge building
1%
Other
1%
19%
57%
24%
0%
25%
50%
75%
100%
2015
Top 8 Customers Rest of the Domestic Market Export Market
DIVERSIFIED DOMESTIC SALES
Source: MMK
Top eight clients
account for just
19% in MMK sales
Total: 2,134 ths tonnes
The largest external client
accounts for less than 5%
Export sales
Key clients
Minor clients
Shipments to end-customers (85%)
Spot sales (15%)
MMK Steel Trade AG
MMK Trading
100%
Dealers
Regional distribution network
Domestic sales
Top eight clients, ths tonnes Share of top eight clients in shipments, %
32
Chel Pipe; 471
Severski Pipe
Plant (TMK); 284
[ИМЯ
КАТЕГОРИИ]
(TMK);
[ЗНАЧЕНИЕ]
Stalepromyshle
nay Company;
180
Uraltrubprom;
219
Lysvenski Steel
Plant; 199
Naberezhnochel
n. Pipe Plant; 164
Metal Profile
Company; 160
MAINTAINING GOOD PROGRESS ACHIEVED IN SELF-SUFFICIENCY
Source: MMK 33
2007 Self-sufficiency Level, % 2015 Self-sufficiency Level, %
10%
85%
90% 100% 100%
15%
0%
25%
50%
75%
100%
Iron Ore Coal Scrap Electricity
Own Purchased
MMK has been active in terms of increasing the level of vertical integration, particularly in respect of raw materials, since its IPO
• Acquisition of 100% share in “Profit” scrap company in June 2009
• Increase of stake in Belon coal company to 82.6% in October 2009 and to 95% in September 2013
• Increase of in-house production of iron ore to 19% (mining and tailings processing) but the majority of iron ore needs are covered by supplies from
Metalloinvest and ERG (former ENRC) under long-term contracts
• Generation of c. 73% of electricity supplies in 2015
Impressive progress has been achieved over the past 5 years
19%
37%
100%
73%
81%
63%
27%
0%
25%
50%
75%
100%
Iron Ore Coal Scrap Electricity
Own Purchased
1,8 1,7
2,6
3,3
2,5
4,5 4,8
5,1
4,6 4,2
0
1
2
3
4
5
6
2012 2013 2014 2015 2018E
Demand for LDP Demand for MDP
799 843
924 953
0
200
400
600
800
1 000
2012 2013 2014 2015
EMPHASIZED DIRECT EXPOSURE TO NICHE SEGMENTS
Source: MMK
LDP & MDP Demand in Russia, m tonnes Mill 5000 Production Dynamics, th. tonnes
34
MMK Share in Supplies to Russian Pipe Industry in 2015 Product Mix Supplied to Pipe Industry in 2013-2015, th. tonnes
Demand for LDP remains strong
Healthy demand for
thick plate supports Mill
5000 utilization rates +5,5%
+9,6%
MMK was the biggest
supplier to Russian
pipe industry in 2015
+3,1%
1 488
543
100 71
1 764
757
121 105
1 305
820
160 82
0
500
1 000
1 500
HRC Thick Plate (m. 5000) H/r Plate CRC
2013 2014 2015
Import; 6%
MMK; 36%
Others; 58%
DOMESTIC MARKET PRICE PREMIUM DYNAMICS
HRC FOB Black Sea vs. HRC Domestic Price Dynamics, $/t
Source: MetalExpert, AlfaBank estimates, Russian Steel 35
Domestic Price Premium Performance, $/t
728
533
320
749
578
282 200
300
400
500
600
700
800
HRC domestic, $/t HRC FOB Black Sea, $/t
• Historically local producers enjoyed domestic market
premium which recovered shortly after being compressed
due to strong domestic competition (2013) or rouble
devaluation (2014).
• In spite of significant domestic market premium prices for
the clients in Russia were lower, compared to prices on
international markets
Domestic HRC Price, $/t
9
56
30 42
0 19
8 26
-15
22 -2 -3
-40
14 0
-36
0
103
48 68
-60
-40
-20
0
20
40
60
80
100
120
1Q11A 4Q11A 3Q12A 2Q13A 1Q14A 4Q14A 3Q15A
Average price premium for the period
NORTH AMERICA, EUROPE AND SOUTHEAST ASIA ARE THE MAJOR REGIONS THAT HAVE
INTRODUCED TRADE BARRIERS ON RUSSIAN STEEL
Source: ved. gov.ru, Goldman Sachs Global Investment Research 36
Country/Region Products Status Start Date End Date Comments
Indonesia HRC Import duty 27-Dec-13 26-Dec-18 SVST- 5.58%; NLMK - 8.96%, MMK - 20%, others - 20%
USA HRC Import duty 19-Dec-14 16-Jun-16 SVST - 73.59%; others- 184.56%
Thailand HRC Import duty 25-May-15 22-May-20 NLMK - 24.2%; SVST & others- 35.17%
Malaysia HRC Import duty 2-Jul-15 1-Jul-18 Jul-15 - July-16 - 17.4%; July-16 - July-17 - 13.9%, July-17 - July 18 - 10.4%
Canada HRC Import duty 7-Dec-15 n.a. SVST - 15.3%; others - 98.1%
USA CRC Import duty 22-Dec-15 n.a. SVST excluded; NLMK & others - 6.33%
Morocco CRC Import duty 31-Dec-15 31-Dec-18 Jan-16 - Dec-16 - 20%; Jan-17 - Dec-17 - 18%, Jan 18 - Dec 18 - 16%
Turkey HRC Investigation 28-Jan-15 n.a. Potential import duty - 14%
India HRC Investigation 7-Sep-15 n.a. Temporarily import duty implemented from 14-Sep-15
EU CRC Preliminary duty 28-Jan-16 28-Jun-21 6-month period before the duties become final (assuming no objections from Russia)
USA Thick plates Review 1-Oct-14 n.a.
Mexico Flat products Review 7-Sep-15 n.a. Import duty was charged from 22-Sep-10 to 21-Sep-15. Import duties on coiled steel products are steel active
DISCLAIMER
•THIS PRESENTATION IS FOR INFORMATION ONLY.
•THIS PRESENTATION IS FOR DISTRIBUTION IN UK ONLY AMONG THE PEOPLE HAVING PROFESSIONAL SKILL IN THE ISSUES RELATED TO INVESTMENTS WITHIN THE MEANING OF ARTICLE 19(5) OF DIRECTIVE ON FINANCIAL ADVERTISEMENT APPROVED IN 2005 ON THE BASIS OF LAW ON FINANCIAL SERVICES AND MARKETS 2000, OR THOSE PEOPLE, AMONG WHICH IT MAY BE LAWFULLY DISTRIBUTED. THIS INFORMATION IS CONFIDENTIAL AND PROVIDED TO YOU EXCLUSIVELY FOR YOUR REFERENCE. BY ACCEPTANCE OF THIS INFORMATION THE RECIPIENT HEREOF CONFIRMS THAT HE OR SHE IS A SPECIALIST IN THE SPHERE OF INVESTMENTS WITHIN THE MEANING OF ARTICLE 19(5) OF DIRECTIVE ON FINANCIAL ADVERTISEMENT APPROVED IN 2005 ON THE BASIS OF LAW ON FINANCIAL SERVICES AND MARKETS 2000, ACTING IN HIS OR HER NATURE.
•THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER OR A PART THEREOF, OR INVITATION TO SELL OR TO ISSUE, OR TO SUBSCRIBE FOR OR OTHERWISE PURCHASE ANY SHARES IN THE COMPANY OR ANY OTHER SECURITIES AND NOTHING CONTAINED HEREIN SHALL FORM THE BASIS OF ANY CONTRACT OR COMMITMENT WHATSOEVER.
•THE INFORMATION CONTAINED HEREIN IS SUBJECT TO VERIFICATION, COMPLETION AND MAY BE SIGNIFICANTLY CHANGED. NONE OF THE PERSONS IS LIABLE TO UPDATE OR MAINTAIN TOPICALITY OF THE INFORMATION CONTAINED HEREIN, AND THIS INFORMATION AND OPINIONS REFLECTED THEREIN COULD BE CHANGED WITHOUT ANY NOTIFICATION THEREABOUT.
•THIS INFORMATION DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES TO BE SOLD IN RUSSIA, THE UNITED STATES OR ANY OTHER JURISDICTION. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933,AS AMENDED, AND MAY NOT BE OFFERED OR SOLD INTO THE UNITED STATES EXCEPT IN A TRANSACTION REGISTERED UNDER SUCH ACT, OR NOT REQUIRED TO BE REGISTERED THERE UNDER, OR PURSUANT TO AND EXEMPTION FROM REGISTRATION REQUIREMENTS THEREOF. NO OFFERING OF SECURITIES IS BEING MADE INTO THE UNITED STATES. NO SECURITIES WILL BE REGISTERED UNDER THE APPLICABLE SECURITIES ACT OF ANY STATE OR TERRITORIAL ENTITY OF CANADA AND JAPAN. THIS PRESENTATION IS NOT SUBJECT TO MAILING, TRANSFERRING OR OTHER TYPE OF DISTRIBUTION IN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA AND JAPAN, OR TO THE TERRITORY OR FROM THE TERRITORY OF THE SPECIFIED COUNTRIES TO THE NAME OF ANY ANALYST IN THE SPHERE OF SECURITIES OR OTHER PERSON IN ANY OF THE SPECIFIED JURISDICTIONS. YOU AGREE TO AVOID FROM DISTRIBUTION OF ANY REPORT RESULTING FROM THE SURVEY OR SIMILAR DOCUMENTS ON THE TERRITORY OF THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA AND JAPAN, SAVE AS IN ACCORDANCE WITH THE FEDERAL LAWS OF THE UNITED STATES ON SECURITIES INCLUDING SECURITIES ACT, AS WELL AS THE APPLICABLE LAWS OF CANADA, AUSTRALIA AND JAPAN, ACCORDINGLY.
•THIS PRESENTATION INCLUDES THE STATEMENTS RELATED TO THE FUTURE, WHICH REPRODUCE THE INTENTIONS, OPINIONS AND CURRENT EXPECTATIONS OF THE COMPANY. THE STATEMENTS FOR THE FUTURE INCLUDE ANYTHING, WHICH IS NOT A FACT OCCURED. THE COMPANY TRIED TO HIGHLIGHT SUCH STATEMENTS RELATED TO THE FUTURE BY MEANS OF THE WORDS, SUCH AS “MAY”, “WILL”, “SHOULD”, “EXPECT”, “INTEND”, “EVALUATE”, “ASSUME”, “PLAN”, “TO HAVE AN OPINION”, “TRY”, “FORECAST”, “CONTINUE” AND SIMILAR WORDS OR THEIR NEGATIVE FORMS. SUCH STATEMENTS HAD BEEN DONE BASING ON THE ASSUMPTIONS AND ASSESSMENTS, WHICH MAY OCCUR FAULTY, THOUGH THE COMPANY CONSIDERS THEM REASONABLE AT THE CURRENT MOMENT.
•SUCH STATEMENTS RELATED TO THE FUTURE ARE LINKED TO THE RISKS, UNCERTAINTIES AND ASSUMPTIONS, AS WELL AS TO OTHER FACTORS, WHICH MAY LEAD TO THE EVENT THAT ACTUAL RESULTS OF THE COMPANY’S ACTIVITY AND ACTIVITY OF THE MARKETS, ON WHICH IT OPERATES OR INTENDS TO OPERATE IN, THEIR FINANCIAL STATUS, LIQUIDITY, CHARACTERISTICS, PROSPECTS AND ABILITIES COUILD MATERIALLY DIFFER FROM THOSE, WHICH ARE EXPRESSED WITH THE HELP OF SUCH STATEMENTS RELATED TO THE FUTURE. THE IMPORTANT FACTORS, WHICH MAY RESULT IN SUCH DIFFERENCES, INCLUDE, INTER ALIA, CHANGING BUSINESS CONDITIONS AND OTHER MARKET CONDITIONS, COMMON ECONOMIC CONDITIONS IN RUSSIA, EU COUNTRIES, THE UNITED STATES OF AMERICA OR ANYWHERE ELSE, AS WELL AS THE ABILITY OF THE COMPANY TO MEET THE TRENDS IN THE INDUSTRY. THE MATERIAL DIFFERENCE OF THE ACTUAL RESULTS, FEATURES AND ACHIEVEMENTS MAY BE THE RESULT OF ADDITIONAL FACTORS. THE COMPANY AND ALL ITS DIRECTORS, OFFICERS, EMPLOYEES AND ADVISORS HEREWITH STATE THAT THEY ARE NOT OBLIGED TO ISSUE ANY UPDATE OF OR REVISE ANY STATEMENTS RELATED TO THE FUTURE CONTAINED HEREIN, OR DISCLOSE ANY CHANGES IN THE FORECASTS OF THE COMPANY OR EVENTS, CONDITIONS AND CIRCUMSTANCES, WHICH SUCH STATEMENTS RELATED TO THE FUTURE ARE BASED ON, SAVE AS IN THE CASES PROVIDED FOR BY THE APPLICABLE LAWS.
•RECEIPT OF ANY COPY OF THIS INFORMATION TESTIFIES THE ACCEPTANCE OF THE ABOVE LIMITATIONS.
37
