iron and steel industry - invest in russia,...

IRON AND STEEL INDUSTRY:FACTS AND FIGURES

2014

ABOUT THE RUSSIAN DIRECT INVESTMENT FUND

The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.

RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.

RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.

RUSSIA IN THE GLOBAL IRON AND STEEL INDUSTRY

I

6 WWW.INVESTINRUSSIA.COM


RUSSIA HOLDS THIRD PLACE IN THE WORLD IN TERMS OF IRON ORE

* Source: USGS data

1.1

17

1. Australia

16

2. Brazil

5.2

5. India

14

3. Russia

7.2

4. China

World reserves of iron ore2013, bln of tonnes, by iron content*

WWW.RDIF.RU 7

1.2 RUSSIA HOLDS FIFTH PLACE IN THE WORLD IN TERMS OF IRON ORE PRODUCTION VOLUMES

* Source: USGS data

1,320

1. China

530

2. Australia

150

4. India

102

5. Russia

398

3. Brazil

Production of iron ore2013, mln tonnes*



RUSSIA PRODUCES MORE THAN 4% OF THE WORLD’S STEEL

1.3

Global steel production, leading countries2013, mln tonnes*

1102. Japan

7831. China

804. India

873. USA

69

5. Russia

* Source: World Steel Association

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1.4 TOP 4 RUSSIAN COMPANIES PROVIDE MORE THAN 3.5% OF WORLD STEEL PRODUCTION

Steel production by the world’s largest companies2013, mln tonnes*

96.11. ArcelorMittal

Luxembourg

50.12. Nippon Steel &

Sumitomo Metal

CorporationJapan

45.83. Hebei Steel

GroupChina

43.94. Baosteel

GroupChina

39.35. Wuhan

Steel GroupChina

16.1

20. Evraz GroupRussia

15.7

22. SeverstalRussia

15.5

23. NLMKRussia

11.9

29. MMKRussia


14.6Metalloinvest

Russia

1.5FERREXPO

Ukraine

1.3ENRC Kazakhstan

3.0BHP BILLITON

Australia

2.8RIO TINTO Australia

2.2FMG Australia

3.2CLIFFS NATURAL

RESOURCES USA

15.1Vale Brazil

0.8KUMBA

South Africa


METALLOINVEST IS THE SECOND LARGEST COMPANY IN THE WORLD IN TERMS OF ORE RESERVES2013, bln tonnes

1.5

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1.6 CJS TMK: A WORLD LEADER IN STEEL PIPE PRODUCTION

2013, mln tonnes

4.3ТМКRussia

4.0Tianjin Group

China

3.9Tenaris

Argentina

3.0TPCOChina

2.1Valourec

France

2.0Baosteel

China

1.9Sumitomo

Japan

1.75CTRPRussia

1.6OMCRussia

1.4Mittal Steel

UK

RUSSIAN IRON AND STEEL INDUSTRY: CURRENT ISSUES AND TRENDS

II


IRON ORE EXTRACTION IN RUSSIA AND GLOBALLY2009-2013, mln tonnes*

2.1


2,24092

2,590101

2,940100

2,930105

2,950102

in Russia

* Source: USGS data

globally — Russia’s share of global extraction volumes, %%

2013

3.4

2012

3.5

2011

3.4

2010

3.8

2009

4.1

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2.2 FERROUS METAL PRODUCTION IN RUSSIA

2011

2012

2013

67,103

70,591

69,056

Steelmaking2011-2013, thousand tonnes

2011

2012

2013

10,017

9,700

10,050

Steel pipe production2011-2013, thousand tonnes

2011

2012

2013

57,378

58,933

57,907

Flat-rolled ferrous metal production 2011-2013, thousand tonnes

2011

2012

2013

47,970

50,390

50,010

Pig iron production 2011-2013, thousand tonnes


RUSSIAN IRON EXPORTS2009-2013

2.3


253,2 - Russian exports, thousand tonnes 253,2 - Russian exports, USD mln19.6

28,633 29,176 25,795 27,382 25,33511,813 15,390 17,114 16,688 14,564

2010 2012 20132009 2011

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2.4 RUSSIAN EXPORTS OF IRON ORE CONCENTRATES AND BLACK METAL PRODUCTS

2013, thousand tonnes

Russian black metals

iron ore concentrate

products from Russian black metals

Kazakhstan

United Kingdom

South Korea

Japan

Indonesia

Saudi Arabia

Turkey

Netherlands

Finland

Mexico

Mongolia

USA China

996

551

368

31

142

48

6,010

773

75

1,3263,291

1,489

565

1191,255

13,056

894

1,262

268

271

GEOGRAPHY AND CORPORATE STRUCTURE

III


IRON ORE DEPOSITS IN RUSSIA RUSSIAN IRON AND STEEL INDUSTRY: CORPORATE STRUCTURE

GEOGR APHY AND CORPOR ATE STRUCTURE

< 5 5-20 20-70 > 70

3.1

Extraction, mln. tonnes

Belgorod Region

KurskRegion

Murmansk RegionRepublic of Karelia

10

6 1211

5

4

3

2

1 9

78

Kemerovo Region

Krasnoyarsk KraiSverdlovskRegion

Jewish Autonomous Region

Irkutsk Region

Chelyabinsk Region

Republic of Bashkortostan Amur Region

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IRON ORE DEPOSITS IN RUSSIA RUSSIAN IRON AND STEEL INDUSTRY: CORPORATE STRUCTURE

Kursk Region Murmansk Region

Belgorod Region Kemerovo Region

Belgorod Region Republic of Karelia

Belgorod Region Irkutsk Region

Belgorod Region Sverdlovsk Region

Belgorod Region Jewish Autonomous Region

Mikhailovsky GOK Kovdorsky GOK

Lebedinsky GOK Evrazruda

Stoilensky GOK Karelsky Okatysh

Magnitogorsk Iron and Steel Works Korshunovsky GOK

Kombinat KMA ore Kachkanarsky GOK Vanady

Metal-Group OJSC Kimkano-Sutarsky GOK

1 7

4 10

2 8

5 11

3 9

6 12

3.2


RUSSIAN IRON AND STEEL INDUSTRY: LEADING COMPANIES

OJSC Mikhailovskiy GOK OKSC Lebedinskiy GOK

OJSC Karelskiy Okatysh OJSC Olkon

OJSC Evraz KGOK OJSC Evraz VGOK OJSC Evraz Ruda

OJSC Kovdorskiy GOK

OJSC Uralskaya Stal’ Oskolskiy MK

Cherepovetskiy MK

Nizhnetagilskiy MK Kuznetskiy MK Zapadno-Sibirskiy MK

HC METALLOINVEST

OJSK Severstal

Evraz Group S.A.

OJSC MHK Evrohim

1

2

4

3

Mining companies

Mining companies

Mining companies

Mining companies

Refineries

Refineries

Refineries


3.3

WWW.RDIF.RU 23

OJSC Korshunovskiy GOK

OJSC Stoilenskiy GOK

OJSC Kombinat KMA ruda

Chelyabinskiy MK

Novolipetskiy MK

OJSC Tulachermet

Magnitogorsk MK

OJSC Mechel

OJSC NLMK

HK Promyshlenno-Metallurgicheskiy Holding

OLSC MMK

5

6

8

7

Mining companies

Mining companies

Mining companies

Refineries

Refineries

Refineries

Refineries


HC METALLOINVEST: LEADING IRON ORE PRODUCER IN RUSSIA AND CIS


Key financial indicators: RevenueUSD mln

Key financial indicators: EBITDAUSD mln H

C M

ETA

LLO

INV

EST 9,919 8,194 7,324

2011 2012 2013

3,873 2,553 2,240 2011 2012 2013

3.4

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HC METALLOINVEST: KEY PRODUCTION INDICATORS 2011-2013

Steel productionmln tonnes

Iron ore production(Concentrate and sinter ore), mln tonnes

HBI/DRI productionmln tonnes

Pig iron production mln tonnes

2011

2011 2011

2011

2012

2012 2012

2012

2013

2013 2013

201338.4

5.3 4.7

2.2

40.1

5.2 5.8

2.5

39.8

5.2 5.6

2.1


EVRAZ GROUP SA: LEADING STEEL PRODUCER IN RUSSIA2011-2013, thousand tonnes


Steel Railway products Tubular products

2011

2012

2013 16,109

16,773

15,933

2011

2012

2013 927

848

872

2011

2012

2013 1,903

2,055

1,801

3.5

EVR

AZ

GR

OU

P SA

WWW.RDIF.RU 27

Construction products Flat-rolled products Other steel products

EVRAZ GROUP SA: KEY PRODUCTION INDICATORS2011-2013, thousand tonnes

2011

2012

2013 5,186

5,257

5,208

2011

2012

2013 706

823

696

2011

2012

2013 2,108

2,707

2,466


EVRAZ GROUP SA: PEER COMPARSION2013


Rank Company Name Sales USD mln

Market Cap USD mln

Location

9 Kobe Steel Ltd. 17,675 5,827 Japan

10 United States Steel Corp. 17,424 5,214 United States

11 Shanxi Taigang Stainless Steel Co. Ltd. 17,341 4,000 China

12 Gerdau SA 16,878 6,841 Brazil

13 Metalúrgica Gerdau SA 16,878 1,963 Brazil

14 Voestalpine AG 15,460 7,428 Austria

15 EVRAZ Plc 15,264 3,623 Russian Federation

16 Wuhan Iron & Steel Co. Ltd. 14,791 4,490 China

17 Severstal OAO 13,311 7,926 Russian Federation

18 Hyundai Steel Co. 12,817 6,993 Korea Republic

EVR

AZ

GR

OU

P SA

WWW.RDIF.RU 29

EVRAZ GROUP SA: KEY FINANCIAL INDICATORS 2011-2013, USD mln

RevenueUSD mln

EBITDAUSD mln

2011

2012

2013 16,400

14,411

14,726

2011

2012

2013 2,898

1,821

2,012


TMK: LEADING STEEL PIPES MANUFACTURER IN RUSSIA AND GLOBALLY


RevenueUSD mln

Key financial indicators2011-2013

EBITDA USD mln

2011

2012

2013 6,432

6,754

6,688

2011

2012

2013 952

1,047

1,028

3.6

ТМК

WWW.RDIF.RU 31

TMK: KEY PRODUCTION INDICATORS

Salesthousand tonnes

Shipments of tubular productsthousand tonnes

2011

2012

2013 1,8662,422

1,8432,342

1,7432,495

2011

2012

2013 4,313

4,232

4,220

Seamless Welded


ТМК: PEER COMPARSION2013


Rank Company Name Sales USD mln

Market Cap USD mln

Location

5 BlueScope Steel Ltd. 7,528 2,325 Australia

6 Steel Dynamics Inc. 7,372 5,642 United States

7 TMK JSC 6,431 1,385 Russian Federation

8 China Oriental Group Co. Ltd. 5,291 438.5 Hong Kong

9 Bekaert SA 4,378 2,057 Belgium

10 Dongbu Steel Co. Ltd. 3,581 94.8 Korea Republic

11 Ryerson Holding Corp. 3,460 359.4 United States

12 Ezz Steel 3,061 1,292 Egypt

13 Chongqing Iron & Steel Co. Ltd. 2,857 2,201 China

14 Lingyuan Iron & Steel Co. Ltd. 2,584 572.3 China

ТМК

WWW.RDIF.RU 33

NOTES


INVESTIN RUSSIA

RDIF PRESENTS

PLATFORMINVEST IN RUSSIA

WWW.RDIF.RU 35

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