General questions:
1. What is OJSC Novolipetsk Steel (NLMK)?
2. What is NLMK’s strategy?
3. What are NLMK’s competitive strengths?
4. What are NLMK’s recent acquisitions and divestitures?
5. What is NLMK’s sales structure?
6. How can I get a copy of NLMK’s annual report?
7. How can I contact the Investor Relations (IR) Service?
8. What is NLMK’s primary Investor Relations (IR) contact?
Shares and dividends questions:
1. On which stock exchanges are NLMK’s shares traded?
2. When did NLMK list on the London Stock Exchange (LSE)?
3. What is NLMK’s ticker symbol?
4. What is the free float of NLMK?
5. What are Depositary Shares (Depositary Receipts)?
6. Who is the depositary agent for NLMK’s DR programme?
7. What is the NLMK’s shareholding structure?
8. What is NLMK’s dividend policy?
9. When was the last dividend payment?
General questions:
1. What is Novolipetsk Steel (NLMK)?
Novolipetsk Steel (NLMK) is one of the world’s leading steel producers and one of the four largest steel producers in Russia. An integrated steel-making company, NLMK produces slabs, hot-rolled, cold-rolled, galvanized, pre-painted and transformer and dynamo steel as well as long products. The Company produced c.10.5 million tonnes of crude steel in 2008.
NLMK’s strategy is based on maintaining competitive advantage in low-cost production, advancing its strategy of increased vertical integration, implementing further technical upgrading of production assets, strengthening the company’s market leadership in flat steel products in its core markets, expanding sales of high-value-added products and pursuing strategic acquisition opportunities.
3. What are NLMK’s competitive strengths?
NLMK benefits from the following principal competitive strengths:
• Leading Russian steel producer with a strong export position
• World class assets with a competitive cost production structure
• Substantial vertical integration with access to raw materials and transport infrastructure
• Among the world’s most profitable and cash generative steel companies
• Diversified portfolio by product and geography
• Strong balance sheet and cash flow generation providing financial flexibility
• Strong platform for growth
• Experienced management team with proven track record
• Commitment to environmental standards
4. What are NLMK’s recent acquisitions and divestitures?
The active management of our asset portfolio is an integral part of NLMK’s growth strategy. In October 2008, NLMK acquired a 100% stake in Beta Steel, a US-based hot-rolled steel producer, for an all cash consideration of USD350 million, on a debt free, cash free basis.
In January 2009, NLMK completed the disposal of its 69.41% share in OJSC Tuapse Seaport (TMTP) to Universal Cargo Logistics Holding B.V. (UCLH), for a consideration of approximately USD254 million.
5. What is NLMK’s sales structure?
In 2008, NLMK’s products were sold in 70 countries in Europe (including CIS countries), North America, Asia, Africa and the Middle East, as well as to a range of industrial sectors in Russia. Exports accounted for 61% of our sales revenue and 64% of total volumes sold.
NLMK also enjoyed the largest market share of cold-rolled coil, pre-painted steel and electrical steel sales in Russia in 2008. The company is the third-largest supplier in Russia, in terms of volume, of hot-rolled coil and galvanized rolled coil.
6. How can I get a copy of NLMK’s annual report?
Please visit Annual reports to download NLMK’s annual reports.
7. How can I contact the Investor Relations (IR) Service
Please see the contacts page in Investor Relations
8. What is NLMK’s primary Investor Relations (IR) contact?
Anton Bazulev (Director, Investor and Government Relations, Head of NLMK’s Moscow office)
Shares and dividends questions:
1. On which stock exchanges are NLMK’s shares traded?
NLMK’s GDSs are traded on the London Stock Exchange (LSE). NLMK’s ordinary shares are traded on the RTS (Russian Trading System) Stock Exchange. In August 2006 NLMK listed its ordinary shares on the MICEX (Moscow Interbank Currency Exchange) Stock Exchange (MICEX Quotation List “B”).
2. When did NLMK list on the London Stock Exchange (LSE)?
Admission and commencement of unconditional dealings on the London Stock Exchange took place on December 15, 2005.
3. What is NLMK’s ticker symbol?
NLMK's ordinary shares are listed under the tickers "NLMK" on both the "B" list of the RTS (Russian Trading System) Stock Exchange and on the MICEX (Moscow Interbank Currency Exchange) Quotation List “B”. The GDSs are listed on the London Stock Exchange under the ticker "NLMK" as well.
4. What is the free float of NLMK?
The free float of NLMK’s ordinary shares listed on the RTS (Russian Trading System) Stock Exchange is 4.63% of the Company’s existing issued ordinary share capital. The free float of Global Depositary Shares (1 GDS = 10 ordinary shares) listed on the London Stock Exchange is 8.26% of the Company’s existing issued ordinary share capital.
5. What are Depositary Shares (Depositary Receipts)?
Global Depository Shares (Depositary Receipts) are receipts evidencing ownership in the underlying shares of a foreign company. Each NLMK Global Depositary Share (GDS) represents 10 ordinary shares.
6. Who is the depositary agent for NLMK’s DR programme?
Deutsche Bank Trust Company Americas.
7. What is the NLMK’s shareholding structure?
The Chairman of the Board, Vladimir Lisin, is the controlling shareholder of NLMK. Mr Lisin beneficially owns more than 80% of the Company’s outstanding shares.
8. What is NLMK’s dividend policy?
NLMK's dividend policy provides for a minimum annual dividend payments of 20% of US GAAP net income and targets an average dividend payment during a five-year period of 30% of US GAAP net income. For more information please see the dividends table.
9. When was the last dividend payment?
The annual general meeting of shareholders approved dividends payment in the amount of RUR0.22 per share for the full year of 2009. Dividends on GDSs will have been transferred to the depositary bank for distribution to the GDS holders on July 26, 2010.
