0SJQ Severstal' Pao

PAO Severstal (SVST) PAO Severstal: Severstal announces 2022 capital investment programme 18-Feb-2022 / 10:30 MSK Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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Severstal announces 2022 capital investment programme

Severstal plans to invest USD1,600 mln in 2022, focusing on a key areas of the Company's strategy, namely, excellent customer experience, cost leadership and new opportunities. It implies ?. 38% yoy growth comparing to 2021 (CAPEX in 2021 was USD1,157 mln).

Thus, new Severstal's 2022 capital investment programme includes:

-- USD878 mln to be invested in various development projects (including USD336 mln to projects that will alsoimprove environmental and climate protection performance);

-- USD356 mln in maintenance;

-- USD151 mln in capital overburden;

-- USD137 mln will be allocated to investments in IT and digital projects, including completion of SAP S/4HANA project, the automation of supply chain operations and production process as well as to a wide list of ITprojects aimed at quality improvement;

-- USD78 mln will be spent to industrial safety system improvements such as reconstruction of the fire safetysystem in the hot-rolling shop in line with the requirements of the best available technologies; and ecology andenvironmental projects such as water treatment, automatic atmospheric emissions monitoring; installation ofelectrofilters in sinter and crude steel production;

We increased our guidance for total investments in 2022 comparing to last forecast published at the Capital Markets Day by USD300 mln. Main factors of growth:

-- -USD101 mln: Vorkutaugol disposal

-- +USD150 mln: new projects;

-- +USD115 mln: unspent CAPEX planned to 2021, reallocated to 2022 financial year;

-- +USD27 mln: partially rescheduling of preparatory works for BF5 modernization;

-- +USD20 mln: increase in capital overburden.

-- +USD89 mln: costs increase for previously guided projects due to inflation and other factors

More details will be published at our Capital Markets in June 2022.

All of these amounts are subject to adjustments dependent on FX changes. The majority of the Company's expenditure in 2022 will be in rubles.

Russian Steel division

Investments in Severstal's Russian Steel division in 2022 will totally amount to USD1,123 mln: USD675 mln will be allocated to development projects and USD246 mln to maintenance. The most important projects are redesigned 13 mln tonnes crude steel capacities project with new technical solutions, long mill 170, 100 MW combined heat and power plant with electric air-blowing station, modernization of crude benzol rectification department, technical modernization of Hot-dip aluminizing continuous line, as well as preparatory works for BF5 modernization.

Resources division

Investments in 2022 will amount to USD503 mln: USD203 mln of which will be used to develop production. One of the most important development projects will be the main phase of construction of the Cyclic-flow technology complex at Karelsky Okatysh, development of the Pechegubsky field at the Olkon, Yakovlevsky mine and Karelsky Okatysh ramp up.

Alexey Kulichenko, CFO of Severstal, commented:

"We continue to implement our large-scale transformation programme, to ensure our global leadership in the cost of production, create a unique solutions for our customers and improve quality of our products. CAPEX programme 2022 includes very important development projects that will help us to increase our steel production volumes and strengthen Severstal's position in a global market. As a result of continuous monitoring of new opportunities we added some new projects which will help us to increase steel production volumes and improve our environmental performance."

For further information, please contact:

Severstal Investor Relations

Vladimir Zaluzhsky, Nikita Klimantov

T: +7 (495) 926-77-66

vladimir.zaluzhsky@severstal.com; na.klimantov@severstal.com

Severstal Public Relations

Anastasia Mishanina

T: +7 (495) 926-77-66

anastasia.mishanina@severstal.com

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ISIN:           US8181503025 
Category Code:  MSCL 
TIDM:           SVST 
LEI Code:       213800OKDPTV6K4ONO53 
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State 
Sequence No.:   143823 
EQS News ID:    1282849 
 
End of Announcement  EQS News Service 
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February 18, 2022 02:30 ET (07:30 GMT)

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