0SJQ Severstal' Pao

PAO Severstal (SVST) 
Severstal 2021 capital investment programme 
04-Feb-2021 / 10:03 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 2021 capital investment programme 
February 4, 2021, Moscow - PAO Severstal ("Severstal"; "the Company"), one of the world's leading vertically integrated 
steel and steel-related mining companies, today announces its capital investment programme for 2021. 
 
Severstal plans to invest approximately USD1.35 billion in 2021, focusing on a number of major projects in its Russian 
Steel and Resources divisions, as well as on key focus areas of the Company's strategy, namely, excellent customer 
experience, cost leadership and new opportunities. 
 
In 2021, Severstal will invest USD453 million in the maintenance of its existing facilities and USD42 mln in industrial 
safety system improvements, labour protection and environmental projects. 
 
USD124 million will be allocated towards investments in IT and digital projects, including the ongoing transition of the 
Company's divisions to a new generation of the SAP ERP system - the SAP S / 4 HANA solution, developing e-commerce, the 
automation of production, supply chain management and the implementation of digital tools. 
 
Russian Steel division 
Investments in Severstal's Russian Steel division in 2021 will amount to approximately USD785 million, of which USD469 
million will be directed to development projects. The division's largest projects are the second stage of the 
construction of coke oven battery No. 11 (first commissioned at the end of 2020, with the full capacity expected to be 
completed in 2022), bringing blast furnace No. 3 to design capacity, and also investment in the long-range mill and the 
heating furnaces. 
 
Resources division 
Investments in the Company's resources enterprises in 2021 will amount to approximately USD524 million, USD267 million of 
which will be used to develop production. One of the most important investment areas for the Company this year will be 
the main phase of construction of the Cycle-flow technology complex at Karelsky Okatysh. CPT is a modern technology 
used for transporting rock mass by dump truck, which significantly reduces emissions from the operation of quarry 
equipment. Severstal will continue its programme to increase production at the Yakovlevsky mine, which will increase 
the Company's iron ore production to 5 million tons by 2023. Other investment priorities for Severstal's resources 
assets include increasing production volumes at Vorkutaugol and the development of the Pechegubsky field via the Olkon 
mine. 
 
Alexey Kulichenko, CFO of Severstal, commented: 
"Severstal continues to implement its large-scale transformation programme, which has enabled us to maintain our global 
efficiency leadership despite the crisis in 2020. As usual, in 2021 the majority of investment will be focused on 
development projects that will help us to achieve a significant, long-term advantage over our peers in the cost of 
basic products, to provide customers with unique solutions and products of guaranteed high quality, and to increase our 
steel production volumes and strengthen Severstal's vertical integration. Blast furnace No. 3 and coke oven No. 11 will 
have a significant impact on reducing the cost of steel production starting this year, and this will help to create 
additional value for shareholders. Total investments in 2021 will be comparable to investments in 2020." 
 
All of these amounts are subject to adjustments dependent on FX changes. The majority of the Company's expenditure in 
2021 will be in rubles. 
 
For further information, please contact: 
 
Severstal Investor Relations 
Evgeny Belov 
T: +7 (495) 926-77-66 
evgenii.belov@severstal.com 
 
 
Severstal Public Relations 
Anastasia Mishanina 
T: +7 (495) 926-77-66 
anastasia.mishanina@severstal.com 
 
 
*** 
P?? Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets 
in Russia, Latvia and Poland. Severstal is listed on MOEX and the company's GDRs are traded on the LSE. Severstal 
reported revenue of USD6,870 million and EBITDA of USD2,422 million in 2020. Severstal's crude steel production in 2020 
reached 11.3 million tonnes. www.severstal.com 
 
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ISIN:          US8181503025 
Category Code: UPD 
TIDM:          SVST 
LEI Code:      213800OKDPTV6K4ONO53 
Sequence No.:  92883 
EQS News ID:   1165695 
 
End of Announcement  EQS News Service 
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February 04, 2021 02:04 ET (07:04 GMT)

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