Q3 EBITDA increased by 6% qoq to $508 million; EBITDA margin grew to 25%. Free cash flow increased by 100% qoq to $372 million. Net profit for the period increased by 153% qoq to $410 million

9M 2015 highlights:

• Group sales increased by 7% yoy to 12.1 m t
• Revenue was $6.371 billion (-21% yoy) due to lower steel prices
• EBITDA decreased by 7% yoy to $1.628 billion
• Effect from operation efficiency programmes totaled $163 million
• EBITDA margin expanded to 26% (+4 p.p. yoy)
• Capex totalled $445 million (flat yoy)
• Free cash flow decreased by 6% yoy to $886 billion
• Net debt declined by 41% yoy to $1.071 billion
• Net debt/12M EBITDA was 0.5х
• Net profit increased by 32% yoy to $891 million

Q3 2015 highlights:

• Sales increased by 3% qoq to 4.1 m t (+15% yoy)
• Revenue totalled $2,016 million (-6% qoq and -23% yoy)
• EBITDA increased by 6% qoq to $508 million (-25% yoy)
• EBITDA margin was 25% (+3 p.p. qoq and -1 p.p. yoy)
• Capex decreased to $145 million (-15% qoq and -13% yoy)
• Free cash flow doubled qoq to $372 million (+75% yoy)
• Net profit increased to $410 million (+153% qoq and +27% yoy)

Outlook

• In Q4 2015 on the back of seasonally slowdown in steel demand and weak prices, we anticipate decline in operating and financial results in comparison with Q3 2015.

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