On September 2, 2018, Severstal PJSC announced the results of voting regarding the issues presented on the agenda of the regular meeting of shareholders.

Based on the results of the regular meeting of shareholders, a decision was made to pay dividends to shareholders at the end of the first half of 2018, the amount of which was 19 rubles 66 kopecks per share.

The list of shareholders to receive dividend payments was compiled as of September 16. 2018.

About company

Public Joint Stock Company Severstal is a company that today ranks second in size among industry enterprises located in Russia.

The company's financial assets are located in several countries around the world. PJSC Severstal consists of two main subordinate enterprises, namely: Severstal Resources and Severstal Russian Steel.

The resource produces iron ore and coking coal. "Russian Steel" is a manufacturer of a finished product. Severstal is a strong competitor, playing a leading role in the financial market among enterprises in the Russian steel industry.

The Severstal group of enterprises includes the Cherepovets Metallurgical Plant. It was in Cherepovets, in February 1959, that the construction of an integrated metallurgical production was completed - the first rolled steel.

The Severstal group of enterprises has large financial resources located in the deposit accounts of Sberbank OJSC. 2015 was a very successful year for the company, net profit amounted to $562 million. USA.

In addition, the company increased its free flow of funds to $1.55 billion. USA. Dividends for 2015 were paid based on the results of each quarter. The cost of dividends according to average indicators amounted to 50% of the enterprise’s net income.

Forecast and news

The level of steel prices in 2018 in Russia will be negatively affected due to dubious growth prospects in the Chinese economy and a decrease in steel consumption in the world as a whole.

In the first months of 2018, steel sales decreased, but already in March the situation radically changed for the better - compared to February 2018, the cost of hot-rolled coil increased by 40 percent.

February 2018, an accident occurred at the Severnaya mine, which belongs to the company. As a result of eliminating the accident, the Company flooded the mine with water until mid-summer 2018. The question regarding the timing of completion of restoration work at the damaged mine remains open today.

Due to the fact that the situation in the domestic and global sales markets today is established as difficult, Severstal is using all possible strategic moves, focusing on the production efficiency of enterprises, optimizing available investments, and improving the quality of service and the quality of the finished product.

Thus, it is still guaranteed that the company's shareholder value will increase, based on its financial stability.

In general, the beginning of 2018 confirmed the success of Severstal’s use of its own business model and its advantages over similar companies not only in the Russian but also in the world markets.

The company's management was able to successfully apply the advantages of the strategic location of production assets, achieving efficiency by moving sales from the domestic to the foreign market. This in turn neutralized and reduced the undesirable impact of the lack of demand for the steel product this year in Russia.

In this regard, the Severstal group of enterprises did not lower the EBITDA profitability bar, maintaining one of the highest levels in the industry.

Thanks to the repair of a four-stand cold rolling mill, Severstal was noted in 2018 for increasing its finished product inventories. At the same time, accounts receivable increased as a result of an increase in the share of exports in the sales structure.

The amount of free cash flow for the reporting period was negatively affected by the increase in net capital turnover, coupled with the low level of financial indicators.

Seasonal growth in the second quarter of demand in the domestic and world markets caused an increase in the level of sales of the product, which directly increased by 14% to 2.8 million tons. In this regard, the number of steel sales on the domestic market increased.

Due to the close location of the enterprise's assets to the central export market, it became possible to reorient part of external sales to Russian markets.

The above-mentioned events served as a change and were reflected in the financial performance, comparing them with the last quarter of the year. Severostal's income rose by 44.0%, EBITDA rose by 92.7%. In addition, EBITDA margin remained at a high level among global steel companies, increasing its indicator by 8.4 percentage points. for the quarter to 33.3%.

Video: Earnings of RUB 12.63 per share

Severstal dividends for 9 months of 2018

The financial stability of the enterprise enabled the Board of Directors of PJSC Severstal to present a decent value of the dividend for the first quarter of the year, which amounted to 8.25 rubles. for one banknote. Net debt/EBITDA at the end of the first quarter of this year increased to only 0.5x, which did not affect the stable financial position of Severstal.

The net debt/EBITDA ratio decreased to 0.3x in the second quarter. PJSC Severstal prolonged the search for financial balancing, by maintaining a small amount of debt on the one hand, and concentrating efforts on raising the value of shares to the maximum on the other.

In this connection, the opportunity arose to present dividends in the second quarter in the amount of 19.66 rubles. per share.

PJSC Severstal Dividends for 9 months of 2018

“Regulations on the rules for the transfer of funds” (approved by the Bank of Russia on June 19, 2012 N 383-P) establishes the rules for the transfer of funds by the Bank of Russia and credit institutions.
Read the article.

More details about money transfers from a Beeline phone to a card.

About dividend policy

Dividend policy is, first of all, the LLC's policy in the area of ​​profit realization, which directly determines the order in which the company will pay dividends to shareholders: pay one payment, or by reinvesting profits to generate income with the payment of dividends in a larger amount.

In the fall of 2014, the Board of Directors of PJSC Severstal approved the Regulations on Dividend Policy.

General provisions

The regulations on the dividend policy of PJSC Severstal are drawn up in accordance with the law, the company's Charter, as well as internal documentation.

This Regulation highlights the goal of Severstal's strategy in the process of determining the amount of dividends on shares and the conditions for their payment, taking into account maintaining the equality of interests of the company and its shareholders, as well as raising the level of the company's investments.

The Regulations establish the company's fundamental principles regarding dividend payments, as well as the conditions and procedure for making payments.

Principles and Goals

According to the “Regulations,” Severstal assumes responsibility and issues dividends annually, and, if possible, pays them intermediately throughout the year.

Jumps in the size of payments depend on the amount of net income and the power of financial turnover in the enterprise.

Basic provisions

What are dividends? Dividends are considered to be a part of the company's net income, which is subject to subsequent distribution proportionally among shareholders depending on the number of their securities available. Decisions are made regarding dividend payments on all types of shares.

An appropriate decision is made to refuse dividend payments. The company pays declared dividends without fail and is responsible to the persons who have such rights. If this clause is violated, Russian legislation provides for the payment of only dividends that have been declared.

Conditions and grounds for payment

Severstal intends to recommend dividends whose average value is 50% of the net income of the Severstal group of enterprises. According to the data specified in the financial report of Severstal, for a certain reporting period and with the condition that the calculation of the coefficient according to the company’s reports will be less than 1.0x.

And also on the condition that if the net debt/EBITDA ratio increases to 1.0x, Severstal changes its dividend policy with the possible payment of dividends. Where their average amount will correspond to 25% of the amount of net income that is indicated in the statements of a group of enterprises for a certain period, until the net debt/EBITDA ratio reaches 1.0x or less.

Given the reduction in the level of capital expenditure requirements, in the long term the company intends to achieve an increase in the amount of dividend payments.

The procedure for making a decision on payment

The issue of payment of dividends is resolved at a meeting of shareholders in accordance with the requirements of the Law of the Russian Federation “On Joint-Stock Companies”.

This document fixes the amount of dividend payments in accordance with the categories and types of shares, forms and procedures of payment, and terms. The company offers a list of persons who are entitled to receive a share of the company's profits.

Sizing

The issue of paying dividends for 1 quarter, half a year and nine months is being resolved, after the end of the corresponding period.

List of persons eligible to receive

Which shareholder has the rights to receive dividend payments? The right to receive these payments is vested in all shareholders who are included in the register on a certain date of approval of the list of persons entitled to payments. The specified list is written on a certain date in accordance with the law.

Payment procedure and terms

Declared dividends are paid in cash equivalent, except in situations where the general meeting of shareholders decides to pay dividends in a non-financial form.

The timing of payment of dividends is carried out in accordance with the laws of Russia. Dividends are paid on any day throughout the entire specified period of their payment.

Informing shareholders

The company informs shareholders about the amount of interim payments, the time and procedure for payment options that are determined by the company's charter to notify shareholders of the convening of the next meeting. It must also inform shareholders about the amount of annual dividends and the procedure for their payment.

When holding meetings, the results of voting and decisions, if possible, are spoken at the meeting during which voting took place or are told to shareholders after closing in the options that are established by the charter for reporting to shareholders about the meeting no later than 45 days from the date of signing the minutes of the commission.

Final provisions

The regulations on the dividend policy are subject to change by adoption of an appropriate decision by the Board of Directors. If the provisions of this Regulation violate the requirements of current legislation, the general rules and laws of the country apply.

A dividend is a share of net income, which is distributed among shareholders in proportion to the shares they own. Severstal ranks second in size in the steel industry in the Russian Federation, having large financial resources located in the deposit accounts of Sberbank OJSC.

Cooperation with Severstal could be a profitable investment, given the level of its financial stability in 2018.

How does PAO Severstal inform shareholders about holding general meetings of shareholders?

In accordance with the Charter of PJSC Severstal, notification of a general meeting of shareholders is carried out no later than 30 days before the date of its holding. If the agenda of the extraordinary general meeting contains the issue of electing members of the Board of Directors of the Company - no later than 50 days before the date of its holding.

Within the specified time frame, a notice of the general meeting of shareholders is published on the Company’s website at: .

How does PAO Severstal inform shareholders about decisions made at meetings?

In accordance with the requirements of the current legislation of the Russian Federation, decisions adopted by the general meeting of shareholders, as well as voting results, can be announced at the general meeting of shareholders during which voting was held, and must also be brought to the attention of shareholders in the form of a report on the voting results.

The report on the voting results is published on the Company's website in the General Meeting of Shareholders section at the address: no later than 4 business days after the closing date of the General Meeting of Shareholders or the deadline for accepting voting ballots when holding a General Meeting of Shareholders in the form of absentee voting.

In addition, the Company discloses information about decisions adopted by the general meeting of shareholders in the form of a notice of a material fact in the manner and within the time limits provided for by the current legislation of the Russian Federation.

When does the company hold the annual general meeting of shareholders of PJSC Severstal?

In accordance with the Federal Law “On Joint Stock Companies” and the Charter of PJSC Severstal, the annual general meeting of shareholders of the Company is held no earlier than two months and no later than six months after the end of the financial year.

When does Severstal PJSC hold an extraordinary general meeting of shareholders?

In accordance with the Federal Law “On Joint Stock Companies” and the Charter of PJSC Severstal, an extraordinary general meeting of shareholders of PJSC Severstal is held by decision of the Board of Directors on the basis of:

• initiatives of the Company's Board of Directors,
• requirements of the Company's audit commission,
• requirements of the Company's auditor,
• demands of shareholders (shareholders) of the Company who are owners of at least 10% of the voting shares of the Company as of the date of presentation of the request to hold an extraordinary general meeting of shareholders.

Who has the right to vote at the shareholders meeting?

The general meeting may be attended by persons included in the list of persons entitled to participate in the general meeting, persons to whom the rights of these persons to shares have been transferred by inheritance or reorganization, or their representatives acting on the basis of a power of attorney for voting or the law.

The list of persons entitled to participate in the general meeting of shareholders is compiled on the basis of data from the register of shareholders of the Company.

The date of compilation of the list of persons entitled to participate in the general meeting of shareholders (the “closing of the register” date) is determined by the Board of Directors of the Company. The date for compiling the list of persons entitled to participate in the general meeting of shareholders cannot be set earlier than the date of the decision to hold a general meeting of shareholders and more than 50 days in advance, and if the proposed agenda for the extraordinary general meeting of shareholders contains the issue of electing members of the Board of Directors - more than 80 days before the date of the general meeting of shareholders.

Voting at the general meeting of shareholders is carried out according to the principle “one voting share of the Company - one vote,” with the exception of cases of cumulative voting for the election of members of the Board of Directors of the Company. In cumulative voting, the number of votes belonging to each shareholder is multiplied by the number of persons who must be elected to the Board of Directors of the Company, and the shareholder has the right to cast the votes received in this way entirely for one candidate or distribute them between two or more candidates. The candidates who receive the largest number of votes are considered elected to the Board of Directors.

How can a shareholder participate in a shareholders meeting?

To participate in the meeting, the shareholder must fill out the voting ballots sent to him and send them to the address: 162608, Russian Federation, Vologda Region, Cherepovets, Mira Street, 30, building of the central entrance of Severstal PJSC, office. 101, or personally (or through your representative acting on the basis of a power of attorney executed in accordance with current legislation) to take part in the meeting on the day of its holding, in the case of a meeting of shareholders in the form of a meeting (in person). When holding a meeting of shareholders in the form of absentee voting (absentee form), the shareholder sends the completed ballot to the Company at the above address.

LLC VTB Capital Broker (VTBC Broker), License of a professional participant in the securities market for brokerage activities No. 045-12014-100000, issued: February 10, 2009, License of a professional participant in the securities market for dealer activities No. 045-12021-010000 , issued: February 10, 2009, License of a professional participant in the securities market to carry out depository activities No. 045-12027-000100, issued: February 10, 2009

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Details of corporate action
Reference corporate action	270085
Corporate action type code	MEET
Type of corporate action	Annual General Meeting of Shareholders
CD date (actual)	09 June 2017 12:00
Recording date	May 15, 2017
Form of the meeting	Full-time
Venue of the meeting	Russian Federation, Vologda region, Cherepovets, st. Stalevaro v, no. 41, Palace of Metallurgists.

Information about securities
Reference CD for a security	Issuer	State registration number of the issue	Date of state registration of the issue	Category	Depository issue code	ISIN	Registrar
270085X5995	Public Joint Stock Company "Severstal"	1-02-00143-A	November 30, 2004	ordinary shares	RU0009046510	RU0009046510	LLC "PARTNER"

Related corporate actions
KD type code	Reference CD
DVCA	270087
DVCA	282155

Voting results
Draft decision number: 1.1	Elect the Board of Directors of PJSC Severstal in the following composition: 1. Mordashov Alexey Alexandrovich 2. Kulichenko Alexey Gennadievich 3. Lukin Vladimir Andreevich 4. Mityukov Andrey Alekseevich 5. Shevelev Alexander Anatolyevich 6. Philip John Dayer 7. David Alun Bowen (David Alin Bowen) 8.Veikko Sakari Tamminen (Veikko Sakari Tamminen) 9.Mau Vladimir Alexandrovich 10.Auzan Alexander Alexandrovich	Accepted: Yes
		For: 7177475234 Abstained: 84900 Did not participate: 10922110
Draft decision number: 1.1.1	Mordashov Alexey Alexandrovich	Accepted: Yes
		For: 675003399
Draft decision number: 1.1.2	Kulichenko Alexey Gennadievich	Accepted: Yes
		For: 668714408
Draft decision number: 1.1.3	Lukin Vladimir Andreevich	Accepted: Yes
		For: 668746732
Draft decision number: 1.1.4	Mityukov Andrey Alekseevich	Accepted: Yes
		For: 667324951
Draft decision number: 1.1.5	Shevelev Alexander Anatolevich	Accepted: Yes
		For: 668675929
Draft decision number: 1.1.6	Philip John Dayer (Philip John Dayer)	Accepted: Yes
		For: 768159340
Draft decision number: 1.1.7	David Alun Bowen	Accepted: Yes
		For: 769040558
Draft decision number: 1.1.8	Veikko Sakari Tamminen	Accepted: Yes
		For: 766652777
Draft decision number: 1.1.9	Mau Vladimir Alexandrovich	Accepted: Yes
		For: 749591719
Draft decision number: 1.1.10	Auzan Alexander Alexandrovich	Accepted: Yes
		For: 771472006
Draft decision number: 2.1	Approve the annual report and annual accounting (financial) statements of PJSC Severstal for 2016.	Accepted: Yes
		For: 717789677 Abstained: 38365 Did not participate: 1019783
Draft decision number: 3.1	a) Distribute the profit of PJSC Severstal based on the results of 2016. Pay (declare) dividends based on the results of 2016 in the amount of 27 rubles 73 kopecks per ordinary registered share. Form of dividend payment: cash. Payment of dividends in cash is carried out by bank transfer by the company. Set June 20, 2017 as the date on which persons entitled to receive dividends based on the results of 2016 are determined. b) Profit based on the results of 2016 that is not used to pay dividends based on the results of 2016 should not be distributed.	Accepted: Yes
		For: 717819169 Abstained: 3325 Did not participate: 1025331
Draft decision number: 4.1	Pay (declare) dividends based on the results of the first quarter of 2017 in the amount of 24 rubles 44 kopecks per ordinary registered share. Form of dividend payment: cash. Payment of dividends in cash is carried out by bank transfer by the company. Set June 20, 2017 as the date on which persons entitled to receive dividends based on the results of the first quarter of 2017 are determined.	Accepted: Yes
		For: 717826437 Abstained: 1600 Did not participate: 1019788
Draft decision number: 5.1	Elect the audit commission of PJSC Severstal in the following composition: 1. Lavrov Nikolay Viktorovich 2. Antonov Roman Ivanovich 3. Guseva Svetlana Viktorovna - Lavrov Nikolay Viktorovich	Accepted: Yes
		For: 717040192 Against: 703808 Abstained: 57768 Did not participate: 1035507
Draft decision number: 5.2	Elect the audit commission of PJSC Severstal in the following composition: 1. Lavrov Nikolay Viktorovich 2. Antonov Roman Ivanovich 3. Guseva Svetlana Viktorovna - Antonov Roman Ivanovich	Accepted: Yes
		For: 717031102 Against: 707208 Abstained: 51018 Did not participate: 1047947
Draft decision number: 5.3	Elect the audit commission of PJSC Severstal in the following composition: 1. Lavrov Nikolay Viktorovich 2. Antonov Roman Ivanovich 3. Guseva Svetlana Viktorovna - Guseva Svetlana Viktorovna	Accepted: Yes
		For: 717019177 Against: 703808 Abstained: 49643 Did not participate: 1064647
Draft decision number: 6.1	Approve JSC KPMG (TIN: 7702019950. Main registration number of the entry in the state register of auditors and audit organizations: 11603053203) as the auditor of PJSC Severstal.	Accepted: Yes
		For: 710630893 Against: 1510731 Abstain: 5648729 Did not participate: 1046922
Draft decision number: 7.1	approve a transaction (several interrelated transactions) in which there is an interest, between PJSC Severstal (Client) and PJSC Sberbank (Bank) within the framework of an agreement on the general conditions for attracting the Client’s funds into deposits through the exchange of confirmations within the total amount of no more than 130,000,000,000 (one hundred thirty billion) rubles (or the equivalent in another currency) of one-time placed funds. The interest rate is set for each transaction separately by agreement of the parties, based on market conditions at the time the transaction is concluded. Payment of interest on transactions is made on the expiration date of the transaction. The agreement is valid for an unlimited period.	Accepted: Yes
		For: 675536068 Against: 42182615 Abstained: 87988 Did not participate: 1030604

We hereby inform you that NCO JSC NSD has received information disclosed by the issuer of securities in accordance with Regulations of the Central Bank of the Russian Federation N 546-P dated June 1, 2016 “ON THE LIST OF INFORMATION RELATED TO THE EXERCISE OF RIGHTS ON SECURITIES PROVIDED BY ISSUERS TO THE CENTRAL DEPOSITARY, PROCEDURE AND SRO KAH HER PROVISION, AS WELL AS THE REQUIREMENTS FOR THE PROCEDURE FOR PROVIDING ACCESS TO SUCH INFORMATION BY THE CENTRAL DEPOSITORY."

4.10. Information on decisions made by the general meeting of shareholders, as well as on the results of voting at the general meeting of shareholders (Regulation 546-P dated 06/01/2016).

We are sending you the results of the general meeting of shareholders received by NCO JSC NSD in order to communicate this information to persons entitled to participate in this corporate action, in accordance with clause 4 of Art. 62 of the Federal Law of December 26, 1995 No. 208-FZ “On Joint-Stock Companies”*.

* NSD is not responsible for the completeness and accuracy of information received from the issuer.

Severstal management is consistently increasing the amount of dividend payments. Annual and interim dividends are regularly transferred to shareholders. In the first half of 2018, the company will pay dividends in the amount of 27.72 rubles. per share. Payments will begin on June 20, 2018.

The famous mining and metallurgical company Severstal is one of the largest Russian enterprises in the field of ferrous metallurgy and mining. Owns many assets in Russia (including the second largest metallurgical plant in the Russian Federation) and abroad: in the CIS countries, Eastern Europe, Africa. It is a world leader in production profitability. In 2017, steel production reached 11.5 million tons. It supplies products to various regions of the world.

When does Severstal pay dividends?

The company offers investors ordinary registered shares, currently 837.7 million shares have been placed. Trading in Severstal securities is carried out on the Moscow (MICEX) and London (LSE) exchanges under the tickers CHMF and SVST, respectively.

Over the past few years, the company's revenue has noticeably decreased from $8.3 billion in 2014 to $7.8 billion in 2017. This is due to several factors, including a correction in steel prices.

Important! According to Promsvyazbank analysts, in 2018 Severstal’s revenue may fall by another 15-20% due to further destabilization of prices in the raw materials market.

At the same time, the company demonstrates stable financial and operating results. The size of dividends continues to grow every year.

Table 1. Timing and amount of Severstal dividend payments in 2017. Source: investfuture.ru

The current yield is 9.85%, the DSI is 0.79.

The mining and metallurgical company pays annual dividends, interim dividends in the event of a stable financial position. The average amount allocated for payments depends on the ratio of net debt to EBITDA:

• if the resulting ratio is below 1x, then 50% of the net profit is transferred to payments;
• if the value is higher than 1x, then shareholders will receive no more than 25% of net profit.

Table 2. Timing and amounts of Severstal dividend payments for 2017. Source: investfuture.ru

The period for which income is paid	Size d dividend per 1 ordinary share, rub.	Total amount of payments, rub.	Register closing date (dividend cut-off)	Payment schedule
2017, 4th quarter	27,72	92.2 billion	19.06.2018	20.06.2018 – 14.07.2018
2017, 3rd quarter	35,61		05.12.2017	06.12.2017 – 01.01.2018
2017, half year	22,28		26.09.2017	01.11.2017 – 14.07.2017
2017, 1st quarter	24,4		20.06.2017	21.06.2017 – 01.08.2017

What dividends will the company pay for the fourth quarter of 2017?

Severstal began paying dividends in 2001, gradually increasing their size.

Interesting fact! In 2017, the Company paid shareholders an income that was three times the amount of attracted investments.

This makes the company one of the most attractive investments, including due to its reliable dividend history.

Table 3. History of dividend payments of Severstal in 2010-2017. Source: official website

How to get income from owning shares?

The decision on payment or non-payment of dividends is made by the Meeting of Shareholders based on an analysis of indicators and recommendations provided by the Board of Directors, which, after assessing and redistributing profits for a new period, sets the maximum possible amount of income per share.

Important! According to the dividend policy, announcing the decision on payment is the right, not the obligation of the Company. In its absence, the company may not pay money to shareholders, and the latter have no right to make demands.

However, Severstal is considered a highly reliable company for investors and provides regular payments.

The meeting of shareholders announces:

• the amount of dividend income;
• form and procedure of payment;
• register closing date;
• payment period.

A private individual must first take into account the closing date of the register (dividend cut-off). At this time, all holders of the company’s securities are recorded, for whom income will be calculated and paid. Accordingly, in order to receive Severstal dividends for the fourth quarter of 2017, you need to buy shares and get into the register before the cutoff point.

Important! RThe registry will close on June 19, 2018 (Tuesday). To be included in the list of dividend recipients, you must purchase Severstal securities 2 business days before the specified date, that is, no later than June 15 (Friday).

How to become a shareholder?

You can buy Severstal shares with the help of a brokerage or investment company that has the right to participate in trading on the stock exchange. This is an intermediary who will help an individual purchase securities, register them in his name and send the data to the shareholder register.

A formal agreement is concluded with this type of company, a brokerage account is opened, after which the intermediary will be able to buy shares.

It is recommended to follow important news regarding Severstal dividend payments; they can be found on the company’s website - www.severstal.com. All necessary information appears in advance: for example, you can find out about the upcoming Meeting of Shareholders 30 days before it takes place.

Video. Features of Severstal dividend payments:

Higher education. Orenburg State University (specialization: economics and management of heavy engineering enterprises).
March 10, 2018.