Public Joint Stock Company Magnitogorsk Iron & Steel Works (“MMK”, or the “Group”) (MICEX-RTS: MAGN; LSE: MMK), one of the world’s largest steel producers, is pleased to announce its financial results for Q4 and 12M 2021.

KEY FINANCIAL INDICATORS FOR Q4 2021 VS Q3 2021

• MMK Group’s revenue increased by 12.1% quarter-on-quarter (q-o-q) to USD 3,398 mln, which reflects an increase in sales volumes partially offset by a correction in global steel prices.

• EBITDA declined by 16.0% q-o-q to USD 972 mln, mainly due to lower global steel prices. EBITDA margin decreased by 9.6 p.p. to 28.6%.

• Net profit declined by 3.1% q-o-q to USD 794 mln. At the same time, the effect of the price decrease was partially offset by the restoration of the provision for the impairment of the Turkish asset in the amount of USD 250 mln.

• Free cash flow grew 30.6% q-o-q to USD 534 mln, reflecting an inflow from working capital amid lower inventories.

KEY FINANCIAL INDICATORS FOR 12M 2021 VS 12M 2020

• MMK Group’s revenue for 12M 2021 increased by 85.6% year-on-year (y-o-y) to USD 11,869 mln, reflecting higher sales due to the completion of Hot-Rolling Mill 2500’s modernisation and an upward trend in global price indices on the steel market.

• In 2021, EBITDA more than doubled year-on-year to USD 4,290 mln, reflecting stronger revenue and a low base in 2020. EBITDA margin was up 12.8 p.p. to 36.1%.

• Net profit for 12M 2021 increased significantly year-on-year to USD 3,121 mln, mainly reflecting increased production volumes and sales efficiency amid positive trends in global markets.

• Free cash flow for 12M 2021 more than doubled to USD 1,613 mln due to stronger EBITDA.

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