Investor Presentaiton
SCRAP PROCESSING DIVISION
KEY DEVELOPMENTS IN 2020
✓ Over RUB 400 mn saved in 2020 as a result of
cost optimization program
✓ Improved efficiency of production facilities
through assets restructuring
New sub-divisional management system
formed in June 2020
✓ Scrap collection increased by 3% year-on-year
In the 2nd half of 2020, META resumed
collection of nonferrous scrap, which already
brought RUB 0.7 bn of income
KEY GEOGRAPHIC REGIONS IN 2020
No Region
1
2
3
Sverdlovsk Region
Chelyabinsk Region
Perm Territory
4 KhMAD
5 Ulyanovsk Region
6 Tyumen region
7
Samara Region
8
Kirov Region
9
Saratov Region
10 Kurgan Region
11 Mari El
PNTZ¹
CHELPIPE
GROUP
META BENEFITS
✓ Strong collection and processing network
generates scrap at below market prices
✓ Proximity of scrap collection to manufacturing
facilities in Pervouralsk and Chelyabinsk
provides competitive advantage via minimized
transportation costs
SCRAP METAL SALE DYNAMICS AND DEMAND
FOR METAL FOR BILLET PRODUCTION
(kt)
KEY PARTNERSHIPS
M
MAGNITOGORSK
IRON & STEEL
WORKS
NLMK
Severstal
1,382
1,373
315
212
1,350
186
EVRAZ
TMK
Metalloinvest
amet
2020
КРАСНЫЙ ОКТЯБРЬ
1,067
1,161
1 164
✓ Additional cost savings from in-house
processing compared to purchased scrap
2018
2019
■Sales to PNTZ (META)
■External client sales (META)
Source: Company data
(1) Pervouralsk pipe plant
УГМК
UMMC
ДЭМЗ
24
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