Investor Presentaiton
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Domestic growth > Construction
Domestic Market Strategy - Construction (64% of sales)
Growing multi-product segment
Sector highlights:
Steel consumption by product
in construction industry***
Government plans to increase new housing
construction from 50m m² in 2006 to
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170m m² by 2020*
Fast development of mortgage market
NLMK's plans for output growth by 2015
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Flats: 6.9 m t**
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Long: 4.4 mt
Main steps
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M&A: Maxi-Group acquisition
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Capex to increase output and quality
80
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Market position in 2007
#60
Over 30% share in the Russian construction
flat steel segment
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Targeted market position***
Over 30% in flat
Over 30% in long products
* Ministry for Economic Development report, May 2008
**Main production site in Lipetsk
*** Company estimates
35%
■Long products
65%
■Flat products
Construction growth
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
80
70
61
50
44
25
40
28
30
17
19
22
20
2003 2004 2005 2006
■Non-residential
Source: Goskomstat, company estimates
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2007 2008E 2009E 2010E
■Residential
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