OREANDA-NEWS. Metinvest B.V., the parent company of an international vertically integrated steel and mining group of companies (jointly referred to as “Metinvest”), publishes a trading update for the 12 months ended 31 December 2012.

The information in this press release has been prepared based on preliminary financial results. Inter-company transactions have been eliminated in consolidation. This announcement does not contain sufficient information to constitute a full set of financial statements. The following preliminary results may differ from annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS). The numbers in this press release have not been audited or reviewed.

Metinvest B.V. annually publishes consolidated financial statements prepared in accordance with IFRS for the six months ended 30 June and for the year ended 31 December.

2012 FINANCIAL HIGHLIGHTS

Consolidated revenues of USD 12,565 million (-11% y-o-y)

Adjusted EBITDA1 of USD 1,985 million (-44% y-o-y), with an EBITDA margin of 16%

Total loans and borrowings of USD 4,038 million2, comprising USD 2,654 million of long-term borrowings and USD 1,384 million of short-term borrowings

Seller’s notes of USD 240 million

Cash and cash equivalents of USD 530 million

Capital expenditures of USD 751 million (-36% y-o-y)

2012 OPERATIONAL HIGHLIGHTS

Steel production of 12,459 thousand tonnes (-13% y-o-y)

Mining of coking coal of 11,623 thousand tonnes (+3% y-o-y)

Iron ore concentrate production of 36,224 thousand tonnes (+1% y-o-y)

GROUP REVENUES

In 2012, Metinvest’s consolidated revenues totalled USD 12,565 million, down 11% compared with USD 14,189 million in 2011. The drop was due to declines in revenues of 12% for the Metallurgical Division and 10% for the Mining Division. The Metallurgical Division accounted for 74% of external sales (similar to its share in 2011) and the Mining Division for 26%.

METALLURGICAL DIVISION

In 2012, revenues from sales of semi-finished products decreased by 33% y-o-y to USD 1,418 million, primarily as a result of slab sales volumes declining by 1,154 thousand tonnes.

Last year, slab sales fell by 55% to USD 689 million, of which 49% came from lower sales volumes and 6% from lower average prices. The decline in volumes was the result of unprofitable sales driven by the unfavourable market conditions and low buying activity in key slab consumption regions (Asia and Europe). As such, oversupply of slabs driven mainly by greater supplies from Russian producers (and higher competition as a result), along with a continuing decline in flat product prices, caused slab prices to fall by an average of USD 100 per tonne from January to December.