NLMK - Moscow, Timura Frunze, 11 k2 (telephone, opening hours and reviews)

Dividend policy

The share capital of NLMK Group is divided into 5,993,227,240 joint-stock companies (ordinary shares), each with a par value of 1 ruble.

Today, the company's dividend policy depends on the net debt/EBITDA ratio.

Until 2021, funds for the payment of dividends to NLMK shareholders were allocated as follows:

• with “net debt/EBITDA” ≤1.0х – within the framework of 50% of net profit – 50% of free cash flow (FCF);
• with “net debt/EBITDA” >1.0x – 30% of net profit, 30% of FCF.

From the first quarter of this year, payments to NLMK shareholders will be calculated as follows:

• with “net debt/EBITDA” ≤1.0х – 100% FCF;
• with “net debt/EBITDA” >1.0x – half of FCF.

The NLMK website states that the FCF value is calculated in the company’s consolidated financial statements prepared in accordance with international standards (IFRS). NLMK dividends are declared in rubles, their dollar equivalent is indicated at the exchange rate of the Russian Central Bank on the day of announcement.

The Board of Directors of NLMK Group at a meeting on October 25, 2018 recommended that shareholders approve dividends for the 3rd quarter of 2018 in the amount of 6.04 rubles per share at an extraordinary general meeting of shareholders to be held on December 21, 2018.

The Board of Directors recommended that shareholders approve dividends for the 3rd quarter of 2021 in the amount of 6.04 rubles per share, which is equivalent to 86% of NLMK Group's free cash flow for the 3rd quarter of 2021 according to the consolidated financial statements prepared in accordance with IFRS. Dividend yield* for the 3rd quarter of 2021 will be 14%.

Taking into account dividends accrued for the 1st and 2nd quarters of 2021, dividends for 9 months of 2021 will amount to approximately 100% of the company's free cash flow for the corresponding period.

Shareholders are recommended to set the date on which persons entitled to receive dividends for the 3rd quarter of 2021 are determined - January 9, 2021.

The date on which persons entitled to participate in the extraordinary general meeting of shareholders are determined (fixed) is November 26, 2018.

For information: Earlier on September 28, 2021, by decision of the extraordinary general meeting of shareholders, dividends for the 2nd quarter of 2021 were approved in the amount of 5.24 rubles per share.

The total amount of dividends for the 1st and 2nd quarters of 2021 was 10.97 rubles per share.

* * *

* Dividend yield is calculated as the amount of dividends for the period at the exchange rate at the end of the reporting period, annualized by multiplying the amount for the quarter by 4 and divided by the amount of the company's market capitalization on the last day of the corresponding period.

More detailed information about NLMK Group's dividend policy can be found on the website.

Information about NLMK Group

NLMK Group is a vertically integrated metallurgical company, the largest in Russia and one of the most efficient producers of steel products in the world.

NLMK Group's metal products are used in various industries, from construction and mechanical engineering to power equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe and the USA. The company's steel production capacity exceeds 17 million tons per year.

NLMK demonstrates high cost competitiveness among global manufacturers; the company's profitability is one of the highest in the industry. The company's revenue for 9 months of 2018 amounted to $9 billion, EBITDA was $2.3 billion. The Net Debt/EBITDA ratio was 0.25x. The company has an investment grade credit rating from S&P, Moody's, Fitch and RAEX (Expert RA).

Ordinary shares of PJSC NLMK, the free-float of which is 16%, are traded on the Moscow Stock Exchange (ticker “NLMK”), global depositary shares are traded on the London Stock Exchange (ticker “NLMK:LI”). The Company's share capital is divided into 5,993,227,240 ordinary shares with a par value of 1 Russian ruble. More information about NLMK's share capital can be found here.

The jury of the prestigious international competition S&P Global Platts Metals Awards, which is held by the leading international industry and analytical publication S&P Global Platts, in 2021 recognized NLMK Group as the world “Leader of the steel industry” (Industry Leadership Awards - Steel), in 2021 awarded the “CEO of the Year".

All company dividends for the last 10 years

NLMK Group shareholders can only own ordinary shares; the company does not have preferred shares. Since 2015, dividends at NLMK have been calculated on a quarterly basis. Dividends declared for 10 years are shown in the table.

The amount of dividends is approved by the meeting of NLMK shareholders. Data analysis shows a strong increase in dividends over 10 years: 62.5% by 2021 (calculation from 2017), 1040.5% since 2008.

Dividends on NLMK shares in 2021 - size and register closure date

Home → Dividends→ Shares of NLMK JSC - forecast, payment history

A table with the complete history of NLMK dividends, indicating the amount of payment, the date of closure of the register and the forecast:

*Note 1: The Moscow Exchange operates on the T+2 trading system. This means that settlements for buying and selling shares occur within 2 business days. Therefore, to be included in the register of shareholders and receive dividends, you must be a shareholder 2 days before the cutoff.

*Note 2: Exact payout date varies by broker and issuer. The predicted earliest date for receipt of dividends to the brokerage account for NLMK JSC: June 22, 2021.

Total dividends of NLMK JSC shares by year and changes in their size compared to the previous year:

The amount of dividends paid by NLMK JSC for the entire period is 138.7125 rubles.

Average amount for 3 years: 25.35 rubles, for 5 years: 21.61 rubles.

DSI indicator: 0.93.

You can buy shares of NLMK JSC with minimal commissions from stock brokers: Finam and BCS. Free deposits and withdrawals. Online registration.

Dividend policy:

NLMK's dividend policy was adopted in 2021 for 5 years.

• Quarterly dividend payments.
• Payout of 100% of free cash flow provided that DEBT/EBITDA
• Payout of 50% of free cash flow provided DEBT/EBITDA > 1.0x.
• Free cash flow for dividend payments is calculated taking into account the normalized level of capital expenditures ($0.7 billion per year).

Brief information about the issuer PJSC Novolipetsk Iron and Steel Works

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Calendar with upcoming and past dividend payments

View full calendar for 2021 »

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When will dividends be paid in 2021?

NLMK shareholder screenings are held several times a year. Based on the results of the VI quarter of 2021, the registry was closed on May 6, payments began on June 1. For dividends for the first quarter of 2021, the cutoff will occur on June 19, the next payments are planned for July 14.

The forecast date for declaring NLMK's next dividends is October 12, payment to shareholders will occur no earlier than November 6.

The decision on the amount of dividends for the first quarter was made by the meeting of NLMK shareholders on 06/07/19.

What are the advantages of a shift work schedule?

It is strictly prohibited by law to have an employee work two shifts in a row! Regulation According to the Labor Code of Russia, the employer has the right to independently establish and regulate shift schedules. But at the same time, a 40-hour work week must be strictly observed, which amounts to a standard of 167 working hours per month.

Separate articles provide exceptions for some special categories of employees: minors, disabled people, pregnant and nursing mothers regarding the duration of one shift. In other cases, the employer can determine the duration at his own discretion - in this matter the Labor Code does not impose any restrictions.

It is noteworthy that a shift work schedule is only one in which employees change at least once a day.

Stock return

Analyzing NLMK's annual reports and share prices on the Moscow Stock Exchange, I calculated their dividend yield:

• for 2021 with annual dividends per JSC 14.04 rubles/exchange price at the end of the year 147.22 rubles. (NLMK report data) – 9.5%;
• for 2021 at 22.81/157.42 rubles. (NLMK report data) – 14.6%;
• for the first quarter 2021 with dividends on JSC 7.34 rubles/JSC price as of 06/26/19 167 rubles. (MOEX data) – 4.4%;
• LTM (last 12 months) with dividends of 24.42 rubles/JSC price as of 06/26/19 167 rubles. (MOEX data) – 14.6%.

Based on dollar prices on the London Stock Exchange for deposited shares of NLMK, the yield of the Central Bank is:

• in 2021 – 0.94%;
• in 2021 – 1.5%.

My forecast: over the past 2 years there has been a stable and fairly high return on ruble investments in JSC NLKM on the Moscow Exchange; in the coming periods it will remain at the same level.

Dollar yields will also continue.

How to buy shares and receive dividends

In Russia, NLMK shares are traded on the Moscow Exchange (MOEX). Part of them is kept on deposit with Deutsche Bank Trust Company Americas and traded under GDRs (global depositary receipts) on the London Stock Exchange (LSE), each of them includes 10 joint-stock companies. Share tickers are NLMK on MOEX and NLMK:LI on LSE.

Best brokers

The safest way to purchase NLMK JSC is through brokerage firms. Buying directly from the owners is unlikely. I offer a table of the best brokers.

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Warning about Forex and BO

If you are new to investing, do not trust binary options (BO), lured by the ease of interaction with them. The creators of such dubious resources (often fraudulent) manipulate exchange rate differences.

Neither Forex nor BO work with stock exchanges. My advice is to buy and sell NLMK JSC through real, proven brokerage houses.