Setting right goals

for a Better Future

Key performance indicators

EVRAZ performance is assessed against several key performance indicators (KPIs), which are linked to our strategic priorities.

Financial

KPI	EBITDA, US$ million	Free cash flow, US$ million	Effect from efficiency improvement programme, US$ million (cost cutting + customer focus)	Cash cost of slab, US$ per tonne	Cash cost of coal concentrate, US$ per tonne
Data
What does it mean?	Our financial performance	Our ability to generate free cash flow from the current business	The effect of our efforts to generate and implement efficiency improvements initiatives	Our integrated cash-cost per tonne of slab for Russian steel plants	Our cash-costs per tonne of washed coal products
How did we perform in 2019?	The decline comparing to 2018 is primarily attributable to lower vanadium and coal product sales prices, as well as higher expenses for raw materials (mainly increased iron ore prices)	The decline comparing to 2018 is primarily attributable to lower EBITDA and increased capital expenditures	The efficiency programme generated its additional effect mostly through productivity growth, yield improvements and numerous savings projects. Customer focus initiatives generated additional effect a result of sales efforts in wheels, beams, grinding balls and large diameter pipes as well as to improvements in logistics efficiency	Cash cost of slab increased following change in blast furnace charge as higher percentage of more expensive pellets were added in the mix at EVRAZ ZSMK as well as due to the higher prices for raw materials and increased salary expenses	Coking coal concentrate cash cost decreased as a result of increased mining volumes
Relevance to strategic priorities or basis	Retention of low cost position Development of product portfolio and customer base	Debt management and stable dividend Prudent CAPEX Retention of low cost position Development of product portfolio and customer base	Retention of low-cost position Development of product portfolio and customer base	Retention of low-cost position Development of product portfolio and customer base EVRAZ business system	Retention of low cost position Development of product portfolio and customer base
Further details	Read more on Definitions of selected alternative performance measures	Read more on Definitions of selected alternative performance measures	Read more on Definitions of selected alternative performance measures	Read more on Definitions of selected alternative performance measures	Read more on Definitions of selected alternative performance measures

Non-financial

KPI	Labour productivity, steel, tonnes per person	LTIFR (excluding fatalities), per 1 million hours	GHG intensity ratio, tCO₂e per tonne of crude steel
Data
What does it mean?	Productivity of our workforce	Key indicator of the Group’s health and safety performance	The effect of our efforts to reduce the carbon footprint of our production
How did we perform in 2019?	Labour productivity increased as a result of higher production volumes at EVRAZ steel mills	The increase in this key metric was primarily caused by an incident involving a crew bus in February 2019 in which eight colleagues lost their lives and 16 people were seriously injured	Intensity ratio decreased due to more effcient operation of Blast Furnace shop at EVRAZ ZSMK in 2019 and exclusion of EVRAZ DMZ (cease of operations in Ukraine) as from Q1 2018
Relevance to strategic priorities or basis	Retention of low-cost position	Sustainable development	Sustainable development
Further details	Read more on Definitions of selected alternative performance measures	Read more on Definitions of selected alternative performance measures	Read more on Definitions of selected alternative performance measures