Debt management and stable dividends

EVRAZ remains focused on medium-term debt management and maintaining a stable dividend payout:

• Dividend payout according to stated dividend policy: a minimum of US$300 million to shareholders annually provided that the net leverage ratio remains below 3.0x
• Medium-term net debt level below US$4,000 million
• Target average net debt/EBITDA at 2.0x throughout the cycle

In 2019, EVRAZ net debt amounted to US$3,445 million and remained comfortably below the medium-term target of US$4 billion. The average net debt/EBITDA ratio was 1.3x. Even in the case of market volatility, EVRAZ will remain committed to maintaining its long-term average net debt/EBITDA at 2.0x.

In 2019, EVRAZ generated strong free cash flow of US$1,456 million, which is higher than its average free cash flow since 2014. Robust free cash flow and a net debt/EBITDA ratio below 2.0x made it possible for the Group to return US$1,086 million to its shareholders in the form of dividends with a dividend yield of 11%.