Click here to open home page DOWNLOAD ANNUAL REPORT 2020 MENU Standing together ANNUAL REPORT 2020 DOWNLOAD PDF 6.76MB Click for the next section HIGHLIGHTS OF 2020 What began as a localised outbreak in late 2019 had become a global pandemic by early 2020, creating a colossal challenge for people, businesses and governments worldwide. Metinvest rose to this by working more closely with all stakeholders, and its results for the year reflect these efforts. DOWNLOAD PDF 177KB Previous OPERATIONS CRUDE STEEL OUTPUT 7,323KT 7,578KT 8,268KT 2018 2019 2020 IRON ORE CONCENTRATE OUTPUT 27,353KT 29,028KT 30,501KT 2018 2019 2020 Next 1 2 3 Click for the next section WORLDWIDE ONE OF THE GLOBAL LEADERS IN STEEL AND IRON ORE Established to manage metals and mining assets in Ukraine in 2006, Metinvest has expanded progressively to become an industry player operating internationally. Today, it has production assets in Ukraine, the EU, the UK and the US, as well as a global sales network. As a vertically integrated business, it supplies raw materials and steel products to customers worldwide. KEY ASSETS 16 SALES OFFICES 45 COUNTRIES OF BUSINESS ~100 INTERNATIONAL SALES 72% DOWNLOAD PDF 639KB Next 1 2 Click for the next section Metinvest was not caught off guard by the tremendous challenges that 2020 presented. Thanks to the achievements of previous years and the reporting period, the Group was able to uphold commitments to stakeholders during the pandemic. OLEG POPOV CHAIRPERSON OF THE SUPERVISORY BOARD DOWNLOAD PDF 2.1MB Upholding commitments Click for the next section In 2020, Metinvest stood in solidarity with its stakeholders to help overcome the unprecedented challenges caused by the global pandemic. Supporting them played a crucial role in the Group achieving strong operational and financial results. YURIY RYZHENKOV CHIEF EXECUTIVE OFFICER DOWNLOAD PDF 1.1MB Standing together Click for the next section STAKEHOLDER ENGAGEMENT EMPLOYEES Striking a balance Metinvest strives to understand and proactively respond to the various concerns of its key stakeholder groups. By adhering to the principles of sustainability the Group is better prepared to meet the diverse needs of its employees, customers, suppliers and contractors, local communities, equity and debt providers and government authorities. DOWNLOAD PDF 304KB EMPLOYEES RESPONDING PROACTIVELY TO COVID-19 For Metinvest, the health and safety of employees is an unconditional priority. As part of this, the Group introduced comprehensive measures to protect staff as soon as COVID-19 became a pandemic. From mid-March, it began providing masks, gloves, sanitiser and other personal protective equipment at facilities; introduced social distancing measures; and started regularly disinfecting its premises and own transportation. In parallel, it cancelled all public events and business trips, and transferred employees to remote working where possible. Since then, Metinvest has monitored developments fastidiously and erred on the side of caution throughout. RESULTS FOR 2020 Despite the pandemic, Metinvest continued to meet its social obligations to employees and did not change base salaries. In 2020, the Group transformed its bonus system to incentivise such priorities as health and safety, operational improvements and customer focus. It also expanded its My Choice individual social package to cover more employees and offered additional coverage options under the programme. In addition, Metinvest invested about US$7 million as part of an initiative aimed at improving the amenities and other services provided to staff. Its employee retention efforts helped to further reduce overall staff turnover to around 5%. The Group also integrated 2,800 employees from recently acquired assets into the team during the reporting period. Click for the next section IN FOCUS OPERATIONAL IMPROVEMENTS Pursuing greater efficiency DOWNLOAD PDF 167KB In 2020, Metinvest continued to focus on overcoming several challenges, one being an efficiency gap compared with leading peers in the industry. By the year-end, the Group had succeeded in narrowing it significantly. Overall, Metinvest achieved operational improvements totalling US$376 million during the reporting period, a six-fold increase year-on-year. This was primarily due to reductions in variable costs, driven by such measures as lower equivalent fuel consumption at the steelmakers and improved mining fleet efficiency at the iron ore producers. In addition, Metinvest introduced digital strategies for much of its processes and businesses. In 2020, the Group’s steel plants delivered operational efficiency gains of US$184 million, primarily from advances in sinter, iron and steelmaking operations. The single largest contributor in monetary terms was better equivalent fuel consumption in hot metal production, which resulted from numerous investment projects and operational measures. Meanwhile, Metinvest’s iron ore assets made combined operational improvements of US$117 million, mostly from enhanced productivity. From here, the aim is to sustain the operational efficiency momentum gained in 2020. The Group recognises that each further step will be increasingly difficult. To achieve its objectives, it will need to apply creative solutions and tools, including digital technology such as artificial intelligence. EFFECT OF OPERATIONAL IMPROVEMENTS US$376M YEAR-ON-YEAR INCREASE IN THE EFFECT 6x Click for the next section DOWNLOAD CENTRE DOWNLOAD PDF 6.7MB ANNUAL REPORT 2020 Highlights of 2020 At a Glance STRATEGIC REPORT Chairperson's Statement CEO's Statement Business Model Strategy Market Review: Global Market Review: Ukraine Operational Review Financial Review Business Transformation SUSTAINABILITY REPORT Stakeholder Engagement Health and Safety People Environment Communities GOVERNANCE REPORT Corporate Governance Supervisory Board Executive Team Governance Codes and Policies Internal and External Audit Risk Management FINANCIAL STATEMENTS Independent Auditor's Report Summary Consolidated Balance Sheet Summary Consolidated Income Statement Summary Consolidated Statement of Comprehensive Income Summary Consolidated Statement of Cash Flows Summary Consolidated Statement of Changes of Equity Note to the Summary IFRS Consolidated Financial Statements ADDITIONAL INFORMATION Parent Company and Principal Subsidiaries Sales Offices Glossary Abbreviations © Metinvest 2021 Privacy Policy metinvestholding.com