MMK Group Trading Update for Q4 and FY 2018

Q4 2018 highlights vs. Q3 2018

MMK Group’s total sales of finished products in Q4 2018 totalled 2,936 thousand tonnes, down 3.8% quarter-on-quarter (q-o-q).

MMK Group’s sales of HVA products in Q4 2018 were 1,349 thousand tonnes, almost flat q-o-q. The share of HVA products in total sales increased to 45.9%.

MMK Coal’s coal concentrate production in Q4 2018 totalled 781 thousand tonnes, down 3.4% q-o-q.

FY 2018 highlights vs. FY 2017

MMK Group’s total sales of finished products in FY 2018 totalled 11,664 thousand tonnes, up 0.4% year-on-year (y-o-y).

MMK Group’s sales of HVA products in FY 2018 were 5,426 thousand tonnes, up 2.9% y-o-y. The share of HVA products in total sales increased to 46.5%.

MMK Coal’s coal concentrate production in FY 2018 totalled 3,001 thousand tonnes, up 10.1% y-o-y.

The Company’s management expects the sales of finished products in Q1 2019 to remain under pressure from weak seasonal demand amid low sales prices on global markets. However, these factors will be partly offset by higher share of domestic sales in Q1 2019, thanks to support of demand due to lower supply of flat steel by some steel producers, and 100% capacity utilisation by a number of high-margin production assets, including Mill 5000.