Chelpipe Board Approves Development Strategy through 2024

The Board of Directors of Chelyabinsk Pipe Rolling Plant has approved the Company's development strategy for the period through 2024 and nominated two independent directors for approval by the shareholders meeting. The new strategy seeks to ensure consistent and strong business growth by transforming Chelpipe Group to a customer-centric enterprise. The strategy focuses on developing the Company’s offering in high value-added segments, gradual expansion in adjacent segments, entry into new regions, and operating efficiency improvements.

The key objectives and expected effects include:

1. Focus on developing high-potential segments with moderate levels of competition and on increasing the share of niche products with high added value.

2. Operating efficiency improvements to deliver a target annual reduction of at least 2.5% of aggregate costs not associated with raw materials.

3. Maintaining a consistently high EBITDA margin.

4. Sales channel and product portfolio diversification with a targeted export revenue share above 25%.

The Company will focus its efforts on high-potential segments, high value-added niche products, quality of service, and integrated engineering solutions rather than pursuing production growth in any market environment. This approach is expected to contribute to the Group's efforts to expand its proposition in target markets and maintain its share of export sales in revenue mix at above 25%.