NMMZ CLN Comment Eng

ƒƒƒƒƒƒƒƒƒƒARRANGER COMMENT The paper presents a brief sector and business survey as well as financial performance overview of Closed JSC Nizhneserginsky NSMMZ Metizno-Metallurgichesky Zavod (“NSMMZ” or “the Company”) regarding the announced placement of Credit Linked Notes. Highlights NSMMZ is a key producer of section steel and hardware of Key Financial Indicators, IFRS (US$ mln) metallurgy division of the Maksi-Group, which also incorporates division for iron and steel scrap collection and preparation. 200320042005 П 2006 ПNet Sales 124 215 429 560 According to IFRS financial statements, NSMMZ revenue has Operational Expenses 112 161 279 374increased in dollar terms by 73% to US$215 mln in 2004, the EBITDA 144112144Company’s EBITDA totaled US$44 mln. Net Profit (7)2 46 58 9 The Company has announced a substantial increase in sales in Operational Cash Flow (13) 50 92 1122005 due to modernization completion and further expansion of CAPEX 78212658production facilities. Free Cash Flow (92) (162) 27 104Margins In 2004, scrap collection exceeded internal needs more than two EBITDA margin 12 02 62 6times, thus providing substantial raw material base for further Net Profitargin (5)1 11 51growth of crude steel production in the coming years. Cash Flow margin (11) 23 21 20 The scrap-processing division of the Group consists of 42 Debt Indicators subsidiaries located throughout the country and secures second * *Total Debt 99 221 246 ...