Meet EVRAZ

GLOBAL FOOTPRINT

Canada USA RussiaMoscowLondonOffice Office

Czech RepublicSwitzerland Kazakhstan

Steel segment

Steel, North America segment

Coal segment

For ourPARTNERS

STEEL PRODUCTS OUTPUT

13.2 mt

For ourPEOPLE

AS OF 31 DECEMBER 2019

71,223 employees

Annual report & accounts 2019

www.evraz.com

For ourCOMMUNITY

REPORT BOUNDARIESThis annual report (“the Report”) presents the results for EVRAZ plc and its subsidiaries for 2019 divided into segments: Steel; Steel, North America; and Coal. It details the Group’s operational and financial results and corporate social responsibility activities in 2019.

The Report has been prepared in accordance with the information disclosure requirements of the United Kingdom and the Financial Conduct Authority: the Companies Act 2006, the Listing Rules, the Disclosure Guidance and Transparency Rules, and the Competition and Market Authority Order. The Report has also been prepared taking into account the International Integrated Reporting Framework, and sustainability reporting best practices.

Meet EVRAZEVRAZ in figures

CONTENTS

in construction and railway product markets in Russia

in production of rails and large diameter pipes in North America

the largest coking coal producer in Russia

Leader

SOCIAL AND SOCIAL INFRASTRUCTURE MAINTENANCE EXPENSES

US$ 26 million

Strategic report 4

Chairman’s introduction 6Chief Executive Officer’s letter 8EVRAZ business model 12Operational model 14Sustainable development 16EVRAZ Business System 18Market overview 20Strategic priorities 22Key performance indicators 26Financial review 28Principal risks and uncertainties 34Viability statement 40Statement in accordance with S172 of the Companies Act 41Non-financial reporting 42

Business review 44

Steel segment 46EVRAZ steel across the globe 54Coal segment 56Resilient R&D 62Steel, North America segment 64Digital transformation 70

CSR report 74

Our approach 76Health, safety and environment 76Environment case studies 86Using renewable energy 88Social policy 90Anti-corruption and anti-bribery 102

Corporate governance 104

Board of Directors 106Management 110Corporate governance report 112Stakeholder engagement 118Remuneration report 130Directors report 140Directors responsibility statement 145

Financial statements 146

Independent Auditor’s report to members of EVRAZ Plc 148EVRAZ plc Consolidated Financial Statements for the year ended 31 December 2019 156EVRAZ plc Separate Financial Statements 240

Additional information 248

Stock performance indicators and shareholder information 250Definitions of selected alternative performance measures 251Data on mineral reserves 253Terms and abbreviations 254Short summary of relevant anti-corruption policies 257Contact details 258

Steel Coal Steel, NA Other operations

Eliminations TOTAL

1,48

3 2,67

21,

79

5

1,22

61,

218

84

3

58 14 38

21 17 18 (145

)(9

3)

2,62

4 3,77

72

,60

1

(164

)

2017 2018 2019

Financial highlights

CSR highlights

SHAREHOLDER STRUCTURE

Operating highlights

Consolidated revenues by segment, US$ million Consolidated EBITDA by segment, US$ million

RevenueUS$ 11,905 million

7.3% year-on-year

EBITDAUS$ 2,601 million

31.1% year-on-year

For more information, read Financial review section on pages 28–29. For more information, read Financial review section on pages 28–29.

Read more on page 78 Read more on page 82 Read more on page 82

2

Steel Coal Steel, NA Other operations

Eliminations TOTAL

7,74

38,

879

8,1

43

2,21

42,

337

2,0

21

1,86

42,

583

2,5

00

462

472

48

3

(1,4

56)

(1,4

35)

(1,2

42)

10,8

2712

,836

11,9

05

2017 2018 2019

2019

2018

2017

13,019

13,814

14,033

Crude steel output, kt

LTIFR (excluding fatalities), per million hours

Steel products output1, kt

Key air emissions, kt

Iron ore products output, kt

EVRAZ GHG emissions, MtCO2e

United Kingdom8.79%

Russia2.05%

Europe (excl. UK, Russia)6.83%

Asia&Pacific1.46%

North America10.58%

Other1.54%

EVRAZ in figures

2019

2018

2017

12,376

13,230

12,576

2019

2018

2017

13,515

13,765

13,879

2019

2018

2017

1.91

2.04

1.90

2019

2018

2017

128.24127.69

137.11

2019

2018

2017

38.79

43.38

41.65

1. Net of re-rolled volumes.

2. Including payments on deferred terms recognised in financing activities.

Geographic dispersion of institutional shareholders, % of voting rights

Russia and CISNorth America

Europe

93.8%6.0%

0.2%

71,223 people

Net debt

US$

3,445million

3.5% year-on-year

CAPEX

US$

762million

44.6% year-on-year

Net profit

US$

365million

85.2% year-on-year

For more information, read Financial review section on pages 28–29.

Annual report & Accounts 2019

www.evraz.com

Read more on page 83 Read more on page 91 Read more on page 91

3

Ultimate beneficial owners, % of voting rights4

Raw coking coal production, kt

Fresh water consumption, million m3

Coking coal concentrate production, kt

Diversity, % (number of people)

Gross vanadium slag production,3 mtV

Employees by region

2019

2018

2017

24,188

26,140

23,306

2019

2018

2017

16,188

13,975

14,130

13,061

1,947

2,057

2,083

15,923

15,143

Production by Coal segmentProduction by Steel segment

17,052

18,380

18,636

2019

2018

2017

2019

2018

2017

226.49

205.8

319.43

BoardSenior Management82% (323)

78% (7)

72% (51,101)

18% (71)

22% (2)

28% (19,728)

WomenMen

Employees

ROMANABRAMOVICH4

28.77ALEXANDER ABRAMOV4

19.41ALEXANDER

FROLOV4

9.69GENNADYKOZOVOY5

5.77FREE-FLOAT

33.56

3. In tonnes of pure vanadium.

4. The number of shares as per dealing notification dated 20 June 2019.

5. The number of shares is as per TR-1 Form: Notification of major interest in shares dated 6 February 2013. For Mr Kozovoy, includes shares held directly.

For definition of Alternative performance measures (APM) please see pages 251–252