Revenue amounted to 253 ,141 million rubles Consolidated EBITDA(a) *   amounted to 45,730 million rubles Net loss attributable to shareholders of Mechel PAO amounted to 115,163 million rubles

MOSCOW, May 13, 2016 (GLOBE NEWSWIRE) -- Mechel PAO (MICEX:MTLR) (NYSE:MTL) , a leading Russian mining and steel group, announces financial results for the full year 2015.

In accordance with legislation of the Russian Federation, starting from financial results for the year 2015 the Company will be reporting its financial statements in accordance with International Financial Reporting Standards (IFRS). Presentation currency will be Russian ruble.

Mechel PAO's Chief Executive Officer Oleg Korzhov commented on the 2015 results:

"2015 was a complicated year for our company, but nevertheless a vital one. Our key event was reaching agreement in principle with the majority of our lenders on restructuring our debt. Even though not all official documents were signed in 2015, our main efforts and talks on restructuring conditions were made in that period. As of now, the company has announced signing deals with major lender banks as well as reaching an agreement with Gazprombank with the bank acquiring a share in the Elga project. So we may consider that the restructuring's pivot point has been passed.

In 2015, our revenue went up by 4% to reach 253,141 million rubles, with EBITDA up by 54% to reach 45,730 million rubles, as the EBITDA margin reached 18% and adjusted operating income up by 140% year-on-year. The 115,163 million ruble net loss was largely due to negative currency rate trends.

Mechel's operational and financial results improved to a large extent due to the fact that our key projects whose implementation had caused our company's debt growth, are reaching target capacity utilization levels and increase returns on invested capital.

At Elga Coal Complex, four million tonnes of coal were mined last year, with coking coal accounting for two-thirds of that amount. Five million tonnes are planned to be mined in 2016. Starting in 2016, we began supplying rails produced by Chelyabinsk Metallurgical Plant's universal rolling mill to Russian Railways, which will enable us to fully utilize the mill's potential for producing high-margin products. Rail supplies to Russian Railways may amount to from 150,000 to 250,000 tonnes this year, with the mill's overall output totaling over 500,000 tonnes of products.

The strengthening of steelmaking commodity and steel markets which we currently observe enable us to confidently conduct our operations and sales with a view to the company's further development."

*Please find the calculation of the EBITDA(a) and other measures used here and hereafter in Attachment A

Consolidated Results For The Full Year 2015
Mln rubles FY 2015 FY 2014 %
Revenuefrom external customers   253,141     243,992     4 %
Adjusted operating income   29,203     12,147     140 %
EBITDA (a)   45,730     29,759     54 %
EBITDA (a), margin   1 8 %   12 %  
Net loss attributable to shareholders of Mechel PAO   (115,163 )   (132,704 )   -13 %
Adjusted net (loss) / income   (40,165 )   (7,609 )   428 %
Net debt   506,891     407,240     25 %
Trade working capital   (9,293 )   (12,603 )   -26 %
 

Mining Segment

Mechel Mining Management OOO's Chief Executive Officer Pavel Shtark noted:

"In 2015 the trend in steelmaking commodity markets was mostly negative. China's demand for coal imports took a constant downturn as facilities producing semi-finished steel goods faced massive closure. Imports were pushed out by local Chinese producers with the help of measures consistently taken by Chinese authorities. With this in mind, major Australian producers persisted in the policy of tough price competition with other global suppliers for the share in the market. Spot prices for coking coal plummeted, widening the gap with contract prices. As a result, the price for coking coal concentrate on the global market fell by more than 30% from $117 FOB in 1Q2015 to $81 FOB in 1Q2016 — further than it has been for many years.

In these conditions, our mining segment faced cuts in metallurgical coal sales. The chief decrease was in export sales, especially to China. At the same time the company increased coal supplies for internal use, for example, Elga coals replaced those coals that the Group's enterprises used to acquire from third parties. Meanwhile, the growth of ruble denominated prices for coal offered significant compensation for the decrease in sales due to ruble devaluation. As a result, the segment's revenue from sales to third parties demonstrated positive dynamics, while inter-segment revenue went up by a third. With operational costs at a stable level, the segment demonstrated a significant growth of its operational income and EBITDA, while its EBITDA margin reached 25%.

In the first quarter 2016, we saw some positive trends on the steel raw materials markets which led to contract prices reaching $84 per tonne, with spot prices rising higher than contract prices in April-May — for the first time since mid-2013. Considering low production costs at our mining assets and the decrease in transport costs due to ruble devaluation, the company's products remain highly competitive both domestically and internationally, which will enable us to further demonstrate stable financial results."
Mln rubles FY 2015 FY 2014 %
Revenue from external customers   80,632     79,509     1 %
Revenueintersegment   28,091     21,049     33 %
EBITDA(a)   26,831     13,359     101 %
EBITDA (a), margin (4)   25 %   1 3 %  
 

Steel Segment

Mechel-Steel Management Company OOO's Chief Executive Officer Andrey Ponomarev noted:

"Throughout practically all of last year, we had to cope with weakened demand for steel products in the construction industry which is crucial for the segment's sales structure. Russian long steel market in 2015 went down by 14% due to the decrease in construction volumes as the overall economic situation worsened, with effective demand going down and the state and business investment activity slowing down. Despite a significant decrease in visible consumption of construction-grade long steel in Russia, we maintained the volume of domestic sales at the level of the previous year, increasing our share at this strategically important market. We also optimized our sales portfolio for other types of long steel products, minimizing manufacture of low value-added products. We even managed to increase sales of some types of products, such as flat steel. Nevertheless, overall sales decreased tonnage-wise year-on-year. At the same time, ruble devaluation had a positive impact on domestic prices, which was the major cause of the growth of the segment's revenue. Due to our efforts on optimizing our product range by increasing the share of high value-added products and cost control, the segment demonstrated a growth of operating income and EBITDA.

The increase of high value-added products' share in our sales structure was largely thanks to the capacity utilization growth of the universal rolling mill. In 2015 the mill produced 175,000 tonnes and is due to more than double that volume this year. We consider Russian beam and rail markets to be among the most promising markets for the steel segment due to limited supply from domestic producers. Thus the mill's contribution to the segment's financial results will be more and more tangible each year."
Mln rubles FY 2015 FY 2014 %
Revenue from external customers   146,032     138,660     5 %
Revenueintersegment   6,972     8,207     -15 %
EBITDA(a)   17,127     14,906     15 %
EBITDA(a), margin   11 %   10 %  
 

Power Segment        

Mechel-Energo OOO's Chief Executive Officer Pyotr Pashnin noted:

"Last year, our segment demonstrated, as usual, stable operational profit. Electricity generation and sales topped those of the previous year, while heat production and sales saw a moderate decrease primarily due to climatic factors. As a result, we demonstrated a small increase in revenue from sales to third parties, while our EBITDA(a) went up by nearly half."

Mln. rubles FY 2015 FY 2014 %
Revenue from external customers   26,477     25,823     3 %
Revenueintersegment   14,990     13,731     9 %
EBITDA(a)   2,090     1,403     49 %
EBITDA(a), margin (4)   5 %   3 %  
 

The management of Mechel will host a conference call today at 18:00 p.m. Moscow time (4:00 p.m. London time, 11 a.m. New York time) to review Mechel's financial results and comment on current operations. The call may be accessed via the Internet at http://www.mechel.com, under the Investor Relations section.

Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel and power. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

Attachments to the FY 2015 Earnings Press Release

Attachment A

Non-IFRS financial measures. This press release includes financial information prepared in accordance with International Financial Reporting Standards, or IFRS, as well as other financial measures referred to as non-IFRS. The non-IFRS financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS.

Adjusted EBITDA (EBITDA (a)) represents net income or loss before Depreciation, depletion and amortization, Foreign exchange loss (gain), Finance costs, Finance income, Net result on the disposal of non-current assets, Impairment of goodwill and other non-current assets, Allowance for doubtful accounts,  Write-offs of inventories to net realisable value, (Profit) loss after tax for the year from discontinued operations, net, Net result on the disposal of subsidiaries, Amount attributable to non-controlling interests, Income taxes, Loss (profit) from pension obligations, Fines and penalties, Gain from accounts payable write-off and Other one-off items. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of our net revenues. Our adjusted EBITDA may not be similar to EBITDA measures of other companies. Adjusted EBITDA is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations. We believe that our adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While interest, depreciation and amortization are considered operating costs under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with non-current assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.

Adjusted net income / (loss) represents net income / (loss) before Impairment of goodwill and other non-current assets, Allowance for amounts due from related parties, (Profit) loss after tax for the year from discontinued operations, net, Net result on the disposal of subsidiaries, Effect on net profit (loss) attributable to non-controlling interests, Foreign exchange loss (gain), Loss (profit) from pension obligations, Fines and penalties, Gain from accounts payable write-off and Other one-off items. Our adjusted net income / (loss) may not be similar to adjusted net income / (loss) measures of other companies. Adjusted net income / (loss) is not a measurement under IFRS and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations. We believe that our adjusted net income / (loss) provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations. While impairment of goodwill and other non-current assets and allowance for amounts due from related parties are considered operating costs under IFRS, these expenses represent the non-cash current period allocation of costs associated with assets acquired or constructed in prior periods. Our adjusted net income / (loss) calculation is used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.

Our calculations of Net debt  and trade working capital are presented below:
Mln RUB   31.12.2015     31.12.2014     0 1. 0 1.201 4  
Short-term borrowings and current portion of long-term debt    444,199      371,903      265,026  
Interest payable    27,269      13,093      2,052  
Fines and penalties on overdue amounts    20,206      1,522      -   
Long-term debt   4,308     9,346     25,251  
Derivative instruments   -     -     823  
less Cash and cash equivalents   (3,079 )   (3,983 )   (8,979 )
Net debt, excluding finance lease liabilities   492,903     391,881     28 4 , 173  
Finance lease liabilities, current portion   13,507     15,213     10,809  
Finance lease liabilities, non-current portion   481     146     2,973  
Net debt   506,891     407,240     297, 955  
       
       
Mln RUB   31.12.2015     31.12.2014     0 1. 0 1.201 4  
Trade and other receivables   15,981     19,808     22,477  
Due from related parties, net of allowance   96     138     196  
Inventories   35,189     36,337     46,629  
Other current assets   8,127     8,750     7,225  
Trade current assets   59,393     65,033     76,527  
Trade and other payables   54,524     61,493     51,973  
Advances received   3,492     4,286     4,290  
Provisions and other current liabilities   2,558     2,166     1,560  
Taxes and social charges payable   8,034     9,647     7,440  
Due to related parties   78     44     1,024  
Trade current liabilities   68,686     77,636     66,287  
       
Trade working capital   (9,293 )   (12,603 )   10,240  
 

 Calculations of Net debt could differ from indicators calculated in accordance with loan agreements upon dependence on definitions in such agreements.

Adjusted EBITDA can be reconciled to our consolidated statements of operations as follows:
  Consolidated Results   Mining Segment **   Steel Segment **   Power Segment **
Mln RUB 12m 2015 12m 2014   12m 2015 12m 2014   12m 2015 12m 2014   12m 2015 12m 2014
Net loss attributable to shareholders of Mechel PAO   (115,163 )   (132,704 )     (71,120 )   (86,787 )     (41,438 )   (45,356 )     (2,286 )   (651 )
Add:                      
Depreciation, depletion and amortization   14,085     14,429       9,106     8,747       4,650     5,391       329     291  
Foreign exchange loss (gain), net   71,106     103,176       49,872     70,553       21,122     32,910       111     (287 )
Finance costs   60,452     28,110       33,880     15,045       25,645     12,966       2,173     1,208  
Finance income   (183 )   (107 )     (1,030 )   (777 )     (344 )   (390 )     (55 )   (48 )
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, allowance for doubtful accounts and write-offs of inventories to net realisable value   4,772     12,710       900     1,357       2,122     10,658       1,751     696  
(Profit) loss after tax for the year from discontinued operations, net   (932 )   11,702       (764 )   13,141       (168 )   (1,468 )     -     29  
Net result on the disposal of subsidiaries   19     89       -     -       19     89       -     -  
Amount attributable to non-controlling interests   535     (1,263 )     (444 )   (971 )     812     (408 )     166     114  
Income taxes   8,322     (8,822 )     5,632     (8,435 )     2,794     (374 )     (103 )   (13 )
Loss (profit) from pension obligations   50     (6 )     125     (5 )     (81 )   (7 )     6     7  
Fines and penalties   1,598     915       707     755       890     189       -     (29 )
Gain from accounts payable write-off   (224 )   (38 )     (33 )   (2 )     (190 )   (35 )     (1 )   -  
Other one-off items   1,293     1,568       -     741       1,293     742       -     86  
Adjusted EBITDA   45,730     29,759       26,83 1     13,35 9       17,127     14,906       2,090     1,403  
Adjusted EBITDA, margin   18 %   12 %     25 %   13 %     11 %   10 %     5 %   3 %
                       
                       
Mln RUB 12m 2015 12m 2014   12m 2015 12m 2014   12m 2015 12m 2014   12m 2015 12m 2014
Net loss attributable to shareholders of Mechel PAO   (115,163 )   (132,704 )     (71,120 )   (86,787 )     (41,438 )   (45,356 )     (2,286 )   (651 )
Add:                      
Impairment of goodwill and other non-current assets   1,460     7,996       -     (19 )     16     8,015       1,444     -  
Allowance for amounts due from related parties   43     126       43     126       -     -       -     -  
(Profit) loss after tax for the year from discontinued operations, net   (932 )   11,702       (764 )   13,141       (168 )   (1,468 )     -     29  
Net result on the disposal of subsidiaries   19     89       -     -       19     89       -     -  
Effect on profit (loss) attributable to non-controlling interests   585     (433 )     -     -       560     (433 )     25     -  
Foreign exchange loss (gain), net   71,106     103,176       49,872     70,553       21,122     32,910       111     (287 )
Loss (profit) from pension obligations   50     (6 )     125     (5 )     (81 )   (7 )     6     7  
Fines and penalties   1,598     915       707     755       890     189       -     (29 )
Gain from accounts payable write-off   (224 )   (38 )     (33 )   (2 )     (190 )   (35 )     (1 )   -  
Other one-off items   1,293     1,568       -     741       1,293     742       -     85  
Adjusted net (loss) income, net of income tax   (40,1 65 )   (7,609 )     (21,170 )   (1,498 )     (17,9 78 )   (5,355 )     (7 01 )   (846 )
                       
Operating profit (loss)   24,068     887       15,895     1,718       8,456     (1,347 )     35     424  
Add:                      
Impairment of goodwill and other non-current assets   1,460     7,996       -     (19 )     16     8,015       1,444     -  
Allowance for amounts due from related parties   43     126       43     126       -     -       -     -  
Loss on write-off of property, plant and equipment   691     661       199     309       492     242       -     110  
Loss (profit) from pension obligations   50     (6 )     125     (5 )     (81 )   (7 )     6     7  
Fines and penalties   1,598     915       707     755       890     189       -     (29 )
Other one-off items   1,293     1,568       -     741       1,293     742       -     85  
Adjusted operating income   29,203     12,147       16,969     3,624       11,066     7,834       1,486     597  
 ** including intersegment operations                      
                       

Attachment B

Consolidated statement of financial position (All amounts are in millions of Russian rubles)
    December 31, 2015   December 31, 2014   January 1, 2014
Assets            
Current assets            
Cash and cash equivalents     3,079       3,983       8,979  
Trade and other receivables     15,981       19,809       22,477  
Due from related parties, net of allowance     96       138       196  
Inventories     35,189       36,337       46,629  
Income tax receivables     603       578       2,936  
Other current financial assets     45       186       360  
Other current assets     8,127       8,750       7,225  
Total current assets     63,120       69,781       88,802  
             
Assets of disposal group classified as held for sale     -       8,696       -  
             
Non-current assets            
Property, plant and equipment     215,844       224,299       226,253  
Mineral licenses     38,517       40,122       51,727  
Non-current financial assets     194       489       543  
Investments in associates     284       274       251  
Deferred tax assets     1,492       1,438       517  
Goodwill     21,378       22,697       22,520  
Other non-current assets     1,243       1,462       2,481  
Total non-current assets     278,952       290,781       304,292  
Total assets     342,072       369,258       393,094  
             
Equity and liabilities            
Current liabilities            
Interest-bearing loans and borrowings, including Interest payable, fines and penalties on overdue amounts of RUB 47,475 million, RUB 14,615 million and RUB 2,052 million as of December 31, 2015, 2014 and January 1, 2014     491,674       386,518       267,078  
Trade and other payables     54,524       61,493       51,973  
Advances received     3,492       4,286       4,290  
Due to related parties     78       44       1,024  
Provisions     2,532       2,130       1,531  
Pension obligations     1,120       1,072       877  
Finance lease liabilities     13,507       15,213       10,809  
Income tax payable     5,549       3,033       3,173  
Tax payable other than income tax     8,034       9,647       7,440  
Other current liabilities     26       36       29  
Total current liabilities     580,536       483,472       348,224  
             
Liabilities of disposal group classified as held for sale     -       8,607       -  
             
Non-current liabilities            
Interest-bearing loans and borrowings     4,308       9,346       25,251  
Provisions     3,439       2,998       4,303  
Pension obligations     3,746       3,445       4,903  
Finance lease liabilities     481       146       2,973  
Deferred tax liabilities     11,090       3,053       17,475  
Other non-current liabilities     189       1,157       3,453  
Income tax payable     137       3,447       -  
Total non-current liabilities     23,390       23,592       58,358  
Total liabilities     603,926       515,671       406,582  
             
Equity            
Common shares     4,163       4,163       4,163  
Preferred shares     833       833       833  
Additional paid-in capital     28,322       25,592       25,591  
Accumulated other comprehensive income (loss)     445       1,018       (11 )
Accumulated deficit     (301,565 )     (186,272 )     (53,564 )
Equity attributable to equity shareholders of Mechel PAO     (267,802 )     (154,666 )     (22,988 )
             
Non-controlling interests     5,948       8,253       9,500  
Total equity     (261,854 )     (146,413 )     (13,488 )
Total equity and liabilities     342,072       369,258       393,094  
 

Consolidated statement of profit (loss) and other comprehensive income (loss) (All amounts are in millions of Russian rubles)
    Year endedDecember 31,2015   Year endedDecember 31,2014
Continuing operations        
Revenue     253,141       243,992  
Cost of goods sold     (151,334 )     (153,057 )
Gross profit     101,807       90,935  
         
Selling and distribution expenses     (51,117 )     (55,661 )
Loss on write-off of property, plant and equipment     (691 )     (661 )
Impairment of goodwill and other non-current assets     (1,460 )     (7,996 )
Allowance for doubtful accounts     (1,464 )     (3,671 )
Taxes other than income taxes     (5,853 )     (6,469 )
Allowance for amounts due from related parties     (43 )     (126 )
Administrative and other operating expenses     (17,300 )     (16,315 )
Other operating income     189       851  
Total selling, distribution and operating expenses, net     (77,739 )     (90,048 )
Operating profit     24,068       887  
         
Finance income     183       107  
Finance costs     (60,452 )     (28,110 )
Foreign exchange gain (loss), net     (71,106 )     (103,176 )
Share of profit of associates     -       7  
Other income     526       684  
Other expenses     (347 )     (1,486 )
Total other income and (expense), net     (131,196 )     (131,974 )
Loss before tax from continuing operations     (107,128 )     (131,087 )
         
Income tax (expense) benefit     (8,322 )     8,822  
Loss for the year from continuing operations     (115,450 )     (122,265 )
         
Discontinued operations        
Profit (loss) after tax for the year from discontinued operations, net     822       (11,702 )
Loss for the year     (114,628 )     (133,967 )
         
Attributable to:        
Equity holders of the parent     (115,163 )     (132,704 )
Non-controlling interests     535       (1,263 )

Other comprehensive income        
Other comprehensive income to be reclassified to profit or loss in subsequent periods, net of income tax:     295       1,170  
Exchange differences on translation of foreign operations     287       1,168  
Net gain on available for sale financial assets     8       2  
         
Other comprehensive loss not to be reclassified to profit or loss in subsequent periods, net of income tax:     (194 )     (127 )
Re-measurement losses on defined benefit plans     (194 )     (127 )
Other comprehensive income for the year, net of tax     101       1,043  
Total comprehensive loss for the year, net of tax     (114,527 )     (132,924 )
         
Attributable to:        
Equity holders of the parent     (115,064 )     (131,675 )
Non-controlling interests     537       (1,249 )
         
Earnings (loss) per share        
Weighted average number of common shares     416,270,745       416,270,745  
Basic and diluted, loss for the year attributable to ordinary equity holders of the parent     (276.65 )     (318.79 )
Loss per share from continuing operations (Russian rubles per share)  basic and diluted     (278.44 )     (289.96 )
Earnings (loss) per share from discontinued operations (Russian rubles per share)     1.79       (28.83 )
 

¿onsolidated statement of Cash Flows (All amounts are in millions of Russian rubles, unless stated otherwise)
    Year ended December 31,
      2015       2014  
Cash flows from operating activities        
Net loss     (114,628 )     (133,967 )
(Profit) loss from discontinuing operations, net of income tax     (822 )     11,702  
Net loss from continuing operations     (115,450 )     (122,265 )
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:        
Depreciation     12,397       12,639  
Depletion and amortization     1,688       1,790  
Foreign exchange loss     71,106       103,176  
Deferred income taxes     7,946       (15,525 )
Allowance for doubtful accounts     1,464       3,671  
Allowance for amounts due from related parties     43       126  
Write-off of accounts receivable     247       185  
Write-off of taxes receivable     -       1,605  
Write-offs of inventories to net realisable value     1,003       394  
Revision in estimated cash flows of rehabilitation provision     (47 )     (236 )
Loss on write-off of property, plant and equipment     691       661  
Impairment of goodwill and non-current assets     1,460       7,996  
Loss (gain) on sale of property, plant and equipment     102       85  
Gain on sale of investments     -       (483 )
Gain on accounts payable with expired legal term     (222 )     (37 )
Pension benefit plan curtailment gain     (142 )     (58 )
Pension service cost and actuarial loss, other expenses     192       52  
Finance income     (183 )     (107 )
Finance costs     60,452       28,110  
Other     480       1,492  
Changes in working capital items :        
Trade and other receivables     4,719       2,089  
Inventories     1,873       14,565  
Trade and other payables     (7,972 )     (1,640 )
Advances received     (664 )     62  
Taxes payable and other current liabilities     (1,465 )     8,771  
Settlements with related parties     (275 )     (29 )
Other current assets     997       (822 )
Interest received     25       22  
Interest paid     (28,910 )     (14,963 )
Income taxes paid     (1,437 )     (2,509 )
Net operating cash flows of discontinued operations     (136 )     (745 )
Net cash provided by operating activities     9,982       28,072  
Cash flows from investing activities        
Monthly installments for acquisition of DEMP   (4,819 )     (3,223 )  
Proceeds from disposal of securities   143       538    
Loans issued and other investments   (6 )     (36 )  
Proceeds from disposal of Bluestone   101       -    
Proceeds from disposal of subsidiaries   76       632    
Purchases avaliable for sale securities   -       (113 )  
Proceeds from loans issued   15       151    
Proceeds from disposals of property, plant and equipment   405       830    
Purchases of property, plant and equipment   (5,076 )     (11,365 )  
Purchases of mineral licenses and other related payments   (71 )     -    
Interest paid, capitalized   (830 )     (5,141 )  
Net investing cash flows of discontinued operations   -       (12 )  
Net cash used in investing activities   (10,062 )     (17,739 )  
         
Cash flows from financing activities        
Proceeds from borrowings   13,875       64,469    
Repayment of borrowings   (11,896 )     (77,761 )  
Dividends paid   (4 )     (4 )  
Dividends paid to noncontrolling interest   (1 )     (6 )  
Acquisition of noncontrolling interest in subsidiaries   (1 )     (1,425 )  
Repayment of obligations under finance lease   (2,677 )     (1,863 )  
Sale leaseback proceeds   -       675    
Net financing cash flows of discontinued operations   -       (105 )  
Net cash used in financing activities   (704 )     (16,020 )  
         
Effect of exchange rate changes on cash and cash equivalents   331       901    
Net decrease in cash and cash equivalents   (453 )     (4,786 )  
         
Cash and cash equivalents at beginning of period   1,344       6,130    
Cash and cash equivalents at end of period   891       1,344    

Alexey LukashovDirector of Investor RelationsMechel PAOPhone: 7-495-221-88-88Fax: 7-495-221-88-00alexey.lukashov@mechel.com

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