CIS Metals Summit 2007

Important changes are taking place in the metals sector today. The industry continues to consolidate: there is more integration along the value chain, cross regional alliances are more common and leading steelmakers continue acquire coal and iron ore mines in an effort to control their raw materials costs. In response to growing market demands, industry leaders have started restructuring their production facilities and major investments have been made by Russian metals producers to improve quality and efficiency. With both volumes and values production figures rising steadily over the last few years, many western companies are now looking at possibilities to develop the CIS market and to build upon high quality resources.

The EVENT: Now in its 12th successful year, with more then 350+ delegates attending annually from all over the world, and a consistently exceptional speaker faculty, the CIS Metals Summit is well-established as the most prestigious annual event for both CIS and international metals industry professionals. The CIS Metals Summit - 2007 has been designed for you as a high-level strategic conference, aimed at generating both creative and practical ideas.

Highlights for 2007 summit

After the Arcelor-Mittal merger, the global distribution prospects for Arcelor look very bright. Now that the company has become the largest steelmaker in the world (by turnover as well as by volume), what will the new Arcelor sales strategy be? Will the acquisition contribute to supplying Arcelor’s clients’ growing global needs? Mr Jacques Dham CEO of Arcelor Distribution will share his vision on how Arcelor’s sales policy will develop in the forthcoming year.

The Evraz Group, one of the leading vertically-integrated steel production and mining businesses in Russia, aims to develop new markets and strengthen its position as a world class steel producer. Mr Aleksander Sorokin Director of Overseas Operations at Evrazholding will present a practical case study of managing successful growth strategies in export markets.

Russia's steel sector has already begun consolidating, but analysts are expecting continued. M&A activity in the industry. What are the factors driving vertical integration in the industry? Mr Frank Pannier, General Manager, Mergers and Acquisitions, Mittal Steel Kryvyi Rih will analyse recent M&A activities in the sector.

How to build quality operations in terms of both scale and product quality? Mr Vitaly Sadikov GD of ChTPZ Group will speak about the challenges of investing into expansion and technological modernisation of production facilities.

Companhia Vale do Rio Doce is the world’s largest producer and exporter of iron ore and one of the largest mining companies in the world. Mr Peter Poppinga senior MD of CVRD International SA will explain why he believes CVRD will continue to benefit from its strong, globally competitive position for the foreseeable future.

Metalloinvest is planning to invest $3 bln in upgrades up to 2015. Mr Maxim Basov 1st deputy GD of Metalloinvest will discuss Metalloinvest’s corporate investment strategy in more detail.

SoyuzMetallResource (Basic Element Holding) is one of the leading Russian holding companies with interests in non-ferrous metallurgy. Mr Geoff Cowley CEO of SoyuzMetallResource will share his extensive experience in the industry and speak about their corporate strategic investments.

The current dynamics of structural change in the European steel sector are remarkable: Western European steel-consuming industries are turning East while East European steel producers (including Russia and the Ukraine) are turning West. What will the structure of the global steel industry be in 10 years time? Mr Juergen Nusser GD of Bundesverband Deutscher Stahlhandel and Vice President of Eurometal will present his view on current trends in and future prospects for the global steel market.

Should strategies always be geared towards increasing volumes? MMK has been implementing a long-term program of modernization and cost optimization. The company is increasingly shifting its focus to the production of higher value-added products using state- of-the-art environmentally-friendly and power-saving processes. Mr Igor Vier VP for Commerce of MMK Managing Company will speak about the company’s planned investments in its modernization program.

Mechel is one of Russia’s leading mining and metals companies, involved in the production of coal, iron ore, nickel steel, rolled products, and hardware. Mr Anton Vishanenko senior VP Finance of Mechel will discuss how Mechel intends to successfully implement its strategy of financial development and to further strengthen its market position.

Conference focus

Special Focus Day
Delivering on Strategic and Investment Objectives: a whole day entirely devoted to case studies, best practices and strategies for success for investing into efficiency improvements, modernization of production facilities, and for building optimal financial strategies to support expansion plans.

Spotlight on Raw Materials Sourcing
This spotlight session will be run in two parallel streams, providing the opportunity to hear in-depth analysis of optimal sourcing strategies for both the non-ferrous and the ferrous metals industries

Spotlight on Optimising Sales Policy
This session will focus on building up a professional sales office network in CIS markets and the competition between independent servicing companies and steel company trading houses

In-depth Session on Growth Strategies for Export Markets with analysis of existing opportunities in Asian markets, in the Middle East, Africa and Europe.

Participants
Partial list of participants is as under
• Comtech
• Estar Holding
• INPROM Khartsysky Pipe Works
• MAIR Group
• Rusal
• Severstal - Invest
• Severstal – Resurs
• Sokolov-Sarabay Mining and Metal-Enriching Company
• Steel Industrial Company
• TMK
• UGMK Holding;
• Aricom plc
• CVRD International SA
• Nippon Steel Corporation
• ThyssenKrupp;
• Fitch Ratings
• International Financial Corporation
• Iron and Steel Statistics Bureau
• Koch & Trading
• KSLP
• Ministry of Industrial Policy in Ukraine

Program

Day One: 12th February 2007

08:15 Registration and refreshments

09:00 Chairman’s welcome and opening remarks

Delivering on Strategic and Investment Objectives

09:10 SESSION ONE: Investing in Operational Excellence

How to build quality operations in terms of both scale and product quality? Challenges and opportunities for reducing costs, simplifying supply chain and increasing efficiency for metal production and mining operations
Record production business model: should strategies always be geared towards increasing volumes? Addressing the issue of commodity vs. quality
Case Study: investing into expansion and the technological modernization of production facilities. Targeting a reduction in energy consumption
Growth through effectively executing projects. Case Study: developing the culture of quality and efficiency by introducing 6 Sigma methodology
Case Study: improving corporate governance and board efficiency issues
Case Study: improving efficiency by the higher utilisation of available capacity and brownfield capacity growth
Case Study: achieving higher profitability in mining operations

11:00 Morning Coffee and Networking Break

Investment and Financial Management

11:30 SESSION TWO: Corporate Strategic Investments

What are the factors driving vertical integration in the industry? Analysing consolidation on a national level. Evaluating the economic rationale for international expansion and foreign acquisitions. Case Study: building a fully self-sufficient vertically-integrated holding company

Why is steel becoming more attractive for investors? How quickly will the steel industry consolidate? Analysis of recent M&A activities

Analysing alternative opportunities for expansion (other then acquisition): joint ventures vs. greenfield investments

13:00 Luncheon

14:30 SESSION THREE: Investment Strategy and Sources of Financing

How can successful strategies, focused on improving company efficiency, increase company value and influence the perceptions of financial market and rating agencies?
What are the traditional sources of financing for the industry? Case Study: building an optimal financial strategy for a metals company

Overview of capital markets development: how are CIS metal companies using the capital markets to raise money? Planned IPO placements: opportunities and forecasts. Analysis of current investor appetite for exposure to the CIS metals sector.

The role of both international and local banks in financing the sector. Case Study: prospects for project financing in the CIS metals industry

Case Study: the role of strategic investors in supporting the CIS metals industry

17:00 Chairman’s Summary of Day One

17:15 Welcome Drinks Reception

Day TWO: 13th February 2007

08:30 Registration and refreshments

09:00 Chairman’s opening address

Optimising Market Operations

09:10 SESSION FOUR: Current Opportunities in the CIS Metals Market – Trends and Forecasts

Local market trends and development: how far can CIS companies’ domestic distribution activities benefit from strong economic growth?

Key characteristics of the market and growth projections for selected sectors (ferrous, non-ferrous, tube and pipe industries). What is the role of integrated holding companies in developing the potential of the industry?

Overview of domestic market demand: how are the construction, housing and automotive industries driving domestic consumption? Case Study: what impact will changing trends in the automotive sector have on suppliers in the steel, aluminium and other metals industries?

What are the prospects for steelmakers in the construction industry?

Assessing the potential of other end-user industries and adjusting the product mix to meet new market demands

10:30 Morning Coffee and Networking Break

11:00 SESSION FIVE: Growth Strategies for Export Markets

Key Note: The CIS metals industry in the context of the global market

International trade dynamics: import and export figures, pricing trends, emerging products, emerging markets. What impact will WTO accession have on the export policies of CIS metal producers?

Trade wars and trade restrictions: analysing the latest developments in steel quotas, tariffs and anti-dumping measures. Europe & the USA: overview of current trading activity and future trends

Will rising demand for more sophisticated products increase the need for further downstream processing and distribution? Case Study: securing export markets by investing in high quality downstream production

Can Russian steel still compete in Asian markets? To what extent is China’s growing steel industry threatening the position of CIS companies in international markets? China’s significance as a consumer in the global market

Capturing growth opportunities in new export markets. Case Study: opportunities for Russian steel sales in the Middle East and Africa

13:00 Luncheon

14:15 SESSION SIX: Special Focus on Sales Policy

How to achieve growth in volumes by aligning marketing activities to reflect different customers requirements? Case Study: acquiring preferred supplier status and building customer loyalty

Case Study: building up a professional sales office network in CIS markets

Case Study: international player perspective - how to successfully shape distribution networks to adapt to the growth of regional economies and changing demand structure

The development of metal servicing companies. Analysis of the competition between independent servicing companies and steel company trading houses in national markets. Will the biggest servicing companies become a likely target for acquisition for both local and global steel producers in the next 2-3 years?

Optimising transport and logistic operations to keep up with increased sales volumes

16:00 Afternoon Tea and Networking Break

16:20 SESSION SEVEN: INTERACTIVE DISCUSSION on Effective Pricing and Margin

Overview of the supply and demand balance for key commodities including steel, stainless steel and aluminium. How significantly does price volatility influence profitability of steel production and trading?

How to manage pricing and margins effectively during periods of high price volatility? What financial tools are available to help manage price risk?

How to maintain financial stability during periods of high capital investment?

How to deal with the unpredictable costs of raw materials?

17:30 Chairman’s Summary of Day Two

17:45 Gala Drinks Reception

Day THREE: 14th February 2007

09:00 Registration and refreshments

09:30 Chairman’s opening address

09:40 SESSION EIGHT: Spotlight on Raw Materials Sourcing

Stream A: Raw Materials for the Ferrous Metals Industry – Optimal Sourcing Strategies

How competitive is the CIS ferrous metals industry in the global market in terms of the scale, diversity and the quality of its resources?

Case Study: аcquisitions of high quality upstream assets as a means of controlling raw material costs

The iron ore market in the CIS: current trends and future prospects; production costs and quality issues. What impact will the changing structure of the global iron ore market have on CIS companies?

HBI/DRI and Pig Iron: overview of production, consumption and trade developments

Scrap: what role does the CIS play in the global scrap market? How does growing steel-making capacity drive demand for scrap and influence price volatility?

Outlook and pricing forecast for the metallurgical coal market. Overview of steelmakers’ investments in coke capacity to increase self-sufficiency

Addressing infrastructure development and logistics issues

Stream B: Raw Materials for the Non-Ferrous Industry- Exploration and Mining Development

How essential is it to invest in raw material assets to create a strong, stable operating base?

Case Study: increasing investments in non-ferrous metal resources by acquiring equity positions in exploration and mining projects

Case Study: forming joint ventures with Western partners as an effective sourcing strategy

Case Study: is it essential for CIS companies to become global operators in order to stay competitive?

Case Study of a successful exploration and mining project (Copper/ Zinc/Titanium)

What are current environmental considerations in mineral exploration, and in the processing and transportation of mineral resources?

13:00 Luncheon

14:15 SESSION NINE: Tube and Pipe Industry Development

An overview of the welded, seamless and non-ferrous tube and pipe industry in the CIS: current status and development prospects

What are the main challenges that CIS companies face in international markets? Analysing the growing competition from China, recent anti-dumping investigations and trading issues between Russia and Ukraine

An overview of domestic market consumption. What are the prospects for further development of the local market? Will the market demand for OCTG and line pipe products, fuelled by growing energy prices, remain high in the next few years?

Case Study: leveraging market growth by investing in the modernisation of production facilities both to increase capacity and improve pipe quality

Case Study: enhancing the product portfolio by shifting towards value-added products to meet future market requirements and achieve higher margins

Will CIS steel tube/pipe companies become a target for investors in the next few years?

16:40 Chairman’s Conclusions

17:00 Close of the Summit

How to Participate

Adam Smith Conference’s is offering a special 10% discount to SteelGuru subscribers.

Register before 12 January 2007 and receive an extra £100 discount!

To claim this extra discount please quote special code SGMRC in your registration form.

* This discount is not valid for persons who have already registered to participate at this conference and/or seminar(s). All discounts can only be applied at the time of registration and cannot be combined. All discounts are subject to approval.

Venue
Marriott Grand Hotel in Moscow, Russia

Contact details
View the program at: http://www.adamsmithconferences.com/ms8sges

For any query, please contact
Tel.: + 44 20 701747434
Fax: + 44 20 75050079
Email: metals@adamsmithconferences.com