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On October 28, Museum of Russian Impressionism (Moscow) welcomed SAP Value Award Ceremony for the first time ever.  See some scenes of the impressive event.

This event was the culmination of 3-months long contest. During this time period customers of SAP submitted nominations, a panel of experts reviewed the submissions and everybody had the opportunity to vote for winners

What was the result?  There were winners in 5 categories, plus one winner of a special audience choice award.

In the category Face to the Customer (best customer-orientation stories)
The winners are: Bashneft, KOMUS and Technodom Operator.

In the category Re-load Business» (massive unification of business-processes)
The winners are: DTEK Energo and Rusagro, Tele2.

In the category Excellence in Details (best stories in production and logistics)
The winners are: MosOblGas and OMK and Petersburg Metro.

In the category Expending Horizons  (next level of transformation)
The winners are: Aeroflot, Trade Company «Megapolis» and Russian Railways.

In the category Reliable Business Partner» (business-initiative in finance)
The winners are: Gazprom transgas Belarus, NLMK, SUEK and Federal Grid Company.

The Audience Choice Award was granted to DTEK Energo.

All success-stories of the winners on the web-site

In this blog we will provide details about NLMK’s winning submission:

Making management decisions better and faster with a new integrated platform based on SAP solutions for financial planning and profitability analysis

NLMK Group is a leading international manufacturer of high quality steel products with a vertically integrated business model. Mining and steelmaking are concentrated in cost-efficient regions; finished products are manufactured close to our main customers in Russia, North America, and the EU.

Thanks to our self-sufficiency in key raw materials and energy, coupled with the technological superiority of our production capacity, NLMK is one of the most efficient and profitable steelmakers in the world. NLMK has a diversified product mix, ensuring our leading position in local markets and high sales effectiveness. By leveraging its advantages – flexible production chain, balanced product mix, efficient sales system, and extensive customer base – the company is able to react quickly to continually changing market conditions.

 NLMK Overview

  • Name: NLMK PAO

  • Employees: 57,000; the company has assets in 13 countries around the world

  • Industry: Metal & Mining

  • Operating revenue: $8B (2015)

  • Partner company: Lipetsk, Russia

  • Web-site:


NLMK Group used to prepare budgets and plan/actual reports with different Excel models. US GAAP compliant consolidated statements were created with the SAP BCS system with data transformation from Russian Accounting Standards to US GAAP. Low analyticity and data comparability, high labor costs and long time frames required for budgeting and reporting delayed financial planning and evaluation so that the Group could not make swift decisions.

NLMK's vice-president for finance initiated implementation of the integrated platform based on SAP solutions for budgeting and consolidation.


to build a uniform system for budgeting and plan/actual reporting of the Group; to accelerate preparation of budget and consolidated financial statements.


This was the first full-scale implementation of the new SAP solution (BPC 10.1) in a large Russian industrial holding. Budget preparation and plan/actual reporting are processed in the SAP BPC environment. A uniform data model has been built for budgeting and financial consolidation. Consolidated IFRS-compliant financial statements are generated in the SAP BPC system, while data transformation between Russian Accounting Standards and US GAAP has been replaced with parallel IFRS-accounting with SAP ERP.  The project is seen as both large-scale and effective, and it features in the TOP-3 projects of the Group.

Integrated solutions: SAP BPC embedded & classic 10.1, SAP ERP (for the parallel accounting).


A new uniform information space has been created for business-planning and evaluation, allowing significant improvement in the plan and actual data response, accessibility, and comparability, while making management decisions on an entirely new level. Companies of the Group now have a uniform budgeting and accounting strategy in accordance with IFSR, and a uniform compliance procedure for budgeting, financial consolidation, and plan/actual reporting. All these improvements come with reduced labor costs for budget and report preparation and better budgeting.


The uniform platform based on SAP products has accelerated management processes in the Group, making business planning and evaluation, scenario planning, and simulation, faster and more accurate. It has extended data insights, ensuring regular discussion of the management of inventory and other aspects of Group working capital. Another key benefit is harmonization of the methodological approach to budgeting across companies of the Group. Integration and scalability of shared processes with Russian and global assets has also been provided.


  • The new platform helps to integrate scenario planning into the budget process and cut budget preparation time by 40 days.

  • The time required to prepare consolidated IFSR-compliant statements has been reduced by 10 days.

  • Labor costs for budget preparation and plan/actual evaluation have fallen by ~30 FTE.

  • The number of employees engaged in the budget process has reduced by ~1000 people.

NLMK Quote

Grigory Fedorishin, Vice President for Finance at NLMK Group: "The uniform information space offers exciting possibilities for NLMK Group to make smarter decisions faster."

Find more more information about how SAP supports Metals and  Mining industries.
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