DISCLAIMER This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. This presentation is not an offer of securities for sale in the United States. The Company’s securities may not be offered or sold in the United States except pursuant to an exemption from, or transaction not subject to, the registration requirements of the United States Securities Act of 1933. This communication is directed solely at (i) persons outside the United Kingdom, or (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order and (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of the Company or any member of its group may otherwise lawfully be communicated or caused to be communicated (all such persons in (i)-(iv) above being “relevant persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with relevant persons. Any person who is not a relevant person should not act or rely on this communication. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with the document. The information contained herein has been prepared using information available to the Company at the time of preparation of the presentation. External or other factors may have impacted on the business of the Company and the content of this presentation, since its preparation. In addition all relevant information about the Company may not be included in this presentation. The information in this presentation has not been independently verified. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information contained herein and no reliance should be placed on such information. Neither the Company, nor any of its advisers, connected persons or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from this presentation or its contents. This presentation contains forward-looking statements, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words “targets,” “believes,” “expects,” “aims,” “intends,” “may,” “anticipates,” “would,” “could” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the Company’s actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward- looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any of such statements are based. THE RIGHT STRATEGY FOR A CHANGING WORLD 2 CORPORATE PRESENTATION. 1H 2011 RESULTS
TABLE OF CONTENTS METINVEST AT A GLANCE 4 OPERATIONAL REVIEW 13 FINANCIAL REVIEW 18 CORPORATE STRATEGY 21 24 APPENDICES THE RIGHT STRATEGY FOR A CHANGING WORLD 3 CORPORATE PRESENTATION. 1H 2011 RESULTS
CORPORATE PRESENTATION METINVEST AT A GLANCE
METINVEST IN BRIEF Leading vertically integrated steel producer in the CIS One of the largest steelmakers and iron ore producers in the CIS A top 25 steel producer and a top 10 iron ore producer in the world Vertically integrated from coal and iron ore to finished steel products Production facilities in Ukraine, the USA, the UK and Europe Major assets located in a low cost region with access to key growing markets 78% production of finished steel products in the mix Significant long-life self-sufficiency across key raw materials Prudent M&A strategy, effective integration and synergies delivery METINVEST AT A GLANCE 5 CORPORATE PRESENTATION. 1H 2011 RESULTS
1H 2011 HIGHLIGHTS Strong financial performance with robust top-line and bottom-line growth REVENUE AND EBITDA OVERVIEW US$ in millions EBITDA margin +28.6% 68% increase in adjusted EBITDA (1) y-o-y to US$2.0bn with margin of 28.6% EBITDA margin +29.3% 72% increase in consolidated revenues y-o-y 6,991 to US$7.0bn 4,076 2,000 118% increase in Net profit y-o-y to US$1.1bn 1,193 1H 2010 1H 2011 202% increase in CAPEX y-o-y to US$0.6bn Revenue EBITDA 78% increase in crude steel production y-o-y EBITDA_1H 2011 vs. 1H 2010 to 7.4 million tonnes US$ in millions 11% increase in coking coal (mined) y-o-y to 892 -1,135 423 5.5 million tonnes 2,735 -1,920 Issued US$750m 7-year Eurobond with 68 -256 coupon of 8.75% maturing on 14 Feb, 2018 2,000 1,193 Completed integration of Ilyich Iron and Steel EBITDA Steel Coke & coal Iron ore Eliminations Cost FOREX SG&A EBITDA Works into Metinvest business 1H 2010 revenue revenue revenue change expenses 1H 2011 (1) Adjusted EBITDA is calculated as profits before income tax before financial income and costs, depreciation and amortisation, impairment and devaluation of PPE, sponsorship and other charity payments, corporate overheads, share of result of associates and other non-core expenses METINVEST AT A GLANCE 6 CORPORATE PRESENTATION. 1H 2011 RESULTS
OVERVIEW OF METINVEST Simple operational model (1) – a foundation for our long-term market leadership Smart System Capital Clarendale 23.75% 71.25% 5.00% Holding Management Limited 1H 2011 results US$7.0bn consolidated revenue US$2.0bn consolidated adjusted EBITDA 112,000 employees (2) 28.6% EBITDA margin Iron Ore Coke & Coal Steel & Rolled Division Division Products Division Leading producer of iron ore in the CIS The largest coke producer in Ukraine One of the largest steel producer in the CIS with Top 10 iron ore producer in the world 75% self-sufficient in coking coal and steelmaking annual capacity to 15m tonnes 200% self-sufficient in iron ore for steel 100% self-sufficient in coke Top 25 steel producer in the world production 10.1m tonnes of coking coal and 2.9m 8.7m tonnes of crude steel produced in 2010 35.7m tonnes of iron ore concentrate tonnes of steam coal mined in 2010 7.4m tonnes of crude steel produced in 1H 2011 produced in 2010 5.5m tonnes of coking coal and 1.3m Produces 78% of finished steel products in the 17.8m tonnes of iron ore concentrate tonnes of steam coal mined in 1H 2011 mix produced in 1H 2011 CONTRIBUTION TO (3) (4) : CONTRIBUTION TO (3) (4) : CONTRIBUTION TO (3) (4) : 19.8% 73.2% Revenue Revenue 7.0% Revenue EBITDA 76.9% EBITDA 12.4% EBITDA 10.7% (1) The operational model is presented in accordance with the Note 5 “Segment information” on page 9 of the interim IFRS financial statements for the first half of 2011 issued by Metinvest B.V. Currently, Metinvest is in the process of transition to a new operational model and organisational structure that has been approved by the Supervisory Board on 1 October 2011 (2) Employee headcount as of 31 December 2010 (3) The contribution is to the total Sales from external customers, net of intersegment sales (4) The contribution is to the gross EBITDA, before deduction of corporate overheads and eliminations METINVEST AT A GLANCE 7 CORPORATE PRESENTATION. 1H 2011 RESULTS
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