Investor presentation January 2015 Disclaimer This document does - PowerPoint PPT Presentation

Investor presentation January 2015

Disclaimer 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 EVRAZ plc (“EVRAZ”) or any of its subsidiaries in any jurisdiction (including, without limitation, EVRAZ Group S.A.) (collect ive ly, the “Group”) 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 EVRAZ, the Group 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. This document contains “forward - looking statements”, which include all statements other than statements of historical facts, inc luding, without limitation, any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “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 Group’s control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of 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 the Group’s shares or GDRs, financi al risk management and the impact of general business and global economic conditions. Such forward- looking statements are based on numerous assumptions regarding the Group’s present and future business strategies a nd the environment in which the Group will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and each of EVRAZ and the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in EVRAZ’s or the Group’s expectations with regard thereto or any change in events, conditions or circumst ances on which any such statements are based. Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward- looking statements contained in this document. The information contained in this document is provided as at the date of this document and is subject to change without notice. Investor presentation, January 2015 1

One of the world’s largest vertically integrated steel and mining companies  Top-20 steel producer in the world based on crude Map of EVRAZ operations steel production  Leader in Russian and CIS construction steel products NTMK Moscow  Camrose ZSMK Global leader in railway product markets Timir Red Deer KGOK Calgary Regina DMZ Evrazruda  No 1 producer of rails and large diameter pipes in Chicago Sukha Portland Balka Pueblo Stratcor North America  Listed in the London Stock Exchange; constituent of the FTSE 250 index Legend  Steel production EVRAZ employs more than 90,000 people Iron ore mining Coal mining Highveld Steel and Vanadium Vanadium production Logistics and Trading Key operational indicators, mtpa Key financial indicators, $m (IFRS) 2013 2014 2013 1H 2014 Crude steel Production Revenue 16.1 15.5 14,411 6,805 (1) (2) Iron ore EBITDA 22.6 22.8 1,821 1,080 Dividends paid Raw coking coal 18.9 21.1 - 90.4 (3) Net debt 6,534 6,095 (1) Total EVRAZ’s Iron ore saleable products (2) EBITDA represents profit from operations plus depreciation and amortization, impairment of assets, loss (gain) on disposal of PP&E and foreign exchange loss (gain) (3) Net Debt represents long-term loans, net of current portion, plus short-term loans and current portion of long term loans less cash and cash equivalents (excluding restricted deposits). Investor presentation, January 2015 2

Segmental and Geographical Overview

Steel: consolidated production  Decrease in consolidated crude steel and steel product output y-o-y as a result of the disposal of EVRAZ Vitkovice Steel and the shutdown of EVRAZ Claymont  Growth in production of semi-finished goods driven by the rouble devaluation  6% increase q-o-q in production of steel products, net of re-rolled volumes, mostly driven by a higher production of semi-finished products due to more profitable export shipments of billets and slabs  Seasonally weaker demand in Q4 2014 for construction products in Russia and decreased orders from Russian railcar producers  The EVRAZ Caspian Steel rolling mill in Kazakhstan was commissioned and began mass production of rebars from EVRAZ ZSMK’s billets Production of steel and steel products 2013 vs 2014, kt Production of steel and steel products 3Q vs 4Q 2014, kt 3,859 3,884 16,121 15,535 Other steel products Other steel products 3,613 14,683 3,408 156 13,949 825 152 279 Tubular products 618 936 Tubular products 257 224 1,065 221 1,989 1,017 377 Flat-rolled products 410 Flat-rolled products 1,830 1,903 Railway products 1,250 Railway products 1,302 5,105 5,186 Construction Construction products products Semi-finished 1,327 Semi-finished 1,066 products 4,314 3,843 products Crude Steel Crude Steel 3Q2014 4Q2014 2013 2014 Source: Company data Investor presentation, January 2015 4

Steel: Russia Billet prices  Crude steel and steel products output was broadly flat 600 in 2014 vs 2013  2014 production of semi-finished products increased 550 by 6% with production of finished steel products 500 decreasing by 4%, due to higher export sales driven 450 by weakening Russian rouble  Construction product volumes were stable despite 400 increased competition, due to strong demand and 350 lower imports  Average cash cost of slabs was $292/t in H1 2014 Billet CFR East Asia import $/t Billet FOB Black Sea export $/t Production of steel and steel products, kt Rebar prices 30.26RUB/$ 33.46RUB/$ 55.54RUB/$ 800 27,000 11,798 11,904 750 26,000 700 10,799 10,795 25,000 650 RUB/t 529 687 600 24,000 Other steel products $/t 1,292 1,409 550 23,000 500 Railway products 450 22,000 4,187 400 4,185 Construction products 21,000 350 300 20,000 Semi-finished products Jan-13 Feb-13 Mar-14 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Crude steel 4,787 4,517 Rebar, CPT Moscow USD/t (lhs) RUB/USD 2013 2014 Rebar, CPT Moscow RUB/t (rhs) Source: Company data, Metal Expert Investor presentation, January 2015 5

Steel: North America Share of announced LD pipe projects by region**  No 1 producer of rail and large diameter pipe in North America  Diversified product portfolio enhanced by targeted investments into quality and product expansion 75%  Strong customer relationships  Asset optimisation programme complete including suspension of unprofitable EVRAZ Claymont operations 8%  Increase of production of steel products by 4% in 2014 vs 2013 12%  14% growth in production of tubular products driven by strong 3% demand for small diameter pipe and operational improvements implemented at EVRAZ North America’s OCTG facilities 2%  2.5% y-o-y increase in production of LD pipes due to another EVRAZ LD pipe mills strong year for large diameter market LD pipe mills of peers Share of LD pipe project Production of steel and steel products, kt Market steel prices, $/t 1000 2,548 900 2,447 324 800 348 1,999 1,940 Construction products 700 537 493 Railway products 600 621 665 Flat-rolled products 500 Tubular products 400 Crude steel 1,065 300 940 200 2013 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 2013* 2014 Source: Company data, North American Steel Market Tracker *Production volumes excluding EVRAZ Claymont Plate Wire rod Scrap, shredded, Midwest ** Total demand in 2014-2017 = 5.5mt Investor presentation, January 2015 6