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Efficient social investments in Russia:

OAO Severstal experience

24.09.2010

Presentation by: Maria MedvedevaHead of External Communications

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300 miles to the North from Moscow

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1993 -

Cherepovets

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17 Years Later - Global Operations

Dnepropetrovsk

Olenegorsk

Kostomuksha

Saint Petersburg

Vorkuta

Volgograd

Cherepovets

MoscowOrelDearborn Paris

Columbus Sparrows Point

Chita

Semey

Ulan Ude

Neryungri

Uаgadugu

Warren BresciaWheeling

Zwedru

Berezitovy

Friedens

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Overview 2009

• Over 90,000 employees across the globe.

• Public company listed on the London and Moscow Stock

Exchanges.

• Steel producer: ranking 1st among Russian companies, 2nd in

Italy, 4th in the US.

• Gold producer: ranking 2nd in Russia.

• Revenues of $13.05 bn. and EBITDA of $844 M.

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Corporate Social Responsibility

Priorities:

– Industrial Safety and Environmental Protection

– Development and Social Support of Personnel

– Contribution to Social and Economic Development in Regions of the Company’s Presence

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The number of orphans in Russia

740,000

3%

of the total child population

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"Road Home”: Start of the Project

prevention of Child Neglect and Social Orphanhood, finding homes for orphans

2006, Cherepovets

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2009

• 5,000+ calls to the Child hotline in Cherepovets

• Responded to over 800 threats to child safety

• Achieved 67% reduction in the number of children sent back to orphanages

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"Road Home”: Development in 2009

The Project grew into a long-term regional program

Vologda Regional Government

Foundation for the Support of Children in Difficult Life Situations

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Consolidated Budget of the Program in 2009

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The total number of the unemployed in Russia

6,2 MLN

8,2% of all employable population

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Cherepovets – “Mono-town”

Non-Commercial Partnership“Urban Development Agency”

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«Urban Development Agency»: Start of the Project

Support and development of small and medium businesses

1999, Cherepovets

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«Urban Development Agency»: Activity Directions

Educational programs

Free of charge training on the conduct of owning a business, workshops and exercises for entrepreneurs

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«Urban Development Agency»: Activity Directions

Information support

Advising entrepreneurs on legal, economic and other issues

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«Urban Development Agency»: Activity Directions

Property support

Provision of finished office space on preferred terms

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«Urban Development Agency»: Activity Directions

Support in the development of a business environment

Exhibitions, competitions, “roundtables”, business meetings, forums

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«Urban Development Agency»: Activity Directions

Financial support

Grants to new entrepreneurs for up to $9,500 and subsidies on loans taken out for business

development

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«Urban Development Agency»: Results of 2009

• 2,885 new jobs created.

• 661 businesses set up

• 1,170 first-time entrepreneurs trained.

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Thank you for your attention! I’ll be pleased to answer your questions

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Achieve more together

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