1Q2013 RESULTS PRESENTATION

1Q2013 RESULTS PRESENTATION JUNE 18, 2013

DISCLAIMER

This presentation 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

Mechel OAO (Mechel) or any of its subsidiaries in any jurisdiction or an inducement to

enter into investment activity. No part of this presentation, 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. Any purchase of securities should

be made solely on the basis of information Mechel files from time to time with the U.S.

Securities and Exchange Commission. 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 Mechel 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 presentation or its contents or otherwise arising in

connection with the presentation.

This presentation may contain projections or other forward-looking statements

regarding future events or the future financial performance of Mechel, as defined in

the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

We wish to caution you that these statements are only predictions and that actual

events or results may differ materially. We do not intend to update these statements.

We refer you to the documents Mechel files from time to time with the U.S. Securities

and Exchange Commission, including our Form 20-F. These documents contain and

identify important factors, including those contained in the section captioned “Risk

Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form

20-F, that could cause the actual results to differ materially from those contained in

our projections or forward-looking statements, including, among others, the

achievement of anticipated levels of profitability, growth, cost and synergy of our

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

our shares or ADRs, financial risk management and the impact of general business

and global economic conditions.

The information and opinions contained in this document are provided as at the date

of this presentation and are subject to change without notice

2

FINANCIAL HIGHLIGHTS

56% 58% 62% 58%

32% 31% 27% 31%

4% 2% 3% 2%8% 9% 8% 9%

1Q12 1Q13 4Q12 1Q13

Steel Mining Ferroalloys Power

SEGMENTS OVERVIEW

REVENUE FROM THIRD PARTIES EBITDA BY SEGMENTS

$ Mln

$ Mln

(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of

contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued

operations, net of income tax. 4

Steel Mining Ferroalloys Power

EBITDA(1) BY SEGMENTS

2,949 2,481 2,521 2,481

71

358

-7

29 37

487

115

302

-7

6-0,6

415

88

305

-3-6

5

388

98

33

-31

15 7

123

57

124

4 241

210

Steel Mining Ferroalloys Power Cons.adj. Consolidated

1Q12 2Q12 3Q12 4Q12 1Q13

1Q2012

6%

16%

80%

1Q2013

11% 2%

28% 59%

-2%

Consolidated revenue is flat q-o-q at $2.5 bn

As loss making steel assets are either disposed off or idled

steel segment decreased its share in the consolidated

revenue from 62% to 58% q-o-q

Mining segment continues to dominate the consolidated

EBITDA with its share of 59%

MINING SEGMENT

$ Mln

CASH COSTS, US$/TONNE COS STRUCTURE

$553 mn $527 mn

5

REVENUE, EBITDA(1)

945

895

781676

769

213193

168

143137

31%28%

32%

4%

14%

-10%

20%

50%

0

300

600

900

1,200

1Q12 2Q12 3Q12 4Q12 1Q13

Revenues (lhs) Intersegment revenues (lhs) Adj. EBITDA margin (rhs)

4236

45

100

4232

45

88

39

28

43

89

41

29

45

115

43

34

52

88

Coal SKCC Coal YU Iron Ore Bluestone

1Q12 2Q12 3Q12 4Q12 1Q13

50%44%

20%21%

10%12%

14% 15%

6% 8%

1Q12 1Q13

Other

Depreciation and depletion

Energy

Staff costs

Raw materials and purchased goods


contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposedcompanies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued

operations, net of income tax.

Improved spot pricing environment followed by increased

export sales led to 14% q-o-q revenue growth to $769 mn

…with EBITDA back with a 4x improvement!

Cash costs at Russian assets slightly up on seasonal

factors

Cash cost at Bluestone down q-o-q after re-launch of

idled mines

50%39% 37% 39%

19%

24%22%

24%

7%8%

11%8%

2%2% 3% 2%

8%8% 9% 8%

12%16% 16% 16%

2% 3% 2% 3%

1Q12 1Q13 4Q12 1Q13

Coking coal Anthracites and PCI Coke Coking products

Steam coal Iron ore Other

MINING SEGMENT

6

REVENUE BREAKDOWN BY REGION AVERAGE SALES PRICES FCA, US$/TONNE

*Restated to include middlings

EXTERNAL SALES STRUCTURE

263

142

101

54

82

236

129

96

49

84

229

122

80

4965

214

9369

51 59

207

95

6352

92

Coke Coking coal Anthracite and PCI Steam coal* Iron ore

1Q12 2Q12 3Q12 4Q12 1Q13

25% 29% 32% 29%

15%13%

14%13%

12% 3%5%

3%

28%33%

29%33%

10% 12% 10% 12%

5% 6% 7% 6%5% 4% 3% 4%

1Q12 1Q13 4Q12 1Q13

Russia Europe CIS China Asia w/o China Middle East Other

Coking coal sales up 22% q-o-q due to increase in export sales

to Asia on improved demand and pricing

Exports of anthracite and PCI grew by 23% as sales to Asian

markets and Brazil substantially increased

Iron ore average FCA price up 55% Q-o-Q

Share of Russia in sales continues to fall, as penetration into

new export markets grows.

STEEL SEGMENT

7


REVENUE, EBITDA(1)

$1,480 mn $1,248 mn

$ Mln

1,649

1,898

1,700

1,5571,430

79

67

5073

70

4%

6%

5%6%

4%

-5%

-2%

1%

4%

7%

10%

13%

0

500

1,000

1,500

2,000

1Q12 2Q12 3Q12 4Q12 1Q13


494 499 515

436 452470

409 431452

408437 444

407439 447

Billets* Wire Rod Rebar

1Q12 2Q12 3Q12 4Q12 1Q13

76% 76%

9% 9%

11% 10%

2% 2%2% 3%

1Q12 1Q13

Other

Depreciation

Energy

Staff costs


*Carbon and low-alloyed billets (1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of



Revenue down 8% q-o-q due to seasonal demand slowdown

Romanian plants disposal and cost control measures across

the board help to maintain profitability…

… resulting in 1Q13 EBITDA of $57 mn

Bottom line affected by $91 mn of one-off negative result

from disposal of Romanian assets

53%63% 61% 63%

21%

17% 20% 17%2%

5% 2% 5%8%

10% 13% 10%11%

4% 4% 4%5%1% 1%

1Q12 1Q13 4Q12 1Q13

Russia Europe Asia CIS Middle East Other

STEEL SEGMENT

8


EXTERNAL SALES STRUCTURE

18% 16% 16% 16%

24% 24% 26% 24%

3% 2% 2% 2%

17%15% 14% 15%

7%8% 7% 8%

13%13% 14% 13%

9%9% 8% 9%

9% 13% 13% 13%

1Q12 1Q13 4Q12 1Q13

Semi-finished steel products Rebar Stainless flat products

Carbon long products Forgings and stampings Hardware

Carbon flat Other

550

692

4303

2647

932 734551692

4195

3082

891724533

684

4038

2545

894700517

677

3910

2411

927

700492635

3999

2505

912

689

Semi-finished steel products

Rebar Stainless flat products

Forgings and stampings

Hardware Carbon flat

1Q12 2Q12 3Q12 4Q12 1Q13




Share of Europe falls to 17% as East-European business is

reduced and sales are shifted to a more buoyant Russian

market.

Disposal of Romanian assets, idling of DEMZ and cutting of

resale business with Estar result in a reduction in rebar, billet

and wire sales volumes, though compensated with higher

gross margin of 17%.


Nickel

N/A

FERROALLOYS SEGMENT

REVENUE, EBITDA(1)

Revenue down 21% q-o-q due to termination of Ni sales

Cash costs demonstrate moderate growth on higher

electricity tariff

Idled Ni production and trimmed chrome production support

economics of the segment with 5% EBITDA margin vs. -37%

in 4Q12

Adjusted net loss decreased 70% vs 4Q12

9

$ Mln

$168 mn $63 mn

125132

91

69

54

28 22

23

14

14-5% -5% -3%

-37%

5%

-50%

-30%

-10%

10%

30%

50%

70%

90%

0

50

100

150

200

1Q12 2Q12 3Q12 4Q12 1Q13


50%

22%

9%

9%

18%

30%

15%

28%

8% 11%

1Q12 1Q13

Other

Depreciation

Energy

Staff costs


1Q12 2Q12 3Q12 4Q12 1Q13

21.4K

19.1K

19.7K

N/A

877

2.06K

845

2.11K

848

2.10K

907

2.08K

961

2.12K

Ferrosilicon Chrome

172 149 151 113 127

Chrome Ore Concentrate




19,126

17,202

15,327 16,314

24%

44% 44% 44%

66% 16%

31%

16%

4%

13%

13%

13%

6%

27%

12%

27%

1Q12 1Q13 4Q12 1Q13

Russia Europe Asia Other

FERROALLOYS SEGMENT

10


EXTERNAL SALES STRUCTURE Export sales of FeSi grow from 21% in 4Q12 to 52% in 1Q13

as demand in Asia picks up

Cr sales volumes in line with production, dropping 41% q-o-q

as inventories are liquidated

As Ni plant is halted share of segment‟s sales to Europe

down from 66% to 16% with Russia and Asia taking over.

Adjustment of Cr operations result in higher Cr concentrate

sales, showing better economics.

1Q12 2Q12 3Q12 4Q12 1Q13

Nickel Ferrosilicon Chrome

56%

12%

12%

35%

27%

35%

26%

34%

42%

34%

5%

28%15%

28%

1% 3% 4% 3%

1Q12 1Q13 4Q12 1Q13

Nickel Ferrosilicon Chrome Chrome ore Other

1,309

1,227

1,299

1,254 1,242

2,184 2,218

1,928 1,891

1,998

N/A

POWER SEGMENT

11

AVERAGE ELECTRICITY SALES PRICES AND CASH COSTS (RUSSIA), US$/MWH COS STRUCTURE

REVENUE, EBITDA(1)

Financials improve due to high season for electricity and heat

consumption

• Revenue up by 3% q-o-q

• EBITDA up by 55% q-o-q to $24 mn

• Net income up to $7 mn vs net loss of $41 mn in 4Q12

$ Mln

51,7 53,5 54,7 53,856,2

25,828,0

30,1

24,5

26,2

1Q12 2Q12 3Q12 4Q12 1Q13

Sales price Cash costs

90% 89%

3% 4%5% 5%

1% 1%1% 1%

1Q12 1Q13

Other

Depreciation

Energy

Staff costs


$262 mn $255 mn

230168

140

220

227

136

113

109

126129

8%

2%

-2%

4%

7%

-5%-3%-1%1%3%5%7%9%11%13%15%17%19%

0

100

200

300

400

1Q12 2Q12 3Q12 4Q12 1Q13

Revenues (lhs) Intersegment revenues(lhs) Adj. EBITDA margin (rhs)




Consolidated P&L

12

REVENUE DYNAMICS REVENUE, EBITDA(1) AND NET PROFIT

Consolidated EBITDA up 71% q-o-q to $210 mn on better profitability in the mining, power and ferroalloys segments. Unaffected by any

one-off factors

1Q2013 net result affected by $91 mn of one-off negative result from disposal of Romanian assets and $75 mn of FX loss

1Q2013 FINANCIAL PERFORMANCE Q-O-Q HIGHLIGHTS:

$ Mln $ Mln

2,521 2,481

-67

26

0

1,000

2,000

3,000

4Q2012 Volume Price 1Q2013

29493093

27112521 2481

487 415 388123 210218

-823

55

-1114

-321

17%13% 14%

5%8%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

(1,200)

(700)

(200)

300

800

1,300

1,800

2,300

2,800

3,300

1Q12 2Q12 3Q12 4Q12 1Q13

Revenue (lhs) Adj. EBITDA (lhs) Net profit (lhs) Adj. EBITDA




Cash Flow Statements

13

OPERATING CASH FLOW DYNAMICS NET CASH FLOW

Continuing working capital management added another $51 mn to the CFO that totaled $69 mn in 1Q2013

Inventory reduction release another $155 million though almost offset by extension of payment terms to keep the sales up.

Investment cashflow at $192 mn in 1Q13, resulting only in an insignificant increase in debt thanks to ruble depreciation.

$ Mln FY’11* FY’12

341306

456

208

69

(50)

150

350

1Q12 2Q12 3Q12 4Q12 1Q13

1Q’13

399

1,311

69

(1,674)

(839)

(192)

2,079

(792)

50

Operating activities Investment activities Financial activities

* Excluding the effect of loan to Estar

Successful refinancing and improved liquidity to service upcoming maturities

Net debt stable, estimated at $9.55 bln (including financial lease)

as of June 1, 2013

Cash and available credit lines total $0.8 bln as of June 1, 2013

A new RUR 40 bln (~ $1.3 bln) 5 year facility from VTB and $1 bln

3–5 year credit lines from Gazprombank have substantially eased

the liquidity pressure from repayments in 2013 and were partially

applied to reduce debt service in 2014 – 2015

DEBT PROFILE AS OF JUNE 1, 2013

RUR 59%

USD 34%

EUR 7%

Other 0

Russian

Banks

62%

14

DEBT MATURITY SCHEDULE AS OF JUNE 1. 2013 WITH PRO FORMA* DEBT MATURITY SCHEDULE AS OF APRIL 10, 2013 WITH PRO FORMA

0 152 33 - 0

636

2,105 2,117

1,385 1,047

413

15

483 322

483

-

-

160

- -

-

-

-

127

140

86

51

37

15

1,090

2,761

2,525

1,919

1,083

427

0

500

1000

1500

2000

2500

3000

3500

10.4.13 2013 2014 2015 2016 2017 2018 and after

Renewable lines Other term loans

Expiration of put options on bonds Maturity of bonds

Expiration of financial lease

173

587

329

1,089

Cash

Other undrawn credit lines

ECA undrawn amount

Foreign

Banks

22%

Bonds

16%

0 123 84 - - - -

506

1,788 1,866 1,630

1,336

584

81

472 314

472

-

-

156

- -

-

-

-

97

139

86 51

37

15

965

2,483 2,267

2,153

1,373

598

0

500

1000

1500

2000

2500

3000

3500

1.6.13 2013 2014 2015 2016 2017 2018 and after

Renewable lines Other term loans

Expiration of put options on bonds Maturity of bonds

Expiration of financial lease

283

367

141

790

Cash

Other undrawn credit lines

ECA undrawn amount

* assuming refinancing of GBP lines according to the terms of executed

committed credit facilities

Revenue 2,481 2,521 -1.6%

Cost of sales (1,743) (1,882) -7.4%

Gross margin 29.8% 25.4%

Operating profit / (loss) 61 (933) -

Operating margin 2.5% -37.0%

Adjusted EBITDA(1) 210 123 70.7%

Adjusted EBITDA(1) margin 8.5% 4.9%

Net Income / (loss) (321) (1 114) -71.2%

Net Income margin -12.9% -44.2%

Sales volumes(2), „000 tonnes

Mining segment 6,060 5,570 8.8%

Steel segment 1,724 1,872 -7.9%

FINANCIAL RESULTS OVERVIEW

(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of contingent

liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued operations, net

of income tax.

(2) Includes sales to the external customers only

US$ MILLION UNLESS OTHERWISE STATED 1Q13 4Q12 CHANGE, %

15

1Q2013 RESULTS PRESENTATION

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