NLMK

5-6 September 2013, London

Sberbank CIB One-on-One Conference "Russia: The Inside Track"

DISCLAIMER

This document is confidential and has been prepared by NLMK (the “Company”) solely for use at the investor presentation of the Company and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose.

This document 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 or Global Depositary Shares (GDSs), 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.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on assumptions made as to its completeness. No representation or warranty, express or implied, is given by the Company, its subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents.

The distribution of this document in other jurisdictions may be restricted by law and any person into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This document may include forward-looking statements. These forward-looking statements include matters that are not historical facts or statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the Company's actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in future periods. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation.

By attending this presentation you agree to be bound by the foregoing terms.

2

3

1. Business profile

2. Operating and financial profile

3. Strategy

BUSINESS PROFILE

4

• World’s leading steel producer with 17,2 mln t capacity o High quality steel producer with highest profitability

o Top 10 low cost steelmaker

o #1 in Russia with 20% of Russian steel output

o 70% growth in output during the last 5 years

• Balanced business model o Low cost raw materials with over 80% sufficiency in iron ore*

and scrap, and 100% sufficiency in coke concentrated in Russia

o Low cost steelmaking operations concentrated close to raw materials sources in Russia with BOF/EAF split of 80%/20%

o Downstream processing located close to end-users and integrated with the Russian steel platform

o 80-90% of finished steel products sold locally (area of production)

• Diversified product mix and sales structure o Flat/long products 85/15 with 40% value added steel products

o Presence in high growth (Russian construction) and mature markets (European and US manufacturing, automotive, etc.)

o International/Russian sales 68/32

• 2012 Operating highlights o 14,9 mln t of steel production, up 25%

o Revenue USD12.16 billion, up 8%

o 16% EBITDA margin

o Net debt/EBITDA: 1.88 with over $1 bn of cash

o The only M&M major in Russia with investment grade credit rating

* NLMK is 100% self-sufficient in iron ore concentrate and sinter. Pellets are currently purchased from 3rd parties.

23%

28%

19%

16%

8%

11% 9%

7%

0%

5%

10%

15%

20%

25%

30%

2009 2010 2011 2012

NLMK Global average

EBITDA MARGIN NLMK VS GLOBAL AVERAGE

Source: WSD, Company data

8,2 7,9 8,6 8,9 9,1 8,5 9,1 9,1 10,5 10,6 11,5 12,0

14,9

14%

20%

-2%

3%

8%

13%

18%

23%

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

NLMK crude steel production

NLMK share in Russian crude steel output

NLMK CRUDE STEEL PRODUCTION

m t

BALANCED AND FAVORABLY LOCATED ASSETS Russian production platform enhanced with international assets

2012 Crude steel production

2012 Steel products sales

NLMK Group 14.9 m t 15.2 m t

Moscow

Novolipetsk Sinter: 15 m tpa Coke: 2.6 m tpa Steel: 12.4 m tpa Flats: 5.7 m tpa

VIZ-Stal Transformer steel: 0.17 m tpa

Altai-Koks Coke: 4.66 m tpa

NLMK Europe Plates 3 rolling mills Thick plate about 2 m tpa

Belgium

France

Italy

Stoilensky Iron ore concentrate: 14 m tpa Sinter ore: 1.6 m tpa

Denmark

NLMK Europe Strip HRC 2.4 m tpa incl.: - Pickled 1.5 m tpa - CRC 0.8 m tpa - Galv. 0.7 m tpa - Pre-painted 0.1 m tpa

NLMK USA Strip 1 mini-mill & 2 rolling mills HRC 2.7 m tpa incl.: - CRC 0.7 m tpa - HDG 0.8 m tpa

RUSSIA

Czech Rep.

USA

NLMK Long products Steel : 2.2 m tpa Longs: 2 m tpa

5

Zhernovskoye (Feasibility study)

NLMK Kaluga Steel (EAF): 1.5 m tpa Longs: 0.9 m tpa

Usinsky-3 (Feasibility study)

- NLMK Group production and trading assets

- NLMK Europe and NLMK USA (acquired Steel Invest and Finance rolling facilities)

- Service centres - Licenses to develop coal deposits

EFFICIENT VERTICAL INTEGRATION

~85%*

~115%*

~85%**

56%***

0%

20%

40%

60%

80%

100%

120%

Iron ore Coke Scrap Electricity

SELF-SUFFICIENCY

* NLMK currently is over 100% self-sufficient in iron ore concentrate, sinter ore, sinter and coke. Pellets are purchased from 3rd parties. From 2016 Group to achieve 100% self-sufficiency in pellets.

** at Russian operations. *** at Novolipetsk 6

• Iron ore: 85% self-sufficiency*

o The Group is over 100% self-sufficient in iron ore concentrate with over 100 years of mine life

o One of the most efficient iron ore producer globally

• Coke: over 100% with modern facilities

• Scrap: largest collector in Russia

• Energy: 56% self-sufficiency ***

• Coal: portfolio of coal deposit rights give an option to increase self-sufficiency

Self-sufficiency in 2012

COAL PRICE: DOMESTIC VS INTERNATIONAL

50

100

150

200

250

300

350

Oct

-09

Jan

-10

Apr

-10

Jul-

10

Oct

-10

Jan

-11

Apr

-11

Jul-

11

Oct

-11

Jan

-12

Apr

-12

Jul-

12

Oct

-12

Jan

-13

Apr

-13

Jul-

13

Coking coal, Australia, FOB

Coking coal, Russia FCA

Source: Metal Bulletin, Metal Expert

200

250

300

350

400

450

500

550

600

650

3 123 236 342 454 546 632

NLMK Novolipetsk

Cumulative BOF capacities, mt/y

$/t

NLMK SLAB PRODUCTION COSTS VS GLOBAL

Source: WSD. Estimation of slab cash cost for BOF producers w/o overheads

Slab Price

DIVERSIFIED SALES

• Wide product mix with strong value-added share

• Rational export/domestic market balance

• Slabs sales hedged by overseas rolling operations

• Market penetration through constantly improving product mix and quality

• Niche product sales in focus of development (transformer steel, specialty thick plates, etc.)

Q2 ‘13 SALES AND REVENUE BY REGIONS

DIVERSIFIED SALES STRUCTURE

84%

20% 35%

10%

70% 35%

6% 10%

30%

0%

20%

40%

60%

80%

100%

NLMK Russia NLMK Europe NLMK USA

Other

Machinery

Construction

7

40%

20%

11%

9%

9%

11%

37%

16% 12%

11%

12%

12% Russia

Europe

N.America

Middle East

Asia

Other regions

Sales – outer circle

Revenue – inner circle

Total sales 3.77 million tonnes

SALES BY PRODUCT Q2 ‘13

Total revenue $2.83 million

NLMK’s segment’s sales to consuming industries. w/o international trading. 2011 data

2% 2%

2%

4%

8%

13%

6%

26%

10%

25%

2%

Metalware

Dynamo steel

Transformer steel

Pre-painted steel

Galvanized steel

CRC

Plate

HRC

Long products

Slabs

Pig iron

37% HVA products

HVA

1. Business profile

2. Operating and financial profile

3. Strategy

8

0,6

0,7

0,8

0,9

1

1,1

1,2

1,3

1,4

Jan

-12

Mar

-12

May

-12

Jul-

12

Sep

-12

No

v-12

Jan

-13

Mar

-13

May

-13

Jul-

13

Germany China USA

60

80

100

120

140

160

180

200

300

400

500

600

700

800

900

Jan

-12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun-

12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

No

v-1

2

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun

-13

Jul-

13

Aug

-13

HRC USA, EXW HRC Europe, EXW

HRC China, EXW Iron ore, China, CFR, (rhs)

GLOBAL STEEL MARKET OVERVIEW

GLOBAL CAPACITY UTILIZATION

PRICES BY REGION

Index, January 2012 = 1

• Supply / Demand

o Restocking at the beginning of 2013 followed by a significant supply growth and increased competition

o Chinese production remains elevated but demand strengthened driving steel inventories down

o Market buoyancy in September as summer holidays in Europe and Middle East come to an end

• Prices

o Prices are moving up supported mostly by increased raw materials prices

Source: Metal Bulletin

STEEL INVENTORIES

Source: CRU, Bloomberg (China statistics)

Source: World Steel Association

$/t

9

$/t

50%

60%

70%

80%

90%

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun-

12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-1

3

May

-13

Jun

-13

Jul-

13

Global China North America EU (27)

0

10

20

30

40

50

60

70

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

Jan

-10

Apr

-10

Jul-

10

Oct

-10

Jan

-11

Apr

-11

Jul-

11

Oct

-11

Jan

-12

Apr

-12

Jul-

12

Oct

-12

Jan

-13

Apr

-13

Jul-

13

Manufacturing PMI (r.h.) US construction starts US auto sales

1,5

1,7

1,9

2,1

2,3

2,5

2,7

2,9

Sep

-12

Oct

-12

No

v-1

2

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-1

3

May

-13

Jun

-13

Jul-

13

5-y

ear

ave

.

-

100

200

300

400

500

100

300

500

700

900

Jan

-12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun

-12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun

-13

Jul-

13

Aug

-13

HRC US domestic prices, EXW HRC Spread US vs China (RHS)Spread US HRC vs scrap (RHS)

US MARKET

Source: US Census Bureau, Ward’s Automotive Group

US PRICE DYNAMICS

$/metric t

Source: Metal Bulletin

INVENTORY LEVEL

• Supply / Demand

o LT demand looks strong with construction, machinery and energy sectors performing relatively well

o Supply-side provides support to prices on improved producers’ discipline and reduced imports

• Prices

o Steel prices have strengthened significantly since May

o Further price increases expected in September as buyers come back to the market after holidays and supply remains tight

• Inventories

o Months of supply are below average at 2.3 in July

o Lead times for HRC and CRC increased to 4.7 and 6.3 weeks as buying activity improves

US CONSTRUCTION INDUSTRIAL SECTOR INDICATORS

US inventory/sales ratio, months

10

index Jan 2010=1

Source: Bloomberg

$/metric t

500

700

900

Jan

-12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun

-12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun

-13

Jul-

13

Aug

-13

HRC, Northern EU, EXW Plates, Northern EU, EXW

5%

-8%

-35%

22%

6%

-10%

-3% 2%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

0

50

100

150

200

250

20

07

20

08

20

09

20

10

20

11

20

12

2013

E

20

14

E

ASU, mt ASU, y-o-y, rhs

m t

1,0

1,5

2,0

2,5

3,0

3,5

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-1

3

May

-13

Jun

-13

5 y

ear

av.

EUROPEAN MARKET

EU PRICE DYNAMICS

$/t

Source: Metal Bulletin

• Supply / Demand

o Run rates up slightly in early Q2 driven by restocking

o Subdued demand due to overall contraction in manufacturing and construction activity

• Prices

o Steel prices supported by recent price hikes announcements and improved sentiment on international markets although strong recovery is not expected

• Inventories

o Inventory/sales ratio moved up slightly in Q2 after destocking at the end of Q1

GERMANY: STEEL INVENTORY

Source: CRU. I/S ratio adjusted by CRU (three month moving average). .

11

Inventory/sales ratio, months

APPARENT STEEL CONSUMPTION IN EU

Source: Eurofer

100

600

1 100

1 600

2 100

2 600

Jan

-11

Mar

-11

May

-11

Jul-

11

Sep

-11

No

v-11

Jan

-12

Mar

-12

May

-12

Jul-

12

Sep

-12

No

v-1

2

Jan

-13

Mar

-13

May

-13

Jul-

13

Flats Longs

0

10

20

30

40

50

60

70

19

91

19

92

19

93

19

94

19

95

1996

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

2010

20

11

20

12

20

13

E

• Growth in steel consumption

o 2013 ASU to grow by 2.6% yoy to 43 m t (WSA forecast)

o 7M’13 finished steel consumption up by 3.4% yoy to 24.2 m t due to increased longs consumption (+6.4% yoy)

o Construction and infrastructure sector – key contributors

o Long-term fundamentals for steel consumption growth remain strong

• Pricing trends

o Ordinary grades replicate export market situation

o More stable pricing for value added grades

RUSSIAN MARKET

$/t

DOMESTIC STEEL PRICES, HRC / CRC (EXW)

Sources: Metal Bulletin, Metal Expert

m t

STEEL CONSUMPTION IN RUSSIA

Sources: McKinsey, World Steel Association

Delayed steel consumption is 170 mt

FINISHED STEEL CONSUMPTION

‘000 t

Sources: Metal Expert, NLMK 12

300

400

500

600

700

800

900

1 000

1 100

Jan

-12

Feb

-12

Mar

-12

Apr

-12

May

-12

Jun

-12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Apr

-13

May

-13

Jun

-13

Jul-

13

Aug

-13

Slab export, Russia FOB HRC Russia, EXWCRC Russia, EXW HDG Russia, EXW

66%

7%

12%

15%

Столбец1

Pipes&tubesindustry

Machinery

Processing, incl.white goods andconstruction

Construction &infrastructure

0

10

20

30

40

50

60

70

80

20

00

20

01

20

02

2003

20

04

20

05

20

06

20

07

2008

20

09

20

10

20

11

20

12

2013

E

RUSSIAN MARKET - Construction

‘000 t

STEEL CONSUMPTION IN CONSTRUCTION

Source: Metal Expert

HOUSE COMPLETIONS, RUSSIA

Source: Rosstat, NLMK estimates. Ministry of Economic Development

FLOOR SPACE PER CAPITA, M2

Source: Company estimates 13

• Market overview

o Construction (sq m completions) surpassed pre-crisis peak

levels in 2012

o Residential completions up by 6.2% yoy in 7M’13

o New house sales supported by robust consumer confidence

o 7M’13 steel consumption in construction and infrastructure

up by 9% yoy with rebar consumption increasing by 14% yoy

• NLMK strategy

o Quality and service improvement

o Greenfield expansion of long steel by 70% in 2013

o New long steel products (angles, channels) including niche

one – high strength rebar (A1000)

67

48

37

23

0

10

20

30

40

50

60

70

80

US EU EasternEurope

Russia

50%

50%

Столбец1

Normal

Obsolete

m square meters

0

500

1 000

1 500

2 000

2 500

3 000

Jan

-08

Mar

-08

May

-08

Jul-

08Se

p-0

8N

ov-

08Ja

n-0

9M

ar-0

9M

ay-0

9Ju

l-09

Sep

-09

No

v-09

Jan

-10

Mar

-10

May

-10

Jul-

10Se

p-1

0N

ov-

10Ja

n-1

1M

ar-1

1M

ay-1

1Ju

l-11

Sep

-11

No

v-11

Jan

-12

Mar

-12

May

-12

Jul-

12Se

p-1

2N

ov-

12Ja

n-1

3M

ar-1

3M

ay-1

3Ju

l-13

Flat steel Long steel

-

20

40

60

80

100

120

140

160

180

200

Jan

-08

Apr

-08

Jul-

08

Oct

-08

Jan

-09

Apr

-09

Jul-

09

Oct

-09

Jan

-10

Apr

-10

Jul-

10

Oct

-10

Jan

-11

Apr

-11

Jul-

11

Oct

-11

Jan

-12

Apr

-12

Jul-

12

Oct

-12

Jan

-13

Apr

-13

Jul-

13

Flat steel Long steel

• Market fundamentals o 3.3 times growth in cars production since 2009

o 50% of car fleet is over 10 years old

• Recent developments o 7M’13 steel consumption in automotive sector down by 18% yoy

as auto production remains soft

o Auto sales in 7M’13 down by 6.2% yoy

• NLMK strategy o New steel grades (upgrade of BOF) – IF, etc. steels

o Downstream development to grow market share

o Technology and experience transfer and synergy with its European division

RUSSIAN MARKET – Automotive

‘000 t

STEEL CONSUMPTION IN AUTOMOTIVE

Source: Metal Expert

Source: Avtostat 14

AGE OF CAR FLEET IN RUSSIA

13%

15%

21%

17%

11%

23% < 3 years

3-5 years

5-10 years

10-15 years

15-20 years

>20 years

50/50

RUSSIA: PRODUCTION OF CARS AND CAR FLEET

14

1,0 1,0 1,1 1,1

1,2 1,3

1,5

0,6

1,2

1,7

2,0

0

5

10

15

20

25

30

35

40

0,0

0,5

1,0

1,5

2,0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Passenger cars production, l.h. Car fleet , r.h.

m units

Source: Rosstat

m units

RAW MATERIALS MARKET • Prices and demand in international markets

o Correlation between raw material and steel price trends

o In Q2 global prices for iron ore, coking coal and scrap declined by 15%, 6% and 7%, respectively

o Raw materials prices are improving since July on the back of supply constraints and steel prices recovery

o Raw materials demand remains solid as steel output expands

o Chinese imports of iron ore were up by 7.7% yoy in 7M’13

o Iron ore inventories at Chinese ports hit bottom in March’13 and started to recover

• Russian coking coal market remains oversupplied o 7M’13 exports increased by 33% while domestic shipments went

down by 3.7%

40

50

60

70

80

90

100

110

Jan

-11

Mar

-11

May

-11

Jul-

11Se

p-1

1N

ov-

11Ja

n-1

2M

ar-1

2M

ay-1

2Ju

l-12

Sep

-12

No

v-12

Jan

-13

Mar

-13

May

-13

GLOBAL RAW MATERIAL PRICES

Sources: Metal Bulletin

0,4

0,5

0,6

0,7

0,8

0,9

1,0

1,1

1,2

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Aug

-12

Sep

-12

Oct

-12

No

v-12

Dec

-12

Jan

-13

Feb

-13

Mar

-13

Ap

r-1

3

May

-13

Jun

-13

Jul-

13

Aug

-13

Iron ore fines (Fe 62%) import China, CFR

Coking coal, export Australia, FOB

Scrap export Europe, FOB

HRC China export, FOB

CHINA: IRON ORE IMPORT AND INVENTORIES

m t

Sources: Bloomberg

Jul-

13

+5% in Q2

425

458

100

150

200

250

300

350

400

450

500

Импорт ЖРС 7М '12 7М '13

+7.7%

IRON ORE IMPORT

IRON ORE INVENTORIES AT CHINA PORTS m t

Jan 2012 index 1.0

15

RUSSIA: COKING COAL MARKET BALANCE

Sources: Metal Expert, NLMK estimates

-14,2 -17,5 -18,6

40,9 40,6 39,0

2,5 2,0 2,0

-20

-10

0

10

20

30

40

50

2011 2012 2013E

Export Sales to domestic market Import

m t

Global average

0%

20%

40%

60%

80%

100%

120%

Q1'08

Q2'08

Q3'08

Q4'08

Q1'09

Q2'09

Q3'09

Q4'09

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Lipetsk plant capacityutilization

OPERATING RESULTS

• > 95% - capacity utilization rate in 2012

• +25% - crude steel production in 2012 to 14.9 m t o Novolipetsk: 12.2 million t, +25% yoy

o NLMK Long Products: 1.8 million t, +23% yoy

o Foreign Rolled Products: 0.9 million t, +27% yoy

• Q2 ‘13: 3.785 m t, +2.5% qoq

• Q3 ‘13 is expected to grow by 4-5% qoq to 3.9 m t

16

STEELMAKING CAPACITY UTILISATION: NOVOLIPETSK AND GLOBAL AVERAGE

NLMK CRUDE STEEL PRODUCTION

88%

83%

97%

94%

87% 90%

96% 94%

70%

80%

90%

100%

NLMK USA NLMK Longproducts

Novolipetsk NLMK Group

Q1 '13 Q2 '13

NLMK: STEELMAKING CAPACITY UTILIZATION

3,0 3,1 3,1 3,0 3,0 3,1

0,4 0,5 0,5 0,4 0,5 0,5

0,3 0,2 0,2 0,2 0,2 0,2

3,6 3,8 3,8 3,7 3,7 3,8

0

1

2

3

4

Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13

Steel segment Long products segment Foreign rolled products segment

m t

3,26 3,00

2,80 2,86 2,83

18% 16%

14%

11%

14%

0%

2%

4%

6%

8%

10%12%14%

16%

18%

20%

2,0

2,2

2,4

2,6

2,8

3,0

3,2

3,4

Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13

Revenue EBITDA margin

595

483

390

318

400 453

347 296

154 221

0

100

200

300

400

500

600

700

Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13

EBITDA Capex

17

• 12М ’12 financial results

o Revenue $12,157 m (+4% yoy)

o EBITDA $1,900 m (-16% yoy)

o EBITDA margin 16% (-3,6 p.p.)

o Operating cash flow : $1,825 m (+1%)

o Capex: $1,453 m (-29%)

o Net debt/EBITDA: 1.88

• Q2 ’13 financial results

o Revenue $2,83 m (-1% qoq)

o EBITDA $400 (+26% qoq)

o EBITDA margin 14% (+3 p.p.)

o Capex: $221 m (-51% yoy)

• Cash flow generation

o Growth in cash generation coupled with continuous

deceleration in Investments

FINANCIAL HIGHLIGHTS

$ m

$ bn

FINANCIAL PERFORMANCE, QUARTERLY

EBITDA AND CAPEX

$1,5 $1,4

Cash and equivalents

$1,5 $1,0

$3,5 $3,8

$-

$1,0

$2,0

$3,0

$4,0

$5,0

as at 31 Mar 2013 as at 30 Jun 2013

ST debt LT debt

3,0

2,5

2,7

3,1

3,3 3,4

2,0

2,2

2,4

2,6

2,8

3,0

3,2

3,4

3,6

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

18

• Debt position as at Q2’13 o Net debt: $3.42 bn (-1% qoq)

o Gross debt: $4.79 bn (-3%)

o Net debt / 12M EBITDA: 2.15

• Debt portfolio optimization o Short term debt reduced to $0.99 bn (-33%)

o Average debt maturity increased to 3.4

• Ratings o Investment grade rating from Moody’s & Fitch

DEBT POSITION

MATURITY AND NET DEBT/EBITDA

Weighted average maturity

Years to maturity

Net debt/L12M EBITDA

LT AND ST DEBT

27% 40%

37%

40%

36% 20%

0%

20%

40%

60%

80%

100%

Debt Revenue*

RUR USD Euro

Q2’13 CURRENCY OF THE DEBT AND REVENUE

$ bn

* Based on management accounts data including estimates

1,69 1,90 1,84 1,88 1,93 2,15

0,0

0,5

1,0

1,5

2,0

2,5

3,0

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

DEBT MATURITY • Maturity schedule

o Substantial liquidity cushion incl. $1.36 bn of cash and equivalents and $2.33 bn of committed credit lines

o ST debt: $0.99 bn (-33% qoq)

o ECA financing

o Credit lines for working capital financing

o LT debt: $3.79 bn (+10% qoq)

o Eurobonds and ruble bonds

o Long term part of ECA

o European operations’ long term debt

• Financing costs as a % of EBITDA are low

19

LIQUID ASSETS AND ST DEBT MATURITY*

* The ST maturity payments include interests accrued and bond coupon payments. ** Maturity payments do not include interest. *** Including interest capitalized as PPE

432

596

483

390

318

400

67 62 65 68 64 62

$0

$100

$200

$300

$400

$500

$600

$700

Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13

EBITDA Interest expense

$ m

EBITDA AND INTEREST EXPENSE***

790 724 1044

2180

$0

$500

$1 000

$1 500

$2 000

$2 500

2013 2014 2015 2016 and beyond

RUB bonds ECA EBRD NLMK Europe Others Europbonds (USD)

TOTAL DEBT MATURITY**

$ m

1 362 994

2 331

385

443

132 34

$0

$500

$1 000

$1 500

$2 000

$2 500

$3 000

$3 500

$4 000

Liquid assets Q3 '13 Q4 '13 Q1 '14 Q2 '14

$ m Undrawn committed credit lines

Cash and equivalents

20

• Market overview

o Globally run rates remain high aggravating the supply/demand imbalance while the market continues to be soft

o End user demand continues to be anemic due to lower activity in a number of regions. In Russia we expect stable demand from the

construction sector

o Pricing environment for steel products and raw materials remains volatile

• Steel production

o NLMK steel output in Q3 is expected to exceed Q2 ’13 level with 3.9 m t (+4%) driven by the NLMK Kaluga ramp-up

• Financial results

o Q3 ‘13 revenue is expected to remain sequentially flat

o Profitability will be driven by steel / raw material price spreads that continue to be volatile

o The Company will continue to optimize its cost base through the entire value chain to offset the weaker pricing environment and cost

inflation

OUTLOOK

21

1. Business profile

2. Operating and financial profile

3. Strategy

22

GLOBAL MARKET TRENDS

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2 200

19

80

19

82

19

84

1986

1988

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

mtpa

Excess capacity Crude steel production

Capacity utilization rate (RHS)

1980-2007 average run rate – 86%

2010-2012 average run rate – 77%

GLOBAL OVERCAPACITY

81% 78% 61%

35% 26%

11% 7%

22%

22% 28%

8% 15% 17%

44% 46%

0%

25%

50%

75%

100%

1995 2000 2005 2010 2011

Steelmaking Coking coal Iron ore

PROFITABILITY SHIFT TO UPSTREAM

Source: McKinsey Research. EBITDA split for HRC

Source: World Steel Association

STEEL DEMAND BY REGION

28% 12%

20%

4%

18%

9%

6%

46%

12% 5%

5% 15%

10% 9%

1980 2012

Other regions

Asia other

Japan

China

North America

CIS

Europe

Source: World Steel Association

• Demand shift in favor of emerging markets (EMs) o Over 50% of demand & growth comes from EMs

o Developed markets (DMs) retained sizable demand, but still below historic peak consumption levels

• Global overcapacity o Over 0.5 bn t of steelmaking overcapacity

o Capacity growth in EMs and capacity retention in DMs

• Profitability has slipped from steelmaking to mining

• Further margin shift is unlikely but prices will be supported o Significant new capacities on stream vs.

o Capital cost growth & operational cost inflation

23

Maximising upstream integration into key resources

1

Maintaining efficient and

sustainable growth 2

Improving efficiency of operations

3

Developing niche segments

4

Operating in a safe, socially and environmentally responsible manner

5

STRATEGIC OBJECTIVES OF NLMK GROUP

0

6

0

2

4

6

8

10

2012 2016

12

14

>18

0

2

4

6

8

10

12

14

16

18

20

2010 2012 2016

MAXIMISING UPSTREAM INTEGRATION IN KEY RESOURCES • Iron ore

o Growth in iron ore concentrate production o Pelletizing plant of 6 m t - 2016

• Coal o Use of alternative technology to improve coke quality and

decrease coal consumption o PCI technology installation to reduce by 20/30% coke and by

70% natural gas consumption per 1 t of steel

• Scrap o Target self-sufficiency of Russian operations at 80-85%

• Energy o Efficiency gains and use of in-house generated energy (from by

product gases)

EXPANSION OF IRON ORE CONCENTRATE AND PELLETS CAPACITY

24

m t

+ over 6 m t

24

+ 6 m t

Iron ore concentrate Pellets

m t

0

1

2

3

4

5

6

7

8

2010 2011 2013-14 2014-15

New BF#7

COAL CONSUMPTION DYNAMICS (LIPETSK)

m t

PCI effect

Sources: Bloomberg industries

Source: Bloomberg

0

20

40

60

80

100

120

140

160

180

0% 25% 50% 69% 90%

GLOBAL IRON ORE PRODUCTION COSTS

NLMK (Stoilensky)

$/t

2012 Cumulative capacities: 1.4 bn t

12.3

3.4

1.5

17,2

0

4

8

12

16

2010 BF#7 EAF (Kaluga) 2014Existing BF#7 EAF (Kaluga)

mtpa

BF: 3.4 m tpa from mid 2011

EAF: 1.5 m tpa from 2013

MAINTAINING EFFICIENT AND SUSTAINABLE GROWTH

• Capacity growth is complete o BF/BOF steelmaking (Russia) : 3.4 m tpa

Brownfield project of ~$500/t* investments

o EAF steelmaking (Russia): 1.5 m tpa Greenfield project of ~$750/t* investments

• Improved steel grades portfolio o Allows for further improvement in downstream products

portfolio and entering new markets

• Expanded diversity of products o New gauges of semis added – e.g. 2.5 m tpa of wide slabs

• Low cost position supplemented by quality improvements o Entering new markets

o Improving position in the existing markets

o Allowing for the full capacity load through the cycle

CRUDE STEEL CAPACITY GROWTH: +40%

25

Crude steel capacity growth for the Russian operations

* - total investments per annual capacity of the facility

30% 5%

58%

48%

12%

47%

0%

20%

40%

60%

80%

100%

Jan-11 Jan-12

Finished (Intl)

Finished (Russia)

Semis

INCREMENTAL STEEL SUPPLY HEDGED THROUGH CAPTIVE ROLLING

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0,0

0,5

1,0

1,5

2,0

2,5

Q1

'08

Q2

'08

Q3

'08

Q4

'08

Q1

'09

Q2

'09

Q3

'09

Q4

'09

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Russian production Import Import share, rhs

MAINTAINING EFFICIENT AND SUSTAINABLE GROWTH (2)

NLMK Kaluga project

• Russian rebar market o Consumption growth in Russia: x1.9 against 1H‘10

o Import growth in 1H’13: +60% yoy, x3 vs. 1H’10

o Regional demand/supply imbalance

• Modern 1.5 m tpa EAF capacities o Product mix in demand from construction: rebar and sections

o Favorable location: 90 km from Moscow – consumption cluster (Central district)

o Total investments c. $1.2 billion (90% by 2013)

o Cost advantage (logistics, modern production, scrap collection network)

26

RUSSIAN REBAR CONSUMPTION

250

950 1 000

0

200

400

600

800

1000

1200

2013Е 2014Е 2015Е

NLMK KALUGA: PRODUCTOIN PLAN BALANCE OF PRODUCTION AND CONSUMPTION AT REGIONS

Sources: Metal Expert. Data for 2012

46%

21%

8% 9% 8% 6%

1% 0%

17% 12%

31%

18%

11% 7%

2% 1%

0%

10%

20%

30%

40%

50%

Ura

ls

Sib

eria

Cen

tral

Priv

olz

hsk

y

No

rth

-W

est

Sou

th

Far

East

No

rth

Cau

casi

an

Share in long products production

Share in long products consumption

long products deficit – app. 3,8 million t/y

000’t

Source: Metal Expert

million t

Record level of 2008

Import, share is over 20%

IMPROVING EFFICIENCY OF OPERATIONS

• Cost optimization programs o Novolipetsk

o Altai-Koks

• Optimization of coke making, sintering, BOF operations o Maximum use of equipment potential

o Minimizing raw material, fuel, material and energy consumption

o Optimizing fuel and raw material balance structure

o Reducing environmental footprint, including waste management

• Significant economic potential o Costs cut by over $60 m in 2013 alone, target sustained

savings of over $100 m since 2014*

27

COST OPTIMIZATION AT LIPETSK SITE

REDUCED RAW MATERIAL CONSUMPTION FOLLOWING OPTIMIZATION MEASURES

100% 100% 100%

96,5% 97,6%

93,0%

80%

85%

90%

95%

100%

105%

Coal Pellets Scrap*

Before optimization After

Lower specific raw material consumption, 100% - Dec’12 level

* Reduced consumption of purchased scrap

Note: projected average annual savings

36 36

60

24

40

0

20

40

60

80

100

120

H12013

2013 target 2014 and onward

$ million >$100 m compared to

2012

>$60 m compared to

2012

- H2 2013 - 12M 2013

* Estimation of an effect comparing to 2012 level of utilization rates and prices (for Novolipetsk and Altai-Koks)

AIR EMISSIONS AND WASTE WATER DISCHARGE

DEVELOPING NICHE SEGMENTS DOWNSTREAM CAPACITY ADDITIONS

28

• Portfolio of niche strategies based on quality improvement... o Steelmaking assets upgrade at Novolipetsk to offer new high-quality

products for the automotive, construction, white goods and electrical engineering industries

o Production of new types of wide / thick slabs at Novolipetsk

o Launched a transformer steel production

• ...and capacity additions in attractive segments o Downstream capacity additions at Novolipetsk (HRC/CRC)

o Q&T line at NLMK Clabecq

o New thick plates line at NLMK Dansteel

o New rebar capacity at Kaluga site to supply growing construction in Central region

• Building sustainable business

o In 2012, the Group invested $77 m in environmental projects

o Commissioning of New Recovery Cogeneration Plant led to a 15 fold gross emissions reduction

o First steelmaking company to achieve zero waste water emissions (at Novolipetsk)

‘000 t

1 500*

400 350

250

Long(NLMK Kaluga

mini-mill)

HRC(Lipetsk site)

CRC(Lipetsk site)

Q&T(EU Plate)

* Current capacity is 900 kt with potential for an additional 600 kt

RESPONSIBLE OPERATIONS

43 43 41

39 36

41 38

36

31 30 29 28

23

0

0,5

1

1,5

2

0

10

20

30

40

50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Specific air emissions (kg/t), lhs

Specific waste water discharge (kg/t), rhs

31%

69%

Столбец1 Development

Maintenance capex

2013 INVESTMENTS • Capex programme

o Lower capital intensity

o Focus on efficiency enhancement and niche products

o Balanced approach to assessing new projects

o Flexibility under various market scenarios

• Long products division development o NLMK Kaluga launch (EAF+ rolling mill)

o Development of scrap collecting facilities

• Strengthening vertical integration o Pelletizing plant construction projects launched at Stoilensky

o Coke making projects (PCI, etc.) to reduce energy costs

• Quality improvement and niche products o Mastering the revamped rolling mill at NLMK Dansteel

o Niche product development at NLMK Clabecq

o Continued GO steel development programmed at Novolipetsk and at VIZ-Steel

29

1936

1115 1462

2020

1453

1000

0

500

1000

1500

2000

2008 2009 2010 2011 2012 2013Е

CAPEX DYNAMICS

$ m

45

24 17

30 24 20

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013E

MAINTENANCE CAPEX PER TONNE OF STEEL

$/t

30

APPENDIX

Q2 ’13 CONSOLIDATED CASH COST OF SLABS (AT LIPETSK SITE), $/T

Q2’13 Q1’13

Coke and coking coal $91 $99

Iron ore $64 $73

Scrap $37 $34

Other materials $31 $34

Electricity $21 $21

Natural gas $18 $21

Personnel $33 $31

Other expenses $53 $51

Total $348 $364

CASH COST OF SLABS (AT LIPETSK SITE), 2012-2013, $/T

Q1'12 $395

Q2'12 $411

Q3'12 $383

Q4'12 $361

Q1'13 $364

Q2'13 $348

www.nlmk.com

NLMK Investor Relations 18, bldg 1 Bakhrushina str. 115054, Moscow Russia t. +7 495 915 15 75 f. +7 495 915 79 04 email: ir@nlmk.com