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Corporate Presentation
May 2013
1
Disclaimer
Investor Presentation, May 2013
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.) (collectively, 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, including, 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, financial 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 and 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 circumstances 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.
2
EVRAZ in brief
 One of the largest vertically integrated steel and mining companies in the world
 Leader in the Russian and CIS construction and railway product markets
 No 1 producer of rails and large diameter pipes in North America
 One of the leading producers in the global vanadium market
 15.9 million tonnes of crude steel produced in 2012, 15.3 million tonnes of steel
products sold
 2012 consolidated revenue of US$14.7 billion, EBITDA of US$2.0 billion
 Net debt as of 31 December 2012 of US$6.2 billion
 Capex of US$1,261 million in 2012
 Constituent of FTSE 100 index since December 2011 and the only steel stock in UK
FTSE All-Share index; part of MSCI UK and MSCI World Indices
Investor Presentation, May 2013
3
Russia &
CIS
48%
Americas
18%
Asia
21%
Europe
9%
Africa/Other
4%
by Geography
Steel Sales Volume Breakdown (2012)
Global Vertically Integrated Steel, Mining and Vanadium Business with Strong Positions in Highly Attractive Markets
EVRAZ’s global business
Investor Presentation, May 2013
North America
South America Africa
Europe
Russia/CIS
Asia
394
3,185
986
426
346
211 660
7,3702,680
Sea ports
Vanadium
Coal mining
Iron ore mining
Steel mills
Mezhegey coal mine in development
Third party steel products sales 2012 (Kt)*#
Internal supply of slabs and billets from
Russian steel mills 2012 (Kt)
#
15.3 Mt
* Excluding routes with sales volumes below 100 kt each, together totalling 252 kt
Semi-
finished
24%
Construction
37%
Railway
12%
Flat-rolled
18%
Tubular
6%
Other
3%
by Product
15.3 Mt
4
EVRAZ average selling prices, $/t (ex works)
Q1 2013 steel production
Investor Presentation, May 2013
 Output of total steel products increased by 11% in Q1
2013 vs. Q4 2012 mainly due to lower downtime at
steelmaking facilities
 Consolidated production of finished steel goods was
largely flat quarter-on-quarter, while output of semi-
finished products increased primarily at Russian
operations
 Production at EVRAZ ZSMK rail mill recommenced in
January 2013 following the successful completion of
the modernisation project
 EVRAZ NTMK completed the implementation of the
PCI project
Production of steel products, Kt Share of finished products in product mix
0
200
400
600
800
1,000
1,200
1,400
Semi-
finished
products
Construction
products
Railway
products
Flat-rolled
products
Tubular
products
Other steel
products
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
26%
74%
Semi-finished products
Finished products
Product group
Q1 2013 Q4 2012 Q1 2012
Semi-finished (Russia) 419 396 480
Construction (Russia) 674 667 675
Flat-rolled (North America) 876 906 1,068
Tubular (North America) 1,387 1,422 1,565
5
Mining: Coal
Investor Presentation, May 2013
 In Q1 2013, raw coking coal production at Yuzhkuzbassugol increased by 14% compared to Q4
2012 due to increased production at the Alardinskaya and the Yesaulskaya mines, launch of a new
longwall at the Osinnikovskaya mine and commissioning of the Yerunakovskaya VIII mine
 Output of Raspadskaya was 3% higher as the flagship mine continued operating with two
longwalls
 Production of raw steam coal decreased due to suspension of mining at the Gramoteinskaya mine
and longwall repositioning at the Kusheyakovskaya mine that started in December 2012 and
continued throughout Q1 2013
EVRAZ’s raw coking coal production volumes, Kt (mined)
Q1 2013 Q4 2012 Q1 2012
Raw coking coal 61 63 85
Raw steam coal 12 25 29
Coking coal concentrate 100 116 159
Steam coal concentrate - 49 70
EVRAZ average selling prices, $/t (ex works)
1,591
2,191 2,261
2,078
2,181 2,490
3,669
4,372 4,751
Q1 2012 Q4 2012 Q1 2013
Yuzhkuzbassugol
Raspadskaya
6
Mining: Iron ore
Investor Presentation, May 2013
 Overall production of saleable iron ore products by the Company remained largely flat in Q1
2013 compared to Q4 2012.
 In Q1 2013, production of saleable concentrate in Russia decreased by 8% as a result of lower
Fe grades in the ore mined at EVRAZ VGOK and preparation for the closure of Irba mine of
Evrazruda, which is expected in mid-2013
 Volumes of sinter and pellets produced at the Russian operations in Q1 2013 were marginally
lower due to a number of unscheduled minor repairs
 Prices for pellets and saleable concentrate in Russia demonstrated positive dynamics in Q1
2013, while selling prices for sinter remained unchanged
Iron ore production volumes, Kt EVRAZ average selling prices, $/t (ex works)
Q1 2013 Q4 2012 Q1 2012
Concentrate, saleable (Russia) 91 70 91
Sinter (Russia) 70 70 105
Pellets (Russia) 79 74 104
Lumpy ore (Ukraine) 63 50 66
734 580 691
1,555 1,572 1,544
1,209 1,230 1,198
1,288 1,331 1,230
5,204 5,132 5,203
Q1 2012 Q4 2012 Q1 2013
Concentrate, saleable
(Russia)
Sinter (Russia)
Pellets (Russia)
Lumpy ore (Ukraine)
7
Vanadium
Investor Presentation, May 2013
 In Q1 2013, total production of primary
vanadium (slag) increased by 4% mainly as a
result of higher crude steel production at
EVRAZ Highveld Steel and Vanadium
 Total ferrovanadium production increased by
15% due to better slag availability in South
Africa and record production at EVRAZ
Vanady Tula
Source: LMB
Ferrovanadium prices (FeV), $/kg contained V
30.2
31.1
30.9
30.4
30.0
29.5
28.9
28.6
28.1
27.5 25.7
24.2
23.0
25.3
26.0
25.6
26.1
25.6
24.5
23.7
24.6
24.3
24.2
26.8
31.2
31.6
31.0
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13
Production of Vanadium products, t of V*
* Calculated in pure vanadium equivalent
Q1 2013 Q4 2012 Q1 2012
Vanadium in final products
Ferrovanadium 28,814 23,579 23,109
Nitrovan® 30,690 26,912 26,521
Oxides, vanadium aluminum
and chemicals
33,266 36,094 31,241
EVRAZ average selling prices, $/t (ex works)f
372 186 491
412 766
715
4,542
2,773
3,188
Q1 2012 Q4 2012 Q1 2013
Ferrovanadium
Nitrovan®
Oxides, vanadium
aluminium and chemicals
8
Capex historic performance and outlook, $m 2012 capital expenditures breakdown by projects, $m
Capex excluding Raspadskaya
Investor Presentation, May 2013
* 2013 estimate CAPEX is ~10% less than budgeted capex
 2012 capex was $1,261m in line with budget and Company’s guidance
 2013 capex estimate is $1.1bn. Organic expansion of Raspadskaya can contribute up to $150m of
additional capex
 Growth in mining capex will be driven by the development of Mezhegey hard coking coal deposit and
construction of Yerunakovskaya VIII coking coal mine
 Steel segment capex is mostly a continuation of upgrade projects
 Depending on prevailing market environment, development capex might be postponed or reduced if necessary
832
1,281 1,261
~1,100
2010 2011 2012 2013 estimate*
Investment projects,
Mining
Investment projects,
Steel, Vanadium and
Other operations
Maintenance including
some support of mining
capacity
143
135
58
51
41
31
15
130
657
EVRAZ ZSMK rail mill modernisation
Yerunakovskaya VIII mine
PCI at EVRAZ NTMK
PCI at EVRAZ ZSMK
Vostochniy mill
Yuzhniy mill
Mezhegey (Phase I) coal project
Other investment projects
Maintenance
9
Key investment projects
Investor Presentation, May 2013
Project
Total
capex*,
$m
Remaining
capex at
1/01/2013*, $m
2013 capex
Budgeted*, $m Project targets
Steel 248
Rail mill modernisation at
EVRAZ ZSMK
490 63 63
 Increase of production capacity to 950 ktpa, including 450 ktpa of 100
metre rails
 Launched in January 2013. Ramp-up to be completed by Q1 2014
Pulverised coal injection (PCI) at
EVRAZ ZSMK
152 51 42
 Coke consumption to be reduced by ca. 20% and natural gas by ca.
50%, with additional 140kg PCI coal per tonne of pig iron
 Launch in Q1 2014
Construction of
Vostochniy rolling mill
(Kazakhstan)
124 67 49
 New capacity: 450 ktpa of construction products
 Hot tests to start in Q3 2013
Construction of
Yuzhniy rolling mill (Southern
Russia)
142 65 26
 New capacity: 450 ktpa of construction products
 Hot tests to start in H2 2014
Rail mill expansion
at EVRAZ North America
32 18 18
 Increase of rail mill capacity from 525 ktpa to 580 ktpa and improvement
in product quality
 To be completed in Q3 2013
Heat treatment expansion at
Calgary mill of EVRAZ North
America
64 64 50
 Shift to higher margin for heat treated pipes
 To be completed in Q4 2013
Coal & iron ore 248
Yerunakovskaya VIII mine
construction
310 132 108
 Production of up to 2.5 Mtpa of coking coal
 Ramp-up to be completed by Q1 2014
Development of Mezhegey coal
deposit
222 176 111
 Production of up to 1.5 Mtpa of hard coking coal;
 Ramp-up to be completed in H2 2014
Expansion of
Sheregesh mine
90 48 29
 Increase iron ore production to 4.8 Mtpa, replace depleting mines
 Decrease of cash cost per tonne
 Ramp-up to be completed in H2 2013
TOTAL 496
* Excluding VAT
10
Update on rail and beam mill and PCI projects
 Rail and beam mill at ZSMK
 Launched in January 2013, first 100 metre rails produced in March 2013
 Current production rate 40 kt/month, plan to reach design capacity of 100 kt/month in Q1 2014
(including 79 kt/month of rails)
 Certification for 100 metre rails expected in Q1 2014, after which commercial sales can begin
 PCI at NTMK
 Launched in January 2013
 Currently working in the consumption mode of 95 kg PCI coal/t of pig iron, whilst expecting to
increase PCI coal consumption to 140 kg/t of pig iron from April 2013
 Planned reduction in coke consumption is 23% (310 kg/t vs. 405 kg/t) and in natural gas
consumption – 58% (55 m3/t vs.130 m3/t)
 Cost saving effect is expected to be approximately $10/t of crude steel
 PCI at ZSMK
 Delayed to optimise design solutions
 Launch expected in Q1 2014
Investor Presentation, May 2013
11
Key market developments and outlook
Investor Presentation, May 2013
 Global markets remain volatile resulting in ongoing
uncertainty and low visibility in EVRAZ’s key
markets
 Full utilisation of Russian steel making
capacities continues
 High level of North American steelmaking
capacity utilisation
 Finished goods inventories at our mills and sales
network remain at normal levels
 EVRAZ order book (Russian export sales) currently
represents over 1.1 month’s production on average
 Iron ore prices have grown slightly since the end
of 2012 while coking coal prices remain largely flat
 Ferrovanadium prices in Q1 2013 are at the level of
$31/kg of contained Vanadium, higher than in 2012
Raw material prices (domestic markets), $/t
Source: Metal Expert
Steel product prices (domestic markets), $/t
0
50
100
150
200
250
300
350
400
450
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13
Scrap, Russia, CPT Scrap, USA, CPT
Iron ore concentrate, Russia, ExW Coking coal concentrate, Russia, FCA
300
400
500
600
700
800
900
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13
Slabs, Russia, FOB Far East Billets, FOB Black Sea
Plate, USA, domestic, ExW Plate, Italy, import C&F
Appendix
13
 Safety remains a key priority
 Growth of LTIFR partially reflects more
comprehensive and accurate statistics and zero
tolerance approach to concealment of accidents
 Falls and equipment related injuries contribute to
42.5% of all LTI’s recorded in 2012
 25 fatalities recorded in 2012
 Company-wide programmes have been intensified
in 2013:
 actions to ensure walkways at all facilities are
safe and do not create risks for employees
using them on daily basis
 focus on working at heights’ safety measures
for employees and contractors
HSE Performance
Fatalities
* Calculated as the total number of work-related injuries (which resulted in the loss of work time)
Lost Time Injury Frequency Rate (LTIFR)*
1.86
2.23
2011 2012
13
25
2011 2012
Investor Presentation, May 2013
14
2012 summary
Investor Presentation, May 2013
US$ million unless otherwise stated
* EBITDA represents profit from operations plus depreciation, depletion and amortisation, impairment of assets, foreign exchange loss gain) and loss (gain) on disposal of property, plant and equipment
and intangible assets
** As at 31 December 2012 and 2011 respectively; short-term debt includes short-term and current portion of long-term liabilities, comprising loans and finance lease, including those directly associated
with disposal groups classified as held for sale
*** Here and throughout this presentation segment sales data refer to external sales unless otherwise stated
2012 2011 Change
Revenue 14,726 16,400 (10)%
EBITDA* 2,012 2,898 (31)%
EBITDA margin 13.7% 17.7% (4)%
Net profit/(loss) (335) 453 n.a.
Operating cash flow 2,143 2,647 (19)%
Capex 1,261 1,281 (2)%
Net debt** 6,184 6,442 (4)%
Short-term debt** 1,862 626 197%
Steel sales volumes*** (‘000 t) 15,292 15,492 (1)%
15
Revenue drivers, $m Consolidated EBITDA by segment, $m
Consolidated revenue by segment, $m
2012 financial highlights
Investor Presentation, May 2013
 Decrease in revenue driven by a combination of
lower steel and raw materials (iron ore and
coking coal) prices as well as by lower mining
sales volumes
 2012 EBITDA affected by weak performance of
mining segment as a result of lower volumes and
lower average sales prices for iron ore and
coking coal
1,262 1,326
1,628
622
22
(19)
197
189
(211)
(106)
2,898
2,012
2011 2012
Eliminations and
unallocated
Other operations
Vanadium
Mining
Steel
16,400
(171)
(933)
(273) (168)
(139)
10 14,726
12,000
13,000
14,000
15,000
16,000
17,000
Revenue
2011
Volumes,
steel
Prices,
steel
Volumes,
mining
Prices,
mining
Vanadium Other
revenue
Revenue
2012
14,717 13,543
3,784
2,650
665
520
966
1,046
(3,732) (3,033)
16,400
14,726
2011 2012
Eliminations
Other operations
Vanadium
Mining
Steel
16
Steel products: sales by market
Investor Presentation, May 2013
kt $m
6,722
2,766
3,020
1,562
849
573
6,570
2,746
3,249
1,450
802
475
Russia Americas Asia Europe CIS Africa & RoW
2011
2012
5,443
3,276
1,988
1,348
716
486
5,126
3,093
1,909
1,006
645
357
Russia Americas Asia Europe CIS Africa & RoW
2011
2012
17
Cash cost**, slabs & billets, $/tConsolidated cost of revenues by cost elements
Focus on cost efficiencies
Investor Presentation, May 2013
 Lower raw material costs (-20%) due to lower purchase prices of iron ore, coking coal and scrap
 Growth of intragroup re-rolling of slabs led to 39% decrease of cost of purchased semi-products
 Cost of goods for resale increased by 55%, as third party products were purchased to meet the demand
 Savings of $49m on the back of increased proprietary power generation. Currently 42% of electricity
consumption in Russia and Ukraine are self-covered
 Growth in depreciation due to revaluation of mineral reserve base at Yuzhkuzbassugol
 Increase in other costs was driven by destocking at 2012 year-end
Source: Management accounts
Item 2012 2011 Change
Relative
change
Cost of revenue (11,797) 100% (12,473) 100% 676 (5)%
Raw materials, incl. (4,091) 35% (5,137) 42% 1,046 (20)%
Iron ore (681) 6% (873) 7% 192 (22)%
Coking coal (1,050) 9% (1,389) 11% 339 (24)%
Scrap (1,570) 13% (1,943) 16% 373 (19)%
Other raw materials (790) 7% (932) 8% 142 (15)%
Semi-finished products (483) 4% (788) 6% 305 (39)%
Auxiliary materials (1,006) 9% (947) 8% (59) 6 %
Services (665) 6% (674) 5% 9 (1)%
Goods for resale (632) 5% (407) 3% (225) 55 %
Transportation (740) 6% (694) 6% (46) 7 %
Staff costs (1,765) 15% (1,628) 13% (137) 8 %
Depreciation (1,100) 9% (1,015) 8% (85) 8 %
Electricity (551) 5% (600) 5% 49 (8)%
Natural gas (416) 3% (427) 3% 11 (3)%
Other costs* (348) 3% (156) 1% (192) 123 %
* Includes auxiliary materials, services, goods for resale, taxes, change in WIP and FG
** Average for Russian steel mills, integrated cash cost of production, EXW
The data in this chart is derived from the unaudited monthly management accounts of EVRAZ in respect of the periods indicated above
416 408
375 374
458
437
406
427
H1 2011 H2 2011 H1 2012 H2 2012
Slabs
Billets
18
Cost structure of Vanadium segment, $m
Cost structure of Mining segment, $mCost structure of Steel segment, $m
Cost Structure by Segment
Investor Presentation, May 2013
21% 18%
16%
14%
16%
14%
7%
6%
6%
4%
4%
5%
8%
10%
4%
4%
8%
9%
10%
16%
12,375
11,154
2011 2012
Other
Energy
Depreciation
Staff costs
Transportation
Semi-finished products
Other raw materials
Scrap
Coking coal
Iron ore
52%
40%
12%
13%
5%
5%
12%
14%
19%
28%
610
494
2011 2012
Other
Energy
Depreciation
Staff costs
Raw materials
12% 6%
12%
12%
22%
24%
22% 26%
11% 11%
21% 21%
2,363 2,306
2011 2012
Other
Energy
Depreciation
Staff costs
Transportation
Raw materials
19
Performance by Regions
Investor Presentation, May 2013
EBITDA, EVRAZ South Africa, $m
* Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(243)m in 2011 and $(199)m and $(1)m other regions in 2012
** EVRAZ North America includes EVRAZ Inc. NA, EVRAZ Inc. NA Canada, Stratcor; EVRAZ Ukraine includes EVRAZ DMZP, Sukha Balka and coking plants; EVRAZ Europe includes EVRAZ
Palini e Bertoli, EVRAZ Vitkovice Steel, Nikom and attributable trading margin
EBITDA, EVRAZ Europe, $mEBITDA, EVRAZ Ukraine, $m
EBITDA, EVRAZ Russia, $m EBITDA, EVRAZ North America, $m
2,458
1,952
2011 2012
465
340
2011 2012
114
(2)
2011 2012
78
(11)
2011 2012
26
(67)
2011 2012
20
2012 FCF generation
 Positive cash flow despite market weakness
 Working capital release of $441m (excluding income tax) due to falling cost of inventory, improved recoverability
of taxes and related party receivables
 2012 cash flow generation supported by proceeds from EvrazTrans sale ($306m) and disposal of other small
non-core businesses
 No final dividend payment for 2012 to retain financial flexibility in an uncertain environment
Investor Presentation, May 2013
* In 2012, includes interest paid, covenant reset charges, realised gain on swaps and interest income
2,012 (12) 2,000
441 (298)
2,143 (478)
(1,261)
306 60 10 780
EBITDA 2012 Non-cash items EBITDA (excl.
non-cash items)
Changes in
working capital
(excl. income
tax)
Income tax paid Cash flows from
operating
activities
Interest and
similar
payments*
Capex Proceeds from
sale of
EvrazTrans
CF from other
investing
activities (excl.
term bank
deposits and
interest
received)
Collateral under
swaps
Free cash flow
Free cash flow generation in 2012, $m
21
Liquidity and debt maturity profile
 Major 2013 maturities are already paid-out and $950 million PXF facility pre-paid in full
 Successful placement of $1 billion Eurobond issue in April 2012 maturing in 2020 and bearing 6.5% p.a.
 Continuous focus on debt portfolio optimisation:
 RUB bond proceeds are swapped into USD to decrease overall debt service costs
 average weighted interest (including effect of cross currency swaps) decreased from 7.4% in 2010 to 6.2% in 2012
 successful consent solicitation exercise in 2012 generally harmonised covenant packages in the outstanding
Eurobonds
 Public debt is 68% (40% - Eurobonds, 28% - Rouble bonds) and bank loans are 32% of total debt
 Debt composition: USD – 66%, synthetic USD – 28%, EUR – 5%, other – 1%
 Deleveraging continues to be the key target for the medium term
Investor Presentation, May 2013
* Weighted average cost of debt
** Principal debt (excl. interest payments)
Debt** maturities schedule (as at 31 December 2012), $mDebt cost* and average maturity
2.0
2.5
3.0
3.5
4.0
4.5
5.0
6.0
6.5
7.0
7.5
8.0
31/12/10 31/03/11 30/06/11 30/09/11 31/12/11 31/03/12 30/06/12 30/09/12 31/12/12
%
(LHS)
Years
(RHS)
22
EBITDA
Investor Presentation, May 2013
US$ million
31 December
2012
31 December
2011
Consolidated EBITDA reconciliation
Profit from operations 243 1,860
Add:
Depreciation, depletion and amortisation 1,259 1,153
Impairment of assets 413 104
Loss on disposal of property, plant & equipment 56 50
Foreign exchange (gain) loss 41 (269)
Consolidated EBITDA 2,012 2,898
23
Net debt
Investor Presentation, May 2013
US$ million
31 December
2012
31 December
2011
Net debt calculation
Add:
Long-term loans, net of current portion 6,373 6,593
Short-term loans and current portion of long-term loans 1,783 613
Finance lease liabilities, including current portion 13 39
Loans of disposal groups classified as held for sale 79 -
Less:
Short-term bank deposit (674) (2)
Cash and cash equivalents (1,320) (801)
Cash of disposal groups classified as held for sale (70) -
Net debt 6,184 6,442
24
Quarterly steel products output by assets
Investor Presentation, May 2013
Russia, Kt North America, Kt
Europe, Kt South Africa, Kt
1,050 949 1,122 970 1,173
1,069 1,037
1,127
1,049
993
435
356
269
250
261
104 84 74
71
64
150 138
120
132
149
2,807 2,564 2,713 2,472 2,640
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Semi-finished products Construction products Railway products
Flat-rolled products Other steel
83 79 79 90 82
117 134 114 126 122
261 254 239 214 281
206 211 210 245
231
666 678 642 676 717
0
200
400
600
800
1,000
1,200
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Construction products Railway products Flat-rolled products Tubular products
17 26 26 14
269
243 207 200 228
8
23
4 4
5
294
267 237 230
247
0
50
100
150
200
250
300
350
400
450
500
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Construction products Flat-rolled products Other steel products
12 3
56
41
27 45 41
70
66
35
71 74
10
14
4
6 9
148
124
66
123 124
0
50
100
150
200
250
300
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Semi-finished products Construction products Flat-rolled products Other steel
London +44 207 832 8990
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Investor presentation may 2013

  • 2. 1 Disclaimer Investor Presentation, May 2013 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.) (collectively, 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, including, 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, financial 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 and 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 circumstances 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.
  • 3. 2 EVRAZ in brief  One of the largest vertically integrated steel and mining companies in the world  Leader in the Russian and CIS construction and railway product markets  No 1 producer of rails and large diameter pipes in North America  One of the leading producers in the global vanadium market  15.9 million tonnes of crude steel produced in 2012, 15.3 million tonnes of steel products sold  2012 consolidated revenue of US$14.7 billion, EBITDA of US$2.0 billion  Net debt as of 31 December 2012 of US$6.2 billion  Capex of US$1,261 million in 2012  Constituent of FTSE 100 index since December 2011 and the only steel stock in UK FTSE All-Share index; part of MSCI UK and MSCI World Indices Investor Presentation, May 2013
  • 4. 3 Russia & CIS 48% Americas 18% Asia 21% Europe 9% Africa/Other 4% by Geography Steel Sales Volume Breakdown (2012) Global Vertically Integrated Steel, Mining and Vanadium Business with Strong Positions in Highly Attractive Markets EVRAZ’s global business Investor Presentation, May 2013 North America South America Africa Europe Russia/CIS Asia 394 3,185 986 426 346 211 660 7,3702,680 Sea ports Vanadium Coal mining Iron ore mining Steel mills Mezhegey coal mine in development Third party steel products sales 2012 (Kt)*# Internal supply of slabs and billets from Russian steel mills 2012 (Kt) # 15.3 Mt * Excluding routes with sales volumes below 100 kt each, together totalling 252 kt Semi- finished 24% Construction 37% Railway 12% Flat-rolled 18% Tubular 6% Other 3% by Product 15.3 Mt
  • 5. 4 EVRAZ average selling prices, $/t (ex works) Q1 2013 steel production Investor Presentation, May 2013  Output of total steel products increased by 11% in Q1 2013 vs. Q4 2012 mainly due to lower downtime at steelmaking facilities  Consolidated production of finished steel goods was largely flat quarter-on-quarter, while output of semi- finished products increased primarily at Russian operations  Production at EVRAZ ZSMK rail mill recommenced in January 2013 following the successful completion of the modernisation project  EVRAZ NTMK completed the implementation of the PCI project Production of steel products, Kt Share of finished products in product mix 0 200 400 600 800 1,000 1,200 1,400 Semi- finished products Construction products Railway products Flat-rolled products Tubular products Other steel products Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 26% 74% Semi-finished products Finished products Product group Q1 2013 Q4 2012 Q1 2012 Semi-finished (Russia) 419 396 480 Construction (Russia) 674 667 675 Flat-rolled (North America) 876 906 1,068 Tubular (North America) 1,387 1,422 1,565
  • 6. 5 Mining: Coal Investor Presentation, May 2013  In Q1 2013, raw coking coal production at Yuzhkuzbassugol increased by 14% compared to Q4 2012 due to increased production at the Alardinskaya and the Yesaulskaya mines, launch of a new longwall at the Osinnikovskaya mine and commissioning of the Yerunakovskaya VIII mine  Output of Raspadskaya was 3% higher as the flagship mine continued operating with two longwalls  Production of raw steam coal decreased due to suspension of mining at the Gramoteinskaya mine and longwall repositioning at the Kusheyakovskaya mine that started in December 2012 and continued throughout Q1 2013 EVRAZ’s raw coking coal production volumes, Kt (mined) Q1 2013 Q4 2012 Q1 2012 Raw coking coal 61 63 85 Raw steam coal 12 25 29 Coking coal concentrate 100 116 159 Steam coal concentrate - 49 70 EVRAZ average selling prices, $/t (ex works) 1,591 2,191 2,261 2,078 2,181 2,490 3,669 4,372 4,751 Q1 2012 Q4 2012 Q1 2013 Yuzhkuzbassugol Raspadskaya
  • 7. 6 Mining: Iron ore Investor Presentation, May 2013  Overall production of saleable iron ore products by the Company remained largely flat in Q1 2013 compared to Q4 2012.  In Q1 2013, production of saleable concentrate in Russia decreased by 8% as a result of lower Fe grades in the ore mined at EVRAZ VGOK and preparation for the closure of Irba mine of Evrazruda, which is expected in mid-2013  Volumes of sinter and pellets produced at the Russian operations in Q1 2013 were marginally lower due to a number of unscheduled minor repairs  Prices for pellets and saleable concentrate in Russia demonstrated positive dynamics in Q1 2013, while selling prices for sinter remained unchanged Iron ore production volumes, Kt EVRAZ average selling prices, $/t (ex works) Q1 2013 Q4 2012 Q1 2012 Concentrate, saleable (Russia) 91 70 91 Sinter (Russia) 70 70 105 Pellets (Russia) 79 74 104 Lumpy ore (Ukraine) 63 50 66 734 580 691 1,555 1,572 1,544 1,209 1,230 1,198 1,288 1,331 1,230 5,204 5,132 5,203 Q1 2012 Q4 2012 Q1 2013 Concentrate, saleable (Russia) Sinter (Russia) Pellets (Russia) Lumpy ore (Ukraine)
  • 8. 7 Vanadium Investor Presentation, May 2013  In Q1 2013, total production of primary vanadium (slag) increased by 4% mainly as a result of higher crude steel production at EVRAZ Highveld Steel and Vanadium  Total ferrovanadium production increased by 15% due to better slag availability in South Africa and record production at EVRAZ Vanady Tula Source: LMB Ferrovanadium prices (FeV), $/kg contained V 30.2 31.1 30.9 30.4 30.0 29.5 28.9 28.6 28.1 27.5 25.7 24.2 23.0 25.3 26.0 25.6 26.1 25.6 24.5 23.7 24.6 24.3 24.2 26.8 31.2 31.6 31.0 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Production of Vanadium products, t of V* * Calculated in pure vanadium equivalent Q1 2013 Q4 2012 Q1 2012 Vanadium in final products Ferrovanadium 28,814 23,579 23,109 Nitrovan® 30,690 26,912 26,521 Oxides, vanadium aluminum and chemicals 33,266 36,094 31,241 EVRAZ average selling prices, $/t (ex works)f 372 186 491 412 766 715 4,542 2,773 3,188 Q1 2012 Q4 2012 Q1 2013 Ferrovanadium Nitrovan® Oxides, vanadium aluminium and chemicals
  • 9. 8 Capex historic performance and outlook, $m 2012 capital expenditures breakdown by projects, $m Capex excluding Raspadskaya Investor Presentation, May 2013 * 2013 estimate CAPEX is ~10% less than budgeted capex  2012 capex was $1,261m in line with budget and Company’s guidance  2013 capex estimate is $1.1bn. Organic expansion of Raspadskaya can contribute up to $150m of additional capex  Growth in mining capex will be driven by the development of Mezhegey hard coking coal deposit and construction of Yerunakovskaya VIII coking coal mine  Steel segment capex is mostly a continuation of upgrade projects  Depending on prevailing market environment, development capex might be postponed or reduced if necessary 832 1,281 1,261 ~1,100 2010 2011 2012 2013 estimate* Investment projects, Mining Investment projects, Steel, Vanadium and Other operations Maintenance including some support of mining capacity 143 135 58 51 41 31 15 130 657 EVRAZ ZSMK rail mill modernisation Yerunakovskaya VIII mine PCI at EVRAZ NTMK PCI at EVRAZ ZSMK Vostochniy mill Yuzhniy mill Mezhegey (Phase I) coal project Other investment projects Maintenance
  • 10. 9 Key investment projects Investor Presentation, May 2013 Project Total capex*, $m Remaining capex at 1/01/2013*, $m 2013 capex Budgeted*, $m Project targets Steel 248 Rail mill modernisation at EVRAZ ZSMK 490 63 63  Increase of production capacity to 950 ktpa, including 450 ktpa of 100 metre rails  Launched in January 2013. Ramp-up to be completed by Q1 2014 Pulverised coal injection (PCI) at EVRAZ ZSMK 152 51 42  Coke consumption to be reduced by ca. 20% and natural gas by ca. 50%, with additional 140kg PCI coal per tonne of pig iron  Launch in Q1 2014 Construction of Vostochniy rolling mill (Kazakhstan) 124 67 49  New capacity: 450 ktpa of construction products  Hot tests to start in Q3 2013 Construction of Yuzhniy rolling mill (Southern Russia) 142 65 26  New capacity: 450 ktpa of construction products  Hot tests to start in H2 2014 Rail mill expansion at EVRAZ North America 32 18 18  Increase of rail mill capacity from 525 ktpa to 580 ktpa and improvement in product quality  To be completed in Q3 2013 Heat treatment expansion at Calgary mill of EVRAZ North America 64 64 50  Shift to higher margin for heat treated pipes  To be completed in Q4 2013 Coal & iron ore 248 Yerunakovskaya VIII mine construction 310 132 108  Production of up to 2.5 Mtpa of coking coal  Ramp-up to be completed by Q1 2014 Development of Mezhegey coal deposit 222 176 111  Production of up to 1.5 Mtpa of hard coking coal;  Ramp-up to be completed in H2 2014 Expansion of Sheregesh mine 90 48 29  Increase iron ore production to 4.8 Mtpa, replace depleting mines  Decrease of cash cost per tonne  Ramp-up to be completed in H2 2013 TOTAL 496 * Excluding VAT
  • 11. 10 Update on rail and beam mill and PCI projects  Rail and beam mill at ZSMK  Launched in January 2013, first 100 metre rails produced in March 2013  Current production rate 40 kt/month, plan to reach design capacity of 100 kt/month in Q1 2014 (including 79 kt/month of rails)  Certification for 100 metre rails expected in Q1 2014, after which commercial sales can begin  PCI at NTMK  Launched in January 2013  Currently working in the consumption mode of 95 kg PCI coal/t of pig iron, whilst expecting to increase PCI coal consumption to 140 kg/t of pig iron from April 2013  Planned reduction in coke consumption is 23% (310 kg/t vs. 405 kg/t) and in natural gas consumption – 58% (55 m3/t vs.130 m3/t)  Cost saving effect is expected to be approximately $10/t of crude steel  PCI at ZSMK  Delayed to optimise design solutions  Launch expected in Q1 2014 Investor Presentation, May 2013
  • 12. 11 Key market developments and outlook Investor Presentation, May 2013  Global markets remain volatile resulting in ongoing uncertainty and low visibility in EVRAZ’s key markets  Full utilisation of Russian steel making capacities continues  High level of North American steelmaking capacity utilisation  Finished goods inventories at our mills and sales network remain at normal levels  EVRAZ order book (Russian export sales) currently represents over 1.1 month’s production on average  Iron ore prices have grown slightly since the end of 2012 while coking coal prices remain largely flat  Ferrovanadium prices in Q1 2013 are at the level of $31/kg of contained Vanadium, higher than in 2012 Raw material prices (domestic markets), $/t Source: Metal Expert Steel product prices (domestic markets), $/t 0 50 100 150 200 250 300 350 400 450 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Scrap, Russia, CPT Scrap, USA, CPT Iron ore concentrate, Russia, ExW Coking coal concentrate, Russia, FCA 300 400 500 600 700 800 900 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Slabs, Russia, FOB Far East Billets, FOB Black Sea Plate, USA, domestic, ExW Plate, Italy, import C&F
  • 14. 13  Safety remains a key priority  Growth of LTIFR partially reflects more comprehensive and accurate statistics and zero tolerance approach to concealment of accidents  Falls and equipment related injuries contribute to 42.5% of all LTI’s recorded in 2012  25 fatalities recorded in 2012  Company-wide programmes have been intensified in 2013:  actions to ensure walkways at all facilities are safe and do not create risks for employees using them on daily basis  focus on working at heights’ safety measures for employees and contractors HSE Performance Fatalities * Calculated as the total number of work-related injuries (which resulted in the loss of work time) Lost Time Injury Frequency Rate (LTIFR)* 1.86 2.23 2011 2012 13 25 2011 2012 Investor Presentation, May 2013
  • 15. 14 2012 summary Investor Presentation, May 2013 US$ million unless otherwise stated * EBITDA represents profit from operations plus depreciation, depletion and amortisation, impairment of assets, foreign exchange loss gain) and loss (gain) on disposal of property, plant and equipment and intangible assets ** As at 31 December 2012 and 2011 respectively; short-term debt includes short-term and current portion of long-term liabilities, comprising loans and finance lease, including those directly associated with disposal groups classified as held for sale *** Here and throughout this presentation segment sales data refer to external sales unless otherwise stated 2012 2011 Change Revenue 14,726 16,400 (10)% EBITDA* 2,012 2,898 (31)% EBITDA margin 13.7% 17.7% (4)% Net profit/(loss) (335) 453 n.a. Operating cash flow 2,143 2,647 (19)% Capex 1,261 1,281 (2)% Net debt** 6,184 6,442 (4)% Short-term debt** 1,862 626 197% Steel sales volumes*** (‘000 t) 15,292 15,492 (1)%
  • 16. 15 Revenue drivers, $m Consolidated EBITDA by segment, $m Consolidated revenue by segment, $m 2012 financial highlights Investor Presentation, May 2013  Decrease in revenue driven by a combination of lower steel and raw materials (iron ore and coking coal) prices as well as by lower mining sales volumes  2012 EBITDA affected by weak performance of mining segment as a result of lower volumes and lower average sales prices for iron ore and coking coal 1,262 1,326 1,628 622 22 (19) 197 189 (211) (106) 2,898 2,012 2011 2012 Eliminations and unallocated Other operations Vanadium Mining Steel 16,400 (171) (933) (273) (168) (139) 10 14,726 12,000 13,000 14,000 15,000 16,000 17,000 Revenue 2011 Volumes, steel Prices, steel Volumes, mining Prices, mining Vanadium Other revenue Revenue 2012 14,717 13,543 3,784 2,650 665 520 966 1,046 (3,732) (3,033) 16,400 14,726 2011 2012 Eliminations Other operations Vanadium Mining Steel
  • 17. 16 Steel products: sales by market Investor Presentation, May 2013 kt $m 6,722 2,766 3,020 1,562 849 573 6,570 2,746 3,249 1,450 802 475 Russia Americas Asia Europe CIS Africa & RoW 2011 2012 5,443 3,276 1,988 1,348 716 486 5,126 3,093 1,909 1,006 645 357 Russia Americas Asia Europe CIS Africa & RoW 2011 2012
  • 18. 17 Cash cost**, slabs & billets, $/tConsolidated cost of revenues by cost elements Focus on cost efficiencies Investor Presentation, May 2013  Lower raw material costs (-20%) due to lower purchase prices of iron ore, coking coal and scrap  Growth of intragroup re-rolling of slabs led to 39% decrease of cost of purchased semi-products  Cost of goods for resale increased by 55%, as third party products were purchased to meet the demand  Savings of $49m on the back of increased proprietary power generation. Currently 42% of electricity consumption in Russia and Ukraine are self-covered  Growth in depreciation due to revaluation of mineral reserve base at Yuzhkuzbassugol  Increase in other costs was driven by destocking at 2012 year-end Source: Management accounts Item 2012 2011 Change Relative change Cost of revenue (11,797) 100% (12,473) 100% 676 (5)% Raw materials, incl. (4,091) 35% (5,137) 42% 1,046 (20)% Iron ore (681) 6% (873) 7% 192 (22)% Coking coal (1,050) 9% (1,389) 11% 339 (24)% Scrap (1,570) 13% (1,943) 16% 373 (19)% Other raw materials (790) 7% (932) 8% 142 (15)% Semi-finished products (483) 4% (788) 6% 305 (39)% Auxiliary materials (1,006) 9% (947) 8% (59) 6 % Services (665) 6% (674) 5% 9 (1)% Goods for resale (632) 5% (407) 3% (225) 55 % Transportation (740) 6% (694) 6% (46) 7 % Staff costs (1,765) 15% (1,628) 13% (137) 8 % Depreciation (1,100) 9% (1,015) 8% (85) 8 % Electricity (551) 5% (600) 5% 49 (8)% Natural gas (416) 3% (427) 3% 11 (3)% Other costs* (348) 3% (156) 1% (192) 123 % * Includes auxiliary materials, services, goods for resale, taxes, change in WIP and FG ** Average for Russian steel mills, integrated cash cost of production, EXW The data in this chart is derived from the unaudited monthly management accounts of EVRAZ in respect of the periods indicated above 416 408 375 374 458 437 406 427 H1 2011 H2 2011 H1 2012 H2 2012 Slabs Billets
  • 19. 18 Cost structure of Vanadium segment, $m Cost structure of Mining segment, $mCost structure of Steel segment, $m Cost Structure by Segment Investor Presentation, May 2013 21% 18% 16% 14% 16% 14% 7% 6% 6% 4% 4% 5% 8% 10% 4% 4% 8% 9% 10% 16% 12,375 11,154 2011 2012 Other Energy Depreciation Staff costs Transportation Semi-finished products Other raw materials Scrap Coking coal Iron ore 52% 40% 12% 13% 5% 5% 12% 14% 19% 28% 610 494 2011 2012 Other Energy Depreciation Staff costs Raw materials 12% 6% 12% 12% 22% 24% 22% 26% 11% 11% 21% 21% 2,363 2,306 2011 2012 Other Energy Depreciation Staff costs Transportation Raw materials
  • 20. 19 Performance by Regions Investor Presentation, May 2013 EBITDA, EVRAZ South Africa, $m * Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(243)m in 2011 and $(199)m and $(1)m other regions in 2012 ** EVRAZ North America includes EVRAZ Inc. NA, EVRAZ Inc. NA Canada, Stratcor; EVRAZ Ukraine includes EVRAZ DMZP, Sukha Balka and coking plants; EVRAZ Europe includes EVRAZ Palini e Bertoli, EVRAZ Vitkovice Steel, Nikom and attributable trading margin EBITDA, EVRAZ Europe, $mEBITDA, EVRAZ Ukraine, $m EBITDA, EVRAZ Russia, $m EBITDA, EVRAZ North America, $m 2,458 1,952 2011 2012 465 340 2011 2012 114 (2) 2011 2012 78 (11) 2011 2012 26 (67) 2011 2012
  • 21. 20 2012 FCF generation  Positive cash flow despite market weakness  Working capital release of $441m (excluding income tax) due to falling cost of inventory, improved recoverability of taxes and related party receivables  2012 cash flow generation supported by proceeds from EvrazTrans sale ($306m) and disposal of other small non-core businesses  No final dividend payment for 2012 to retain financial flexibility in an uncertain environment Investor Presentation, May 2013 * In 2012, includes interest paid, covenant reset charges, realised gain on swaps and interest income 2,012 (12) 2,000 441 (298) 2,143 (478) (1,261) 306 60 10 780 EBITDA 2012 Non-cash items EBITDA (excl. non-cash items) Changes in working capital (excl. income tax) Income tax paid Cash flows from operating activities Interest and similar payments* Capex Proceeds from sale of EvrazTrans CF from other investing activities (excl. term bank deposits and interest received) Collateral under swaps Free cash flow Free cash flow generation in 2012, $m
  • 22. 21 Liquidity and debt maturity profile  Major 2013 maturities are already paid-out and $950 million PXF facility pre-paid in full  Successful placement of $1 billion Eurobond issue in April 2012 maturing in 2020 and bearing 6.5% p.a.  Continuous focus on debt portfolio optimisation:  RUB bond proceeds are swapped into USD to decrease overall debt service costs  average weighted interest (including effect of cross currency swaps) decreased from 7.4% in 2010 to 6.2% in 2012  successful consent solicitation exercise in 2012 generally harmonised covenant packages in the outstanding Eurobonds  Public debt is 68% (40% - Eurobonds, 28% - Rouble bonds) and bank loans are 32% of total debt  Debt composition: USD – 66%, synthetic USD – 28%, EUR – 5%, other – 1%  Deleveraging continues to be the key target for the medium term Investor Presentation, May 2013 * Weighted average cost of debt ** Principal debt (excl. interest payments) Debt** maturities schedule (as at 31 December 2012), $mDebt cost* and average maturity 2.0 2.5 3.0 3.5 4.0 4.5 5.0 6.0 6.5 7.0 7.5 8.0 31/12/10 31/03/11 30/06/11 30/09/11 31/12/11 31/03/12 30/06/12 30/09/12 31/12/12 % (LHS) Years (RHS)
  • 23. 22 EBITDA Investor Presentation, May 2013 US$ million 31 December 2012 31 December 2011 Consolidated EBITDA reconciliation Profit from operations 243 1,860 Add: Depreciation, depletion and amortisation 1,259 1,153 Impairment of assets 413 104 Loss on disposal of property, plant & equipment 56 50 Foreign exchange (gain) loss 41 (269) Consolidated EBITDA 2,012 2,898
  • 24. 23 Net debt Investor Presentation, May 2013 US$ million 31 December 2012 31 December 2011 Net debt calculation Add: Long-term loans, net of current portion 6,373 6,593 Short-term loans and current portion of long-term loans 1,783 613 Finance lease liabilities, including current portion 13 39 Loans of disposal groups classified as held for sale 79 - Less: Short-term bank deposit (674) (2) Cash and cash equivalents (1,320) (801) Cash of disposal groups classified as held for sale (70) - Net debt 6,184 6,442
  • 25. 24 Quarterly steel products output by assets Investor Presentation, May 2013 Russia, Kt North America, Kt Europe, Kt South Africa, Kt 1,050 949 1,122 970 1,173 1,069 1,037 1,127 1,049 993 435 356 269 250 261 104 84 74 71 64 150 138 120 132 149 2,807 2,564 2,713 2,472 2,640 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Semi-finished products Construction products Railway products Flat-rolled products Other steel 83 79 79 90 82 117 134 114 126 122 261 254 239 214 281 206 211 210 245 231 666 678 642 676 717 0 200 400 600 800 1,000 1,200 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Construction products Railway products Flat-rolled products Tubular products 17 26 26 14 269 243 207 200 228 8 23 4 4 5 294 267 237 230 247 0 50 100 150 200 250 300 350 400 450 500 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Construction products Flat-rolled products Other steel products 12 3 56 41 27 45 41 70 66 35 71 74 10 14 4 6 9 148 124 66 123 124 0 50 100 150 200 250 300 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Semi-finished products Construction products Flat-rolled products Other steel
  • 26. London +44 207 832 8990 Moscow +7 495 232 1370 IR@evraz.com www.evraz.com