Db access ceemea conference, london

Investor PresentationdbAccess CEEMEA Conference

23-25th January 2013, London

1

EVRAZ in brief One of the largest vertically integrated steel and mining companies in the world Top-20 steel producer in the world based on crude steel production 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 14.2 million tonnes of steel products produced in 2012 2011 consolidated revenue of US$16.4 billion, EBITDA of US$2.9 billion; H1 2012

revenue of US$7.6 billion, EBITDA of US$1.2 billion Total debt as at 30 June 2012 of US$7.8 billion, net debt/LTM EBITDA of 2.5x 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 Total dividend payments of US$375 million in 2012

Investor Presentation January 2013

2

Global operating model


North America

South America Africa

Europe

Russia/CIS

Asia

100

1,717

529

231

Sea portsVanadiumCoal miningIron ore miningSteel mills

Mezhegey coal mine in development

150

122

Third party steel products sales* (Kt), H1 2012# Internal supply of slabs and billets from Russian steel mills (Kt)#

580

H1 2012 steel sales volumeby geography

H1 2012 steel sales volumeby product

3,7301,313

* Excluding routes with sales volumes below 50kt each, together totalling 93kt

Russia & CIS48%

Europe8%

Americas17%

Asia22%

Africa and RoW4%

Semi-finished

22%

Construction37%

Railway14%

Flat-rolled18%

Tubular5%

Other4%

Production Update

4

Q4 2012 steel production


Crude steel output decreased by 6% vs. Q3 2012 due to planned maintenance at EVRAZ ZSMK in Russia and suspension of steel shop’s operations in the Czech Republic to reduce slab inventory

Consolidated production of finished steel goods was marginally flat QoQ at 2.6-2.7 mt PCI project at EVRAZ NTMK was mostly completed with ramp-up scheduled for Q1 2013 Rail mill at EVRAZ ZSMK launched in early 2013 after modernisation 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-finishedproducts

Constructionproducts

Railwayproducts

Flat-rolledproducts

Tubularproducts

Other steelproducts

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

20%

80%

Semi-finished products

Finished products

5

2012 steel production


EVRAZ’s overall production of crude steel decreased by 5% vs. 2011 due to a large number of overhauls in Russia for asset modernisation suspensions of steelmaking in the Czech Republic for maintenance and to reduce slab inventory interruptions of production in South Africa caused by industrial actions

Consolidated production of finished steel goods decreased by 5% compared to 2011 as a result of lower output of flat-rolled products in Europe and lower production of railway products in Russia due to reconstruction of EVRAZ ZSMK rail mill

Production of steel products, Kt Share of finished products in product mix

0

1,000

2,000

3,000

4,000

5,000

6,000

Semi-finishedproducts

Constructionproducts

Railwayproducts

Flat-rolledproducts

Tubularproducts

Other steelproducts

2011 2012

22%

78%


Finished products

6

Steel: Russia


Full economic utilisation of Russian steelmaking capacity maintained through 2012

In 2012 crude steel output decreased by 4% vs. 2011 due to a larger number of overhauls of blast furnaces and converters as well as the EVRAZ ZSMK rail mill modernisation project

In 2012, production of railway products was 14% lower vs. 2011 as EVRAZ ZSMK rail mill was closed for reconstruction from April 2012

Average prices for some high value added products such as railway products enjoyed positive dynamics due to improved product mix

68% 67%

32% 33%

5,541 5,586

H1 2011 H1 2012

Export

Domestic

Steel production volumes, Kt EVRAZ average selling prices, $/t (ex works)

Steel product sales, domestic (Russia and CIS) vs. export, Kt

2012 2011 Q4 2012 Q3 2012

Semi-finished products 457 529 396 443

Construction products 677 732 667 680

Railway products 891 882 911 908

Flat-rolled products 607 706 559 577

Other steel products 729 790 709 714600 540356 334

1,564 1,346

4,220 4,281

4,202 4,091

10,942 10,592

2011 2012


Construction products

Railway products

Flat-rolled products

Other steel products

7

Steel: North America


In 2012, EVRAZ’s North American steelmaking facilities continued to operate at high utilisation rates, and output of crude steel increased by 4% vs. 2011

Production of finished steel goods was marginally flat year-on-year

Slightly better results for construction and tubular products were achieved through redistribution of production capacity from other product categories: Output of construction products increased by 9% as a result of healthy demand for rod & bar products. A third working shift at

EVRAZ Pueblo was added to meet the increased demand for these products

Production of tubular goods increased by 3% due to an overall improvement in customer demand

Steel production volumes*, Kt Average selling prices, $/t (ex works)fyreetfjpigtyre4wjojioyugy

2012 2011 Q4 2012 Q3 2012


Railway products 989 1,023 932 928

Flat-rolled products 1,017 1,134 901 992

Tubular products 1,509 1,486 1,461 1,472

* FY 2012 production volumes are preliminary

848 869

1,007 975

490 486

302 330

2,646 2,661

2011 2012


Railway products


Tubular products

8

Steel: Europe and South Africa


Crude steel output in Europe was lower by 42% vs. 2011 as a result of prolonged maintenance works at the EVRAZ Vitkovice Steel’s steelmaking facility in July-August 2012 and its suspension in Q4 2012 in order to reduce slab inventory

Operational performance of EVRAZ Highveld Steel and Vanadium was impacted by unstable operations in the first half of 2012, the industrial action in Q3 2012, ramp-up problems in the second half of the year following the end of industrial action as well as by a transportation strike in the country

47 34

287243

179

169

51

15

564

461

2011 2012





79 39

1,057920

131

69

1,267

1,028

2011 2012




SOUTH AFRICA 2012 2011 Q4 2012 Q3 2012

Semi-finished products 489 587 699 742



Other steel products 604 677 636 615

Steel production volumes, Europe, Kt

Average selling prices, $/t (ex works) fyreetfjpigtyre4wjojioyugy

EUROPE 2012 2011 Q4 2012 Q3 2012



Steel production volumes, South Africa, Kt

9

Mining: Coal


In 2012, raw coking coal output by Yuzhkuzbassugol was 35% higher vs. 2011 due to more stable performance of the mines as a result of successfully implemented operational improvement programmes

Production of coking coal concentrate was flat year-on-year

Output of raw steam coal decreased by 23% vs. 2011 following the repositioning of a longwall at the Gramoteinskaya mine in Q1 2012, as well as suspension of mining at the Gramoteinskaya mine in Q4 2012

Steam coal concentrate production decreased by 51% due to larger raw steam coal sales and lower output

EVRAZ’s coal production volumes, Kt

2012 2011 Q4 2012 Q3 2012

Raw coking coal 69 97 63 65

Raw steam coal 27 36 25 27

Coking coal concentrate 136 203 116 129

Steam coal concentrate 56 80 49 59

Average selling prices, $/t (ex works)fyreetfjpigtyre4wjojioyugy

6,2517,002

2011 2012

*

* Reported numbers are for 100% production. As at 31 December 2012 EVRAZ held a 41% effective interest in the Raspadskaya coal company, on 16 January 2013 EVRAZ increased interest in Raspadskaya to 82%

Raspadskaya’s coal production volumes, Kt

6,3038,506

2,965

2,2839,268

10,789

2011 2012

Raw steam coal (mined)

Raw coking coal (mined)

10

Mining: Iron ore


In 2012, production of saleable iron ore products by the Company was slightly down by 2% compared to 2011 Production of saleable concentrate in Russia decreased by 13% due to the following:

termination of processing of third party raw ore being uneconomic in the current market environment; change in the product mix (larger volumes of sinter output); scheduled kiln repair at EVRAZ KGOK iron ore processing plant in Q3 2012

Output of lumpy ore by EVRAZ Sukha Balka in Ukraine in 2012 was 7% higher vs. 2011 as a result of smoother repositioning of a skip conveyor in the reporting year vs. 2011

Decreased production of iron ore in South Africa was due to operational issues as a result of an industrial action at EVRAZ Highveld Steel and a nationwide transportation labour strike

Iron ore production volumes, Kt EVRAZ average selling prices, $/t (ex works)fyreetfjpigtyre4wjojioyugy

2012 2011 Q4 2012 Q3 2012

Concentrate, saleable (Russia) 84 111 70 82

Sinter (Russia) 91 128 70 89

Pellets (Russia) 91 132 74 95

Lumpy ore (Ukraine) 61 78 50 61

Fines ore (South Africa) 12 24 13 9640 607

2,446 2,608

5,907 6,051

4,473 4,698

6,447 5,615

1,257 1,174

21,170 20,753

2011 2012

Lumpy ore (South Africa)

Concentrate, saleable (Russia)

Sinter (Russia)

Pellets (Russia)

Lumpy ore (Ukraine)

Fines ore (South Africa)

11

Vanadium


In 2012, the strong performance of Russian operations (+16% y-o-y) fully offset lower output at EVRAZ Highveld Steel and Vanadium (-21% y-o-y) and led to overall growth of production of vanadium in slag at EVRAZ by 2% to 20,741 tonnes of V

Production of final vanadium products fell by 12%

Total production of ferrovanadium decreased by 14% vs. 2011 but increased by 15% at EVRAZ’s own facilities in the Czech Republic and Russia which were operating at maximum capacity to meet the improved market demand

Production of Vanadium products, t of V*

Ferrovanadium prices (FeV), $/kg contained V

Source: LMB

23.0

25.326.0

25.6

26.1

25.6

24.523.7

24.6

24.3

24.2

26.8

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

2012 2011 Q4 2012 Q3 2012

Vanadium in final products

Ferrovanadium 24,062 27,653 23,579 24,517

Nitrovan® 27,900 29,506 26,912 28,615

Oxides, vanadium aluminiumand chemicals 32,579 36,194 36,024 30,944

EVRAZ average selling prices, $/t (ex works)f

* Calculated in pure vanadium equivalent

1,277 1,3302,874 2,723

16,68314,381

20,83418,434

2011 2012

Ferrovanadium

Nitrovan®

Oxides, vanadium aluminiumand chemicals

12

Key Investment Projects


Iron ore & coal

CAPEX in H2 2012,

$m Project Targets

Steel

Coal & iron ore

Total CAPEX$m

CAPEX in H1 2012

$m Project TargetsProject

Cumulative CAPEX by 30.06.2012

$m Project targets

Construction of Kostanay rolling millo Capacity: 450 ktpa of construction products o On-stream by mid-2013, fully operational in Q3 2014

Reconstruction of rail mill at EVRAZ ZSMK (former NKMK)

o Capacity of 950k tonnes of high-speed rails, including 450k tonnes of 100 metre rails

o On-stream in Q1 2013, fully operational since Q4 2013

Pulverised coal injection (PCI) at EVRAZ NTMK

o Coke consumption is expected to reduce by 20% and natural gas by 50% for the additional usage of 150 kg of PCI coal per tonne of pig iron

o Launched in December 2012, fully operational in Q1 2013

Pulverised coal injection (PCI) at EVRAZ ZSMK

o On-stream by 2014, fully operational since Q1 2014

Reconstruction of mechanical area at EVRAZ NTMK wheel & tyre mill

o Production of higher-quality wheelso Start production in Q2 2014; full capacity by Q3 2014

125 38 18

490 366 84

170 130 28

150 88 27

40 25 3

Yerunakovskava VIII mine construction o Coal production of 2 mtpao Start in Q1 2013, full capacity to be reached in Q1 2014

390 81 47

Development of Mezhegey coal deposit (Tyva, Russia)

o Maintaining self-sufficiency in high-quality hard coking coal after depletion of existing deposits

o On-stream Q4 2013, reaching full capacity by Q4 2014190 23 18

Expansion of Kachkanar mineo Iron ore production to be increased to 55 mtpao On-stream by the end of Q1 2013

76 60 13

In progressFinal stage of completion

150

25

14

113

29

50

8

28

Construction of Yuzhny rolling mill 135 55 16 32 o Capacity: 450 ktpa of construction products o On-stream by mid-2013, fully operational in 2015

13

Acquisition of Raspadskaya


In January 2013, EVRAZ completed acquisition of an indirect controlling interest in OJSC Raspadskaya, increasing its stake from 41% to 82%

Remaining 18% of Raspadskaya shares will remain listed on the Russian Stock Exchange, MICEX-RTS Pursuant to the terms of the Acquisition, EVRAZ has issued new ordinary shares which are admitted to trading

on the Main Market of the London Stock Exchange The resulting total number of voting rights in the Company is 1,472,582,366 as at 16 January 2013 EVRAZ issued 33,944,928 new warrants to subscribe for new 33,944,928 ordinary shares in EVRAZ as well as

will pay to the seller $202m in four equal payments in Q1, Q2 and Q3 2013 and Q1 2014 Raspadskaya will be consolidated in EVRAZ’s financial statements from 16 January 2013

Major shareholdingsRaspadskaya assets

Facilities Three underground coking coal mines

Open-pit coking coal mine Raspadskaya coal concentrate

preparation plant

Coking coal reserves (IMC, 31/12/2011)

1,314 million tonnes

Production in 20116.3 mt of raw coking coal3.8 mt of coking coal concentrate

Shareholder Number of ordinary shares

% of issued share capital

Mr. Roman Abramovich 471,302,870 32.01%

Mr. Alexander Abramov 330,216,751 22.42%

Mr. Alexander Frolov 164,892,446 11.20%

Mr. Gennady Kozovoy 67,191,316 4.56%

Mr. Alexander Vagin 66,326,503 4.50%

Mr. Igor Kolomoyskiy 59,865,435 4.07%

Mr. Eugene Shvidler 46,825,408 3.18%

Selected Financial Information

15

H1 2012 summary


US$ million unless otherwise stated

1 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

2 As at 30 June 2012 and 31 December 2011 respectively; short-term debt includes current portion of finance lease liabilities, including lease liabilities directly associated with disposal groups classified as held for sale

3 Here and throughout this presentation segment sales data refer to external sales unless otherwise stated

H1 2012 H1 2011 Change

Revenue 7,619 8,380 (9)%

EBITDA1 1,175 1,629 (28)%

EBITDA margin 15.4% 19.4% (21)%

Net profit/(loss) (50) 263 (119)%

Dividends for the period (cents/ordinary share) 11c 6.7c 64%

Operating cash flow 1,089 1,594 (32)%

Capex 565 462 22%

Net debt2 6,070 6,442 (6)%

Short-term debt2 1,550 626 148%

Steel sales volumes3 (‘000 t) 7,713 7,946 (3)%

16

Liquidity and debt maturity profile


Total debt of $7,833m as of 30 June 2012, having increased as a result of drawing on available credit lines to increase the cash balance

Cash and cash equivalents totalled $1,763m ($801m as at 31 December 2011) Net debt - $6,070m (6% decrease vs. 31 December 2011) In December 2012, EVRAZ received consent of the holders of its 8.25% Eurobonds due 2015 to delete the

covenant requiring to maintain the Net Leverage Ratio at or below a specified level (“maintenance covenant”) In December 2012, EVRAZ successfully placed ECPs in the total amount of US$250 million EVRAZ* issuer credit ratings (S&P B+, Stable; Moody’s Ba3, Stable; Fitch’s BB-, Stable)

3

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

5

6

6.2

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

8

31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012

% Years

414

1,124981

1,400

1,875

630

1,373

360

500

1,000

1,500

2,000

2012 2013 2014 2015 2016 2017 2018 2019-2023

Q4

Q3

Q2

Q1

Debt cost** and average maturity Debt*** maturities schedule (as at 30 June 2012), $m

* All ratings refer to Evraz Group S.A., except for Fitch’s, which also refers to EVRAZ plc** Weighted average cost of debt*** Principal debt (excl. interest payments)

17

Capex dynamics


1,103

441

832

1,281

565

-

200

400

600

800

1,000

1,200

1,400

2008 2009 2010 2011 H1 2012

Maintenance, Steel and other operations Iron ore mine development Coal mine development * Investment projects

* Investment into maintaining and developing mining volumes, such as preparation of coal seams

H2 2012 capexexpected in the range of $650-750m

$m

Appendices

19

HSE performance


0.81

0.94

H1 2011 H1 2012

1.852.02

H1 2011 H1 2012

Increase in LTIFR and FIFR vs. H1 2011

Safety remains a key priority

Key ongoing safety initiatives: Contractor safety management Fall prevention (follow 6S project) PPE (Personal Protective Equipment) Improvement in workplace conditions Tests for drugs and alcoholic intoxication Internal safety training

Key ongoing environmental initiatives: Water use: Wastewater dumping reduction programme

(ZSMK, NTMK, Yuzhkuzbassugol, Evrazruda, DMZP); Air emissions: Air protection equipment upgrade (ZSMK,

DMZ, Claymont); Waste management: Waste recycling and reuse

programmes (ZSMK,NTMK, Vanady Tula)

Lost Time Injury Frequency Rate (LTIFR)*

Fatal Injury Frequency Rate (FIFR)*

* Calculated as the total number of work-related injuries (which resulted in the loss of work time) – LTIFR or fatalities – FIFR/total number of working hours during the period x 1,000,000

20

Quarterly steel products output by assets


Russia, Kt North America, Kt

Europe, Kt South Africa, Kt

1,030 1,050 949 1,122 970

1,093 1,069 1,0371,127

1,049

361 445366

277258

97104

84 7471

143150

138 120132

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Semi-finished products Construction products Railway products Flat-rolled products Other steel

74 83 79 79 89

124 117 134 114 122

246 261 254 239 221

194 206 211210 242

0

100

200

300

400

500

600

700

800

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Construction products Railway products Flat-rolled products Tubular products

33 17 26 26

236 269243 207 200

15 823

4 4

0

50

100

150

200

250

300

350

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Construction products Flat-rolled products Other steel products

7 12 3

4656

4127

45

6970

66

35

71

1510

14

4

6

020406080

100120140160180200

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Semi-finished products Construction products Flat-rolled products Other steel

21

H1 2012 financial highlights


The major factor of the decrease in revenue was reduced steel sales volumes and prices

Decrease in revenues and EBITDA was also a result of lower Mining segment contribution because of lower raw materials volumes and prices

(1,954) (1,587)

7,492 7,019

2,0401,383

320263

482541

8,3807,619

H1 2011 H1 2012

Other operations

Vanadium

Mining

Steel

Eliminations

* Vanadium & Other operations consists in H1 2011 of $(3)m Vanadium segment EBITDA and $83m of Other operations EBITDA and in H1 2012 of $4m and $94m respectively

(157) (39)

744 699

962

417

80

98

1,629

1,175

H1 2011 H1 2012

Vanadium & OtheroperationsMining

Steel

Unallocated &Eliminations

Revenue drivers, $m Consolidated EBITDA by segment*, $m

Consolidated revenue by segment, $m

8,380

(437)(324)

7,619

H1 2011 Revenue Volumes Prices H1 2012 Revenue

22

Revenue: geographic breakdown


Russia40%

Ukraine4%

Other CIS3%

Americas22%

Europe13%

Middle East3%

China1%

Thailand4%

Other Asian7%

Africa & RoW3%

H1 2011

Russia41%

Ukraine3%

Other CIS4%

Americas24%

Europe10%

Middle East2%

China1%

Thailand3%

Other Asian9%

Africa & RoW3%

H1 2012

23

Steel products: sales by market


3,331

431

858

1,4411,586

300

3,324

406632

1,345

1,732

275

Russia CIS Europe Americas Asia Africa & RoW

H1 2011 H1 2012

Kt

2,661

359

758

1,652

1,015

257

2,604

336492

1,582

1,068

214

Russia CIS Europe Americas Asia Africa &RoW

$m

3,331

431

858

1,4411,586

300

3,324

406632

1,345

1,732

275

Russia CIS Europe Americas Asia Africa & RoW

H1 2011 H1 2012

Kt

24

EBITDA


US$ million

2012 2011Consolidated EBITDA reconciliation

Profit from operations 430 859Add:

Depreciation, depletion and amortisation 668 501Impairment of assets 80 32Loss on disposal of property, plant & equipment 25 17Foreign exchange (gain) loss (28) 220Consolidated EBITDA 1,175 1,629

Six months ended 30 June

25

Resilient and profitable asset base


EBITDA, EVRAZ North America, $m

EBITDA, EVRAZ South Africa, $m

EBITDA, EVRAZ Russia, $m

EBITDA, EVRAZ Europe, $m

Note. (1) Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(109)m in H1 2011 and $(89)m in H1 2012 (2) 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

265

216

H1 2011 H1 2012

81

(3)H1 2011 H1 2012

29

(6)

H1 2011 H1 2012

EBITDA, EVRAZ Ukraine, $m

1,276

1,051

H1 2011 H1 2012

87

6

H1 2011 H1 2012

26

Cost structure by segment


Cost structure of Mining segment, $mCost structure of Steel segment, $m

Cost structure of Vanadium segment, $m

21% 19%

17%15%

17%

16%

7%

5%

6%

4%

4%

4%

8%

9%

3%

4%

8%

9%

9%

15%

6,2375,749

H1 2011 H1 2012

Other

Energy

Depreciation

Staff

Transportation


Other raw materials

Scrap

Coking coal

Iron ore 12% 7%

13%10%

24% 23%

15% 30%

13%

11% 23%

19% 1,092

1,177

H1 2011 H1 2012

Other

Energy

Depreciation

Staff costs

Transportation

Raw materials

35%28%

6%12%

13%

5%

5%

12%

13%

30%

41%

304

242

H1 2011 H1 2012

Other

Energy

Depreciation

Staff costs

Transportation

Raw materials

27

Group cost dynamics


EVRAZ benefits from high level of vertical integration in iron ore and coking coal

Costs were positively impacted by rouble devaluation in H1 2012 (more than 50% of the costs are rouble-denominated)

In H1 2012 steel segment costs benefited from lower raw materials prices: costs of raw materials accounted for45% of Steel segment revenues in H1 2012 vs. 51% in H1 2011

Implementation of cost saving technologies (e.g. PCI), further development of own power generation, progressof Lean project are expected to help mitigate negative impact of growing energy, transportation and labour costs

H1 2012, % of total CoR

H1 2011, % of total CoR

Raw materials, including 35% 40%Iron ore 6% 8%Coking coal 9% 12%Scrap 14% 14%Other raw materials 6% 6%

Semi-finished products 4% 6%Transportation 6% 7%Staff costs 14% 13%Depreciation 10% 7%Electricity 5% 5%Natural gas 4% 4%Other costs 22% 18%

Consolidated cost of revenues by cost elements Cash Cost*, Slabs & Billets, $/t

* Average for Russian steel mills, integrated cash cost of production, EXWSource: Management accounts

395438 415 401 379 372 368

437479

448 426 410 403 401

Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12

Slabs

Billets

28

FCF generation


* Free cash flow comprises cash flows from operating activities less interest paid and cash flows used investing activities

Free cash flow generation of $362m in H1 2012 Further release of working capital achieved

$m1,175

(43)1,132

91

(134)1,089

(233)

(565)

92

(21)362

EBITDA H12012

Non-cash items EBITDA (excl.non-cash items)

Changes inworking capital(excl. income

tax)

Income tax paid Cash flows fromoperatingactivities

Net interest paid(incl. realised

gain on swaps &covenants reset

costs)

Capex CF frominvestingactivities

(excl.capex andinterest

received)

Collateral underswaps

Free cash flow

29

Net debt


US$ million

30 June 2012 31 December 2011

Net debt calculation

Add:

Long-term loans, net of current portion 6,271 6,593Short-term loans and current portion of long-term loans 1,531 613Finance lease liabilities, including current portion 31 39Less:

Short-term bank deposit 0 (2)Cash and cash equivalents (1,763) (801)Net debt 6,070 6,442

30

Disclaimer


This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of EVRAZ plc (“EVRAZ”) or any of its subsidiaries in any jurisdiction (including, without limitation, EVRAZ Group S.A.) (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 EVRAZand 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.

London +44 207 832 8990Moscow +7 495 232 1370 [email protected]

Documents

Db access ceemea conference, london