EVRAZ GROUPEVRAZ GROUPEVRAZ GROUPEVRAZ GROUP

Corporate PresentationCorporate PresentationCorporate PresentationCorporate Presentation

January 2010January 2010January 2010January 2010

Deutsche BankDeutsche BankDeutsche BankDeutsche Bank OneOneOneOne----onononon----One Conference, LondonOne Conference, LondonOne Conference, LondonOne Conference, London

2Evraz Group in BriefEvraz Group in BriefEvraz Group in BriefEvraz Group in Brief

◦ World-class steel and mining company, one of the 15 largest steel companies in the world in 2008

◦ Leader in the Russian and CIS construction and railway products markets

◦ A lead player in the European and North American plate and large diameter pipe markets

◦ One of the world’s lowest cost steel producers due to production efficiency and high level of vertical integration

◦ One of the leading producers in the global vanadium market

◦ In 2009, Evraz produced 15.3 million tonnes of crude steel, 11.3 million tonnes of pig iron and 14.3 million tonnes of rolled products

◦ 2008 consolidated revenue amounted to $20.4 billion

◦ 2008 EBITDA reached $6.3 billion

3EvrazEvrazEvrazEvraz’’’’s Global Businesss Global Businesss Global Businesss Global Business

4

Source: Management accountsSource: Management accountsSource: Management accountsSource: Management accounts

* Adjusted EBITDA represents profit from operations plus depreciation and amortisation, impairment of assets and loss (gain) on disposal of PP&E, forex

gains/(losses).

** As of the end of the period

*** Segment sales volumes to third parties

9M09 Financial Summary9M09 Financial Summary9M09 Financial Summary9M09 Financial Summary

Revenue 7,1187,1187,1187,118 17,100 (58)(58)(58)(58)%%%%

5,951 (85)(85)(85)(85)%%%%Adjusted EBITDA* 874874874874

Adjusted EBITDA margin 12%12%12%12% 35%

9M 20099M 20099M 20099M 2009 9M 20089M 20089M 20089M 2008US$ mln unless otherwise stated ChangeChangeChangeChange

(24)(24)(24)(24)%%%%7,2567,2567,2567,256 9,565

13.7Steel Sales*** (million tonnes) 10.710.710.710.7 (22)(22)(22)(22)%%%%

Net Debt**

59M09 Financial Highlights9M09 Financial Highlights9M09 Financial Highlights9M09 Financial Highlights

◦ Group revenue decreased by 58% vs. 9M08 to

US$7.2bn driven largely by decrease in average prices

and sales volumes of steel products

◦ Geographical diversification of the business helped to

stabilise operations in crisis environment

◦ International assets bottomed out in 2Q with

subsequent gradual recovery

◦ Recovery of export demand for semi-finished steel

helped to fully utilise Russian assets as from 1 July

2009

9M09 Steel Segment Revenue by Product9M09 Steel Segment Revenue by Product9M09 Steel Segment Revenue by Product9M09 Steel Segment Revenue by ProductUS$ mln‘000 tonnes

3,1081,482

4,415

1,544

1,737

820

2,628

1,082

8221,040

158

528

0

2,500

5,000

7,500

10,000

12,500

15,000

9M08 9M09Semi-finished Construction RailwayFlat-rolled Tubular Other steel

13,49813,49813,49813,498

5,8665,8665,8665,866

9M09 Steel Segment Sales Volumes by Product9M09 Steel Segment Sales Volumes by Product9M09 Steel Segment Sales Volumes by Product9M09 Steel Segment Sales Volumes by Product

4,163 4,112

4,439 3,110

1,830

1,166

2,146

1,495528

579

296

516

0

2,500

5,000

7,500

10,000

12,500

15,000

9M08 9M09

Semi-finished Construction Railway Flat-rolled Tubular Other steel

13,67313,67313,67313,673

10,70710,70710,70710,707

Consolidated Revenue and EBITDAConsolidated Revenue and EBITDAConsolidated Revenue and EBITDAConsolidated Revenue and EBITDA

6,533

3,2802,413 2,226 2,479

372 305 163 406

2,251

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

3Q08 4Q08 1Q09 2Q09 3Q09

Revenue EBITDA

US$ mln

Source: Management accounts

6Execution of Management Action PlanExecution of Management Action PlanExecution of Management Action PlanExecution of Management Action Plan

◦ Production Production Production Production optimisationoptimisationoptimisationoptimisation

◦ Shutdown of inefficient capacity

◦ Shift of production to semi-finished products, where demand is relatively high

◦ Take advantage of flexibility between billet and slab production depending on market situation

◦ Full utilisation of available capacity in Russia (13.2 mtpa of crude steel) achieved from 1 July 2009

◦ Cost saving measuresCost saving measuresCost saving measuresCost saving measures

◦ Cash cost of one tonne of semi-finished steel products in Russia decreased by 35%

◦ Labour costs decreased by 32% compared to 1H08

◦ Services and auxiliary materials costs decreased by 42% compared to 1H08

◦ Capex savingsCapex savingsCapex savingsCapex savings

◦ Capex in 9M09 was US$321 million (64% down vs. 9M08) out of US$500m FY2009 guidance

◦ Exit from Cape Lambert Project in Australia

◦ Financial managementFinancial managementFinancial managementFinancial management

◦ Total debt decreased to US$8.2 billion, net debt decreased to US$7.4 billion as of 31 December 2009

◦ US$965m raised from concurrent GDR and five-year convertible bond offerings in July 2009

◦ RUB20 billion (approx. US$688m) raised from five-year bond offering in October 2009

◦ One-year extension of US$1.8 billion VEB loan due in 4Q09 approved

48%

68% 5%

4%8%

9%12%

4%7%

8%

18%

9%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1H08 1H09

Raw materials Transportation Staff costs Depreciation Energy Other

7Maintaining Cost LeadershipMaintaining Cost LeadershipMaintaining Cost LeadershipMaintaining Cost Leadership

◦ Constant review of product and resources flows for

potential efficiency gains

◦ Mining segment cash costs have reduced significantly:

◦ Approximately 75% of consolidated cost is rouble

denominated

◦ Russian-based assets have benefited from

declines in utilities and staff costs

◦ Low proportion of fixed costs in the US operations with

key raw materials being scrap and our own slab

Cost of Revenue, Steel SegmentCost of Revenue, Steel SegmentCost of Revenue, Steel SegmentCost of Revenue, Steel Segment Cash Cost, Coal Products and Cash Cost, Coal Products and Cash Cost, Coal Products and Cash Cost, Coal Products and

100% Fe Iron Ore Products100% Fe Iron Ore Products100% Fe Iron Ore Products100% Fe Iron Ore Products

Cash Cost*, Slabs & BilletsCash Cost*, Slabs & BilletsCash Cost*, Slabs & BilletsCash Cost*, Slabs & BilletsUS$/t

US$/t

Source: Management accounts

* Average for Russian steel mills, excl. SG&A and amortisation

US$ mln

6,1726,1726,1726,172

3,9533,9533,9533,953

50

107

30

73

0

30

60

90

120

Coal products Iron ore products, 100% Fe

1H08 1H09

345375

221248

0

100

200

300

400

Slab, Russia Billet, Russia

1H08 1H09

%% is given to total Steel Segment Cost of Revenue

8

◦ Total debt of approx. US$8.2 billion, net debt of US$7.4 billion as of 31 December

2009

◦ Short-term debt is approx. US$1.9 billion

◦ Cash and cash equivalents amounted to approximately US$746 million as of 31

December 2009

Debt Maturities and Liquidity ProfileDebt Maturities and Liquidity ProfileDebt Maturities and Liquidity ProfileDebt Maturities and Liquidity Profile

Debt Maturities ScheduleDebt Maturities ScheduleDebt Maturities ScheduleDebt Maturities ScheduleDebt Maturities ScheduleDebt Maturities ScheduleDebt Maturities ScheduleDebt Maturities Schedule

US$ mln

Breakdown of ShortBreakdown of ShortBreakdown of ShortBreakdown of Short----term Debtterm Debtterm Debtterm DebtBreakdown of ShortBreakdown of ShortBreakdown of ShortBreakdown of Short----term Debtterm Debtterm Debtterm Debt

US$ mln

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1Q 2Q 3Q 4Q

805

648

417

$3.2bn syndicated loan Revolving debt Term loans

Source: Management accounts

1,8701,8701,8701,870 1,8831,8831,8831,883

595595595595

17171717 15151515

509509509509661661661661675675675675

1,2401,2401,2401,240

704704704704

9

◦ One-year extension of VEB US$1.8 billion loan facility initially due in 4Q09 approved

◦ RUB20 billion (approx. US$688 million) five-year bond issued in October

◦ Evraz signed US$950 million three-year credit facility with Gazprombank in October

(currently not utilised)

◦ VTB RUB10 billion (approx. US$344 million) loan was repaid in November 2009

◦ US$225 million 4-year ABL facility signed for Evraz Inc. NA in December 2009

◦ The remaining current maturities are expected to be covered by free cash flows and

refinancing of current debts

◦ Evraz successfully amended certain covenants on bonds and bank debt, allowing flexibility

to implement current strategy

Recent Capital Market DevelopmentsRecent Capital Market DevelopmentsRecent Capital Market DevelopmentsRecent Capital Market Developments

10Market Improvement in 2009Market Improvement in 2009Market Improvement in 2009Market Improvement in 2009

◦ Recovery in prices for semi-finished products is driven by demand from Asia, the Middle East and North Africa

◦ Steelmaking capacity utilisation at the beginning of 2010 :

◦ Russia – 100%

◦ Ukraine – 100%

◦ North America – 87%

◦ South Africa – 90%

◦ Russian mining assets are running at 100% capacity in coal and 87% in iron ore

◦ Crude steel output in 2H09 grew by 25% and rolled product output grew by 15% compared to 1H09 due to the restart of blast furnace in Russia and gradual recovery in some steel markets

◦ Prices for semi-finished products in 2H09 were higher than 1H09

Steel Prices in 2009Steel Prices in 2009Steel Prices in 2009Steel Prices in 2009

US$/t

200

250

300

350

400

450

500

550

600

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

Slabs, FOB Far EastBillets, FOB Far EastRebars, RF market

Source: Metal Courier

114Q09 and FY09 Operational Results4Q09 and FY09 Operational Results4Q09 and FY09 Operational Results4Q09 and FY09 Operational Results

Production of Rolled Products by QuarterProduction of Rolled Products by QuarterProduction of Rolled Products by QuarterProduction of Rolled Products by Quarter

◦ In 4Q09, consolidated crude steel output was flat at

4.3 mt vs. 3Q09 with a 7% increase in North America

and a 6% increase in South Africa

◦ Consolidated rolled product production was

marginally unchanged q-o-q and decreased 11% y-

o-y

◦ Compared to 3Q09, 4Q09 production of railway

products increased by 15%, of tubular goods – by

19%, of flat-rolled goods – by 6% and declined by

approximately 4% for semi-finished and construction

products.

◦ Production of semis grew by 22% in 2009 vs.2008‘

‘000 tonnes

0

300

600

900

1,200

1,500

Semi-finished

products

Construction

products

Railway products Flat-rolled products Tubular products Other steel

products

1Q09 2Q09 3Q09 4Q09

0

1,000

2,000

3,000

4,000

5,000

6,000

Semi-

finished

Construction Railway Flat-rolled Tubular Other steel

2008 2009

‘000 tonnes

Production of Rolled Products, 2008Production of Rolled Products, 2008Production of Rolled Products, 2008Production of Rolled Products, 2008----2009200920092009

+22%+22%+22%+22% ----18%18%18%18%

----36%36%36%36% ----22%22%22%22%

----20%20%20%20% ----29% 29% 29% 29%

12Steel Production: RussiaSteel Production: RussiaSteel Production: RussiaSteel Production: Russia

◦ Low stock levels after winter holidays and expectations of export price growth

◦ The main growth driver for billet prices is increasing world scrap and iron ore prices. Finished products

started following the same trend as well

◦ Demand for semis is coming mainly from the Far East and Middle East

◦ Revival of seasonal demand should support higher finished steel prices in Russia

◦ Russian government infrastructure spending can become a major driver of demand for construction

steel and railway products in the Russian market in 2010

Production of Rolled ProductsProduction of Rolled ProductsProduction of Rolled ProductsProduction of Rolled Products‘000 tonnes

1,046 1,0841,497 1,455

843 798

936 868306 285

263 32179

7143

76

122

12772

125

1Q09 2Q09 3Q09 4Q09

Semi-finished Construction Railway Flat-rolled Other steel

2,3092,3092,3092,309 2,3642,3642,3642,364

2,8972,8972,8972,8972,8452,8452,8452,845

13Steel Production: North AmericaSteel Production: North AmericaSteel Production: North AmericaSteel Production: North America

Evraz Inc. Evraz Inc. Evraz Inc. Evraz Inc. NANANANA’’’’ssss Production of Rolled ProductsProduction of Rolled ProductsProduction of Rolled ProductsProduction of Rolled Products

◦ Relatively good performance at the beginning of 2009 with subsequent deterioration and gradual

improvement in line with market trends through the year

◦ Overall economic conditions in the steel market are better now than in 2009, but are still at less than

normal levels across all Evraz steel consuming markets

◦ Steel prices are likely to recover in 2010 on account of higher input costs

◦ Stability of demand for large diameter pipes in Canada due to long contracts (Keystone XL project)

◦ Evraz is expected to benefit from government infrastructure investments

69 65 108 92

112 121 79 71

160 115186 195

266

153117 139

1Q09 2Q09 3Q09 4Q09

Construction products Railway products Flat-rolled products Tubular products

606606606606

454454454454490490490490 498498498498

‘000 tonnes

14Steel Production: Europe and South AfricaSteel Production: Europe and South AfricaSteel Production: Europe and South AfricaSteel Production: Europe and South Africa

Production of Rolled Products, EuropeProduction of Rolled Products, EuropeProduction of Rolled Products, EuropeProduction of Rolled Products, Europe

‘000 tonnes

Production of Rolled Products, South AfricaProduction of Rolled Products, South AfricaProduction of Rolled Products, South AfricaProduction of Rolled Products, South Africa

‘000 tonnes

16

183 168

226246

17 33 33

47

64

1Q09 2Q09 3Q09 4Q09

Other steel products

Flat-rolled products

Construction products

64 59

1234

50 62

42

55

98107

3

2

2 5

6

1Q09 2Q09 3Q09 4Q09

Other steel products

Flat-rolled products

Construction products

Semi-finished products

202202202202192192192192

264264264264

121121121121

149149149149157157157157

284284284284

175175175175

10%

31%9%

6%

26%

20%

27%

16%

14%

9%

14%

18%

0

200

400

600

800

1000

1200

1400

1H08 1H09

Raw materials Transportation Staff costs Depreciation Energy Other

6,250

12,147

8,859

3,597

11,271

8,809

4,7954,915

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1H08 1H09 1H08 1H09

Coking coal Iron ore

Consumption Production

15Leveraging Recovery in Commodity PricesLeveraging Recovery in Commodity PricesLeveraging Recovery in Commodity PricesLeveraging Recovery in Commodity Prices

Iron Ore and Coking Coal Coverage*Iron Ore and Coking Coal Coverage*Iron Ore and Coking Coal Coverage*Iron Ore and Coking Coal Coverage*

* Self-coverage is calculated as a sum of coking coal production by Mine 12, Yuzhkuzbassugol production and pro rata to Evraz’s ownership production of Raspadskaya , in coal

concentrate equivalent, divided by Group’s total coking coal consumption excluding coal, used in production of coke for sale to third parties

◦ Full self-coverage in raw materials achieved,

allowing cash preservation

◦ Mining segment remained EBITDA positive

even at the bottom of raw material prices’

cycle

◦ Benefitting from growth of iron ore and coking

coal prices

Mining Segment PerformanceMining Segment PerformanceMining Segment PerformanceMining Segment Performance

Cost of revenue, Mining SegmentCost of revenue, Mining SegmentCost of revenue, Mining SegmentCost of revenue, Mining Segment

133%133%133%133%

US$ mln

2,012

652

94

837

0

500

1,000

1,500

2,000

2,500

1H08 1H09

Revenue EBITDA

99%99%99%99%

79%79%79%79%

93%93%93%93%

Source: Management accounts

‘000 tonnes US$ mln

1,1961,1961,1961,196

685685685685

%% is given to total Mining Segment Cost of Revenue

16SummarySummarySummarySummary

◦ Gradual improvement of economic environment compared to the first half of 2009

◦ Increased geographical diversification of business helped to stabilise the situation

◦ Strengthening global demand for semi-finished steel allows us to fully utilise Russian

steelmaking

◦ Prices for semi-finished steel products are improving on the back of higher input costs

◦ Vertical integration into iron ore and coking coal allows to leverage market recovery and

benefit from the growth of raw material prices

◦ Effective management of business in terms of cost savings and working capital release

◦ Decrease in debt level and amendment of debt covenants allow the management

sufficient flexibility to continue implementation of its strategy

AppendicesAppendicesAppendicesAppendices

18Revenue by MarketRevenue by MarketRevenue by MarketRevenue by Market

First Half of 2008First Half of 2008First Half of 2008First Half of 2008 First Half of 2009First Half of 2009First Half of 2009First Half of 2009

4%

12%

2%16%

14%

4%

1%2%

5%

40%

Russia Ukraine Other CIS Americas

Europe Middle East China Thailand

Other Asian Africa & RoW

3%7%

3%

5%

10%

9%

30%

3%

2%

28%

Russia Ukraine Other CIS Americas

Europe Middle East China Thailand

Other Asian Africa & RoW

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 Group S.A. (Evraz) or any of its subsidiaries in any jurisdiction 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 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 communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment

professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high

net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such

persons together being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this document or any

of its contents.

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 Evraz’s control that could cause the actual results, performance or achievements of Evraz 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 our 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 Evraz’s present and future business strategies and the

environment in which Evraz Group S.A. 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 Evraz 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 expectations with regard thereto or any change in events,

conditions or circumstances on which any such statements are based.

Neither Evraz, 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.

DisclaimerDisclaimerDisclaimerDisclaimer 19

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