Efficient social investments in Russia: OAO Severstal experience 2 4.09 . 2010

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Efficient social investments in Russia:

OAO Severstal experience

24.09.2010

Presentation by: Maria MedvedevaHead of External Communications

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300 miles to the North from Moscow

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1993 -

Cherepovets

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17 Years Later - Global Operations

Dnepropetrovsk

Olenegorsk

Kostomuksha

Saint Petersburg

Vorkuta

Volgograd

Cherepovets

MoscowOrelDearborn Paris

Columbus Sparrows Point

Chita

Semey

Ulan Ude

Neryungri

Uаgadugu

Warren BresciaWheeling

Zwedru

Berezitovy

Friedens

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Overview 2009

• Over 90,000 employees across the globe.

• Public company listed on the London and Moscow Stock

Exchanges.

• Steel producer: ranking 1st among Russian companies, 2nd in

Italy, 4th in the US.

• Gold producer: ranking 2nd in Russia.

• Revenues of $13.05 bn. and EBITDA of $844 M.

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Corporate Social Responsibility

Priorities:

– Industrial Safety and Environmental Protection

– Development and Social Support of Personnel

– Contribution to Social and Economic Development in Regions of the Company’s Presence

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The number of orphans in Russia

740,000

3%

of the total child population

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"Road Home”: Start of the Project

prevention of Child Neglect and Social Orphanhood, finding homes for orphans

2006, Cherepovets

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2009

• 5,000+ calls to the Child hotline in Cherepovets

• Responded to over 800 threats to child safety

• Achieved 67% reduction in the number of children sent back to orphanages

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"Road Home”: Development in 2009

The Project grew into a long-term regional program

Vologda Regional Government

Foundation for the Support of Children in Difficult Life Situations

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Consolidated Budget of the Program in 2009

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The total number of the unemployed in Russia

6,2 MLN

8,2% of all employable population

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Cherepovets – “Mono-town”

Non-Commercial Partnership“Urban Development Agency”

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«Urban Development Agency»: Start of the Project

Support and development of small and medium businesses

1999, Cherepovets

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«Urban Development Agency»: Activity Directions

Educational programs

Free of charge training on the conduct of owning a business, workshops and exercises for entrepreneurs

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Information support

Advising entrepreneurs on legal, economic and other issues

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Property support

Provision of finished office space on preferred terms

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Support in the development of a business environment

Exhibitions, competitions, “roundtables”, business meetings, forums

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Financial support

Grants to new entrepreneurs for up to $9,500 and subsidies on loans taken out for business

development

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«Urban Development Agency»: Results of 2009

• 2,885 new jobs created.

• 661 businesses set up

• 1,170 first-time entrepreneurs trained.

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Thank you for your attention! I’ll be pleased to answer your questions

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Achieve more together

These materials are confidential and have been prepared by OAO Severstal (Severstal) solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose.These materials may contain projections and other forward-looking statements regarding future events or the future financial performance of Severstal. You can identify forward-looking statements by terms such as “expect,” “believe,” “estimate,” “intend,” “will,” “could,” “may” or “might”, or other similar expressions. Severstal cautions you that these statements are only predictions and that actual events or results may differ materially. Severstal will not update these statements to reflect events and circumstances occurring after the date hereof. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of Severstal may include, among others, general economic and competitive environment conditions in the markets in which Severstal operates, market change in the steel and mining industries, as well as many other risks affecting Severstal and its operations.These materials do not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities of Severstal in any jurisdiction, nor shall they or any part of them nor the fact of their presentation, communication or distribution form the basis of, or be relied on in connection with, any contract or investment decision.No representation or warranty, express or implied, is given by Severstal, its affiliates or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of these materials or their contents.

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Efficient social investments in Russia: OAO Severstal experience 2 4.09 . 2010