NLMK Corporate PresentationVTB Capital Investment Forum "RUSSIA CALLING!"

Moscow

14-15 October 2015

DISCLAIMER

2

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

This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in the Company or Global Depositary Shares (GDSs), nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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

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

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

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

CONTENT

3

About NLMK 4

Strategy 2017 7

Q2 2015 Operating results 13

Financial Performance and Position 20

Market overview 26

Appendix 32

ABOUT NLMK

Blast furnace keeper at Novolipetsk (BF operations) For more visuals go to instagram.com/nlmk_group

95%

5%

Russia International

USA Moscow

Belgium

France

Italy

Denmark

RUSSIA

Well positioned and diversified value chain

GEOGRAPHY & PRODUCTION CAPACITY

5

Novolipetsk Coke: 2.6 m tpaSteel: 12.6 m tpaFlats: 5.9 m tpaSemis: 6.5 m tpa

Altai-KoksCoke: 4.7 m tpa

NLMK DansteelPlates: 0.55 m tpa

NLMK USA1 mini-mill & 2 rolling millsSteel: 0.8 m tpaFlats: 2.9 m tpa

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

NLMK Belgium Holdings (NBH)Strips: 1.7 m tpaPlates: 1.1 m tpa

Stoilensky (open pit)Iron ore fines: 15 m tpaSinter ore: 1.8 m tpaReserves: 5 bn t

NLMK Long ProductsSteel : 2.0 m tpaLongs: 1.9 m tpaMetalware: 0.5 m tpa

VIZ-StalGO steel flats: 0.2 m tpa

- Raw materials producing assets

- BF/BOF steelmaking

- EAF mini-mill

- Rolling assets

- Licenses to develop coal deposits

NLMK CRUDE STEEL CAPACITY

17 m t

71%

92%100%

NLMK Russia NLMK Europe NLMK USA

“DOMESTIC” SALES OF FINISHED STEEL PRODUCTION CAPACITY, M TPA

17.0

12.6

3.4

Crude steel Flat steel Long steel

Well positioned to further enhance its competitive position

KEY COMPETITIVE ADVANTAGES

• The largest steelmaker in Russia with 1st quartile costs and one of the highest profitability levels globally

• Balanced and diversified production chain

o All upstream assets and 95% of steelmaking capacity(80% BOF, 20% EAF) located in Russia

o Self-sufficiency in raw materials: iron ore 85%, coke 100%, scrap 85%, energy 60% (Lipetsk Site)

o 15 m tpa downstream facilities in Russia, EU and the US source slabs from Russian operations

• One of the most diversified steelmakers globally

o Up to 100% of finished rolled products produced in Russia, EU and the US are sold locally

o Diversified product portfolio (flat 85%, long 15%) with c. 30% of high value added

o Diversified customer base (from infrastructure to automotive and energy) in more than 70 countries

• 100% utilization, 25 p.p. above industry average

• Low risk growth opportunities across the existing production platform

o Scalable value chain: growth options in upstream, midstream and downstream

o Low capex due to organic/brownfield growth options

6

SLAB PRODUCTION COST (SEPTEMBER 2015)

DIVERSIFIED BUSINESS MODEL

43

57

Sales

InternationalRussia

80

20

Production route

BOFEAF

31

69

Product mix

Commercial gradeHVA

82

18

Product type

FlatLong

150

200

250

300

350

400

450

500

550

0 100 200 300 400 500 600 700 800

Cas

h c

ost

USD

/t

Cumulative capacities (M tonnes)

NLMK

Source: World Steel Dynamics

STRATEGY 2017: PROGRESS

Cooling tower at Novolipetsk (BF operations) For more visuals go to instagram.com/nlmk_group

Delivering superior shareholder value

FOUR PILLARS OF STRATEGY 2017

8

o Increase market share in Russia/CIS

o Improve utilization rates at the US and European facilities

o Scale up efficient iron ore mining platform

o Reduce consumption of expensive resources

o Minimize environmental footprint

o Promote safe operating practices

o Develop motivated and engaged workforce

Leading positions in strategic markets

World-class resource base

Leadership in sustainability & safety

o Achieve best-in-class operational efficiency standards across production chain

Leadership in operational efficiency

1

2

3

4

Group-wide efficiency gains structurally deflate costs / improve productivity

LEADERSHIP IN OPERATIONAL EFFICIENCY

• Continued growth of efficiency projects portfolioo Over 300 new efficiency projects initiated in H1’15

• H1’15 savings totaled $102m - 100% of the total 2015 target

• Steel segment1

o Productivity improvements led to +160 k tpa of slabs and +80 k tpa of hot-rolled coil output

o Lower resource utilization:◦ -18 kg/t of coking coal consumption

◦ -4 kg/t of iron ore, -4 kg/t of metallics in charge

• Long products segment1

o Optimized EAFs operations led to lower consumption of energy and materials

• Mining segment1

o +300 k t of iron ore concentrate production

• International operations1

o Significant productivity and quality gains (c.1% to 98.9% of prime products) in EU Strip division

o Yield improvement (-23% yields drop)

o Headcount optimization

9

GROWING NUMBER OF EFFICIENCY PROJECTS

H1’15 OPERATIONAL EFFICIENCY GAINS

29 128 182 236

339

898 1,011

1,310

1,460

1,613

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Steel segment74%

Long products segment10%

Mining segment5%

Foreign rolled segment5%

NBH6%

1 6 months 2015 numbers, yoy change

1

Cost savings to exceed $200m

WORLD CLASS RESOURCE BASE

• New pelletizing planto Project status at the end of June 2015:

◦ Engineering and equipment supply: >80%

◦ Building and installation works: 40%

◦ Invested as at 30 June 2015: $430 m

o Commissioning: 2H’16

• Stoilensky mine developmento Iron ore production hit record level in H1’15 with output

up by 11% since 2012

o +1.8 m tpa of extra iron ore concentrate capacity in 2016-17 as a low capex option (c. $120 m)

• After the launch of pelletizing plant, 95% self-sufficiency in iron ore and pellets will be achieved

10

IRON ORE CAPACITY GROWTH

IRON ORE COST CURVE

IRON ORE OUTPUT GROWTH

13.9

17.2

1.00.4

1.8

Output '13 Done In Progress 2017 Capacity '17Е

M tonnes

13.9 14.9

1.51.6

15.416.5

-

2.0

4.0

6.0

8.0

10. 0

12. 0

14. 0

16. 0

2013 2014

Iron ore concentrate Sinter ore

7.4 7.7

0.8 0.9

8.1 8.6

-

2.0

4.0

6.0

8.0

10. 0

12. 0

14. 0

16. 0

H1'14 H1'15

0

20

40

60

80

100

120

140

160

0% 25% 50% 75% 100%

Cumulative capacity: 1.4 bn t

Stoilensky mine: $10/t EXW + $4/ttransport cost to NLMK steelmaking

95

% s

elf-

suff

icie

ncy

M tonnes

Source: Bloomberg Intelligence

2

100% run rates supported by flexible sales

LEADERSHIP IN STRATEGIC MARKETS

• +3% sales growth supported by flexible sales structure

• Captured price premium in the Russian marketo Q2’15 Russian sales share up 2 p.p. qoq to 38%

◦ Flat steel, including HVA* products: +4% qoq

◦ Long products driven by NLMK Kaluga: +33% qoq

• Growth in slab sales to captive foreign assets

o 11% yoy growth in captive sales

• Sales growth at international operationso Supported by stable demand in developed markets

o NLMK USA HVA products sales increased by 3% qoq

11

SLAB SALES STRUCTURE

EXPORT SHARE VS. RUN RATES

POSITIVE TREND IN SALES

70% 69%

63%

73%68% 67% 68%

61% 60%55% 53%

59%64% 62%

40%

50%

60%

70%

80%

90%

100 %

40%

50%

60%

70%

80%

90%

100%

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Export share, % Utilization rate (NLMK steelmaking)

2.6 2.84.1

3.9 3.6

2.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2012 2013 2014

Subsidiaries/associates 3-rd parties

1.8 2.0

1.4 1.4

-0.5

0.5

1.5

2.5

3.5

4.5

5.5

6.5

H1'14 H1'15

M tonnes

6.5 6.4 6.5

3.2 3.4

1.41 1.53

2.55 2.47

-

0.5 0

1.0 0

1.5 0

2.0 0

2.5 0

3.0 0

3.5 0

4.0 0

4.5 0

Q1'15 Q2'15

Russian Export

0.430.48

0.3 0

0.3 5

0.4 0

0.4 5

0.5 0

0.5 5

0.6 0

0.6 5

0.7 0

0.7 5

Q1'15 Q2'15

0.62

0.70

0.3 0

0.4 0

0.5 0

0.6 0

0.7 0

0.8 0

0.9 0

Q1'15 Q2'15

M tonnes

NLMK USANLMK EuropeTotal sales

3.96 4.00

3

Sustainability and safety remain a priority

LEADERSHIP IN SUSTAINABILITY AND SAFETY

• Relentless focus on safe operating practiceso Russian operations LTIFR* down by 9% yoy – below global

best practice level

o Proactive management of risks to life and health of employees and contractors

o Continued focus on accident and fatality prevention

o Improvement of employees’ H&S awareness, competence and motivation at all Group facilities

• Further reduction of environmental footprinto Air emissions at the main integrated plant reduced by

4.4% while output increased

o Key environmental projects on track: ◦ Air: gas-treatment facilities upgrade at Lipetsk and Long steel

plants

◦ Water: biochemical water treatment facility

◦ Waste: BF slag handling facility at Lipetsk

12

LTIFR*, RUSSIAN ASSETS

AIR EMISSIONS (LIPETSK SITE)Kg/t of steel

34.0529.90

22.30 22.03 21.05 18.90

2007 2010 2013 2014 H1'15 Bestavailable

technology

0.88 0.83

0.55 0.500.60 0.60

2012 2013 2014 H1'15 Target2017

Best practice(global)

* LTIFR – Lost Time Injury Frequency Rate (per 1 mln man-hours worked). Russian assets include Russian Flat Products, Russian Long Products, Russian Mining

4

Q2 2015 OPERATING HIGHLIGHTS

High value added products at the warehouse For more visuals go to instagram.com/nlmk_group

Sustainably high utilization rates

OUTPUT

• Q2’15 steel output increased to 4.0 mt (+7% yoy)o The key driver is the Lipetsk site + 12% yoy (to 3.23 mt)

o Maintaining high utilization rates

o Major repairs were performed in Q1’15 (Russia & USA)

• Q2’15 Finished products output was up to 4.0 mt(+9% yoy) driven by semis production

• Group utilization rates are close to maximum levels and well above global average

14

NLMK GROUP STEEL OUTPUT

NLMK GROUP FINISHED PRODUCTS OUTPUT

RUN RATES BY SEGMENTM tonnes

3.0 3.1 3.1 3.2 3.1 2.9 3.2 3.4 3.1 3.2

0.6 0.7 0.8 0.9 0.8 0.91.0 0.7

0.8 0.8

3.63.8 3.9

4.13.9 3.8

4.2 4.13.9 4.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

BOF EAF

1.8 1.9 1.9 1.8 1.9 2.1 2.0 1.9 2.0 2.0

0.4 0.5 0.5 0.6 0.50.6 0.7

0.5 0.6 0.5

1.2 1.0 0.7

1.61.1

1.0 1.2 1.6 1.3 1.5

3.4 3.43.1

4.0

3.53.7

3.9 4.0 3.9 4.0

33% 33% 37%29% 33% 34% 31% 29% 30% 28%

0%

20%

40%

60%

80%

100 %

120 %

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Semis Long Flat HVA share

M tonnes

81% 80%

98%94%

50%

90%

100%

94%

65%

90%

100%94%

40%

60%

80%

100 %

Foreign segment Long products Steel segment NLMK Group

Q2'14 Q1'15 Q2'15 Global average utilization rate

71%

75% 72%

Stable and diversified sales volumes help to maintain high profitability

SALES

• Q2’15 sales increased to 4.0 mt (+4% yoy) driven by slab shipments

• Flexible business model allows too swiftly switch between semis/finished products

o capture Russian market price premiums

• Large client base in more than 70 countries keeps sales at a high level

15

NLMK GROUP SALES BY SEGMENTS*

SLAB SALES TO GROUP* AND 3RD PARTIES

NBH SALESM tonnes

M tonnes

2.4 2.4 2.2 2.4 2.7 2.5 2.4 2.6 2.9 2.7

0.4 0.5 0.60.6

0.70.7 0.6

0.60.6 0.7

1.0 0.9 0.9 0.5

0.60.6

0.60.6

0.5 0.6

3.8 3.8 3.73.5

4.03.8

3.63.8

4.0 4.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Foreign Rolled Products Long Products Steel

* NBH is consolidated to Foreign Rolled Products segment up until 30 September 2013 ** Data presented for the H1’2015

M tonnes

0.5 0.60.9

0.30.5 0.4

0.70.5 0.4 0.4

0.4

0.50.4

0.5

0.50.5

0.70.2

0.2

0.1

0.1

0.2

0.2

0.2

0.20.2

0.21.0 0.70.6

0.7

0.6

0.4

0.2 0.5 0.7 0.3

1.7

1.51.6

1.5

1.8

1.4

1.61.7

1.8

1.6

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Export LDP producers Associates Subsidiaries

0.13 0.13 0.150.20 0.17 0.15 0.16 0.20 0.22

0.270.09 0.11 0.08

0.090.09

0.08 0.070.07

0.08

0.100.14

0.15 0.180.16

0.170.17 0.16

0.17 0.15

0.160.400.43 0.44

0.49 0.470.44 0.43

0.47 0.48

0.56

0.0 0

0.1 0

0.2 0

0.3 0

0.4 0

0.5 0

0.6 0

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Semis CRC Plates Pre-painted HRC

Diversified sales geography

SALES MIX: BY PRODUCT AND GEOGRAPHY

• NLMK has a wide diversification of sales…

• … by regionso Six main region: Russia, Europe, North and South

Americas, Middle East (incl. Turkey) and Asia

o Share of the Russian market (key and domestic market) is in the range of 25-45% of total sales

o Share of other regions does not exceed 25%

• … by type of productso 28% of sales - HVA products + NBH rerolling products

o Lack of prevailing type of products

16

SALES BY PRODUCTS, Q2’15

SALES BY REGIONS (VOLUMES, Q2’15)

SALES STRUCTURE BY REGION

28%

17%

19%

36%

HVA products Semis, excl. NBH

Semis to NBH HRC and longs

43%

20%

12%

11%

8%6%

Metalware

Pre-painted

Plates

GO & NGO steel

HDG

CRC

4.01 mt

38%

29%

16%

10%

1%

6%Russia

Europe

North America

Middle East and Turkey

Asia

ROW

4.01 mt

42%

2%

18%

41%57%

2%

20%

26%

22%

3%

6%

3%

3%

9%14%

88%

5% 15%5%

6% 4% 2% 6%

NLMK(revenue)

ArcelorMittal(volumes)

ThyssenKrupp(revenue)

Posco(revenue)

RoW

S. America

SE Asia

M. East

N.America

Europe

Russia

36%

47%

17%

0%

20%

40%

60%

80%

100%

Sales by producttype in Q2'15

Semi-finished

Flat steel

Long products andmetalware

Exposure to diverse and niche customer base

SALES IN RUSSIA

• NLMK has leading positions in value added product with demand outpacing supply

• Exposure to niche products: o (LDP feedstock) – long term contract till 2019

o Monopolist at electrical steel market (high value added product with the highest margin)

• Diversification to flat / long products

• Flexibility to relocate shipments from domestic to export markets and vice versa

17

SALES BY SECTOR AND PRODUCT

NLMK SHARE IN THE RUSSIAN STEEL MARKET

SHARE OF RUSSIAN MARKET IN TOTAL SALES

18

%

24

%

17

%

21

%

20

%

10

0%

14

%

34

%

21

%

31

%

21

%

10

0%

9%

18%22%

33%

12%

0%-20%

-10%

0%

10%

20%

30%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

HRC CRC Glavanizedsteel

Pre-painted Rebar Electrical

Share in consumption Share in production Import share in ASU

30% 31%

37%

27%32% 33% 32%

39% 40%

45%47%

41%

36%38%

0%

10%

20%

30%

40%

50%

60%

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

by sector by product

73%

9%

18%

0%

20%

40%

60%

80%

100%

Sales by industriesin Q2'15

Pipe producers

Machine building

Construction andinfrastructure

Strong position in high growth segments

SALES IN EUROPE

• 71% of sales on EU market – products manufactured in Europe (DanSteel & NBH)

• 94% of all manufactured steel sold locally

• Highly diversified product mix with 60% of HVA

• Diverse industry exposure o Machinery, automotive, wind-mills

o Key clients: Daimler-Crysler, Volvo, Fiat, PSA, Renault, VW, Caterpillar, Dong Energy

o DanSteel controls 1/3 of plates supply to German shipbuilders, with sales booked up to 2018

• Growth in sales (20% qoq) and high run rates (85%) due to growth in value added products

18

NLMK EU: SALES BY INDUSTRY, Q2’15

NLMK EU: SALES BY PRODUCT, Q2’15

NLMK EU: SALES BY COUNTRY, Q2’15

* incl. SSC & Merchants

2% 8%

14%

13%

8%7%

14%

3%

8%

23%

Boiler & pressure vessel

Wind turbines

Shipyards

Construction

Structural

Stockholder / oxycutter

Automative

Tubes

Rerollers

Other industries*

35%

32%

18%

7%

4%2%

2%

HRC

Plates

CRC

HDG

GO & NGO Steel

Ingots

Pre-painted

25%

13%

11%7%6%

6%

28%

4% Germany

France

Italy

Belgium

Netherlands

UK

Rest EU

RoW

0.9 m t

0.9 m t 0.9 m t

48%

21%

10%

3%

11%

2%

1%

4%Service centers

Tubing

Converter

Construction

Automotive

Electrical equipment

Agricultural

Other industries

Strong positions in the local U.S. market

SALES IN THE USA

• 100% of locally produced products sold locally

• 78% of USA sales produced by NLMK USA division

• ~80% of product mix – finished steel, incl. 35% - HVA products

• Well-diversified product mix of NLMK USA by industry

19

SALES ON US MARKET BY SOURCE, Q2’15

NLMK USA: SALES BY PRODUCT, Q2’15

NLMK USA: SALES BY INDUSTRY, Q2’15

78%

21%

1%

NLMK USA

NLMK Russia

NLMK EU divisions (incl. NBH)

43%

22%

20%

14%

1%

HRC

Semis

CRC

HDG

Plates

GO & NGO Steel

0.6 m t

0.6 m t 0.6 m t

FINANCIAL PERFORMANCE AND POSITION

Cold rolled coil stock at Novolipetsk For more visuals go to instagram.com/nlmk_group

Superior profitability retained

FINANCIAL HIGHLIGHTS

21

FINANCIAL PERFORMANCE

DEBT POSITION

0%

5%

10%

15%

20%

25%

30%

0

500

1,000

1,500

2,000

2,500

3,000

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Revenue EBITDA EBITDA margin

M USD

M USD

0.0

0.5

1.0

1.5

2.0

2.5

0

1,000

2,000

3,000

4,000

5,000

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Total Debt Cash & CE Net Debt/EBITDA

• H1’15 HIGHLIGHTS

o Revenue: $4,356 m (-20% yoy)

o EBITDA: $1,115 m (+5% yoy)

o EBITDA margin: 26% (+6% p.p. yoy)

o EBITDA per tonne: $140/t (+1% yoy)

o Net income: $491 m (+48% yoy)

• Q2’15 HIGHLIGHTS

o Revenue: $2,140 m (-3% qoq)

o EBITDA: $476 m (-25% qoq)

o EBITDA margin: 22% (-7 p.p qoq)

o EBITDA per tonne: $119/t (-26% qoq)

o Net income: $170 m (-47% qoq)

o Capex: $178 m (+54% qoq)

o Free cash flow*: $218 m (-32% qoq)

• FINANCIAL POSITION AS OF 30/06/2015

o Net Debt: $1,133 m (-9% qoq; -46% yoy)

o Net Debt/EBITDA: 0.47x (0.49x as of 31/03/15)

* Free cash flow = operational cash flow minus capex minus net interest payments

Structurally low capex

CAPEX

• Strategy 2017 development capex scaled downo -$0.6 bn: iron ore capex reduction

o +$0.1 bn: new projects (IRR>35%) offset by ruble devaluation effect on capex

o $0.8 bn to invested in 2015-2018

• Mid-term total average annual capex of $0.55 bn (down from $0.9 bn) o $0.2 bn pa. – Strategy 2017 projects capex

o $0.25 bn pa. – structural maintenance and environmental capex

o $0.1 bn pa. – one-off BF and BOF capital repairs program of 2015-2018

• Capex 2015E of $600 mo $0.25 bn – active phase of pelletizing project

o 2014 capex carryovers

22

STRATEGY 2017 TOTAL INVESTMENTS

ANNUAL CAPEX HISTORY AND PROJECTIONS

770

1 600

1 000

200

800

Strategy 2017(Feb.'14)

Total capex2014-18

Capex 2014 Total capex2015-18

Initial targetfor 2014-18

Revised targetfor 2014-18

M USD

1.94

1.11

1.46

2.02

1.45

0.76

0.56 0.55

0.0

0.5

1.0

1.5

2.0

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

-2

01

8

Bln USD

0.25

0.2

0.1

Maintenance capex

Strategy 2017

BF and converter repairs

0.55

∆ $600 m

1.25

0.43 0.180.04

0.09

1.13

0.0

0.5

1.0

1.5

Net Debt(31 Mar '15)

Net operatingcash flow

Capex Dividends FX rate andother factors

Net Debt(30 Jun '15)

1.93

2.15

1.87

1.80

1.39

1.14

0.830.67

0.49

0.47

0.0

0.5

1.0

1.5

2.0

2.5

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

3.33.4

3.6

3.33.2

3.02.9

3.1

3.02.9

2.4

2.8

3.2

3.6

4.0

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Net debt/EBITDA is below Strategy 2017 target level of 1.0

DEBT POSITION

• Debt reduction and liquidity growtho Net Debt: $1.13 bn (-9% qoq, -46% yoy)

o Total debt: $2.52 bn (-2% qoq, -34% yoy)

o Cash and equivalents*: $1.38 bn (+5% qoq, -20% yoy)

• Net debt / 12M EBITDA: 0.47x

• Recent events (July, 2015)o NLMK guarantees for NBH reduced by $144 m to $366 m

following NBH debt restructuring

o Placement of 10Y RUB 5 bn ($87 m) bonds, 11.5% coupon rate with 1 year put option

23

DEBT MATURITY AND LEVERAGE

CHANGE IN DEBT IN Q2’15

NET DEBT CHANGE IN Q2’15

Weighted average maturity

Net debt/EBITDA

1.89 1.94

0.67 0.09 0.05 0.58

0

1

2

3

31 Mar'15 Net borrowings FX rate changeimpact

30 Jun'15

ST debt LT debt

2.56 2.52

Bln USD

Bln USD

* Cash and cash equivalents and short term investments

31 27 22

33 32 33 32 28 22 18

33

35 35

22 21 17 16

10

7 10

20%

16% 15%13%

11%8% 7% 6%

5%6%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

10

20

30

40

50

60

70

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

Capitalized interest expense Non-capitalized interest expenseInterest expense to EBITDA

491

296 274

818

599

0

200

400

600

800

1,0 00

2015 2016 2017 2018 2019 and on

RUB bonds ECA lines Eurobonds (USD)

Revolving lines Other debt

Robust liquidity and comfortable maturity

LIQUIDITY AND DEBT MATURITY PROFILE

• Comfortable maturity profile o Short term debt $0.55 bln incl. revolving credit lines for

working capital financing, ruble bonds, ECA financing

o Long term debt $1.94 bln, incl. Eurobonds, ruble bonds, long term part of ECA financing

• Strong liquidity position of $1.38 bln

• Low interest expense due to investment grade

24

INTEREST EXPENSE**

DEBT MATURITY PROFILE*

LIQUIDITY AND 12M DEBT REPAYMENTS*

1,384

549

1,547

220

27146 12

0

1,0 00

2,0 00

3,0 00

Liquid assets Q3'15 Q4'15 Q1'16 Q2'16 12 months

M USD

M USD

M USD

** Quarterly numbers are derived by computational method on the basis of quarterly reports * Short-term maturity payments without interest accrued

Superior Free Cash Flow generation to support above 50% dividends payments

FREE CASH FLOW AND CAPITAL DEPLOYMENT

• Structural increase in free cash flow driven byo Improved profitability

o Less capital intensive growth

• Debt at minimal levels

• Dividend policy o Quarterly dividend payments

o If Net debt/EBITDA < 1.0x dividend will be between 50% of FCF and 50% of Net income

o If Net debt/EBITDA > 1.0x dividend will be between 30% of FCF and 30% of Net income

25

FREE CASH FLOW

DIVIDEND YIELD

62125 386 660 683 738 471 46 379 376 116 115 304 179 86

18% 19% 22%

48%

33% 33%

21% 21%

30% 28%

20%

35% 36%

56%51%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0

200

400

600

800

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Q1

'15

Q2

'15

E*

Dividends % of Net income

M USD

5.5%

3.9%

2.2%

0.4%

1.9% 1.8%

1.0% 1.1%

3.9%

5.4%

0%

1%

2%

3%

4%

5%

6%

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

H1

'15

E**

** H1’15E dividend yield is calculated based on declared dividends for Q2’15 and dividends paid for Q1’15 and H2’14 * Q2’15E dividends were declared on 13 August 2015 in the amount of RUB5,574 M

DIVIDEND HISTORY

Bln USD

1.8 1.8

1.21.7

0.9

-2.0-1.5

-0.8 -0.6-0.3-0.2

0.4 0.4

1.20.5

-1%

3%4%

14% 14%

-12%

-10%

-7%

-5%

-2%

1%

3%

6%

8%

11%

13%

16%

-3

-2

-1

0

1

2

3

4

2011 2012 2013 2014 6M'15

Operational cash flow Capex Free cash flow FCF Yield

Free cash flow = operational cash flow minus capex minus net interest payments FCF yield = Free cash flow / market cap; 6m’15 FCF Yield is calculated on annualized FCF

MARKET OVERVIEW

The loading of plates at NLMK DanSteel For more visuals go to instagram.com/nlmk_group

Prices under pressure from commodities fall / steel overcapacity

GLOBAL STEEL MARKET

• Supplyo 8m’15 global steel output down 2.1% yoy to 1,075 mt

◦ Asia: mainly China, Japan and South Korea (-1.2% yoy; -7.7 mt)

◦ US (-8.5% yoy; -5.0 mt)

• Priceso In the US and EU HRC prices have been stable for the

last quarter with little correction starting Sep’15

o In EM prices (in USD term) are declining◦ Russian prices are under pressure from FX and drop in demand,

but in Sep’15 trend has changed

◦ Chinese prices falling due to excess supply

• Inventorieso De-stocking trend might continue up to Q4’15

27

STEEL INVENTORIES

GLOBAL CAPACITY UTILIZATION

HOT-ROLLED COIL PRICES (EXW) BY REGIONS

Source: World Steel Association (global), NLMK estimates (regions)

55%

60%

65%

70%

75%

80%

85%

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Global China North America EU (27)

200

300

400

500

600

700

800

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

US EU China Russia

USD/tonne (excl. VAT)

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Germany

China

US

Index, January 2014 = 1.0

Source: Metal BulletinSource: CRU, Bloomberg

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

1.40

350

400

450

500

550

600

650

700

750

800

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

HRC, EXW

Plates, EXW

EUR/USD1.5

2.0

2.5

3.0

3.5

4.0

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Single-digit growth due to pent up demand / improved fundamentals

EUROPEAN STEEL MARKET

• Supply / Demando 8m2015 steel output was flat yoy at 113.7 mt

o 2015 ASU to grow 1.8% supported by improved macro in EU

o Key drivers:◦ Easing of credit restrictions

◦ Weaker euro (-9.3% YTD) derails imports

• Priceso Relatively stable prices (both in USD and EUR) in Q2’15

declined by c. 4.5% qoq in Q3’15

• Inventorieso Inventories declined providing support to prices

28

GERMANY: STEEL INVENTORY

INDUSTRIAL SECTOR INDICATORS

NORTHERN EUROPE STEEL PRICES

Source: Eurostat

Source: Metal BulletinSource: CRU

Inventory/sales ratio, months

5-year average level

USD/tonne EUR/USD

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

48

49

50

51

52

53

54

55

Jan

.14

Feb

.14

Mar

.14

Ap

r.1

4

May

.14

Jun

.14

Jul.1

4

Au

g.1

4

Sep

.14

Oct

.14

No

v.1

4

Dec

.14

Jan

.15

Feb

.15

Mar

.15

Ap

r.1

5

May

.15

Jun

.15

Jul.1

5

Au

g.1

5

Eurozone Manufacturing PMI

EU-27 industrial confidence (RHS)

Stabilized demand to support prices and drive profits

US STEEL MARKET

• Supply / Demando Production is down in Jan-Aug’15 (-8.5% yoy to 54.0 mt)

due to intense competition

o ASU recovers driven by construction (+18.8% YTD) and auto (car sales +2.2% YTD) segments

• Priceso Q2’15 prices seasonally were stable

o In Aug’15 steel prices down due to scrap/raw materials decline

o Price/cost spreads expanded

• Inventorieso US traders may decide to start re-stocking earlier due to

import duties

29

STEEL INVENTORIES

CONSUMING SECTORS INDICATORS

US STEEL PRICES

Source: US Census Bureau, Ward’s Automotive Group

Source: Metal BulletinSource: Bloomberg

K units M units

Inventory/sales ratio, months USD/tonne

1.5

2.0

2.5

3.0

3.5

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

5-year average level

50

100

150

200

250

300

350

400

100

200

300

400

500

600

700

800

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

HRC US domestic prices, EXW

HRC Spread US vs China (RHS)

Spread US HRC vs scrap (RHS)

13.5

14

14.5

15

15.5

16

16.5

17

17.5

18

0

200

400

600

800

1,000

1,200

1,400

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

US construction starts SAAR

US auto sales SAAR (RHS)

10

12

14

16

18

20

22

24

26

28

200

250

300

350

400

450

500

550

600

650

700

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

HRC in USD Rebar in USD

HRC in RUB Rebar in RUB

Demand downturn offset by lower imports

RUSSIAN STEEL MARKET

• Supply / Demando 8m2015 supply is stable c. 47.8mt (flat yoy)

o Lower imports and industry consolidation to partially offset softer demand◦ LDPs consumption to grow +10-15% and long cycle in

construction to support ASU in 2015

◦ 8M’15 finished steel imports already down by 39% yoy to 2.7 mt

• Priceso Domestic prices in national currency corrected in Q2’15

due to ruble strengthening

o Uptick in steel prices in USD terms during Q2’15 & Q3’15 was triggered by ruble appreciation

30

FLAT AND LONG STEEL CONSUMPTION

STEEL PRICES (EXW) IN THE RUSSIAN MARKET

STEEL EXPORT PRICES

Source: Metal Bulletin, NLMK estimates. Prices excl. 18% VAT

Source: Metal Bulletin, World Steel DynamicsSource: Metal Expert

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Flats Longs Share of imports in consumption (RHS)

K tonnes

100

150

200

250

300

350

400

450

500

550

600

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

May

-14

Jun

-14

Jul-

14

Au

g-1

4

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Slab, FOB Black Sea

HRC, FOB Black Sea

NLMK slab production cash cost

USD/tonne

USD/tonne k’RUB/tonne

Ruble devaluation makes import less attractive

STEEL IMPORTS IN RUSSIA

• Imports structureo Flats / longs / pipes: 55% / 35% / 10%

o 40% from Ukraine and 20% from other CIS countries

• Imports declined in 2014 and 8M’15…o 2014 imports down by 22% yoy to 6.3 mt

o 2014 imports from Ukraine dropped by 34% yoy to 2.4 mt

o 8M’15 imports declined by 39% yoy to 2.7 mt

• …driven byo RUB weakening led to softer pricing environment

making imports less attractive

o New capacity added competing with imports

31

STEEL IMPORTS BY REGION

RUSSIAN STEEL MARKET BALANCE 2014

STEEL IMPORTS BY PRODUCT

Source: Metal Expert, NLMK estimates

Source: Metal Bulletin, World Steel DynamicsSource: Metal Expert, Federal Customs Service, Comtrade, NLMK estimates

M tonnes M tonnes

M tonnes

63

43

126

14

Production (finishedsteel equivalent)

Export Import Consumption

Semi-finished

Finished

3.6 3.62.4

1.7 1.7

1.5

0.9 0.9

0.8

0.7 0.8

0.7

1.3 1.0

0.9

2012 2013 2014

Ukraine CIS excl Ukraine Europe China Other regions

8.2

6.3

8.1

3.0 3.42.2 1.6

0.7

4.3 3.8

3.4

2.3

1.7

0.9 0.9

0.7

0.5

0.2

8.2 8.1

6.3

4.4

2.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2012 2013 2014 8m2014 8m2015

Pipes Flat Long

-39%

-22%

APPENDIX

Slab production at Novolipetsk For more visuals go to instagram.com/nlmk_group

NLMK holds one of the lowest slab cash cost positions globally

CASH COST OF SLAB

SLAB CASH COST STRUCTURE*

33

HISTORICAL SLAB CASH COST*

COST ITEMQ2 2015 (k’RUB/t)

Q2 2015 (USD/t)

Q1 2015 (USD/t)

QoQ(USD/t)

Coking coal 3.7 70 51 19

Iron ore 1.9 36 33 3

Scrap 1.2 24 20 4

Other materials 1.4 27 23 4

Electricity 0.6 11 10 1

Natural gas 0.7 13 12 1

Personnel 1.1 21 18 3

Other expenses 1.9 37 30 7

Total 12.5 238 197 41

PERIOD USD/t USD/RUB

FY’2012 388 31.07

Q1’2013 364 30.42

Q2’2013 348 31.66

Q3’2013 329 32.80

Q4’2013 349 32.54

FY’2013 348 31.91

Q1’2014 310 35.14

Q2’2014 308 35.02

Q3’2014 295 36.16

Q4’2014 225 47.55

FY’2014 283 38.60

Q1’2015 197 63.19

Q2’2015 238 52.77

*Consolidated cash cost of slab at Lipetsk site.

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NLMK

Investor Relations

Russia, 115054, Moscow 18, Bakhrushina str, bldg 1

t. +7 495 915 15 75

f. +7 495 915 79 04

tahiev_sa@nlmk.com

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