MANAGEMENT PRESENTATION DECEMBER, 2020

www.mechel.com Disclaimer

This presentation does not constitute or form part of and should This presentation may contain projections or other forward-looking not be construed as, an offer to sell or issue or the solicitation of statements regarding future events or the future financial an offer to buy or acquire securities of Mechel PAO (Mechel) or performance of Mechel, as defined in the safe harbor provisions of any of its subsidiaries in any jurisdiction or an inducement to enter the U.S. Private Securities Litigation Reform Act of 1995. We wish into investment activity. No part of this presentation, nor the fact of to caution you that these statements are only predictions and that its distribution, should form the basis of, or be relied on in actual events or results may differ materially. We do not intend to connection with, any contract or commitment or investment update these statements. We refer you to the documents Mechel decision whatsoever. Any purchase of securities should be made files from time to time with the U.S. Securities and Exchange solely on the basis of information Mechel files from time to time Commission, including our Form 20-F. These documents contain with the U.S. Securities and Exchange Commission. No and identify important factors, including those contained in the representation, warranty or undertaking, express or implied, is section captioned “Risk Factors” and “Cautionary Note Regarding made as to, and no reliance should be placed on, the fairness, Forward-Looking Statements” in our Form 20-F, that could cause accuracy, completeness or correctness of the information or the the actual results to differ materially from those contained in our opinions contained herein. None of the Mechel or any of its projections or forward-looking statements, including, among affiliates, advisors or representatives shall have any liability others, the achievement of anticipated levels of profitability, whatsoever (in negligence or otherwise) for any loss howsoever growth, cost and synergy of our recent acquisitions, the impact of arising from any use of this presentation or its contents or competitive pricing, the ability to obtain necessary regulatory otherwise arising in connection with the presentation. 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 ADRs, financial risk management and the impact of general business and global economic conditions. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

2 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Overview

• Leading vertically integrated & Metals company

• Comprises two major divisions – Mining and

• Main divisions are supported by Power division, Sales & Marketing units and Logistics facilities

• As of December 31, 2019 Company emloyed about 56.2 thousand people

Financial Highlights Operating Highlights, Sales

9M2020 Revenue 9M2020 EBITDA* Mining Segment Steel Segment Breakdown Breakdown (196.2 bln rubles) (31.4 bln rubles) 6.8

5.7 10% 5%

32% 2.9 27% 2.5 2.75 2.65 1.9 62% 63% 1.6 1.89 1.94

0.44 0.42

9M19 9M20 9М19 9М20

Met Steam Coal concentrate Steel Mining Pow er Steel (production) Long Products Hardware

Source: Company data * Here and further EBITDA is calculated as Adjusted EBITDA in accordance with definition in our earnings Press release Appendix A Source: Company data

3 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Capital Structure

Gazprombank (Joint Stock Company) 5.5% Corporate Governance The company adheres to the most rigorous standards of corporate governance. Apart from complying with shareholder law norms, Mechel assumes a series of additional obligations, holding to the highest international requirements, including NYSE corporate governance rules that apply to US-based companies within the NYSE 303A listing Ordinary Shares Igor Zyuzin Public (with standard. 416,270,745 – 75% Float family) 43.0% 51.5% In accordance with the Company’s charter members of the Board of Directors are elected by Shareholders’ General Meeting, to a total of 9 persons, the majority of whom are independent (independent directors). In order to execute its functions, the Board of Directors created the following permanent committees: • Audit Committee • Committee on Investments and Strategic Planning • Committee on Appointment and Remuneration

Mechel PAO Public 40% Float Preferred Shares 60% 138,756,915 – 25%

4 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Growth Points

Our major growth and development points are:

. Debt restructuring Successful restructuring will decrease financial expenses and arrange financing to develop our major projects

. Growing share of Universal rolling mill and stainless long and flat steel products Increases steel segment profitability by moving products range towards the higher value added positions

. Port Posiet Gates to our Asian coal offtakers through increase of capacities to 9 mln tonnes

5 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Supported by …

Superior mining assets quality . One of the leading metallurgical coal producers and exporters on the seaborne market . Ability to supply steel producers with a wide range of metallurgical coal . Core assets positioned at the lower bound of the global cost curve

Strong local steel producer position . Most diversified specialty steel producer in . One of the largest long steel producer in Russia . Largest distribution platform in Russia . First newly built rolling mill for beams and high-speed long rails in Russia

Strategic position to supply Asia-Pacific seaborne market . Coal assets uniquely positioned to supply metallurgical coal to attractive Asia-Pacific markets . Access to key Far Eastern ports with low transportation cost . Own infrastructure including ports and rolling stock, secures access to end customers and export markets

Vertically integrated steel business model

6 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Assets Structure

Mining Segment Steel Segment Power Segment

Chelyabinsk Metallurgical Coal Plant Generation

Southern Kuzbass Coal Izhstal Southern Kuzbass Power Company Plant

Beloretsk Metallurgical Plant Yakutugol Distribution Urals Stampings Plant Kuzbass Power Sales Vyartsilya Metal Products Company Iron Ore Plant

Korshunov Mining Plant Mechel Nemunas (Lithuania) Distribution

Bratsk Ferroalloy Plant Coke Mechel Service (Russia) Own Ports Mechel Coke Mechel Service Global (excl. Russia) Port Posiet (Sea of Japan) Coke and Gas Plant Port Temryuk () Mechel Carbon AG (Swiss)

Port Kambarka (Kama river)

7 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Vertically Integrated Mining & Steel Business Model

Coking Coal Concentrate, 12m 2019 Iron Ore Feed, 12m 2019 Coke, 12m 2019 One of the leading metallurgical coal producer globally with ability to supply steel producers with a wide range of metallurgical coal types, coke and iron ore

concentrate.

MMt MMt 7,2 MMt 5,0

3,3 2,5 2,6 1,7

Production Consumption Production Consumption Production Consumption

Own infrastructure Sea Port capacity, 12m 2019 Cargo turnover, 12m 2019 Power, 12m 2019 helps to establish access to end customers.

14.5

7,0 MMt

MMt 29,6 bln KWhbln 8,7 7,5 14,0 4,7 3,4

* -Source: Company data Shipped through Shipped overall Own rolling stock Overall Production Consumption own ports - Volumes shipped through Vanino port

8 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Market Position

9 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Broad Geographic Footprint

Revenue Breakdown By Market (3Q 2020) Mining Segment

Middle East CIS 5% 2%

Europe 10%

Asia w/o China Vy artsily a Metal Products Plant China 44% Russian Federation 22%

Mechel Nemunas Moscow Coke and Gas Plant Russia Izhstal Lithuania Moscow 17% Mechel Coke Chely abinsk Metallurgical Plant Port Kambarka Urals Stampings Plant Yakutugol Steel Segment Metallurgical Plant Southern Kuzbass Ukraine Asia Coal Company Korshunov Mining Plant 2% Southern Kuzbass Port Temry uk Ferroalloy Plant Power Plant CIS 14%

Mongolia

Port Vanino* Europe 17% China Port Posiet Russia 67%

Mining Port Head office *Access to port secured by contractual agreements Steel Power

10 MANAGEMENT PRESENTATION / DECEMBER 2020 / MARKET POSITION www.mechel.com Ability to Supply All Metcoal Markets

Diversification / enhancement of Extensive range of metcoal Mechel’s own ports on the Sea of sales channels to the fast- grades allows for diversified Japan and Azov Sea serve as the growing Asian and European product portfolio to serve a stable gateways to export markets variety of customer needs markets

Russian Federation 3.1 mln t (1) 2.7 mln t (1) Canada Yakutugol Southern Kuzbass Port Vanino Europe Port Posiet China USA Japan

India 286 mn t (2)

Indonesia

Australia

Freight rates from port Posiet Freight rates from port Vanino (Handysize 22 000 t) (45 000 t) Major coking coal Mechel’s routes to Northern China $9.25 pmt to Northern China $10.00 pmt exporting regions to Yangtze River $9.75 pmt to Yangtze River $10.50 pmt 3rd parties routes Major coking coal to Southern China $12.00 pmt to Southern China $11.50 pmt importing regions Target markets for Mechel’s to Thailand $14.00 pmt to Thailand $12.50 pmt coking coal supplies to Philippines $14.00 pmt to Philippines $12.50 pmt Size of respective seaborne coking Target markets for Mechel’s to Indonesia $15.25 pmt to Indonesia $13.90 pmt coal markets steam coal supplies India $19 / $17 India $16.75 pmt / (West Coast / East Coast) pmt (West Coast / East Coast) $15 pmt Notes: (1) FY2019 metallurgical coal production to Japan $7.00 pmt to Japan $6.00 pmt (2) Total seaborne met coal trade (2018), CRU

11 MANAGEMENT PRESENTATION / DECEMBER 2020 / MARKET POSITION www.mechel.com Steel Segment

Production Russian Volume, Product production Rank Mechel Service Global – Map of distribution hubs 12m 2019 share ‘000 tonnes

Rebar 1,223 16.2% 4

Wire rod 835 26.7% 1 Russian Federation

Wire 379 27.5% 1 Europe products

Kazakhstan Rails 274 21.8% 2

Mechel Serv ice f acilities Source: Company data Beams 271 27.0% 2

High-tensile Advantages 28 28.5% 2 wire

84 storage sites and service centers throughout Russia, CIS & Europe

Real time market intelligence and pricing feedback

Opportunity to address specific customer needs and sell more high margin and value added products Source: Company Filings

12 MANAGEMENT PRESENTATION / DECEMBER 2020 / MARKET POSITION www.mechel.com Universal Rolling Mill

13 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Key project results

Universal rolling mill sales (th tonnes)

. From January 2016 Mechel supplies rails to the . Product 9M’ 20 9M’ 19 % 3Q’ 20 2Q’ 20 % . New types of rails production (for use at European railways) have already Railway rails been adopted at the plant and passed certification for conformity with 264 193 +37 50 99 -50 European railroad standards. Structural . In 9M2020 Rails sales increased by 37% compared to 9M2019. 228 213 +7 86 67 +28 shapes . Structural shapes sales increased by 28% Q-o-Q. . We continue developing and producing new types of rails and shapes at Universal rolling mill. In the near term we plan to start mastering new rail types for railroads with speed up to 400 km/h. . In July 2020 Metallurgical Plant has shipped to the customers the 3rd-million tonne of products from the Universal Rolling Mill since the beginning of production. 40% оf the production volumes were rails.

Key project metrics: . Capacity - up to 1.1 mln tonnes . CAPEX - US$ 900 mln including steel-making facility (Continuous casting machine #5) . Products - High-speed and low-temperature rails of up to 100 meter long - H-beams, channel bars, angles and grooves . Target consumers - Russian Railways and Construction industry

14 MANAGEMENT PRESENTATION / DECEMBER 2020 / UNIVERSAL ROLLING MILL www.mechel.com Universal Rolling Mill

Source: Company data

15 MANAGEMENT PRESENTATION / DECEMBER 2020 / UNIVERSAL ROLLING MILL www.mechel.com Logistics Facilities

16 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Mechel Trans – Access to Seaborne Market

Own and Partner Seaport Facilities

. Access to main customers in Asia-Pacific and Europe is secured through own ports facilities Yakutugol . Port capacity alignes with expected growth in export volumes Southern Port Vanino Port Temry uk Kuzbass Port Posiet

Own and Partner Seaport Annual Turnover Ports Key Characteristics Capacities, MMt

21.0

TEMRYUK POSIET VANINO * 10.0

EXISTING 2.0 MMt per year 9.0 MMt per year 10.0 MMt per year CAPACITY 2.0 6.5 1.8 TARGET 9.0 4.0 MMt per year 15.0 MMt per year na CAPACITY 4.7

2012 2020 VESSEL TYPE River-to-sea vessels Handysize Handymax Posiet Temryuk Vanino

Source: Company data Notes: * Volumes secured by contractual agreements

17 MANAGEMENT PRESENTATION / DECEMBER 2020 / LOGISTICS FACILITIES www.mechel.com Mechel Infrastructure Allows Secured Access to Final Customers

Posiet Port Vanino Port*

• Increase access to Asian coal • Increases logistics flexibility to customers via seaborne Asian coal customers market • Total turnover up to 10 mln • Existing port capacity – 9 mln tonnes of cargo per year tonnes per year • Shorter transportation distances – lower rail and • Target capacity - 15 mln vessel freights costs tonnes (Panamax vessels) after 2nd stage of modernization

* Access to port secured by contractual agreements

Temryuk Port Mechel Trans Transportation Company • Logistics flexibility on the Sea • Rolling stock of about 11,500 of Azov and Black Sea railcars • Potential to increase export of • Ensures uninterrupted coking coal, PCI and anthracite transportation to Europe • Reduces dependency on • Existing port capacity – Russian Railways, state- 2 mln tonnes owned and independent freighters • Target capacity – 4 mln tonnes

18 MANAGEMENT PRESENTATION / DECEMBER 2020 / LOGISTICS FACILITIES www.mechel.com Port Posiet

19 MANAGEMENT PRESENTATION / DECEMBER 2020 / LOGISTICS FACILITIES www.mechel.com Debt Restructuring

20 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com Debt structure & net debt / EBITDA ratio

dynamics 600 000 30,0 RUB

500 000 487 bln RUB 25,0 RUB RUB 433 bln RUB RUB RUB RUB 426 bln RUB 427 bln . As of November 2020 portion of restructured debt is at a level of 90%; 423 bln 411 bln 411 bln 408 bln 400 000 400 bln 20,0 ruble portion of debt amounts to 54%; and Russian state-controlled RUB RUB 336 bln banks hold 86,7% of our debt portfolio. 311 bln 300 000 15,0 . Net leverage increased to 8.2 on LTM EBITDA decrease and USD- and 11.0

euro-denominated debt growth as a result of ruble depreciation. 200 000 8.4 7.5 8.2 10,0 6.6 6.4 6.9 6.9 . Average interest rate through the debt portfolio as of November 2020 is 5.3 5.6 5.7

5.5% per annum; average paid interest rate amounts to 5.4% per 100 000 5,0 annum. . In 3Q2020 Group repaid RUB 4.9 bln and received RUB 6.2 bln of 0 0,0 debt. FY'15 FY'16 FY'17 FY'18 1Q'19 1H'19 9M'19 FY'19 1Q'20 1H'20 9M'20 Lease and other financial liabilities Long-term borrowings Interest payable Short-term borrowings and current portion of long-term borrowings Net Debt*/EBITDA * excluding GPB option on Elga, fines and penalties Including Elga coal complex.

Bonds Other In restructuring 1.0% 0.6% 10%

ECA 11.7% EUR 36% RUB 54%

Restructured loans Russian state- 90% controlled banks USD 86.7% 10%

www.mechel.com 21 MANAGEMENT PRESENTATION / DECEMBER 2020 / DEBT STRUCTURE KEY FINANCIAL AND OPERATIONAL RESULTS

22 MANAGEMENT PRESENTATION / DECEMBER 2020 www.mechel.com 3Q 2020 Financial results summary

. Consolidated Revenue in 3Q2020 amounted to 64.4 bln RUB, a RUB mln 3Q’ 20 2Q’ 20 % 9M’ 20 9M’ 19 % slight decline compared to 2Q2020. Steel segment Revenue growth on stronger pricing and sales volumes for construction steel products was offset by weaker Revenues in Mining and Revenue 64,424 64,536 -0.2% 196,197 220,113 -11% Power segments on lower coal prices and seasonal decline in Operating profit / power and heat consumption. 6,353 (2,260) - 12,023 30,787 -61% (loss)

. 3Q2020 EBITDA* went up by 6% compared to 2Q2020 and EBITDA* 9,349 8,852 6% 31,362 44,333 -29% amounted to 9.3 bln RUB with EBITDA margin increase to 15%. It happened mainly due to Steel segment EBITDA growth with EBITDA margin, % 15% 14% 16% 20% stable EBITDA of Mining segment. (Loss) / profit attributable to equity (25,959) 47,074 -155% (15,763) 12,174 -229% . Loss attributable to equity shareholders of Mechel PAO in shareholders 3Q2020 amounted to 26.0 bln RUB, compared to profit amounted of Mechel PAO to 47.1 bln RUB in 2Q2020. Growth of exchange rate losses on ruble weakening was the major factor of negative dynamics.

*Here and further EBITDA is calculated as Adjusted EBITDA in accordance with definition in Press release Attachment A

23 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com 3Q 2020 Production and sales summary

Production (th tonnes)

. In 3Q2020 coal mining volumes decreased by 7% compared to Product 3Q’ 20 2Q’ 20 % 9M 20 9M 19 % 2Q2020 on lower production at Yakutugol and almost stable results of Southern Kuzbass Q-on-Q. In 9M2020 coal mining volumes Run-of-mine 4,274 4,578 -7 13,131 10,195 +29 increased by 29% compared to 9M2019. Coal*

. Pig iron and steel production declined by 5% and 8% respectively Q- Pig Iron 862 912 -5 2,646 2,530 +5 on-Q as a result of ongoing repairing works at Chelyabinsk Metallurgical Plant. Steel 852 926 -8 2,654 2,750 -3

 Excluding the volume of the Elga coal complex.

Sales (th tonnes)

Product 3Q’ 20 2Q’ 20 % 9M 20 9M 19 % . Coking coal sales to third parties in 3Q2020 decreased by 12% compared to 2Q2020. Coking Coal* 1,435 1,628 -12 4,487 4,277 +5

. Other met coal (PCI and anthracites) sales were higher by 6% Q-on- Steam Coal* 1,000 975 +2 2,857 2,457 +16

Q. Steam coal sales (including middlings) grew in3Q2020 by 2% Q- Flat Products 109 109 0 342 337 +1 on-Q. Long Products 645 647 0 1,940 1,891 +3 . Flat and Long products sales were flat Q-on-Q.  Excluding the volume of the Elga coal complex.

24 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com Mining segment

Revenue, EBITDA margin, RUB Bln

. Share of domestic sales continued to decline and shrank from 20% to 17% Inter-segment revenue Revenue EBITDA margin Q-on-Q. Share of Europe increased from 9% to 10%, sales to China 100% comprised 22% after 20% in 2Q2020. Share of sales to Middle East, CIS 30,0 and Asia (without China) remained unchanged. 80% 10.0 . Weaker coal prices resulted in 6% Mining segment revenue decline Q-on-Q. 8.0 8.4 20,0 8.3 8.2 60% . Negative revenue dynamics was compensated by cost of sales decrease 34% that allowed EBITDA to stay unchanged Q-on-Q. EBITDA margin increased 27% 40% 23% 24% 25% from 24% to 25% compared to 2Q2020. 10,0 20% 20.2 18.4 17.0 18.3 17.2 0,0 0% 3Q19 4Q19 1Q20 2Q20 3Q20

Revenue breakdown by regions (3Q 2020) EBITDA, RUB Bln Middle East 7,0 5% CIS 2% 6,0 1.4 -1.8 -0.1 5,0 0.5 Europe 10% 4,0

Asia w/o 3,0 6.4 6.4 China China 44% 2,0 22%

1,0

0,0 Russia EBITDA Prices External sales Inter-segment Cost of sales EBITDA 17% 2Q2020 volumes sales 3Q2020

25 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com Steel segment

Revenue, EBITDA margin, RUB Bln

. Steel segment Revenue to 3rd parties in 3Q2020 increased by 3% Inter-segment revenue Revenue EBITDA margin compared to 2Q2020 due to higher construction steel products prices Q- on-Q, as well as increased sale volumes of structural shapes of Universal 30% Rolling Mill, which allowed to offset the decrease of rails sales. Rising 50,0 1.3 1.7 2.0 1.5 1.3 prices for structural shapes also had a positive impact. 40,0 45.5 40.6 42.1 40.3 41.4 20% . EBITDA in 3Q2020 went up by 18% compared to 2Q2020 on higher 30,0 prices for construction steel products and decrease in selling and 10% distribution expenses. 20,0 7% 7% 10% 5% 6% . Segment`s EBITDA margin increased Q-on-Q from 6% to 7%. 10,0

0,0 0% 3Q19 4Q19 1Q20 2Q20 3Q20

Revenue breakdown by regions (3Q 2020) EBITDA, RUB Bln Asia 2% 4,0 - 0.1 - 0.2 CIS 3,5 14% 1.0 3,0 - 0.7 0.4 2,5

2,0 Europe 1,5 3.0 17% 2.6 Russia 1,0 67% 0,5 0,0 EBITDA Prices External sales Inter-segment Cost of sales Other EBITDA 2Q2020 volumes sales 3Q2020

26 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com Cash costs & Average sales prices dynamics

Mining Segment

3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20

3,390

3,031

13,279

2,782

11,708

2,381

3,086

11,156

2,156

10,757

10,691

2,793

9,438

9,362

9,292

9,246

9,170

2,500

2,468

2,423

2,384

2,364

2,325

2,298

2,255

6,553

2,718

4,905

4,833

2,189

4,646

2,050

4,565

1,898

1,468

3,702

3,648

3,427

3,350 2,895

Coal SKCC Coal YU Iron ore Coke Coking coal Anthracite and Steam coal Iron ore PCI Steel Segment Cash costs, RUB/tonne Average sales prices FCA, RUB/tonne 3Q19 4Q19 1Q20 2Q20 3Q20

3Q19 4Q19 1Q20 2Q20 3Q20

53,481

52,065

51,539

50,006

48,473

71,063

70,079

64,054

63,675

61,684

35,210

33,869

32,324

32,091

48,087

30,860

30,518

30,302

46,741

45,760

45,283

45,254

28,910

45,024

44,546

28,473

44,211

44,199

44,077

43,898

27,867

43,134

43,103

42,998

42,690

42,289

26,870

41,944

41,846

41,830

40,757

25,806

25,095

24,207

23,543

23,229

23,122

22,906

22,825

22,770

22,041

21,995

21,972

34,146

21,641

21,583

31,888

29,895

29,108 28,934

Billets Wire rod Rebar Carbon flat Railway rails Ferrosilicon Rebar Hardware Carbon flat Railway rails Structural Ferrosilicon shapes

27 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com Consolidated revenue and segment EBITDA dynamics Revenue, RUB Bln

Power Steel Mining

-1.1 1.1 -0.1 . Mining segment Revenue to 3rd parties in 3Q2020 decreased by 6% 6.0 5.9 compared to 2Q2020. This was a result of lower prices for almost all coal products in the reporting period, compared to 2Q2020.

rd . Steel segment Revenue to 3 parties in 3Q2020 increased by 3% compared 40.3 41.4 to 2Q2020 due to higher construction steel products prices Q-on-Q, as well as 63,5 63,5 64,7 increased sale volumes of structural shapes of Universal Rolling Mill, which allowed to offset the decrease of rails sales. Rising prices for structural shapes also had a positive impact. 18.3 . Power segment Revenue to 3rd parties declined by 2% in 3Q2020 compared 17.2 to 2Q2020 due to seasonal factors. Revenue Mining Steel Power Revenue 2Q2020 Segment Segment Segment 3Q2020

Segment EBITDA, RUB Bln

Power Steel Mining

0.4 -0.1 . Mining segment EBITDA remained stable in 3Q2020 compared to 2Q2020 0.4 0.0 0.3 and amounted to 6.4 bln RUB as lower Revenue was compensated by cost of 3.0 sales decrease. 2.6 . Steel segment EBITDA went up by 18% and amounted to 3.0 bln RUB compared to 2Q2020 on higher prices for construction steel products and 9,4 9,4 9,7 decrease in selling and distribution expenses. 6.4 6.4 . Power segment EBITDA declined by 34% in 3Q2020 and amounted to 254 mln RUB on selling and distribution expenses growth. EBITDA Mining Steel Power EBITDA 2Q2020 Segment Segment Segment 3Q2020

28 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com Cash flow & trade working capital

CASH FLOW, RUB Bln

. Cash flow from operations covers Group's current expenses, including debt service and lease payments. 85.3

-115.1 . As of September 30, 2020, trade working capital was negative at -12.3 bln RUB.

29.0 . Group’s capital expenditures in 9M2020 amounted to 6.0 bln RUB, including 2.9 0.3 2.4 1.8 bln RUB of lease payment. Cash net of Net Operating Net Investing Net Financing Effect of Cash net of overdrafts as activities activities activities exchange rate overdrafts as of 31.12.2019 changes of 30.09.2020

Trade working capital management, RUB Bln FREE CASH FLOW for 9M 2020, RUB Bln

72.5 68.0 66.7 62.2 64.8

3.4

88.3 94.5 -95.3 (5.0) (8.4) (12.3) (16.8)

(63.3) -18.6 -4.2 (67.2) 29.0 -0.8 (80.9) (81.6) (80.3)

30.09.2019 31.12.2019 31.03.2020 30.06.2020 30.09.2020 Cash flow from Net interest Capital Net investing Free Cash Flow Net Settelment of Free Cash Flow Operations expenses, incl expenditures activity loan,lease and to Firm overdue interest (excluding lease) other obligations Trade current assets Trade current liabilities Trade working capital and capitalized

29 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY FINANCIAL AND OPERATIONAL RESULTS www.mechel.com Operational Results

Mining Segment Production:

9M’2020, 9M’2019, % 3Q2020, 2Q2020, % Product thousand tonnes thousand tonnes thousand tonnes thousand tonnes

Run-of-mine coal 13,131 10,195 +29 4,274 4,578 -7 Sales:

9M’2020, 9M’2019, % 3Q2020, 2Q2020, % Product thousand tonnes thousand tonnes thousand tonnes thousand tonnes

Coking coal concentrate 4,487 4,277 +5 1,435 1,628 -12

PCI 1,473 935 +58 506 521 -3

Anthracites 861 501 +72 309 284 +9

Thermal coal 2,857 2,457 +16 1,000 975 +2

Iron ore concentrate 1,648 1,922 -14 606 470 +29

Coke 1,873 1,913 -2 643 607 +6 Steel Segment Production:

9M’2020, 9M’2019, % 3Q2020, 2Q2020, % Product thousand tonnes thousand tonnes thousand tonnes thousand tonnes

Pig Iron 2,646 2,530 +5 862 912 -5

Steel 2,654 2,750 -3 852 926 -8 Sales:

9M’2020, 9M’2019, % 3Q2020, 2Q2020, % Product thousand tonnes thousand tonnes thousand tonnes thousand tonnes

Flat rolls 342 337 +1 109 109 0

Long rolls 1,940 1,891 +3 645 647 0

Hardw are 415 438 -5 148 134 +10

Forgings 31 32 -2 10 9 +2

Stampings 30 84 -64 3 4 -17

Ferrosilicon 47 52 -9 16 18 -13

30 MANAGEMENT PRESENTATION / DECEMBER 2020 / KEY OPERATIONAL RESULTS www.mechel.com Mechel is a global mining and metals company

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