Investor Presentation 1H 2011 IFRS Results September 2011 Disclaimer

PROPRIETARY & CONFIDENTIAL

TMK

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of the Company, or any of its shareholders or subsidiaries or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation.

This presentation contains certain forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. OAO TMK does not undertake any responsibility to update these forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation contains statistics and other data on OAO TMK’s industry, including market share information, that have been derived from both third party sources and from internal sources. Market statistics and industry data are subject to uncertainty and are not necessarily reflective of market conditions. Market statistics and industry data that are derived from third party sources have not been independently verified by OAO TMK. Market statistics and industry data that have been derived in whole or in part from internal sources have not been verified by third party sources and OAO TMK cannot guarantee that a third party would obtain or generate the same results.

2 Presentation Outline

 Company Overview 4

 Financial Review 8

 Russia 17

 North America 22

 Investments 27

 Appendix – Summary Financial Accounts 29

 Appendix – TMK Global Assets 33

 Contacts 36

3 Company Overview

4 Investment Highlights

. One of the largest tubular capacity Global . High exposure to the oil & gas industry: approximately 75% of 2010 shipments went to the oil & gas sector Market Leader . Leading producer of value-added steel pipes for the oil & gas industry . 12% global seamless OCTG(1), 14% of the U.S. OCTG market in 2010

Leading Position in . Russia: 53% seamless pipe market, 60% seamless OCTG market, 20% LD pipe market in 2010 Russia and the U.S. . Strategic partnerships and long-term contracts with Russian oil & gas majors . One of the leading supplier to shale oil & gas in the U.S.

. Strong industry fundamentals driven by robust demand for oil & gas . Stable demand from Russian oil industry little affected by fluctuations in oil prices Favorable . Consolidated industry with significant barriers to entry Industry Fundamentals . Demand for seamless OCTG expected to experience significant growth driven by increasing complexity of drilling . Oil & gas plays are to be more resilient to possible economic recession due to limited supply from traditional deposits and geopolitical risks

Vertically Integrated . Structural cost advantages over major international competitors Low Cost Producer . Fully vertically integrated seamless pipe production (upstream and downstream operations) in all 3 divisions . Long-term proven ability to pass cost increase to customers

. Strategic Investment Programme (2004-14) aimed at 48% capacity increase is nearly completed Growth Potential . Ability to efficiently integrate acquired businesses and realise synergies and Deleveraging . The effect from the recent investment projects to be realized in 2012-2015 which will facilitate deleveraging

2007 2008 2009 2010 1H 2011 LTM Key Performance Revenue, U.S.$ mln 4,179 5,690 3,461 5,578 6,560 Figures EBITDA, U.S.$ mln 920 1,047 328 942 1,153 ROE, % 28.9% 9.4% neg 6.9% 19.2%

(1) OCTG - Oil Country Tubular Goods

5 Global Operational and Sales Footprint Steel Tubular Industry Leader TMK’s Strategic Positioning Made it the Steel Tubular Industry Leader, with Nearly 4 million Tonnes Sold in 2010 and more than 2 million Tonnes in 1H 2011.

Truboplast Pipe Maintenance Department Seversky Sinarsky Moscow RosNITI Central Pipe Yard Orsky Calgary Cologne Volzhsky Astana Zurich Resita Kaztrubprom Tagmet Chicago Artrom Lecco Beijing Camanche Brookfield Baku Geneva Wilder Koppel Ashgabat Tulsa Ambridge Odessa Blytheville Houston Baytown Management Dubai Production Oil & Gas Services Scientific and Technical Center Sales and Marketing

Capacity North Russia Global Drilling Activity Europe Total (tons) America and CIS Africa Europe Asia 5% 3% Steelmaking 450,000 450,000 2,450,000 3,350,000 Pacific Cape Town 7% U.S. Seamless Pipes 300,000 200,000 2,420,000 2,920,000 Middle 33% East TMK Domestic Markets 9% Welded Pipes 1,150,000 2,200,000 3,350,000 (Russia (including Caspian) Heat Treat 441,000 1,500,000 1,941,000 Canada and the U.S.) Represent 55% 10% of Global Drilling Activity Threading 981,000* 1,560,000 2,541,000 Latin Russia America Caspian 14% Note: *Including ULTRA Premium connections of 240,000 tons 11% 8% Source: TMK data Source: M-I SWACO

6 Global Leader in Cost Efficiency Russia is One of the Lowest Cost Regions for Steel Products Manufacturing

Low Raw Material Costs Scrap purchase price (U.S.$/tonne) 1H 2011 Cash Cost per Tonne (U.S.$) . 393 – TMK . 436 – Shredded – FOB Rotterdam . 471 – S. Europe domestic DRI - Italy import, CIF 2,619 Favourable Unit Labour Cost* Labour cost, U.S.$/month 1,974 . 768 for TMK . 750 in Russia 1,341 . 4,200 in USA . 5,900 in Germany

Low Regulated Energy Prices* Electricity price, U.S.$/MWh . 80 in Russia Vallourec Tenaris TMK . 100 in China . 90 in USA . 100 in Germany

Low Gas Prices Gas price, U.S.$/’000 m3 Source: TMK data . 88 in Russia

Note: Cash cost per tonne is calculated as (Revenue minus EBITDA) divided by sales volume . 380 in Europe * 2010 data

7 Financial Review

8 1H 2011 Sales Volumes by Segment and Groups of Product

Russia Americas Europe Thousand Change, Change, Change, 1H 2011 1H 2010 1H 2011 1H 2010 1H 2011 1H 2010 Tons % % %

Seamless Pipe 994 846 17% 146 142 3% 95 89 7%

OCTG 494 448 10% 128 113 13% 2 5 -60%

Line Pipe 283 229 24% 10 15 -33% 13 18 -28%

Industrial Pipe 217 169 28% 8 14 -43% 80 66 21%

Welded Pipe 654 539 21% 290 270 7% - - n/a OCTG - - 173 180 -4% - - n/a n/a Line Pipe 111 92 21% 42 29 45% - - n/a Industrial Welded 162 165 -2% 75 61 23% - - n/a Large Diameter 381 282 35% - - - - n/a n/a

Total Pipes 1,648 1,385 19% 436 412 6% 95 89 7%

Source: TMK data

9 1H 2011 Key Consolidated Financial Highlights

Summary 1H 2011 Financial Highlights 2Q 2011 Revenue

(1) +13% Q-o-Q U.S.$ mln 1H 2011 1H 2010 Y-o-Y, % 2,000 +42% Y-o-Y

(unless stated otherwise)

Net Sales 3,547 2,566 38% 1,500 mln Adjusted EBITDA(2)

625 415 51% S.$ . 1,000 1,879 1,879 U 1,668 Adjusted EBITDA Margin (%) 18% 16% n/a 1,326 500 Net Income / (Loss) 258 67 285% Net Margin (%) 7% 3% n/a 0 1Q2011 2Q2011 2Q2010 2Q2011 2Q 2011 Adjusted EBITDA Pipes Sales ('000 tonnes) 2,179 1,886 16% Average Net Sales / Tonne (U.S.$)(3) 1,628 1,361 20% +13% Q-o-Q 350 +57% Y-o-Y

Adjusted EBITDA / Tonne 287 220 30%

280 mln 210

Capex 190 165 15% S.$ . 332 332 Total Debt 4,017 3,644 10% U 140 293 211 Net Debt 3,843 3,555 8% 70 0 ST Debt / Total Debt 13% 23% n/a 1Q2011 2Q2011 2Q2010 2Q2011 Net Debt / Adj. EBITDA LTM 3.3x 6.0x n/a 2Q 2011 Net Income Adj. EBITDA LTM / +48% Q-o-Q 3.7x 1.5x n/a +126% Y-o-Y

Interest Expenses LTM 160

Source: TMK Consolidated IFRS Financial Statements, TMK data 120 Notes: mln

(1) IFRS financials figures were rounded for the presentation’s purposes. Minor S.$ 80 154 154 .

differences with FS may arise due to rounding U 104 (2) Adjusted EBITDA is calculated as profit before tax plus finance costs minus 40 68 finance income plus depreciation and amortization adjusted for non-operating and non-recurrent items 0 (3) Sales include other operations 1Q2011 2Q2011 2Q2010 2Q2011 10 1H 2011 Key Financial Highlights by Segment

Russia Americas Europe (1) Change, Change, Change, U.S.$ mln 1H 2011 1H 2010 1H 2011 1H 2010 1H 2011 1H 2010 (unless stated otherwise) % % %

Volumes- Pipes, kt 1,648 1,385 19% 436 412 6% 95 89 7%

Net Sales 2,589 1,830 41% 765 620 23% 193 116 66%

Gross Profit 581 424 37% 180 137 31% 53 25 112% Margin, % 22% 23% 24% 22% 27% 22%

Adjusted EBITDA 430 285 51% 160 122 31% 35 8 338% Margin, % 17% 16% 21% 20% 18% 7%

Avg Net Sales / 1,571 1,321 19% 1,755 1,505 17% 2,032 1,303 56% Ton (U.S.$)

Avg Gross Profit / 353 306 15% 413 333 24% 558 281 99% Ton (U.S.$)

Avg Adjusted EBITDA / 261 206 27% 367 296 24% 368 90 309% Ton (U.S.$)

Source: Consolidated IFRS Financial Statements, TMK data Notes: (1) Financial results of European Segment include sales of billets to third parties (66 kt in 1H 2011 and 22 kt in 1H 2010)

11 Revenue Growth From All Segments and Groups of Product Both seamless and welded businesses contributed to revenue growth. Revenue growth in the Russian division was resulted from sales volumes increase and better pricing and product mix, while in the American division revenue growth was mostly driven by changes in prices and product mix

Russia Americas Europe

+41% +23% +66%

+73 -18 193 2,700 +124 +15 2,589 800 765 200 +9 +26 +231 +90 +54 Price & Product Mix +100 Price & Product Mix +19 Sales Volumes +389 +131 Sales Volumes 620 +76 Price & Product Mix +42 +185 Price & Product Mix +14 Sales Volumes 150

1,830 +204 Sales Volumes 600

1,800 +35 Price & Product Mix

116

mln mln +7 Sales Volumes

mln 400 100

U.S.$ U.S.$ U.S.$

900 U.S.$ 200 50

0 0 0

Others

Other

Welded

Activities

Business

Welded

1H2011 1H2010

1H2010 1H2011

Business

Revenue Revenue

Activities

Seamless

Business

Billets

Currency

Business

1H2011 1H2010

Business

Revenue Revenue

Seamless

Translation Sales Steel of

Source: Consolidated IFRS Financial Statements, TMK data

12 Seamless Business Drives EBITDA Growth

Seamless Business Remained a Major Contributor to the Net Profit Increased as a Result of Higher EBITDA and EBITDA Growth Lower Finance Costs

700 +47 -68 +244 -2 -37 320 +20 -15 625 +210 -20 600 280 +19 +3 258 240

500

415 mln 200 mln 400

U.S.$ U.S.$ 160 U.S.$ U.S.$ 300 120 200 80 67

100 40

0 0

(1)

D&A

Other

SG&A

Welded

Business

Seamless

EBITDA EBITDA

Adj. EBITDA Adj.

1H 2010 Adj. 2010 1H Adj. 2011 1H

Net

Finance Cost, Net Cost, Finance

1H 2010 Net Income Net 2010 1H Income Net 2011 1H Income Tax Expense Tax Income

Source: Consolidated IFRS Financial Statements, TMK data Foreign Exchange Gain, Exchange Foreign Note: (1) Changes represent changes in Gross Profit

13 1H 2011 Key Financial Highlights by Group of Product

U.S.$ mln 1H 2011 1H 2010 Change, % (unless stated otherwise)

Volumes- Pipes, kt 1,235 1,077 15% Core Business – Seamless

Net Sales 2,021 1,419 42% . Sales of seamless pipes generated 57% of total Gross Profit 575 331 74% Revenue in 1H 2011 Margin, % 28% 23%

Seamless . 1H 2011 Gross Profit from Avg Net Sales / Tonne (U.S.$) 1,636 1,318 24% seamless pipe sales represented 71% of Avg Gross Profit / Tonne (U.S.$) 466 307 52% 1H 2011 total Gross Profit

. 28% Gross Profit Margin Volumes- Pipes, kt 944 809 17% from seamless pipes sales – one of the highest Net Sales 1,370 1,020 34% respective measures in the Gross Profit / (Loss) 231 233 -1% industry

Margin, % 17% 23% Welded

Avg Net Sales / Tonne (U.S.$) 1,451 1,261 15%

Avg Gross Profit / Tonne (U.S.$) 245 288 -15%

Source: Consolidated IFRS Financial Statements, TMK data

14 Working Capital Position

Accounts Receivable (days) Accounts Payable (days)

94 120 100 107 100 80 80 75 60 56 56 53 62 60 50 40 40

20 20

0 0 2008 2009 2010 1H 2011 2008 2009 2010 1H 2011 LTM LTM

Inventories (days) Cash Conversion Cycle (days)

140 132 140 119 120 120

100 91 100 90 90 84 87 80 80 72

60 60

40 40

20 20

0 0 2008 2009 2010 1H 2011 2008 2009 2010 1H 2011 LTM LTM Source: Consolidated IFRS Financial Statements

15 Debt Profile TMK Continues to Optimize its Capital Structure and Develop a Flexible, Cost-effective Debt Portfolio Maturity Profile as of 30 June 2011

. As of 30 June 2011, Total Debt accounted for U.S.$4,017 mln 900 831 21 . 87% of Total Debt is long-term 800 725 11 . 32% of Total Debt is represented by Eurobonds, 700 convertible bonds and rouble bonds, 68% - bilateral loans and other facilities 600 301 536 500 . Weighted average nominal interest rate totalled 7.33%, 500 down 53 b.p. from 31 December, 2010 mln 414

S.$ 409 .

U 400 26 810 . 76% of Total Debt is unsecured 49 46 303 300 276 182 536 Debt Structure by Currency as of 30 June 2011 155 500 90 200 413 EUR, 6% 303

100 187 186 178

0 2011 2012 2013 2014 2015 2016 2017 2018 USD, 47% Bonds Bank Loans Investment Loans Overdrafts RUB, Note: TMK management accounts. Figures above are based on non-IFRS 47% measures, estimates from TMK management

Note: Numbers represent TMK management accounts and differ from IFRS figures for the amounts of accrued interest, debt issue cost and finance lease liabilities, and other items not related to the principal amount of debt 16 Russia

17 Oil Production and Capex Needs in Russia

Deteriorating oil production conditions at mature The average productivity of oil wells in Russia fields, particularly in the Urals and Western Siberia, remains below most of other major oil regions in the require substantial capex spending by oil majors to world. maintain existing production levels. Tubing consumption per well remains significantly more intense than in any other region.

Oil Production and Upstream Capital Expenditure Average Well Flow Rates

1,804 12 40 150 831 35 10 125 487

/d U.S.$ 8 100 91 25 83 83

bpd 75 bn

mmbbl 6 20 75

15 4 50 10 2 25 5

0 0 0

OPEC

2000 2002 2003 2004 2005 2006 2007 2008 2010 2001 2009

Russia

Europe

2011E

Western

(excl. U.S.)

Asia Pacific Middle East

Russian Oil Production and CIS Hemisphere

Upstream Capex by 6 Russian Oil Majors Eastern Europe

Source: EIA – International Energy Statistics, UBS, VTB Capital Note: incl. Rosneft, Lukoil, TNK-BP, Surgutneftegas, Gazprom Neft and Tatneft

18 Russian Drilling - Moving East for Growth The Increasing complexity of oil and gas production in Russia is expected to increase demand for higher value-added products

CAGR 2007-2012F 5.6% 24,000 Unconventional Regions Arctic Offshore Conventional Regions 18,000

12,000

6,000 Drilling Activity, DrillingActivity, km Timan Pechora

2007 2008 2009 2010

2011F 2012F Eastern Siberia Western Siberia Sakhalin

Volga

Production, mln tons 2010 2011F 2012F 2013F Caspian Western Siberia 318.8 315.8 313.1 313.1012 “60-66” Tax System to be launched on 1 October 2011 Volga-Urals 107.0 104.3 101.7 99.2 . Export duty for light and dark petroleum products to be Timan-Pechora & Kaliningrad 32.4 32.4 32.4 32.9 calculated as 66% of the export duty for crude oil (with Far East 18.3 19.0 22.0 22.0 the exception of gasoline) Eastern Siberia 17.5 25.5 31.5 38.0 . Export duty for crude to be reduced by lowering the North Caucasus & Precaspian 11.1 12.3 12.9 14.8 marginal rate from 65% to 60% . Customs duty rate on gasoline to stay at 90% Total Oil Production 505.1 509.3 513.6 520.0 . The System will operate through 2015 Source: TMK estimates, VTB Capital

19 Increasing Complexity of Russian Drilling

The Share of Greenfield Production is Projected to Reach 17% Horizontal Drilling is Expected to Double in the Next 5 Years in 2015 Compared to Just 6% in 2010

21 24% 560

520

15 18% %

eters 480

tonnes

m 12

12% ln

9 mln 440 m 6 6% 400 3 0 0% 360

2009 2010 2011F 2012F 2013F 2014F 2015F

2007 2008 2009 2010

2006 Traditional Oil Regions Greenfield

2011F 2012F 2013F 2014F 2015F Vertical Drilling Horizontal Drilling % of Total

Lukoil Plans to Increase the Share of Horizontal Wells from Starting Well Flow Rates for Greenfield Projects are 10% to 40% in 2011-2013 Significantly Higher Compared to Brownfield Production 800 Brownfield Greenfield

250 600

200 400 150 200

100 Tonnes/Well/Day 0

Numberof Wells 50 Uvat

Vankorneft LUKoil-

2009 2010 2011F 2012F neftegaz

Sibneft Yugra Sibneft

Surgutneftegaz

(Korchagina)

Western Siberia Western

Verkhnechonsk-

Sakhalin Energy Sakhalin

Yuganskneftegaz Samotlorneftegaz

Source: VTB Capital, Industry Sources Nizhnevolzhskneft

GazpromNeft NNG GazpromNeft

(South Khulchuya) (South Naryanmarneftegaz

20 Russian LDP Demand Drivers Large-diameter pipe demand to remain robust as regions of production continue to move further away from consumption centers

Shtokman Bovanenkovo Murmansk Bovanenkovo- Novy Ukhta Urengoy Murmansk- Zapolyarye- Volkhov Ukhta- Ukhta SRTO- Purpe Vyborg Torzhok Torzhok Altai Purpe- Project Volkhov Gryazovets ESPO-1 Nord Stream Samotlor Sakhalin- Pochinki- BTS-2 Torzhok Khabarovsk- Gryazovets Vladivostok Sakhalin ESPO-2 Yamal-Europe Pre-Caspian Khabarovsk Tengiz- Pipeline Estimated Russian LDP Novorossiysk South Demand 2011-2013 Vladivostok Stream Stavropol Blue Company Project 2011-2013 Stream Gazprom Ukhta-Torzhok (I&II lines) 1,050 Ankara Yakutiya-Khabarovsk-Vladivostok 725 Bovanenkovo-Ukhta (I&II lines) 538 Altai 475 South Stream 475 Nord Stream (II line) 459 Murmansk-Volkhov 125 Shtokman 125 Pochinki-Gryazovets 59 Maintenance 1,190 Total Gazprom 5,221 Completed Gas Pipeline Transneft ESPO-2 163 Current Gas Pipeline Project Zapolyarye-Purpe 134 Maintenance 831 Expected Gas Pipeline Project Total Transneft 1,127 Rosneft Miscellaneous 217 Completed Oil Pipeline Lukoil Miscellaneous 202 Other Miscellaneous 180 Current Oil Pipeline Project Total 6,947 Expected Oil Pipeline Project Source: Ministry of Energy of Russia

21 North America

22 Shift to Unconventional Drilling

Conventional (Vertical) Drilling Unconventional (Horizontal) Drilling (Hydraulic Fracturing)

Seamless / Premium Welded Tubing Connections Vertical Horizontal Shale Shale

Length, km Up to 5 Up to 10 Drilling % Seamless 35% 60% Fracturing Seamless / Welded Casing % Premium <5% 30% Connections OCTG Tons 45 190 per Well % Small OD 25% 65% <7" Source: J.P. Morgan, Industry Sources

23 US Drilling – Stronger than Ever Drilling Activity Brought Months of OCTG Supply Back to Normal Major U.S. Shale Oil & Gas Plays

16 2,500 Months of Supply 14 US Rig Count Bakken

2,000

12 Rig U.S. Count

10 1,500

8 McClure 6 1,000

4 Months of of SupplyMonths 500 Monterey 2 0 0 Shale Oil

Shale Gas

Jul-08 Jul-10 Jul-09

Jan-08 Jan-09 Jan-10 Jan-11

Mar-08 Mar-09 Mar-10 Mar-11

Nov-08 Nov-09 Nov-10

Sep-08 Sep-10 Sep-09

May-08 May-10 May-11 May-09

Source: Baker Hughes, The OCTG Situation Report Source: U.S. Department of Energy Increasing Oil Drilling Activity Supported by High Crude Premium Tubular Content Increasing With Unconventional Oil Prices Drilling Activity

2,100 2,100

1,800

1,500 1,500 Vertical – 31% 1,200 1,200 Gas – 46%

900 900

U.S. Rig Count U.S. Rig U.S. Rig Count U.S. Rig 600 600 Horizontal – 58% 300 Oil – 54% 300 Directional – 12% 0 0 Jan-03 Jun-04 Nov-05 Apr-07 Oct-08 Mar-10 Aug-11 Jan-03 Jun-04 Nov-05 Apr-07 Oct-08 Mar-10 Aug-11

Source: Baker Hughes Source: Baker Hughes

24 Canadian Oil Sands Three Major Oil Sands Deposits Canadian Oil Sands – Fast Facts . Around 170 billion of Oil Sands reserves . Potential for over 100 years of production . Mining – less than 200 feet deep: 20% of reserves Peace River Deposit Athabasca Deposit . Drilling – more than 200 feet deep: 80% of reserves . Canada: 21% of U.S. oil imports in 2009, 37% - in 2035F. About half of the Canadian Crude Oil imports come from Oil Sands. Cold Lake Deposit . By 2025, production from Canadian Oil Sands is expected to rise from about 1.4 million barrels per day to about 3.5 million barrels per day Calgary . Canadian Oil Sands represent more than a half of the world accessible oil reserves Source: Canadian Association of Petroleum Producers, EIA, CERA

Drilling – Steam Assisted Gravity Drainage (SAGD)

Most new oil sands projects are thought to be profitable at oil prices U.S.$65 – U.S.$75 per barrel

Source: Canadian Association of Petroleum Producers, Source: Canadian Centre for Energy Information World Energy Outlook 2010

25 Lower Break-even Costs Encouraging Drilling The industry has traditionally viewed U.S.$5 to U.S.$6 as the economic drilling price of gas, but a recent study Major Oil Plays Look Economic Above U.S. $70/bbl estimates surprisingly low break-even costs for the 70 major shales. 60

50 Lower break-even costs will allow higher rig count to 40

U.S.$ 30

$62 $58

continue despite lower natural gas price forecasts $57

$55 $55

$54

$51 $51 $46

20 $45

$42 $40 10 0 Many of the Shale Gas Plays are still Economic at

Gas above U.S.$4/Mcf

Niobrara

Spring

Williston)

Three Forks Three

Eagle Ford Eagle

Mississippian

(Condensate) Bakken (West Bakken

$6 Permian-Bone

(110 mboe)(110

Utica-910 mboe Utica-910

Permian-Avalon

Bakken (Sanish) Bakken

Permian-Wolfberry Permian-Spraberry $5 Permian-Wolfcamp Source: Morgan Stanley Research $4

U.S. Horizontal Drilling Activity

$3 1,200 60% Horizontal as %Rigs Total of

$5.9

$5.7

U.S.$

$5.2 $5.2

$4.8 $4.8

$2 $4.5 1,000 50%

$4.3

$4.2 $4.2

$4.0

$3.9

$3.8

$3.7 $3.7

$3.6

$3.5

$3.4

$3.3

$3.2

$3.1

$3.0 $3.0 $2.9 $1 $2.8 800 40%

$0 600 30%

400 20%

Johan

Pinedale Number of of Rigs Number

GoM Shelf GoM 200 10%

Hayensville

Huron Shale Huron

Raton (CBM) Raton

Barnett (Tier 1) (Tier Barnett 2) (Tier Barnett

Uinta (Shallow) Uinta 0 0%

Eagle Ford (Gas) Ford Eagle

Appalachian-CBM

Wattenberg (Core) Wattenberg

Woodford (Arcoma) Woodford

Marcellus Dry (core) Dry Marcellus

Fayetteville (3.4 Bcf) (3.4 Fayetteville Bcf) (2.8 Fayetteville

Marcellus Wet (core) Wet Marcellus

Piceance (Highlands) Piceance

Marcellus Dry (Tier 2) (Tier Dry Marcellus

Cana-Woodford (core) Cana-Woodford

Piceance Piceance (Valley-Core)

Deep Bossier (E.Texas) Bossier Deep

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

Granite Wash (Horizontal) Wash Granite Warwick (W.Tx Overthrust) (W.Tx Warwick % of Total Rigs Horizontal Vertical

Eagle Ford (Condensate Zone) (right hand scale) (left hand scale) (left hand scale) Source: Morgan Stanley Research Source: Baker Hughes

26 Investments

27 Investment Projects

Russia USA Construction of EAF at Tagmet R&D Center in Houston Investment: U.S.$ 452 mln Investment: U.S.$26 mln Project Launch: 2013 Timing: End 2012 The in-house R&D Center Capacity Increase: + 950 k tonnes will allow for significant strengthening of the Company’s research potential, further improvement of the product mix and quality as well as performing much of the connections testing and metallurgical inspection to ensure TMK pipes meet the highest quality standards

Construction of FQM Mill at Seversky Pipe Plant ULTRA Threading and Heat Treatment Investment: U.S.$ 274 mln Investment: U.S.$67 mln Investment: U.S.$111 mln Project Launch : 2013 Period: 2011-2016 Period: 2011-2016 Capacity Increase: + 600 k tonnes, including: Additional Capacity: 230 Additional Capacity: 280 - Line Pipe +280 k tonnes thousand tons thousand tons - OCTG +320 k tonnes

28 Appendix – Summary Financial Accounts

29 TMK Income Statement

U.S.$ mln 2010 2009 2008 2007 2006

Revenue 5,578 3,461 5,690 4,179 3,402

Cost of Sales (4,285) (2,905) (4,252) (2,891) (2,353)

Gross Profit 1,293 556 1,438 1,288 1,049

Selling and Distribution Expenses (403) (313) (295) (238) (180)

General and Administrative Expenses (232) (204) (317) (218) (167)

Advertising and Promotion Expenses (11) (5) (10) (5) (5)

Research and Development Expenses (13) (10) (15) (10) (7)

Other Operating Expenses, Net (35) (17) (45) (51) (24)

Foreign Exchange Gain / (Loss), Net 10 14 (100) 20 13

Other (12) (44) (85) 3 1

Finance Costs, Net (412) (404) (263) (90) (58)

Income / (Loss) before Tax 185 (427) 308 699 622

Income Tax (Expense) / Benefit (81) 103 (110) (193) (160)

Net Income / (Loss) 104 (324) 198 506 462

Source: Consolidated IFRS Financial Statements

30 TMK Statement of Financial Position

U.S.$ mln 31-Dec-10 31-Dec-09 31-Dec-08 31-Dec-07 31-Dec-06 ASSETS Cash and Bank Deposits 158 244 143 89 144 ST Investments 4 4 4 1 175 Accounts Receivable 720 580 761 541 286 Inventories 1,208 926 1,176 782 593 Prepayments 172 223 212 238 203 Assets Classified as Held for Sale 8 - - - - Total Current Assets 2,270 1,977 2,296 1,651 1,401 Total Non-current Assets 4,592 4,704 4,775 3,025 2,150 Total Assets 6,862 6,681 7,071 4,676 3,551 LIABILITIES AND EQUITY Accounts Payable 878 1,057 811 400 357 ST Debt 702 1,537 2,216 1,033 368 Dividends - - - 129 1 Other Liabilities 94 27 718 156 110 Total Current Liabilities 1,674 2,621 3,745 1,718 836 LT Debt 3,170 2,214 994 506 663 Deffered Tax Liability 300 272 371 279 260 Other Liabilities 81 55 51 66 39 Total Non-current Liabilities 3,551 2,541 1,416 851 962 Equity 1,637 1,519 1,910 2,107 1,753 Including Non-Controlling Interest 110 76 97 104 80 Total Liabilities and Equity 6,862 6,681 7,071 4,676 3,551 Net Debt 3,710 3,503 3,063 1,449 712 Source: Consolidated IFRS Financial Statements

31 TMK Cash Flow

U.S.$ mln 2010 2009 2008 2007 2006

Profit / (Loss) before Income Tax 185 (427) 308 699 622

Adjustments for: Depreciation and Amortisation 301 313 248 140 117 Net Interest Expense 412 406 263 90 58 Others 44 36 228 (9) (7) Working Capital Changes (527) 558 (81) (386) (188) Cash Generated from Operations 415 886 966 534 602

Income Tax Paid (29) (34) (227) (213) (173) Net Cash from Operating Activities 386 852 739 321 429

Capex (314) (395) (840) (662) (339) Acquisitions - (510) (1,185) (72) (1) Others 43 14 1 165 (182) Net Cash Used in Investing Activities (271) (891) (2,024) (569) (522)

Net Change in Borrowings 103 582 1,780 441 331 Others (289) (447) (443) (263) (149) Net Cash Used in Financing Activities (186) 135 1,337 178 182

Net Foreign Exchange Difference (15) 5 2 15 7 Cash and Cash Equivalents at January 1 244 143 89 144 48 Cash and Cash Equivalents at YE 158 244 143 89 144 Source: Consolidated IFRS Financial Statements

32 Appendix – TMK Global Assets

33 Russia - CIS - Europe Production

Seversky (incld. TMK-CPW) Capacity Volzhsky Product (tonns) Capacity Seamless OCTG 220,000 Product (tonnes) S.Line Pipe & Industrial 120,000 Seamless OCTG 270,000 Heat Treating 175,000 S.Line Pipe & Industrial 430,000 Welded Industrial & Line Pipe 600,000 Heat Treating 640,000 Steelmaking 950,000 Larger-diameter 1,100,000 Steelmaking 900,000 Sinarsky Capacity Product (tonnes) Seamless OCTG 378,000 Moscow S.Line Pipe & Industrial 222,000 TMK-Resita Heat Treating 300,000 Capacity Product (tons) TMK Kaztrubprom Steelmaking 450,000 Capacity Product (tonns) Seamless OCTG 60,000 TMK-Artrom Tagmet Capacity Product (tonnes) Capacity Product (tonnes) S.Line & Industrial 200,000 Seamless OCTG 430,000 S.Line pipe & Industrial 350,000 Heat Treating 385,000 Seamless Welded Industrial & Line pipe 500,000 Welded Steelmaking 600,000 Large-diameter Finishing Steel

34 TMK IPSCO – US Market Penetration

Camanche, IA Brookfield, OH Koppel, PA Product Capacity (tonnes) Product Capacity (tons) Product Capacity (tonnes) ERW OCTG line pipe, 249,000 ULTRA™ Premium 86,500 Heat Treating 73,000 standard pipe connections Billets 435,000

Threading 290,000

Bakken Geneva, NE Capacity (tonnes) Product Gammon ERW HSS 109,000 Marcellus Antrim Hilliard-Baxter- Catoosa, OK Mancos Product Capacity (tons) Heat Treating 91,000 Threading 118,000 ULTRA™ Premium 56,200 Niobrara New Albany connections Ambridge, PA Capacity (tonnes) Blytheville, AR Product Seamless OCTG line pipe, 296,000 Product Capacity (tonnes) Woodford standard pipe ERW OCTG, line pipe, 272,000 73,000 standard pipe Heat Treating Fayetteville Heat Treating 91,000 Barnett- Threading 181,000 Barnett Woodford Odessa, TX Haynesville Product Capacity (tons) ULTRA™ Premium 42,300 connections Eagle Ford

Baytown, TX Houston, TX Wilder, KY Product Capacity (tonnes) Product Capacity (tons) Product Capacity (tonnes) Heat Treating 113,000 ULTRA™ Premium 54,880 ERW OCTG, standard 517,000 Threading 152,000 connections pipe

Seamless Welded Major Oil Shale Plays Finishing Major Gas Shale Plays Steel

Source: TMK, as of September 2010, Energy Information Administration

35 Thank You

TMK Investor Relations 40/2a, Pokrovka Street, Moscow, 105062, Russia +7 (495) 775-7600 [email protected]