COMPANY PROFILE COMPANY PROFILE “Železara Smederevo”, Smederevo Primary Operations: Smederevo – Production History February, 2012

1 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryDisclaimer Operations: Smederevo – Production History

This presentation (“Presentation”) contains selected information pertaining to the operations of Železara Smederevo, d.o.o. (the “Company”). The sole purpose of this Presentation is to assist recipients in deciding whether they wish to proceed with a further investigation for a possible acquisition of the Company (“Transaction”). It is not intended to form the basis of any investment decision or any decision to purchase the Company. This Presentation does not constitute an offer or invitation for the sale or purchase of any securities or ownernship stakes.

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In furnishing this Presentation, the Company undertake no obligation to provide the recipient with access to additional information or to update this Presentation or additional information or correct any inaccuracies therein .

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2 2 2 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryAgenda Operations: Smederevo – Production History

• Key Investment Highlights • Železara Smederevo Asset Overview − Facilities and Capabilities − Raw Materials Supply − Customers and Export Routes

− Environmental Record − Workforce

• Financial Data

3 3 3 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo – Production History

1

1. Unique and High Quality Asset 2 2. Significant Synergy Opportunities 3 3. Large Customer Footprint

4.4 Attractive and Growing End Market Segments

5. Established Logistics and Infrastructure Network 5 6. First Class Safety, Environmental, Quality and Reliability Standards

6 7. - Attractive Operating Location

8.7 Ownership Structure

4 4 5 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

1. Unique and High Quality Asset

• Only flat rolled producer in Serbia and 2 nd largest flat rolled producer in Balkan region • Versatile hot strip mill with width up to 2,050 mm and thickness from 1.5 to 15 mm • Excess hot strip mill capacity • The only tin producer in the Balkan region

Shipments vs. EU27 Steel Consumption Indexed (2003 = 100) (Tonnes) 200 2,000 1,579 1,645 1,530 1,600 1,394 160 1,203 1,100 1,130 1,200 984 120

800 489 80

400 40

0 0 (1) 2003 2004 2005 2006 2007 2008 2009 2010 2011F Total Capital Investment $36 $49 $23 $73 $72 $16 $27 $70 ($MM) Indexed EU27 Steel Consumption

Note 1. All 2011F data reflects actual data through September 30, 2011 and forecasts for last quarter

5 5 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

2. Significant Synergy Opportunities • Potential to lower raw material costs through alternative supply arrangements for:

− Coke

− Pellets − Sinter Ore

− Concentrate • Ability to supply own or source slabs through alternative supply arrangements • Opportunities to leverage the new owner’s existing customer relationships and sales channels to sell Železara Smederevo ’s steel • Platform for potential high-return growth investments • Substantial tax attributes available to offset approximately $200MM of future income taxes

Estimated Input Usage Tonnes Per One Tonne of Crude Steel Produced Pre-PCI Post-PCI Name Per Tonne Amount Per Tonne Amount Coke 0.5445 0.4866 Pulverized Coal Injection (PCI) 0.0000 0.1206 Pellets 1.0794 1.0794 Sinter Ore (for Sinter) 0.4091 0.4091 Concentrate (for Sinter) 0.1195 0.1195 6 6 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

3. Large Customer Footprint

• Established customer base in Balkan region and into Western and Central Europe • 400+ customers with the top 10 comprising 35% of 2010 tonnes shipped

− No single customer accounts for more than 7% of volume • Železara Smederevo is focused on developing longer term customer relationships

Product Mix Contract vs. Spot End Market Mix (%) (%) (%) 100 8 2 100 100 11 10 12 9 12 2 8 80 13 14 80 47 80

60 6 14 60 60 62 51

40 40 90 40 64 58 53 20 20 20 25 29 0 0 0 2006 2011F 2006 2011 YTD (1) 2006 2011 YTD (1)

Hot Rolled Pickled Cold Rolled Spot Contract Construction SSC (2)

Tin Other Auto and Appliance Packaging

Notes 1. All 2011 YTD data as of September 30, 2011 2. Includes Service Centers, Stockist / Distributors, Traders 7 7 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

4. Attractive and Growing End Market Segments

• Proven capability to produce high strength grades for pipe industry including X70 • Established cold rolled performance to appliance and automotive customers in the region • Automotive and appliance growth in Serbia • Ability to produce chequered plate (floor plate) material for construction applications • Surrounding geographies still in beginning phase of steel intensity curve

Key End Market Segments World Steel Intensity Curve 2011 YTD Shipment Tonnes Steel Consumption (Kg Per Capita) 1,200 Other 4% (1)

White Goods 4% Construction 3% 1,000 South Korea

Automotive 4% Service Centers 800 Metallurgy 5% 27% 13% 600 Japan 19% 21% Germany Packaging Slovenia 400 CIS EU B&H Serbia U.K. USA Pipe and Tube Stockist / Distributors 200 BulgariaCroatia Romania 0 Macedonia 0 10,000 20,000 30,000 40,000 50,000

GDP Per Capita ($) Note Source: WSA, IMF 8 1. Includes Machinery, Metal Goods, Trader and Transport categories 8 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

5. Established Logistics and Infrastructure Network • ports provide access for barge receipts of raw materials and steel shipments

− Port 1

• One Gantz crane for receiving raw materials

• One crane used for shipping

− Port 2

• Two Gantz cranes

• Access to rail and transloading facilities

− Rail access from Port 1 to Smederevo facility

− In 2011, Železara Smederevo donated land necessary for the government to complete rail access from Port 2 to Smederevo facility

• If not completed in 5 years, land will be returned to Železara Smederevo

• Established network of logistics partners (truck, rail)

9 9 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

6. First Class Safety, Environmental, Quality and Reliability Standards

• Well trained and established local work force • ISO and TS certified • Excellent safety record and training program with zero days away from work injuries in 2010 • ~$90MM spent on environmental projects from 2007 - 2011 YTD (including construction of a new modern landfill)

• Established preventative maintenance procedures focused on facility reliability • Excellent working relationship with relevant authorities Historical Safety Track Record Number of Incidents With Injury 600 572

500

400 356 Zero days away from 323 300 work injuries in 2010 200 117 100 62 59 39 26 30 17 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD

10 10 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

7. Serbia Attractive Operating Location

• Central location in Balkan region with established trading routes facilitating access to Europe, Russia and the Middle East • Second lowest corporate tax rate in Europe (10%) • Free trade agreements with Turkey and Russia for access to developing markets, as well as agreements with EU and USA • In October 2011, the European Commission recommended Serbia be given EU candidate status • Educated workforce: average 14 years education and literacy rate exceeding 96%

Germany Slovakia France Austria Switzerland Hungary Romania Slovenia Croatia

Bosnia and Serbia Herzegovina

Italy Bulgaria Macedonia

Albania

Greece Turkey

10 th Pan-European Corridor 7th Pan-European Corridor (Danube River) 11 11 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryInvestment Operations: Highlights Smederevo (cont.) – Production History

8. Ownership Structure

• Železara Smederevo is organized as a Limited Liability Company

• 100% of ownership stake is in possesion by the Republic of Serbia, as of 31st of January 2012.

• Prior to acquisition of the company by the Republic of Serbia, Železara Smederevo was a subsidiary of U.S. Steel Corporation.

12 12 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryAssets: OverviewOperations: Smederevo – Production History

Železara Smederevo at a Glance

• Železara Smederevo products include hot and cold rolled products and tin plate

− Annual crude steel production capability of 2.2MM tonnes

− Annual hot strip mill rolling capacity of 2.4MM tonnes

− 2010 shipments of 1.4MM tonnes

− Peak crude steel production of 1.7MM tonnes (2006) − 83% of products exported to 35 countries worldwide • Železara Smederevo employs ~5,400 people • Total 2010 revenues of approximately $1Bn

Sales by Product 2011F Shipment Tonnes Tin Cold Rolled Other 2% 12% 14%

14% Pickled

58%

Hot Rolled

13 13 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryAssets - Operations: Location Smederevo – Production History

Location of Železara Smederevo Facilities

Main Facility

Hungary Scale (miles) • Sintering lines 0 25 50 75 100 • Two blast furnaces with new pulverized coal injection

Vojvodina facility • Steel shop • Two slab casters Croatia Romania • Hot strip mill • Sheet cold reduction mill Tin Mill Pančevo • Shearing and slitting lines • Tin coating line • Annealing and tempering • Two shearing lines units Smederevo Šabac

Bosnia and Kučevo Herzegovina Bor

Two Danube River Ports • Used for raw material Užice Limestone Mine receipts and steel shipments • Metallurgical lime production NIš • Quartz and limestone quarry

Montenegro

Kosovo Bulgaria

Albania Macedonia

Tin Mill Main Facility and River Ports Limestone Mine 14 14 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryFacilities Operations: Smederevo – Production History

15 15 COMPANY PROFILE ŽELEZARA SMEDEREVO Primary Operations: Smederevo – ProductionKey Equipment History

Key Equipment

Smederevo Primary Operations Key Equipment

Capacity Technical Machine (MM t) Make Specifications Comments

Sintering Lines (3) 1.3 • Dwight-Lloyd • Sinter plant main stack scrubber upgraded in 2008 - 2009 • UZKM, USSR ($22MM)

Blast Furnace 1 0.9 • USSR Metallurgical • Relined in 2005 ($27MM) Institute • Pulverized coal injection completed in 2011 ($50MM) • Woodings pneumatic • No relining required until 2020 drill machine Blast Furnace 2 1.2 • USSR Metallurgical • Relined in 2007 ($41MM) Institute • Pulverized coal injection completed in 2011 ($50MM) • Woodings hydraulic • No relining required until 2020 mud gun Steelmaking Vessels 2.2 • Juzno Uralski Masinski • Volume of each • K1: Upgraded in 2006, last reline in 10/2011 K1 Zavod (JUMZ), USSR vessel after reline • K2: Last reline in 9/2008 is 73.8m 3 K2 • K3: Upgraded in 2004, last reline in 9/2010 K3

Slab Casters (2) 2.2 • JUMZ • 2,080 mm casters • Adjustable width mold upgraded in 2005 (1,050 - 2,080 mm) by VAI, Austria

16 16 COMPANY PROFILE ŽELEZARA SMEDEREVO Primary Operations: Smederevo – Production History

Production History

Raw Steel Production (000s of Tonnes)

1,800 1,684 1,656

1,600 1,493

1,400 1,254 1,308 1,212 1,200 1,054

1,000

800

600

400

200

0 2005 2006 2007 2008 2009 2010 2011F

17 17 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryHot Rolled Operations: Products: Smederevo Smederevo – – Production Key Equipment History

Key Equipment

Smederevo Hot Rolled Products Key Equipment

Machine Capacity (MM t) Make Technical Specifications Comments

6 Stand Hot Strip Mill 2.40 • SMS-Wean United • 2 reheat furnaces (NG/BFG)=250 TPH capacity • Coil Dimensions: thickness 1.5 - 15.0 mm, width 760 - 2,050 mm, 35t max coil weight

Pickle Line 1 0.30 • Schloemann-Siemag • Coil Dimensions: thickness • Upgraded and restarted 1.5 - 6.0 mm, width 650 - 1,500 mm, 18t in 2008 ($16MM) max coil weight • Maximum speed: 125m/min

Pickle Line 2 0.75 • Davy McKee • Coil Dimensions: thickness • Upgraded 2005 - 2006 1.5 - 6.0 mm, width 650 - 1,500 mm, 35t • Tension leveller installed in max coil weight 2006 • Maximum speed: 170m/min

Hot Roll 0.45 • Nippon Steel Shearing Line

Hot Roll Slitting Line 0.17 • Nippon Steel

18 18 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryHot Rolled Operations: Products: Smederevo Smederevo – – Production Production History History

Production History

Hot Strip Mill Production (000s of Tonnes)

1,800 1,703 1,685 1,642 1,600 1,462

1,400 1,289 1,243

1,200 1,127

1,000

800

600

400

200

0 2005 2006 2007 2008 2009 2010 2011F

19 19 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryHot Rolled Operations: Products: Smederevo Smederevo – – Production Products History

Products

• Železara Smederevo makes structural steels and low-carbon and fine grained micro-alloyed steels

Hot Rolled Products 2011F Sales Type Thickness (mm) Width (mm) Weight (t) (000s Tonnes)

Hot Rolled Coils 1.5- 15.0 720 - 2,050 6 - 35 511 (1)

Hot Rolled Sheet 3.0- 15.0 720 - 2,050 max 15 137 (1)

Hot Rolled Pickled Coils 1.5 - 6.0 700 - 1,500 20 142

Hot Rolled Pickled Sheets 1.5- 6.0 700 - 1,500 2 – 6 9

Hot Rolled Slit Coils 1.5- 8.0 52 - 699 max 15 6

Hot Rolled Pickled Slit Strips 1.5- 6.0 52 - 699 max 6 3

Note 20 1. Includes chequered material 20 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryCold Rolled Operations: Products: Smederevo Smederevo – Production– Key Equipment History

Key Equipment

Smederevo Cold Rolled Products Key Equipment

Capacity Machine (MM t) Make Technical Specifications Comments

• Coil Dimensions: thickness 0.17 - 3.00 mm, • Upgraded in 5 Stand Cold Reduction Mill 0.75 • Davy McKee width 650 - 1,500 mm, 35t max coil weight 2004 ($6MM) • Maximum speed: 2,000 m/min Box Annealing Shop 1 0.60 • Salem (Shop 1) • 40 bases in shop, 60t per base Shop 2 • Davy McKee (Shop 2) • 40 bases in shop, 140t per base • Coil Dimensions: thickness 0.15 - 0.50 mm, Continuous Annealing Line 0.24 • Davy McKee width 600 - 1,050 mm, 18t max coil weight

• Coil Dimensions: thickness 0.60 - 3.00 mm, 1 Stand Temper Mill 0.20 • Ernst Talman Werke width 650 - 1,500 mm, 27t max coil weight • Maximum speed: 600 m/min

• Coil Dimensions: thickness 0.14 - 1.50 mm, • Upgraded in 2 Stand Double Cold Reduction Mill 0.40 • Davy McKee width 650 - 1,350 mm, 35t max coil weight 2005 ($4MM) • Maximum speed: 2,000 m/min Cold Rolled Shearing Lines Line 1 0.20 • Schloemann-Siemag (Line 1) Line 2 • Davy (Line 2) Slitting Line 0.20 • Davy McKee

Cleaning Line 0.24 • Davy McKee 21 21 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryCold Rolled Operations: Products: Smederevo Smederevo – Production– Production History History

Production History

5 Stand Tandem Mill Production (000s of Tonnes) 600

500 474 489 475

408 400 383 356

300 260

200

100

0 2005 2006 2007 2008 2009 2010 2011F

22 22 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryCold Rolled Operations: Products: Smederevo Smederevo – Production– Products History

Products

Cold Rolled Products

2011F Sales Type Thickness (MM) Width (MM) (000s Tonnes) Cold Rolled Strip 0.35 - 3.00 700 - 1,500 115

Cold Rolled Sheet Products 0.35 - 3.00 700 - 1,500 27

Cold Rolled Slitted Products 0.35 - 3.00 200 - 700 10

Full Hard Products 0.16 - 3.00 700 - 1,500 5

23 23 28 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryTin Mill: Operations:Šabac – Key Smederevo Equipment – Production History

Key Equipment

Šabac Tin Mill Key Equipment

Machine Capacity (MM t) Make Technical Specifications Comments Electrolytic Tinning 0.20 • Davy McKee • Coil Dimensions: thickness • Tension leveler installed in 2004 ($2MM), side Line 0.14 - 0.49 mm, width 650 - trimmer installed in 2007 1,000 mm, 18t max coil weight

Shearing Line 1 0.05 • Davy McKee • Product range: thickness • Line not used frequently • Hallden 0.2 - 0.5 mm, width (Shears) 650 - 1,000 mm, 18t max coil weight

Shearing Line 2 0.05 • Davy McKee • Product range: thickness 0.2 • Line upgraded - 0.5 mm, width 650 - 1,000 • Hallden − Processor changed from original to PLC in (Shears) mm, 18t max coil weight 2006 − Shears system changed to direct drive and shears changed to ZDAS in 2008

24 24 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryTin Mill: Operations:Šabac – Production Smederevo History – Production History

Production History

Electrolytic Tinning Line Production (000s of Tonnes) 250

202 201 200 174 178 168

146 145 150

100

50

0 2005 2006 2007 2008 2009 2010 2011F

25 25 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryTin Mill: Operations:Šabac – Products Smederevo – Production History

Products

• Železara Smederevo makes continuously or batch annealed and skin passed (single reduced) or double reduced tin plate, in form of either coils or sheets

Tin Mill Products 2011F Sales Type Thickness (mm) Width (mm) Weight (t) (000s Tonnes)

Double Reduced Coils 0.14- 0.17 720 - 960 3.0- 11.8 17

Double Reduced Sheets 0.14- 0.17 720 - 960 0.5- 2.7 9

Single Reduced Coils 0.18- 0.40 720 - 960 3.0- 11.8 76

Single Reduced Sheets 0.18- 0.40 720 - 960 0.5- 2.7 31

26 26 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryDanube RiverOperations: Ports Smederevo – Production History

• Danube ports provide access for barge receipts of raw materials and steel shipments

− Port 1 • One Gantz crane for receiving raw materials − Capacity of 1,700 tonnes of coke / day − Throughput of 450,000 tonnes / year

• One 40 tonne crane used for shipping finished products − Throughput of 480,000 tonnes / year • 99 year lease

− Port 2 • Two Gantz cranes with − Capacity of 260,000 tonnes / month of raw material − Throughput of 2.2MM tonnes / year • Owned by Železara Smederevo

• All types of barges able to dock at Ports

• Access to rail and transloading facilities − Rail access from Port 1 to Smederevo facility − In 2011, Železara Smederevo donated land necessary for government to complete rail access from Port 2 to Smederevo facility

• If not completed in 5 years, land will be returned to Železara Smederevo 27 27 COMPANY PROFILE ŽELEZARARaw Materials Supply SMEDEREVO PrimaryRaw Materials Operations: Supply Smederevo – Production History

Raw Material Entry Routes Summary

Russia Coke Iron Ore • Delivered primarily by train • Delivered by barges on with some by barge the Danube to Denmark • Lump coke delivered from Smederevo Port Bosnia, Hungary, Poland UK Belarus • Sinter ores, iron ore and Ukraine The Netherlands pellets and concentrate sourced from Ukraine

Poland Belgium Germany Ukraine

Czech Republic

Limestone France Slovakia • Delivered by train from Železara Smederevo’s facility Switzerland Austria Hungary in Kucevo Slovenia Romania Croatia Port of Constanta Serbia • Primary Port for Bulgaria seaborne receipts of raw Scrap Montenegro materials • Delivered by truck and Italy Macedonia • From Port, raw materials train from sources within Albania Turkey are transloaded into Serbia barges along Danube for delivery to plant

Illustrative Coke Entry Routes Illustrative Iron Ore Entry Routes Danube River 28 28 COMPANY PROFILE ŽELEZARAEnd Market Segments for Panther Products SMEDEREVO PrimaryEnd Market Operations: Segments Smederevo for Železara – ProductionSmederevо’s History Products

Key Market Segments and Top Customers

Key End Market Segments Top 10 Customers 2011YTD Shipment Tonnes 2010 Shipments 5% 4% 4% 4% 13% 3% % of Customer Shipments Type Region 27% A 6.3 Converter South-Eastern Europe 19% B 5.6 Service Center Central Europe 21% South-Western Service Centers Packaging White Goods C 4.1 Service Center Stockist / Distributors Metallurgy Other (1) Europe Pipe and Tube Automotive Construction D 3.7 Pipe and Tube Western Europe Sales by Type E 2.9 Service Center Eastern Europe (%) F 2.7 Pipe and Tube Western Europe 100 80 Central and South- 53 G 2.7 Packaging 60 86 86 77 Western Europe 40 H 2.7 Service Center Eastern Europe 20 47 14 14 23 0 I 2.5 Service Center South-Eastern Europe 2008 2009 2010 2011YTD Contract Tonnes 215 149 314 429 J 2.1 Pipe and Tube Western Europe (000s) Total 35.3 Contract Spot

Note 1. Includes Machinery, Metal goods, Trader and Transport categories 29 29 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryEnd Market Operations: Segments Smederevo for Železara – ProductionSmederevо’s History Products (cont.)

Panther Key Competitor Facilities

Hungary Dunaferr IUD Group (Dunaujvaros) Romania (Cap 1.6MM t) Slovenian Steel Group ArcelorMittal Acroni (Jesenice) (Galati) (Cap 0.4MM t) (Cap 5.5MM t) Slovenia Croatia Železara Erdemir Smederevo Železara Smederevo (Targoviste) (Sabac) (Smederevo) (Cap 0.1MM t) Bosnia (Cap 0.2MM t) (Cap 2.2MM t) Herzegovina Serbia

Interlemind () Bulgaria (Cap .03MM t) Stomana Montenegro (Pernik) (Cap 0.4MM t)

Makstil () ArcelorMittal (Skopje) (Cap 0.6MM t) (Cap 1.0MM t) Macedonia

30 30 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryEnd Market Operations: Segments Smederevo for Železara – ProductionSmederevо’s History Products (cont.)

Primary Steel Export Routes Summary

Russia Germany, Austria Poland, Czech Republic, Benelux and Hungary Denmark Slovakia and Hungary • Danube by upstream barge • Railways and truck

UK Belarus

The Netherlands Poland Balkan Region Germany Belgium • Primarily sold ex works Ukraine (via trucks) and partially Czech Republic Romania and Bulgaria France delivered by rail Slovakia • Danube by downstream barge Austria Hungary Switzerland Romania Italy, Turkey, Greece and Slovenia Croatia North Africa • Railways and truck to Bosnia and Herzegovina Serbia ports of Rijeka, Croatia Bulgaria and Koper, Slovenia Italy Montenegro Macedonia Turkey, Asia, and Overseas Albania • Barge to port of Turkey Constanta, Romania Italy, UK, Portugal and Greece Spain

• Railway to port of Bar, Montenegro

Danube River 31 31 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryEnvironmental Operations: Smederevo – Production History

Overview

• Clear and enforced environmental policy • Since 2007, Železara Smederevo has spent ~$90MM on environmental projects • Certified for ISO (ISO 14011 in 12/2000 and ISO 9001 in 9/2003), TS (TS 169494 in 12/2008) and HACCP (Hazard Analysis and Critical Control Point for Sabac in 4/2005) • Compliant with air discharge emission standards

Environmental Expenditure 2007 - 2011YTD ($MM)

Sinter Plant Main Stack Scrubber $27.0

Steel Shop Secondary Dedusting 23.4

Landfill 23.0 Blast Furnace Sludge Filter Press 3.9

Steel Shop Filter Press 3.3

Air Compressor & Oxygen Lance Cooling System 2.3 Road Improvements 1.7

Other 2.6 Total $87.2

32 32 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryEnvironmental Operations: (cont.) Smederevo – Production History

Waste Water Management

• Železara Smederevo has since obtained the following permits

− February 2008: obtained water permit for intake of industrial water, canal Danube • Valid until September 2014

− July 2009: obtained permit for sanitary waste water treatment plant

• Valid until September 2013

− November 2009: obtained water permit for facility for potable water

• Valid until September 2014

• Železara Snederevo committed to improve waste water quality and reduce amount of discharged water • In working towards obtaining remaining water discharge permit, the following steps have been taken to reduce total average discharge to 2,000m3/h from 3,500m3/h

− Construction of cooling water recirculation for Air Compressor Station - 1,050 m3/h

− Reheat Furnace door cooling water - 65 m3/h

− Steel Shop - Cooling water for lances - 450 m3/h − Pump Station 225 - redirection Sinter Plant Scrubber water - 110 m3/h

− CRM - Coils cooling water - 15 m3/h

• Železara Smederevo has an agreement to operate the Smederevo facility without a discharge permit until 12/6/2011

− Steps are being taken to extend the agreement 33 33 COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryHuman Resources Operations: Smederevo – Production History

Workforce Overview

Labor Unions in Železara Smederevo

• Approximately 85% of hourly employees are Headcount by Function members in one of six registered unions in the company

− Three Unions are “Representative” (i.e., more than 15% of Administration (1) 685 employees are their members)

Commercial (2) 147 • “Autonomous” Union - 2,240 members

Maintenance 606 • “Independent” Union - 1,044 members

• “ASNS USS” - 954 members Operations 3,869 • All “representative” Unions participate in collective Quality 109 negotiations Total 5,416 • Other three unions are small

• Approximately 950 employees are not union members

Notes 1. Includes Accounting and Finance, Legal, Human Resources, IT, Public Relations, Catering, Procurement, General Director’s Office 2. Includes Sales and Customer Service Representatives (including Technical Service Representatives), Business Planning and 34 34 Transportation COMPANY PROFILE ŽELEZARA SMEDEREVO PrimaryFinancial Operations: Summary Smederevo – Production History

Historical Financial Performance

Shipments Sales (000s Tonnes) ($MM) 1,750 1,645 1,750 1,579 1,573 1,530 1,500 1,500 1,394

1,253 1,250 1,250 1,100 1,130 1,005 1,020 1,039 1,000 1,000

750 750 709

500 500

250 250

0 0 2006 2007 2008 2009 2010 2011F (1) 2006 2007 2008 2009 2010 2011F (1)

Note 1. All 2011F data reflects actual data through 9/30/11 and forecasts for last quarter 35 35 COMPANY PROFILE ŽELEZARA SMEDEREVO FinancialPrimary Summary Operations: (cont.) Smederevo – Production History

Historical Financial Performance Historical Financial Performance

Total Cash Cost/Tonne (1) EBITDA ($/Tonne) ($MM) 1,200 150

1,061

1,000 975 82 75

825 38 808 29 800 738 0 618 600

(75) 400

(130) (150) 200 (160) (180)

0 (225) 2006 2007 2008 2009 2010 2011F 2006 2007 2008 2009 2010 2011F

Note 1. Total costs (cost of sales, SG&A, income from investees, net gain/loss on disposal of assets and other income/loss) less depreciation divided by total shipments 36 36 57 COMPANY PROFILE ŽELEZARA SMEDEREVO FinancialPrimary Summary Operations: – Income Smederevo Statement – Production History

Historical Financial Performance

Income Statement (000 USD) 2010 2011

Operating revenues 1,035,666 995,089 Ravenues from sale of goods and services 1,018,959 1,000,836 Revenues from activated effects 0.5 - Increase in value of work in progress and finished goods 100,543 183,901 Decrease in value of work in progress and finished goods (84,414) (191,358) Other operating revenues 577 1,710 Operating expenses (1,159,062) (1,145,034) Cost of goods sold (8,364) (11) Cost of material (936,021) (914,619) Salaries and other staff costs (88,130) (100,133) Other operating expenses (126,547) (130,271) EBITDA (123,397) (149,945) EBITDA margin n.m n.m Depreciation (18,393) (21,013) EBIT (141,790) (170,957) EBIT margin n.m n.m Financial revenues 100,156 162,054 Financial expenses (142,766) (181,167) Other revenues 40,088 41,813 Other expenses (48,371) (64,988) Profit (Loss) before tax (192,682) (213,245) Income tax - - Net profit (Loss) (192,682) (213,245) Net margin n.m n.m 37 37 COMPANY PROFILE ŽELEZARA SMEDEREVO FinancialPrimary Summary Operations: – Balance Smederevo Sheet – Production History

Summary Balance Sheet

Balance Sheet (000 USD) 2010 2011 ASSETS Intangible assets 9,326 9,113 Tangible assets 177,517 208,580 Financial assets 292 621 Total fixed assets 187,135 218,314 Inventories 188,880 120,334 Comments Receivables 173,643 111,928 Financial assets 0 0 • 86% of receivables current and 6% up to 30 days overdue Cash 42,580 12,977 Total current assets 405,103 245,239 • Average receivables term of approximately 52 days Accrued income 14,833 8,344 • Bad debt reserve of 6% of receivables Loss above the equity value 241,892 430,541 • Average external payables term of approximately 33 days TOTAL ASSETS 848,962 902,438 • All but $1MM of intercompany payables owed to U.S. Steel EQUITY & LIABILITIES Kosice for raw materials (tin anodes, slabs, coke) Share capital 144,637 141,801 Subscribed unpaid capital 0 0 Rev. reserves 0 0 Reserves 5,850 5,736 Retained profit/loss 0 0 Current year profit (150,488) (147,536) Own repurched shares 0 0 Total shareholders equity 0 0 Long term reservations 10,982 13,083 Long term liabilities 561,238 769,167 Current liabilities 272,928 116,880 Deferred income 3,813 3,308 38 TOTAL EQUITY & LIABILITIES 848,962 902,438 38