CORPORATE PRESENTATION

1 COMPANY PROFILE

OMK is a high technology integrated manufacturer of steel, rolled products, pipes, pipeline valves and fittings, railway wheels and automotive springs.

We make products that allow our customers to transport energy, cargo and people safely and efficiently. OMK’s strategic partners are the leading Russian and international oil and gas, transportation and engineering companies. 30 OMK’s products are shipped to 30 countries worldwide. COUNTRIES Russia is our key market. WORLDWIDE

2 OMK IS A LEADING PRODUCER OF STEEL AND PIPES

OMK’S SHARE OMK CONTRIBUTES OF THE RUSSIAN MARKET IN 2014 TO THE DEVELOPMENT

SIGNIFICANT OF THE RUSSIAN ECONOMY 1ST PLACE 2ND PLACE MARKET SHARE We are the largest supplier of pipes for the major gas pipelines and we produce more than half of the railway LARGE DIAMETER PIPES PIPELINE PIPES IN GENERAL VALVES wheels and almost two-thirds of the automotive springs on the Russian market.

We are ranked first in Europe by volume in large diameter pipes, railway wheels and automotive springs produced. 32% 17% 12% RAILWAY CASING OIL AND GAS CLIENTS WHEELS PIPES AND SPECIAL PIPES

54% 23% 15% AUTOMOTIVE PIPELINE SPRINGS FITTINGS

68% 20%

3 OMK GEOGRAPHY

OUR PLANTS ARE EXAMPLES RUSSIA OF DYNAMIC Moscow DEVELOPMENT Vyksa Vyksa Steel Works Casting and Rolling Complex VYKSA STEEL WORKS (Nizhny Novgorod Region, an OMK company since 1999) Almetyevsk Almetyevsk Pipe Plant CASTING AND ROLLING COMPLEX (Nizhny Novgorod Region, built by OMK in 2008) Chusovoy Chusovoy Steel Plant Blagoveshchensk Blagoveshchensk Valves Plant BLAGOVESHCHENSK VALVES PLANT (Republic of Bashkortostan, an OMK company since 2013) Chelyabinsk Trubodetal TRUBODETAL PLANT (Chelyabinsk, an OMK company since 2005)

ALMETYEVSK PIPE PLANT (Republic of Tatarstan, an OMK company since 2002)

CHUSOVOY STEEL PLANT (Permsky Kray, an OMK company since 2003) NUMBER OMK TUBE (Houston, USA, built by OMK in 2013) OF OUR EMPLOYEES USA >27 000 Houston OMK Tube

4 TRUSTED SUPPLIER FOR PIPELINE PROJECTS

OMK PIPES Nord Stream Central Asia — China Sakhalin — Khabarovsk — Vladivostok 000 000 000 ARE USED TONS TONS TONS IN ALL MAJOR OF OF OF PIPELINES 460 PIPES 385PIPES 355PIPES Vyborg ——————— Greifswald Gedaim———————Horgos Sakhalin—— Khabarovsk—— Vladivostok

OUR PRODUCT Bovanenkovo — Ukhta Eastern Siberia — Pacific Ocean Baltic Pipeline System 000 000 000 SHARE IN MANY TONS TONS TONS PROJECTS OF OF OF EXCEEDS 300 PIPES 230 PIPES 85 PIPES A THIRD Bovanenkovo ———————Ukhta Tayshet ——————— Kozmino Kirishi ———————Primorsk OF THE Dzhubga — Lazarevskoye — Sochi Power of Siberia* Turkish stream** 000 000 OVERALL TONS TONS KMS VOLUME OF OF OF 22 PIPES 30 PIPES 600 PIPES Dzhubga-1 AGDS——— Adler AGDS Kovykta and Chayanda fields — — Khabarovsk Anapa — — — — — — — Turkey

* Production and supplies still underway. ** Under development

5 OPERATIONAL RESULTS

LARGE DIAMETER RAILWAY OIL AND GAS CRC PRODUCTS PIPES WHEELS PIPES AND TUBES* (COILS AND SHEETS) (THOUSAND TONS) (THOUSAND PIECES) (THOUSAND TONS) (THOUSAND TONS)

1058 873 1029 450 800 661 797 920 2014 2014 2014 2014 2013 2013 2013 2013

* Production facilities of the OGP Division, including D508 mm and 530 mm pipes, VSW Pipe Shop 3.

6 OPERATIONAL RESULTS

PIPELINE FITTINGS PIPELINE VALVES AUTOMOTIVE SPRINGS (THOUSAND TONS) (THOUSAND TONS) (THOUSAND TONS)

55 19 59 6,4 13 7 2014 2014 2014 2013 2013 2013

7 FINANCIAL RESULTS

TOTAL REVENUE REVENUE EBITDA NET PROFIT/LOSS PERCENTAGE SHARE BILLION RUBLES BILLION RUBLES BILLION RUBLES

129

105 25 3 -13 40 2014 2014 2014 4 2013 20,5 2013 3 2013 5 6

LARGE DIAMETER PIPES DIVISION APP DIVISION

12 OIL AND GAS PIPES DIVISION CHUSOVOY DIVISION

PIPELINE FITTINGS AND VALVES DIVISION NORTH AMERICA DIVISION 28 RAILWAY WHEELS DIVISION OTHER

8 OMK DIVISIONAL STRUCTURE

WE SEEK TO BECOME DIVISIONS PLANTS PRODUCTION THE MOST EFFICIENT Large diameter pipes LARGE DIAMETER PIPES DIVISION VYKSA STEEL WORKS COMPANY IN THE Hot rolled wide sheets RUSSIAN STEEL Oil and gas pipes VYKSA STEEL WORKS, Water supply pipes. Casing pipes INDUSTRY OIL AND GAS PIPES DIVISION CASTING AND ROLLING COMPLEX Shaped pipes Hot rolled sheets

Oil and gas pipes APP DIVISION ALMETYEVSK PIPE PLANT Water supply pipes Shaped pipes

TRUBODETAL, Pipeline fittings BLAGOVESHCHENSK VALVES PLANT* Pipeline valves

RAILWAY WHEELS DIVISION VYKSA STEEL WORKS Railway wheels

Springs CHUSOVOY DIVISION CHUSOVOY STEEL PLANT Iron sections

OCTG OMK’s current production structure NORTH AMERICA DIVISION OMK TUBE Plain end pipes

* Directors of Trubodetal and Blagoveshchensk Valves Plant report directly to the OMK President.

9 STRATEGY

OMK’S GOAL IS EFFICIENT STRATEGIC TO BECOME IN-HOUSE AREAS

A SUPPLIER PRODUCTION INCREASING OPERATING EFFICIENCY

OF INTEGRATED RETAINING POSITION AND INCOME SOLUTIONS FOR IN TRADITIONAL MARKET SECTORS THE OIL AND GAS EXPANDING PRODUCT RANGE TO NEW PRODUCT SECTORS INDUSTRY PACKAGED+ PROPOSAL

EFFICIENT= BUSINESS MODEL

10 INVESTMENTS

TOTAL INVESTMENTS INVESTMENTS BILLION RUBLES IN 2002-2014 BILLION RUBLES 11,5 180 16,1 MAJOR INVESTMENT PROJECTS 2014 ULTRAMODERN LDP FABRICATION LINES (2005) 2013

INTEGRATED CASTING AND ROLLING COMPLEX (2005-2008)

THICK PLATE MILL-5000 (2008-2011) R&D COSTS MODERNISATION OF THE MDP PRODUCTION FACILITIES MILLION RUBLES RECONSTRUCTION OF THE VSW RAILWAY WHEEL FACILITY MODERNISATION OF THE FITTINGS PRODUCTION FACILITIES 119* DEVELOPMENT OF THE PIPELINE VALVES PRODUCTION FACILITIES

CONSTRUCTION OF RUSSIA’S FIRST HIGH-SPEED RAILWAY 128,8 2014 WHEEL FABRICATION LINE 2013

* In 2014, R&D costs declined due to the scheduled increase in the share of research and development carried out by OMK’s in-house engineering and technical centres. This was facilitated by the creation of the Centre of Research Laboratories at the Vyksa production site, which has the most advanced equipment. 11 PROCUREMENT

Operational procurement of goods, work Supplier’s self sign-up in the corporate SRM system: and services are the responsibility of our plants’ WE OFFER OUR anyone can become our supplier! procurement departments. OMK’s procurement SUPPLIERS THE E-procurements in the SRM system. Every supplier department performs methodology functions, who signs up (and is approved) is automatically control and development. FOLLOWING MODERN invited to take part in procurement procedures. PROCUREMENT TOOLS We make the most expensive procurements OUR PROCUREMENT via tender. PRINCIPLES ARE AS FOLLOW:

TRANSPARENCY COOPERATION KEY NUMBERS COMPETENCE COMPETITIVENESS RESPONSIBILITY OVERALL PROCUREMENT COST IN PARTNERSHIP WITH OUR SUPPLIERS, >90 BILLION RUBLES PER YEAR WE ADHERE TO THE FOLLOWING PRINCIPLES: OPENNESS FAIRNESS >6000 >50 000 DEVELOPMENT SUPPLIERS ITEMS PROCURED

12 FULL IMPORT SUBSTITUTION OF LARGE DIAMETER PIPES

OMK contributed significantly to the substitution of imports of large diameter pipes. TODAY’S RUSSIAN OIL AND GAS In 2005, the company built the country’s first “Russian Size” LDP facility. COMPANIES USE ALMOST NO IMPORTED LDP’S SYSTEMATIC IMPLEMENTATION OF LDP IMPORT SUBSTITUTION IN RUSSIA 37% 2005 2011 2013 2015 31% OMK has built the coun- We created our own Long-term contract We began to apply our try’s first “Russian size” production of pipe sheets. for the supply of Russian- own, in-house developed LDP production line. Launch of the Heavy Plate made slabs was signed corrosion-resistant Production of straight line Mill-5000 at VSW in order to provide stable coatings to pipes. 16% seam welded pipes with to provide LDP lines quality and production 15% diameters up to 1420 mm with raw materials. supply. 14% has begun in Russia. 11%

4% 4% WE CREATED THE WORLD’S “FROM ORE INTO PIPE” DOMESTIC PRODUCTION 2% FINEST INTEGRATED LARGE ALL RUSSIAN LARGE DIAMETER PIPES, PARTICULARLY 1% 0%

DIAMETER PIPE PRODUCTION FOR THE POWER OF SIBERIA PROJECT, ARE MADE TOTALLY in Russian pipeline projects LDPs Share of imported FROM RUSSIAN MATERIALS ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 c 2014

13 CORPORATE CITIZENSHIP AND CHARITY

SOCIAL OUR CHARITY INVESTMENTS DIRECTIONS: BILLION WE SUPPORT DISADVANTAGED GROUPS, CHILDREN IN 2011-2014 IN DIFFICULT LIFE SITUATIONS, YOUTH AND THE RUBLES ELDERLY IN THE REGIONS WHERE THE COMPANY 2 MAINTAINS A PRESENCE WE SUPPORT EDUCATIONAL PROGRAMMES IN 2014, WE SPENT 1 MILLION RUBLES AND INSTITUTIONS ON SOCIAL PROJECTS FOR EVERY WE SPONSOR BLOOD DONATION INITIATIVES WE SUPPORT PROJECTS INTENDED TO REVIVE 5 THOUSAND TONS OF OUR CULTURAL HERITAGE SITES AND PROMOTE CURRENT PRODUCTION TRENDS IN CONTEMPORARY CULTURE AND ART

14 CHARITY FUND

THE OMK-UCHASTIE CHARITY PROTECTING CHILDHOOD FUND WAS LAUNCHED BY AND FAMILY SHAREHOLDERS AND EMPLOYEES OF THE COMPANY AND IS FUNDED DIRECTIONS: BY THEM AS WELL TARGETED AID TO SERIOUSLY AND TERMINALLY ILL CHILDREN

DEVELOPMENT OF EDUCATION AND MEDICAL PRACTICES: Creation of a website on child oncology with educational modules for doctors and nurses Regular charity events at SRI of Child Oncology and Haematology (N.N. Blokhin ROSC). In 2009-2014, our Annual congress of child oncologists, etc. employees assisted over 1,000 needy families COLLABORATION WITH INSTITUTIONS: CHILDREN FROM MILLION SOCIALLY DISADVANTAGED FAMILIES OR THOSE WHO ARE through an expenditure LEFT WITHOUT PARENTS’ CARE ARE EDUCATED OR CURED: of 31 million rubles RUBLES >31 Orphanages, correctional schools in regions where OMK operates through the OMK-Uchastie charity fund ART OVRAG — NEW URBAN CULTURE FESTIVAL IN VYKSA (NIZHNY NOVGOROD REGION) >1000FAMILIES

15 ОМК 28/2, Ozerkovskaya embankment Moscow, Russia, 115184

+7 (495) 231-77-71 +7 (495) 231-77-72 [email protected] www.omk.ru

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