#1TMK IR PRESENTATION TMK May 2020#2Contents TMK I. COMPANY OVERVIEW 2 II. TMK RUSSIAN DIVISION: MARKET OVERVIEW 9 IV. V. III. TMK EUROPEAN DIVISION: MARKET OVERVIEW STRATEGIC OVERVIEW ENVIRONMENTAL, SOCIAL & GOVERNANCE 17 21 24 VI. SUMMARY FINANCIAL RESULTS 27 VII. APPENDIX SUMMARY FINANCIAL ACCOUNTS 37 VIII. APPENDIX - TMK PRODUCTS 42 IX. APPENDIX 47 TMK 1#3TMK Company Overview TMK 2#4TMK- Global Supplier of Full Range of Pipes for Oil and Gas Industry One of the largest steel pipe producers globally USA MANAGEMENT ○ PRODUCTION SALES OIL AND GAS SERVICES ○ RESEARCH & DEVELOPMENT • Russia segment (Russia & Kazakhstan): TMK sales by region(a) (12M 2019, revenue) CIS, 8% ME, Asia and Africa, 2% Europe, 10% TMK sales by product(a) (12M 2019, in tonnes) Oil & Gas = 79% TMK OCTG, 46% 2 sales office . Pipe production 12 production facilities capacity: 4,591 Kt p.a. 2 R&D centres Russia Europe segment (Romania): 2 production facilities Pipe production capacity: 220 Kt p.a. Key operating indicators(a) Pipe sales (kt) Americas 22% Industrial pipe, 21% Russia, 58% Key financial indicators (a) Line pipe, 20% LD pipe, 12% Kazakhstan US$m Rub mln 2017 2018 2019 2018 Revenue 4,394 5,099 4,767 319,399 2019 308,378 Adj. EBITDA (b) 605 700 688 44,052 44,138 Margin (%) 14% 14% 14% 14% 14% Operating FCF(c) 372 427 469 26,877 29,955 2017 3,784 2018 3,989 2019 3,828 Net Profit (Loss) Net Debt 30 (0) 66 2,142 3,946 2,688 2,437 2,503 169,233 151,718 Source: TMK data Notes: (a) annual results include IPSCO (discontinued operations). For detailed breakdown of key financial metrics for continued and discontinued operations please refer to Appendix and TMK financial statements (b) Adjusted EBITDA for PAO TMK represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortization, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items (c) Operating FCF calculated as Adjusted EBITDA less CAPEX TMK 3#5IPSCO Sale Key highlights of the Transaction 22 Mar 2019 Stock Purchase Agreement signed with Tenaris US$1,209m agreed aggregate cash-free, debt-free price 18 Dec 2019 The U.S. Department of justice approved Tenaris's acquisition of IPSCO from TMK 2 Jan 2020 Transaction successfully closed The Americas segment key operating and financial indicators (a) TMK (US$m) 2016 2017 2018 2019 Pipe sales (kt) 282 673 804 520 Revenue 368 989 1,349 889 Adj. EBITDA (b) (72) 114 164 30 Margin (%) neg. 11.5% 12.1% 3.3% Transaction benefits for TMK Source: TMK data In line with the strategy of international assets' monetization Allows to reduce leverage and focus on the key markets: Russia and Europe Retaining TMK's position as one of the leading pipe producers globally even post-IPSCO sale Contributes to higher stability of cash flows and margins due to reduced exposure to the U.S. market Maintaining TMK's shipments to the North American market due to signing the master distribution agreement with Tenaris, allowing TMK to sell its OCTG and line pipe products to the USA and Canada market for the next 6 years Transaction benefits for TMK ■ The consideration received by TMK, following contractual adjustments, amounted to $1,067 million (as estimates as of the closing date) The majority of the proceeds received by TMK from the sale of IPSCO were used to repay TMK's indebtedness within 60 days from the date when such proceeds were received TMK continues focusing on deleveraging, aiming to achieve a long- term target Net Debt to Adjusted EBITDA ratio of 2.5x or lower Notes: (a) The Americas segment financial information disclosed in the IFRS statements mostly consisted of IPSCO's results (b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortization, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items TMK 4#6TMK TMK Today - Key Investment Highlights 1 TMK 2 5 4 Industry-leading market position and large modern asset base Dominant #1 player in seamless OCTG industry in Russia State-of-the-art production base with major investments completed over 10 years in 2004-14 Established longstanding relationships with major oil & gas upstream and midstream players 3 ☑ Attractive market fundamentals in Russia Russia - large low-cost oil producing region; a major market with robust drilling activity in 2017-2019 - TMK dominant player in Russian oil & gas with 32% (a) market share for pipes used in the oil and gas industry, 63% (a) market share in seamless OCTG Low-cost position and stability of margins underpinned by significant vertical integration High degree of vertical integration in the seamless business due to in-house steel production Ability to pass through costs of steel products - demonstrated by stable margins throughout the cycle Substantial improvement in the global competitive positioning on the back of Ruble devaluation Consistent focus on de-leveraging TMK adheres to prudent and disciplined cost management, which translates into higher margins; disciplined capex Strong deleveraging post IPSCO sale Source: Company data Notes: (a) Company estimates for FY 2019 TMK Superior governance practices and uniquely stable and experienced management team Experienced management team 5 Independent Directors on the Board; The Board of Directors Committees chaired by independent directors 5#7TMK - Superior Earnings Resilience Through the Cycle TMK TMK Tenaris vallourec 3 871 3 989 3 784 3 828 3 458 3,571 3,271 1 461 1 113 1 246 1 177 2,633 2,618 877 1 046 671 2,364 2,256 2,291 Total 605 1,990 461 pipes sales 355 1,411 1,281 volume(a) 2410 2412 2 671 2 743 2 651 714 2,694 2,600 835 2,028 2,157 450 (ths. tonnes) 188 1,635 170 526 665 T 2015 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 ■ Seamless = Welded ■Seamless ■ Welded ■ Total sales 16% 16% 14% 14% 14% 16% 18% 18% 20% 19% 14% 16% Adjusted EBITDA margin(a,b), % 8% 8% 3.8% 0.1% 2015 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 (2%) (7%) 2015 2016 2017 2018 2019 1Q20 Cash conversion(a,c) 68% 67% 68% 61% 64% 61% 77% 74% 76% 41% 7% n.m. 0% n.m. n.m. 54% 54% 2015 2016 2017 2018 2019 1Q20 2015 (32%) 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 Source: Companies' public reporting Note: (a) TMK results in 2015-2019 include TMK-IPSCO. Since the beginning of January 2020 TMK-IPSCO was deconsolidated. (b) Adjusted EBITDA for TMK represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items (c) Calculated as (Adjusted EBITDA - Capex) / Adjusted EBITDA TMK 6#8Vertically Integrated Model Ensuring Margin Resilience Production chain Scrap Hot Briquetted Iron (HBI) Scrap TMK Deeper integration provides better resilience in margins Seamless products Own production perimeter 24% 25% 26% 28% 24% 25% 23% Share in 1Q 2020 Gross profit 320 303 268 255 244 95% 208 206 Electric Arc Furnace Billets Pipe making facilities 2014 2015 2016 2017 2018 2019 - Scrap (FOB Black Sea), average purchase price (US$/t) -Gross profit margin of seamless products, % 1Q20 Welded products 12% 13% 10% 8% 8% 8% 5% Steel coil Coking coal External Steel Making/ Flat Rolling 531 551 500 387 460 472 347 Pipe making facilities 2014 2015 2016 2017 2018 2019 1Q20 Steel plate -Hot Rolled Coil (FOB Black Sea), average purchase price (US$/t) Own production perimeter - Gross profit margin of welded products, % Source: Metal Expert, Bloomberg Iron ore 1 2 3 4 One of the lowest cost + regions for steel production Vertically integrated seamless pipe production + Longstanding relationship with major scrap, HBI and steel suppliers + Ability to pass costs onto consumers under long-term contracts with a pricing formula = TMK ■ Seamless ■ Welded Share in 1Q 2020 Gross profit 5% ■ Welded ■ Seamless Ability to maintain resilient margin irrespective of steel price cycle 7#9Strong Position in Multiple End-Markets for Pipes Beyond Oil & Gas Civil Construction TMK Automotive RENAULT TOYOTA ■ TMK-ARTROM is qualified as an authorised supplier for such companies as Dacia (a subsidiary of Renault) Supplier for Toyota TMK Energy and Chemicals Galvanised pipe for the outer steel frame of the Otkritie Arena stadium in Moscow Impact resistant seamless pipe shipped for the construction of Zenit Arena stadium retractable roof in St Petersburg ■ Structural steel pipe for the stadium roof in Samara Diversified Hi-Tech Solutions Pipe shipments to energy and petrochemical businesses ■ TMK-INOX stainless pipe of 8-114 mm diameter, used in nuclear, aircraft, automotive, aerospace and energy industries 00 8#10TMK TMK Russian Division: Market Overview TMK 6#11TMK Oil Production in Russia Remains Strong and This Creates Long-term Demand for High-End Oil & Field Services Annual average oil production (including gas condensate) increased 0.8% YoY and came to 11.25 MMbd in 2019 ■ Gradual stagnation of oil production from brownfields is accompanied by development of greenfield projects Russian total oil output Supported by increasing development of greenfields and hard to recover reserves TMK MMbpd 11.5 11.2 10.9 10.6 Jan Feb 2017 Mar Apr May Jun Jul Aug Sep Oct Nov -2018 -2019 Dec -2020 Source: Interfax, Info TEK OCTG demand is stable supported by existing level of production and development of greenfields... 50 Meters (mln) 20 20 30 30 40 40 1.5 3.0 2.3 2.3 2.4 2.2 2.3 1.6 1.7 2.0 1.9 1.8 2.0 2.1 2.0 1.0 10 0.0 2010 2012 2014 2016 2018 2020F 2022F OCTG demand (RHS) Meters drilled (LHS) Source: Interfax, Info TEK, Spears & Associates, TMK estimates Tonnes (min) (% of total oil production) -CAGR'19-26(a): +11.4% 19% 20% 17% 15% 11% 11% 10% 8% 8% 8% 9% 8% 8% 9% 9% 6% 4% 1% 2017 2018 2019F 2020F 2021F 2023F 2024F 2025F 2026F ■Greenfield production Hard to recover reserves production Source: RPI Note: (a) corresponds to greenfield production CAGR '19-26 OCTG premium products demand is supported by high share of horizontal drilling Russian drilling, kmpd 80 km/d 76 76 75 71 70% 68 40 57 60 54 49 40 53 60 60 60% 53 50% 53% 51% 48% 40% 41% 30% 33% 36% 30% 20% 20 21% 10% 12% 14% 0 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q 20 Total drilling % of horizontal drilling (RHS) 10#12Attractive Portfolio of Premium OCTG Projects Arcticgas ⚫ 2018-2022 • OCTG with premium connections Yamal LNG • 2014-2023 ⚫ OCTG, including pipes with premium connections and line pipes Messoyakhskoye field • 2016-2020 ⚫ OCTG, including pipes with premium connections, line pipes and LDP • Vankorskoye cluster fields 2008-2023 OCTG, including pipes with premium connections, GreenWell technology, line pipes and LDP TMK Prirazlomnoye field • 2013-2023 • OCTG with premium connections and GreenWell technology Caspian offshore projects • 2010-2020 • OCTG with premium connections and LDP LUK LUKOIL Note: Offshore projects Onshore projects Source: TMK data TMK GAZPROM NEFT NOVATEK TOTAL CNPC SilkRoadFund 路基金 GAZPROM NEFT ROSNEFT NOVATEK ROSNEFT C GAZPROM SGAZPROM GAZPROM SAKHALIN САХАЛИН • Sakhalin-1 2017-2022 OCTG with premium connections • Sakhalin-2 2017-2022 •OCTG with premium connections Russkoe field • 2016-2020 • OCTG with premium connections including vacuum insulated tubing (VIT) Kovyktinskoye field • 2016-2025 ⚫ OCTG, including pipes with premium connections Chayandinskoye field • 2016-2025 ⚫ OCTG, including pipes with premium connections Yuzhno-Kirinskoye field • 2017-2023 . • OCTG with premium connections 11#13TMK's Home Market is One of the Lowest Cost Oil Producing Regions Global oil production supply curve Coal to Liquid Gas to Liquid Asia DW(3) Permian tight TMK Breakeven price (U.S.$/Boe)(1) 125 Low-cost supply completely in the money at current Brent price 100 75 50 50 Brent Jan-Apr 2020 average price 25 OPEC, Middle East and Africa 0 20 Russia, Caspian region* 40 Production (MBD) Aus. and Pacific America Non- DPEC) Asia -con- NA conv. 60 Bakken EOR(2) Eagle Ford Europe VZ extra heavy| NA DW(3) Africa Offshore Canadian Oil Sands Arctic SA DW(3) (primarily Brazil) Brent Crude 2020 Year low 80 Even with oil at 2020 Year lows, the low cost Russian and Caspian region is able to remain profitable unlike the majority of its international counterparts. In 2015 and 2016, Russia was the only region globally to maintain healthy drilling activity and stable OCTG demand. Source: IEA World Energy Outlook (2016); EIA International Energy Outlook (2016); EIA Annual Energy Outlook (2016); Morgan Stanley (2016), Bloomberg (as of 27 Jan 2020) Notes: (1) Breakeven price assumes a 10% return, and NPV of zero; *includes Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan; (2) Enhanced oil recovery; (3) Deep Water TMK 12#14TMK 0 1 2004 Source: TMK estimates 2 2005 3 mln tonnes 4 2006 5 2007 7 8 9 10 2008 2009 2010 11 2011 12 Russian Tube and Pipe Market 2012 2013 2014 2015 2016 2017 2018 2019 2020F 2021F 2022F Energy Non-Energy No.1 on the Russian tube and pipe market 1Q 2020 TMK 22% 32% market share of energy pipe demand 1Q 2020 Source: TMK estimates, based on 1Q 2020 numbers TMK 32% 13 TMK#15TMK Strong Position on the Domestic Market TMK share of seamless OCTG Seamless OCTG market share, % 26% ■ TMK ■ Import 9% 65% ■ Other local producers TMK share of premium connections Premium connections market share, % 14% 86% Source: TMK estimates, based on 1Q 2020 numbers ■TMK ■ Other ■ Further development of conventional and unconventional reserves will require increased share of up-to-date drilling techniques and reliable OCTG products ■ Russian seamless OCTG market was stable in 2019 ■ TMK is a leader in the seamless OCTG production on the Russian market with a more than 60% market share for 12M 2019 and 1Q 2020 Stable drilling market in Russia Min meters 30 25 20 GNN 15 10 5 0 2009 14.4 16.5 18.7 20.5 22.2 20.8 22.0 24.9 27.6 27.6 Source: Spears & Associates Annual development drilling volume -Total new wells drilled (rhs) 27.3 0 10,000 8,000 6,000 4,000 2,000 14 Units TMK#16TMK LDP Demand in Russia LDP demand in Russia, 2012-2023E Booming market '000 tonnes 3,500 3,000 2,500 15% 20% 20% 2,000 26% 1,500 31% 30% 14% 1,000 26% 54% 500 54% 44% 26% 25% 25% 30% 26% 10% 15% 11% 31% 30% 11% 20% 39% 65% 12% 13% 15% 65% 59% 64% 63% 50% 58% 56% 46% 0 2012 2013 2014 2015 2016 2017 ■ Gazprom ■ Transneft 2018 ■ Others 2019 2020F 2021F 2022F 2023F Source: TMK estimates TMK For the next three years we expect the LDP market to be at approximately 2 mln tonnes LDP demand in Russia is driven by nation-wide O&G projects and maintenance of the existing O&G infrastructure, with total length of Gazprom and Transneft current pipeline network exceeding 225 thousand kilometers Going forward, LDP demand in Russia is expected to be strongly supported by growing needs of Gazprom on the back of potential new projects, such as: Power of Siberia-2, Bovanenkovo-Ukhta 3, Ukhta-Torzhok 3 etc. TMK is well-positioned to participate in these projects due to efficient production and low costs, high-quality product offering and well-established relationship with the major customers in the Russian LDP market 15#17Strategic Cooperation Supporting Growth TMK Partnership Memorandum Scientific and Technological Cooperation Technology Partnership Program TMK Strategic cooperation with key customers Long-term agreements with key customers to develop and supply innovative premium products with related services will strengthen TMK's position Import substitution programs guarantee purchase of tubular products and related services ■ TMK's innovative products are able to considerably improve the energy efficiency of wells, as well as safety and environmental impact 16#18TMK TMK European Division: Market Overview TMK 17#19Well Established European Steel Platform With a Strong and Resilient Business Model VERTICALLY INTEGRATED Steel and seamless steel pipes platform integrated upstream with a modern mini-mill and downstream with three trading entities well positioned to serve clients in two of the largest markets worldwide, Europe (including North Africa) and the Americas WELL LOCATED Fair geographical location and efficient plant-to-plant and plant-to-port interconnections in Romania. complemented by trade defense measures for EU producers COST-COMPETITIVE → A mix of advantages making TMK- Artrom S.A. a cost-competitive production platform availability of scrap metal in the proximity of production facilities, a key raw material in production, and TMK Resita Orsova Port Drobeta Turnu Severin Port US 300 km 435 km 175 km 160 km TMK Artrom Danube River Danube River Bucharest Black Sea TMK Production Units Trading Entities Constanta Port TMK - lower than EU average salaries costs DIFFERENT → Focused on midmarket clients, with the whole operation designed to be highly flexible in order to address this client type: volumes per charge of steel of 100 tons and orders as small as 5 tons with just-in-time delivery, plus tailor-made products and prompt post-sale services, including site visits Texas Germany Italy 18#20Diversified And Attractive Global Customer Base TMK Core countries Others TMK TMK-ARTROM sales by region in 2019 (in terms of value) Europe 85% Americas 15% 14% Romania (a) Americas includes also Canada, Brazil, US, Mexico (b) Europe includes also Middle East, Turkey and North Africa ✓ 45 countries with a focus on Europe and the Americas ✓ Almost 400 permanently active clients ✓ Largest client <10% of sales (top 10 clients <25%) ✓ # of clients in the Americas doubled and the share of sales of own pipes increased to 15% in 2019 vs. 5% in 2016 due to the launch of a subsidiary (April 2016) 19#21Distinctive Product and Client Portfolio Decoupling the Company from the Global Steel Market Strongly positioned in multiple end-markets for pipes, beyond oil & gas... In volume terms, 2019 Hydraulic cylinders, 10% Mechanical _engineering, 30% TMK ...quality oriented and certified for the automotive industry, differentiating the Company from most of its peers Construction, 14% Automotive, 11% Oil & Gas, 12% Energy, 23% Increasing focus on product premiumisation by expanding heat treatment, cold processing and machining... '000 tonnes 14 24 16% 25 11 30 30 } 22% 8 13 138 138 140 133 Premium pipes volumes grew by 1.5x in the last 4 years 2016 2017 (1) 2019 TMK ■Commodities pipes Europe Premium pipes Europe 2018 ■Commodities pipes Americas ■Premium pipes Americas Source: Company information, Management accounts (1) Europe also includes Middle East, Turkey and North Africa (2) Americas also includes Canada, Brazil, US, Mexico (2) Up to 11% in the sales mix in 2019 ■ Able to satisfy one of the most demanding industries in terms of product quality ■ Projects co-developed with and pipes supplied to major major car manufacturers including some of the most prestigious luxury brands ...and by providing niche and tailor-made customer solutions to a market with growing sophistication Limited editions under tight deadlines: ability to supply small orders (ca. 1/100 compared to industrial commodity pipes) to car manufacturers under tight just-in-time delivery terms (even down to a minimum of 10 days) ▪ Rare products for the European market: customized heat treated tubes, including quenched and tempered long tubes with wall thickness up to 60mm Very high precision products for highly specialized uses: produced in microns tolerances, a dozen times higher level than industrial commodity pipes; these tubes are ready for use without other machining in hydraulic cylinders and accumulator manufacturing 20 20#22TMK Strategic Overview TMK 21 21#23Key Strategic Pillars TMK Enhance leadership in key segments and enter new product niches Optimise vertical integration Enhance the sales platform and leverage TMK's global scale Focus on innovation and digitalisation Enhance operational excellence Strengthen financial performance and investment appeal Dominate the Russian OCTG and line pipe markets Increase the share of high-tech products in the Russian division's revenue to 50% by 2022 and maintain a leading position in the Russian market for premium connections Increase capacity utilization of steelmaking facilities through higher production volumes of steel billets and other products, and maximize the financial impact Expand presence in further processing of tubular products (drill pipe, coating) Develop a service offering of ready-to use comprehensive engineering solutions for customers Expand commercial footprint of TMK's products and services Develop strategic partnerships with major customers and global consumers Focus on offering products that have a global market and stable demand outlook, i.e. high-tech seamless pipes and premium connections Develop e-commerce across all divisions via eTrade, the first tubular goods Internet shop in Russia Use cutting-edge digital technology to improve product quality and cut costs Foster a culture of continuous operational improvements and production cost cutting Ensure consistent product quality through increasing the sustainability of technologies and personnel qualification Maximize operating cash flow Monetize international assets, strategic alliances and joint ventures in all regions of presence Further leverage reduction TMK 22 222#24Debt Maturity Profile as at March 31, 2020 US$ mln 700 600 615 ■ EUR ■ RUB ■ USD 500 On February 12, 2020, TMK completed a $500 million seven year Eurobond issue with a coupon of 4.3%. The proceeds were used to refinance TMK's $500 million Eurobond, which matured in April 2020. 400 504 300 293 19 260 357 500 TMK Net debt decreased from RUB 154.9 billion ($2.503 billion) as at December 31, 2019 to RUB 108.6 billion ($1.396 billion*) as at March 31, 2020. ■ In January 2020, TMK closed the sale of IPSCO Tubulars Inc. in line with the Group's strategic objective of reducing the leverage. The consideration received by TMK amounted to $1.067 billion**. The bulk of the proceeds from the transaction was used to reduce Group debt. - The weighted average nominal interest rate reduced by 33 bps compared to the end of 2019 to 6.61% as at the end of 1Q 2020 Credit Ratings: S&P BB-, Negative ✓ Moody's B1, Positive Debt currency structure 500 198 200 350 150 152 133 209 133 17 265 100 08 80 120 125 145 113 196 50 11 6 1 30 21 13 × 0 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2020 2021 2022 2023 2024 2025 2026 2027 RUB 57% Source: TMK management accounts (figures based on non-IFRS measures), TMK estimates Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums. * At the rate of the Central Bank of Russia as at March 31, 2020 (USD/RUB = 77.7325) ** Estimated as of the closing date, January 02, 2020 TMK EUR 6% USD 37% 23#25TMK Environmental, Social & Governance MSCI ESG RATINGS CCC B BB BBB A BB AA AAA In 2019 TMK received an MSCI ESG Rating* of BB Note: (*) disclaimer link: https://www.msci.com/documents/1296102/15233886/How-to-Reference-an-MSCI-ESG-Rating- Final.pdf/c2ca92cb-1783-ae6e-d351-f9920c18b79b?t=1564729359833 Governance......2 (as of January 1st, 2020) ISS Environmental...4 (as of January 1st, 2020) Social ....6 (as of January 1st, 2020) Lower governance risk = 1; Higher governance risk = 10 Higher E&S disclosure = 1; Lower E&S disclosure = 10 TMK 24#26Corporate Governance Composition of The Board of Directors Dmitry Pumpyanskiy Chairman Non-Executive Director Alexander Shiryaev Executive Director Founder of TMK Member of the Board of Directors since 2002 25+ years of sector experience ■ With TMK since 2003: various senior positions within the Group incl. CEO until 2019 Andrey Kaplunov Executive Director ■ With TMK since 2000: Chairman of the Board of Directors of TMK Russian plants, TMK Trade House Alexander Pumpyanskiy Non-Executive Director ■ Chairman of the Board of Directors of SKB-BANK and Sinara Group Mikhail Khodorovskiy Non-Executive Director Member of the Board of Directors of SKB-BANK, Sinara Transport Machines, Sinara Group Anatoly Chubais Non-Executive Director ■ Chairman of the Board of Rusnano (investment fund focused on nanotechnology) ■ Previously held various senior political positions Directors Independent Directors Structure of The Board of Directors TMK Capital structure, as of December 31, 2019 ■5 Independent Directors Free float 34.76% Sergey Kravchenko Chairman of the Nomination and Remuneration Committee President of Boeing Russia/CIS since 2002 11 ■ 4 Non-Executive Directors ■ 2 Executive Directors Natalia Chervonenko Chairman of the Audit Committee 20+ years of banking experience ■ Board member of a number of industrial companies and banks Aleksander Shokhin Chairman of the Strategy Committee ■ President of Russian Union of Industrialists and Entrepreneurs Frank-Detlef Wende Independent Director ■ Senior academic positions at MADI and Financial University Previously Counsel to President of AvtoVAZ Yaroslav Kuzminov Independent Director ■ Rector of National Research University "Higher School of Economics" Chairman of Board Committee Board committees The Board of Directors has three standing committees chaired by independent directors Nomination and Remuneration Committee M Audit Committee Strategy Committee Indicates independent director Corporate governance ratings TopCompetence TMK ranks in the Top-20 companies in Russia with the best disclosure of corporate governance information, according to the annual survey "National Corporate Governance Index" in 2018 TMK subsidiaries 0.18% TMK Steel Holding Ltd, incl. affiliates (UBO - Mr. Dmitry Pumpyanskiy) 65.06%* ■ TMK's securities are listed on the London Stock Exchange and the Moscow Exchange As of December 31, 2019, 34.76% of TMK ordinary shares were in free float Total shares outstanding amount to 1,033,135,366 One GDR represents four ordinary shares * The beneficiary is Dmitry Pumpyanskiy, Chairman of the Board of Directors of TMK. Includes shares owned by TMK Steel Holding Ltd and subsidiaries of TMK Source: TMK data TMK 25#27Health, Safety and Environmental Protection as a Foundation for Business Stability Environmental management TMK in 2019 adopted a new Environmental policy >20 CAPEX projects in 2019 Key areas: water basin protection, air protection and soil protection Environmental expenditures (US$m) 37 40 37 Water and Waste management key results in 2019: 4% YoY of total water consumption *3% YoY of wastewater discharge to natural water bodies 95.7% of water recycled and reused by the Russian Division *9% YoY of waste generation Health & Safety Annual Steel Safety Day Over 40k employees participated 100% of production sites took part in Steel Safety Day 2019 Injury frequency rate(a) 1.52x 1.37x 0.92x 2017 2018 2019 TMK 2017 2018 2019 th tonnes Total pollutant emissions 4% YoY pollutant emission in 2019 11.1 11.0 10.5 2018 2019 Greenhouse Gas Emissions Improved GHG data disclosure in 2019 1.296 mn tonnes Direct GHG emissions of CO2 equivalent in 2019 4% YoY reduction of total tonnes of GHG emissions due to optimizing operations and improving process solutions Number of accidents 31% down In 2019 Zero fatalities In 2018 and 2019 US$10.6m +10% YoY Invested in safe working environment measures in Russian and European divisions in 2019 Focus on best practices B All certified TMK facilities confirmed compliance with OHSAS 18001 Preparations for and participation in the Russia Health and Safety Week and Safety and Labor Protection (BIOT) international specialized exhibition Comprehensive charity program Supporting favourable social climate in the regions of operations 2017 Source: TMK data Notes: (a) Number of people injured over a year for each 1 million hours worked TMK 26#28TMK Summary Financial Results TMK 27 22#29TMK RUB bn FY Consolidated Results Snapshot (RUB) Revenue 350 300 RUB bn 250 200 319 150 308 250 256 223 100 50 0 2015 2016 2017 2018 2019 Adjusted EBITDA(b) 50 16% 18% 15% 14% 14% 14% 15% 40 12% 30 9% 20 44.1 44.1 20 37.8 35.0 35.0 6% 10 3% 0 2015 2016 2017 2018 0% 2019 ◆ Adjusted EBITDA margin, % Adj. EBITDA margin, % RUB bn Volumes and realised prices Average 60.66 66.90 58.35 62.71 USD/RUB rate (a) 64.62 Average 65 65 67 81 83 revenue per tonne, th RUB 34 23 24 29 28 5,000 Thousand tonnes 3,871 3,784 3,989 3,828 4,000 3,458 3,000 1,461 1,113 1,246 1,177 1,046 2,000 1,000 2,410 2,412 2,671 2,743 2,651 0 2015 2016 2017 2018 2019 ■Seamless ■Welded Net profit 220 20 10.7 10 1.5 2.1 3.9 0 (10) (20) (30) (28,4) (40) 2015 2016 2017 2018 2019 Source: TMK data including IPSCO results Note: (a) Average nominal USD/RUB exchange rate as published by the Central Bank of Russia. (b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items 28 TMK#30TMK US$ mln FY Consolidated Results Snapshot (USD) Revenue 6,000 5,000 US$ mln 4,000 3,000 5,099 4,767 2,000 4,127 4,394 3,338 1,000 0 2015 2016 2017 2018 2019 Adjusted EBITDA(b) 16% 16% 18% 800 14% 14% 14% 15% 700 600 12% 500 9% 400 700 688 651 300 605 6% 530 200 3% 100 0 0% 2015 2016 2017 2018 2019 ◆ Adjusted EBITDA margin, % Adj. EBITDA margin, % Volumes and realised prices Average USD/RUB rate (a) 60.66 66.90 58.35 62.71 Average revenue/tonne US$1,078 US$921 US$970 US$796 US$1,152 US$976 US$1,294 US$1,021 64.62 US$1,288 US$981 5,000 Thousand tonnes 3,784 3,989 3,828 4,000 3,871 3,458 3,000 1,461 1,113 1,246 1,177 1,046 2,000 1,000 2,410 2,412 2,671 2,743 2,651 0 2015 2016 2017 2018 2019 ■Seamless ■Welded Net profit 200 100 166 30 60 66 0 (0) սլա $ՏՈ (100) (200) (300) (400) (368) 2015 2016 2017 2018 2019 Source: TMK data including IPSCO results Note: (a) Average nominal USD/RUB exchange rate as published by the Central Bank of Russia. (b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items 29 TMK#31Gross Margin, SG&A and Cash Conversion (RUB) Gross margin 30% 25% 26% 25% 24% 23% SG&A and corporate overheads(a) 40 40 35.7 31.9 31.7 32.4 29.3 % 20% 13% 10% 8% 10% GLALL 5% 8% 0% 2015 2016 2017 2018 2019 Seamless Welded Capex and cash conversion (b) RUB bn 68% 67% 68% 20 20 70% 61% 61% 15 10 10 50% 17.2 13.7 14.2 30% 12.7 11.5 5 0 10% 2015 2016 2017 2018 2019 Cash Conversion, % RUB bn 30 20 20 10 0 2015 2016 2017 2018 2019 Key considerations Seamless segment accounting for 89% of consolidated gross profit and demonstrates consistently superior margins High level of vertical integration provides better control over costs and allows to maintain resilience in margins Significantly optimized lean cost structure due to stringent efficiency measures TMK Source: TMK data including IPSCO results Note: (a) Based on IFRS financial statements. Calculated as Gross Profit less Operating profit (b) Calculated as (Adjusted EBITDA - Capex) / Adjusted EBITDA. Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of profit)/loss of associates and other non-cash, non-recurring and unusual items 30 TMK#32Gross Margin, SG&A and Cash Conversion (USD) Gross margin SG&A and corporate overheads(a) % 30% 25% 26% 25% 24% 23% 20% 13% 10% 8% 10% GLALL 5% 8% 0% 2015 2016 2017 2018 2019 Seamless Welded Capex and cash conversion (b) US$ mln 68% 67% 68% 300 70% 61% 61% 200 50% 273 236 219 100 208 30% 175 0 10% 2015 2016 2017 2018 2019 Cash Conversion, % սլա $ՏՈ 800 600 544 552 524 518 437 400 200 0 2015 2016 2017 2018 2019 Key considerations Seamless segment accounting for 89% of consolidated gross profit and demonstrates consistently superior margins High level of vertical integration provides better control over costs and allows to maintain resilience in margins Significantly optimized lean cost structure due to stringent efficiency measures TMK Source: TMK data including IPSCO results Note: (a) Based on IFRS financial statements. Calculated as Gross Profit less Operating profit (b) Calculated as (Adjusted EBITDA - Capex) / Adjusted EBITDA. Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of profit)/loss of associates and other non-cash, non-recurring and unusual items TMK 31#33Semi-annual Segmental Performance Dynamics excluding IPSCO (in RUB) European division TMK Sales volume (ths. tonnes) Russian division 1,435 1,490 1,553 1,590 1,529 1,432 679 93 92 100 100 99 88 35 1H17 2H17 1H18 2H18 1H19 2H19 1Q20 1H17 2H17 1H18 2H18 1H19 2H19 1Q20 21.1 19.6 15.2 15.3 Adjusted 13.5 13.3 EBITDA(a), RUB bn 1.5 1.7 8.8 1.0 0.6 1.1 0.4 1H17 2H17 1H18 2H18 1H19 2H19 1Q20 1H17 2H17 1H18 2H18 1H19 2H19 (0.0) 1Q20 Adjusted EBITDA margin(a), % Source: TMK data Note: TMK 18% 16% 17% 17% 17% 15% 14% 14% 14% 14% 12% 10% 6% 1H17 2H17 1H18 2H18 1H19 2H19 1Q20 (1%) 1H17 2H17 1H18 2H18 1H19 2H19 1Q20 (a) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual item 32#34Historical Segmental Quarterly Performance Dynamics including IPSCO (in USD) European division TMK Sales volume (ths. tonnes) Adjusted EBITDA(a), US$ mln Adjusted EBITDA margin(a), % Source: TMK data Note: TMK Russian division American division (discontinued in 1Q 20) 833 812 734 740 687 745 757 763 766 199 199 210 190 205 168 150 116 86 50 47 53 48 52 51 48 44 44 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 198 166 132 137 135 124 123 111 105 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 21% 13% 14% 14% 15% 13% 16% 17% 16% 39 49 45 43 26 26 30 21 0 (20) 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 13% 14% 13% 12% 9% 10% 8% 0% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 (16%) 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 11 10 16 13 12 8 8 4 2 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 19% 14% 14% 17% 16% 12% 13% 8% 4% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 (a) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual item 33#351Q 2020 vs. 4Q 2019 Summary Financial Highlights Sales declined QoQ, due to the disposal of the American division following the sale of IPSCO Tubulars Inc. and lower sales at the Russian and European divisions Revenue declined QoQ, due to the disposal of the American division and a weaker performance at the Russian and European divisions 80,000 1,000 800 600 896 400 Thousand tonnes 200 0 4Q2019 -20% QoQ 714 1Q2020 Adjusted EBITDA decreased QoQ, due to a weaker performance at the Russian and European divisions -22% QoQ 16% RUB mln 12,000 10,000 8,000 6,000 11,268 4,000 8,737 18% 16% 15% 12% 2,000 0 4Q2019 9% 6% ៖ ៖ ៖ ៖ 3% 0% EBITDA margin, % 1Q2020 TMK RUB mln 60,000 40,000 69,926 20,000 0 4Q2019 -21% QoQ 55,319 1Q2020 Net profit increased QoQ, mainly due to the gain on disposal of subsidiaries RUB mln 20,000 15,000 10,000 5,000 0 (2,670) -5,000 4Q2019 19,628 Source: TMK data Note: Due to the fact that the Company did not issue the financial statements in Rubles for 9 months of 2019, the financial indicators in Rubles for 4Q 2019 are calculated as the difference between the reporting indicators in Rubles for 12 months of 2019 and reporting indicators in US dollars for 9 months of 2019, which were calculated at corresponding FX rates. 1Q2020 34 TMK#36TMK Thousand tonnes 1Q 2020 vs. 1Q 2019 Summary Financial Highlights 1,000 800 600 978 400 200 0 1Q2019 Sales declined YoY, due to the disposal of the American division and lower sales at the Russian and European divisions -27% YoY Revenue declined YoY, due to the disposal of the American division and a weaker performance at the Russian and European divisions -33% YoY 100,000 714 1Q2020 RUB mln 80,000 60,000 83,069 40,000 20,000 0 1Q2019 Adjusted EBITDA decreased YoY, mainly due to the disposal of the American division and lower EBITDA at the European division Net profit increased YoY, mainly due to the gain on disposal of subsidiaries RUB mln -24% YoY 14,000 12,000 16% 18% 14% 15% 10,000 12% 8,000 9% 6,000 4,000 11,520 8,737 6% 3% 2,000 0 1Q2019 0% 1Q2020 Source: TMK data EBITDA margin, % RUB mln 25,000 20,000 15,000 10,000 5,000 0 2,983 1Q2019 7.0x YoY 19,628 55,319 1Q2020 Note: Due to the fact that the Company did not issue the financial statements in Rubles for 9 months of 2019, the financial indicators in Rubles for 4Q 2019 are calculated as the difference between the reporting indicators in Rubles for 12 months of 2019 and reporting indicators in US dollars for 9 months of 2019, which were calculated at corresponding FX rates. 1Q2020 35 TMK#37Margin, % Seamless - Core to Profitability SEAMLESS RUR mln (unless stated otherwise) Sales Pipes, kt - Revenue Gross profit 1Q2020 QoQ, % YOY, % 526 -18% -23% 42,287 -18% -29% 12,042 -16% -15% 28% Avg revenue/tonne (RUB) 80,420 0% -7% Avg gross profit/tonne (RUB) 22,900 3% 11% - Sales Pipes, kt 1Q 2020 gross profit breakdown Welded 5% Other operations .1% TMK Seamless 94% WELDED Revenue Gross profit Margin, % Avg revenue/tonne (RUB) Avg gross profit/tonne (RUB) Source: Consolidated IFRS financial statements, TMK data 188 -26% -36% 9,814 -32% -51% 690 -42% -51% Sales of seamless pipe generated 76% of total revenues in 1Q 2020 7% Gross profit from seamless pipe sales represented 94% of 1Q 2020 total gross profit 52,162 -8% -24% Gross profit margin from seamless pipe sales amounted to 28% in 1Q 2020 3,669 -21% -23% Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums. TMK 36#38TMK Appendix - Summary Financial Accounts TMK 37#39Key Consolidated Financial Highlights TMK (RUB mln)(a) (US$mln)(a) 2019 2018 2019 2018 2017 Revenue 308,378 319,399 4,767 5,099 4,394 Adjusted EBITDA (b) 44,138 44,052 688 700 605 Adjusted EBITDA Margin (b) (%) 14% 14% 14% 14% 14% Profit (Loss) 3,946 2,142 66 0 30 Net Profit Margin (%) 1% 1% 1% 0% 1% Pipe Sales ('000 tonnes) 3,828 3,989 3,828 3,989 3,784 Cash Cost per tonne (d) 0,061 0,061 941 981 862 38,008 32,876 598 510 312 Cash Flow from Operating Activities Capital Expenditure(e) 14,183 17,175 219 273 236 Total Debt(f) 182,845 199,180 3,006 2,867 3,239 Net Debt(f) 151,718 169,233 2,503 2,437 2,688 Short-term Debt/Total Debt Net Debt/Adjusted EBITDA 45% 3.44x 31% 45% 31% 18% 3.84x 3.64x 3.48x 4.4x Source: TMK Consolidated Financial Statements for 2019, 2018, 2017, 2016, 2015, 2014 and 2013 (a) IFRS financials figures were rounded for the presentation's purposes. Minor differences with FS may arise due to rounding (b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items. (c) Sales include other operations and is calculated as Revenue divided by sales volumes tonnes (d) Cash Cost per Tonne is calculated as Cost of Sales less Depreciation & Amortisation divided by sales volumes (e) Purchase of PP&E investing cash flows (f) Total Debt represents loans and borrowings less interest payable; Net Debt represents Total debt less cash and cash equivalents and short-term financial investments TMK 38#40Income Statement TMK (RUB min) (US$mln) 2019 2018 2019 2018 2017 Revenue Cost of sales Gross Profit 308,378 319,399 4,767 5,099 4,394 246,736 261,915 (3,807) (4,183) (3,521) 61,642 57,484 959 916 872 Selling and Distribution Expenses General and Administrative Expenses Adverstising and Promotion Expenses (15,372) (14,377) (237) (231) (261) (17,849) (15,767) (276) (250) (231) (616) (456) (10) (7) (7) Research and Development Expenses (386) (451) (6) (7) (11) Other Operating Expenses, Net (1,520) (1,417) (23) (22) (34) Foreign Exchange Gain / (Loss) Finance Costs, Net Other 2,098 (4,644) 32 (72) 28 (15,113) (15,081) (218) (232) (268) (6,857) (0,287) (124) (50) (10) Income (Loss) before Tax 6,027 5,004 97 45 78 Income Tax (Expense) / Benefit Net Income / (Loss) (2,081) (2,862) (32) (45) (48) 3,949 2,142 66 (0) 30 Source: TMK Consolidated Financial Statements for 2019, 2018, 2017, 2016, 2015, 2014 and 2013 Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums. (a) Calculated as Finance income less Finance costs TMK 39#41Statement of Financial Position TMK (RUB min) (US$mln) 2019 2018 2019 2018 2017 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Prepayments Other Financial Assets 21,899 27,221 354 392 491 65,910 61,005 1,065 878 871 56,281 74,074 909 1,066 1,121 9,845 7,028 159 101 139 826 28 28 13 0 Total Current Assets 155,700 170,217 2,515 2,450 2,624 Total Non-current Assets 138,692 177,446 2,240 2,554 2,913 Total Assets 352,182 347,663 5,689 5,004 5,537 LIABILITIES AND EQUITY Accounts Payable 51,782 51,655 836 744 950 ST Debt 83,244 62,949 1,345 906 610 Other Liabilities 19,610 24,018 317 345 178 Total Current Liabilities 154,636 138,622 2,498 1,995 1,738 LT Debt Deferred Tax Liability Other Liabilities Total Non-current Liabilities Equity Including Non-Controlling Interest Total Liabilities and Equity Net Debt Source: TMK Consolidated Financial Statements for 2019, 2018, 2017, 2016, 2015, 2014 and 2013 Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums. 100,625 137,423 1,625 1,978 2,725 4,227 6,365 68 92 82 27,713 8,456 448 121 59 132,565 152,244 2,141 2,191 2,866 53,595 3,048 56,797 866 818 933 3,249 49 47 352,182 347,663 5,689 5,004 50 5,537 151,718 169,233 2,503 2,437 2,688 TMK 40 40#42Cash Flow (RUB min) (US$min) 2019 2018 2019 2018 2017 Profit (Loss) before Income Tax 6,027 5,004 97 45 78 Adjustments for: Depreciation and Amortisation 13,043 16,473 205 268 263 Net Finance Cost 13,282 16,765 218 232 268 Others Working Capital Changes 10,487 13,384 145 137 (260) (0,203) (8,538) 1 (145) (253) Cash Generated from Operations 42,636 43,088 666 537 349 Income Tax Paid (4,425) (1,674) (69) (27) (38) Net Cash from Operating Activities 38,008 32,876 598 510 312 Capex (14,183) (17,175) (219) (273) (236) Acquisitions 1 Others (9,308) 1,077 (145) 18 Net Cash Used in Investing Activities (23,491) (16,098) (364) (255) (235) Net Change in Borrowings (3,312) (2,040) (50) (46) 318 Others (14,776) (18,666) (217) (305) (197) Net Cash Used in Financing Activities (18,088) (20,706) (267) (351) 121 Net Foreign Exchange Difference (1,526) 2,857 (1) (4) 17 Cash and Cash Equivalents at Jan 1 Cash and Cash Equivalents at YE 27,221 28,292 392 491 277 22,124 27,221 357 392 491 Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums (a) Calculated as Finance costs less Finance income Source: TMK Consolidated Financial Statements for 2019, 2018, 2017, 2016, 2015, 2014 and 2013 TMK TMK 41#43TMK Appendix - TMK Products TMK 222 42#44Wide Range of Products and Services TMK OCTG Seamless Threaded pipes for the oil and gas industry including drill pipe, casing and tubing. The short-distance transportation of crude oil, oil products and natural gas. Line Pipe Industrial Automotive, machine building, and power generation sectors. Line Pipe Large-Diameter Industrial Welded Premium Threads TMK The short-distance transportation of crude oil, oil products and natural gas. Construction of trunk pipeline systems for the long distance transportation of natural gas, crude oil and petroleum products. Premium Connections (TMK UP) Premium connections are proprietary value-added products used to connect OCTG pipes and are used in sour, deep well, off- shore, low temperature and other high-pressure applications. Wide array of applications and industries, including utilities and agriculture. Oilfield Services Well equipment precision manufacturing, tools' rental, supervising, inventory management, threading and coating services. B 43#45TMK Premium Product Offering TMK Gas wells Higher pressure Steam-Assisted Gravity Drained (SAGD) Offshore When casing is rotated and pushed into place Oil wells with high gas-oil ratio Solutions for complex projects Kirinskoye Gas and Condensate Field Prirazlomnoye Oil Field TMK Lite Series Higher resistance to torque for casing while drilling and rotating. Classic Series Easy and reliable make-up. Professional Series Ability to withstand high tension, compression and bending loads at excessive internal and external pressure. For complex operations: deviated wells; conductor pipe; SAGD wells. • Yamal LNG, Sakhalin II Special Series Yuzhno-Kirinskoye Gas and Condensate Field Kovyktinskoye gas and condensate field Chayandinskoye oil, gas and condensate field Offshore projects of the Caspian Sea Pipes with premium connections are designed for O&G wells developed in challenging exploration and production conditions, including offshore, deep-sea and Far North locations, as well as for horizontal and directional wells 44#46High-tech OCTG Pipe Decisions for Oil & Gas Industry TMK TMK UP™M CWB TMK UP™M Magna TMK UP™M GF TMK UP™M FMC TMK UP™M FMT TM TMK UP™M PF TMK UP™M PF ET TMK UP™M CENTUM CAL IV CAL IV CAL IV TMK Onshore and offshore fields High H2S and CO2 concentrations ■ High temperatures Arctic environment ■ Horizontal and directional drilling. Drilling with casing Steam-Assisted Gravity Drainage (SAGD) GREENWELL lubricant-free connections 45#47Utilisation of TMK Pipe Products in Oil and Gas Industry Tubing Drill pipe Casing Oil field development Sea platform Large diameter pipe TMK Premium connections Oil settling tank Line pipe Petroleum refinery Oil storage Consumers ■ OCTG Goods TMK Oil Country Tubular (drilling, casing, tubing) used for oil & gas exploration, well fixing and oil & gas production Line pipe - used for short distance transportation of crude oil, oil products and natural gas ■ LDP large diameter pipe used for construction of trunk pipeline systems for long distance transportation of natural gas, crude oil and petroleum products 46 46#48TMK Appendix TMK 47#49TMK's Undisputed Market Leading Position in Russia Seamless OCTG TMK Threaded pipes for 65% O&G industry including drill pipe, casing and tubing TMK 57% Short-distance Line Pipe transport of crude oil, oil products and natural gas Industrial TMK 39% Automotive, machine building, and power generation sectors Source: TMK estimates, based on 1Q 2020 numbers TMK Welded TMK 10% Line Pipe Short-distance transportation of O&G and oil products TMK 86% TMK 3% Large Diameter TMK 8% Premium TMK Premium Connections (TMK UP) Premium connections are proprietary value-added products used to connect OCTG pipes and are used in sour, deep well, off- shore, low temperature and other high-pressure applications Construction of trunk pipeline systems for long distance transportation of O&G and petroleum products #1 in the Russian Tube and Pipe Market Industrial Wide array of applications and industries, including utilities and agriculture TMK 22% 48 88#50TMK Investor Relations 40/2a, Pokrovka Street, Moscow, 105062, Russia +7 (495) 775-7600 [email protected] Learn more About TMK www.tmk-group.ru TMK E-trade www.e-commerce.tmk-group.com Premium connections TMK UP www.tmkup.ru