#1Public Joint Stock Company "Chelyabinsk Pipe Plant" 0.3- -1,422 CHELPIPE GROUP Jo ВЫСОТ 239 FY2020 IFRS results and market overview February 2021#2CHEL PIPE GROUP This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of Public Joint Stock Company "Chelyabinsk Pipe Plant" (the "Company" and together with its consolidated subsidiaries the "Group"), nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. The information in this Presentation may include forward-looking statements, which are based on current expectations, projections and assumptions about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "plan", "project", "will", "can have", "likely", "should", "would", "could" and other words and terms of similar meaning or the negative thereof. These forward-looking statements include all matters that are not historical facts. These forward-looking statements as well as those included in any other information discussed in the Presentation are subject to known or unknown risks, uncertainties and assumptions about the Group and its investments, including, among other things, the development of its business, its growth plan, trends in its operating industry, its future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur and actual results, performance or achievements may materially differ from any future results, performance or achievements that may be expressed or implied in this Presentation. No representation or warranty is made that any forward-looking statement will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the Company and the Group cannot be relied on as a guide to future performance. Forward-looking statements speak as of the date of this Presentation and no one undertakes to release any update or revision of any such forward looking statement, whether as a result of new information, future events or otherwise. No statement in this presentation is intended to be a profit forecast. Accordingly, undue reliance should not be placed on any forward-looking statement contained in this Presentation. Certain industry, market and competitive position data contained in this Presentation come from official or third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but there is no guarantee of the accuracy or completeness of such data. While the Company reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, none of the Company, the Shareholders, the Banks, nor any of their respective subsidiary undertakings or affiliates, or its or their respective directors, officers, employees, advisers or agents, have independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in this Presentation come from the Group's own internal research and estimates based on the knowledge and experience of the Group's management in the markets in which the Group operates. While the Company reasonably believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this Presentation. Certain information contained in this Presentation is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are due to rounding. Certain financial information and operating data relating to the Group contained in this Presentation has not been audited and in some cases is based on management information and estimates, and is subject to change. This Presentation also includes certain non-IFRS measures, which have not been subject to a financial audit for any period and which may differ materially from similarly-titled measures used by other companies. The information in this Presentation has not been independently verified. The information and opinions contained in this Presentation are provided as at the date of the Presentation and are subject to amendment, completion and change without notice. In giving this Presentation, neither the Company, nor any of their respective subsidiary undertakings or affiliates, or its or their respective directors, officers, employees, advisers or agents, undertakes any obligation to amend, correct or update this Presentation or to provide the recipient with access to any additional information that may arise in connection with it. 2#3TABLE OF CONTENTS CHEL PIPE GROUP 1. Key Figures 2. Market Overview & Company Strategy 3. Financials Appendix 4 8 14 22 3#4KEY FIGURES वा CHELPIPE GROUP#5FY2020 KEY FIGURES & HIGHLIGHTS KEY HIGHLIGHTS REVENUE RUB 138 bn -28.2% Revenue was down due to decline in shipments as a result of economic slowdown on the back of COVID-19 pandemic Adjusted EBITDA (1) RUB 28.5 bn -10% EBITDA was supported by stable volumes of shipments in industrial pipe segment as well as the management's efforts aimed at cost optimization EBITDA margin 20.7% +4 p.p. Higher EBITDA margin as a result of increased share of HVA products in product portfolio, reduction of costs due to vertical integration and implementation of operating efficiency program CHELPIPE'S KEY PRODUCTS AND SERVICES Total pipe segment in adjusted EBITDA split: ~81% Seamless 50% Industrial pipes Oilfield Services 11% Approximate contribution to adj. EBITDA(2) 8% CHEL PIPE GROUP 28% Seamless O&G pipes Large diameter pipes 3% (LDP) and other welded pipes Trunk pipeline Systems & scrap KEY FINANCIALS RUB bn 2018 2019 2020 Revenue 178.8 192.3 138.0 Adjusted EBITDA 28.2 31.8 28.5 Margin 15.8% 16.6% 20.7% Net Debt 68.4 67.1 73.8(3) Net Debt / Adjusted EBITDA 2.4x 2.1x 2.6x Source: Company data, IFRS Financial Statements. The segmentation is made for business purposes only, IFRS reporting is based on 4 segments. (1) Adjusted EBITDA is determined as profit/loss for the period adjusted by finance income and costs, income tax, depreciation and amortization, foreign exchange gain/loss, change in fair value of derivatives, gain/loss on disposal of subsidiaries, gain/loss on disposal of property plant and equipment and intangible assets, impairment of loans receivable, interest receivable, property plant and equipment and intangible assets, advances for capital construction and intangible assets, impairment of goodwill, social and charity expenses not related to operating activities. (2) The Company estimates for contribution of various product groups to Company's adjusted EBITDA over the last 12 months. (3) The amount of cash & cash equivalents used to calculate Net Debt includes short term debt granted in December 2020 and fully repaid in February 2021.#6KEY EVENTS IN 2020 Q1 Q2 Q3 Q4 ChelPipe approved new strategy through 2024 ChelPipe adopted dividend policy ChelPipe supplied 600 t of ETERNO INGENIUM to Akkuyu NPP (Turkey) CHELPIPE GROUP ChelPipe issued RUB 10 bn bonds due 2025 ChelPipe issued RUB 10 bn bonds due 2023 and fully repaid RUB 5 bn bond issue in accordance with the bonds maturity schedule AGM elected new Board of Directors consisting of 7 members including 3 INEDS ChelPipe delivered >9.5 kt of LDPs for Samantepe gas pipeline in Uzbekistan ChelPipe signed MOU with ERIELL Group for >USD 75 mn aimed at implementation of O&G projects in Uzbekistan O О ChelPipe started IO-32 modernization to increase billets production to 1,350 kt p.a. ChelPipe launched modern water refining system AQA Genesis & AQA Crystal Pa 6#7CHELPIPE HOLDS LEADING POSITIONS IN ALL MAJOR STEEL PIPE SEGMENTS IN RUSSIA CHELPIPE GROUP SEAMLESS INDUSTRIAL PIPES (BY SALES VOLUME IN RUSSIA IN 2020) Import 13% 3% Other TMK 35% 0.7 mt LDP (BY SALES VOLUME IN RUSSIA IN 2020) Severstal 12% 8% Other TMK 13% 49% #1 CHELPIPE | GROUP SEAMLESS OIL & GAS PIPES1 (BY SALES VOLUME IN RUSSIA IN 2020) 7% Import #3 17% CHELPIPE GROUP Source: Company data, public data (1) Includes OCTG and welded pipes as they are highly substitutable 13% Other 13% OM K 2.6 mt #2 17% CHELPIPE GROUP TMK 50% 830 600 ZTZ ama me n 27% 1.5 mt 23% O OM K 7#8MARKET OVERVIEW & COMPANY STRATEGY ᎻᏂ . CHELPIPE GROUP 2#9BEST-IN-CLASS PRODUCER OF STEEL PIPES ONE OF THE LARGEST STEEL PIPE PRODUCERS GLOBALLY(1)... (2020 shipments, mt) 2,8 (2) TMK 2,4 #5 1,6 1,5 1,4 Tenaris (2) (2) Vallurec OMK Chelpipe Top-3 Producer in Russia CHELPIPE GROUP 1,2 0,9 0,5 (2) ArcelorMittal (2) S evers td US Steel WITH A STRONG POSITION IN THE RUSSIAN MARKET AND A PRESENCE IN ALL ATTRACTIVE PIPE SEGMENTS Seamless pipes LDP & other welded pipes (2020 shipments in Russia, mt) (2020 production, mt) Trunk pipeline systems (2020 production, kt) #2 1,6 1,1 0,5 #4 0,4 0,3 0,3 0,2 #2 15,2 10,0 6,9 TMK Chelpipe ZTZ OMK TMK Chelpipe ITZ OMK Chelpipe LMK Source: Company estimates based on public data. (1) Excluding Chinese producers. (2) Estimates based on production volumes for 9M 2020. a#10INDUSTRIAL SEAMLESS PIPE SEGMENT EXPANSION OF DOMESTIC VEHICLE MANUFACTURING CHELPIPE GROUP Domestic Cars Production LARGE INFRASTRUCTURE PROJECTS Domestic Trucks and Buses Production 戶盟 Reconstruction of Russian oil refineries modernization program power generation plants SEAMLESS INDUSTRIAL PIPES CONSUMPTION IN RUSSIA (kt) 788 769 770 714 Source: Company's data Venues construction for major sport events in Russia 2017 2018 2019 2020 10#11STABLE NON-CYCLE DEMAND FROM RUSSIAN O&G SECTOR NUMBER OF TOTAL RUNNING WELLS IN RUSSIA OIL PRODUCTIONS SLIGHTLY DECREASED IN 2020 Oil production (mn tonnes) 150,770 155,046 154,965 136,492 CHELPIPE GROUP 547 556 561 513 2017 2018 2019 2020 2017 2018 2019 2020 DRILLING ACTIVITY IS STEADY AND HAS BECOME MORE COMPLEX... (km) 48% 51% 48% 39% 28,8 28,7 28,4 28,0 CREATING STABLE DEMAND FOR OCTG (shipments of OCTG in Russia, mt) 2,3 2,3 2,3 2,2 2017 2018 Drilling Volume 2019 Share of Horizontal Drilling 2020 2017 2018 2019 2020 Source: Company data, Fastmarkets MB, corporate financial statements, FactSet, CDU TEK. Upstream taxes are based on Rosneft's and Lukoil's disclosure. Exchange rate and Brent price are based on FactSet data. Oil production and drilling volume are based on CDU TEK. 11#12LDP MARKET OVERVIEW LDP PRODUCTION IN RUSSIA 2017-2020 (shipments, kt) 2,975 RENOVATION AND REPAIR VOLUMES IN RUSSIA CHELPIPE GROUP 2017-2020 (kt) 1,419 2,850 2,685 1,182 1,149 381 760 861 878 324 1,077 1,846 207 391 359 225 229 212 445 187 2,090 2,113 238 146 1,607 169 1,487 392 385 400 297 2017 2018 2019 2020 Shipments to Russia Export 2017 ■Gazprom 2018 ■Trans neft 2019 ■IOC & Other Energy 2020 ■Industrial LDP segment is expected to recover in 2021 on both domestic and external markets. A number of projects have already been confirmed and tender procedures were launched. The key near term projects include: - North-South (Pakistan) - a natural gas pipeline running across Pakistan (1,100 km) – TAPI – natural gas pipeline in Turkmenistan through Afghanistan into Pakistan and then to India (1,600 km) -East African Crude Oil Pipe Line (EACOP) - crude oil export pipeline from Uganda to Tanzania (1,445 km) On top of the major trunk pipeline projects, domestic demand for LDP is driven by the on-going pipeline modernization programme of Gazprom and Transneft: - In 2020, Gazprom completed its tender for 1.3 mn tonnes of LDP. Shipments will start in 2021 - There is a stable demand from Transneft for around 200-300 kt of LDP Oil companies and other energy companies have a stable recurring demand for LDP of c.100-200 kt p.a. Companies in the industrial sector are expected to resume projects delayed during the pandemic Source: Fastmarkets MB, Company data. 12#13STRATEGY THROUGH 2024 STRATEGIC PRIORITIES RESULTS SO FAR CHELPIPE GROUP METALLURGY PHILOSOPHY AND CLIENT-CENTRIC TRANSFORMATION Enhance client services and ad-hoc solutions Digitalization DEVELOPMENT OF PRODUCT OFFERING Product mix improvement + by investing in HVA niche + products Advanced corporate culture and organizational structure ES G initiatives Export sales expansion Adjusted EBITDA remained high Only 10% decrease as compared to 2019 vs Revenue down by 28.2% Y- O-Y EBITDA margin increased to 20.7% +4 p.p. as compared to 2019 in line with the Company's strategy OPERATIONAL EFFICIENCY IMPROVEMENTS Operating efficiency program with tangible results for '17-'20: >US$200mn in total + Clear areas for further improvements: Cutting 2.5% of costs p.a.(1) Aim to become #1 Pipe company globally by adjusted EBITDA margin in the medium term and to increase adjusted EBITDA by c.30% Source: Company data. (1) Total costs of Chelpipe subtracting raw material costs: steel scrap and steel plate. RUB -5 bn of operating costs savings +40% better than expected in 2020 13#14FINANCIALS CHELPIPE GROUP LUBAS.de 22000Kr 3#15FINANCIAL PERFORMANCE KEY FINANCIAL METRICS RUB bn 15.8 178.8 28.2 2018 ADJUSTED EBITDA BRIDGE RUB bn *excl. D&A 192.3 16.6 138.0 31.8 20.7 2019 2020 Revenue ADJUSTED EBITDA - EBITDA margin (%) 28.5 31,8 (54.3) 57 3,0 5,7 0,8 (0,4) 28,5 41,9 CHELPIPE GROUP EBITDA 2019 Revenue difference COGS * Distribution costs * G&A* Impairment of as sets Others EBITDA 2020 15#16SEGMENT PERFORMANCE OVERVIEW STEEL PIPE PRODUCTION(2) REVENUE FROM EXTERNAL CUSTOMERS (RUB bn) ADJUSTED EBITDA (1) COMMENTARIES (RUB bn) 15% 16% 20% 173,4 163,4 27,6 24,3 24,3 119,6 2018 2019 2020 2018 2019 CHELPIPE GROUP 2020 33 3,3 • LDP segment saw major decline in shipments, however, total volume of shipments of OCTG and Industrial pipes remained stable, which partly offset decrease in EBITDA despite the decrease in revenue High cost efficiency as well as increased share of high value- added products in the product portfolio allowed to achieve higher EBITDA margin A slight decrease in revenue is primarily attributed to OPEC+ deal Revenue was supported by the expansion into FS U countries as well as export sales into Africa and Middle East mainly in artificial lift segment as well as increased share of direct sales volumes in Russia EBITDA improvement is driven by increased utilization at the main manufacturing facilities and massive cost reduction 13,6 22% 25% 25% 13,2 12,3 OILFIELD SERVICES 3,4 2,7 2018 2019 2020 2018 2019 2020 TRUNK PIPELINE SYSTEMS 3,1 5,3 35% 17% 17% 42 5,2 1,1 0,9 0,9 60 2018 2019 2020 2018 2019 EBITDA margin (3) 2020 Source: IFRS Financial Statements. Numbers may not add up due to rounding (1) Does not include inter-segment adjustments (in 2017 amounted RUB 409mn, in 2018 amounted to RUB 74mn and null in 2019) (2) Include results of Scrap procurement division (3) Calculated as adjusted EBITDA (excl. inter-segment adjustments) divided by the revenue from external customers Trunk pipeline systems revenue linked to S teel pipes revenue, especially to LDP sales (due to complementary nature of trunk products) Decrease in volumes of pipes shipments was partly offset by diversification of products and sales 16#17COSTS ANALYSIS COGS AND SG&A (RUB bn) 166,5 CHELPIPE GROUP REVENUE TO ADJUSTED EBITDA BRIDGE 2020 (excl. D&A) (RUB bn) 157,2 Revenue 138,0 35,0 Cost of Sales (90,3) 35,5 118,0 7,9 6,9 14,4 Distribution costs (7,1) 15,9 31,7 23,3 20,6 G&A expenses |(12,5) 8,0 13,1 Other 2 0,5 78,3 86,0 20,5 44,7 Adjusted EBITDA 28,5 2018 2019 2020 ■Raw materials COST OF SALES 2020 (excl. D&A) ■Salaries and S dary Taxes ■ Overheads and Repairs D&A - Other DISTRIBUTION COSTS 2020 (excl. D&A) (RUB bn) 6.3 12.2 10.2 (RUB bn) G&A COSTS 2020 (excl. D&A) (RUB bn) 0.6 0.9 0.4 1.7 1.0 1.4 6.8 44.7 16.3 0.5 RUB7.1 bn 3.9 RUB90.3bn(1) 3.0 RUB12.5 bn Raw Materials Cost of Goods for Resale Production Overheads & Repairs Salaries and Salary Taxes Energy and Utilities Other Transportation, Surveyor and Customs Expenses Commission Packaging, storage and handling Other Salaries and Salary Taxes Non-production Overheads Consultancy, audit and legal services Other and Repairs Salaries and Salary Taxes Source: IFRS Financial Statements. Numbers may not add up due to rounding error. (1) Includes adjustments for changes in allowances for inventory obsolesce and changes in balances of work in progress and finished goods (2) Includes adjustments for impairment of assets and loans and interest receivable, adjustments for social and charity expenses, etc. 17#18OPERATIONAL EFFICIENCY IMPROVEMENTS CUMULATIVE SAVINGS (RUB bn) >US$200mn 14,7 4.9 9,8 3,0 6,8 ات 2,7 2017 2018 2019 2020 KEY OPERATING EFFICIENCY IMPROVEMENTS IN 2020 4 Energy efficiency: launch of internal generation TT SAVINGS BREAKDOWN IN 2020 (RUB bn) Transportation Cost Reduction 0.70.2 Smart Equipment Staffing Optimization 1.5 RUB 4.9 bn Production Efficiency Gain 2.5 Optimization of maintenance and repair processes Focus on high margin business Digitalization: implementation of comprehensive digital solutions to increase productivity Own steel making covers over 90% of our billets demand Reduction of production costs: supplies procurement optimization, furnace quality improvement Improving logistics: increased share of car transportation, higher capacity utilization Source: Company data. CHELPIPE GROUP 18#19CAPEX MANAGEMENT CAPEX DYNAMICS (RUB mn) 4.7% IT strategy 3.1% 7,558 6,564 Innovative projects / Big data analysis 2,484 R&D 2,720 Ecological projects MAIN CAPEX ACTIVITIES (RUB mn) Expansion Projects Operational efficiency program & modernization / Artificial intelligence solutions CHELPIPE GROUP 2,720 60 1,095 5 210 572 Projects in oilfield services 51 2,767 TOTAL CAPEX + 30% Scrap division improvements 343 1,950 Other projects 384 Maintenance projects 1,950 2,307 1,893 Pipe division 1,637 Rimera (rolling scheme) 1,893 2019 ■Rimera (rolling scheme) 2020 TOTAL CAPEX(1) 6,564 Maintenance Expansion projects CAPEX as % of revenue (1) Excluding one-off expense (investments in intangible assets). 19#20LOAN PORTFOLIO DEBT BREAKDOWN (as of 31 Dec 2020) BY CURRENCY 72% RUB 62.4 bn RUB 86.9 bn 28% RUB 24.5 bn 73% RUB 63.5 bn BY INTEREST RATE RUB 86.9 bn LEVERAGE EVOLUTION (RUB bn) 2,4x 2,6x 2,1x 27% RUB 23.4 bn 73,8 68,4 67,1 2018 2019 2020 Fixed Floating Net Debt Net Debt/ Adjusted EBITDA Russian rubles Foreign currency DEBT REPAYMENT SCHEDULE (RUB bn, as of 31 Dec 2020) Put option on RUB 9.9 bn 43,9 13,1 (1) bond maturing in 2027 21.9 30,8 Liquidity position 2021 17,4 11.5 2022 Cash & cash equivalents Undrawn committed credit lines Source: Company data, IFRS Financial Statements. (1) Cash & cash equivalents include short term debt granted in December 2020 and fully repaid in February 2021. 28,5 CHELPIPE GROUP 10,3 2023 2024 2025 Debt to be repaid 20 20#21ESG INITIATIVES IN 2020 MAIN PRINCIPLES Personnel is our core value competitive compensation, health insurance, educational programmes Safety & Quality control improvement of production facilities aimed at prevention of incidents and LTIFR reduction SUSTAINABLE DEVELOPMENT Water treatment Energy efficiency Waste disposal 10 Responsible production projects aimed at reduction of negative impact on the environment RECOGNITION ISS ESG‣ SUSTAINABLE DEVELOPMENT GOALS ESG Corporate Rating D+ We support SDGs and integrated them into our development strategy until 2024 *As compared to 2019 Transparency dear dividend policy, commitment to best-in-class corporate governance B . LTIFR CHELPIPE GROUP -35% fresh water use* -30% energy use* +10% waste recycled* • Urban development Professional education . Charity projects RUB 440 mn >9,000 ppl RUB 188.3 mn Disclosure • Board committees Board composition Public disclosure 5 committees 3 INEDs out of 7 BM -32.5% 1,74 1,59 1,36 1,08 2017 2018 2019 2020 21#22APPENDIX CHELPIPE GROUP#23VERTICAL INTEGRATION AND STRONG SUPPLIER BASE BILLETS SUPPLY STRUCTURE (000 tn) 1,449 STEEL PLATE PURCHASING STRUCTURE 1,464 1,471 1,392 CHELPIPE GROUP 18% 17% 2% 16% 20% 74% 42% 43% 78% 86% 79% 91% 2017 2018 ■Metalloinvest ■Evraz UMMC 2019 2020 Others ind. imports ■IO-32 HIGH LEVEL OF VERTICAL INTEGRATION IN THE PROCESS OF SEAMPLESS PIPE PRODUCTION Scrap metal collection Iron Ozon 32 Seamless pipes production Meta Group Pipe billet production Source: Company data Pipe-rolling workshops of Pervouralsk and Chelyabinsk pipe plants 59% 40% 41% 17% 2017 2018 2019 2020 ■ MMK ■Metalloinvest ■S evers tal Others ind. imports ADVANTAGEOUS LOCATION OF CHELPIPE NEAR STEEL PLATE SUPPLIERS MMKO Chelpipe Metalloinvest Metalloinvest Chelpipe MMK 23#24SCRAP PROCESSING DIVISION KEY DEVELOPMENTS IN 2020 ✓ Over RUB 400 mn saved in 2020 as a result of cost optimization program ✓ Improved efficiency of production facilities through assets restructuring New sub-divisional management system formed in June 2020 ✓ Scrap collection increased by 3% year-on-year In the 2nd half of 2020, META resumed collection of nonferrous scrap, which already brought RUB 0.7 bn of income KEY GEOGRAPHIC REGIONS IN 2020 No Region 1 2 3 Sverdlovsk Region Chelyabinsk Region Perm Territory 4 KhMAD 5 Ulyanovsk Region 6 Tyumen region 7 Samara Region 8 Kirov Region 9 Saratov Region 10 Kurgan Region 11 Mari El PNTZ¹ CHELPIPE GROUP META BENEFITS ✓ Strong collection and processing network generates scrap at below market prices ✓ Proximity of scrap collection to manufacturing facilities in Pervouralsk and Chelyabinsk provides competitive advantage via minimized transportation costs SCRAP METAL SALE DYNAMICS AND DEMAND FOR METAL FOR BILLET PRODUCTION (kt) KEY PARTNERSHIPS M MAGNITOGORSK IRON & STEEL WORKS NLMK Severstal 1,382 1,373 315 212 1,350 186 EVRAZ TMK Metalloinvest amet 2020 КРАСНЫЙ ОКТЯБРЬ 1,067 1,161 1 164 ✓ Additional cost savings from in-house processing compared to purchased scrap 2018 2019 ■Sales to PNTZ (META) ■External client sales (META) Source: Company data (1) Pervouralsk pipe plant УГМК UMMC ДЭМЗ 24 24#25OILFIELD SERVICES KEY GEOGRAPHIC REGIONS CHELPIPE GROUP SEGMENT OVERVIEW • • RIMERA Group includes ALNAS, JSC RIMERA, Izhneftemash, RIMERA- Service and TOO RIMER A-Kazakhstan. The Company produces, sells and rents out oil well extraction equipment (such as ESP(1) systems), as well as SRPS (2), beam pumping units, custom vehicles, tubing pipe couplings, completion equipment for hydraulic fracturing. In 2020, RIMERA Group continued to grow in Russia and in foreign countries. The share of direct sales in sales portfolio increased by ca.20% year-on-year, which supported top line and allowed to reduce CAPEX and debt The share of wells serviced by RIMERA has been decreasing over the past two years as in 2019 the Company started its optimization program aimed to replace inefficient wells in portfolio with the profitable ones No. Region 1 Republic of Tatarstan 2 Udmurt Republic 3 Orenburg region 4. Khanty-Mansi Autonomous region - Yugra Nizhnevartovsk Nyagan Yamal-Nenets Autonomous region 5. Noyabrsk Muravlenko PRODUCTION VOLUME 10,435 9,367 10,221 11,044 48% 42% 38% 47% ■ Production Service net SHARE OF ESP WELLS SERVICING IN RUSSIA 52,277 55,866 20% 21% 58,538 50,939 12% 10% 80% 79% 88% 90% 52% 58% 62% 53% 2017 2018 2019 2020 2017 2018 2019 2020 ■Sucker rod pumps ■Electric submersible pumps ■Wells not serviced by RIMERA ■Wells serviced by RIMERA Source: Company data (1) Electric submersible pump; (2) Sucker-rod drilling pumps 25 25#26ASSETS MAP - STRATEGIC LOCATION FeO PERVOURALSK PIPE PLANT ⚫ Pervouralsk Pipe Plant is focused on seamless industrial pipes and seamless oil & gas pipe products Capacity: 1.2 mt of seamless pipes, 0.1 mt of welded pipes, 1.25 mt of steel billets висота 39 CHELYABINSK PIPE PLANT • • Chelyabinsk Pipe Plant is primarily focused on LDP, seamless industrial pipes, and pipeline parts Capacity: 1.65 mt of welded pipes (incl. LDP), 0.5 mt of seamless pipes 3TEP FINISHING CENTER PERVOURALSK WORKSHOPS IRON OZON 32 VYSOTA 239 CHELYABINSK WORKSHOPS ETERNO Czech Republic MSA Moscow Stop valves Izhevsk RUSSIA ⚫ Ball valves Almetievsk Check and special valves Pervouralsk Chelyabinsk ALNAS ESP units production 3,910 pcs sold in 2019 IZHNEFTEMASH SRP units production 6,311 pcs sold in 2019 RIMERA-SERVICE • Service and lease of oil and gas production equipment META Scrap processing 90 production sites 13 regions of Russia Source: Company data as of December 31, 2019. O Pipe Products & Scrap Oilfield Services O Pipeline Equipment META and Rimera regional presence 26#27IFRS STATEMENTS SUMMARY BALANCE SHEET RUB bn Cash & cash equivalents Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Total equity Total equity and liabilities (1) Excluding short term debt in the amount of RUB 4.9 bn granted in December 2020 and fully repaid in February 2021. CHELPIPE GROUP 2019 2020 21.1 8.2(1) 81.0 65.4 67.1 66.2 148.1 131.6 74.6 44.4 67.8 79.2 142.4 123.6 5.7 8.0 148.1 131.6 27#28IFRS STATEMENTS SUMMARY INCOME STATEMENT RUB bn Revenue COS EBITDA Margin (%) Operating profit Margin (%) Profit before income tax Margin (%) Net income Margin (%) Basic EPS (RUB/share) CHELPIPE GROUP 2019 2020 192.3 138.0 (138.1) (97.1) 31.8 28.5 16.6 20.7 22.5 18.0 11.7 13.0 13.6 8.4 7.1 6.1 10.0 6.2 5.2 4.5 32.5 20.4 28#29IFRS STATEMENTS SUMMARY CASH FLOW STATEMENT CHELPIPE GROUP 2019 2020 RUB bn Profit before income tax 13.6 8.4 Adjustments for depreciation and amortization 7.9 8.0 Adjustments for finance costs 9.5 7.8 Operating cash flows before working capital changes 33.8 28.0 Cash generated from operations (after interest) 18.7 9.7 Purchase of PPE & intangible assets (CAPEX) Net cash used in investing activities Proceeds from borrowings Repayment of borrowings (7.6) (9.8) (9.3) 12.4 61.8 77.5 (64.3) 83.0 Dividends paid to owners of the Company (4.7) (5.5) Net cash used in financing activities (8.3) (12.0) Increase/(decrease) in cash & cash equivalents (0.4) (12.9) Cash & cash equivalents at beginning of period 21.6 21.1 Cash & cash equivalents at end of period 21.1 8.2 Free cash flow 11.1 (0.2) 29#30CONTACTS 0.3- -1,422 H 贝 CHELPIPE GROUP Department of corporate finance & investor relations Petr Voloshin +7 (495) 933-27-80 Ekaterina Romanova +7 (495) 933-27-80 # 44436 Moscow, Skolkovo Innovation Center n" Bolshoy Boulevard, 40 ☑ [email protected]