Investor Presentaiton

Changing approach to product mix Traditional approach of supplying conventional product at market prices ☐ Focus now on supplying higher value, higher margin product Seamless OCTG sales now account for 35% of Russian sales, 5yr CAGR 6% However, LDP demand is underpinned by multiple construction projects eg. South Stream Pipeline Gross margin, % 30% 28% 65% 27% 26% 26% 25% 20% 15% 10% 5% 53% 0% 2010 Source: TMK data 60% 62% 55% 59% 58% 2011 Share of seamless tubes in revenues 2012 50% 3Q 2013 Seamless tubes gross margin Share of seamless product in revenues (%) TMK 12

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