Investor Presentaiton

Domestic growth > Russia Russia: Market Development Trends Sustainable growth and attractive opportunities • A GDP growth of 135% from 2007 to 2012* supported by ... • industrial production growth of 6.3% y-o-y 21% y-o-y growth of fixed assets investments Steel demand by industry • . Projected finished steel consumption to grow by 100% from 36 m t to over 70 m t** in 2015, a CAGR of 8% Substantial incremental demand for steel will come from Construction industry (18%) 7% • ■Construction 20% 33% ■Machinebuilding Infrastructure ■ Automotive 20% 20% ■ Other • Power utilities sector (5%)** • Machine-building (19.3%) • Consumer goods (16%) Equipment and vehicles (16%)*** Governmental initiatives in... • • Housing space per person to increase 60% by 2020 Infrastructure spending over USD 550 bn by 2015 Power generation to grow by 200 m kWh/h (2007-20) Investments in infrastructure*,** Roads (2008-30) Power grids (2008-12) Ports (2008-20) 3.8 Railways (2008-30) 185 330 500 100 200 300 400 500 USD, billion * Ministry for Economic Development report, May 2008 **Company estimates, RenCap, Mi *** 2007 sector growth on y-o-y basis 8

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