Investor Presentaiton

Gross 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

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