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Investor Presentaiton

TMK Capital Structure and Dividend Policy Key Considerations TMK's securities are listed on the London Stock Exchange, the OTCQX International Premier trading platform in the U.S. and on Russia's major stock exchange - MICEX-RTS. As of 31 December 2013, 20.58% of TMK shares were in free float, with approximately 90% of them traded in the form of GDRs on the London Stock Exchange. As of 31 December 2013, the share capital of TMK was comprised of 937,586,094 fully paid ordinary shares or equivalent of 234,396,524 GDRs. One GDR represents four ordinary shares. TMK shares and GDRs are included into several major Russia indices: MSCI Russia, MICEX M&M, MICEX MC. Source: TMK Capital Structure as at December 31, 2013 Free Float Rockarrow Investments 0.11% TMK Bonds** S.A. 7.63% TMK Subsidiaries 0.01% 20.58% TMK Steel* (incl. affiliated companies) 71.68% Dividend Policy U.S.$ At least 25% of annual IFRS net profits is paid out as dividends. Starting 2007, dividends are usually paid semi-annually. TMK resumed dividend payments in 2010 as in 2009 the Company posted a net loss for the year due to global industry crisis. 1.8 30% 28% 1.6 25% 25% 25% 24% 25% 1.4 1.2 20% 1 15% 0.8 0.6 10% 0.4 5% 0.2 Net Loss for FY 2009 0 0% 2008 2009 Earnings per GDR 2010 â– Dividend per GDR 2011 2012 2013 Payout Ratio Source: TMK *The main beneficiary is Dmitry Pumpyanskiy, Chairman of the Board of Directors of TMK. **TMK Bonds S.A. owns 17,876,489 GDRs of TMK, representing 71,505,956 TMK shares, or 7.63% of the share capital, securing obligations to convert into GDR US$ 412.5 million bonds issued by TMK Bonds S.A. in February 2010 and maturing in 2015. The bonds may be converted at USD 22.308 per GDR. Source: TMK 35
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