Investor Presentaiton

• Domestic growth > Global HVA Market Presence Global High-value-added Market Presence Global niche player - high-margin product development NLMK commands 20% of global transformer steel market . • 2007 Key facts: Over 20% EBITDA generated from only 5% of sales by volume • 328,000 t of transformer steel 4 producers maintain over 60% global transformer steel market share • 395,000 t of dynamo steel Margins in the segment are protected by high entry barriers ~USD400 m Capex to upgrade to higher grades World electric power generation NLMK's transformer steel production KWh/hours, bn ,000 t 40,000 500 CAGR = 11% 30 364 400 30,000 24 959 22 289 300 19 554 20,000 16 424 17 350 280 200 328 10,000 100 120 0 0 + 2004 2005 2010E 2015E 2020E 2030E 2007 2015E ■Transformer steel ■Transformer steel (high grades) 15 Source: Energy Information Administration (EIA); World Markets Research Center, company estimates

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