Investor Presentaiton

Vertically Integrated Model Ensuring Margin Resilience Production chain Scrap Hot Briquetted Iron (HBI) Scrap TMK Deeper integration provides better resilience in margins Seamless products Own production perimeter 24% 25% 26% 28% 24% 25% 23% Share in 1Q 2020 Gross profit 320 303 268 255 244 95% 208 206 Electric Arc Furnace Billets Pipe making facilities 2014 2015 2016 2017 2018 2019 - Scrap (FOB Black Sea), average purchase price (US$/t) -Gross profit margin of seamless products, % 1Q20 Welded products 12% 13% 10% 8% 8% 8% 5% Steel coil Coking coal External Steel Making/ Flat Rolling 531 551 500 387 460 472 347 Pipe making facilities 2014 2015 2016 2017 2018 2019 1Q20 Steel plate -Hot Rolled Coil (FOB Black Sea), average purchase price (US$/t) Own production perimeter - Gross profit margin of welded products, % Source: Metal Expert, Bloomberg Iron ore 1 2 3 4 One of the lowest cost + regions for steel production Vertically integrated seamless pipe production + Longstanding relationship with major scrap, HBI and steel suppliers + Ability to pass costs onto consumers under long-term contracts with a pricing formula = TMK ■ Seamless ■ Welded Share in 1Q 2020 Gross profit 5% ■ Welded ■ Seamless Ability to maintain resilient margin irrespective of steel price cycle 7

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