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Investor Presentaiton

TMK Environmental Protection Environmental management system TMK is consistently managing our environmental efforts to ensure continuous improvement of our environmental performance and manage environmental risks across TMK's facilities. Eleven of the Company plants have implemented an ISO 14001 compliant environmental management system. All the certified plants were audited and confirmed compliance with the standard during the year. Six company's plants confirmed their compliance with updated ISO 14001:2015. Emission control TMK's facilities comply with the legislation covering air emissions inventory, regulation, and control, as well as operations in adverse weather conditions. Our emissions control activities ensure compliance with the prescribed air emissions limits. As a result, our total pollutant emissions decreased in 2017 by 10% to 11,100 tonnes. TMK compiles an inventory of greenhouse gas (GHG) emissions on an annual basis. Waste management The existing industrial waste management system is focused on practical procedures to reduce, recycle, and reuse waste, as well as reduce waste disposal. Water management Under TMK's Environmental Policy, the Company's water management strategy focuses on reducing water consumption and mitigating negative impact on water bodies. In 2017, the share of recycled water supply at TMK reached 95,46%. $37 mln TMK total environmental expenditures in 2017 increased by +50% y-o-y -2.4% y-o-y GHG emissions -5% y-o-y Overall water consumption 23 CAPEX projects to ensure legal compliance and environmental protection in 2017 -10% y-o-y Total pollutant emissions 95.46% Share of recycled water supply TMK supported the year of the environment held in Russia in 2017 as a nation-wide initiative. was 2017 YEAR OF ECOLOGY IN RUSSIA the TMK awarded environmental proactive policy during the year of the environment award by the Ministry of natural resources environment of the and Russian Federation. 150 at Local and corporate-wide initiatives implemented TMK's Russian division plants in the year of environment 33 33
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