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Goldman Sachs Sixth Annual Global Steel Conference
30 November 2010


Mike Rehwinkel, Chief Executive Officer, Evraz Inc. NA
Evraz Group: World-Class Steel and Mining                                                2


    Company
      14th largest steel company in the world based on 2009 crude
      steel production volumes
      One of the world’s lowest cost steel producers due to
      production efficiency and high level of vertical integration
      Leader in the Russian and CIS construction and railway
      markets
      A leading play in the European and North American plate and
      large diameter pipe markets
      One of the leading producers in the global vanadium market
      In 2009, Evraz produced 15.3 million tons1 of crude steel,
      11.3 million tons of pig iron and 14.3 million tons of rolled
      products
      9m 2010 revenue and EBITDA were $9.7 billion and $1.8
      billion, respectively
      Equity market capitalization (LSE: EVR) of $13.5 billion as
      of 26.11.2010

1
    All the volumes listed here and further refer to metric tonnes unless noted otherwise.
Evraz’s Global Business                                                                        3




                                                                        1
                                                                    9

                                                               16           14
                                                     20    18 17            15        21
                    19




                                                          19




A global and diverse footprint that allows Evraz Group to capitalize on growth and development
opportunities.
Growth Continues Across the Globe                                                                                                            4



            Geographic diversification of the business continued with every market, except for Asia,
            experiencing an increase in sales in 9 month 2010 compared to 9 month 2009

            Steel product sales volumes in the Americas market grew 24% in 9 month 2010 compared
            to 9 month 2009

            Shale gas exploration projects have generated strong demand for small diameter pipe

                                                             Steel Product Sales by Market
    000 tonnes
                                                                                           US$ million
5,000        4,631
                                     4,244                                         4,000

4,000    3,616                                                                                  3,009
                                             3,341
                                                                                   3,000
3,000                                                                                                         2,031
                             1,939                                                          1,765         1,679       1,6621,750
                                                                                   2,000
2,000                    1,560
                                                        900 1,108                                                                          738
1,000                                                                 386 445      1,000                                             516
                                                                                                                                                   243 335
   0                                                                                  0
        Russia & CIS     Americas      Asia             Europe      Africa & RoW           Russia & CIS   Americas      Asia          Europe     Africa & RoW


                     9 month 2009                    9 month 2010                                   9 month 2009                   9 month 2010
Evraz North America History                                                                  5


2007      Evraz Group SA (LSE: EVR) acquired Oregon Steel Mills (NYSE:
          OSM) for $2.3 billion
          Portland, OR is named the Evraz North American
          headquarters
2008      Evraz Group acquired Claymont Steel (NASDAQ: PLTE) for
          $413 million
          Evraz Group acquired the Canadian assets of IPSCO for $2.4
          billion, net of sale of IPSCO’s U.S. businesses to OAO TMK

          Acquisitions comprise Evraz’s North American operations and,
          collectively, are a wholly-owned subsidiary of Evraz Group

2010      Mike Rehwinkel joins Evraz Inc. NA as CEO
          North American operations are restructured into three primary
          product groups, serving unique end markets
          Glenda Minor joins Evraz Inc. NA as CFO


Approximately $5 billion has been invested by Evraz Group to create a leading North American
steelmaker with significant scale, reach and diversification.
Diverse and Advantageous Geographic Positions                                                                             6


                                             Flat Products                Location       Capabilities                  Capacity *
                                             Evraz Oregon Steel           Portland, OR   Steckel rolling mill              1,213
                                                                                         Heat treating                       138
                                                                                         Coil processing line                220
                                                                                         Structural tubing mill              165
                                             Evraz Claymont Steel         Claymont, DE Melt shop and slab caster             496
                                                                                       Plate mill                            463
                                             Evraz Regina Steel           Regina, SK     Melt shop and slab caster         1,323
                                                                                         Plate mill                        1,213
                                                                                         Coil processing line                165
                                                                                         Slitter                             606
                                             Evraz Surrey Works           Surrey, BC     Coil processing line                165
                                             Tubular Products             Location       Capabilities                  Capacity*
                                             Evraz Oregon Steel Tubular   Portland, OR   2 spiral pipe mills                 220
                                             Evraz Regina Steel Tubular   Regina, SK     24” ERW mill                        331
                                                                                         2” ERW mill                          77
                                                                                         4 spiral weld DSAW mills            551
                                             Evraz Calgary Works          Calgary, AB    ERW mill                            353
                                                                                         Heat treating                       127
                                                                                         Threading                           331
                                             Evraz Red Deer Works         Red Deer, AB ERW mill                              171
                                                                                       Threading                             127
                                             Evraz Camrose Works          Camrose, AB ERW mill                               132
                                                                                      DSAW mill (U-O-E)                      276
Broad geographic reach with significant      Evraz Rocky Mountain Steel   Pueblo, CO     Seamless pipe mill                  165
stronghold in the western U.S. and Canada,   Long Products                Location       Capabilities                  Capacity*

close to key end-markets.                    Evraz Rocky Mountain Steel   Pueblo, CO     Melt shop and billet caster       1,102
                                                                                         Rail mill                           573
                                                                                         Rod/bar mill                        551
                                              *Capacity in 1000s of tonnes
Evraz North America Snapshot                                                                              7


  Leading North American steelmaker with a diverse product portfolio and broad geographic reach
  Largest rail and large diameter pipe (LDP) producer in North America
  4.3 million tonnes rolled steel capacity, 3.0 million tonnes melt shop capacity and 2.3 million tonnes
  tube making capacity
  Integrated supply chain with captive slab and scrap sourcing and downstream processing facilities


               Flat Products            Tubular Products                    Long Products
Products        Plate and coil           Large and small diameter pipe        Rail and head-hardened rail
                Slit coils               Oil Country Tubular Goods (OCTG)     Wire rod and coiled
                Structural tube and      Welded and seamless pipe and         reinforcing bar
                cut-to-length plate      casing




Facilities     Portland, Claymont,      Regina, Camrose, Calgary, Red       Pueblo
               Surrey, Regina           Deer, Portland and Pueblo




Leading steelmaker in North America enjoying integration, critical mass and product breadth and
depth to ensure long-term stability of the business.
Broad Product Offering with Specialty Steel                                                                              8


      Focus
          Evraz specialty steel products serve broad end-markets across a wide spectrum of specifications
          Approx. 70% of product portfolio is geared toward non-commodity sizes and specifications

                Flat Products                                Tubular Products                      Long Products
Product          Plate                                        Large diameter API-grade line pipe    Rail
                 − Hot-rolled, strip mill and heat-treated     − Oil and gas transmission           − Deep head-hardened and
Range            − Thickness: 3/16” to 8”; Width: 48” to                                              standard carbon
                   154”; Length: 96” to 1200”                 OCTG welded
                                                               − Largest ERW producer in western    Wire rod
                                                                 Canada                             − Welding wire
                 Coiled plate                                  − 2 3/8” to 24” diameter             − Wire rope
                 − Welded pipe and structural tubing                                                − Tire bead and cord
                 − Thickness: 0.09” to 0.75”; Width: 48”      OCTG seamless casing
                   to 120”                                     − 7” to 9 5/8” diameter              Coiled reinforcing bar




Key              Bridge                                       Oil and gas exploration and           Rail and transportation
Markets          Armor                                        transmission                          Tires
                 Power transmission                                                                 Infrastructure
                 Mining                                                                             Specialty rod markets
                 Shipbuilding
                 Railcar



Broad product offering ensures revenue stability and flexibility to address evolving market conditions.
Focus on Higher Value Products: A Specialty, not   9


A Department Store
Historical North America Production                                      10


Performance

Production Mix (1000s of tonnes)




                       Flat



Production has improved from trough levels and prices have stabilized.
Technological Expertise Driving Product                               11


 Development

   Innovation Institute with 20+ technicians and engineers
     – Enables Evraz North America to stay ahead of customers’ needs

   Current product development initiatives:
     – Lighter gauge armor plating
     – Thinner wall, higher strength steel for API applications
     – Higher strength heat treated plate for crane applications

   Exclusive North America license for patented rail head-hardening
   technology

   Focus on continuously improving quality process
Technology innovation focused on our customer’s customer.
A Focus on the Customer’s Customer                                            12




Focusing on the end user will advance our market
place presence
     Supply chain:
        ─ Identify
                 unrealized efficiencies, opportunities for
          process improvement

      Market Drivers:
        ─ Determine  where to invest based on where the
          market will be
        ─ Building brand preference for our products will create
          long-term success for our businesses
We will forge a strong connection with our customers....knowing everyday our
customers will choose the best partner.
Market Fundamentals are Improving                                                                  13




     Steel prices have increased since the beginning of the 2010 and are
     significantly improved from 2009 lows

     Service center inventory levels remain low

     Capacity utilization and shipments have increased as steel demand has
     improved

  North America Service Center Inventory     U.S. Mill Shipments & Capacity Utilization
(millions of tonnes)




                                                                                            *




Source: MSCI.                              Source: AISI, AMM.

                                                                   * Shipments are in short tons
Demand is Stabilizing                                                                                                                                                 14

                                                                    U.S. Freight Rail Projected Annual Demand
                                                                    (000s tons)


 Global steel consumption remains on an
 upward trajectory
 Energy Sector: Demand has increased
   ─ North American rig count surged
   ─ Natural gas and oil prices stabilizing
 Rail: Demand steady
   ─        Demand growth expected to increase gradually
   ─        By 2020, new rail demand expected to exceed
            historical rates
                                                                  Source: AAR; Cambridge Systematics; SCT; Booz & Company Analysis
                                                                  Note:   Considers 2009 as a base year for projection, Excludes Class 2 and regional freight rail.




   Global Steel Consumption                                North America Rig Count




 Source: Bloomberg and World Steel Association.        Source: Baker Hughes.
Evraz North American Strategy                                                           15



Significant scale and geographic advantage
 − East Coast: Delaware
 − Northwest/Central: Oregon, Colorado
 − Canada: Saskatchewan, Alberta


Market leadership in high margin specialty steel products
 − OCTG: largest ERW producer in western Canada
 − Rail: leading market share in North America
 − Large diameter pipe: #1 producer in North America


Key end-markets with resilience throughout market cycles
 – Oil and gas: recurring demand due to replacement cycles and rising demand
 – Rail transportation: capex for maintenance to ensure safety and reliability
 – Infrastructure: U.S. infrastructure investments, particularly in bridges and power
   transmission projects
A Company Defined By Its Values     16




 Create Value

 Passion for Improvement

 Lead with Humility

 Ownership of Results

 Enrichment through Collaboration
+7 495 232-13-70
  IR@evraz.com
 www.evraz.com

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Goldman sachs 6th annual global steel conference, 30 ноября 2010

  • 1. 1 Goldman Sachs Sixth Annual Global Steel Conference 30 November 2010 Mike Rehwinkel, Chief Executive Officer, Evraz Inc. NA
  • 2. Evraz Group: World-Class Steel and Mining 2 Company 14th largest steel company in the world based on 2009 crude steel production volumes One of the world’s lowest cost steel producers due to production efficiency and high level of vertical integration Leader in the Russian and CIS construction and railway markets A leading play in the European and North American plate and large diameter pipe markets One of the leading producers in the global vanadium market In 2009, Evraz produced 15.3 million tons1 of crude steel, 11.3 million tons of pig iron and 14.3 million tons of rolled products 9m 2010 revenue and EBITDA were $9.7 billion and $1.8 billion, respectively Equity market capitalization (LSE: EVR) of $13.5 billion as of 26.11.2010 1 All the volumes listed here and further refer to metric tonnes unless noted otherwise.
  • 3. Evraz’s Global Business 3 1 9 16 14 20 18 17 15 21 19 19 A global and diverse footprint that allows Evraz Group to capitalize on growth and development opportunities.
  • 4. Growth Continues Across the Globe 4 Geographic diversification of the business continued with every market, except for Asia, experiencing an increase in sales in 9 month 2010 compared to 9 month 2009 Steel product sales volumes in the Americas market grew 24% in 9 month 2010 compared to 9 month 2009 Shale gas exploration projects have generated strong demand for small diameter pipe Steel Product Sales by Market 000 tonnes US$ million 5,000 4,631 4,244 4,000 4,000 3,616 3,009 3,341 3,000 3,000 2,031 1,939 1,765 1,679 1,6621,750 2,000 2,000 1,560 900 1,108 738 1,000 386 445 1,000 516 243 335 0 0 Russia & CIS Americas Asia Europe Africa & RoW Russia & CIS Americas Asia Europe Africa & RoW 9 month 2009 9 month 2010 9 month 2009 9 month 2010
  • 5. Evraz North America History 5 2007 Evraz Group SA (LSE: EVR) acquired Oregon Steel Mills (NYSE: OSM) for $2.3 billion Portland, OR is named the Evraz North American headquarters 2008 Evraz Group acquired Claymont Steel (NASDAQ: PLTE) for $413 million Evraz Group acquired the Canadian assets of IPSCO for $2.4 billion, net of sale of IPSCO’s U.S. businesses to OAO TMK Acquisitions comprise Evraz’s North American operations and, collectively, are a wholly-owned subsidiary of Evraz Group 2010 Mike Rehwinkel joins Evraz Inc. NA as CEO North American operations are restructured into three primary product groups, serving unique end markets Glenda Minor joins Evraz Inc. NA as CFO Approximately $5 billion has been invested by Evraz Group to create a leading North American steelmaker with significant scale, reach and diversification.
  • 6. Diverse and Advantageous Geographic Positions 6 Flat Products Location Capabilities Capacity * Evraz Oregon Steel Portland, OR Steckel rolling mill 1,213 Heat treating 138 Coil processing line 220 Structural tubing mill 165 Evraz Claymont Steel Claymont, DE Melt shop and slab caster 496 Plate mill 463 Evraz Regina Steel Regina, SK Melt shop and slab caster 1,323 Plate mill 1,213 Coil processing line 165 Slitter 606 Evraz Surrey Works Surrey, BC Coil processing line 165 Tubular Products Location Capabilities Capacity* Evraz Oregon Steel Tubular Portland, OR 2 spiral pipe mills 220 Evraz Regina Steel Tubular Regina, SK 24” ERW mill 331 2” ERW mill 77 4 spiral weld DSAW mills 551 Evraz Calgary Works Calgary, AB ERW mill 353 Heat treating 127 Threading 331 Evraz Red Deer Works Red Deer, AB ERW mill 171 Threading 127 Evraz Camrose Works Camrose, AB ERW mill 132 DSAW mill (U-O-E) 276 Broad geographic reach with significant Evraz Rocky Mountain Steel Pueblo, CO Seamless pipe mill 165 stronghold in the western U.S. and Canada, Long Products Location Capabilities Capacity* close to key end-markets. Evraz Rocky Mountain Steel Pueblo, CO Melt shop and billet caster 1,102 Rail mill 573 Rod/bar mill 551 *Capacity in 1000s of tonnes
  • 7. Evraz North America Snapshot 7 Leading North American steelmaker with a diverse product portfolio and broad geographic reach Largest rail and large diameter pipe (LDP) producer in North America 4.3 million tonnes rolled steel capacity, 3.0 million tonnes melt shop capacity and 2.3 million tonnes tube making capacity Integrated supply chain with captive slab and scrap sourcing and downstream processing facilities Flat Products Tubular Products Long Products Products Plate and coil Large and small diameter pipe Rail and head-hardened rail Slit coils Oil Country Tubular Goods (OCTG) Wire rod and coiled Structural tube and Welded and seamless pipe and reinforcing bar cut-to-length plate casing Facilities Portland, Claymont, Regina, Camrose, Calgary, Red Pueblo Surrey, Regina Deer, Portland and Pueblo Leading steelmaker in North America enjoying integration, critical mass and product breadth and depth to ensure long-term stability of the business.
  • 8. Broad Product Offering with Specialty Steel 8 Focus Evraz specialty steel products serve broad end-markets across a wide spectrum of specifications Approx. 70% of product portfolio is geared toward non-commodity sizes and specifications Flat Products Tubular Products Long Products Product Plate Large diameter API-grade line pipe Rail − Hot-rolled, strip mill and heat-treated − Oil and gas transmission − Deep head-hardened and Range − Thickness: 3/16” to 8”; Width: 48” to standard carbon 154”; Length: 96” to 1200” OCTG welded − Largest ERW producer in western Wire rod Canada − Welding wire Coiled plate − 2 3/8” to 24” diameter − Wire rope − Welded pipe and structural tubing − Tire bead and cord − Thickness: 0.09” to 0.75”; Width: 48” OCTG seamless casing to 120” − 7” to 9 5/8” diameter Coiled reinforcing bar Key Bridge Oil and gas exploration and Rail and transportation Markets Armor transmission Tires Power transmission Infrastructure Mining Specialty rod markets Shipbuilding Railcar Broad product offering ensures revenue stability and flexibility to address evolving market conditions.
  • 9. Focus on Higher Value Products: A Specialty, not 9 A Department Store
  • 10. Historical North America Production 10 Performance Production Mix (1000s of tonnes) Flat Production has improved from trough levels and prices have stabilized.
  • 11. Technological Expertise Driving Product 11 Development Innovation Institute with 20+ technicians and engineers – Enables Evraz North America to stay ahead of customers’ needs Current product development initiatives: – Lighter gauge armor plating – Thinner wall, higher strength steel for API applications – Higher strength heat treated plate for crane applications Exclusive North America license for patented rail head-hardening technology Focus on continuously improving quality process Technology innovation focused on our customer’s customer.
  • 12. A Focus on the Customer’s Customer 12 Focusing on the end user will advance our market place presence Supply chain: ─ Identify unrealized efficiencies, opportunities for process improvement Market Drivers: ─ Determine where to invest based on where the market will be ─ Building brand preference for our products will create long-term success for our businesses We will forge a strong connection with our customers....knowing everyday our customers will choose the best partner.
  • 13. Market Fundamentals are Improving 13 Steel prices have increased since the beginning of the 2010 and are significantly improved from 2009 lows Service center inventory levels remain low Capacity utilization and shipments have increased as steel demand has improved North America Service Center Inventory U.S. Mill Shipments & Capacity Utilization (millions of tonnes) * Source: MSCI. Source: AISI, AMM. * Shipments are in short tons
  • 14. Demand is Stabilizing 14 U.S. Freight Rail Projected Annual Demand (000s tons) Global steel consumption remains on an upward trajectory Energy Sector: Demand has increased ─ North American rig count surged ─ Natural gas and oil prices stabilizing Rail: Demand steady ─ Demand growth expected to increase gradually ─ By 2020, new rail demand expected to exceed historical rates Source: AAR; Cambridge Systematics; SCT; Booz & Company Analysis Note: Considers 2009 as a base year for projection, Excludes Class 2 and regional freight rail. Global Steel Consumption North America Rig Count Source: Bloomberg and World Steel Association. Source: Baker Hughes.
  • 15. Evraz North American Strategy 15 Significant scale and geographic advantage − East Coast: Delaware − Northwest/Central: Oregon, Colorado − Canada: Saskatchewan, Alberta Market leadership in high margin specialty steel products − OCTG: largest ERW producer in western Canada − Rail: leading market share in North America − Large diameter pipe: #1 producer in North America Key end-markets with resilience throughout market cycles – Oil and gas: recurring demand due to replacement cycles and rising demand – Rail transportation: capex for maintenance to ensure safety and reliability – Infrastructure: U.S. infrastructure investments, particularly in bridges and power transmission projects
  • 16. A Company Defined By Its Values 16 Create Value Passion for Improvement Lead with Humility Ownership of Results Enrichment through Collaboration
  • 17. +7 495 232-13-70 IR@evraz.com www.evraz.com