Mechel`s Financial results for the 9 M and 1H 2013.

1. 9M2013 RESULTS PRESENTATION
DECEMBER 23, 2013

2. DISCLAIMER
This presentation does not constitute or form part of and should not be construed as,
an offer to sell or issue or the solicitation of an offer to buy or acquire securities of
Mechel OAO (Mechel) or any of its subsidiaries in any jurisdiction or an inducement to
enter into investment activity. No part of this presentation, nor the fact of its
distribution, should form the basis of, or be relied on in connection with, any contract
or commitment or investment decision whatsoever. Any purchase of securities should
be made solely on the basis of information Mechel files from time to time with the U.S.
Securities and Exchange Commission. No representation, warranty or undertaking,
express or implied, is made as to, and no reliance should be placed on, the fairness,
accuracy, completeness or correctness of the information or the opinions contained
herein. None of the Mechel or any of its affiliates, advisors or representatives shall
have any liability whatsoever (in negligence or otherwise) for any loss howsoever
arising from any use of this presentation or its contents or otherwise arising in
connection with the presentation.
This presentation may contain projections or other forward-looking statements
regarding future events or the future financial performance of Mechel, as defined in
the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
We wish to caution you that these statements are only predictions and that actual
events or results may differ materially. We do not intend to update these statements.
We refer you to the documents Mechel files from time to time with the U.S. Securities
and Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned “Risk
Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form
20-F, that could cause the actual results to differ materially from those contained in
our projections or forward-looking statements, including, among others, the
achievement of anticipated levels of profitability, growth, cost and synergy of our
recent acquisitions, the impact of competitive pricing, the ability to obtain necessary
regulatory approvals and licenses, the impact of developments in the Russian
economic, political and legal environment, volatility in stock markets or in the price of
our shares or ADRs, financial risk management and the impact of general business
and global economic conditions.
The information and opinions contained in this document are provided as at the date
of this presentation and are subject to change without notice
2

3. FINANCIAL HIGHLIGHTS

4. SEGMENTS OVERVIEW
EBITDA(1) BY SEGMENTS
Declining prices put pressure on consolidated revenue
which is down to $2.1 bn q-o-q
$ Mln
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
421
397
Bad debt provisions and write-offs due to assets disposals
result in a Net Loss of $2.2 bn for 9M2013
331
305
211
202
196
127 148
124
Due to lower cash costs and higher volumes Mining
segment EBITDA grew by 17% q-o-q dominating the
consolidated EBITDA with a share of 76%
147
88
96
88
64
49
62
23
29
4
-3
Mining
REVENUE FROM THIRD PARTIES
$ Mln
2,243
8,222
6,692
7%
1%
31%
6%
8%
1%
33%
0.6
3
-0.6
Ferroalloys
15
6
3
-6
Power
-4
Consolidated*
EBITDA BY SEGMENTS
2,089
7%
Steel
5
1%
33%
3Q2013
2Q2013
-2% 1%
2%
2%
1%
32%
25%
32%
61%
59%
60%
59%
2Q13
3Q13
9M12
9M13
Steel
Mining
Ferroalloys
76%
64%
Steel
Mining
Ferroalloys
Power
Power
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of
contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued
operations, net of income tax.
4

5. MINING SEGMENT
REVENUE, EBITDA(1)
Revenue flat q-o-q at $695 mn as decrease in sales and
prices for coking coal is offset by increased sales of
anthracite, PCI and iron ore
$ Mln
Revenues (lhs)
Intersegment revenues (lhs)
Adj. EBITDA margin (rhs)
1,200
60%
Despite weaker pricing EBITDA grew by 17% q-o-q due to
operating costs containment efforts
151
900
936
164
142
786
770
600
30%
Cost control measures result in reduced/flat cash costs
across all Russian operations
136
130
110
693
695
678
32%
300
0
CASH COSTS, US$/TONNE
4%
2Q12
3Q12
4Q12
14%
15%
1Q13
2Q13
30%
18%
3Q13
0%
COS STRUCTURE
$527 mn
3Q12
4Q12
1Q13
2Q13
115
88 89
88
86
78
42 39 41 43 39
45 43 45
34
52 53
$431 mn
7%
7%
15%
17%
17%
12%
9%
9%
Depreciation and
depletion
21%
3Q13
$459 mn
8%
2Q12
23%
25%
Energy
44%
42%
Other
43
34 31 32
32 28
29
Staff costs
44%
Raw materials and
purchased goods
Coal SKCC
Coal YU
Iron Ore
Bluestone
1Q13
2Q13
3Q13
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of
contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposedcompanies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued
operations, net of income tax.
5

6. MINING SEGMENT
Coking coal sales down 13% q-o-q due to decrease in domestic
demand
EXTERNAL SALES STRUCTURE
Coking coal Anthracites and PCI Coke Coking products Steam coal Iron ore Other
1%
15%
Sales of anthracite and PCI grew by 17% q-o-q due to better
demand from Turkey, UK and China
8%
8%
Prices for coal products fall across the board with iron ore
showing better price resilience
Russia
5%
1%
8%
Europe
CIS
5%
2%
10%
China
3%
3%
16%
2%
9%
8%
8%
2%
11%
7%
21%
26%
24%
45%
42%
3Q13
39%
9M12
37%
2Q13
China starts to dominate in sales outstripping domestic
shipments with overall sales share of 39% for 9M2013
REVENUE BREAKDOWN BY REGION
3%
23%
Share of coking coal exports to China in 9M13 grows by 49% yo-y offsetting lower shipments to CIS due to dwindling solvent
demand
1%
12%
8%
1%
17%
9M13
AVERAGE SALES PRICES FCA, US$/TONNE
Asia w/o China
4%
4%
13%
Middle East
Other
4%
3%
10%
2Q12
239
3Q12
4Q12
1Q13
2Q13
3Q13
229
214
207
199
178
42%
1%
29%
39%
10%
42%
2%
1%
15%
14%
14%
26%
26%
93 95
94
71
92
84
80
83
14%
28%
129
122
69
63 66
65
77 78
59
28%
57
Coke
2Q13
3Q13
9M12
9M13
Coking coal
Anthracite and PCI
49 49 51 52 52
49
Steam coal*
Iron ore
*Restated to include middlings
6

7. STEEL SEGMENT
REVENUE, EBITDA(1)
Segment‟s revenue down 10% as sales of 3rd party steel
products decreased q-o-q…
…while lower raw material prices pushed rebar and wire rod
cash cost down by 11% and 10% respectively…
$ Mln
Revenues (lhs)
Adj. EBITDA margin (rhs)
2,000
1,500
… resulting in 3Q13 EBITDA decreasing to $49mn
Intersegment revenues (lhs)
1,000
66
1,765
13%
49
5%
10%
72
1,492
70
6%
1,606
1,343
5%
4%
50
1,359
5%
50
1,225
4%
7%
4%
1%
Bottom line affected by $186 mn of one-off negative result of
discontinued operations of Donetsk Steel Plant and $629 mn
from related parties bad debt provision
CASH COSTS, US$/TONNE
508 487 502494
472
2Q12
504
500
-2%
0
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
-5%
COS STRUCTURE
3Q12
452
4Q12
431 437 439
1Q13
468
419
2Q13
3Q13
470 452
$1,165 mn
2% 2%
479
444 447
425
$1,185 mn
3% 2%
8%
9%
11%
10%
$1,061mn
4%
2%
9%
9%
Other
Depreciation
Energy
75%
78%
76%
Staff costs
Raw materials and
purchased goods
Billets*
Wire Rod
Rebar
1Q13
2Q13
3Q13
* Domestic sales
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of
contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued
operations, net of income tax.
7

8. STEEL SEGMENT
EXTERNAL SALES STRUCTURE
Increased imports of steel products from Ukraine resulted in
flat prices on domestic market despite high season
Share of semi-finished products decrease as we launch the
universal mill at Chelyabinsk and terminate our resale
business with Estar
Share of Europe falls to 17% y-o-y as European assets are
divested and sales are shifted to a more buoyant Russian
market
Semi-finished steel products
Carbon long products
Carbon flat
Rebar
Forgings and stampings
Other
9%
8%
10%
7%
16%
8%
17%
3%
32%
AVERAGE SALES PRICES FCA, US$/TONNE
CIS
Middle East
2%
7%
10%
4%
19%
66%
2Q13
3Q13
58%
3Q12
1%
3%
12%
3%
17%
9M12
4Q12
9M13
1Q13
2Q13
Stainless flat
products
Forgings and
stampings
64%
519
513
498
478
469
498
65%
2Q12
Other
3Q13
Semi-finished
steel products
Rebar
724
700
700
689
710
663
18%
9M13
891
894
927
912
879
835
17%
11%
9M12
3757
1%
2%
13%
0%
29%
2814
2343
2086
2337
2555
3% 1%
11%
3%
16%
3%
17%
7%
3Q13
4195
4038
3910
3999
3776
3530
Asia
8%
26%
691
684
677
635
620
607
Europe
15%
7%
15%
2%
17%
3%
29%
10%
8%
15%
8%
2Q13
Russia
11%
7%
16%
10%
REVENUE BREAKDOWN BY REGION
Stainless flat products
Hardware
Hardware
Carbon flat
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of
contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued
operations, net of income tax.
8

9. FERROALLOYS SEGMENT*
Southern Urals Nickel Plant and Chrome assets result
deconsolidated as Discontinued operations
REVENUE, EBITDA(1)
$ Mln
Revenues (lhs)
Intersegment revenues (lhs)
Adj. EBITDA margin (rhs)
60%
Revenue down 9% q-o-q due to decrease of FeSi sales and
weaker pricing
50%
40%
10
FeSi cash costs down by 9%
11
10
8
22
20
9
Net income of $3 mn in 3Q13 vs net loss of $881 in 2Q13
caused by write-offs on disposed chrome assets
10
14%
13
20%
20
20
19
15%
10%
1,301
1,256
3Q12
4Q12
Russia
Europe
1,242
1,199
-10%
1Q13
2Q13
3Q13
-20%
REVENUE BREAKDOWN BY REGION
AVERAGE FERROSILICON SALES PRICES AND CASH COSTS, US$/TONNE
1,227
0
-14%
2Q12
10%
0%
2%
-2%
After significant growth of export sales share in the beginning
of the year domestic sales rebounded in 3Q due to better
internal demand
30%
1,142
8%
10%
Asia
Other
2%
16%
12%
0%
961
907
845
39%
903
848
28%
33%
0%
823
1%
0%
82%
53%
2Q12
3Q12
4Q12
Price
1Q13
2Q13
62%
54%
3Q13
Cashcost
2Q13
3Q13
9M12
9M13
* As of June 30, 2013, a number of companies of the ferroalloys segment met criteria for classification as discontinued operations under US GAAP and were disclosed as a separate component from Mechel Group’s
continuing operations retrospectively for all comparative periods presented.
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of contingent
liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued operations, net of income
tax.
9

10. POWER SEGMENT
REVENUE, EBITDA(1)
$ Mln
Traditional seasonal decrease in revenues and margins
Revenues (lhs)
Intersegment revenues(lhs)
300
118
Adj. EBITDA margin (rhs)
50%
123
40%
200
95
101
98
220
Lower production volumes and seasonal maintenance works
and repairs resulted in cash costs growth
100
2%
0
AVERAGE ELECTRICITY SALES PRICES AND CASH COSTS (RUSSIA), US$/MWH
Sales price
53.5
54.7
53.8
168
2Q12
-2%
3Q12
4%
4Q12
56.2
52.5
54.4
30%
20%
169
140
7%
1%
1Q13
2Q13
149
10%
0%
-2%
3Q13
-10%
-20%
COS STRUCTURE
$249 mn
Cash costs
98
227
$201 mn
1% 1%
5%
4%
1% 1%
8%
4%
$197 mn
2%
1%
7%
3%
Other
Depreciation
35.0
Energy
89%
28.0
86%
87%
Staff costs
29.0
30.1
24.5
26.2
Raw materials and
purchased goods
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
1Q13
2Q13
3Q13
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of
contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued
operations, net of income tax.
10

11. Consolidated P&L
3Q2013 FINANCIAL PERFORMANCE Q-O-Q HIGHLIGHTS:
Consolidated EBITDA down 3% q-o-q to $196 mn as improvement in Mining segment profitability is not enough to offset declining margins
in steel, power and ferroalloys segments
9M2013 bottom line affected by write offs of $1,085 mn as a result of discontinued operations, $645 mn of bad debt provisions and FX
loss of $151 mn
REVENUE, EBITDA(1) AND NET PROFIT
REVENUE DYNAMICS
$ Mln
$ Mln
Revenue (lhs)
3,000
Adj. EBITDA (lhs)
Net profit (lhs)
Adj. EBITDA
3,600
3,100
-78
2,000
50%
2881
2552
2,600
-76
40%
2409
2360
2243
2089
30%
2,100
1,600
1,000
15%
16%
1,100
2,243
2,089
600
20%
6%
421
397
55
100
147
(400)
(900)
0
2Q2013
Volume
Price
3Q2013
9%
9%
9%
202
211
0%
-127 -10%
-321
-823
-20%
-1114
(1,400)
(1,900)
-30%
-1799
2Q12
3Q12
4Q12
10%
196
1Q13
2Q13
3Q13
(1) Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of
contingent liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued
operations, net of income tax.
11

12. Cash Flow Statements
Continuing working capital management added another $256 mn in Q3 to the CFO that totaled $314 mn in 9M2013
Inventory reduction release another $407 million
Investment cashflow is halved q-o-q standing at $100 mn in 3Q13 as main investment projects near their completion stage and Elga
CAPEX secured through VEB project financing
OPERATING CASH FLOW DYNAMICS
NET CASH FLOW
FY’11*
$ Mln
1Q’13
FY’12
3Q’13
2Q’13
2,079
415
400
1,311
304
399
69
247
50
91
22
223
223
-192
200
-199
-95 -141
-839-792
69
-1,674
22
0
2Q12
3Q12*
4Q12*
1Q13
2Q13
3Q13
Operating activities
* Сertain reclassifications to conform with the current period presentation
Investment activities
Financial activities
* Excluding the effect of loan to Estar
12

13. Successful refinancing and improved liquidity to service upcoming maturities
Net debt stable, estimated at $9.4 bln (including financial lease) as
of December 6, 2013
DEBT PROFILE AS OF DECEMBER 6, 2013
Cash and available credit lines total $0.44 bln as of December 6,
2013
Company succeeded in refinancing of PXF (granting additional
grace period of 12 months and extending the tenor until December
2016), Sberbank (grace period of 15 months, extending the tenor
until December 2018), VTB and GPB. New levels of financial
covenants ratios negotiated (including testing holiday until
December 2014)
EUR
7%
USD
35%
Bonds
11%
DEBT MATURITY SCHEDULE AS OF DECEMBER 6, 2013 **
DEBT MATURITY SCHEDULE AS OF JUNE 1, 2013 WITH PRO FORMA*
3000
3000
2,461
2,483
2500
139
472
2000
2,267
86
314
2500
2,153
500
2,034
51
472
2000
1,373
37
-
1500
1000
Russian
Banks
69%
Foreign
Banks
20%
RUR
58%
790
141
367
283
0
1.6.13
Cash
Other undrawn credit lines
ECA undrawn amount
965
97
156
81
598
15
-
1,336
506
123
2013
2015
2016
2017
Renewable lines
Other term loans
Expiration of put options on bonds
1,504
57
2,146
2018 and
after
Maturity of bonds
Expiration of financial lease
* assuming refinancing of GBP lines according to the terms of executed committed credit facilities
2,153
1,306
500
584
84
2014
77
297
168
429
1000
1,630
118
198
1500
1,788
1,866
DRAFT
2,527
0
440
31
340
69
20.12.13
803
1,447
191
24
780
13
99
79
131
2013
2014
Cash
Other undrawn credit lines
ECA undrawn amount
2015
2016
2017
Renewable lines
Other term loans
Expiration of put options on bonds
2018 and
after
Maturity of bonds
Expiration of financial lease
** assuming refinancing of GBP lines of 2009 and changes in schedule of VTB – lease from December 20, 2013
14

14. FINANCIAL RESULTS OVERVIEW
US$ MILLION UNLESS OTHERWISE STATED
3Q13
2Q13
2,089
2,243
-6.8%
(1,445)
(1,575)
-8.3%
30.8%
29.8%
39
(519)
Operating margin
1.9%
-23.2%
Adjusted EBITDA(1)
196
202
9.4%
9.0%
(127)
(1,799)
-6.1%
-80.2%
Mining segment
6,148
5,672
8.4%
Steel segment
1,564
1,729
-9.5%
Revenue
Cost of sales
Gross margin
Operating profit / (loss)
Adjusted EBITDA(1) margin
Net Income / (loss)
Net Income margin
CHANGE, %
-
-3.0%
-93.1%
Sales volumes(2), „000 tonnes
(1)
(2)
Adjusted EBITDA represents EBTIDA adjusted by forex gain/loss, interest income, net income on the disposal of non-current assets, amount attributable to non-controlling interests gain/loss from remeasurement of contingent
liabilities at fair value, impairment of long-lived assets and goodwill, result of disposed companies (incl.the result from their disposal) provision for amounts due from related parties and losses from discontinued operations, net
of income tax.
Includes sales to the external customers only
14