2. EVRAZ in brief
One of the largest vertically integrated steel and mining companies in the world
Leader in the Russian and CIS construction and railway product markets
One of the leading producers in the global vanadium market
Top-20 steel producer in the world based on crude steel production of 16.8 million
tonnes in 2011
15.5 million tonnes of steel products sold in 2011
2011 consolidated revenue of US$16.4 billion, EBITDA of US$2.9 billion; H1 2012
revenue of US$7.6 billion, EBITDA of US$1.2 billion
Total debt as at 30 June 2012 of US$7.8 billion, net debt/LTM EBITDA of 2.5x
Re-domiciliation in the UK and share listing in the Premium segment of the London
Stock Exchange since 7 November 2011
Constituent of FTSE 100 index since December 2011 and the only steel stock in UK
FTSE All-Share index
In May 2012 EVRAZ was included in MSCI UK and MSCI World Indices
Investor Presentation, November - December 2012 1
3. Global operating model
150 Russia/CIS
1,313 100 3,730
529
Europe
122 580
1,717
North America
Asia
231
H1 2012 steel sales volume South America Africa H1 2012 steel sales volume
by geography by product
Africa and
RoW Other
4% Tubular 4%
5% Semi-
finished
Russia &
Asia
CIS
Steel mills 22%
22% Flat-rolled
48%
Iron ore mining 18%
Coal mining
Vanadium
Americas Railway Construction
17% Sea ports 14% 37%
Europe
8%
Mezhegey coal mine in development
# Third party steel products sales* (Kt), H1 2012 # Internal supply of slabs and billets from Russian steel mills (Kt)
* Excluding routes with sales volumes below 50kt each, together totalling 93kt
Investor Presentation, November - December 2012 2
4. H1 2012 summary
US$ million unless otherwise stated
H1 2012 H1 2011 Change
Revenue 7,619 8,380 (9)%
EBITDA1 1,175 1,629 (28)%
EBITDA margin 15.4% 19.4% (21)%
Net profit/(loss) (50) 263 (119)%
Dividends for the period (cents/ordinary share) 11c 6.7c 64%
Operating cash flow 1,089 1,594 (32)%
Capex 565 462 22%
Net debt2 6,070 6,442 (6)%
Short-term debt2 1,550 626 148%
Steel sales volumes3 (‘000 t) 7,713 7,946 (3)%
1 EBITDA represents profit from operations plus depreciation, depletion and amortisation, impairment of assets, foreign exchange loss
(gain) and loss (gain) on disposal of property, plant and equipment and intangible assets
2 As at 30 June 2012 and 31 December 2011 respectively; short-term debt includes current portion of finance lease liabilities, including lease liabilities directly associated with
disposal groups classified as held for sale
3 Here and throughout this presentation segment sales data refer to external sales unless otherwise stated
Investor Presentation, November - December 2012 3
5. H1 2012 financial highlights
Consolidated revenue by segment, $m
The major factor of the decrease in revenue
was reduced steel sales volumes and prices 8,380
482
Decrease in revenues and EBITDA was also 320 541
7,619
2,040 263
a result of lower Mining segment contribution 1,383 Other operations
because of lower raw materials volumes and Vanadium
prices 7,492
Mining
7,019
Steel
Eliminations
(1,954) (1,587)
H1 2011 H1 2012
Revenue drivers, $m Consolidated EBITDA by segment*, $m
1,629
8,380 80
7,619 1,175
(437) Vanadium & Other
962
(324) 98 operations
Mining
417
Steel
Unallocated &
744 699 Eliminations
(157) (39)
H1 2011 Revenue Volumes Prices H1 2012 Revenue H1 2011 H1 2012
* Vanadium & Other operations consists in H1 2011 of $(3)m Vanadium segment EBITDA and $83m of Other
operations EBITDA and in H1 2012 of $4m and $94m respectively
Investor Presentation, November - December 2012 4
6. Group cost dynamics
EVRAZ benefits from high level of vertical integration in iron ore and coking coal
Costs were positively impacted by rouble devaluation in H1 2012 (more than 50% of the costs are rouble-
denominated)
In H1 2012 steel segment costs benefited from lower raw materials prices: costs of raw materials accounted for
45% of Steel segment revenues in H1 2012 vs. 51% in H1 2011
Implementation of cost saving technologies (e.g. PCI), further development of own power generation, progress
of Lean project are expected to help mitigate negative impact of growing energy, transportation and labour costs
Consolidated cost of revenues by cost elements Cash Cost*, Slabs & Billets, $/t
H1 2012, % H1 2011, %
of total CoR of total CoR 479
437 448
426 410
Raw materials, including 35% 40% 403 401
Iron ore 6% 8% 438
395 415 401
Coking coal 9% 12% 379 372 368
Scrap 14% 14% Slabs
Other raw materials 6% 6% Billets
Semi-finished products 4% 6%
Transportation 6% 7%
Staff costs 14% 13%
Depreciation 10% 7% Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Electricity 5% 5%
Natural gas 4% 4%
Other costs 22% 18% * Average for Russian steel mills, integrated cash cost of production, EXW
Source: Management accounts
Investor Presentation, November - December 2012 5
7. Liquidity and debt maturity profile
Total debt of $7,833m as of 30 June 2012, having increased as a result of drawing on available credit lines to
increase the cash balance
Cash and cash equivalents totalled $1,763m ($801m as at 31 December 2011)
$600m 5-year notes issued in April 2012 at 7.4% rate
Net debt - $6,070m (6% decrease vs. 31 December 2011)
Amendments to financial covenants in syndicated loan facilities provide greater financial flexibility
Mid-term target net leverage ratio of below 2x
Debt cost* and average maturity Debt** maturities schedule (as at 30 June 2012), $m
8 5
7.8 4.8
2,000 1,875
7.6 4.6
7.4 4.4
1,400 Q4
7.2 4.2 1,500 1,373
Q3
7 4
1,124
981 Q2
6.8 3.8 1,000
630 Q1
6.6 3.6
500
414
6.4 3.4
6.2 3.2 36
6 3 0
31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 2012 2013 2014 2015 2016 2017 2018 2019-
2023
% Years
* Weighted average cost of debt
** Principal debt (excl. interest payments)
Investor Presentation, November - December 2012 6
8. FCF generation
Free cash flow generation of $362m in H1 2012
Further release of working capital achieved
1,175 91
$m
1,132
1,089
(43)
(134)
(233)
92 362
(21)
(565)
EBITDA H1 Non-cash items EBITDA (excl. Changes in Income tax paid Cash flows from Net interest paid Capex CF from Collateral under Free cash flow
2012 non-cash items) working capital operating (incl. realised investing swaps
(excl. income activities gain on swaps & activities
tax) covenants reset (excl.capex and
costs) interest
received)
* Free cash flow comprises cash flows from operating activities less interest paid and cash flows used investing activities
Investor Presentation, November - December 2012 7
9. Q3 2012 steel production
EVRAZ’s overall production of crude steel decreased by 3% against both Q2 2012 and Q3 2011,
mainly due to decreased steel production levels at EVRAZ steel mills in the Czech Republic and
South Africa
Consolidated production of finished steel goods decreased by 8% compared to the same period
last year and by 4% compared to the previous quarter of this year due to lower output of flat-rolled
products in Russia and Europe and lower production of rails in Russian and American mills
Production of steel products, Kt Share of finished products in product mix
1,400
1,200
1,000
27%
800
600 Semi-finished products
Finished products
400
200
0
73%
Semi-finished Construction Railway Flat-rolled Tubular Other steel
products products products products products products
Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
Investor Presentation, November - December 2012 8
10. Steel: CIS
Full economic utilisation of Russian steelmaking capacity Steel product sales, domestic vs. export, Kt
maintained
Rail sales volumes are negatively affected by planned 5- 5,541 5,586
month stoppage of the ZSMK rail mill for modernisation since
April (the mill is expected to resume production in Q4 2012) 32% 33%
In Q3 2012 prices for most steel product groups reduced due
to ongoing uncertainty in global steel markets and Export
decreasing prices of iron ore and coking coal Domestic
Production and prices for construction steel in the domestic 68% 67%
market are expected to decrease in Q4 2012 due to usual
seasonal trends
H1 2011 H1 2012
Steel product sales volumes, Kt Steel product revenues
5,541 5,586
512 539
Products Revenue, $m Revenue, $/tonne
813 788
H1 2011 H1 2012 H1 2011 H1 2012
Other Semi-finished 1,159 1,028 630 607
2,378 2,566 Railway
Construction 1,833 1,933 771 753
Construction
Semi-finished Railway 734 720 903 914
1,838 1,693 Other 422 410 824 761
Total 4,148 4,091 749 732
H1 2011 H1 2012
Investor Presentation, November - December 2012 9
11. Steel: North America
North American steel mills operate at high utilisation levels
We have successfully expanded into high value added products (head hardened rails, premium connection OCTG tubes, heat
treated seamless pipe)
The rail mill is fully utilised as rail demand remains strong; record high steel output and sales of rails in H1 2012
The expansion to the heat treatment facility in Calgary
Overall demand for OCTG drilling activity remains stable with some slight signs of temporary weakness in October
Steel product sales volumes, Kt Steel product revenues
1,321 1,314
Products Revenue, US$m Revenue, $/tonne
403 371 H1 2011 H1 2012 H1 2011 H1 2012
Tubular Construction & other
steel products 153 140 927 909
534 Flat-rolled
511
Railway 249 266 1,029 1,043
Railway
Flat-rolled 578 571 1,131 1,069
242 255 Construction &
other steel Tubular 589 579 1,461 1,561
165 154
Total 1,569 1,556 1,188 1,184
H1 2011 H1 2012
Investor Presentation, November - December 2012 10
12. Steel: Europe, South Africa
H1 2012 EBITDA of European operations was $6m despite Steel product sales volumes,
the weak economic environment European operations, Kt
In October the crude steel production at EVRAZ Vitkovice 740
Steel was temporarily closed due to low demand and the
109
company's plan to reduce its inventory
543
38
EVRAZ Highveld launched an optimisation programme to
reduce fixed costs
Other
631
Improved working shift schedules in South Africa are 505 Flat-rolled
expected to result in increased workplace safety, reduced
overtime and higher productivity
H1 2011 H1 2012
Steel product sales volumes,
Steel product revenue South African operations, Kt
Products Revenue, $m Revenue,$/tonne
343
H1 2011 H1 2012 H1 2011 H1 2012 52
270
European operations
35
Flat-rolled 598 398 948 788
183 Other
Other 104 37 954 974
145
Total 702 435 949 801 Flat-rolled
South African operations Construction
Construction 89 71 824 789 108 90
Flat-rolled 159 121 869 834
Other 36 23 692 657 H1 2011 H1 2012
Total 284 215 828 796
Investor Presentation, November - December 2012 11
13. Mining: Coal
Sales of coal products in H1 2012 decreased vs. H1 2011 Coal product sales, Kt
due to
lower steam coal volumes mined as a result of longwall 4,175*
repositionings at both steam coal mines in Q1 2012
1,295 3,014
decreased volumes of external raw coal and increased
834
consumption of own coal in production of coal External sales
concentrate
2,880 Intersegment sales
2,179
A debottlenecking programme at Yuzhkuzbassugol was
launched to stabilise and improve mine production
Coal mine projects (Yerunakovskaya VIII and Mezhegey H1 2011 H1 2012
Phase 1) are proceeding as planned
* For comparability the number excludes 767 Kt of raw coal purchased by Trading Company
EvrazHolding from market and Raspadskaya for supply to EVRAZ steel mills
Washed coking coal (concentrate) self-coverage, Kt Cash cost, Russian washed coking coal, $/t
90% 80% 88% 71% 96%
98
4,053 4,021
3,850 3,775 3,868
3,642 3,722
3,229
3,402 81 79
1,066
1,451 723 998
2,665 73 69
70 67
831
246
2,506 2,404 1,834 2,656
1,945
H1 2010 H2 2010 H1 2011 H2 2011 H1 2012
Consumption Production excl. Production by Raspadskaya
closed and closed and production Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
disposed mines disposed mines
Note. (1) Self-coverage, %= total production (plus 40% of Raspadskaya production on pro rata basis) divided by total steel segment consumption
(2) Self-coverage excl. 40% Raspadskaya share: H1 2010 – 54%, H2 2010 – 62%, H1 2011 – 62%, H2 2011 – 49%, H1 2012 – 69%
Investor Presentation, November - December 2012 12
14. Mining: Iron ore
In H1 2012 total sales (intersegment and external) of iron ore products were 9.3 mt (-7.6% vs H1 2011) due to decreased use of
external raw iron ore in concentrate production in 2012 and destocking at Sukha Balka in H1 2011
Cash costs decreased in line with rouble depreciation
In H1 2012 EVRAZ Russian iron ore operations achieved total $17.5m positive economic effects through operational
improvements
The project to increase EVRAZ KGOK’s capacity to 55 Mtpa of raw ore is expected to be completed in December 2012
Feasibility study and project documentation were completed to develop the Sobstvenno-Kachkanarskoye ore deposit at EVRAZ
KGOK and the project is proceeding as planned
Major reconstruction of Sheregesh mine at Evrazruda was launched to increase production 2.5 times to 4.8 Mtpa by 2016
Iron ore self-coverage*, Kt Cash cost, Russian iron ore products (Fe 58%), $/t
90% 102% 99% 106% 101%
80
10,635 10,455 10,232 10,389
9,981
75 73
71 72
10,191 10,355 10,814 10,462 70
9,608
69
H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Consumption Production
* Self-coverage, %= total production divided by total steel segment consumption
Investor Presentation, November - December 2012 13
15. Vanadium
EVRAZ’s external sales of vanadium products decreased vs. Ferrovanadium prices (FeV), $/kg contained V
H1 2011 by 17% to $251m, primarily due to lower prices
As a result of operational improvements EVRAZ Vanady-Tula 31.1
achieved record productivity levels of 40 tonnes of V2O5/day 30.4
29.5
during H1 2012, a 15% improvement compared to production 30.2
30.9 28.6
30.0
rates in 2010 28.9 27.5
28.1 26.0 26.1
EVRAZ Stratcor vanadium plant in Arkansas launched use 24.6
25.7 24.5
of EVRAZ’s own vanadium slag, to increase synergy levels 25.3 25.6 25.6
within EVRAZ 24.2 24.3
23.7
23.0
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12
Source: LMB
Finished Vanadium product sales volumes, t Vanadium product revenues by region, $m
4 23
9,624 9,599 24
Russia & CIS
Europe
Americas
117
83 Asia
Africa & RoW
H1 2011 H1 2012
Investor Presentation, November - December 2012 14
16. Key Investment Projects
Cumulative CAPEX by CAPEX in CAPEX in
Total CAPEX 30.06. 2012 H1 2012 H2 2012,
Project $m $m $m $m Project Targets
Project Targets Project targets
Coal ore & coal
Iron & iron ore
o Coal production of 2 mtpa
Yerunakovskava VIII mine construction 390 81 47 150
o Start in Q1 2013, full capacity to be reached in Q1 2014
o Maintaining self-sufficiency in high-quality hard coking coal after
Development of Mezhegey coal deposit depletion of existing deposits
190 23 18 25
(Tyva, Russia)
o On-stream Q4 2013, reaching full capacity by Q4 2014
o Iron ore production to be increased to 55 mtpa
Expansion of Kachkanar mine 76 60 13 14
o On-stream by end 2012
Steel
o Capacity of 950k tonnes of high-speed rails, including 450k
Reconstruction of rail mill at EVRAZ ZSMK
490 366 84 113 tonnes of 100 metre rails
(former NKMK)
o On-stream in Q4 2012, fully operational since Q2 2013
o Production of higher-quality rails
Reconstruction of rail mill at EVRAZ NTMK 60 60 4 0 o 550k tonnes capacity
o On-stream in Q2 2012, fully operational since Q2 2013
o 20% lower coke consumption
o Save annually up to 650 mcm of natural gas at NTMK and up to
Pulverised coal injection (PCI) 600 mcm at ZSMK
320 218 55 79
at EVRAZ NTMK and EVRAZ ZSMK
o On-stream by Q4 2012 and Q1 2013, fully operational since Q1
2013 and Q2 2013 respectively
Reconstruction of mechanical area at o Production of higher-quality wheels
40 25 3 8
EVRAZ NTMK wheel & tyre mill o Start production in Q1 2013; full capacity in Q2 2013
Construction of Yuzhny and Kostanay o Capacity: 450 ktpa of construction products each mill
260 93 34 60
rolling mills o On-stream by mid-2013
Final stage of completion In progress Under consideration
Investor Presentation, November - December 2012 15
17. Capex dynamics
$m
1,400
1,281
1,200
1,103
1,000
H2 2012 capex
832
800
expected in
the range of
600 565 $650-750m
441
400
200
-
2008 2009 2010 2011 H1 2012
Maintenance, Steel and other operations Iron ore mine development Coal mine development * Investment projects
* Investment into maintaining and developing mining volumes, such as preparation of coal seams
Investor Presentation, November - December 2012 16
18. Recent market developments
Full utilisation of Russian steel making capacities continues EVRAZ selling prices, $/t
Utilisation of non-Russian steelmaking capacities in
1,200
October: 1,100
1,000
◦ EVRAZ North America: 90% 900
800
◦ EVRAZ Highveld: 60% 700
600
◦ EVRAZ Vitkovice Steel: temporarily closed due to low 500
demand and the company's plan to reduce its inventory 400
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12
Low inventories across EVRAZ operations
Slabs, Russia, export* Billets, Russia, export*
EVRAZ order book (external sales) currently stands at Rebars, Russia, FCA Plate, North America, FCA
approx. US$140 mln, representing 1.2 months production*
Construction product prices were flat in July-September due Raw material prices (domestic markets), $/t
to seasonal improvement in the Russian construction market
and are expected to decrease in Q4 2012 due to slowdown 450
in the construction activity 400
350
In Q3 2012 export prices of semi-finished products 300
250
decreased vs. Q2 2012
200
150
Ferrovanadium prices in Q3 2012 are at the level of 24.3
100
$/kg of contained Vanadium vs. 24.6 $/kg in September 50
0
Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12
Scrap, Russia, CPT Scrap, USA, CPT
Iron ore concentrate, Russia, ExW Coking coal concentrate, Russia, FCA
* The calculation is based on contract prices and November & December volumes
Investor Presentation, November - December 2012 17
19. Acquisition of Raspadskaya
EVRAZ has agreed to increase its indirect stake in Raspadskaya from 41% to 82%, purchasing a
further 50% interest in Corber Enterprises Limited
Remaining 18% of Raspadskaya shares will remain listed on the Russian Stock Exchange,
MICEX-RTS
The completion of the deal is expected to occur in Q4 2012 subject to customary regulatory
approvals and other conditions
Raspadskaya assets Calculation of net leverage
Facilities Three underground coking coal Company Net debt LTM EBITDA Net leverage
mines as of 30 ratio
Open-pit coking coal mine June 2012
Raspadskaya coal concentrate
preparation plant EVRAZ 6,070 2,447 2.48
Coking coal
reserves 1, 314 million tonnes Corber 330 235 1.40
(IMC, 31/12/2011)
6.3 mt of raw coking coal Combined 6,400 2,682 2.39
3.8 mt of coking coal concentrate entity
Production in 2011
Investor Presentation, November - December 2012 18
20. Outlook
Global markets remain volatile resulting in ongoing uncertainty and low visibility in EVRAZ’s key
markets
Capacity utilisation remains high, finished goods inventories at our mills and sales network are
low
In Q4 2012 we expect to be subject to usual seasonal trends, including slowdown in the
construction activity in Russia
Capex in H2 2012 is expected at $650-750m but we retain flexibility
EVRAZ continues to expect its net leverage ratio to increase at the end of 2012 versus 30 June
2012 (but within the limits set by our covenants)
Investor Presentation, November - December 2012 19
22. HSE performance
Increase in LTIFR and FIFR vs. H1 2011 Lost Time Injury Frequency Rate (LTIFR)*
Safety remains a key priority 0.94
0.81
Key ongoing safety initiatives:
Contractor safety management
Fall prevention (follow 6S project)
PPE (Personal Protective Equipment)
Improvement in workplace conditions
Tests for drugs and alcoholic intoxication
Internal safety training
Key ongoing environmental initiatives:
H1 2011 H1 2012
Water use: Wastewater dumping reduction programme
(ZSMK, NTMK, Yuzhkuzbassugol, Evrazruda, DMZP); Fatal Injury Frequency Rate (FIFR)*
Air emissions: Air protection equipment upgrade (ZSMK,
DMZ, Claymont);
Waste management: Waste recycling and reuse 2.02
programmes (ZSMK,NTMK, Vanady Tula) 1.85
H1 2011 H1 2012
* Calculated as the total number of work-related injuries (which resulted in the loss of work time) – LTIFR or fatalities – FIFR/total number of working hours during the period x 1,000,000
Investor Presentation, November - December 2012 21
23. Revenue: geographic breakdown
H1 2011
H1 2012
Africa & Africa &
Other RoW
Asian RoW
3% Other Asian 3%
7% 9%
Thailand
4%
China Thailand
1% 3%
China
Middle East 1% Russia
3% 41%
Middle East
Russia 2%
40%
Europe Europe
13% 10%
Ukraine Americas Ukraine
Americas 3%
4% 24%
22% Other CIS
Other CIS
3% 4%
Investor Presentation, November - December 2012 22
24. Steel products: sales by market
Kt $m
Kt
3,331
3,331
3,324
3,324
2,661
2,604
1,732
1,732
1,586
1,586 1,652
1,582
1,441
1,441
1,345
1,345
1,015 1,068
858
858
758
632
632
431 406
431 406 492
300 275
300 275 359 336
257 214
Russia
Russia CIS
CIS Europe
Europe Americas
Americas Asia
Asia Africa & RoW
Africa & RoW Russia CIS Europe Americas Asia Africa &
RoW
H1 2011 H1 2012
H1 2011 H1 2012
Investor Presentation, November - December 2012 23
25. Resilient and profitable asset base
EBITDA, EVRAZ Russia, $m EBITDA, EVRAZ North America, $m
1,276
1,051
265
216
H1 2011 H1 2012 H1 2011 H1 2012
EBITDA, EVRAZ Ukraine, $m EBITDA, EVRAZ Europe, $m EBITDA, EVRAZ South Africa, $m
81
87
29
6
(3) H1 2011 H1 2012
(6)
H1 2011 H1 2012
H1 2011 H1 2012
Note. (1) Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(109)m in H1 2011 and $(89)m in H1 2012
(2) EVRAZ North America includes EVRAZ Inc. NA, EVRAZ Inc. NA Canada, Stratcor; EVRAZ Ukraine includes EVRAZ DMZP, Sukha Balka and coking plants; EVRAZ Europe includes EVRAZ
Palini e Bertoli, EVRAZ Vitkovice Steel, Nikom and attributable trading margin
Investor Presentation, November - December 2012 24
26. Cost structure by segment
Cost structure of Steel segment, $m Cost structure of Mining segment, $m
6,237
5,749
9%
8% Other 1,177
15%
3% 1,092
Energy
8% 9% 19%
4% 4% Depreciation 23%
6% 9% 11%
7% Staff Other
4% 13%
4% Transportation
5% Energy
17% 30%
Semi-finished products 15%
16% Depreciation
Other raw materials Staff costs
17% 24%
15% Scrap 23% Transportation
Coking coal 13% Raw materials
21% 19% 10%
Iron ore 12% 7%
H1 2011 H1 2012 H1 2011 H1 2012
Cost structure of Vanadium segment, $m
304
242 Other
30%
Energy
12% 41% Depreciation
5%
12% Staff costs
6% 13%
5% Transportation
13%
35% Raw materials
28%
H1 2011 H1 2012
Investor Presentation, November - December 2012 25
27. EBITDA
US$ million
Six months ended 30 June
2012 2011
Consolidated EBITDA reconciliation
Profit from operations 430 859
Add:
Depreciation, depletion and amortisation 668 501
Impairment of assets 80 32
Loss on disposal of property, plant & equipment 25 17
Foreign exchange (gain) loss (28) 220
Consolidated EBITDA 1,175 1,629
Investor Presentation, November - December 2012 26
28. Net profit reconciliation
$m
20
62 12
10
0
-10
-20
-30
-40
-50
(50)
-60
Reported Net loss Special item: impairment due to reduced pricing outlook Net profit w/o special items
Investor Presentation, November - December 2012 27
29. Net debt
US$ million
30 June 2012 31 December
2011
Net debt calculation
Add:
Long-term loans, net of current portion 6,271 6,593
Short-term loans and current portion of long-term loans 1,531 613
Finance lease liabilities, including current portion 31 39
Less:
Short-term bank deposit 0 (2)
Cash and cash equivalents (1,763) (801)
Net debt 6,070 6,442
Investor Presentation, November - December 2012 28
31. Acquisition of Raspadskaya: Terms and conditions
EVRAZ will
issue 132.7 million new shares (9.9% of the existing issued share capital of
EVRAZ)
issue 33.9 million new warrants (2.53% of the existing issued share capital of
EVRAZ), and
pay an amount, in cash, of $1,949.80 for each of 103,600 ordinary Corber shares,
payable in four equal instalments in Q1, Q2, Q3 2013 and Q1 2014
The warrant exercise period will be at any time between 12 months and 15 months
after completion of the acquisition. Upon exercise of the Warrants, it is expected that
the Sellers would own 11.06% of EVRAZ.
Investor Presentation, November - December 2012 30
32. Disclaimer
This document 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
EVRAZ plc (“EVRAZ”) or any of its subsidiaries in any jurisdiction (including, without limitation, EVRAZ Group S.A.) (collectively, the “Group”) or an inducement to
enter into investment activity. No part of this document, 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. 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 EVRAZ, the Group 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 document or its contents or
otherwise arising in connection with the document.
This document contains “forward-looking statements”, which include all statements other than statements of historical facts, including, without limitation, any
statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or similar
expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the
Group’s control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or
achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy
of 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 the Group’s shares or GDRs, financial risk management and the impact of
general business and global economic conditions.
Such forward-looking statements are based on numerous assumptions regarding the Group’s present and future business strategies and the environment in which
the Group will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and each of EVRAZ
and the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to
reflect any change in EVRAZ’s or the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements
are based.
Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-
looking statements contained in this document.
The information contained in this document is provided as at the date of this document and is subject to change without notice.
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