MANAGEMENT PRESENTATION October 2015

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 2

MECHEL AT A GLANCE

LEADING VERTICALLY INTEGRATED MINING & METALS COMPANY MECHEL INTEGRATED BUSINESS MODEL

OPERATING HIGHLIGHTS, SALES

Mining Segment

Source: Company data

8,0

6,5

2,5 3,0

1,9 1,3

1H 2014 1H 2015

Met Coal Steam Coal Iron ore concentrate

Steel Segment

‘000 t

onnes

4

Steel Mining Power

FINANCIAL HIGHLIGHTS

1H 2015 Revenue Breakdown 1H 2015 EBITDA(a)(1) Breakdown

Mining

Steel

SALES & MARKETING

LOGISTICS

‘000 t

onnes

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Gain / (loss) from remeasurement of contingent liabilities at fair value, Interest

expense, Interest income, Net result on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their

disposal), Amount attributable to noncontrolling interests, One-off accrual of taxes for prior periods and Income taxes.

2,13 2,15

1,6 1,4

0,38 0,34

1H 2014 1H 2015

Steel (production) Long Products Hardware

10%

33% 57%

2%

47%

51%

$ 2,272 mln $390 mln

INVESTMENT HIGHLIGHTS

5

Best-in-class global coking coal producer and exporter

with attractive growth profile

• One of the largest metallurgical coal producers globally

• One of the leading exporters on the seaborne market

• Developing one of the largest coking coal deposits globally

Superior asset quality

• One of the largest coal reserves base globally

• Core assets positioned at the lower bound of the global cost curve

• Ability to supply steel producers with a full range of metallurgical coal

• First newly built rolling mill for high-speed long rails in Russia

Strategically positioned to

supply both Asia-Pacific and Atlantic seaborne markets

• Uniquely positioned to supply metallurgical coal to attractive Asia Pacific markets

• Access to key Far Eastern and European ports

• Lower transportation cost to supply key growth markets in Asia

• Own infrastructure including ports and rolling stock, secures access to end customers and export markets

Vertically integrated steel business model

• Steel business is virtually self-sufficient in coal and iron ore

• Established distribution and sales platform in core markets

Leading steel producer • Most diversified specialty steel producer in Russia

• Second largest long steel producer in Russia

• Largest distribution platform in Russia

Port Temryuk

Russian Federation

Lithuania

Kazakhstan

Elgaugol Yakutugol

Korshunov Mining Plant

Southern Kuzbass

Coal Company

Chelyabinsk Metallurgical Plant

Urals Stampings Plant

Beloretsk Metallurgical Plant

Izhstal

Moscow Coke

and Gas Plant

Vyartsilya Metal Products Plant

Port Posiet

Port Vanino*

Port Kambarka

Bratsk Ferroalloy Plant Southern Kuzbass

Power Plant

Moscow Mechel Coke

Ukraine

Mechel

Nemunas

BROAD GEOGRAPHIC FOOTPRINT TARGETING GROWTH MARKETS

REVENUE BREAKDOWN BY

MARKET (1H 2015)

Mining Segment

Steel Segment

Source: Company data

Mining

Steel Power

Port Head office

6

*Access to port secured by contractual agreements

Mongolia

China

Russia 68%

Europe 16%

CIS 13%

Asia 1%

Middle East 1%

Other 1%

China 27%

Russia 24%

Europe 22%

Asia w/o

China 19%

CIS 3%

Middle East 4%

Other 1%

TSO

%

of Total

Ordinary 416,270,745 75%

Preferred 138,756,915 25%

Preferred Publicly Trading 57,209,577 10%

Preferred held by Justice family 26,044,572 5%

Preferred Share held by Mechel as treasury

55,502,766 10%

Total 555,027,660 100%

CAPITAL STRUCTURE

CAPITALIZATION AND OWNERSHIP STRUCTURE

Preferred Shares

Ordinary Shares

Public Float

32.6%

Igor Zyuzin

(with family)

67.4%

Public Float

41%

Justice Family

19%

Mechel

40%

Source: Company data

OWNERSHIP STRUCTURE

7

NARROWED STRATEGY USING KEY COMPETITIVE ADVANTAGES FOR VALUE GROWTH

GROWTH IN SHAREHOLDER VALUE

BASED ON VERTICALLY-INTEGRATED BUSINESS

MODEL

One of the largest global metcoal producer 1

Leader in Russia and CIS construction steel market 2

Leader in specialty steel, stainless steel and hardware production 3

Optimization of asset structure to deleverage 4

8

4.3

10.1 6,3

3,2

Production Consumption

MM

t

MM

t

MM

t

MM

t

MM

t

Production Consumption Production Consumption

Shipped through

own ports

Shipped overall

(excl. US ports)

Own rolling stock Overall

9

Production Consumption

5th largest metallurgical coal

producer globally* with ability

to supply steel producers with

a wide range of metallurgical

coal types, coke and iron

ore concentrate.

Own infrastructure

helps to establish access to

end customers.

*Ex-China Source: Company data

- Volumes shipped through Vanino port

Sea Port capacity, 12m 2014 Cargo turnover, 12m 2014 Power, 12m 2014

Coking Coal Concentrate, 12m 2014 Iron Ore Feed, 12m 2014 Coke, 12m 2014

bln

KW

h

VERTICALLY INTEGRATED MINING & STEEL BUSINESS MODEL WITH FOCUS ON COMPETITIVE ADVANTAGES

1,9

3,4

6,0

12,3

4,4

10.4

48,6

14,9

5,3

3,7

7,6

9,3

9,4

10,4

12,5

13,0

15,3

24,5

27,0

78,4

0,0 20,0 40,0 60,0 80,0 100,0

4 361

3 690

2 576

1 602

1 500

1112

1 082

826

411

350

0 1 000 2 000 3 000 4 000 5 000

BMA

Mechel

Evraz

Vale

Alpha Natural Resources

Peabody

BHP

Anglo-American

Walter Energy

Glencore Xstrata

LEADING GLOBAL METALLURGICAL COAL PRODUCER

2nd largest metallurgical coal reserve base

One of the largest metallurgical coal producer globally with superior leverage to metallurgical coal

One of the largest global exporters of coking coal

Top Ten Metallurgical Coal Exporters in 2014 Ten Largest Metallurgical Coal Producers in 2014 Ten Largest Metallurgical Coal Producers by

Metallurgical Coal Reserves

MMt MMt

Source: CRU, company reports (1) Including 50% share of BMA

Source: Company Filings All production numbers shown on an attributable saleable basis unless otherwise disclosed (1) Met coal with some minor thermal coal production (2) Small part may be third-party purchased coal (3) not including Jellinbah (4) Coking coal concentrate+PCI+Anthracites

Source: Company Filings, IMC All reserve numbers shown on a 100% run-of-mine basis unless otherwise disclosed (1) Assumes 100% of disclosed reserves are metallurgical (2) On a saleable, attributable basis (3) Reserves as of 30 June 2012 (4) Adjusted for acquisition of Raspadskaya

10

MMt (1)

(1)

(1)

(3)

(4))

(1)

(2)

9,4

9,4

12,7

13,5

15,3

15,5

16,3

24,8

26,7

79,2

0,0 20,0 40,0 60,0 80,0 100,0

(4)

(3)

(1)

(2)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

LOW COST COKING COAL PRODUCER

Source: AME

Notes: (1) FOB excluding land freight and port costs

Source: AME

Cumulative Production (%)

Australia USA & Canada Russia Other

Cumulative Production (%)

Australia USA & Canada Russia Other

0

50

100

150

200

0

50

100

150

200

Yakutu

gol Mechel B

lended

0

50

100

150

200

0

50

100

150

200

Mechel B

lended

U$/t

Ya

ku

tug

ol

post - Elgaugol

About 80% of coking coal by open pit

Access to cheap labor Low production cost

Low raw material costs

ESTIMATED EXPORT COKING COAL COST CURVE (FCA(1)) ESTIMATED EXPORT COKING COAL COST CURVE (FOB)

U$/t

11

150

100

50

150

100

50

Port Posiet

Yakutugol Elgaugol

Southern

Kuzbass

Indonesia

USA

Canada

Europe

Australia

India

Japan China

Russia

292 mn t (2)

ABILITY TO SUPPLY ALL METCOAL MARKETS

Major coking coal

exporting regions

Target markets for Mechel’s

coking coal supplies

Target markets for Mechel’s

steam coal supplies

Major coking coal

importing regions

Mechel’s routes

3rd parties routes

Size of respective

seaborne coking coal markets

Notes: (1) FY2014 coal production

(2) Total seaborne met coal trade (2014 est), CRU

Source: MCQ47

Diversification / enhancement of sales channels to the fast-growing Asian and European markets

Extensive range of metcoal grades allow for diversified product portfolio to serve a variety of customer needs

Mechel’s own ports on the Sea of Japan and Azov Sea serve as a stable gateways to export markets

Freight rates from port Posiet

(Handysize 22 000 t)

to Northern China $8 pmt

to Yangtze River $9 pmt

to Southern China $11.75 pmt

to Thailand $12.75 pmt

to Philippines $14 pmt

to Indonesia $14 pmt

India (West Coast / East Coast)

$21.75 /

$18.25 pmt

to Japan $7 pmt

12.0 mn t (1) 9.4 mn t (1)

12

Freight rates from port Vanino

(45 000 t)

to Northern China $9.75 pmt

to Yangtze River $10.75 pmt

to Southern China $12.95 pmt

to Thailand $13 pmt

to Philippines $13.5 pmt

to Indonesia $13.5 pmt

India (West Coast / East

Coast)

$19 pmt / $17 pmt

to Japan $7 pmt

Port Vanino

1.2 mn t (1)

Source: Company data

MECHEL SERVICE GLOBAL -- MAP OF DISTRIBUTION HUBS

70 storage sites and service centers throughout Russia,

CIS & Europe

Real time market intelligence and pricing feedback

Opportunity to address specific customer needs and sell

more high-marginal, value-added products

ADVANTAGES

PRODUCT PRODUCTION

VOLUME, 12m 2014

‘000 tonnes

RUSSIAN

PRODUCTION

SHARE

RANK

Spring

wire 1 62% 52

Wire

products 1 29% 624

Wire rod 1 33% 868

High-

tensile wire 2 44% 43

Flat

stainless

steel 1 54% 18

Rebar 3 18% 1,590

LEADER IN SPECIALTY, STAINLESS STEEL & HARDWARE

13

Geographies of presence of Mechel Service

Mechel Service facilities

• Logistics flexibility on the Sea of

Azov and Black Sea

• Potential to increase export of coking

coal, PCI and anthracite to Europe

• Existing port capacity – 2 mln tonnes

• Target capacity - 4 mln tonnes

• Rolling stock of about 12,000 railcars

• Ensures uninterrupted transportation

• Reduces dependency on Russian

Railways, state-owned and

independent freighters

• Increase access to Asian coal

customers via seaborne market

• Existing port capacity – 7 million

tonnes per year

• Target capacity - 9 mn tonnes

(Panamax vessels) after 2nd stage of

modernization

MECHEL’S INFRASTRUCTURE ALLOWS SECURED ACCESS TO FINAL CUSTOMERS

• Increases logistics flexibility to Asian

coal customers via seaborne market

securing exports from Elgaugol

• Total turnover up to 10 million tonnes

of cargo per year

• Shorter transportation distances –

lower rail and vessel freights

TEMRYUK PORT MECHEL TRANS TRANSPORTATION COMPANY

POSIET PORT VANINO PORT*

14

* Access to port secured by contractual agreements

KEY PROJECT CHARACTERISTICS

4.7 7.0

1.8

1.8

10.0

2012 2014

Posiet Temryuk Vanino

6.5

18.8

TEMRYUK POSIET VANINO

EXISTING

CAPACITY 1.8 MMt per year 7.0 MMt per year 10.0 MMt per year

TARGET

CAPACITY 4.2 MMt per year 9 MMt per year na

DEVELOPMENT

STAGE Modernization Modernization na

VESSEL TYPE River-to-sea

vessels

Panamax (post

modernization) Panamax

TIMING 2017 na na Source: Company data

Notes: * Volumes secured by contractual agreements

Elgaugol Yakutugol

Southern

Kuzbass

Port Posiet

Port Vanino Port Temryuk

OWN SEAPORT FACILITIES

OWN SEAPORT ANNUAL TURNOVER CAPACITIES, MMt *

MECHEL TRANS – ACCESS TO SEABORNE MARKET

15

Access to main customers in Asia-Pacific and

Europe secured through own ports infrastructure

Port capacity aligned with expected growth in

export volumes

ALIGNING ASSETS STRUCTURE WITH STRATEGY

Mining Segment

Korshunov Mining

Plant

Iron Ore

Yakutugol

Southern Kuzbass

Coal Company

Elgaugol

Bluestone

Coal

Coke

Mechel Coke

Moscow Coke and

Gas Plant

Steel Segment

Vyartsilya Metal Products Plant

Beloretsk Metallurgical Plant

Urals Stampings Plant

Mechel Targoviste

(Romania)

Mechel Campia Turzii

(Romania)

Chelyabinsk Metallurgical Plant

Buzau Plant

(Romania)

Otelu Rosu Plant

(Romania)

Izhstal

Donetsk Electrometallurgical Plant

Laminorul Plant

(Romania)

Mechel Nemunas (Lithuania)

Ferroalloys Segment

Ferronickel

Ferrochrome

Ferrosilicon

Southern Urals Nickel

Plant

Tikhvin Ferroalloy Plant

Voskhod Chrome

Mining Plant

(Kazakhstan)

Bratsk Ferroalloy Plant

Uvatskoye Deposit of

Quartzite

Power Segment

Toplofikatsia Rousse

Power Plant -

Southern Kuzbass

Power Plant

Kuzbass Power

Sales Company

Generation

Distribution

Distribution

Mechel Service Global *

(ex Russia)

Mechel Trading House

Mechel Carbon

Mechel-Mining Trading

House

Mechel Trading

Mechel Service OOO

(Russia)

Invicta (UK)

Group 1

Group 2

16

Improvement in financial results and cash flow

Immediate deleverage

Deal closed

Deal closed

Deal closed

Deal closed

Deal closed

Deal closed

Deal closed

* Divestment in progress through inventory sell down

Mothballed

Deal closed

Deal closed

Deal closed

KEY DEVELOPMENTS

ELGA DEPOSIT: RAMP UP SECURED BY VEB PROJECT FINANCING

CURRENT STATUS

KEY PROJECT METRICS

LOCATION

OPERATIONAL

DETAILS

COAL TYPE

RESERVES

JORC STANDARDS

• Country Russia

• Location South-East of Yakutia

• Mine Type 100% OP

• Start of operations August 2011

• High volatile hard coking coal

• Steam coal

• Middlings

• 2.2 billion tonnes as of December 31, 2012

• Elga coal deposit reserves account for 67% of total

reserves of Mechel

• Russia, Asia-Pacific countries TARGET MARKETS

LOCATION OF OPERATIONS

Mongolia

Yakutugol Elgaugol

Port Vanino

Port Posiet China

Japan Kazakhstan

Source: Company data

18

Railroad in place

Wash plant up & running

Workers settlement under construction

Existing capacity up to 4-5 mn tonnes of coal mining,

2.7 mn tonnes of coal processing

In FY 2014 1,2 mln tonnes mined, over 700,000 tonnes processed

and about 1 mln tonnes shipped (includes coking coal concentrate ,

oxidized coal and middlings).

Expected to produce about 3,5 mln tonnes of run-of-mine coal in

2015

Seasonal washing plant became all year operational starting winter

2014-2015

Coal processing up to 2,7 mln tonnes starting from 2015 and till the

first module of permanent washing plant is in place and operating

(2018)

VEB project financing of 1st stage of Elga development: up to12 mn

tons of coal mined by 2018

Once 9 mn tons of coal is mined and processed at Elga, the project

should become operating cashflow positive

FURTHER EXPANSION

CAPACITY

PRODUCTS

CAPEX

TARGET

CONSUMERS

High-speed and low-temperature up to 100 meter long rails

H-beams, channel bars, angles and grooves

US$ 715 mn

Up to 1.1 mn t

Russian Railways

Off-take secured by a 20-year supply agreement

Russian Railways Strategy till 2030 provides for additional railway

construction of more than 20,000 km, including more than 12,000 km

of high-speed tracks

Construction industry

TIMING 2009 – 2013

UNIVERSAL ROLLING MILL – STRUCTURAL SHIFT IN LONG STEEL PRODUCTS PORTFOLIO

Increased Output of High Value-Added Products

Enhanced Profitability of Steel Division

Structural Shift in the Long Steel Portfolio

RAILS PRICING

KEY PROJECT CHARACTERISTICS

Source: Metal-Courier, Company data

Notes: * There was no import of 100m length rails in 2014

19

982

963

920

932

653

637

630

623

652

637

631

623

1596

1 597

1386

0

1413

1 310

1310

0

530

517

504

494

0 500 1000 1500 2000

Average 2H2012

Average 1H2013

Average 2H2013

Average 1H2014

Billets (FOB ЧМ Россия) Rails 100m length (DES Vladivostok)

Rails 100m length (DES St. Petersburg) L-bar (FOB Турция)

Channel bar (FOB Турция) Beams (DAP Казахстан)

Mill

CURREN PROJECT STATUS

The mill launched in July 2013

H-beams and rails sales to 3d parties ongoing. In 9 month 2014 period about

85,000 tonnes produced and sold.

Rails have been certified for use by Russian Railways in June 2015.

FINANCIAL HIGHLIGHTS

1H2015 FINANCIAL RESULTS SUMMARY

21 * See our press release for full calculations

1H15 1H14 % 2Q15 1Q15 %

Revenue 2,272 3,436 -34% 1,159 1,113 4%

EBITDA (a) 390 262 49% 179 211 -15%

Net (loss) / income (239) (648) -63% 34 (273) -112%

Net Debt* 6,974 9,053 -23% 6,974 6,822 2%

1H 2015 HIGHLIGHTS

22

+ Revenue increased by 4% QoQ primarily because of the increase of sales in

Steel segment by 13%.

+ 1H 2015 Operating income increased 16x times compared with similar period of 2014

+ EBITDA(a) was 15% lower QoQ mostly due to Steel segment EBITDA decrease on higher

costs.

+ Major segments contributed almost equally to consolidated EBITDA(a) in 1H 2015 –

51% Steel segment and 47% Mining segment.

+ Net debt amounted to $7 bln as of June 30, 2015.

Net debt increased by 2% QoQ because of revaluation of ruble denominated debts due to

depreciation of US$ from 58,46 to 55,52 at the end of the periods.

+ Bottom line supported by $189mln FX gain and amounted to $34 mln in 2Q 2015.

1H 2015 Net loss was $239 mln.

94 87 87 106 96

77

138

120 106

83

3

-7

12 6

0,15

Power

Steel

Mining

-7

548 489 483 390 363

1027 948

740

601 682

166

148

161

122 114

2Q14 3Q14 4Q14 1Q15 2Q15

Power

Steel

Mining

10%

33% 57%

11%

32% 57%

SEGMENTS OVERVIEW REVENUE BY SEGMENTS

$ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Interest expense, Interest income, Net result on the disposal of non-current

assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their disposal), Amount attributable to noncontrolling interests, Income

taxes and Other one-off items.

23

Steel Mining Power

EBITDA(a)(1) BY SEGMENTS

2%

47%

51%

1H 2015

8%

29%

63%

1H 2014

REVENUE BY SEGMENTS

$ Mln

EBITDA(a) (1) BY SEGMENTS

$ 2,272 mln $390 mln

$3,436 mln $262 mln

$ 1,741

$ 1,159

$ 1,585

$ 1,384

$ 1,113

$ 211

$ 179

$ 227 $ 220

$176

3Q14 4Q14 1Q15 2Q14 2Q15

SEGMENT HIGHLIGHTS

24

+

International metallurgical coal prices continued to decrease. Hard coking coal benchmark decreased

from $117 FOB in 1Q 2015 to $109.5 FOB in 2Q 2015 and moved down to $ 93 FOB in 3Q 2015.

Domestic coal prices were more stable and profitability of domestic sales was supported by weaker

ruble

+

Lower export prices led to Mining segment Revenue decrease by 7% QoQ (from $390mln to $363mln)

and EBITDA(a) decrease by 8% QoQ (from $106mln to $97mln)

EBITDA margin for 1H 2015 almost doubled to 20,6% comparing with the previous year (1H 2014 –

11,6%)

+ Mining segment finished 2Q 2015 period with Net income of $53 mln

+ Steel segment Revenue grew by 13% QoQ on a stable prices and higher sales volumes

+ 1H 2015 Steel segment EBITDA(a) is 2.5x times higher than in 1H 2014

(increase from US$74mln to US$188mln)

EBITDA(a) margin decreased from 16,4% to 11,4% QoQ on higher costs

Mining Segment Steel Segment 35

30

55

44

31

27

26

61

28

22

20

51

26

18

15

32

30

19

18

44

Coal SKCC Coal YU Coal Elga Iron Ore KGOK

2Q14 3Q14 4Q14 1Q15 2Q15

548

489 483

390

363

151

144 106

101 131

13% 14% 15%

22% 20%

2Q14 3Q14 4Q14 1Q15 2Q15

Intersegment revenues Revenues EBITDA(a) margin

CASH COSTS, US$/TONNE

$ Mln

425

376

390

501

403

361

364

482

310

284

288

377

254

240

243 3

03

312

311

322 370

Billets* Wire rod Rebar Carbon Flat

2Q14 3Q14 4Q14 1Q15 2Q15

1027 948

740

601 682

55 46

41

40 44

7%

14% 15%

16%

11%

2Q14 3Q14 4Q14 1Q15 2Q15

Intersegment revenues Revenues EBITDA(a) margin

REVENUE, EBITDA(a)(1)

$ Mln

CASH COSTS, US$/TONNE

REVENUE, EBITDA(a)(1)

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Interest expense, Interest income, Net result

on the disposal of non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their

disposal), Amount attributable to noncontrolling interests, Income taxes and Other one-off items.

* Domestic sales

Coking coal 42%

Anthracite and PCI

27%

Coke 9%

Coking products

2%

Steam coal 9%

Iron ore 8%

Other 3%

China 39%

Russia 29%

Europe 14%

Asia w/o China 13%

CIS 2%

Middle East 2% Other

1%

Coking coal 33%

Anthracite and PCI

24%

Coke 11%

Coking products

3%

Steam coal 12%

Iron ore 4%

Other 2%

China 27%

Russia 24% Europe

22%

Asia w/o China 19%

CIS 3%

Middle East 4%

Other 1%

MINING SEGMENT

26

REVENUE BREAKDOWN BY REGION

REVENUE BREAKDOWN BY PRODUCTS

1H 2015

1H 2014

1H 2015 revenue $753 mln

1H 2015

1H 2014 revenue $1,115 mln

1H 2014

Rebar 29%

Carbon long products

19% Hardware

16%

Forgings and stampings

9%

Carbon flat 8%

Semi-Finished Steel Products

5%

Stainless flat 3%

Ferrosilicon 2%

Other 8%

Rebar 29%

Carbon long products

19% Hardware

16%

Forgings and stampings

8%

Semi-Finished Steel Products

6%

Carbon flat 10%

Stainless flat 2%

Ferrosilicon 2%

Other 8%

Russia 66% Europe

17%

CIS 13%

Asia 2%

Middle East 1% Other

1%

Russia 68%

Europe 16%

CIS 13%

Asia 1%

Middle East 1%

Other 1%

STEEL SEGMENT

27

REVENUE BREAKDOWN BY REGION

REVENUE BREAKDOWN BY PRODUCTS

1H 2015

4Q 2014

1H2015 revenue $1,283 mln

1H 2015

1H2014 revenue $1,956 mln

1H 2014

OPERATIONAL RESULTS 1H 2015

PRODUCTION:

Product

1H’15,

th. tonnes

1H’14,

th. tonnes %

2Q’15,

th. tonnes

1Q’15,

th. tonnes

%

Run-of-mine coal 11 448 11 198 +2 5 941 5 506 +8

Pig Iron 2 045 1 900 +8 994 1 051 -5

Steel 2 147 2 127 +1 1 045 1 102 -5

SALES:

Product name

1H’15,

th. tonnes

1H’14,

th. tonnes %

2Q’15,

th. tonnes

1Q’15,

th. tonnes

%

Coking coal concentrate 4 068 5 354 -24 2 028 2 040 -1

PCI 1 322 1 623 -19 669 653 +3

Anthracites 1 109 1 001 +11 564 544 +4

Steam coal 3 039 2 528 +20 1 563 1 476 +6

Iron ore concentrate 1 317 1 886 -30 609 707 -14

Coke 1 484 1 491 0 718 767 -6

Flat products 237 227 +4 120 117 +2

Long products 1 367 1 588 -14 730 637 +15

Billets 112 61 +84 31 81 -62

Hardware 340 384 -11 170 171 0

Forgings 28 26 +8 14 14 +2

Stampings 32 44 -27 20 13 +57

Ferrosilicon 39 42 -7 17 22 -22

28

POWER SEGMENT

29

AVERAGE ELECTRICITY SALES PRICES AND CASH COSTS (RUSSIA), US$/MWH

REVENUE, EBITDA(a)(1)

$ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Interest expense, Interest income, Net result on the disposal of

non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their disposal), Amount attributable to

noncontrolling interests, Income taxes and Other one-off items.

200

166 148

161

122 114

105

90 86 76

66 64

6%

1% -3%

5% 3%

0,1%

-5%

5%

15%

25%

35%

-50

50

150

250

350

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Intersegment revenues Revenues EBITDA(a) margin

27 29

36

21

15 19

53,3 55,1 52,2

39,7

31,4 32,2

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Cash costs Sales price

91%

4%

3%

1%

1%

1H15 1H14

Other

Depreciation anddepletion

Energy

Staff costs

Raw materials andpurchased goods

90%

4%

4%

1% 1%

COS STRUCTURE

$236 mln $366 mln

+ 1H 2015 EBITDA(a) $7 mln,

EBITDA(a) margin 1.9%.

+ Seasonal reduction in sales volumes and

ruble strengthening in 2Q 2015 led to an

increase in cash costs

+ 1H 2015 Net loss of $8,2 mln.

CONSOLIDATED P&L

30

REVENUE, $MLN

FINANCIAL PERFORMANCE HIGHLIGHTS:

$ Mln $ Mln

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Interest expense, Interest income, Net result on the disposal of

non-current assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their disposal), Amount attributable to

noncontrolling interests, Income taxes and Other one-off items.

1741

1585

1384

1113 1159

36% 37%

44% 43% 41%

2Q14 3Q14 4Q14 1Q15 2Q15

Revenue Gross margin, %

176

227 220

211

179

10%

14%

16%

19%

15%

2Q14 3Q14 4Q14 1Q15 2Q15

EBITDA(a) EBITDA(a) margin

EBITDA(a)(1) , $MLN

+ 1H2015 revenue decreased 34% HoH mostly because of the ruble depreciation

Adjusted Operating income increased 5,5x times to US$260mln (1H2014: US$47mln)

+ EBITDA(a) increased to US$390mln (1H2014: 262mln) with EBITDA(a) margin increase from 7,6% to

17,2% for the comparable periods

+ Bottom line in 2Q 2015 became positive with support of $189mln FX-gain.

Net Income of $34 mln.

1H 2015 net loss of $239mln (1H2014 net loss $648mln)

CASH FLOW & TRADE WORKING CAPITAL

31

CASH FLOW, $MLN

+ Operating cash flow deficit became a result of significant increase in debt serving payments.

Cash deficit was financed by further decrease in trade working capital by $192 mln.

+ Investment cash flow amounted to $126 mln in 1H 2015 – mostly maintenance CAPEX and Elga.

TRADE WORKING CAPITAL MANAGEMENT, $MLN

72 45

191

-126

-99

Cash as of31.12.2014

Operatingactivities

Investmentactivities

Financingactivities

Cash as of30.06.2015

2 007

1 681

1 219 1 202 1 153

-1 939 -1 773 -1 661 -1 825

-1 968

68 -92

-442 -623

-815

Trade current assets Trade current liabilities Trade working capital

30.06.14 30.09.14 31.12.14 31.03.15 30.06.15

State banks 66%

Bonds 4%

Other lenders

5%

International

Banks

23%

+ At the end of August and beginning of September 2015 Group signed restructuring agreements with

Gazprombank and VTB which include grace period for debt repayment till April 2017 with onwards

repayment within 3 years

+

We have also signed restructuring agreement with other Russian and international banks such as Uralsib,

MKB, Raiffeisenbank Russia, EABR.

We are finalizing discussions with PXF and ECA lenders as well as RUR Bond holders on restructuring

terms

We discuss restructuring terms with Sberbank

+ Stable debt level and increase of financial results led to Net debt / EBITDA ratio of 8,3x.

DEBT PROFILE

BANK DEBT PROFILE AS OF SEPTEMBER 1, 2015

By currency By banks

32

Total Debt $6,313 mln

Note: converted at the exchange rate established by CB RF as of September 01, 2015

DEBT BURDEN DYNAMICS 2011-2015, USD BLN

3,5x

3,5x

7,2x

12,6x

10,0x 8,2x 8,3x

2010 2011 2012 2013 2014 3m2015 6m2015

Long-term Short-term Lease Net debt / EBITDAEUR 6%

USD 59%

RUR 35%

US$ MILLION UNLESS OTHERWISE STATED 1H15 1H14 % 2Q15 1Q15 %

Revenue (2) 2,272 3,436 -33.9% 1,159 1,113 4.1%

Cost of sales (1,324) (2,254) 41.3% (689) (635) 8.5%

Gross margin 41.7% 34.4% 40.6% 42.9%

Adjusted Operating income 260 47 453% 108 152 -28.9%

EBITDA(a) (1) 390 262 48.9% 179 211 -15.2%

EBITDA(a) margin 17% 8% 15% 19%

Net (loss) / income (239) (648) -63.1% 34 (273) -112.5%

Net (loss) / income margin -10.5% -18.9% 2.9% -24.5%

Net Debt 6,974 9,053 -23% 6,974 6,822 2%

CapEx 91 274 -66.8% 57 34 67.6%

FINANCIAL RESULTS OVERVIEW

(1) EBITDA(a) represents earnings before Depreciation, depletion and amortization, Foreign exchange gain / (loss), Loss from discontinued operations, Interest expense, Interest income, Net result on the disposal of non-current

assets, Impairment of goodwill and long-lived assets, Provision for amounts due from related parties, Result of disposed companies (incl. the result from their disposal), Amount attributable to noncontrolling interests, Income

taxes and Other one-off items.

(2) Includes sales to the external customers only

33

APPENDIX

ELGA WASHING PLANT

35

CHELYABINSK UNIVERSAL ROLLING MILL

36

SHAPES PRODUCED AT UNIVERSAL ROLLING MILL

37