Evraz PLC · LSE:EVR
Evraz — Renaissance Capital 10th Annual Investor Conference 2006
16 slides from Evraz's conference presentation, Jun 20, 2006
Slide 1: Renaissance Capital 10th Annual Investor Conference
RENAISSANCE CAPITAL 10th ANNUAL INVESTOR CONFERENCE Andrey Teterkin, Vice president, Business Development and Strategic Planning 20 JUNE 2006 MOSCOW
Slide 2: Disclaimer
Ii] . 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 Group S.A. (Evraz) or any of its subsidiaries in any jurisdiction or an inducement to enter into investme
Slide 3: Evraz Highlights
Evraz Highlights Vertically integrated steel and mining business , among the 15 largest steel producers in the world Russia’s largest producer of steel and steel products with 2005 production of 13.9 million tonnes of crude steel 2005 Consolidated revenues of US$6.5 billion and EBITDA of US$1.9 bill
Slide 4: Top Russian Steel Producer
“ Top Russian Steel Producer Evraz’s Main Locations Top Russian Steel Producers Output? (million tonnes) Main Russi, — ranking),-Company 2003 2004 2005 products 11.5 9.9 11.3 11.3 Flat/long 10.8 Flat/long .4 Flat Severstal NLMK 5 Mechel Source: Chermet, Evraz Note: Crude steel output AiG BES ‘St. Pe
Slide 5: Strategy
Strategy = Advance long product leadership = Enhance cost leadership position position in Russia and CIS ; = Increase efficiency through operational = Leverage construction product range improvements and ongoing realization breadth, effective distribution and of asset synergies customer service . =
Slide 6: Show Strong Financial Results
AShow Strong Financial Results Revenue Total Assets 8,000 7 $min 6,654 80% 8000) ¢min 6,508 / 6 000 5,933 6,000 60% 4,253 4.000 4,000 A 40% 2,168 a 2000 1,540 | 2,000 4 1,222 20% , = ,_ = | o% 2002 2003 2004 2005 2002 2003 2004 2005 qm Total assets —e— ROCE***,% EBITDA . 2,017 1,860 Net Profit 2,000
Slide 7: Market Share Opportunity
7 - — lave. Market Share Opportunity = Russian sales grew to 60% of total revenues in 2005 vs. 55% in 2004 = Russian sales increased by 18% from US$3,288.1 million in 2004 to US$3,889 million in 2005 = Pursuing downstream integration to secure access to attractive export markets = Asia remains core
Slide 8: Russia's growing steel consumption
Russia’s growing steel consumption Russian and CIS steel consumption remains below global benchmarks Construction sector is growing above 10% per year The government approved four budget-funded national projects which in particular would allow doubling the volumes of house construction by year 2010
Slide 9: Low Cost Producer
Low Cost Producer = Lowest cost producer of steel in Russia and CIS = Substantial level of vertical integration and self-sufficiency in iron ore and coal with benefit from vertical integration growing by a factor of 4.3x on pro-forma basis = Mines located close to steel production sites Benefit of V
Slide 10: Capital Expenditure
Capital Expenditure = Ongoing capex programme to improve efficiency = Total capex spending in 2005 of US$695 million | Project capex c.US$600 million = Key projects delivered on time = 2006 capex budgeted to be c.US$435 million Key Capital Investment Projects 2005 2006 Actual Planned NTMK: Moderniza
Slide 11: Major Acquisitions in 2005
Major Acquisitions in 2005 Palini e Bertoli Vitkovice Steel Evraz acquired 75% in Aug 2005 = Evraz acquired 98.96% of Vitkovice Target markets - Middle East, Western Steel in Nov, 2005 Europe and North Africa = Target markets - the Czech Republic = Total sales - ca 350,000 tonnes of and Central Euro
Slide 12: Major Acquisitions in 2005
Major Acquisitions in 2005 Yuzhkuzbassugol = 50% stake acquired from Evraz shareholders to simplify corporate structure and improve transparency regarding related parties | Leading coal producer in Russia, operating 10 mines, 2 washing plants, 3 machinery plants, 3 transportation companies and a num
Slide 13: Product
Product Steel division Pig iron Steel Rolled products! Mining division? Iron ore (saleable products) Concentrate Sinter Pellets Coal (mined) Coking coal Steam coal Equity investments! Coking coal (Raspadskaya) Coking and steam coal (Yuzhkuzbassugol) Qi 2006 Trading update Q1 2006, thousand tonnes 3,
Slide 14: 2006 Export market outlook for semi and rolled products
2006 Export market outlook for semi and rolled products 25 5 1 <— 1H2003 2H2003 1H2004 2H2004 1H2005 2H2005 1H2006e 2H2006f —#- Billet —s—Long rolled —@—Slab 13
Slide 15: 2006 Semi-finished products: focus on slab sales
2006 Semi-finished products: focus on slab sales = Evraz is planning to increase slab sales in 2006 due to a new slab caster facility at Zapsib and favourable market environment 2000 , 000 tonnes 1800 | 1600 - 1400 - 1200 - 1000 - 800 - 600 - 400 - 200 - 0 ananiaii 1H2003 2H2003 1H2004 2H2004 1H2005
Slide 16: Evraz Group
=) EVRAZ GROUP +7 495 232-1370 IR@evraz.com www.evraz.com
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