BUILDING BRIDGES: RUSSIAN ALUMINUM IN A GLOBAL CONTEXT Vladislav Soloviov Chief Financial Officer Russia: Going Global? London, October 12-13, 2005

2 Global Trends in Aluminium Industry  Consolidation  Restructuring  Competition for energy and raw materials  Increasing global demand

3 Industry Consolidation others 57 % Chalco 3 % Hydro Aluminium 5 % BHPB 4 % RUSAL 9 % Alcan 11 % Alcoa 11 % WORLD RUSSIA

4 Evolution of Russian Aluminum Industry USSR one of the world’s largest producers Russian smelters become independent Global MOU — Russia enters global industry Industry consolidation — RUSAL formed Russia is world’s 2nd largest producer Millions of Tonnes

5 Shift Away from US & Europe

6 RUSAL Electricity Infrastructure Smelters Power Stations

7 RUSAL’s Investment in New Energy Sources  Krasnoyarsk Region  Hydropower: 3,000 Megawatts  Smelting Capacity: 500, ,000 tonnes per year  In cooperation with Government of Tajikistan  Hydropower: 4 Billion Megawatts Boguchanskaya Hydrostation Rogunskaya Hydrostation

8 Dynamic Growth in Global Aluminium Smelting RUSAL + 49%

9 RUSAL Plans for Raw Material Self Sufficiency Alumina Production (thousand tonnes)

10 RUSAL Investment in New Raw Materials Capacity  Largest in the world  RUSAL owns 20%  22% increase in RUSAL raw material capacity  Cooperation project with SUAL  6 million tonnes annual bauxite production by 2007  Russian domestic raw material use increases from 40% to 80% QAL Alumina Refinery Komi Aluminium Project

11 Global Supply and Demand of Aluminium millions of tonnes Global DemandGlobal Supply

12 * Mining and Refining Office Smelting Fabrication * * * * * * * 11 COUNTRIES & 7 RUSSIAN REGIONS RUSAL: from Siberia to the World

13 Future Outlook: Russia vs. China RUSSIA (2009) CHINA (2009) Production Consumption Balance

14 Metals Sector Contribution to the Russian Economy largest contributor to the federal budget contributor to Russia’s total currency inflow of industrial production of exports of Russia’s industrial fixed assets of Russian industry’s net profit ________________________________________ Source: RF Federal Agency for Industry, Report The Successes and Challenges of Russia Metals Industry, May nd 19 % 18 % 11 % 40 %

15 +  Low cost hydropower  Technology and own ongoing R&D  Scale  Low capital cost of building smelter assets Pluses and Minuses of Operating in Russia –  Remote location  Limited locally available high quality raw materials  Limited domestic market  High perceived political risk

16 Go global, become fully integrated Three Keys to Success Low domestic consumption Transportation and energy costs Fierce competition for raw materials Explore international markets and focus on customer needs Seek long-term partnerships or develop own energy supply

17 RUSAL Today in the World in Russia of global market million tonnes of aluminium billion in sales billion in investments in 2006 employees # 3 # 1 9 % 2.7 % $5.4 $1+ 50,000

18 RUSAL Tomorrow aluminium producer in the world in efficiency and productivity million tonnes of aluminium million tonnes of alumina billion in investments in 10 years # $ 8

19 Instinct for Growth Phone: Fax: