1. - 1 - European steel plate market outlook. Meeting consumers needs. Evgeniy Sarkits, Sales Director NLMK DanSteel

2. - 2 - Evgeniy Sarkits, Sales Director NLMK DanSteel AGENDA  NLMK EUROPE PLATE OVERVIEW  EU PLATE MARKET OUTLOOK - NEGATIVE FACTORS - POSITIVE FACTORS  EU PLATE MARKET TRENDS - SSC/END USERS - SEGMENTS

3. - 3 - NLMK Organisation RAW MATERIAL PRODUCTION 100% self-sufficiency in raw materials 65% self-sufficiency in energy supply LONG PRODUCTS FLAT PRODUCTS ELECTRO-TECHNICAL STEEL NLMK EUROPE PLATE NLMK EUROPE STRIP NLMK USA SCRAP HOT ROLLED SEMIFINISHED STEEL SLABS IRON ORE, SINTER ORE, LIMESTONE No 1 Worldwide supplier of commercial slab Annual production capacity ca 15 mt / year of steel

4. - 4 - CLABECQVERONADANSTEEL Excellent surface quality and flatness & narrow thickness tolerances Specialized in thin &wide New Q&T line Own steelmaking Unique combination forging/rolling Niche product - Ingots Optimum logistics facilities Short JIT delivery time - Fast truck option - Add-on Service Almost unlimited normalization capacity New 4200 mm rolling line NLMK Europe Plate

5. - 5 - EUROPEAN STEEL MARKET OVERVIEW Factors effected on price evaluation: Oil&gas price dropped down (from 120 usd/barrel to 30 usd/barrel); Chinese, other non-EU countries export increase into EU; General weak activities in different segments (offshore oil&gas, storage tanks, line pipe, yellow goods); Global political instability. Evgeniy Sarkits, Sales Director NLMK DanSteel NEGATIVE FACTORS Constant fall down of Steel prices coupled with excess steelmaking capacity creating unfavourable market condition in European region. Since 06/14 until now the price has dropped ca. 50% due to the number of factors.

6. - 6 - Evgeniy Sarkits, Sales Director NLMK DanSteel EXCESSIVE 3RD COUNTRIES IMPORTS DUMPING THREATS Last and current year we can observed closure of milestones in EU steel industry as TATA and Reiner Brach (work until end March) due to unability to compete in circumstances we faced in steel business. From our point of view it is expected new closures in the coming years unless we take immediate actions. Eurofer has asked EU Commission to open antidumping process against China long time ago but process itself takes long term to be implemented (no 100% guarantee). For instance same case in the USA and Canada was implemented successfully in very short time not only against one country. EUROPEAN STEEL MARKET OVERVIEW Source: Eurofer, « Wirtschaftsvereinigung Stahl » NEGATIVE FACTORS

7. - 7 - Evgeniy Sarkits, Sales Director NLMK DanSteel POSITIVE FACTORS Active/promising segments – Wind foundation, shipbuilding, pressure vessel, construction (bridge building, house building, automotive, etc) EUROPEAN STEEL MARKET OVERVIEW Winter 2016 forecast GDP growth Yet moderate but growing GDP in EU Inevitable recovery after long stagnation European steel consumers for some specific projects choose EU origin vs. import material Source: EWEA, http://ec.europa.eu/economy_finance/publications/.

8. - 8 - EUROPEAN STEEL MARKET OVERVIEW Evgeniy Sarkits, Sales Director NLMK DanSteel SWEDEN/FINLAND – ROBUST ECONOMIC GROWTH; BELGUM/LUX AND ITALY- MODERATE ECONOMY GROWTH; SPAIN – POSITIVE RAPID GROWTH AFTER STAGNATION;

9. - 9 - EUROPEAN STEEL MARKET OVERVIEW Evgeniy Sarkits, Sales Director NLMK DanSteel IN WESTERN EUROPE WE CAN OBSERVE INTENTION IN FOCUSING DISTRIBUTION (SALES TO END-USERS INSTEAD OF STOCKHOLDERS) VIA END-USERS INSTEAD OF STOCKISTS CHALLENGES, WORKING WITH END-USERS: RISKS COUPLED WITH LACK OF CASH FLOW; LONGER PAYMENT TERMS; STORAGE/HANDLING; DELIVERY ISSUES BENEFITS: NOT SO LOW PRICES; TAILOR MADE DIMENSIONS; LOWER COMPETITIONS Stockholders End-User

10. - 10 - Evgeniy Sarkits, Sales Director NLMK DanSteel SegmentInfluencing factorsPotential Wind foundation EU politics on Green energy, Wind energy has overtaken hydro as the third largest source of power generation in the EU with a 15.6% share of total power capacity. €26.4 billion was invested in Europe in 2015 to finance wind energy development. This was 40% more than the total investment in 2014*. 2012-2015- investments increased steadily. According to EU climate and Energy package (Dec,2008) in 2020 a share of at least 30% of final energy consumption consist of renewable energy. Shipbuilding EU shipyards are set to build more than 24 new cruise vessels, worth a total of more than €12bn, between 2012 and 2016.* Increase in demand for passenger ships and other non-cargo carrying vessels in 2015**All main shipyards in Europe are fully booked until 2019-2020 (including). Pressure vessels Despite on very pessimistic forecast in oil/gas price evaluation, we can state that all main players/countries have no plans to reduce oil/gas production plan in the near future which leads to stabile demand in this segment. There is increasing demand for bulk storage of CNG and LPG for cars or LNG for remote gas distribution and bunker fuel for ship; Replacement needs in conventional power generation. Construction Spending on renewance of EU infrastructure, expectation on further investments, namely in Scandinavia +5% increase in Investments in 2016 in Sweden, +2% in NO and DK***, Finland (building boom expectation), UK, Germany, Netherland. * EWEA **Ships and maritime Equipment Association, Ship-technology.com ***Statistics Sweden, Statistics Denmark and Statistics Norway EUROPEAN STEEL MARKET OVERVIEW

11. - 11 - Evgeniy Sarkits, Sales Director NLMK DanSteel SegmentInfluencing factorsPotential Yellow Goods (Mining mashines) Rising competition from countries with low-cost production. Strong decline in minning commodity prices and mining output. As a result strong cuttings in investments for mining equipment in EU, major minning production moving to Asia Off shore oil/gas Oil Prices in free fall, now below 35$ per barrel coming from 67$ per barrel in May 2015 and 120$ in June 2014. As a result calm on a market. Big projects are postponed/canceled. Line Pipes ‘Awful’ Demand & high stocks. Oil companies postponing investments Shifting demand to polyethylene pipes EUROPEAN STEEL MARKET OVERVIEW

12. - 12 - Evgeniy Sarkits, Sales Director NLMK DanSteel SegmentClients needs Wind foundation Work on specific needs, shapes, sizes, Add on services Shipbuilding High delivery performance, new grades EU long term strategy on key leadership role for Shipbuilding industry. As a result stress on R&D and innovations, creating one of a type products, shipyards are asked to create tailor made ships or complex high-tech vessels* Pressure vessels New high quality grades, appropriate pre sale technical support Construction Great delivery performance and fast track option, quality of products and wide product range, competitive pricing Need for eco-innovations and environmental friendly tools for infrastructure development. New approaches to critical infrastructure* EUROPEAN STEEL MARKET OVERVIEW WE CAN ADMIT THAT IN THE FEW PAST YEARS CUSTOMERS NEEDS IN WESTERN EUROPE COUNTRIES HAVE BEEN SIGNIFICANTLY REVISED. PREVIOUSLY, CLIENTS MAINLY WERE FOCUSING ON STANDARD GRADES (S235, S355, GRADES A-A36, P235, P265) WITHOUT ANY SPECIAL REQUIREMENTS. BUT NOW HIGHER GRADES (MIN S355 WITH SPECIAL REQUIREMENTS/APPROVALS, S420, S460, S500, GRADES EH36,DH40, FH40 AND SO ON) ARE IN DEMAND. HOWEVER, EASTERN EUROPE COUNTRIES STILL ARE UNPRETENTIOUS IN THEIR NEEDS BUT FOCUSED IN LOW PRICES. * Sources: https://buildingradar.com/construction-blog/european-construction-market-forecast/ http://www.fiec.eu/en/library-619/annual-report-english.aspx

13. - 13 - Evgeniy Sarkits, Sales Director NLMK DanSteel EUROPEAN STEEL MARKET OVERVIEW QUESTIONS?

14. - 14 - Evgeniy Sarkits, Sales Director NLMK DanSteel THANK YOU FOR ATTENTION!