1 Efficient social investments in Russia: OAO Severstal experience Presentation by: Maria Medvedeva Head of External Communications

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3 300 miles to the North from Moscow

Cherepovets

5 17 Years Later - Global Operations Dnepropetrovsk Olenegorsk Kostomuksha Saint Petersburg Vorkuta Volgograd Cherepovets Moscow Orel DearbornParis ColumbusSparrows Point Chita Semey Ulan Ude Neryungri Uаgadugu Warren Brescia Wheeling Zwedru Berezitovy Friedens

6 Overview 2009 Over 90,000 employees across the globe. Public company listed on the London and Moscow Stock Exchanges. Steel producer: ranking 1 st among Russian companies, 2 nd in Italy, 4 th in the US. Gold producer: ranking 2 nd in Russia. Revenues of $13.05 bn. and EBITDA of $844 M.

7 Corporate Social Responsibility Priorities: –Industrial Safety and Environmental Protection –Development and Social Support of Personnel –Contribution to Social and Economic Development in Regions of the Company’s Presence

8 The number of orphans in Russia 740,000 3% of the total child population

9 "Road Home”: Start of the Project prevention of Child Neglect and Social Orphanhood, finding homes for orphans 2006, Cherepovets

,000+ calls to the Child hotline in Cherepovets Responded to over 800 threats to child safety Achieved 67% reduction in the number of children sent back to orphanages

11 "Road Home”: Development in 2009 The Project grew into a long-term regional program Vologda Regional Government Foundation for the Support of Children in Difficult Life Situations

12 Consolidated Budget of the Program in 2009

13 The total number of the unemployed in Russia 6,2 MLN 8,2% of all employable population

14 Cherepovets – “Mono-town” Non-Commercial Partnership “Urban Development Agency”

15 «Urban Development Agency»: Start of the Project Support and development of small and medium businesses 1999, Cherepovets

16 «Urban Development Agency»: Activity Directions Educational programs Free of charge training on the conduct of owning a business, workshops and exercises for entrepreneurs

17 «Urban Development Agency»: Activity Directions Information support Advising entrepreneurs on legal, economic and other issues

18 «Urban Development Agency»: Activity Directions Property support Provision of finished office space on preferred terms

19 «Urban Development Agency»: Activity Directions Support in the development of a business environment Exhibitions, competitions, “roundtables”, business meetings, forums

20 «Urban Development Agency»: Activity Directions Financial support Grants to new entrepreneurs for up to $9,500 and subsidies on loans taken out for business development

21 «Urban Development Agency»: Results of ,885 new jobs created. 661 businesses set up 1,170 first-time entrepreneurs trained.

22 Thank you for your attention! I’ll be pleased to answer your questions

23 Achieve more together These materials are confidential and have been prepared by OAO Severstal (Severstal) solely for your information and may not be reproduced, retransmitted or further distributed to any other person or published, in whole or in part, for any other purpose. These materials may contain projections and other forward-looking statements regarding future events or the future financial performance of Severstal. You can identify forward-looking statements by terms such as “expect,” “believe,” “estimate,” “intend,” “will,” “could,” “may” or “might”, or other similar expressions. Severstal cautions you that these statements are only predictions and that actual events or results may differ materially. Severstal will not update these statements to reflect events and circumstances occurring after the date hereof. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of Severstal may include, among others, general economic and competitive environment conditions in the markets in which Severstal operates, market change in the steel and mining industries, as well as many other risks affecting Severstal and its operations. These materials do not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities of Severstal in any jurisdiction, nor shall they or any part of them nor the fact of their presentation, communication or distribution form the basis of, or be relied on in connection with, any contract or investment decision. No representation or warranty, express or implied, is given by Severstal, its affiliates or any of their respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of these materials or their contents.