1. 10th CRU World Aluminium Conference June 13, 2005
RUSAL’S GROWTH STRATEGY: FROM RUSSIAN TO GLOBAL ALUMINIUM BUSINESS Pavel Ulianov, Managing Director Corporate Strategy and Development
10th CRU World Aluminium Conference
June 13, 2005

2. A global leader, from Russia
Formed in 2000: just five years ago!
Top 3 producer of aluminium and alloys globally
9.9% of global aluminium production
2.7 million tonnes of aluminium produced in 2004
Over US$5.4 billion in annual sales in 2004
Today, 63% of products sold directly to end-users (in 2000, 80% via middlemen traders)
Production development and expansion investments exceeded US$534 million in 2004
Over 50,000 employees
RUSAL is not just any industrial giant. It’s one of the three largest producers of aluminium and alloys in the world. (далее, по слайду)

3. From Siberia to the World
We operate in 7 Russian regions and 11 other countries, plus we sell to customers throughout the world *
Nikolayev Refinery
RUSAL Bratsk
RUSAL Achinsk
RUSAL Krasnoyarsk
RUSAL Novokuznetsk
CBK
RUSAL Sayanogorsk
RUSAL Sayanal
RUSAL Armenal
RUSAL Rostar
RUSAL Dmitrov
RUSAL Mosmek
RUSAL Construction Profiles
RUSAL China (Beijing)
RUSAL America Corp. (New York)
RUSAL Germany (Dusseldorf)
Moscow Headquarters
ACG (Friguia)
Mining and Refining
Office
Smelting
Fabrication
RUSAL Rostar-Vsevolozsk
RUSAL Japan (Tokyo)
RUSAL Singapore
RUSAL Boksitogorsk
RUSAL Australia
BCGI (Guyana)
Queensland Alumina Ltd.
Here is a slide to give you an idea of our international presence. Most recently we have secured our foothold in Australia by purchasing a 20% stake in Queensland Alumina Limited and becoming the largest Russian investor in the country.

4. Competing in global markets
Advantages
Dynamic company with strong management, focused on growth
Access to Siberian hydro power plants (low-cost energy supplied at average price)
Enormous productivity gains run counter to rising industry costs
A loyal and expanding client base
Strong technological R&D base (ETC and VAMI)
Challenges
Dependence on purchased alumina to supplement internal production
Remoteness of smelters from customers and raw materials
Soderberg technology limits performance of some smelters
Improving environmental performance

5. Building and sustaining truly global competitiveness
1. Technological edge
Proprietary aluminium smelting technology RA-300 (300 kA)
R&D centre currently testing more advanced cell with 400 kA (RA-400)
Few competitors have such technological capability: Alcan, Alcoa, Norsk Hydro, China
2. Productivity surge
Reduced workforce from 73,000 in 2000 to approximately 47,000 today has dramatically increased labour efficiency and narrowed the gap with competitors
From 77 tonnes per employee in 2000 to 137 tonnes per employee in 2004

6. Building and sustaining truly global competitiveness
3. Adding value
Value added product sales (alloys, billets etc) grown from around 15% in 2000 to roughly 40% today
Ambitious but realistic target to raise this share to 50% by 2013
Agreement with Alcoa allows RUSAL to focus on key businesses
4. Customer focus
Sales to global traders dropped from 80% to just 15% of total volume
Since 2000 new sales offices established in US, Germany, Japan and Singapore
Smelter distance not a barrier to improved customer service

7. Dynamic growth in aluminium smelting
Production grown by 49%
(from 1.8 to 2.7 million tonnes)
Of which
Creep/efficiency: ~200 kt
M&A: ~700 kt
Bratsk: ~150 kt
Krasnoyarsk ~240 kt
Novokuznetsk ~310 kt

8. Dynamic growth in alumina refining
Increased by 2.6 million tonnes or 217% to 3.8 million tonnes
From 7th to 5th position in global league table
Self sufficiency grown from 35% to over 70%
Of which
Creep/efficiency: 200 kt
M&A: 2,400 kt
Nikolaev kt
Achinsk kt
Friguia kt
Boxitogorsk kt
20% of QAL kt

9. Achieving our vision
To become the world’s largest and most profitable aluminium producer by 2013, RUSAL will:
Grow aluminium production to 5 million tonnes per year
Grow alumina production to 8 million tonnes per year
Raise alloy production to 50% of overall out-put
Position RUSAL as one of the world’s lowest-cost capex-per-tonne producers
Double current labour productivity
Enhance our employer of choice status (quality work environment and competitive salary)

10. A clear strategy for delivery: alumina
Development plan for alumina capacity to 2013

11. Attaining growth through 80% alumina self-sufficiency
4.8mt of alumina capacity added by 2013
Territories for growth

12. A clear strategy for delivery: aluminium
Development plan for aluminium capacity to 2013

13. Attaining aluminium growth
2.3 mt of aluminium capacity added by 2013
Greenfield projects should account for 81% of the growth
Khakassky shown as the only brownfield – 13% of growth
All smelters should add 4% to capacity through creep
Current plan assumes only 9% of growth outside Russian Federation

14. Power projects to bolster growth
Smelter fuel sources
Security of power supply and pricing is an issue for the industry
Rusal’s power advantage lies in Russia and former republics
Rusal is involved in power projects for 44% of its greenfield smelter capacity

15. Leveraging opportunities in Russia: Komi Project
Highlights
Komi region start-up planned by 2008
Bauxite reserves JORC 190 mt. Annual volume 1,400 kt
RUSAL equity share 700kt
RUSAL acquired 50% in the project from its current promoter, SUAL
SUAL and RUSAL will jointly manage the construction and the new assets under a shareholder agreement
SUAL will also sell 500 to 700 kt of alumina to RUSAL
Rationale
Reduces alumina transport cost for RUSAL
Reduces dependence on the spot alumina market for RUSAL
IFC/EBRD involvement – provides international recognition
Government support – positive for both companies

16. Investing in World Class assets
On 1 April 2005, RUSAL acquired 20% shareholding in Queensland Alumina Limited (QAL)
largest alumina refinery in the world
producing 3.85 million tonnes p.a.
a joint venture between RUSAL (20%), Comalco (38.6%) and Alcan (41.4%)
largest ever Russian investment into Australia

17. QAL: a bridge to the future
Increases RUSAL’s alumina supply:
RUSAL’s equity alumina production increases from 3.3 Mt to approximately 4.1Mt (+24%)
RUSAL’s share of QAL production (770Kt) currently meets 15% of RUSAL’s Siberian smelter needs
QAL has significant expansion potential to over 5Mt p.a.
QAL owners will continue to evaluate expansion options for the refinery

18. Priority issues for next 10 years
Efficient greenfield construction
lower capex, capital control, deliver on time and to budget
Development of improved (operationally and capex wise) technologies, for example RA 400
Raise capacity creep
increase current efficiency at current smelters
Active value adding M&A activity with prudent assumptions
Continue to monitor and control costs (especially in alumina)
Improve internal processes and risk management procedures to enable controlled and orderly growth

19. www.rusal.com Phone: +7095-720-5170 Fax: +7095-728-4912
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