1H2011 Financial Results Presentation September 30, 2011

Overview of Koks Group

No. 1 global merchant pig iron supplier with 2.1mt produced in 2010

Largest supplier of merchant coke in Russia with 2.8mt total production and 1.6mt sold to third parties in 2010

Major coking coal producer with 4.9mt coal output expected by 2016 (1.4mt coking coal produced in 2010)

High level of vertical integration in coal and iron ore with 57% derived average self sufficiency in coking coal and 64% self-sufficiency in iron

ore for pig iron production for 2009 and 2010

Well diversified global customer base

Multi-decade JORC equivalent resource base: 462mt of coking coal and 698mt of iron ore resources (IMC Montan)

Strong corporate governance track record

Key Highlights

KOKS Group: Evolution of Integrated Production Cycle

Million tonnes Million of tonnes 1993 2010

1,4

1,9

2,8

2,2 2,1

Coal Coal Concentrate

Coke Iron Ore Concentrate

Pig Iron

1,1

Coal Coal Concentrate

Coke Iron Ore Concentrate

Pig Iron

1

22,165

5,558

1,987 1,545

24,538

4,380

1,633 3,063

0

5000

10000

15000

20000

25000

30000

Sales EBITDA* Net profit** Capex

1H2010 1H2011

millions of RUR 1H2010 1H2011 % change

Revenue 22,165 24,538 +11

Adjusted EBITDA(1)

5,558 4,380 -21

% Margin 25% 18%

Net income 1,987 1,633 -18

Net Debt 18,294(2)

24,786 +35

Adjusted EBITDA LTM(3)

- 8,154

1H2011 Results

Key Financial Results Compared to 2010 FY

mln RUR

Key Operational Results

Production, mln

tonnes

1H2010

1H 2011

Change, %

Pig iron 1.1 1.1 -

Coke 1.4 1.4 -

Iron Ore 1.0 1.1 +10%

Coking coal 0.7 0.6 -14%

Key Financial Highlights

Source: Company data. (1) Adjusted EBITDA is calculated as earnings before income tax, other finance income, interest

expense, exchange gain/loss, depreciation, amortization, impairment and other non-cash items. (2) As of 31 December, 2010 (3) Last 12 months trailing

Lower coking coal extraction in 1H2011 was due to the following mining and

geological conditions:

• Vladimirskaya mine – areas of loose rock appeared in the coal

seam. At present time some measures for preliminary strengthening

of rock cover have been worked out in front of the face

• Romanovskaya mine – rock pressure on the coal face increased

temporarily complicating the equipment mounting process. At present

mining activities are carried out according to plan

*Adjusted EBITDA

** Continuing operations

Key Developments Impacting Mining Results

2

5,558

10,045

4,670

865

8,958

0

5000

10000

15000

20000

25000

30000

Pig iron prices increased in 1H2011 compared with

1H2010

39% price increase for externally purchased coal

leading to decreasing of EBITDA margin, seen as a

temporary effect

17% increase in external revenue of Coal & Coke

division

Newly established Swiss export oriented trading

subsidiary IMT was incorporated into the Group,

materially increasing short term debt

IMT’s transportation expenses in 1H2011 were

consolidated in the Group’s financial statements

resulting in EBITDA decrease

Ore & Pig Iron segment revenue decreased due to the

shift from ex-works sales by Tulachermet to sales by

IMT including delivery to final customers

Net debt rose by 35% due to consolidation trade finance

facilities of IMT and increase in outstanding balance of

investment credit lines secured for the construction of

Butovskaya and Tikhova mines

1H2011 Results (cont.)

Key Driving Factors

Consolidated revenue

growth 11%

EBITDA Bridge, RUR mln

11,790 2,275

558

+6%

+22%

+13% +134%

Operating Costs Breakdown in 1H2011

Raw materials & supplies 55%

including changes in finished

goods and work in progress

General & administrative

costs 8%

Depreciation & amortization 5%

Other operating costs 4%

Distribution costs 13%

Energy 3%

Wages & salaries 11%

Staff of production facilities

4,380

*Adjusted EBITDA

** Changes in finished goods and work in progress included

*** Non-cash Items excluded

Revenues Costs

Taxes other then income

tax 1%

2,845

2,690

+44%

% increase

3

62%

35%

2%

1%

0

20

40

60

80

100

120

Coal&Coke Iron Ore Polema Other

Segmental Overview

39% 41%

59%

19%

2%

3%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H 2010 1H 2011

Coal&Coke Ore&Pig iron Polema&Other IMT

Revenue from third parties, %

RUR24,538* mln RUR22,165* mln

*Includes sales from continued operations

EBITDA by segments

1H2011 total: RUR 4,117 mln

1H2010 total: RUR 5,465 mln

• In 1H2011 the Group’s production was approximately at the

same level as in 1H2010

• Increased revenues in 1H2011 as compared to 1H2010 were

primarily driven by price growth

4

(12%)

(9%)

66%

53%

2%

-40

-20

0

20

40

60

80

100

120

140

Other IMT Coal&Coke Iron Ore Polema

Revenues by Products and Geography

IMT’s Sales* Volumes in 1H2011

5

2,963

6,272 1,986

1,194

1,325

1,448

1,220

1,691

0

2000

4000

6000

8000

10000

12000

1 H 2010 1H 2011

Coke& coking products Pig iron

Coal & Coal concentrate Polema & other

External Domestic Sales*

7,494

10,605

External Export Sales*

4,107 2,404

10,019 10,980

545 549

0

2000

4000

6000

8000

10000

12000

14000

16000

1 H 2010 1H 2011

Coke& coking products Pig iron Polema & other

RUR mln RUR mln 14,671 13,933

Rest of

Europe 32%

USA 9%

Asia 20%

Middle East

14%

East Europe

24%

During 1H2011 IMT exported around 560 thousand tonnes of pig iron and

59 thousand tonnes of coke and coking products. Additionally OAO Koks

exported part of coke and coking products volumes directly

7,494 10,605

14,671 13,933

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H 2010 1H 2011

Total sales in Russia Total sales to other countries

RUR mln

Domestic and Export Sales*

22,165 24,538

* Excluding inter-segment sales

Balanced Debt Portfolio

Current Debt Maturity Profile(1)

Debt by Currency (1)

(1) Source: Company Data as of 30 June 2011

(US$m)

6

Source: Company Data

Debt by Creditor(1)

19%

20%

36%

6%

6%

5%

4%

1% 3%

IMT's Export Finance Debt

RUR Bonds

Eurobonds

Sberbank

Unicredit

Bank of Moscow

Gazprombank

VTB

Other Indebtedness

1%

71%

27%

1%

EUR

USD

RUR

CHF

60 79 30

9

49

350

7 178 159 25

0 50

100 150 200 250 300 350 400

2011 2012 2013 2014 2015 2016

IMT Short Debt

RUR Bonds

Eurobonds

Loans

Overview of Key Financials

Income Statement Highlights Balance Sheet Highlights

millions of RUR 1H2010 1H2011

Revenue 22,165 24,538

Cost of sales (15,374) (16,398)

Gross profit 6,791 8,140

Gross profit margin

31% 33%

Operating profit 4,066 2,913

Operating profit margin

18% 12%

Net Income * 1,987 1,633

Adjusted EBITDA LTM

- 8,154

millions of RUR

December 31,

2010

June 30,

2011

Total Assets 52,022 58,215

Total Liabilities 31,974 36,433

Total Equity 20,048 21,782

Property Plant & Equipment 24,299 26,155

Total Debt 21,245 26,593

Cash & Cash Equivalents(1)

2,951 1,807

Net Debt 18,294 24,786

Source: IFRS Financial accounts from continuing operations .

(1) Cash & cash equivalents including restricted cash

7

5,558

4,380 25%

18%

0%

5%

10%

15%

20%

25%

30%

0

1000

2000

3000

4000

5000

6000

1H 2010 1H 2011

RUR mln

* From continuing operations

Adjusted EBITDA and Adjusted EBITDA Margin

Source: CRU estimates

China (3.8)

(2.7)

2010 2015

2.3

4.0

2010 2015

5.0 5.3

2010 2015

(1.4)(2.4)

2010 2015

Europe

(2.5)

(4.4)

2010 2015

(0.2) (0.2)

2010 2015

Net Imports

Net Exports

South

America

CIS North

America

Asia (ex. China)

Favorable outlook supported by expected growth levels in global EAF steel

production (4.8% CAGR for 2011-2015) based on CRU estimates

Russian, Asian and Middle East markets have good potential for merchant pig iron

due to a number of EAF based projects initiated recently which should be

launched in the near term

CAGR -7%

CAGR 12%

Merchant Pig Iron Market – Strong Growth Expected in the Long Term

Global Exports/Imports Balance (mt)

8

181 166 183 203 215 227 238 246

231180

225 236 249 261 273 283

412346

408 439 464 488 511 529

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013 2014 2015

Asia Rest of the World

4.7%

6.1%

CAGR

2010-2015

Global Mini-Mills Steel Production

mt

Favourable competitive dynamics for KOKS Group:

– Brazilian suppliers are fragmented and utilize expensive charcoal as a coke

substitute for production of pig iron

– Russian merchant pig iron suppliers are smaller and, unlike KOKS Group, are

lack of own resource base

– Integrated steel players do not focus on merchant pig iron production

Global Merchant Pig Iron Exports

2010 Total: 10.7mt

KOKS 17%

Ukraine 14%

Brazil 22% Others 25%

India 7%

Rest of Russia

16%

Source: IIMA, Company data

Source: CRU, Metal Bulletin, Steel Business Briefing

Recent launch of 2.3mtpy

MMK-Atakas steel plant and

1.5 mtpy additional capacity at

Severstal-Columbus add

pressure on iron metallics

market

Large number of smaller scale

projects globally, particularly in

Russia, East and Middle East

driven by automobile and pipes

& tubular demand around the

globe

According to CRU over 15mtpy

of EAF capacity due to come

on stream in 2011 – 2013

Merchant Pig Iron Market – Resurgence in EAF Projects Globally

New Mini-mill Projects (mt) Key Highlights

9

Steelmaker Location Main details Start-up

MMK-Atakas Turkey 2.3M tpy flat products 2011

Severstal-Columbus USA Additional EAF with 1.5M tpy

flat products line

2011

ChelPipe Russia 0.95M tpy round billet 2011

Maghreb Steel Morocco 1.0M tpy hot band 2011

Steel Plant of Feida China 330t EAF + LF, slab caster 2011

Ruspolymet Russia 6t EAF, LF and VOD for forging

steels

2011

Aciaria Gusa Nordeste Brazil 1.2M tpy long products 2011

Pominaffliep Viet Vietnam 1M tpy long products 2011

Jindal Steel & Power India 1.5M tpy special steels 2011

NLMK-Kaluga Russia 1.5M tpy carbon and alloy billet 2011

Slovakia Steel Mills Slovakia 0.6M tpy EAF+rebar/rod mill 2011

Mass Global Investment Iraq 1M tpy rebar mill 2012

Dneprospetsstal Ukraine 60t EAF for special steels 2012

Fuxin Spedal Steel China 0.72M tpy stainless slab 2012

Severstal-Balakovo Russia 1M tpy billet caster 2012

Abul Khair Bangladesh 1.2M tpy billet mill 2012

Qatar Iron & Steel Qatar 110t EAF+LF, billet caster 2013

Ezz Steel Egypt 1.2M tpy billet/rebar mill n/a

UGMK-Tyumen Russia 0.55M tpy special steel mini-mill 2013

KOKS

37%

Oher

17%

Altai Koks

(NLMK)

28%

MKGZ (Mechel)

18%

KOKS

26%

Gubakhinskiy

Koks

7%

MMK

7%

Other

20%

Altai Koks

(NLMK)

20%MKGZ

20%

Source: Company data

Merchant Coke Market

KOKS Group’s share in Russian

merchant coke sales increased to

26% in 2010 while its share of total

coke exports from Russia reached

37% in 2010 according to Metal

Courier

40% export duty imposed on

Chinese exports further reduced

global supply starting from 2009

Further reduction of export quotas

for coke from China in the

beginning of 2011 causes additional

tightness on the market

Russian Merchant Coke Sales Russian Coke Exports

2010 Total: 6.1mt 2010 Total: 1.7mt

Source: CRU Metallurgical Coke Outlook (November 2010), Metal Expert

Global Coke Production

China

62%

America

5%

Europe

8%

Other

17%

CIS

8%

2010 CRU Estimate Total: 583mt KOKS Group is #1 Russian merchant coke supplier and exporter

High costs and long time required for restoration of idled batteries have delayed reactivation

of coke production capacities in Russia; production volumes remain depressed below pre-

crisis levels

Russian market tightness is becoming more pronounced with new 3.4M tpy blast furnace at

NLMK launched in September 2011 consuming c.1.5mt of coke

Start up of Blast Furnace 1 at Tulachermet in 2012 is likely to put further pressure on Russian

market

KOKS Group market share in Russian merchant coke production increased to 26% in 2010

while its share of total coke exports from Russia reached 37% in 2010 according to Metal

Courier

40% export duty imposed on Chinese exports has been reducing global supply from 2009

Further reduction of export quotas for coke from China in the beginning of 2011

Supply Shortage Expected in Russia

10

World’s #1 exporter of merchant pig iron

Russia's #1 exporter of merchant coke

Vertically integrated operations with substantial coking coal and iron ore reserves and

production provide operational flexibility

Undisputed niche sector leadership

Maintained healthy capacity utilisation rates throughout the economic crisis

Flexible and innovative sales strategy provides access to market opportunities

Resilient through-the-cycle business model supports cash flow generation

Core strategic goal of enhancing vertical integration in raw materials and cost optimisation

Future capital expenditure programme focuses on organic volume growth through low-risk

development projects

Management team has proven track record of delivering on the stated investment plan

Clearly defined vertical integration strategy

KOKS Group Key Competitive Strengths

11