RUSALRUSAL

Australia Week, Moscow11 May 2005

Steven Hodgson

Going Global: Australian Perspective

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• A Top 3 world aluminium producer

• 10% of global aluminium output and 75% of Russia’s production

• $5.4 billion in annual revenues

• Strong cash flows with over 80% of total revenues coming from international clients

• A low cost producer due to access to Siberian hydro-power stations, some of which controlled by RUSAL’s shareholders

RUSAL Highlights

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• No. 3 primary aluminium producer in the worldNo. 3 primary aluminium producer in the world

RUSAL in the Global Context (2004)

Primary Aluminium Primary Aluminium ProductionProduction (mln MT) (mln MT)

Source: preliminary companies results

3.4

2.7

1.7

1.3

0.9 0.8

3.4

Alcan+

Pechiney

Alcoa RUSAL Norsk Hydro BHP Billiton SUAL Rio Tinto

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RUSAL’s Map

Nikolayev Refinery

RUSAL Bratsk

RUSAL Achinsk RUSAL Krasnoyarsk

RUSAL Novokuznetsk

CBK

RUSAL Sayanogorsk RUSAL Sayanal

RUSAL Armenal

RUSAL RostarRUSAL DmitrovRUSAL Mosmek

RUSAL Construction Profiles

RUSAL China (Beijing)RUSAL America Corp. (New York)

RUSAL Germany (Dusseldorf)

Moscow Headquarters

CCurrent urrent Production Capacity Production Capacity

• 6.26.2 mln MT of bauxite mln MT of bauxite

• 4.7 mln MT of nepheline ore4.7 mln MT of nepheline ore

• 3.3 mln MT of alumina3.3 mln MT of alumina

• 2.7 mln MT of primary 2.7 mln MT of primary aluminium and alloysaluminium and alloys

• 0.1 mln MT of aluminium foil 0.1 mln MT of aluminium foil and aluminium packaging and aluminium packaging materialsmaterials

• 2.2 billion of aluminium 2.2 billion of aluminium beverage cansbeverage cansACG (Friguia)

**

*

Mining and Refining

* Office

Smelting

Fabrication

*

RUSAL Rostar-Vsevolozsk

* Sale of Samara & Belaya Kalitva to Alcoa was completed at the beginning of 2005

*

*

RUSAL Japan (Tokyo)

RUSAL Singapore

• Global presence, with the core value in RussiaGlobal presence, with the core value in Russia

RUSAL Boksitogorsk

*RUSAL Australia

BCGI (Guyana)

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RUSAL Regional Presence (2004)

• RUSAL has strong positions in major regions RUSAL has strong positions in major regions

• Sales to North America doubled over the last two yearsSales to North America doubled over the last two years

*Primary aluminium and alloys only

** Due to sale of the rolling business to Alcoa in 2005, RUSAL will increase third party aluminium sales in Russia since 2005

RUSAL’s estimated market share*Regional sales break-down*

Source: Brook Hunt, RUSAL

Russia**8%

Europe36%

North America

22%

Asia 34%

Rus s ia 40%As ia (incl. Japan and China) 7%Europe 12%North America 8%

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RUSAL’s Strategy: Aggressive Growth

Our strategic objective is to be the world’s largest and most profitable aluminium producer by 2013

Increase primary production to 5 million t/yrIncrease our own production of alumina to 8 million t/yrIncrease the proportion of value-added products at smelters to 50% of total production Retain leading positions in terms of cost-competitiveness of primary production and achieve cost leadership in alumina productionRUSAL will be one of the world’s lowest-cost producersRUSAL will be a preferred employer, for the most talented people

Provide optimum market, customer and technical support in the industries it serves Develop reliable, long-term business partnerships in the countries and regions where it operates.

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• Advantages

RUSAL is a dynamic company with a strong management focus on growthRUSAL has access to Siberian hydro power plants (low-cost energy supplies at average price <1 cent US/kWh)RUSAL remains focused on productivity to limit rising costsRUSAL has developed a loyal client baseRUSAL has a strong technological R&D base

• WeaknessesRemoteness of our smelters from our customers and raw materialsDependence on purchased alumina to supplement internal productionOlder technology limits the performance of some smeltersEnvironmental performance needs to improve

Competitive Position in the Global Market

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RUSAL’s Approach: Aluminium Production

Development plan for aluminium capacity to 2013

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2000

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4000

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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

2.3 mt of aluminium capacity added by 2013Creep

6%Brownfield

13%

Greenfield81%

Profile of Aluminium Growth

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Current Smelter Projects

Construction of Khakas Aluminium Smelter in Russia with the capacity

of 350 000 tonnes

Feasibility study for construction of 600 000 tonne smelter in Ikrutsk region, Russia

Plans to construct a 600 000 tonne smelter in Krasnoyarsk region, Russia

Modernisation and expansion of Krasnoyarsk smelter in Russia to 989 000 tonnes

Modernisation and expansion of Sayanogorsk smelter in Russia to 482 000 tonnes

Feasibility study for construction of a new 200 000 tonne aluminium smelter in Tadjikistan

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RUSAL’s Approach: Alumina Production

Development plan for alumina capacity to 2013

0

2000

4000

6000

8000

10000

2004

QA

L A

cquis

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3140

770400

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Acquisition satisfies strategic position but it only accounts for 16% of planned growth

Brownfields and creep should represent 28% of growth

Greenfields should account for 56% of the growth

77% of the growth is likely to occur outside of the Russian Federation

44% of growth may increase political risk profile

4.8mt of alumina capacity added by 2013Acquisition

16%

Creep8%

Brownfield20%

Greenfield56%

RUSAL currently has the necessary portfolio of projects to satisfy its strategic objective for alumina growth

Profile of Alumina Growth

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Current Current Alumina Projects

Acquisition of 20% of QAL in Australia and participation in the refinery expansion program

Modernisation and expansion programs on Achinsk Refinery in Russia and Nikolaev Refinery in Ukraine to increase alumina output by 400 000 tonnes

Partnership concluded with SUAL on joint development of Komi Project in Russia to increase alumina production by 700 000 tonnes

Expansion of Friguia refinery in Guinea from 780 000 tonnes to 1,5 mln tonnes under consideration following completion of detailed feasibility study

Preliminary Feasibility study for the construction of a 1.4 million tonne refinery at the Dian-Dian deposit in Guinea has been completed

Plan to bid at a tender to develop a 500 million tonne Aurukun bauxite deposit in Australia

Development of 3 North Onega bauxite deposits in Russia with a possibility to construct 1,4 mln tonne refinery on their base

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Investing in World Class Assets - QAL• On 1 April 2005, RUSAL closed on the acquisition of a On 1 April 2005, RUSAL closed on the acquisition of a

20% shareholding in Queensland Alumina Limited 20% shareholding in Queensland Alumina Limited (QAL)(QAL)

- QAL is the largest alumina refinery in the world QAL is the largest alumina refinery in the world today, producing 3.85 million tonnes p.a., today, producing 3.85 million tonnes p.a., approximately 10% of the Western World’s approximately 10% of the Western World’s productionproduction

- The refinery is located at Gladstone, QueenslandThe refinery is located at Gladstone, Queensland

- It is a joint venture company (RUSAL - 20%, It is a joint venture company (RUSAL - 20%, Comalco - 38.6%, Alcan - 41.4%)Comalco - 38.6%, Alcan - 41.4%)

- QAL is independently managed and staffedQAL is independently managed and staffed

• It is the largest Russian investment into Australia to It is the largest Russian investment into Australia to datedate

- The RUSAL investment cost US$461 million The RUSAL investment cost US$461 million (US$401 million in cash and US$60 million in (US$401 million in cash and US$60 million in assumed debt)assumed debt)

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What the QAL investment means for RUSAL• The acquisition of the 20% QAL shareholding The acquisition of the 20% QAL shareholding

significantly increases RUSAL’s alumina supply significantly increases RUSAL’s alumina supply

- RUSAL’s equity alumina production increases RUSAL’s equity alumina production increases from 3.3 Mt to approximately 4.1Mt (+24%)from 3.3 Mt to approximately 4.1Mt (+24%)

- RUSAL’s share of QAL production (770Kt) RUSAL’s share of QAL production (770Kt) currently meets 15% of RUSAL’s Siberian currently meets 15% of RUSAL’s Siberian smelter needssmelter needs

- As part of the acquisition, RUSAL has As part of the acquisition, RUSAL has assumed the previous owner’s alumina sales assumed the previous owner’s alumina sales commitments. These progressively expire commitments. These progressively expire and by 2008 all RUSAL’s share of QAL and by 2008 all RUSAL’s share of QAL alumina will be shipped to Russia through the alumina will be shipped to Russia through the Russian Far EastRussian Far East

• QAL has significant expansion potential to over QAL has significant expansion potential to over 5Mt p.a.5Mt p.a.

- The QAL owners will continue to evaluate The QAL owners will continue to evaluate expansion options for the refineryexpansion options for the refinery

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Current RUSAL Project Work in Australia

RUSAL has made it public that it intends to have a long term presence in Australia and that it is considering options beyond its current interest in QAL.

Aurukun Bauxite Mine Development

One option presently being considered is development of the Aurukun Bauxite reserve south of Weipa on Cape York. RUSAL is one of several parties who have registered interest in the reserve which, it is expected, the Queensland Government will allocate to a successful tenderer in the coming 12 months.

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Current RUSAL Project Work in Australia

• The Aurukun bauxite deposit is significant (est. 200 - 500Mt), The Aurukun bauxite deposit is significant (est. 200 - 500Mt),

but actual reserves evaluation is yet to be released by the but actual reserves evaluation is yet to be released by the Queensland GovernmentQueensland Government

• The Queensland Government will publish a process for The Queensland Government will publish a process for allocation of the mining lease, including restrictions on allocation of the mining lease, including restrictions on company participation and rules for screening of participantscompany participation and rules for screening of participants

• All major Aluminium companies have shown interest All major Aluminium companies have shown interest (including Alcoa, Alcan, Comalco, BHPB), other mining (including Alcoa, Alcan, Comalco, BHPB), other mining companies (e.g.: Xstrata) as well as several specially formed companies (e.g.: Xstrata) as well as several specially formed companies focused on the development of the resourcecompanies focused on the development of the resource

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Appendices

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Bauxite and Alumina Production• CBK

• BCGI

• Nikolayev Alumina Refinery

• Achinsk Alumina Refinery

• ACG (Friguia Refinery)

• Boksitogorsk Alumina Refinery

• located in Guinea (Kindia deposit)• output in 2004 - 2,070,000 MT of bauxite• plans to increase output to 3,000,000 MT of bauxite

• located in Guyana (Kurubuku deposit)• output in 2004 – 1,300,000 MT of bauxite• agreement with the Government of Guyana for joint development of bauxite deposits

to increase bauxite output from 1.3 mln to 2.5 mln tpy

• located in Ukraine and has access to the only port in CIS equipped to unload bauxite• uses Bayer process (Pechiney technology) • annual capacity - 1,300,000 MT of alumina• modernisation program started in 2000 to expand capacity up to 1,600,000 MT

• located in Eastern Siberia in close proximity to the Krasnoyarsk Aluminium Smelter• produces alumina from nepheline ore; has its own mines• annual capacity – 1,100,000 MT of alumina• modernisation program started in 2000 to expand capacity up to 1,200,000 MT

• located in Guinea, produces bauxite and alumina• annual capacity - 780,000 MT of alumina• has its own mine with annual capacity of 2.8 mln MT of bauxite

• located in Leningrad region, about 230 km to the south-east of St.-Petersburg• main products are alumina, aluminium hydroxide, white electrocorundum and gallium • output in 2004 - 160,000 MT of alumina and alumina products

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Primary Aluminium and Alloys Production• Bratsk

Aluminium Smelter

• Krasnoyarsk Aluminium Smelter

• Sayanogorsk Aluminium Smelter

• Novokuznetsk Aluminium Smelter

• largest in the world (30% of the Russian output)• annual capacity - 950,000 MT• modernisation started to expand capacity to over 1,000,000 MT by 2005

and switch production to using dry anodes• quality management system ISO 9001 certified and environmental ISO

14001 certified

• second largest in the world • annual capacity - 930,000 MT• modernisation started to switch production to using dry anodes• high and highest grades account up to 97% of production• quality management system ISO 9001 and environmental ISO 14001

certified

• built in 1985, one of the most modern, technologically advanced and environment friendly smelters in the world

• quality management system ISO 9001 and environmental ISO 14001 certified

• high grade aluminium accounts for over 90% of total production• annual capacity - 480,000 MT, capacity expansion to 760,000 MT under

consideration

• annual capacity - 300,000 MT• quality management system ISO 9001 certified

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Aluminium Fabrication

• Cans

• two foil mills: SAYANAL (Sayanogorsk) and Armenal (Armenia);

• SAYANAL (located next to Sayanogorsk Smelter) with capacity of 47,000 tonnes provides a complete production cycle from aluminium coils to foil , ISO 9001 and 14001 certified;

• Armenal is currently closed for modernisation and will resume production of foil and packaging materials in 2006-2007 at 25,000 tonnes per year

• Foil and Packaging Materials

• two beverage cans plants Rostar (Dmitrov, Moscow region) and Rostar-Vsevolzhsk (Leningrad region) and a rolling mill, DOZAKL (Dmitrov);

• combined beverage can capacity at 2.17 billion units, plans to expand capacity by 0.85 billion units in 2005;

• 25,000 tonnes capacity in flat rolled products for food cans and packaging materials