2. EVRAZ in brief
One of the largest vertically integrated steel and mining companies in the world
Top-20 steel producer in the world based on crude steel production
Leader in the Russian and CIS construction and railway product markets
No 1 producer of rails and large diameter pipes in North America
One of the leading producers in the global vanadium market
14.2 million tonnes of steel products produced in 2012
2011 consolidated revenue of US$16.4 billion, EBITDA of US$2.9 billion; H1 2012
revenue of US$7.6 billion, EBITDA of US$1.2 billion
Total debt as at 30 June 2012 of US$7.8 billion, net debt/LTM EBITDA of 2.5x
Constituent of FTSE 100 index since December 2011 and the only steel stock in UK
FTSE All-Share index; part of MSCI UK and MSCI World Indices
Total dividend payments of US$375 million in 2012
Investor Presentation January 2013 1
3. Global operating model
150 Russia/CIS
1,313 100 3,730
529
Europe
122 580
1,717
North America
Asia
231
H1 2012 steel sales volume South America Africa H1 2012 steel sales volume
by geography by product
Africa and
RoW Other
4% Tubular 4%
5% Semi-
finished
Russia &
Asia
CIS
Steel mills 22%
22% Flat-rolled
48%
Iron ore mining 18%
Coal mining
Vanadium
Americas Railway Construction
17% Sea ports 14% 37%
Europe
8%
Mezhegey coal mine in development
# Third party steel products sales* (Kt), H1 2012 # Internal supply of slabs and billets from Russian steel mills (Kt)
* Excluding routes with sales volumes below 50kt each, together totalling 93kt
Investor Presentation January 2013 2
5. Q4 2012 steel production
Crude steel output decreased by 6% vs. Q3 2012 due to planned maintenance at EVRAZ ZSMK
in Russia and suspension of steel shop’s operations in the Czech Republic to reduce slab
inventory
Consolidated production of finished steel goods was marginally flat QoQ at 2.6-2.7 mt
PCI project at EVRAZ NTMK was mostly completed with ramp-up scheduled for Q1 2013
Rail mill at EVRAZ ZSMK launched in early 2013 after modernisation project
Production of steel products, Kt Share of finished products in product mix
1,400
1,200
1,000
20%
800
600 Semi-finished products
400 Finished products
200
0 80%
Semi-finished Construction Railway Flat-rolled Tubular Other steel
products products products products products products
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
Investor Presentation January 2013 4
6. 2012 steel production
EVRAZ’s overall production of crude steel decreased by 5% vs. 2011 due to
a large number of overhauls in Russia for asset modernisation
suspensions of steelmaking in the Czech Republic for maintenance and to reduce slab inventory
interruptions of production in South Africa caused by industrial actions
Consolidated production of finished steel goods decreased by 5% compared to 2011 as a result of
lower output of flat-rolled products in Europe and lower production of railway products in Russia
due to reconstruction of EVRAZ ZSMK rail mill
Production of steel products, Kt Share of finished products in product mix
6,000
5,000
22%
4,000
3,000
Semi-finished products
2,000 Finished products
1,000
78%
0
Semi-finished Construction Railway Flat-rolled Tubular Other steel
products products products products products products
2011 2012
Investor Presentation January 2013 5
7. Steel: Russia
Full economic utilisation of Russian steelmaking capacity Steel product sales, domestic (Russia and CIS) vs. export, Kt
maintained through 2012
In 2012 crude steel output decreased by 4% vs. 2011 due to 5,541 5,586
a larger number of overhauls of blast furnaces and
converters as well as the EVRAZ ZSMK rail mill
32% 33%
modernisation project
In 2012, production of railway products was 14% lower vs.
2011 as EVRAZ ZSMK rail mill was closed for Export
reconstruction from April 2012 Domestic
68% 67%
Average prices for some high value added products such as
railway products enjoyed positive dynamics due to improved
product mix
H1 2011 H1 2012
Steel production volumes, Kt EVRAZ average selling prices, $/t (ex works)
10,942
10,592
2012 2011 Q4 2012 Q3 2012
4,202 4,091 Semi-finished products 457 529 396 443
Semi-finished products
Construction products
Construction products 677 732 667 680
Railway products
4,220 4,281 Flat-rolled products Railway products 891 882 911 908
Other steel products
Flat-rolled products 607 706 559 577
1,564 1,346
356 334
600 540 Other steel products 729 790 709 714
2011 2012
Investor Presentation January 2013 6
8. Steel: North America
In 2012, EVRAZ’s North American steelmaking facilities continued to operate at high utilisation rates, and output of crude steel
increased by 4% vs. 2011
Production of finished steel goods was marginally flat year-on-year
Slightly better results for construction and tubular products were achieved through redistribution of production capacity from
other product categories:
Output of construction products increased by 9% as a result of healthy demand for rod & bar products. A third working shift at
EVRAZ Pueblo was added to meet the increased demand for these products
Production of tubular goods increased by 3% due to an overall improvement in customer demand
Steel production volumes*, Kt Average selling prices, $/t (ex works)fyreetfjpigtyre4wjojioyugy
2,646 2,661
302 330 2012 2011 Q4 2012 Q3 2012
490 486 Construction products 845 897 767 810
Construction products
Railway products Railway products 989 1,023 932 928
1,007 975
Flat-rolled products
Tubular products
Flat-rolled products 1,017 1,134 901 992
848 869
Tubular products 1,509 1,486 1,461 1,472
2011 2012
* FY 2012 production volumes are preliminary
Investor Presentation January 2013 7
9. Steel: Europe and South Africa
Crude steel output in Europe was lower by 42% vs. 2011 as Average selling prices, $/t (ex works) fyreetfjpigtyre4wjojioyugy
a result of prolonged maintenance works at the EVRAZ
Vitkovice Steel’s steelmaking facility in July-August 2012 EUROPE 2012 2011 Q4 2012 Q3 2012
and its suspension in Q4 2012 in order to reduce slab
Construction products 877 896 890 877
inventory
Flat-rolled products 743 907 674 715
Operational performance of EVRAZ Highveld Steel and
Vanadium was impacted by unstable operations in the first SOUTH AFRICA 2012 2011 Q4 2012 Q3 2012
half of 2012, the industrial action in Q3 2012, ramp-up
Semi-finished products 489 587 699 742
problems in the second half of the year following the end of
industrial action as well as by a transportation strike in the Construction products 737 797 730 712
country
Flat-rolled products 765 837 699 740
Other steel products 604 677 636 615
Steel production volumes, Europe, Kt Steel production volumes, South Africa, Kt
1,267
131 564
1,028 51
69 461
15
Construction products 179
169
Flat-rolled products
1,057 Semi-finished products
920 Other steel products Construction products
287
243 Flat-rolled products
Other steel products
79 39 47 34
2011 2012 2011 2012
Investor Presentation January 2013 8
10. Mining: Coal
Average selling prices, $/t (ex works)fyreetfjpigtyre4wjojioyugy
In 2012, raw coking coal output by Yuzhkuzbassugol was
35% higher vs. 2011 due to more stable performance of the
mines as a result of successfully implemented operational
improvement programmes 2012 2011 Q4 2012 Q3 2012
Production of coking coal concentrate was flat year-on-year Raw coking coal 69 97 63 65
Output of raw steam coal decreased by 23% vs. 2011 Raw steam coal 27 36 25 27
following the repositioning of a longwall at the
Gramoteinskaya mine in Q1 2012, as well as suspension of Coking coal concentrate 136 203 116 129
mining at the Gramoteinskaya mine in Q4 2012
Steam coal concentrate 56 80 49 59
Steam coal concentrate production decreased by 51% due
to larger raw steam coal sales and lower output
EVRAZ’s coal production volumes, Kt Raspadskaya’s coal production volumes, Kt
10,789
9,268
2,283
2,965
Raw steam coal (mined)
Raw coking coal (mined) 7,002
8,506 6,251
6,303
2011 2012 2011 2012
* Reported numbers are for 100% production. As at 31 December 2012 EVRAZ held a 41% effective
interest in the Raspadskaya coal company, on 16 January 2013 EVRAZ increased interest in
*
Raspadskaya to 82%
Investor Presentation January 2013 9
11. Mining: Iron ore
In 2012, production of saleable iron ore products by the Company was slightly down by 2% compared to 2011
Production of saleable concentrate in Russia decreased by 13% due to the following:
termination of processing of third party raw ore being uneconomic in the current market environment;
change in the product mix (larger volumes of sinter output);
scheduled kiln repair at EVRAZ KGOK iron ore processing plant in Q3 2012
Output of lumpy ore by EVRAZ Sukha Balka in Ukraine in 2012 was 7% higher vs. 2011 as a result of smoother repositioning of a
skip conveyor in the reporting year vs. 2011
Decreased production of iron ore in South Africa was due to operational issues as a result of an industrial action at EVRAZ
Highveld Steel and a nationwide transportation labour strike
Iron ore production volumes, Kt EVRAZ average selling prices, $/t (ex
works)fyreetfjpigtyre4wjojioyugy
21,170 20,753
1,257 1,174 2012 2011 Q4 2012 Q3 2012
6,447 5,615 Lumpy ore (South Africa)
Concentrate, saleable
Concentrate, saleable (Russia) 84 111 70 82
(Russia)
Sinter (Russia)
4,473 4,698
Pellets (Russia) Sinter (Russia) 91 128 70 89
Lumpy ore (Ukraine)
Pellets (Russia) 91 132 74 95
5,907 6,051 Fines ore (South Africa)
Lumpy ore (Ukraine) 61 78 50 61
2,446 2,608 Fines ore (South Africa) 12 24 13 9
640 607
2011 2012
Investor Presentation January 2013 10
12. Vanadium
In 2012, the strong performance of Russian operations Ferrovanadium prices (FeV), $/kg contained V
(+16% y-o-y) fully offset lower output at EVRAZ Highveld
Steel and Vanadium (-21% y-o-y) and led to overall growth
of production of vanadium in slag at EVRAZ by 2% to 20,741
tonnes of V
Production of final vanadium products fell by 12%
26.8
Total production of ferrovanadium decreased by 14% vs. 25.6 25.6
25.3
2011 but increased by 15% at EVRAZ’s own facilities in the 24.3
26.0 26.1
23.7
Czech Republic and Russia which were operating at 24.5 24.6 24.2
maximum capacity to meet the improved market demand 23.0
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Source: LMB
Production of Vanadium products, t of V* EVRAZ average selling prices, $/t (ex works)f
20,834
2012 2011 Q4 2012 Q3 2012
18,434
Vanadium in final products
Ferrovanadium Ferrovanadium 24,062 27,653 23,579 24,517
16,683 Nitrovan®
14,381 Nitrovan® 27,900 29,506 26,912 28,615
Oxides, vanadium aluminium
and chemicals Oxides, vanadium aluminium
32,579 36,194 36,024 30,944
and chemicals
2,874 2,723
1,277 1,330
2011 2012
* Calculated in pure vanadium equivalent
Investor Presentation January 2013 11
13. Key Investment Projects
Cumulative CAPEX by CAPEX in CAPEX in
Total CAPEX 30.06.2012 H1 2012 H2 2012,
Project $m $m $m $m Project Targets Project targets
Coal ore & coal
Iron & iron ore
o Coal production of 2 mtpa
Yerunakovskava VIII mine construction 390 81 47 150
o Start in Q1 2013, full capacity to be reached in Q1 2014
o Maintaining self-sufficiency in high-quality hard coking coal after
Development of Mezhegey coal deposit depletion of existing deposits
190 23 18 25
(Tyva, Russia)
o On-stream Q4 2013, reaching full capacity by Q4 2014
o Iron ore production to be increased to 55 mtpa
Expansion of Kachkanar mine 76 60 13 14
o On-stream by the end of Q1 2013
Steel
o Capacity of 950k tonnes of high-speed rails, including 450k
Reconstruction of rail mill at EVRAZ ZSMK
490 366 84 113 tonnes of 100 metre rails
(former NKMK)
o On-stream in Q1 2013, fully operational since Q4 2013
o Coke consumption is expected to reduce by 20% and natural
Pulverised coal injection (PCI) at EVRAZ gas by 50% for the additional usage of 150 kg of PCI coal per
170 130 28 29
NTMK tonne of pig iron
o Launched in December 2012, fully operational in Q1 2013
Pulverised coal injection (PCI)
150 88 27 50 o On-stream by 2014, fully operational since Q1 2014
at EVRAZ ZSMK
Reconstruction of mechanical area at o Production of higher-quality wheels
40 25 3 8
EVRAZ NTMK wheel & tyre mill o Start production in Q2 2014; full capacity by Q3 2014
o Capacity: 450 ktpa of construction products
Construction of Yuzhny rolling mill 135 55 16 32
o On-stream by mid-2013, fully operational in 2015
o Capacity: 450 ktpa of construction products
Construction of Kostanay rolling mill 125 38 18 28
o On-stream by mid-2013, fully operational in Q3 2014
Final stage of completion In progress
Investor Presentation January 2013 12
14. Acquisition of Raspadskaya
In January 2013, EVRAZ completed acquisition of an indirect controlling interest in OJSC Raspadskaya,
increasing its stake from 41% to 82%
Remaining 18% of Raspadskaya shares will remain listed on the Russian Stock Exchange, MICEX-RTS
Pursuant to the terms of the Acquisition, EVRAZ has issued new ordinary shares which are admitted to trading
on the Main Market of the London Stock Exchange
The resulting total number of voting rights in the Company is 1,472,582,366 as at 16 January 2013
EVRAZ issued 33,944,928 new warrants to subscribe for new 33,944,928 ordinary shares in EVRAZ as well as
will pay to the seller $202m in four equal payments in Q1, Q2 and Q3 2013 and Q1 2014
Raspadskaya will be consolidated in EVRAZ’s financial statements from 16 January 2013
Raspadskaya assets Major shareholdings
Facilities Three underground coking coal Shareholder Number of ordinary % of issued
mines shares share capital
Open-pit coking coal mine Mr. Roman Abramovich 471,302,870 32.01%
Raspadskaya coal concentrate Mr. Alexander Abramov 330,216,751 22.42%
preparation plant
Mr. Alexander Frolov 164,892,446 11.20%
Coking coal
reserves 1,314 million tonnes Mr. Gennady Kozovoy 67,191,316 4.56%
(IMC, 31/12/2011) Mr. Alexander Vagin 66,326,503 4.50%
6.3 mt of raw coking coal Mr. Igor Kolomoyskiy 59,865,435 4.07%
Production in 2011 3.8 mt of coking coal concentrate Mr. Eugene Shvidler 46,825,408 3.18%
Investor Presentation January 2013 13
16. H1 2012 summary
US$ million unless otherwise stated
H1 2012 H1 2011 Change
Revenue 7,619 8,380 (9)%
EBITDA1 1,175 1,629 (28)%
EBITDA margin 15.4% 19.4% (21)%
Net profit/(loss) (50) 263 (119)%
Dividends for the period (cents/ordinary share) 11c 6.7c 64%
Operating cash flow 1,089 1,594 (32)%
Capex 565 462 22%
Net debt2 6,070 6,442 (6)%
Short-term debt2 1,550 626 148%
Steel sales volumes3 (‘000 t) 7,713 7,946 (3)%
1 EBITDA represents profit from operations plus depreciation, depletion and amortisation, impairment of assets, foreign exchange loss
(gain) and loss (gain) on disposal of property, plant and equipment and intangible assets
2 As at 30 June 2012 and 31 December 2011 respectively; short-term debt includes current portion of finance lease liabilities, including lease liabilities directly associated with
disposal groups classified as held for sale
3 Here and throughout this presentation segment sales data refer to external sales unless otherwise stated
Investor Presentation January 2013 15
17. Liquidity and debt maturity profile
Total debt of $7,833m as of 30 June 2012, having increased as a result of drawing on available credit lines to
increase the cash balance
Cash and cash equivalents totalled $1,763m ($801m as at 31 December 2011)
Net debt - $6,070m (6% decrease vs. 31 December 2011)
In December 2012, EVRAZ received consent of the holders of its 8.25% Eurobonds due 2015 to delete the
covenant requiring to maintain the Net Leverage Ratio at or below a specified level (“maintenance covenant”)
In December 2012, EVRAZ successfully placed ECPs in the total amount of US$250 million
EVRAZ* issuer credit ratings (S&P B+, Stable; Moody’s Ba3, Stable; Fitch’s BB-, Stable)
Debt cost** and average maturity Debt*** maturities schedule (as at 30 June 2012), $m
8 5
7.8 4.8
2,000 1,875
7.6 4.6
7.4 4.4
1,400 Q4
7.2 4.2 1,500 1,373
Q3
7 4
1,124
981 Q2
6.8 3.8 1,000
Q1
6.6 3.6 630
500
414
6.4 3.4
6.2 3.2 36
6 3 0
31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 2012 2013 2014 2015 2016 2017 2018 2019-
2023
% Years
* All ratings refer to Evraz Group S.A., except for Fitch’s, which also refers to EVRAZ plc
** Weighted average cost of debt
*** Principal debt (excl. interest payments)
Investor Presentation January 2013 16
18. Capex dynamics
$m
1,400
1,281
1,200
1,103
1,000
H2 2012 capex
832
800
expected in
the range of
600 565 $650-750m
441
400
200
-
2008 2009 2010 2011 H1 2012
Maintenance, Steel and other operations Iron ore mine development Coal mine development * Investment projects
* Investment into maintaining and developing mining volumes, such as preparation of coal seams
Investor Presentation January 2013 17
20. HSE performance
Increase in LTIFR and FIFR vs. H1 2011 Lost Time Injury Frequency Rate (LTIFR)*
Safety remains a key priority 0.94
Key ongoing safety initiatives: 0.81
Contractor safety management
Fall prevention (follow 6S project)
PPE (Personal Protective Equipment)
Improvement in workplace conditions
Tests for drugs and alcoholic intoxication
Internal safety training
Key ongoing environmental initiatives:
H1 2011 H1 2012
Water use: Wastewater dumping reduction programme
(ZSMK, NTMK, Yuzhkuzbassugol, Evrazruda, DMZP); Fatal Injury Frequency Rate (FIFR)*
Air emissions: Air protection equipment upgrade (ZSMK,
DMZ, Claymont);
Waste management: Waste recycling and reuse 2.02
programmes (ZSMK,NTMK, Vanady Tula) 1.85
H1 2011 H1 2012
* Calculated as the total number of work-related injuries (which resulted in the loss of work time) – LTIFR or fatalities – FIFR/total number of working hours during the period x 1,000,000
Investor Presentation January 2013 19
22. H1 2012 financial highlights
Consolidated revenue by segment, $m
The major factor of the decrease in revenue
was reduced steel sales volumes and prices 8,380
482
Decrease in revenues and EBITDA was also 320 541
7,619
2,040 263
a result of lower Mining segment contribution 1,383 Other operations
because of lower raw materials volumes and Vanadium
prices 7,492
Mining
7,019
Steel
Eliminations
(1,954) (1,587)
H1 2011 H1 2012
Revenue drivers, $m Consolidated EBITDA by segment*, $m
1,629
8,380 80
7,619 1,175
(437) Vanadium & Other
962
(324) 98 operations
Mining
417
Steel
Unallocated &
744 699 Eliminations
(157) (39)
H1 2011 Revenue Volumes Prices H1 2012 Revenue H1 2011 H1 2012
* Vanadium & Other operations consists in H1 2011 of $(3)m Vanadium segment EBITDA and $83m of Other
operations EBITDA and in H1 2012 of $4m and $94m respectively
Investor Presentation January 2013 21
23. Revenue: geographic breakdown
H1 2011
H1 2012
Africa & Africa &
Other
RoW RoW
Asian Other Asian
3% 3%
7% 9%
Thailand
4%
China Thailand
1% 3%
China
Middle East 1% Russia
3% 41%
Middle East
Russia 2%
40%
Europe Europe
13% 10%
Ukraine Americas Ukraine
Americas 3%
4% 24%
22% Other CIS
Other CIS
3% 4%
Investor Presentation January 2013 22
24. Steel products: sales by market
Kt $m
Kt
3,331
3,331
3,324
3,324
2,661
2,604
1,732
1,732
1,586
1,586 1,652
1,582
1,441
1,441
1,345
1,345
1,015 1,068
858
858
758
632
632
431 406
431 406 492
300 275
300 275 359 336
257 214
Russia
Russia CIS
CIS Europe
Europe Americas
Americas Asia
Asia Africa & RoW
Africa & RoW Russia CIS Europe Americas Asia Africa &
RoW
H1 2011 H1 2012
H1 2011 H1 2012
Investor Presentation January 2013 23
25. EBITDA
US$ million
Six months ended 30 June
2012 2011
Consolidated EBITDA reconciliation
Profit from operations 430 859
Add:
Depreciation, depletion and amortisation 668 501
Impairment of assets 80 32
Loss on disposal of property, plant & equipment 25 17
Foreign exchange (gain) loss (28) 220
Consolidated EBITDA 1,175 1,629
Investor Presentation January 2013 24
26. Resilient and profitable asset base
EBITDA, EVRAZ Russia, $m EBITDA, EVRAZ North America, $m
1,276
1,051
265
216
H1 2011 H1 2012 H1 2011 H1 2012
EBITDA, EVRAZ Ukraine, $m EBITDA, EVRAZ Europe, $m EBITDA, EVRAZ South Africa, $m
81
87
29
6
(3) H1 2011 H1 2012
(6)
H1 2011 H1 2012
H1 2011 H1 2012
Note. (1) Consolidated EVRAZ plc EBITDA also includes Unallocated EBITDA of $(109)m in H1 2011 and $(89)m in H1 2012
(2) EVRAZ North America includes EVRAZ Inc. NA, EVRAZ Inc. NA Canada, Stratcor; EVRAZ Ukraine includes EVRAZ DMZP, Sukha Balka and coking plants; EVRAZ Europe includes EVRAZ
Palini e Bertoli, EVRAZ Vitkovice Steel, Nikom and attributable trading margin
Investor Presentation January 2013 25
27. Cost structure by segment
Cost structure of Steel segment, $m Cost structure of Mining segment, $m
6,237
5,749
9%
8% Other 1,177
15%
3% 1,092
Energy
8% 9% 19%
4% 4% Depreciation 23%
6% 9% 11%
7% Staff Other
4% 13%
4% Transportation
5% Energy
17% 30%
Semi-finished products 15%
16% Depreciation
Other raw materials Staff costs
17% 24%
15% Scrap 23% Transportation
Coking coal 13% Raw materials
21% 19% 10%
Iron ore 12% 7%
H1 2011 H1 2012 H1 2011 H1 2012
Cost structure of Vanadium segment, $m
304
242 Other
30%
Energy
12% 41% Depreciation
5%
12% Staff costs
6% 13%
5% Transportation
13%
35% Raw materials
28%
H1 2011 H1 2012
Investor Presentation January 2013 26
28. Group cost dynamics
EVRAZ benefits from high level of vertical integration in iron ore and coking coal
Costs were positively impacted by rouble devaluation in H1 2012 (more than 50% of the costs are rouble-
denominated)
In H1 2012 steel segment costs benefited from lower raw materials prices: costs of raw materials accounted for
45% of Steel segment revenues in H1 2012 vs. 51% in H1 2011
Implementation of cost saving technologies (e.g. PCI), further development of own power generation, progress
of Lean project are expected to help mitigate negative impact of growing energy, transportation and labour costs
Consolidated cost of revenues by cost elements Cash Cost*, Slabs & Billets, $/t
H1 2012, % H1 2011, %
of total CoR of total CoR 479
437 448
426 410
Raw materials, including 35% 40% 403 401
Iron ore 6% 8% 438
415 401
Coking coal 9% 12% 395 379 372 368
Scrap 14% 14% Slabs
Other raw materials 6% 6% Billets
Semi-finished products 4% 6%
Transportation 6% 7%
Staff costs 14% 13%
Depreciation 10% 7% Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Electricity 5% 5%
Natural gas 4% 4%
Other costs 22% 18% * Average for Russian steel mills, integrated cash cost of production, EXW
Source: Management accounts
Investor Presentation January 2013 27
29. FCF generation
Free cash flow generation of $362m in H1 2012
Further release of working capital achieved
1,175 91
$m
1,132
1,089
(43)
(134)
(233)
92 362
(21)
(565)
EBITDA H1 Non-cash items EBITDA (excl. Changes in Income tax paid Cash flows from Net interest paid Capex CF from Collateral under Free cash flow
2012 non-cash items) working capital operating (incl. realised investing swaps
(excl. income activities gain on swaps & activities
tax) covenants reset (excl.capex and
costs) interest
received)
* Free cash flow comprises cash flows from operating activities less interest paid and cash flows used investing activities
Investor Presentation January 2013 28
30. Net debt
US$ million
30 June 2012 31 December
2011
Net debt calculation
Add:
Long-term loans, net of current portion 6,271 6,593
Short-term loans and current portion of long-term loans 1,531 613
Finance lease liabilities, including current portion 31 39
Less:
Short-term bank deposit 0 (2)
Cash and cash equivalents (1,763) (801)
Net debt 6,070 6,442
Investor Presentation January 2013 29
31. Disclaimer
This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of
EVRAZ plc (“EVRAZ”) or any of its subsidiaries in any jurisdiction (including, without limitation, EVRAZ Group S.A.) (collectively, the “Group”) or an inducement to
enter into investment activity. No part of this document, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or
commitment or investment decision whatsoever. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on,
the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of EVRAZ, the Group or any of its affiliates, advisors
or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or
otherwise arising in connection with the document.
This document contains “forward-looking statements”, which include all statements other than statements of historical facts, including, without limitation, any
statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “could” or similar
expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the
Group’s control that could cause the actual results, performance or achievements of the Group to be materially different from future results, performance or
achievements expressed or implied by such forward-looking, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy
of recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian
economic, political and legal environment, volatility in stock markets or in the price of the Group’s shares or GDRs, financial risk management and the impact of
general business and global economic conditions.
Such forward-looking statements are based on numerous assumptions regarding the Group’s present and future business strategies and the environment in which
the Group will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and each of EVRAZ
and the Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to
reflect any change in EVRAZ’s or the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements
are based.
Neither the Group, nor any of its agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-
looking statements contained in this document.
The information contained in this document is provided as at the date of this document and is subject to change without notice.
Investor Presentation January 2013 30