Valery Borisov

Severstal

Severstal remains a global leader in efficiency, with the highest EBITDA margin in the steel industry globally, positive free cash flow generation throughout the cycle and a track record of achieving its targets. To deliver additional growth, the Company has updated its already proven strategy - retaining its fundamental advantages but adding new elements. Severstal's new vision is to be a leader of the steel industry of the future and the first choice for its customers, employees and partners. To achieve this, the Company is setting out new strategic priorities to distance itself further from its competitors. These are: superior client experience, cost leadership and embracing new opportunities. All three will be supported by Severstal's advanced corporate culture. Superior client experience - Severstal aims to offer our customers unique selling propositions on each target market; Cost leadership - Severstal's goal is to achieve a significant cost advantage in basic steel products; New opportunities - Severstal's objective is to access and consequently benefit from the use of global cutting-edge technology and new business-models. Implementing this set of objectives will support the Company in reaching its financial target of increasing EBITDA by 10-15% annually for the next 5 years. (This excludes pricing/macro factors.)