Resources create opportunitiesResources create opportunities

2018 IFRS Financial Results14 March 2019

2

Disclaimer

The following USD/RUB exchange rates were used for the presentation of those financial results:

Average over the period1: Q1 2017 – 58.8442; Q2 2017 – 57.1451; Q3 2017 – 59.0195; Q4 2017 – 58.4080;

Q1 2018 – 56.8803; Q2 2018 – 61.7998; Q3 2018 – 65.5323; Q4 2018 – 66.4822;

End of the period: 2017 – 57.6002; 2018 – 69.4706.

This presentation of Metalloinvest’s financial results for FY 2018 (the “Presentation”) contains certain forward-looking statements, particularly those relating to anticipated

demand and consumption, global economic conditions, commodity prices, management aims and objectives, strategy, production, anticipated investments and

anticipated completion of previously announced transactions. Metalloinvest will not update these statements to reflect events and circumstances occurring after the date

hereof. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the

future. Actual results may differ from those expressed in such statements depending on a variety of factors, including future levels of industry product supply, demand and

pricing, operational problems, general economic conditions, political stability and economic growth in relevant areas of the world, changes in laws and governmental

regulations, exchange rate fluctuations, development and use of new technology, changes in public expectations and other changes in business conditions, the actions of

competitors, natural disasters and adverse weather conditions, wars and acts of terrorism or sabotage, other factors discussed elsewhere in this document, as well as

other risks affecting Metalloinvest and its operations.

The contents of this Presentation do not constitute or form part of any advertisement of securities, any offer or invitation to issue, sell, purchase, exchange or transfer or

any solicitation of any offer to purchase or subscribe for, any securities of Metalloinvest in any jurisdiction, nor shall this Presentation nor any part of it nor the fact of its

presentation, communication or distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any foreign securities which are

mentioned in this Presentation are not and will not be registered in the Russian Federation by any state authority responsible for registration of such securities and such

securities shall not be admitted to subscription nor shall be publicly available in the Russian Federation and cannot be the subject of any offer in the Russian Federation,

except in the cases permitted by the law of the Russian Federation. No representation or warranty, express or implied, is given by Metalloinvest, its affiliates or any of their

respective advisers, officers, employees or agents, as to the accuracy of the information or opinions or for any loss howsoever arising, directly or indirectly, from any use of

these materials or their contents.

Notes:1 Income and expenses for the years ended 31 December 2017 and 31 December 2018

were translated to presentation currency at quarterly average exchange rates

3

Contents

I. Key Highlights………...….……….………………..…………………………………........................... 4

II. Operational Results..…….....………………………………………………………………………………... 7

III. Financial Results …...…………………………………………………………………........................... 11

IV. Debt & Ratings…………………….………………………………………….….................................. 15

V. Subsequent Events…………………………………………………………………………………………….. 19

Appendix…………………………………………………………………………………………………………….. 22

4

KEY HIGHLIGHTS

5

35

55

75

95

Jan 2016 Jan 2017 Jan 2018 Jan 2019

Iron ore index (62% Fe, CFR China)

6972

59

Highlights

Key financialsUSD mn 2018 2017 Change

Revenue 7,187 6,231 15.3%

Gross profit 3,919 3,161 24.0%

EBITDA1 2,934 2,120 38.4%

EBITDA margin 40.8% 34.0% 6.8 p.p.

Net Income 1,647 1,406 17.1%

Capex 441 489 (9.8%)

USD mn, eop 31.12.2018 31.12.2017 Change

Total Debt 4,051 4,446 (8.9%)

Short-term debt 221 413 (46.5%)

Cash & equivalents 693 390 77.7%

Net Debt 3,358 4,056 (17.2%)

Net Debt / EBITDA 1.1x 1.9х (0.8x)

Notes:1Hereinafter EBITDA stands for EBITDA adjusted according to IFRS requirements. For more details please refer to IFRS Statements

Net Debt/ EBITDA has an informational character and does not contain adjustments as per loan documentation

USD/ t

Source: Bloomberg

Global iron ore prices

4,261

6,2317,187

Revenue2016 2017 2018

1,258

2,120

2,934

EBITDA2016 2017 2018

Net Debt/EBITDA

2.5x

1.9x

1.1x

USD mn

6

• Steel prices increased in the first half of 2018 due to the global growth in demandfor steel products and the decreasein China steel product exports

• The the second half of 2018 was characterised by slowing demand and flattening Chinese exports with negative dynamics in steel prices

Iro

n o

re &

p

ell

ets

Me

tall

ics

(pig

iro

n &

HB

I)S

tee

l p

rod

uct

s

Main drivers

• Closure of high-cost and polluting plantsin China1 has a positive impact onachieving balance in the market

• Largest market players (Australia and Brazil) demonstrate a balanced approachto investing in new capacities

• Significant increase in price premiumsfor iron ore and pellets quality

• Environmental protection measuresin China resulted in an import ban for allsecondary resources, including steel scrap

• Deficit of DR grade pellets combined with growing DRI production has led to moderate growth of metallic prices

2.002.05

2.16

2.052.11 2.15

1.6

1.8

2.0

2.2

2016 2017 2018Demand Supply

Iron ore products market balance, bn t

Market trends

85.6 94.4 97.6

12.8 12.2 14.27.3 10.3 11.5105.7

116.9 123.3

0

50

100

150

2016 2017 2018Scrap Pig iron HBI/DRI

0.68 0.74 0.78

0.84 0.86 0.88

1.52 1.60 1.66

0.0

0.7

1.4

2.1

2016 2017 2018China RoW

Price dynamics

Trade of metallics, mn t

Steel product consumption, bn t

20

70

120

170

Pellets, 65% Iron ore, 62% Iron ore, 65%

2016 2017 2018

USD/t, CFR China, indices

150

240

330

420

01/01/2016 01/01/2017 01/01/2018HBI, import Italy Pig iron, FOB Black Sea

USD/t, indices

2016 2017 2018

1Closure of ‘illegal’ furnaces and reduction of installed capacities by 35 mn t in 2018

Source: data provided by analytical industry agencies, ISSB, WSA

150

300

450

600

01/01/2016 01/01/2017 01/01/2018Steel billet, FOB Black Sea

Market review

2016 2017 2018

USD/t, index

7

OPERATIONAL RESULTS

8

40.7

25.2

5.7

3.0

4.7

40.3

25.1

7.0

2.7

4.8

40.4

27.7

7.8

3.0

5.1

Iron ore

Pellets

HBI/DRI

Hot metal

Crude steel

2016 2017 2018

+6.2%

x%

2018 key developments

• Iron ore production volumes remained almost flat1 y-o-y

and totalled 40.4 mn tonnes

• Pellet production rose by 10.2% y-o-y to a record high of

27.7 mn tonnes following the growth in market demand

and increased productivity of production facilities after

major maintenance works of PP-1 and PP-32 held at LGOK

in 2017

• HBI/DRI output increased by 12.1% y-o-y driven by the

launch of the HBI-3 Plant at LGOK in July 2017 and the

increase in productivity of the DRI unit #2 at OEMK after

modernisation held in 2017

• Hot metal production increased by 12.6% to

3.0 mn tonnes due to the launch of ASU3 #5 at Ural Steel

• Crude steel production rose by 6.2% to 5.1 mn tonnes,

largely supported by the increase in production and

shipments of cast billets from CCM4-1

Production volumes

mn t

Data on major plants: LGOK, MGOK, OEMK, Ural Steel

Iron ore refers to iron ore concentrate and sintering ore1 Hereinafter comparison with 20172 Pellet Plant #1 and Pellet Plant #33 Air separation unit4 Steel billet continuous casting machine

+0.2%

+10.2%

+12.1%

+12.6%

y-o-y change

9

10.4 7.6

12.814.0

3.64.2

2017 2018

Other

HBI/DRI

Pellets

Iron ore

26.8 25.9

1.0 1.11.4 1.11.4 1.5

6.7 5.5

16.3 16.8

2017 2018

Russia

Europe

MENA

Asia

Others

26.8 25.9

2.1 2.3

0.3 0.41.5 1.1

0.9 1.1

1.8 1.9

2017 2018

Shipment structure

Data on major plants: LGOK, MGOK, OEMK, Ural Steel

Shipment of iron ore products by region

Shipment of iron ore products

6.5 6.8

Mining Segment Steel Segment

Shipment of steel products

Shipment of pig iron and steel products by region

mn t

mn t

mn t

mn t

61%71%

HVAshare

2.2 2.3

0.3 0.31.0 1.10.3 0.30.6 0.6

2017 2018

Plate HVA

Plate

SBQ HVA

Semi-finished product HVA

Semi-finished product

4.4 4.6

10

Capital expenditure breakdown in 2018

290

489441

550 area

2016 2017 2018 2019F

USD mn

The Company is undertaking its Industry 4.0 business

transformation programme. Progress in 2018 included:

• Start of the operations of the integrated financial andbusiness management system, using the SAP S/4HANAbusiness suite at LGOK and MGOK in July 2018

• Preparations to commence the integration of the financialand business management system at OEMK and Ural Steelin 2019

• Construction of data centre in Stary Oskol

USD 29 mn

Mining Segment

Construction of HBI-3 Plant at LGOK (+1.8 mn t of HBI)

Steel Segment

USD 38 mn

Purchase of new high productivity mining vehicles at LGOK & MGOK

USD 54 mn

Construction of conveyor facilitiesat LGOK & MGOK

USD 27 mn

Complex programme of SBQ development at OEMK

USD 18 mn

Reconstruction of EAFs1

at Ural Steel USD 3 mn

Construction of Roller Treatment Furnace #1 and Heat Treatment Machine #1 at Ural Steel

USD 6 mn

Notes:

Capex data on the graph for 2016, 2017, 2018 refers to IFRS Statements,

all other figures reflect management accounting1 Electric Arc Furnace

Project to develop external power supply system at LGOK

USD 8 mn

Construction of medium pressure boilers for the thermal power plant at Ural Steel

USD 12 mn

11

FINANCIAL RESULTS

12

2,525

1,409

247

853

1,197

2,880

1,632

421

782

1,471

Russia

Europe

Asia

Middle East

Other

countries

2017

2018

Revenue composition

2018 Revenue: USD 7,187 mn

USD mn

11%

20%

14%12%

40%

3%

7%

20%

18%

12%

41%

2%

Iron ore Pellets

HBI Pig iron

Steel products Other revenue

2018 – outer circle2017 – inner circle

Revenue by region

Export share60% in 2018

vs.59% in 2017

1 Others include Americas and CIS countries

1

13

967

301

1,742

406

2,267

654

Mining Steel

2016 2017 2018

2,120

2,934

956

27

32

(199)

(2)

EBITDA 2017

Revenue

Cost of sales

Distribution

expenses

G&A expenses

Other

EBITDA 2018

EBITDA y-o-y dynamics

EBITDA composition

2018 EBITDA: USD 2,934 mn

USD mnSupportive market conditions and change in product

mix towards high value-added products resulted in

a considerable increase in EBITDA (by 38.4% y-o-y)

EBITDA by segment dynamics

40.8%

34.0%

EBITDA margin

USD mn

14

802

1,2131,324

2,120

411

2,934

69

(325)

(372)

(113)

(489)

(19)

(317)

(460)

(461)

(441)

EB

ITD

A

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rest

Taxe

s

Ch

g.

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WC

Ca

pe

x

Oth

ers

FCF

Dis

po

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al

ass

ets

FCF

aft

er

dis

po

sal o

f fi

na

nci

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sse

ts

EB

ITD

A

Inte

rest

Taxe

s

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g.

in N

WC

Ca

pe

x

Oth

ers

FCF

Positive free cash flow

USD mn

2017 2018

Notes:1Proceeds from the disposal of MMC Norilsk Nickel’s ADRs

EBITDA stands for EBITDA adjusted according to IFRS requirements. For more details, please refer to IFRS Statements

1

15

DEBT & RATINGS

16

Debt profile as of 31 December 2018

Sources: IFRS data, management accounts1 PXF – pre-export finance facility2 Undrawn credit lines

Cash

USD mn

Cash

*

0.7 0.0 0.20.5 0.3

0.62

0.40.2

0.7 0.4

0.9

0.2

0.6 0.7 0.70.5

1.2

0.3

Liquidity 2019 2020 2021 2022 2023 2024 After 2024

RUBUSD/EUR

Debt maturity schedule as of 31 December 2018

USD bn

4,1834,446

4,051

3,194

4,056

3,358

2.5x

1.9x

1.1x

31 Dec. 2016 31 Dec. 2017 31 Dec. 2018

Total Debt Net Debt Net Debt/EBITDA

Cash

2018 key developments

• January: Refinancing of USD 240 mn pre-export credit facilities (PXF) with a new PXFraised in 2018

• February: Keeping the Company’s series 02 and 03 bonds for a total amount ofRUB 10 bn in the market for 5 years with a coupon rate set at 7.65%, following thesuccessful execution of a put option

• June: Signing of a EUR 72 mn credit facility agreement with Crédit Agricole CIBguaranteed by export credit agency (ECA) for financing the purchase of equipment

• August: Improvement of commercial terms under the syndicated loan PXF-2017 forthe amount of USD 800 mn (tranche A)

• September: Partial refinancing of loan portfolio following the new 6-year loanprovided by Gazprombank in the amount of RUB 18.8 bn

• November: Extension and improvement of commercial terms under revolving creditline agreement with ING Bank for the amount of USD 200 mn (or EUR equivalent)

17

Credit ratings as of 31 December 2018

Date

Rating

Outlook

February 2017

BB

STABLE

POSITIVE

Ba2

STABLE

January 2018 July 2018

ruAA-

POSITIVE

STABLE

BB

August 2018

POSITIVE

STABLE

18

In Q4 2018, Metalloinvest received the debut rating of corporate socialresponsibility (CSR) from the international agency EcoVadis. Followingthe assessment, the Company was awarded the "Silver" level ofrecognition of CSR practices.

In particular, the agency’s analysts rated especially highly theCompany's activities around environmental protection, human rightsand the introduction of working and ethical standards at theenterprises.

Among producers rated by EcoVadis globally in the manufacture of basiciron and steel industry (over 900 companies):

Overall score(CSR performance):

Metalloinvest is in the

top 11%

Environment score(part of overall score):

Metalloinvest is in the

top 7%

Debut rating of corporate social responsibility

EcoVadis is an international rating platform that evaluates the management system for corporate and social responsibility ofbusiness. The EcoVadis methodology is based on international CSR standards including the Global reporting initiative, theUN Global compact and ISO 26000, applicable to 190 categories in 150 countries. EcoVadis evaluates 21 criteria in 4 groups:environment, fair labour practices, business ethics and supply chain

19

SUBSEQUENT EVENTS

20

Implementation of new Distribution Policy

The Distribution Policy

is based on the following

key principles:

• Total ratio of distributions is subject to the levelof net leverage

• FCF after distributions should be positive

• The Company is eager to shift to dividend payments as a principle stream of distributions2

• Operating Cash Flow should cover capital expenditure requirements

• Distributions are subject to current and mid-termmarket conditions

In the beginning of 2019, Metalloinvest’s Board of Directors approved a Distribution Policy,

which regulates the Company’s total amount of distributions to shareholders1

1 Both in the form of dividends and loans advanced2 In compliance with applicable laws and accounting standards of the Russian Federation

21

5

6

7

8

9

31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019

MOODY'S S&P___ FITCH

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ba2/BB

Ba3/BB–

Ba1/BB+

Rating scale (Moody’s / S&P, Fitch)

Ba3 stable

BB–stable

BB–positive

Ba2 / BBpositive

BB+stable

Metalloinvest’s rating history (for the ratings assigned by Big-3 international agencies)

S&P upgraded Metalloinvest rating to BB+ with a stable outlook

In February 2019, S&P upgraded the Company’s long-term corporate credit rating to BB+ with a stable outlook from BB/stable

According to S&P, Metalloinvest's rating upgrade reflects the Company’s continuous debt reduction over recent years, as well as strong operating and financial results achieved in 2018

22

APPENDIX

23

Product quality achievements

Coordination meetings

• To increase the efficiency of interaction related to SBQ supplies

• to create stock reserves

• to carry out joint experiments on new steel grades

• To expand supply of pipe billets and flat steel products

• To create a collaborative scientific and engineering centre for the development of new steel grades for LDP1

1Large diameter pipes

Awards

MGOK was named Best Supplier of iron ore pellets to MMK

OEMK was named Best Plant as a supplier of high quality steel rods to Groupe PSA enterprises (whose brands include Peugeot, Citroen, Opel, DS and others)

• To improve quality of railway wheel billets

24

Environment

The Company devotes significant time and efforts to tacklingenvironmental issues

• LGOK's tailings facility in the enterprise's beneficiation plant

is conducting seasonal dust control activities using both

a ground-based irrigation system and light aircraft

• MGOK is modernising its dedusting systems on pellet

overload at open storages

• OEMK is recultivating the second phase of the industrial

waste landfill

• Ural Steel is reconstructing the aspiration system of blast

furnaces #3 and #4 (initial stage)

3322

3642

52

50 3 3 3

2014 2015 2016 2017 2018

0.420.28

0.45 0.470.62

2014 2015 2016 2017 2018

Health, Safety & Environment

LTIFR*

Atmospheric emissions**tonnes ‘000

126 124 117 113 117

2014 2015 2016 2017 2018

Health & Safety

Safety is the Company’s top priority

The Company is committed to a zero fatality rate

Accidents and Fatalities

* LTIFR is calculated on the basis of Metalloinvest major plants (LGOK, MGOK, OEMK, Ural Steel, Ural Scrap Company):

(total number of injuries with loss of labour capacity / number of worked man hours) х 1 mn man hours

** Total amount of pollution emissions into atmosphere from stationary sources (LGOK, MGOK, OEMK and Ural Steel)

Implementation of openness and transparency policy at plants

Slight increase due to launch of

HBI-3 in 2017

25

38% 37%30%

62%63% 70%

2016 2017 2018

USD/EUR

RUB

Debt structure as of 31 December 2018

Sources: IFRS data, management accounts

*Pre-export financing

Breakdown by currency

8% 9% 11%

22% 21% 16%

16% 16%14%

24% 25%28%

31% 29% 32%

2016 2017 2018

PXF*

Eurobonds

RUB bonds

RUB Bank loans

Other

2018 Total Debt: USD 4,051 mn

Breakdown by source

26

Key financial indicators

USD mn H1 2017 H2 2017 FY 2017 H1 2018 H2 2018 FY 2018 Y-o-Y

Revenue 3,032 3,199 6,231 3,779 3,408 7,187 15.3%

Gross profit 1,556 1,605 3,161 1,977 1,942 3,919 24.0%

EBITDA 1,061 1,059 2,120 1,491 1,443 2,934 38.4%

EBITDA margin 35.0% 33.1% 34.0% 39.5% 42.3% 40.8% 6.8 p.p.

Net Income 585 821 1,406 870 777 1,647 17.1%

Capex 188 301 489 234 207 441 (9.8%)

Total Debt 4,468 4,446 4,446 4,287 4,051 4,051 (8.9%)

Short-term Debt 289 413 413 581 221 221 (46.5%)

Cash & cash equivalents 866 390 390 477 693 693 77.7%

Net Debt 3,602 4,056 4,056 3,811 3,358 3,358 (17.2%)

Net Debt / EBITDA LTM1 2.0х 1.9х 1.9х 1.5x 1.1x 1.1x (0.8x)

1 Net Debt / EBITDA LTM is calculated based on EBITDA for the last 12 months;

the indicator has an informational character and does not contain adjustments as per loan documentation

27

Committees

Name Category Company AuditFinance,

Budgeting & Strategy

Remuneration

Ivan StreshinskyChairman

Non-executive

Galina Aglyamova

IndependentValery Kazikaev

Dmitry Tarasov

Gleb Kostikov

Non-executiveIrina Lupicheva

Pavel Mitrofanov

Andrey Varichev Executive

C

C

CMember of a committee Committee Chairman

Board of Directors composition

C

28

Investor Relations & Corporate Ratings Department

Contacts

Artem Lavrischev

Director of Investor Relations & Corporate Ratings

T: +7 (495) 981 55 55, ext. 7243

ir@metalloinvest.com

www.metalloinvest.com