Metalloinvest announces financial results for the full year 2012

METALLOINVEST (“the Company”), a leading global iron ore and HBI producer, today announces its audited financial results reported under IFRS for the full year ended December 31, 2012.

FINANCIAL HIGHLIGHTS

• Revenue USD 8,194 mn (-17.4% y-o-y )
• EBITDA USD 2,553 mn (-34.1%)
• EBITDA margin 31.2% vs. 39.0% in 2011
• Net Income USD 1,724 mn (+20.4%)
• Total Debt USD 6,471 mn (+15.6%)
• Total Debt / EBITDA 2.53x vs. 1.45x in 2011
• Capital expenditures USD 463 mn (-9.6%)
• Total assets USD 10,352 mn (-1.1%)

PRODUCTION HIGHLIGHTS

• Iron ore 39.8 mn tonnes (-0.9%)
• Pellets 22.6 mn tonnes (+1.0%)
• HBI/DRI 5.2 mn tonnes (+0.4%)
• Hot metal 2.1 mn tonnes (-15.2%)
• Crude steel 5.6 mn tonnes (-3.5%)

CORPORATE HIGHLIGHTS

Operational developments

• Installment of equipment at Pellet Plant #3 at MGOK
• Upgrade of equipment at HBI-2 Plant at LGOK
• Modernisation of a crushing and processing plant at MGOK
• Start of construction of an oxygen facility at OEMK
• Launch of a new vacuum degasser at Ural Steel
• Construction of coke-oven battery #6 at Ural Steel
• Signing of a contract with Siemens and MIDREX consortium for construction of HBI-3 Plant at LGOK

Finance & Corporate Governance

• Debut issue of RUR 25 bn (c. USD 853 mn) 9.0% RUR-denominated unsecured corporate bonds maturing in 2022 with an early redemption option in 2015
• Disposal of Metalloinvesttrans for a cash consideration of USD 569 mn
• Assignment of ‘BB-‘ rating with a positive outlook by Standard & Poor’s
• Acquisition of 24% of own shares for a consideration of USD 3,023 mn
• Review of the Board of Directors and its committees composition

Social responsibility and Public Relations

• Signing of Social Partnership Programmes for 2012 with the authorities of Belgorod and of Kursk regions
• Announcement of METALLOINVEST new brand and launch of a new corporate website

Eduard Potapov, Chief Executive Officer of Management Company METALLOINVEST, commented:

“Despite the challenging world economic situation and continued market volatility, METALLOINVEST demonstrated robust financial and operational results for 2012, maintaining its leading industry positions in Russian ferrous sector in terms of EBITDA and profitability.

The 2012 results reaffirmed that we had chosen the right strategy which enables us to maintain efficient operations in the adverse market conditions.”