TMK IR PRESENTATION

March 2018
 TMK– Global Supplier of Full Range of Pipes for Oil and Gas Industry
THE COMPANY OPER
ATES MORE THAN 30 PRODUCTION SITES IN RUSSIA,
27 production sites in Russia, the USA, Canada, Oman, Romania and Kazakhstan, with trade offices in 10 countries
2017E global drilling activity
Canada: by geography
Russia:
 1 production facilities (number of wells drilled)(a)  12 production facilities
 1 trade office  1 R&D centre
 1 trade house

Canada US
13% 49%

Russia & CIS

19%
Kazakhstan:
 1 production facility
 1 trade house
USA: Romania:
 10 production facilities • 2 production facilities
 1 R&D centre
MANAGEMENT  1 trade house Oman:
PRODUCTION
SALES  1 production facility
OIL AND GAS SERVICES
RESEARCH & DEVELOPMENT

TMK sales by region (2017) TMK sales by product (2017) Key financials
ME & Gulf C.Asia &
…
Others Welded LD (US$mln) 2014 2015 2016 2017
Region Caspian Region Welded
MANAGEMENT
1% 7%
3%
PRODUCTION 2% Line Pipe Revenue 6,009 4,127 3,338 4,394
SALES Oil & Gas = 77%
OIL AND
Europe GAS SERVICES Welded 10%
RESEARCH & DEVELOPMENT Adj. EBITDA 829 651 530 605
7% OCTG
4% Seamless Adj. EBITDA
OCTG 14% 16% 16% 14%
Welded Margin (%)
Americas Industrial 42%
Russia FCF(b) 252 498 395 77
26% 8%
61%
Seamless Seamless Net Profit (Loss) (217) (368) 166 30
Industrial Line Pipe Net Debt 2,969 2,496 2,539 2,688
15% 13%
Source: Company data
Note: Percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums
(a) Spears & Associates. Excluding China and Central Asia. Onshore and offshore drilling
(b) Calculated as Net cash flows from operating activities plus Net cash flows used in investing activities
2
 TMK Today – Key Investment Highlights
Industry-leading market position and large modern asset base
1  Dominant #1 player in seamless OCTG industry in Russia and Top-3 in the US

 State-of-the-art underutilised production base with major investments completed over 10 years in 2004-14

 Established longstanding relationships with major oil & gas upstream and midstream players

Combined exposure to some of the most attractive and dynamic regional oil & gas markets
2  Russia – large low-cost oil producing region; a major market with increased drilling activity in 2017

 TMK - dominant player in Russian oil & gas with 38%(a) market share for pipes used in the oil and gas industry,
64%(a) market share in seamless OCTG

 US OCTG market is at the recovery stage, following a c.75% demand contraction in 2014-2016 – with shale industry
supported by OPEC agreement and conducive political environment under new administration

 TMK – Top-3 US OCTG producer with its market share at 10% in 2017

Low-cost position and stability of margins underpinned by significant vertical integration

3  High degree of vertical integration in the seamless business due to in-house steel production

 Ability to pass through costs of steel products – demonstrated by stable margins throughout the cycle

 Substantial improvement in the global competitive positioning on the back of Ruble devaluation in 2014-16

Cost-cutting discipline and consistent focus on de-leveraging

4  Cost-cutting programs with Adjusted EBITDA(b) effect of US$100m+ in the each of the past 3 years; disciplined capex

 Continuous reduction in net debt (US$1bn+ reduction in net debt since 2013)

Superior governance practices and uniquely stable and experienced management team
5  Core management team unchanged since IPO in 2006

 5 Independent Directors on the Board with vast diversified international and domestic experience
Source: Company data
Notes:(a) Company estimates for FY 2017
(b) Adjusted EBITDA for TMK represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss,
impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss
on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items

3
TMK Market Exposure = Highly Resilient Russian Market +
US Shale Passing the Inflection Point
OCTG consumption in Russia and the US Global E&P investments
(m tonnes) (US$ bn nominal)
1000
10
900
8.4
800
8 7.7
1.9 Saudi Arabia
6.9 700 Norway
Australia
2.0 Brazil
600 China
6 5.6 Canada
2.3
Russia
500
4.7
1.8
400 US
4
1.9
6.5 300
5.7
4.6
2 200
3.8
2.7 Other
100

0 0
2010

2011

2012

2013

2014

2015

2016E

2017E

2018E

2019E

2020E
2013 2014 2015 2016 2017

Russia US

Source: Metal Expert for Russian OCTG consumption, Preston Pipe & Tube Report for US Source: Rystad Energy
statistics

4
 TMK – Superior Earnings Resilience Through the Cycle

4,288 4,402
3,871 3,781
3,458 3,661 3,675
1,866 1,842
1,461 1,113 1,049 885 2,618
1,046 2,633
Total 2,159 2,323 2,256
605 1,990 461
pipes sales 355 1,411
2,790 1,281
volume 2,422 2,560 2,410 2,412 2,668 2,612
2,028 2,157
(ths. tonnes) 1,635

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Seamless Welded Seamless Welded Total sales

26% 26%

15% 16% 16% 18% 18%

14% 14% 14% 16% 15%
Adjusted
EBITDA 0.1%
margin(a), %
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 (2%)
(7%)
2013 2014 2015 2016 2017

68% 67% 73%

60% 65% 61% 60% 55%
41% 38%
Cash 7%
conversion(b) n.m. n.m. n.m.

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
(32%)
2013 2014 2015 2016 2017

Source: Companies’ public reporting

Note: (a) Adjusted EBITDA for TMK represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss,
impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss
on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items
(b) Calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA
5
Vertically Integrated Model Ensuring Margin Stability
 Operating in one of the lowest cost regions for steel Steel products price volatility
production globally (US$/t)
 Fully vertically integrated seamless pipe production (upstream
543 531
and downstream) across all regional divisions
500
 Ability to pass through increases in the cost of steel products
to end-customers 387
347
 Resilient margin throughout the cycle of high and low steel
prices

 In 2016, an agreement with Metalloinvest for supply of hot-

briquetted iron (“HBI”) was signed
2013 2014 2015 2016 2017
Seamless pipe – simplified value chain HRC (FOB, Black Sea) Column2
Source: Metal Expert
Pipe making
Scrap, HBI EAFs
facilities
Refractories, Piercing, elongation,
ferroalloys and Production reduction of billets; TMK gross margin by product segments
other of billets pipe finishing
consumables
27% 26%
24% 25% 24%
Welded pipe – simplified value chain

Pipe making facilities 13%

11% 12%
10%
8%
Steel coil/ Bending of steel coil or plate followed
plate by welding the seam at the wedges

2013 2014 2015 2016 2017

Perimeter of TMK operations in the value chain
Seamless Welded

6
Strong Position in Multiple End-Markets for Pipes Beyond
Oil & Gas
Automotive Civil Construction

 TMK-ARTROM is qualified as an authorised supplier for  Galvanised pipe for the outer steel frame of the Otkritie
such companies as Dacia (a subsidiary of Renault) Arena stadium in Moscow
 No. 1 supplier for Dacia in 2015  Impact resistant seamless pipe shipped for the construction
 Qualified as Tier 2 supplier for Toyota of Zenit Arena stadium retractable roof in St Petersburg
 Structural steel pipe for the stadium roof in Samara

Energy and Chemicals Diversified Hi-Tech Solutions

 In 2015, TMK won a number of tenders for pipe shipments to  TMK-INOX stainless pipe of 8–114 mm diameter, used in
energy and petrochemical businesses, including boiler long- nuclear, aircraft, automotive, aerospace and energy
length pipe for Taman TPP’s equipment industries

7
TMK Russian Division: Market Overview

8
Oil Production in Russia Remains Strong…
Oil production remains well above 10.5 MMbpd whilst adhering to the agreement with OPEC …
Russian total oil output, MMbpd

11.3  Russian oil production set new historic record in

November 2016, reaching 11.2 mmbpd
11.0
 As part of its deal with OPEC, which was prolonged
until the end of 2018, Russia has agreed to cut
production by 300,000 bpd compared to October 2016
10.7
level

10.4
 Production cuts are unlikely to be reached through
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec decrease in drilling activity given deteriorating well flow
2015 2016 2017
dynamics across Russia(1)

Source: Interfax, Info TEK

…However OCTG demand is growing supported by existing level of production and development of greenfields

30 3.4

25 3.0
Meters (mln)

Tonnes (mln)
20 2.6

15 2.2

10 1.8

5 1.4

0 1.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Meters drilled (LHS) OCTG demand (RHS)

Source: Interfax, Info TEK, Spears & Associates, TMK estimates

Note: (1) Please refer to slide 50 of the Appendix for an overview of the oil output adjustment commonly used in different oil production methods

9
… However There are Changes to its Composition …
… is accompanied by the development of greenfield
Gradual stagnation of oil production from brownfields … projects …
Brownfields production, MMbpd Greenfields production, MMbpd
10.0 2.0

1.6
9.5
1.2
9.0
0.8
8.5
0.4

8.0 0.0
2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017
Source: Interfax, Info TEK Source: Interfax, Info TEK

… Albeit the quality of Russian reserves continues to slowly deteriorate

Watercut, %

89% 80% Old wells

New wells

88% 60%

87% 40%

86% 20%

85% 0%
'11 '12 '13 '14 '15 '16 1H17 '11 '12 '13 '14 '15 '16 1H17

Source: Interfax, Info TEK, TMK estimates

10
…Creating Long-term Demand for High-End Oil & Field Services
Russian drilling activity keeps growing …
Russian drilling, kmpd 2017 Russian drilling growth broken down, km

80
30,000
20% 4% (11%) (4%) (2%)
25% 27,648
70
24,908
25,000
60

50
20,000
40

30 15,000
2011 2012 2013 2014 2015 2016 2017 2016 Rosneft Lukoil SurgutNG Tatneft GPN Other 2017

Source: Info TEK Source: Interfax, Info TEK

Russian development drilling activity keeps growing with strong demand for advanced oil field services fueled by EOR
activity at brownfields
Sidetracking progress (# of operations)
80 76 50%
68 3,400
60 40%
60 57
54 53
49 41%
45
36% 30%
33%
km/d

40 30%
2,200
20%
21%
20
10%
12% 14%
11%
0 0% 1,000
2010 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017E

Total drilling % of horizontal drilling (RHS)

Source: CDU TEK Source: RPI 2017

11
Attractive Portfolio of Premium OCTG Projects

12
TMK’s Home Market is One of the Lowest Cost Oil Producing
Regions
Global oil production supply curve
Coal to Liquid
Gas to Liquid
125 Low-cost supply completely in the money at current Brent price Asia DW (3)
Permian tight

100
Breakeven price (U.S.$/Boe)(1)

Bakken

Oil Sands
Canadian

(primarily Brazil)
VZ extra heavy

SA DW (3)
Africa Offshore

Arctic
75

NA DW(3)
January 2018 Brent price

Eagle Ford

Europe
Aus. and Pacific

EOR(2)
50
NA
conv.
Brent Crude 5 Year Low

(Non-OPEC)
S. America
25 Asia
Asia
Russia,
Conv.
conv.
OPEC, Middle East and Caspian region*
Africa
0
20 40 60 80
Production (MBD)

Even with oil at 5 year lows, the low cost Russian and Caspian region is able to remain profitable unlike the majority of its
international counterparts. In 2015 and 2016, Russia was the only region globally to maintain healthy drilling activity and stable
OCTG demand.

Source: IEA World Energy Outlook; EIA International Energy Outlook; EIA Annual Energy Outlook; Morgan Stanley
Notes: (1) Breakeven price assumes a 10% return, and NPV of zero; *includes Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan; (2) Enhanced oil recovery; (3) Deep Water

13
Russian Tube and Pipe Market

12

10

8 Non-Energy
mln tonnes

4
Energy
2

2018E

2019E

2020E

2021E

2022E
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017
No.1 on the Russian tube and pipe market 36% market share of energy pipe demand
2017 2016 2017

TMK TMK TMK

24% 38% 36%

Source: TMK estimates, based on FY2017 numbers Source: TMK estimates, based on FY 2016–2017 numbers

14
Strong Position on the Domestic Market
TMK share of seamless OCTG remains high
Seamless OCTG Market Shares, %  Development of conventional and unconventional
reserves will require the use of non-conventional
drilling techniques and reliable OCTG products
25%  Russian seamless OCTG market is up 10% YoY in
2017
64%
11%  TMK is a leader in the production of seamless
OCTG on the Russian market with around 64%
market share for 2017

TMK Import Other local producers

Source: TMK estimates

Growing oil drilling market in Russia

30 9,000
8,000
25
7,000
20 6,000
5,000

‘000 km

27.6
15

units
24.9
4,000

22.2

22.0
20.8
20.5
18.7
10 3,000

16.5
14.4
14.3
13.3
11.6
2,000

9.3
5

8.4
1,000
0 0
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017
Annual development drilling volume
Total new wells drilled (rhs)
Source: CDU TEK, TMK estimates

15
LDP Demand in Russia
LDP demand in Russia, 2012–2020E
Booming market Stable and constructive outlook

3,500

15%
3,000

2,500 20%
'000 tonnes

20%

2,000
26%
26%
1,500 31% 30% 15% 30% 29%
34% 30%
14% 65% 12% 13%
1,000 26%
14% 15%
54% 59%
500 54% 58% 58%
44% 52% 55%

0
2012 2013 2014 2015 2016 2017 2018E 2019E 2020E

Gazprom Transneft Others

Source: TMK estimates

 Major projects planned: Power of Siberia (GAZP), NS2 Onshore (GAZP), Power of Siberia-2
(GAZP), Sakhalin – Khabarovsk – Vladivostok GTS (GAZP), maintenance needs of Transneft and
Gazprom

16
Strategic Cooperation Supporting Growth
Strategic cooperation with key customers

Technology
Partnership
Scientific and Program
Technological
Cooperation

Partnership
Memorandum

 Newly signed long-term agreements with key customers to develop and supply innovative premium
products with related services will strengthen TMK’s position

 Import substitution programs guarantee purchase of tubular products and related services

 TMK’s innovative products are able to considerably improve the energy efficiency of wells, as well
as safety and environmental impact

17
TMK UP Connections for all Conditions

18
TMK American Division:
Market Overview

19
Strong Fundamentals Driving OCTG Consumption

Strong fundamentals support OCTG demand

 Shale oil production is growing supported by the
O&G market recovery, which is reflected in higher 1
Shale
unconventional exploration activity Production
Growth Driven
by Improving
 New levels of shale oil production are achieved by: Oil & Gas
Market
Fundamentals
• Increased unconventional horizontal drilling

• Higher rig count and higher footage drilled per

rig 2 3 4 5
Increasing Higher Rig
• More wells drilled per rig Unconventional Count and More Wells Longer
Horizontal Higher Footage Drilled per Rig Laterals
Drilling Drilled per Rig
• Longer laterals

 As a result, OCTG consumption is increasing,

driven by growing needs across the energy value
6
chain
Increasing
OCTG
Consumption

20
 1 Improving Oil & Gas Market Fundamentals …
Signs that the global glut is easing…
 Sentiment has improved as the EIA’s forecast for
2018E is positive
104
102
100  These new estimates signal confidence that the
98 global oil glut is finally easing
MMbbl/d

96
94
 Improved demand outlook, weaker oil and gas
92
investment, and the OPEC prolonging production
90
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q cuts indicate a tighter market in 2018E
2017 2018E 2019E
Demand Supply  EIA expects WTI to stabilise at $56-58/bbl in 2Q-4Q
Source: EIA 2018
…improve sentiment and price in 2H 2017
 Growth in exports and consumption will contribute to
80 4 natural gas output rising and stabilising at $3.07-
3.15/MMBtu in 2Q-4Q 2018

US Natural Gas ($/MMBtu)

WTI Crude Oil ($/bbl)

70 3

60 2

50 1

40 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2017 2018E 2019E
WTI Crude Oil HH Natural Gas (rhs)
Source: EIA

21
 1
Improving Oil & Gas Market Fundamentals … (cont’d)
U.S. natural gas consumption by sector, Growth in exports and consumption point to
2014 – 2040E higher Henry Hub natural gas prices in 2018
15 4.0
Industrial

US Natural Gas ($/MMBtu)

12
3.5
Electric Power
Quadrillion Btu

9
3.0

6
Residential
2.5

3 Commercial
2.0
Transportation
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
0
2010 2015 2020E 2025E 2030E 2035E 2040E 2017 2018E 2019E

Source: EIA Source: EIA

 Industrial and electric power sectors will drive demand for natural gas over the next 20 years

 In early 2000, 16% of electricity was generated by natural gas and 52% by coal, while in 2017 it is expected that
31% of electricity will be generated by natural gas and 31% by coal

 Natural gas storage is projected to end the 2017E injection season at below average levels, creating a tighter
supply/demand balance moving into 2018E and upward pressure on natural gas prices

22
 1 … Drive U.S. Shale Production …
U.S. crude oil production
 According to EIA forecasts, U.S. crude oil 11.2
12 10.6
production is set to achieve 10.6 MMbpd and 11.2 9.4
10 8.7 8.9 9.3
MMbpd levels in 2018E and 2019E respectively vs. 7.5
8 6.5
9.3 MMbpd in 2017, driven by a corresponding 5.1 5.0 5.3 5.5
5.6

MMbpd
6
recovery of shale oil production 4
2
 Shale oil production has proven resilient despite 0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019
the lower oil price environment, maximizing output
potential at lower profitability levels
Source: EIA

 U.S. shale oil production reached the pre-crisis U.S. shale oil production(1) is growing
level of approximately 6 MMbpd in September 2017
7

U.S. shale oil production(1) (MMbpd)

and increased further to 6.4 MMbpd in December
6
2017
5
4
3
2
1
0 Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan-18
Notes: (1) Includes total oil production from Anadarko, Appalachia, Bakken, Eagle Ford, Source: EIA
Haynesville, Marcellus, Niobrara, Permian & Utica

23
 … Which is Sustainable in the Long Term at Current Oil
1

Price Levels
Continental U.S. tight oil cost curve 2026E
120

Niobrara
100 Eagle Ford
Breakeven U.S.$/bbl Brent equivalent

80
Mid-
continent

60
2018 YTD
WTI
40 Bone Spring price:
(Permian) Bakken
Wolfcamp $61-65/bbl
(Permian)

20 Other

0
0 1 2 3 4 5 6 7 8
Cumulative liquids production 2026E (MMbpd)
Weighted average breakeven price based on 2026E production
Source: Wood Mackenzie

 During the past 2 years, U.S. shale players have managed to decrease production costs
─ Drilling technology has evolved, driven by efficiency requirements
─ Key changes included higher intensity of drilling, longer laterals, significantly higher usage of proppants and equipment and well
string standardization
 Despite a wide variation between plays, many U.S. shale producers are profitable at oil prices in the U.S.$50-60/bbl range in the long
term
─ A number of shale plays, incl. Permian and Eagle Ford basins as well as Mid-continent region of the U.S., are profitable at around
U.S.$45-50/bbl
24
 2 Driving Increasing Unconventional Horizontal Drilling …
U.S. active rig count by type of drilling
 Horizontal and directional drilling exceeded 90% in 100
13 11 7
22 17
2017 and has more than doubled for the last 10 years 32 31 27
35
75 47

% as of year end
55
 According to Spears & Associates estimates, U.S.
drilling and completion spending doubled YoY in 2017 50 73 79 81 86
63 65
48 56 58
and will increase by 19% YoY in 2018E 25 34
25
 Growing number of available productive benches 20 19 17 13 13
11 10 10 9 9 7
means that for any drilled well there is the potential for 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
additional drilling activity further down the line
Directional Horizontal Vertical
Source: Baker Hughes

Potential for additional drilling activity:

Permian basin (Delaware sub-basin) example U.S. drilling and completion spending
2010 2017 200
158
149 147 146 144

U.S. D&C spending ($bn)

Avalon
150 135 131 132
1st Bone Spring 111
99 100
2nd Bone Spring 100 85
Number of
benches 59
3rd Bone Spring
increased
250%
50
Up Wolfcamp A
Lw Wolfcamp A
Wolfcamp B 0

2018E

2019E
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017
Wolfcamp C

Source: Spears & Associates, Drilling Production Report as of June 2017 Source: Spears & Associates

25
 3 …Growing Rig Count and Footage Drilled per Rig …
U.S. average annual rig count(1) Footage drilled per rig
2,500 (000’s)

400
2,000 1,879 1,879 1,919 1,862 334.8
1,768 1,761 319.1
1,546 286.9
300
1,500
211.1 216.8
1,089 191.1
983 986 200 169.1 173.7
1,000 876

512
500 100

0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2010 2011 2012 2013 2014 2015 2016 2017

Source: Baker Hughes, BTU Analytics, Raymond James, Spears & Associates, Inc. Source: Spears & Associates, Inc.

 Rig count increased by 70% YoY in 2017 and is expected to grow by 13% YoY in 2018E

 After a slowdown in 4Q 2017 caused by exhaustion of E&P budgets, the consensus forecast indicates
that the rig count will average in the high-900s during 2018E

 Number of rigs used for horizontal drilling increased in 2017, according to Baker Hughes

 According to Spears & Associates, over the past 8 years footage drilled per rig grew at a CAGR of 9%

Notes: (1) Numbers for 2007 – 2017 based on Baker Hughes data, numbers for 2018E based on median between BTU Analytics, Raymond James, and Spears & Associates estimates

26
 4 5 … Coupled with More Wells Drilled per Rig and Longer
Laterals …
Horizontal wells drilled per rig
 Pad drilling operations allow operators to drill more
20 18.6
horizontal wells per rig per year 16.7
15.4
15
 In the U.S., the average number of horizontal wells 11.6
10.0
drilled per rig has increased from an average of 8.0 10 8.0 8.2
7.0
wells per rig in 2010 to an average of 18.6 wells per
rig in 2017, according to Coras Oilfield Research 5

 Increased lateral lengths and greater drilling 0

2010 2011 2012 2013 2014 2015 2016 2017
complexity are driving greater spending on
Source: Coras Oilfield Research, Baker Hughes Rig Count
technologically advanced drilling consumables, such
as OCTG with premium and semi-premium
Average U.S. lateral length
connections
(Feet)

− According to Spears & Associates, these 10,000

8,706
8,194
average lengths are set to increase from 7,826 7,826
7,323
7,500 6,880
feet in 2016 to 8,706 feet in 2018E

5,000

2,500

0
2014 2015 2016 2017E 2018E
Source: Spears & Associates, Inc.

27
 6 … Resulting in OCTG Consumption Growth …
Total U.S. OCTG consumption
 U.S. consumption of OCTG reached 4.6 mln metric
10.0
tonnes in 2017, more than twice 2016
7.3

mln metric tonnes

7.5
 Total demand for OCTG in the U.S. is projected to 5.4 5.5 5.8 6.1
grow at a CAGR of 6% YoY in 2017 – 2022E 4.6 5.0
5.0
3.6

 OCTG consumption per rig has nearly doubled 2.5

2.1
since January 2013, allowing for significant
recovery in the sector despite having fewer than 0.0
2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
half of the rigs in operation
API Semi-Premium Premium
Source: Preston Pipe, Baker Hughes
 Seamless pipe has increased its share of total U.S.
pipe volume as the result of increased horizontal
OCTG consumption per rig
and directional drilling as well as longer laterals

Consumption per rig (tonnes/month)

2,500 550

 Based on the OCTG Situation Report, seamless 2,000

500
pipe represented c.30% of total U.S. OCTG 450

U.S. rig count

shipments in 2017 1,500 400

1,000 350
300
500
250
0 Jan-13 200

Sep-13
Jan-14

Sep-14
Jan-15

Sep-15
Jan-16

Sep-16
Jan-17

Sep-17
Jan-18
May-13

May-14

May-15

May-16

May-17
U.S. Rig Count OCTG Consumption per Rig (tonnes/month)

Source: Preston Pipe, Baker Hughes

28
 6 … Inventory Normalization, Higher Efficiency …
Increased shipment levels bring months-of-
 US OCTG inventories have reached the normalized
inventory back to pre-downturn levels
levels of 2014 as shipments outpace consumption
3.0 12
 Despite months of inventory having reached 2014 Monthly absolute inventory
levels, the monthly absolute inventory is meaningfully Months of inventory (rhs)
below pre-crisis levels due to higher industry efficiency:
10
 Design has standardized resulting in more obsolete 2.6
inventory

Absolute inventory, mln tonnes

 E&P investment has spilled over into the 8
management of inventory: the amount of pipe on the

Months of Inventory
2.2
ground that was typically required to maintain a
certain rig level has decreased from previous cycles
6
Standardized diameters of OCTG piping
1.8
Chevron Permian XTO Bakken Cabot Northeast
4
 Total Weight per well:  Total Weight per well:  Total Weight per well:
492 NT 323 NT 267 NT
20"
13 3/8" 9 5/8”
1.4
13 3/8" 2
7"
9 5/8"
9 5/8”

2 7/8" 2 7/8" 2 7/8"

1.0 0
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

5 1/2" 4 1/2" 5 1/2" Source: Preston Pipe & Tube Report

Source: Company data

29
 6 … and Stabilization of OCTG Prices in 3Q-4Q 2017
U.S. distributor welded OCTG vs. HRC prices U.S. distributor seamless OCTG vs. scrap prices
(U.S.$/tonne, monthly average) (U.S.$/tonne, monthly average)

2,100 2,400
1,800
1,500
+34% +25%

1,400
1,400 1,600
1,100

1,000
+25%
700 700 800
600
+60%

0 300 0 200
Apr-16 Nov-16 Jun-17 Jan-18 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Apr-16 Nov-16Jun-17 Jan-18
Jan-13 Feb-14 Mar-15 Apr-16 May-17
Welded OCTG price Seamless OCTG price
HRC price Scrap price

Source: Pipe Logix, AMM Source: Pipe Logix, AMM

 Prices have rallied from the low in April 2016. Since the trough, welded OCTG prices increased by 34%
and seamless OCTG prices – by 25%

 Prices declined in 4Q 2017 due to downward 4Q 2017 budget adjustments by main oil and gas
producers as the average oil price stayed below budgeted levels through 9M 2017 and stabilized in
early 2018

 Raw material prices demonstrated relative flat growth in 4Q 2017 over 3Q 2017

30
Potential Upside for Business
Sales volume (thousand tonnes)
240  Rig count reached the bottom in May
199
200 185 2016 at 404 rigs, but has grown by
158
160 128 almost 570 rigs since then
120 93
80 50
65 74
 The average number of rigs in 4Q 2017
40 decreased by 3% compared to the prior
0 quarter due to downward 4Q 2017
1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 budget adjustments by main oil and gas
Adjusted EBITDA (U.S.$ mln) producers as the average oil price
60 stayed below budgeted levels through
42 39
40
9M 2017
21
20 9  U.S. domestic crude production
0 averaged 9.3 MMbpd in 2017, up 0.5
-20 -9 -9 MMbpd from the average for 2016
-22
-40 -32
1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017
 These factors are reflected in the
IPSCO’s financial performance:
Adjusted EBITDA margin
─ Sales volume demonstrate strong
20% 14.5% 12.9%
9.0% 9.1% upward trend
10% 5.3%
0% ─ Adjusted EBITDA and EBITDA
(10%) (3.0%) margin troughed in 1Q 2016, then
(20%) recovered in 2Q-4Q 2016 & FY 2017
(19.6%)
(30%)
2014 2015 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017
Source: Company data

31
Strategic Overview

32
 Key Strategic Pillars
Enhance leadership  Dominate the Russian OCTG and line pipe markets
in key segments  Remain in the TOP 3 leading OCTG producers in the USA
and enter new  Increase the share of high-tech products in the Russian division’s revenue to 50% by 2022 and
product niches maintain a leading position in the Russian market for premium connections

 Increase capacity utilization of steelmaking facilities through higher production volumes of steel billets
Optimise vertical and other products, and maximize the financial impact
integration  Expand presence in further processing of tubular products (drill pipe, coating)
 Develop a service offering of ready-to use comprehensive engineering solutions for customers

Enhance the sales  Expand commercial footprint of TMK’s products and services
platform and  Develop strategic partnerships with major customers and global consumers
leverage TMK’s  Focus on offering products that have a global market and stable demand outlook, i.e.high-tech seamless
global scale pipes and premium connections

Focus on  Develop e-commerce across all divisions via TMKe Trade, the first tubular goods Internet shop in Russia
innovation and
digitalisation  Use cutting-edge digital technology to improve product quality and cut costs

Enhance  Foster a culture of continuous operational improvements and production cost cutting
operational  Ensure consistent product quality through increasing the sustainability of technologies and personnel
excellence qualification

Strengthen  Maximize operating cash flow

financial  Monetize international assets, strategic alliances and joint ventures in all regions of presence
performance and  Reduce leverage to 3.0x Net Debt(a)/ EBITDA(b) as of FY2019
investment appeal  Reduce leverage to 2.5x Net Debt(a)/ EBITDA(b) as of FY2021
Note: (a) Net Debt represents interest bearing loans and borrowings plus liability under finance lease less cash and cash equivalents and short-term financial investments
(b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of
impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial
instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items 33
 Comfortable Maturity Profile as at March 01, 2018
700
EUR 662  As of December 31, 2017, Net Debt amounted to
US$2,688 mln
RUB
 In April 2017, TMK placed a RUB 5 billion 10-year
600 USD bond with a 9.75% coupon rate
 In June 2017, TMK placed a RUB 10 billion 10-
year bond with a 9.35% coupon rate
500 473 467  In January 2018, TMK fully redeemed the
remaining part of its US$500 mln 7-year Eurobond
US$ mln

issue in the total nominal value of US$231 mln

400  The weighted average nominal interest rate
365 550
decreased by 86 bps over the year to 8.16% as of
265 the end of FY 2017
300
150  Credit Ratings:

449  S&P B+, Stable

212
 Moody’s B1, Stable
200
157
147
131 Debt currency structure
115 121
197 212 EUR
100 88 202 50
65 135 66 3%
95 131 48
35 112 26 26 26 27
11 56 22 22 71
65 48 66
23 1 20 17 24 - 26 26 26 27
22 22 22
0 USD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 3Q 43%

2018 2019 2020 2021 2022 2023 2025 RUB

54%

Source: TMK management accounts (figures based on non-IFRS measures), TMK estimates
Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums.

34
Summary Financial Results

35
FY Consolidated Results Snapshot
Revenue Volumes and realised prices
Average
6,000 USD/RUB rate(a) 37.97 60.66 66.90 58.35

Average US$1,464 US$1,078 US$970 US$1,181

5,000 revenue/ tonne
US$1,085 US$921 US$796 US$1,075
US$ mln

4,000 5,000 4,402

Thousand tonnes
3,871 3,781
3,000 6,009 4,000 3,458
1,842 1,113
3,000 1,461 1,046
2,000 4,127 4,394
3,338 2,000
1,000 2,560 2,410 2,412 2,668
1,000
0 0
2014 2015 2016 2017 2014 2015 2016 2017
Seamless Welded
Adjusted EBITDA(b) Net profit

16% 16% 18% 200 166

800

Adj. EBITDA margin, %

14% 14%
700 15% 100
30
600 12%
500 0
US$ mln

US$ mln
400 829 9%
651 (100)
300 605 6%
530
200 (200) (217)
3%
100 (368)
0 0% (300)
2014 2015 2016 2017 2014 2015 2016

Source: TMK data

Adjusted EBITDA margin, %
Note: (a) Average nominal USD/RUB exchange rate as published by the Central Bank of Russia.
(b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange
(gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant
and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items

36
Gross Margin, SG&A and Cash Conversion
Gross margin SG&A and corporate overheads(a)

30% 26% 800

24% 25% 693
24%
600 524 544
20% 437

US$ mln
%

12% 13% 400

10%
10% 8%
200

0% 0
2014 2015 2016 2017 2014 2015 2016 2017
Seamless Welded

Capex and cash conversion(b) Key considerations

68% 67%  Gross margin resilient through the cycle across both product
300 65% 70% lines
61%
 Seamless segment accounting for more than 80% of

Cash Conversion, %
consolidated gross profit and demonstrates consistently
200 50% superior margins
US$ mln

293  Major reduction in SG&A in response to the revenue decline in

236 2015-16
100 208 30%
175  Relatively high share of fixed costs in seamless segment
provides strong leverage to volume growth

0 10%  Significantly optimized lean cost structure due to stringent

2014 2015 2016 2017 efficiency measures

Source: TMK data

Note: (a) Based on IFRS financial statements. Calculated as Gross Profit less Operating profit
(b) Calculated as (Adjusted EBITDA – Capex) / Adjusted EBITDA. Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax
(benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except
for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of profit)/loss of associates and other
non-cash, non-recurring and unusual items

37
 Segmental Quarterly Performance Dynamics
Russian division American division European division

710 747 760 756 734

675

Sales
volume
185 199
(ths.tonnes) 128 158
74 93 50
41 45 45 48 42

3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17

144
127 (b) 127 120
107 111

Adjusted 42 39
EBITDA(a), 21
9 8 6 5 6 7 11
US$ mln

(9) (9)

3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17

(b)
19% 19% 18% 18%
13% 15% 13% 15% 13% 14% 11% 13% 14%
5% 9% 9%
Adjusted
EBITDA
margin(a), %
(9%) (8%)

3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17

Source: TMK data

Note: (a) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss,
impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment,
(gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual item
(b) Restated

38
4Q 2017 vs. 3Q 2017 Summary Financial Highlights
Revenue increased QoQ, due to improved performance at
Sales were flat QoQ, with lower sales at the Russian the European division, higher sales at the American
division offset by stronger pipe sales at the American division and stronger consumption of seamless OCTG
and European divisions and line pipe at the Russian division
0% QoQ 5% QoQ
1,000 1,500
Thousand tonnes

750

US$ mln
1,000

500 983 983

1,140 1,203
500
250

0 0
3Q2017 4Q2017 3Q2017 4Q2017

Adjusted EBITDA decreased QoQ, largely due to higher Net loss amounted to $16 mln in 4Q 2017, compared to a
raw material prices and lower welded pipe sales at the net income in the prior quarter, mainly due to lower
Russian division operating profit and an impairment of assets
-5% QoQ
200 18% 30
15%
13% 15% 20
EBITDA margin, %

150

US$ mln
12% 10 22
US$ mln

100 9% 0
169 160
6% -10 -16
50
3% -20
0 0% -30
3Q2017 4Q2017 3Q2017 4Q2017
Source: TMK data

39
FY 2017 vs. FY 2016 Summary Financial Highlights
Revenue increased YoY, driven by strong sales and
Sales were up YoY, driven by 2.4-fold increase in sales at improved pricing at the American division and a positive
the American division effect of currency translation
9% YoY 32% YoY
4,000 4,500
Thousand tonnes

3,000

US$ mln
3,000
2,000 3,781 4,394
3,458
1,500 3,338
1,000

0 0
2016 2017 2016 2017

Adjusted EBITDA increased YoY, driven by a much Net profit decreased YoY, mainly reflecting a lower FX
stronger performance from the American division gain compared to FY 2016

14% YoY -82% YoY

16% 18%
200
14% EBITDA margin, %
600 15%
150
450 12%
US$ mln

US$ mln
605
9% 100
300
530 166
6%
150 50
3%
30
0 0% 0
2016 2017 2016 2017

Source: TMK data

40
Seamless – Core to Profitability
US$ mln QoQ, YoY, FY 2017 gross profit breakdown
4Q2017 2017
(unless stated otherwise) % %
Other
Sales - Pipes, kt 691 11% 2,668 11% operations
Welded 3%
Revenue 816 10% 3,074 31% 13%
SEAMLESS

Gross profit 178 -9% 732 21%

Margin, % 22% 24%

Avg revenue/tonne (US$) 1,181 -1% 1,152 19%

Avg gross profit/tonne (US$) 258 -18% 274 9%

Seamless
84%
Sales - Pipes, kt 292 -19% 1,113 6%

Revenue 314 -7% 1,086 30%  Sales of seamless pipe generated 70%
of the total revenue in FY 2017
WELDED

Gross profit 22 -36% 111 62%

 Gross profit from seamless pipe sales
Margin, % 7% 10% represented 84% of FY 2017 total gross
profit
Avg revenue/tonne (US$) 1,075 15% 976 23%
 Gross profit margin from seamless pipe
Avg gross profit/tonne (US$) 75 -22% 100 52% sales amounted to 24% in FY 2017

Source: Consolidated IFRS financial statements, TMK data

Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to
exact arithmetic sums.

41
Appendix – Summary Financial Accounts

42
Key Consolidated Financial Highlights
(US$mln)(a) 2017 2016 2015 2014 2013
Revenue 4,394 3,338 4,127 6,009 6,432
Adjusted EBITDA(b) 605 530 651 829 986
Adjusted EBITDA Margin(b)(%) 14% 16% 16% 14% 15%
Profit (Loss) 30 166 (368) (217) 215
Net Profit Margin (%) 1% 5% n/a n/a 3%
Pipe Sales ('000 tonnes) 3,781 3,458 3,871 4,402 4,287
Average Net Sales/tonne (US$)(c) 1,162 965 1,066 1,365 1,500
Cash Cost per tonne (US$)(d) 862 692 783 1,030 1,108

Cash Flow from Operating Activities 312 476 684 595 703

Capital Expenditure(e) 236 175 208 293 397

Total Debt(f) 3,239 2,836 2,801 3,223 3,694

Net Debt(f) 2,688 2,479 2,471 2,939 3,568

Short-term Debt/Total Debt 18% 9% 21% 24% 11%

Net Debt/Adjusted EBITDA 4.4x 4.7x 3.8x 3.5x 3.6x

Adjusted EBITDA/Finance Costs 2.3x 2.0x 2.3x 3.6x 3.9x

Source: TMK Consolidated Financial Statements for 2017, 2016, 2015 and 2014
(a) IFRS financials figures were rounded for the presentation’s purposes. Minor differences with FS may arise due to rounding
(b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortisation, foreign exchange (gain)/loss,
impairment/ (reversal of impairment) of non-current assets, movements in allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment,
(gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items.
(c) Sales include other operations and is calculated as Revenue divided by sales volumes tonnes
(d) Cash Cost per Tonne is calculated as Cost of Sales less Depreciation & Amortisation divided by sales volumes
(e) Purchase of PP&E investing cash flows
(f) Total Debt represents loans and borrowings less interest payable; Net Debt represents Total debt less cash and cash equivalents and short-term financial investments

43
Income Statement
(US$ mln) 2017 2016 2015 2014 2013
Revenue 4,394 3,338 4,127 6,009 6,432
Cost of sales (3,521) (2,634) (3,282) (4,839) (5,074)
Gross Profit 872 704 845 1,169 1,358
Selling and Distribution Expenses (261) (220) (260) (350) (379)
General and Administrative Expenses (231) (196) (207) (278) (317)
Adverstising and Promotion Expenses (7) (6) (8) (14) (12)
Research and Development Expenses (11) (11) (13) (15) (13)
Other Operating Expenses, Net (34) (4) (35) (35) (34)
Foreign Exchange Gain / (Loss) 28 130 (141) (301) (49)
Finance Costs, Net (268) (263) (269) (226) (245)
Other (10) 35 (354) (150) 5
Income / (Loss) before Tax 78 169 (443) (201) 312
Income Tax (Expense) / Benefit (48) (4) 75 (15) (98)
Net Income / (Loss) 30 165 (368) (217) 215

Source: TMK Consolidated Financial Statements for 2017, 2016, 2015 and 2014
Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums.
(a) Calculated as Finance income less Finance costs

44
Statement of Financial Position
(US$ mln) 2017 2016 2015 2014 2013
ASSETS
Cash and Cash Equivalents 491 277 305 253 93
Accounts Receivable 871 689 512 728 995
Inventories 1,121 769 785 1,047 1,324
Prepayments 139 107 113 113 148
Other Financial Assets 0 42 0 1 0
Total Current Assets 2,624 1,883 1,715 2,142 2,561
Total Non-current Assets 2,913 2,853 2,697 3,508 4,857
Total Assets 5,537 4,736 4,412 5,649 7,419
LIABILITIES AND EQUITY
Accounts Payable 950 735 682 831 1,111
ST Debt 610 268 600 764 398
Other Liabilities 178 48 41 48 62
Total Current Liabilities 1,738 1,051 1,323 1,643 1,571
LT Debt 2,725 2,650 2,201 2,459 3,296
Deferred Tax Liability 82 90 110 206 298
Other Liabilities 59 47 64 71 125
Total Non-current Liabilities 2,866 2,786 2,374 2,735 3,718
Equity 933 899 715 1,271 2,130
Including Non-Controlling Interest 50 55 53 66 96
Total Liabilities and Equity 5,537 4,736 4,412 5,649 7,419
Net Debt 2,688 2,479 2,471 2,969 3,600
Source: TMK Consolidated Financial Statements for 2017, 2016, 2015 and 2014
Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums.

45
Cash Flow
(US$ mln) 2017 2016 2015 2014 2013
Profit / (Loss) before Income Tax 78 169 (443) (201) 312
Adjustments for:
Depreciation and Amortisation 263 242 251 304 326
Net Finance Cost 268 263 269 226 245
Others (260) (154) 552 479 61
Working Capital Changes (253) (13) 105 (159) (159)
Cash Generated from Operations 349 506 734 648 786
Income Tax Paid (38) (31) (51) (53) (82)
Net Cash from Operating Activities 312 476 684 595 703

Capex (236) (175) (208) (293) (397)

Acquisitions 1 (11) (2) (60) (38)
Others 0 106 25 10 12
Net Cash Used in Investing Activities (235) (81) (185) (343) (423)

Net Change in Borrowings 318 (53) (193) 154 (93)

Others (197) (365) (187) (206) (313)
Net Cash Used in Financing Activities
121 (418) (381) (53) (407)

Net Foreign Exchange Difference 17 (5) (65) (40) (5.0)

Cash and Cash Equivalents at January 1 277 305 253 93 225
Cash and Cash Equivalents at YE 491 277 305 253 93

Source: TMK Consolidated Financial Statements for 2017, 2016, 2015 and 2014
Note: Certain monetary amounts, percentages and other figures included in this presentation are subject to rounding adjustments. Totals therefore do not always add up to exact arithmetic sums
(a) Calculated as Finance costs less Finance income

46
Appendix – Capital Structure and Corporate
Governance

47
Capital Structure
Capital structure Key considerations

Free float**  TMK’s securities are listed on the London Stock

34.94%
Exchange and the Moscow Exchange

 As of December 31, 2017 35% of TMK ordinary

shares were in free float
TMK Steel
Holding Ltd, *
TMK
incl. affiliates  Total shares outstanding amount to 1,033,135,366
65.06%
subsidiaries
0.01%
 One GDR represents four ordinary shares

*The beneficiary is Dmitry Pumpyanskiy, Chairman of the Board of Directors of

TMK. Includes shares owned by TMK Steel Holding Ltd and subsidiaries of TMK

**Including Rusnano (5.3%)

Source: TMK

48
TMK Corporate Governance
DMITRY PUMPYANSKIY, Chairman of the Board of Directors, non-executive director
Key considerations Born in 1964. Graduated from the Sergey Kirov Urals Polytechnic Institute in 1986. PhD in Technical Sciences,
Doctor of Economics. Founder and beneficial majority shareholder of TMK
Relevant experience: Chairman of the Supervisory Board of Russian Agricultural Bank, Member of the Board of
 The Board of Directors is comprised of Directors at Rosagroleasing and SKB-Bank, President and Chairman of the Board of Directors of Sinara Group,
member of the Management Board of the Russian Union of Industrialists and Entrepreneurs, CEO at TMK, CEO and
11 members, including 5 independent a member of the Board of Directors of Sinara Group, Board member at various industrial and financial companies
directors, 4 non-executive directors
and 2 executive directors. MIKHAIL ALEKSEEV, Independent director, Chairman of the Nomination and Remuneration Committee.
Born in 1964. Graduated from the Moscow Finance Institute in 1986. Doctor of Economics.
Relevant experience: Chairman of the Management Board of UniCredit Bank, Chairman of the Supervisory Board
 The Board of Directors has 3 standing of LLC UniCredit Leasing, Chairman of the Board and President of “Rossiysky Promyishlenny Bank” (Rosprombank),
Senior Vice President and Deputy Chairman of the Management Board of Rosbank, Deputy Chairman of the
committees, chairman of each Management Board of ONEXIM Bank, Deputy Head of the General Directorate of the Ministry of Finance of the
committee is an independent director: USSR.

PETER O’BRIEN, Independent director, Chairman of the Audit Committee

– Audit Committee; Born in 1969. Graduated from Duke University (USA) in 1991 and obtained an MBA from Columbia University
Business School in 2000 and completed the AMP at Harvard Business School in 2011.
Relevant experience: Member of the Management Board, Vice President, Head of the Group of Financial Advisors
– Nomination and Remuneration to the President of Rosneft, Co-Head of Investment Banking, Executive Director of Morgan Stanley in Russia, Vice
Committee; President at Troika Dialog Investment Company, Press Officer at the US Treasury, Chairman of the Board of
Directors of PAO TransFin-M and member of the Board of Directors of PAO T Plus.

– Strategy Committee. ALEKSANDER SHOKHIN, Independent director, Chairman of the Strategy Committee
Born in 1951. Graduated from the Lomonosov Moscow State University in 1974. PhD, Doctor of Economics,
Professor.
 TMK’s day-to-day operations are Relevant experience: President of the Russian Union of Industrialists and Entrepreneurs, President of the Higher
School of Economics State University, member of the Board of Directors of AO Russian Small and Medium Business
managed by the CEO and the Corporation, Board member at Lukoil, Russian Railways, member of the Public Chamber of the Russian Federation,
Management Board which consists of member of the State Duma, Minister of Labour and Employment and Minister of Economic Affairs, Head of the
Russian Agency for International Cooperation and Development, twice appointed as Deputy Head of the Russian
eight members. Government, Russia’s representative to IMF and World Bank.

SERGEY KRAVCHENKO, Independent director, member of the Board of Directors

 The Company has an integrated Born in 1960. Graduated from the Moscow State University of Mechanical Engineering in 1982. Professor,
system of internal controls which Doctor of Technical Science.
Relevant experience: President of Boeing Russia and CIS since 2002, responsible for the company’s business
provides assurance as to the development in Russia and CIS. Prior to joining Boeing in 1992 was a lead member of the Russian Academy of
efficiency and management of risks of Sciences.

operations.
ROBERT MARK FORESMAN, Independent director, member of the Board of Directors
Born in 1968. Graduated from Bucknell University (USA) in 1990 and Harvard University Graduate School of Arts &
Sciences in 1993.
Relevant experience: Head of Barclays Capital in Russia, Deputy Chairman of the Management Board at
Renaissance Capital, Chairman of the Management Committee for Russia and CIS at Dresdner Kleinwort
Wasserstein, Head of Investment Banking for Russia and CIS at ING Barings, Vice Chairman at UBS Investment
Bank.

49
Appendix – TMK Products

50
Wide Range of Products
Seamless Welded Premium

Threaded pipes for the oil Threaded pipes for the oil Premium connections are
and gas industry including and gas industry including proprietary value-added
drill pipe, casing and drill pipe, casing and products used to connect
tubing. tubing. OCTG pipes and are used
in sour, deep well, off-
OCTG OCTG shore, low temperature and
other high-pressure
applications.
The short-distance The short-distance
transportation of crude oil, transportation of crude oil, Premium
oil products and natural oil products and natural Connections
gas. gas. (TMK UP)

Line Pipe Line Pipe

Oilfield Services
Construction of trunk Well equipment precision manufacturing,
Automotive, machine
pipeline systems for the tools’ rental, supervising, inventory
building, and power management, threading and coating services.
long distance
generation sectors.
transportation of natural
gas, crude oil and
Large-
Industrial petroleum products.
Diameter

Wide array of applications

and industries, including
utilities and agriculture.

Industrial
51
 TMK Premium Product Offering
TMK connections series Premium products and services
 TMK to maintain its share of premium connections
Higher resistance to torque Easy and reliable make-up
market with greater focus on sales of 2nd and 3rd
for casing while drilling and Comprises connections with generation premium connections to improve sales
rotating metal-to-metal seals and efficiency and enhance competitive advantage
A comprehensive line of positive torque stops that
semi-premium connections provide gas tightness and  TMK is actively developing HI-TECH products for
designed to outperform ensure reliability in difficult
unconventional reserves, including offshore deposits:
standard API connections well conditions

Lite Classic  OCTG: with Premium threading, Cr13,

Series Series GreenWell technology, alloy OCTG (L80,
С90, Т95, Р110) mostly with Premium
threading

 Stainless steel pipe

Pro Series Torq Series  Pipe with increased corrosion resistance

 Vacuum insulated tubing

 LDP
Ability to withstand high
tension, compression and
bending loads at excessive Extreme torsional resistance
internal and external pressure for high operational torque

Pipes with premium connections are designed for O&G wells developed in challenging exploration and production conditions,
including offshore, deep-sea and Far North locations, as well as for horizontal and directional wells

Source: TMK data

52
 Premium Solutions: TMK UP
ULTRA SF ULTRA SFII ULTRA FJ ULTRA FX ULTRA CX ULTRA QX SXC ULTRA DQX ULTRA DQXHT TMK BPN TMK-2S ULTRA GX ULTRA QX
2003 2013 2003 2003 2008 2009 2009 2011 2013 2013 2013 2016 TORQ
2016

Cal IV Cal IV Cal IV Cal II Cal IV Cal II Cal II TWCCEP

Unique range of Premium products

• Onshore/offshore • Horizontal and extended reach
• Sour gas • Drilling with casing
• Thermal • Steam-Assisted Gravity Drainage (SAGD)
• Arctic • Connections are available with GreenWell
environment friendly technology

ТМК 1 TMK FMC TMK CS TMK TTL 01 TMK GF TMK PF TMK FMT TMK PF ET TMK TDS TMK CWB TMK PF Tubing TMK UP TMK UP
2004 2005 2005 2005 2005 2007 2008 2008 2010 2011 2012 Magna Centum
2013 2014

Cal II Cal IV Cal II Cal IV Cal IV

Cal IV

53
Utilisation of TMK Pipe Products in Oil and Gas Industry

 OCTG – Oil Country Tubular Goods (drilling, casing, tubing) used for oil & gas exploration, well fixing and oil & gas
production (46% of total sales for FY 2017)

 Line pipe – used for short distance transportation of crude oil, oil products and natural gas (23% of total sales for FY 2017)
 LDP - large diameter pipe used for construction of trunk pipeline systems for long distance transportation of natural gas,
crude oil and petroleum products (7% in total sales for FY 2017)

54
Appendix – Other Materials

55
TMK’s Undisputed Market Leading Position in Russia
Seamless Welded Premium
OCTG TMK Line Pipe Premium
18% Connections
TMK Threaded pipes for O&G Short-distance
64% industry including drill transportation of O&G TMK (TMK UP)
79%
pipe, casing and tubing and oil products Premium connections are
proprietary value-added
products used to connect
OCTG pipes and are used
in sour, deep well, off-
shore, low temperature and
Line Pipe TMK Large Diameter other high-pressure
16% applications
TMK Short-distance transport Construction of trunk
60% of crude oil, oil products pipeline systems for long
#1 in the Russian Tube and Pipe
and natural gas distance transportation of
O&G and petroleum Market
products

TMK
24%
Industrial TMK
8% Industrial
TMK
36% Automotive, machine Wide array of applications
building, and power and industries, including
generation sectors utilities and agriculture

Source: TMK estimates, based on FY 2017 numbers

TMK will continue to grow its market share due to expected increased competitiveness of domestically
produced pipes vs. imported ones (due to RUB depreciation)

56
 TMK Investor Relations
40/2a, Pokrovka Street, Moscow, 105062, Russia
+7 (495) 775-7600
[email protected]